KENAI CITY COUNCIL - REGULAR MEETING MAY 16, 2018 - 6:00 PM KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A.
CALL TO ORDER
PLEDGE OF ALLEGIANCE ROLL CALL AGENDA APPROVAL CONSENT AGENDA (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B.
SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) B.1. Frank Richards, Alaska Gasline Development Corporation – LNG Project Presentation. B.2. Riley Graves, Caring for the Kenai Contestant – Magnetic Beach Sweeper Concept Overview.
C.
UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
D.
PUBLIC HEARINGS D.1. Ordinance No. 3021-2018 – Determining that Tract C Dragseth Subdivision – 2017 Addition, Located within the East ½ Section 7, Township 5 North, Range 11 West, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska is Not Needed for a Public Purpose and Approving a Sale of the Property for its Appraised Value to Ron Hyde. (Administration) Ordinance No. 3021-2018.pdf D.2. Resolution No. 2018-21 - Amending Policy 2016-01, Procedures for Commissions, Committees and Council on Aging –to Clarify the Policy on Council’s Referral of Items for the Agendas of the City’s Commissions, Committees and the Council on Aging Prior to any Final Council Action. (Council Member Molloy) Resolution No. 2018-21.pdf
E.
MINUTES
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E.1. *Regular Meeting of May 2, 2018 05-02-18 Council Minutes - DRAFT.pdf F.
UNFINISHED BUSINESS F.1. Ordinance No. 3018-2018 – Amending Kenai Municipal Code Title 23-Personnel Regulations, to Create a New Class of Employees Defined as “Department Head Service” that Includes Employees who Work at Will and are Compensated within A Salary Range Approved by the Council, and Making other Housekeeping Changes. (Council Members Navarre & Glendening) [Clerk’s Note: This Item was Postponed to this Meeting from the May 2, 2018 Meeting; A Motion to Enact is On the Floor.] Ordinance No. 3018-2018.pdf
G.
NEW BUSINESS G.1. *Action/Approval – Bills to be Ratified. Payments over $15,000.pdf G.2. *Action/Approval – Non-Objection to New Marijuana Product Manufacturing Facility License for Herban Extracts, LLC – License No. 14432. Herban Extracts - Marijuana Product Manufacturing License.pdf G.3. *Ordinance No. 3022-2018 – Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2018 and Ending June 30, 2019 And Committing $750,000 of General Fund, Fund Balance For Capital Improvements, Amending The Salary Schedule In Kenai Municipal Code Chapter 23.55 - Pay Plan, Amending Employee Classifications In Kenai Municipal Code Chapter 23.50, And Amending Police Department Qualification Pay In Kenai Municipal Code Chapter 23.55. (Administration) Ordinance No. 3022-2018.pdf G.4. *Ordinance No. 3023-2018 – Increasing FY2018 General Fund Estimated Revenues and Appropriations by $13,747 and FY2019 General Fund Estimated Revenues and Appropriations by $35,996 in the General Fund Parks, Recreation and Beautification Department for the Receipt of a Grant from the United States Environmental Protection Agency Passed through the State of Alaska Department of Environmental Conservation for Bacteria Level Monitoring on the City’s Beaches During the 2018 -2019 Personal Use Fishery. (Administration) Ordinance No. 3023-2018.pdf G.5. Action/Approval – Approve a Special Use Permit to HDL Engineering Consultants, LLC, for Storage Space at Tract A, FBO Subdivision. (Administration) HDL Engineering Consultants SUP.pdf G.6. Action/Approval – Special Use Permit to Reddi Towing & Salvage, LLC, for Impound Lot Space at Lot 4, Block 5, Cook Inlet Industrial Park. (Administration) Reddi Towing & Salvage, LLC SUP.pdf G.7. Discussion – Dipnet Vendor Operations (City Clerk) Dipnet Vendors Memo.pdf
H.
COMMISSION/COMMITTEE REPORTS
Kenai City Council Meeting May 16, 2018
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H.1. Council on Aging H.2. Airport Commission H.3. Harbor Commission 05-07-18 Harbor Summary - DRAFT.pdf H.4. Parks and Recreation Commission 05-03-18 Parks & Rec Summary - DRAFT.pdf H.5. Planning and Zoning Commission 04-25-18 P&Z Minutes - DRAFT.pdf H.6. Beautification Committee H.7. Mini-Grant Steering Committee
I.
REPORT OF THE MAYOR
J.
ADMINISTRATION REPORTS
K.
J.1.
City Manager Mid-Month Reports.pdf
J.2.
City Attorney
J.3.
City Clerk
ADDITIONAL PUBLIC COMMENT K.1. Citizens Comments (Public comment limited to five (5) minutes per speaker) K.2. Council Comments
L.
EXECUTIVE SESSION L.1.
M.
Review and Discussion of the City Attorney’s Evaluation which may be a Subject that Tends to Prejudice the Reputation and Character of the City Attorney [AS 44.62.310(C)(2)].
PENDING ITEMS
INFORMATION ITEMS Purchase Orders between $2,500 and $15,000 for Council Review Kenai City Council Meeting May 16, 2018
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PO's between $2,500 - $15,000.pdf Kenai Historical Society Newsletter – April 2018 Apr 2018 KHS Newsletter.pdf N.
ADJOURNMENT
The agenda and supporting documents are posted on the City’s website at www.kenai.city. 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 907-283-8231.
Kenai City Council Meeting May 16, 2018
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Sponsored by: Administration
CITY OF KENAI ORDINANCE NO. 3021-2018
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, DETERMINING THAT TRACT C DRAGSETH SUBDIVISION – 2017 ADDITION, LOCATED WITHIN THE EAST ½ SECTION 7, TOWNSHIP 5 NORTH, RANGE 11 WEST, SEWARD MERIDIAN, CITY OF KENAI, KENAI RECORDING DISTRICT, KENAI PENINSULA BOROUGH, ALASKA IS NOT NEEDED FOR A PUBLIC PURPOSE AND APPROVING A SALE OF THE PROPERTY FOR ITS APPRAISED VALUE TO RON HYDE. WHEREAS, in May 2017 the City Council approved the sale of Tract A, Dragseth Subdivision to Ron Hyde/ PRL Logistics Inc., with the understanding that the City would also sell the adjacent airstrip after a subdivision was completed; and, WHEREAS, a subdivision of adjacent land has been completed creating a new parcel encompassing the airstrip described as Tract C Dragseth Subdivision – 2017 Addition, Located within the East ½ Section 7, Township 5 North, Range 11 West, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska; and, WHEREAS, the property will be conveyed by a deed subject to entry and right of first refusal agreement that restricts almost all development on the new parcel, limits the allowable use, and allows the City a first right to repurchase the parcel for the purchase price adjusted annually by the Anchorage Consumer Price Index; and, WHEREAS, the parcel owned by the City is general fund property no longer needed for a public, purpose and public access along the beach is preserved through easements on the plat; and, WHEREAS, as of March 30, 2018 the parcel appraised for $56,000; and, WHEREAS, the sale is a negotiated sale pursuant to KMC 22.05.090 intended to encourage new enterprise in the City; and, WHEREAS, the sale is intended to facilitate the operation of airships inside the City utilizing new technology and enabling a new means of cargo transportation and innovative emergency management; and, WHEREAS, it is anticipated that the operation of airships will benefit the City and local economy bringing in new jobs and a new industry.
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Ordinance No. 3021-2018 Page 2 of 3
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Statement of Ownership: That the City of Kenai is the owner of Tract C Dragseth Subdivision – 2017 Addition, Located within the East ½ Section 7, Township 5 North, Range 11 West, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska. Section 2. Public Purpose and Best Interest Finding: a. That the property is not needed for future public purposes. That the sale of the property is in the best interest of the City as it is intended to limit development, protect sensitive habitat, maintain public access along the beach, and promote new economic opportunities. b. That the purpose of the sale is to encourage new enterprise, namely the operation of airships enabling a new means of cargo transportation and innovative emergency management. Section 3. Authorization of Sale: a. That the Kenai City Council hereby authorizes the City Manager to sell the City-owned land described as Tract C Dragseth Subdivision – 2017 Addition, Located within the East ½ Section 7, Township 5 North, Range 11 West, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska, including any and all improvements thereon. The Sale shall be subject to the development and use restrictions and first right of refusal provided in the attached Deed Subject to Right of Entry and Right of First Refusal Agreement. b. That the sale shall be by negotiated sale pursuant to KMC 22.05.090 –Conveyance to Encourage New Enterprise, for the March 30, 2018 appraised fair market value of $56,000. Section 4. Title: That title shall be conveyed by the attached Deed Subject to Right of Entry and Right of First Refusal Agreement. Section 5. Proceeds of Sale. That should a sale of the property be finalized, per Article 5-11 of the Kenai Municipal Charter, all revenues of the sale shall be recorded in the General Land Sale Permanent Fund. The principle balance of the General Land Sale Permanent Fund may not be spent or appropriated for any purpose, however revenues earned on the investments of the fund may be used for any lawful purpose. Section 6. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application.
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Ordinance No. 3021-2018 Page 3 of 3
Section 7. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this * day of *, 2018.
BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk
Introduced: May 2, 2018 Enacted: *, 2018 Effective: *, 2018
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DEED SUBJECT TO RIGHT OF ENTRY
The Grantor, City of Kenai, an Alaska municipal corporation, whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611 for and in consideration of the sum of Ten and no/100 Dollars ($10.00) in hand paid, does hereby grants and conveys unto Grantee, Ronald Hyde, whose address is 421 W 1st Avenue, Suite 250, Anchorage, AK 99501, in fee simple subject to the condition subsequent and covenants and restrictions set forth herein, all of that certain real property situated within the Kenai Recording District, Third Judicial District, State of Alaska, subject, more particularly described as follows, to-wit: Tract C, Dragseth Subdivision 2017 Addition, According to the Official Plat Thereof, Filed Under Plat Number 2017-60, Records of the Kenai Recording District, Third Judicial District, State of Alaska. RESERVING TO THE GRANTOR, all oil, gas and other minerals; SUBJECT TO easements, restrictions and reservations of record; and PROVIDED, that the Property shall be used, and Grantee, his heirs and assigns, by acceptance hereof and by agreement with Grantor, hereby expressly covenants to use the Property, consistent with and as provided in the attached Covenants and Restrictions on Use of Tract C, Dragseth Subdivision (the “Covenants and Restrictions”) and the Covenants and Restrictions shall run with the land and shall be binding upon the Grantee and all other persons and parties claiming through the Grantee. PROVIDED FURTHER, as a condition subsequent to this conveyance, that if the Property is used for purposes other than as set forth in the Covenants and Restrictions, then the Grantor may enter the Property and terminate the estate herein conveyed.
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DATED: This ___________ day of _______________, 2018. GRANTOR: CITY OF KENAI, Grantor
By ______________________________ As its City Manager GRANTEE:
Ronald Hyde
STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this _______ day of ________________, 2018, by Ronald Hyde. ____________________________________ NOTARY PUBLIC FOR ALASKA My Commission Expires:______ STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this _______ day of ________________, 2018, by Paul Ostrander, City Manager of the City of Kenai, an Alaska municipality, on behalf of the municipality.
NOTARY PUBLIC FOR ALASKA My Commission Expires:______
Deed Subject to Right of Entry Page 2
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COVENANTS AND RESTRICTIONS ON USE OF TRACT C, DRAGSETH SUBDIVISION The following covenants and restrictions apply to and are hereby imposed upon Tract C, Dragseth Subdivision 2017 Addition, According to the Official Plat Thereof, Filed Under Plat Number 2017-60, Records of the Kenai Recording District, Third Judicial District, State of Alaska. 1. The Property shall be used the purpose of aircraft landing, loading and departing and for no other purpose inconsistent with such use. 2. All vegetation on the Property shall be maintained in its natural state except as follows: a. The existing landing area may be maintained and graded but no additional material other than sand may be introduced onto the surface except as provided in paragraph 2.b, below, and the airstrip shall be maintained as a grass surface with Alaska native grasses. b. The area labelled “Staging Area” as shown on Attachment 1, not extending more than 400 feet immediately north of Royal Street, may be surfaced with gravel or crushed rock, with the exception that any vegetative dunes must be maintained in a natural state. c. Vegetation may be disturbed but only if and to the extent necessary to install and maintain lighting, a windsock pole, and fencing. d. A moveable building not exceeding dimensions of 12 feet by 20 feet nor greater than one story in height may be placed on the property. e. No improvements other than those provided for in this attachment may be made to the property. 3. The existing landing area as shown on the sketch attached hereto as Attachment 1 shall not be expanded except as provided in paragraph 2.b, above. 4. The Property shall not be subdivided
Kenai Recording District Return to: City of Kenai 210 Fidalgo Ave. Kenai, AK 99611
Deed Subject to Right of Entry Page 3
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RIGHT OF FIRST REFUSAL AGREEMENT This Right of First Refusal Agreement (this “Agreement”) is made on this ____ day of _______________, 2018 (the “Effective Date”), by and between Ronald Hyde his heirs and assigns, whose address is 421 W 1st Avenue, Suite 250, Anchorage, AK 99501, (the “Grantor”), and the City of Kenai, an Alaska municipality (the “Grantee”) whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611. RECITALS WHEREAS, Grantor is the owner of the following-described property: Tract C, Dragseth Subdivision 2017 Addition, According to the Official Plat Thereof, Filed Under Plat Number 2017-60, Records of the Kenai Recording District, Third Judicial District, State of Alaska (the “Property”);
WHEREAS, Grantee desires to obtain a right of first refusal to purchase the Property; and WHEREAS, Grantor agrees to grant Grantee a right of first refusal to purchase the Property. NOW, FOR AND IN CONSIDERATION of Ten and 00/100 Dollars ($10.00) and other good and valuable considerations, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Grant of Right of First Refusal. Grantor does hereby grant, bargain and convey unto Grantee, during the Term, the exclusive and irrevocable ongoing right of first refusal to purchase the Property (the “Right”) upon the following terms: (a) Notification of Sale. If, at any time during the Term, Grantor receives an offer from a bona fide third party to purchase all or any portion of the Property that is acceptable to Grantor as evidenced by a signed letter of intent memorializing all of the material business points of such offer (the “Acceptable Offer”), then Grantor shall, within five (5) days after receipt of the same, forward a copy of the Acceptable Offer to Grantee. (b) Exercise of Right. If Grantee elects to exercise the Right, Grantee shall give written notice of its exercise of the Right to Grantor within ninety (90) days of Grantee’s receipt of the Acceptable Offer, at the address set forth below. If Grantee fails to exercise the Right during such thirty (30) day-period, then Grantor shall be free to sell the Property to the bona fide third party on Right of First Refusal Agreement Page 1
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terms and conditions, including the Purchase Price, that are no more favorable to the bona fide third party than the terms and conditions stated in the Acceptable Offer. (c) Purchase Price. If the Right is exercised, the “Purchase Price” shall be an amount equal to the sum of $56,000, adjusted annually on January 1 of each year by an amount equal to the percentage change of the Consumer Price Index for All Urban Consumers for Anchorage, Alaska (“Anchorage CPI”). If the Anchorage CPI is not then being published, a similar index will be used. (d) Terms/Proration. If the Right is exercised, all costs and terms related to the sale and purchase of the Property pursuant to the Right other than the Purchase Price shall be as set forth in the Acceptable Offer, unless expressly modified herein, and shall be documented on the form of purchase agreement set forth above. 2. Title. Within fourteen (14) days after Grantee has exercised the Right, Grantor shall deliver to the Grantee a title commitment (the “Title Commitment”) covering the Property which shall reflect that marketable fee simple title to the Property is vested in Grantor and that same is insurable by a title insurance company licensed to do business in the State of Alaska at regular rates, free and clear of all liens, encumbrances, easements and restrictions, excepting only those permitted encumbrances set forth on Exhibit B hereto (the “Permitted Encumbrances”). Grantor shall deliver to Grantee, within ten (10) days after Grantee has exercised the Right, copies, to the extent owned and possessed by or under the control of Grantor, of all site plans and specifications; surveys and topographic studies of the Property; seismic or geological investigations/reports; environmental reports; title reports; engineering studies; soils or borings reports; current tax bills; lease information; and any other documents reasonably pertaining to the Property. If Grantor receives any notices pertaining to the Property during the Term, it shall deliver a copy of said notice to Grantee within five (5) days after receipt of the same. 3. Term and Extension. The term of this Agreement shall commence on the Effective Date of, and expire ninety-nine years from the date hereof. 4. Remedies upon Default. If Grantor shall default hereunder, Grantee may bring an action for specific performance and/or exercise all rights and remedies available to Grantee at law or in equity. 5. Possession. Upon any exercise of the Right, Grantee shall be entitled to the exclusive and lawful possession of the Property at closing. 6. Entire Agreement. This Agreement, including the exhibits hereto, which are incorporated herein by reference and made a part hereof, constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings and agreements, whether written, oral, express or implied, with respect to such subject matter.
Right of First Refusal Agreement Page 2
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7. Amendment. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party hereto. 8. Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent by a nationally recognized overnight courier (receipt requested); or (c) when received if mailed by certified or registered mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the addresses set forth above (or at such other address for a party as shall be specified in a notice given in accordance with this Section 8) 9. Governing Law. This Agreement (including its formation, construction, termination and the relationships between the parties hereto) shall be governed by and construed in accordance with the internal laws of the State of Alaska without giving effect to any choice or conflict of law provision or rule (whether of the State of Alaska or any other jurisdiction). 10. Choice of Forum. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated hereby shall be instituted exclusively in the United States District Court for the District of Alaska or the Trial Court for Third Judicial District of Alaska, in each case located in Kenai, Alaska and the appropriate appellate courts therefrom, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action or proceeding. Service of process, summons, notice or other document by mail to such party’s address set forth herein shall be effective service of process for any suit, action, or other proceeding brought in any such court. The parties irrevocably and unconditionally waive any objection to the laying of venue of any suit, action or any proceeding in such courts and irrevocably waive and agree not to plead or claim in any such court that any such suit, action or proceeding has been brought in an inconvenient forum. 11. Waiver of Jury Trial. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 12. Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and permitted assigns. 13. Headings. The headings in this Agreement are for reference purposes only and shall not affect the interpretation of this Agreement. 14. Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable, the parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable Right of First Refusal Agreement Page 3
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manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 15. Waiver. No waiver by any party of any of the provisions hereof shall be effective unless expressly set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. 16. Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement. IN WITNESS WHEREOF, the parties have executed this Agreement on this the _____ day of ______________, 2018. GRANTOR:
Ronald Hyde
GRANTEE: City of Kenai
By: Paul Ostrander City Manager
Right of First Refusal Agreement Page 4
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STATE OF ALASKA THIRD JUDICIAL DISTRICT
The foregoing instrument was acknowledged before me this _______ day of ________________, 2018, by Ronald Hyde.
NOTARY PUBLIC FOR ALASKA My Commission Expires:__________
STATE OF ALASKA THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this _______ day of ________________, 2018, by Paul Ostrander, City Manager of the City of Kenai, an Alaska municipality, on behalf of the municipality.
NOTARY PUBLIC FOR ALASKA My Commission Expires:__________
Right of First Refusal Agreement Page 5
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MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
FROM:
Paul Ostrander, City Manager
DATE:
April 26, 2018
SUBJECT: Ordinance 3021-2018 – Sale of Airstrip property to Ron Hyde ______________________________________________________________________ In May of 2017, the City Council approved the sale of Tract A, Dragseth Subdivision to Ron Hyde through Ordinance 2957-2017 (substitute). That sale was contingent on the ability of Mr. Hyde to purchase adjacent City owned land for the use of an existing airstrip. Ron Hyde has been operating the airstrip since May of 2017 under a Special Use Permit issued by the City Council through Resolution No 2017-20. A conditional use permit was issued by the City of Kenai Planning and Zoning Commission on the airstrip property to allow its use as an airport. The conditional use permit will remain with the property after sale. The planned use of the airstrip by airships - new technology developed and manufactured by Lockheed Martin - will provide jobs and will benefit the local economy. This ordinance authorizes the sale of the airstrip parcel, now subdivided as Tract C Dragseth Subdivision – 2017 Addition for the fair market appraised value of $56,000. Your consideration is appreciated. Attachments: Ordinance No. 2957-2017 (substitute) and associated memo Resolution No. 2017-20 and associated memo
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Sponsored by: Administration
CITY OF KENAI ORDINANCE NO. 2957-2017 (SUBSTITUTE)
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE SALE OF TRACT A, DRAGSETH SUBDIVISION 2016 ADDITION, ACCORDING TO THE OFFICIAL PLAT THEREOF, UNDER PLAT NO. 2016-22, FILED IN THE KENAI RECORDING DISTRICT, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, INCLUDING ALL IMPROVEMENTS THEREON, TO PRL LOGISTICS INC., AND PROVIDING THE SALE PROCEEDS TO THE STATE OF ALASKA FOR REIMBURSEMENT INTO GRANT NO. 15-DC078 FOR USE BY THE CITY TO CONTINUE ENHANCING ACCESS AND OTHER RELATED IMPROVEMENTS TO THE SOUTH BEACH. WHEREAS, the City manages dip net access issues on its beaches which includes conflicts between local property owners and dip net fishery participants; and, WHEREAS, in 2014 the City Council appropriated $1,900,000 of State Grant funds (Grant No. 15-DC-078) via Ordinance No. 2771-2014 for the purpose of designing and constructing a new roadway for access to the South Beach and related improvements to help alleviate such conflicts; and, WHEREAS, after numerous meetings with affected property owners and state and federal agencies weighing alternatives for improved access. including obtaining permitting for building a new road across City owned wetlands, the City with State approval, authorized the purchase of seven abutting parcels from Ark Properties, LLC for the purpose of constructing a new road with minimal wetland disturbance through Resolution No. 2015-50 (Substitute); and, WHEREAS, the City needed only a portion of the newly acquired property for the purpose of road construction; and, WHEREAS , the State's approval of the utilization of Grant funds for the purchase of the property was conditioned on proceeds from the sale of the unneeded property and improvements thereon going back into the grant for the City's use for South Beach access and related improvements; and, WHEREAS, the City completed construction of a new road providing beach access and a re-plat of the seven parcels allowing the City to maintain the land needed for the road and maximizing the value of the unneeded land and improvements for resale; and, WHEREAS, the City is expending significant funds maintaining the land and improvements for re-sale and the nature of the improvements limits the available market; and, WHEREAS, PRL Logistics. Inc., (PRL) has made an offer to purchase the property based on numerous conditions; and,
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Ordinance No. 2757-2017 Page 2 of 3 WHEREAS, PRL's business plan is to potentially use the property for office space, lodging, restaurant/bar, event hosting and airport related activities to support its business, including the operation of an airship; and, WHEREAS, all of these uses will require the approval by City Planning Commission of conditional use permits given the current zoning of the property; and , WHEREAS, PRL's offer is also conditioned on the ability to purchase adjacent City owned land for the use of an existing airstrip for fix winged and airship uses; and, WHEREAS, PRL's acquisition of the adjacent property will require a subdivision and conditional use permit; and , WHEREAS , PRL has previously refurbished and repurposed old cannery property in the City demonstrating a responsibility towards environmental sensitivity and respect for the history of the City; and, WHEREAS , it is anticipated that PRL's acquisition of additional property in the City will create new economic opportunities and will be managed in a responsible manner; and, WHEREAS, the City Council finds that it is in the best interest of the City to sell Tract A, Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 201622, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements thereon to PRL for the purchase price of $825,000; and , WHEREAS, in accepting PRL's offer, the City Council agrees to work cooperatively with PRL for the future sale of the adjacent City owned lands that include the airstrip; and ; WHEREAS, the property being sold is unique in that it is neither General Fund Land, nor Airport Land, but instead land held by the State Grant, therefore City Code provisions governing General Fund Land and Airport Land do not apply; and WHEREAS , the City Council finds that it is in the best interest of the City to sell the property for the aforementioned reasons to PRL without a recent appraisal. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, as follows: Section 1.
Form: That this is a non-code ordinance.
Section 2. Statement of Ownership: That the City of Kenai is the owner of Tract A, Dragseth Subdivision 2016 Addition, according to the official plat thereof, under Plat No. 201622, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements thereon . Section 3. Public Purpose and Best Interest Findings: That the property is not needed for future public purposes. The sale of the Property is in the best interests of the City as it is intended to promote new economic opportunities and the proceeds will be used to continue development of access to the South Beach and related improvements in compliance with Grant No. 15-DC-078.
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Ordinance No. 2757-2017 Page 3 of 3
Section 4. Authorization of Sale: That the Kenai City Council hereby authorizes the City Manager to sell the City-owned lands described as Tract A, Dragseth Subdivision 2016 Addition , according to the official plat thereof, under Plat No. 2016-22, filed in the Kenai Recording District, Third Judicial District, State of Alaska, including all improvements thereon, under the terms established in the attached Purchase and Sale Agreement and Addendum subject to the additional essential terms and conditions of sale on page 6 of the Purchase and Sale Agreement as amended by the Addendum . Section 5.
Title: That title shall be conveyed by warranty deed.
Section 6. Proceeds of Sale: That should a sale of the property be finalized, all revenues from the sale shall be provided to the State of Alaska for Grant No. 15-DC-078 for the City's use for South Beach access and related improvements. Section 7. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered , and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application . Section 8. Effective Date: That pursuant to KMC 1.1 5.070(f), this ordinance shall take effect 30 days after adoption. (Emergency ordinances and ordinance making, repealing , transferring, or otherwise changing appropriations, shall go into effect immediately upon passage unless they specify a later time: "That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption"). ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May, 2017.
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'f3RIAN GABRIEL SR., MAYOR ATTEST:
Introduced: May 3, 2017 Enacted : May 17, 2017 Effective: June 16, 2017
19 New Text Underlined; [DELETED TEXT BRACKETED]
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210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-75351 Fax: (907) 283-3014 www.kenai.city
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
FROM:
Paul Ostrander, City Manager
DATE:
May 10, 2017
SUBJECT:
Ordinance 2957-2017 (Substitute) - addendum to purchase and sale agreement modifying financing method
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This substitute ordinance recognizes and incorporates two addendums to the original purchase and sale agreement received from the buyer's agent that modify the terms and conditions of the sale . The original purchase and sale agreement anticipated owner financing with a down payment of 15% and an interest rate of 4% for 6 months or December 31, 2017, whichever was earlier, followed by a balloon payment for the remaining principal at that time to satisfy the terms of the loan. The buyer is now proposing to utilize conventional financing for the purchase of the property with closing scheduled for June 20 , 2017. Modifications to closing costs for the buyer and seller as a result of the change in financing are also outlined on the addendum and First National Bank is removed as the holder of the escrow. The two addendums are attached for your reference .
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Sponsored by: Administration
CITY OF KENAI RESOLUTION NO. 2017-20 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A SPECIAL USE PERMIT FOR PRL LOGISTICS INC., FOR THE CONTINGENT USE OF AN AIRSTRIP ON CITY OWNED PROPERTY ADJACENT TO THE SOUTH BEACH. WHEREAS, the City is in the process of selling PRL Logistics Inc., (PRL) a parcel of property as provided in Ordinance No. 2957-2017; and, WHEREAS, one condition of the sale is that PRL also be able to purchase adjacent City land that contains an airstrip for airship and fixed wing operations ; and, WHEREAS , the airstrip is on several parcels of City land and the sale of the 'airstrip' property cannot be completed until a future subdivision occurs; and , WHEREAS, the Special Use Permit authorized by this Resolution is intended to allow PRL authority to occupy the airstrip prior to the future subdivision and sale of the property; and, WHEREAS, while the Special Use Permit authorizes PRL to occupy the property for purposes of aircraft operations, the limitations of zoning on the parcels on which the airstrip sits, additionally requires the Planning and Zoning Commission to approve airport uses as a conditional use before any aircraft operations can occur; and WHEREAS , as provided in Ordinance No. 2957-2017 , the City Council finds that it is in the best interest of the City to approve this Special Use Permit as PRL's business plans will provide a unique economic benefit to the City by bringing new industry and business to the area. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the attached Special Use Permit authorizing PRL to occupy the airstrip identified in the Special Use Permit for aircraft operations is approved. The City Manager is authorized to execute the Special Use Permit, with the condition that actual aircraft uses of the property cannot actually begin until and unless add itional separate Conditional Use Permits are obtained by PRL from the City's Planning and Zoning Commission. Section 2.
That this Resolution takes effect immediately upon passage .
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of May, 2017.
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'Vtfl~ «1/tk, a Pa~t, e~ «1/tk, a f"atrq-e JI 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
FROM:
Paul Ostrander, City Manager
DATE:
May 10, 2017
SUBJECT:
Resolution 2017-20 Approving A Special Use Permit For PRL Logistics
The City of Kenai is currently considering the sale of Tract A, Dragseth Subdivision, 2016 Addition to PRL Logistics. One condition of that sale is that PRL Logistics also be able to purchase the adjacent City land that contains an airstrip. This resolution approves the issuance of a Special Use Permit (SUP) that authorizes non-exclusive use of that airstrip and surrounding area of approximately 3 acres as shown on the attached Exhibit A. Eventually, PRL Logistics intends on using the airstrip for aircraft operations, including utilization by both fixed wing aircraft and an airship. However, during the term of the SUP, only fixed wing aircraft will be using the airstrip , therefore only approximately 3 acres of the area will be utilized. While this SUP authorizes PRL Logistics to occupy this area for these purposes, separate Conditional Use Permits issued by the Planning and Zoning Commission will also be required before those activities may be conducted. If PRL Logistics is successful in obtaining this SUP as well as the necessary associated Conditional Use Permits , the intent of Administration is to begin the process of creating a saleable parcel of approximately 25.32 acres through subdivision as depicted on Exhibit A pursuant to the proposed purchase agreement for Tract A. Once the subdivision is recorded, an ordinance authorizing the sale of the new parcel would be presented to Council for their consideration. The sales price of the parcel would be fair market value as determined by a fee appraisal.
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NHN Royal St NHN Royal St Kenai, Alaska 99611 Latitude:
60.5329,
Longitude:
-151.27033
Reliant Reference Number: 18-0250
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9330 Vanguard Drive, Suite 201 Anchorage, Alaska 99507 Phone: (907) 929-2226 Fax: (907) 929-2260 Email:
[email protected] www .reliantadvisory.com
as of March 30, 2018 Prepared For:
Ronald Hyde, Jr.
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Letter of Transmittal
SfRV I CES
9330 Vanguard Drive, Suite 201 Anchorage, Alaska 99507 Phone: (907) 929-2226 Fax: (907) 929-2260 Email :
[email protected] www.reliantadvisory.com
April 23, 2018
Mr. Ronald Hyde, Jr. 1948 Brandilyn St. Anchorage, AK 99516
RE:
N HN Royal St NHN Royal St Kenai, Alaska 9961 l
Dear Mr. Hyde: At your request, an appraisal of the above referenced property has been prepared. The results of the assignment are presented in Appraisal Rep ort format. The purpose of the assignment is to estimate the current market value of the real estate subject to planned restrictions on use. The Fee Simple interest in the subject has been analyzed. The report will be used by you (the Client) and the City of Kenai for prospective acquisition/sale purposes. Although other parties may in some cases obtain a copy of this report, it should not be relied upon by anyone other than the intended users or for anything other than the intended use. This assignment has been prepared and presented in conformance with your instructions, the current Uniform Standards of Professional Appraisal Practice (USP AP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation, as well as the bylaws of the Appraisal Institute. The subject is a large acreage tract improved with a small grass airstrip. A site and neighborhood inspection has been made and photographs taken. Market infonnation and data regarding other similar real estate has been obtained. This data has been analyzed using appropriate techniques and methodologies necessary to develop a credible estimate of market value. The economy and real estate markets are changing in Alaska, with a greater amount of uncertainty than in recent history. This appraisal is valid as of the effective date, based on the market information, publications, and forecasts that are readily available to market participants as of the effective date. It is acknowledged that anecdotal evidence, including discussions with market participants, suggests a softening real estate market. That said, in many segments of the market there is limited current comparable data available that would indicate and quantify any changes in prices.
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The appraiser has relied upon the most current and relevant data available, while at the same time attempting to reflect the perspective of market participants, including owner-users, investors, buyers and sellers. The intended users of this report should be aware that the appraisal is intended to reflect the general prevailing consensus of market expectations as of the effective date and that these may ultimately tum out to be materially different than events that actually occur subsequent to the effective date. As a result of research and analysis, the value estimate for the subject is as follows : FINAL MARKET VALUE ESTIMATE - ENCUMBERED NHN Royal St Property Rights Value Perspective Effective Date of Appraisal Final Market Value Estimate
Fee Simple Current March 30, 2018 $56,000
The value estimates are based on a marketing period of approximately 12 months and an exposure period of approximately 12 months. The value opinion reported above is qualified by certain assumptions, limiting conditions, certifications and definitions, which are set forth in the body of the report. This letter is invalid as an opinion of value if detached from the report, which contains the text, exhibits and Addendum. Thank you for the opportunity to be of service. If you have any questions, please feel free to call. Respectfully submitted,
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Barbara J. Belluomini Alaska Certified General - No. 706
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Letter of Transmittal
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Certification
Certification The undersigned certifies that, to the best of her knowledge and belief: I. 2.
3. 4. 5. 6. 7.
8. 9. I 0. 11.
12. 13.
P)(l
The statements of fact contained in this report are true and correct. The reported analyses, opinions, and conclusions are limited only by the reported assumptions and limiting conditions, and are her personal, impartial and unbiased professional analyses, opinions, and conclusions. She has no present or prospective interest in the property that is the subject of this report and no personal interest with respect to the parties involved. She has no bias with respect to the property that is the subject of this report or to the parties involved with this assignment. She has not provided a previous service, as an appraiser or in any other capacity, regarding the subject within the three years prior to accepting this assignment. Engagement in this assignment was not contingent upon her developing or reporting predetermined results. Compensation for completing this assignment is not contingent upon the development or reporting of a predetermined value or direction in value that favors the cause of the client, the amount of the value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event directly related to the intended use of this appraisal. Analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the Uniform Standards of Professional Appraisal Practice. A personal walk-through of the subject property has been made by Barbara Belluomini. No one provided significant real property appraisal assistance to the person signing this certification and she is competent and qualified to perform the appraisal assignment. The reported analyses, opinions and conclusions were developed, and this report has been prepared, in conformity with the requirements of the Code of Professional Ethics and Standards of Professional Appraisal Practice of the Appraisal Institute. The use of this report is subject to the requirements of the Appraisal Institute relating to review by its duly authorized representatives. As of the date of this report, Barbara Belluomini has completed the requirements of the continuing education program for Practicing Affiliates of the Appraisal Institute and for certified appraisers in the State of Alaska.
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Barbara J. Belluomini Alaska Certified General No. 706
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Table of Contents LETTER OF TRANSMITTAL .................................................................................................................................. ! CERTIFICATION .................................................................................................................................................... 111 TABLE OF CONTENTS ........................................................................................................................................... V ASSIGNMENT OVERVIEW ................................................................................................................................ - 1IDENTITY OF PROPERTY .............................................................................................. .. ........................................ - 1 -
Name ......... ........................................................ .............. .................. ............... ................................... ...... ...... -1BriefDescription ............................................................. .................................................................. .............. - 1 Address.. .............................................................. ........ .......... ..................... .................. ............. ......... ............. - 1 Geo Coordinates .................................................................................. ...... ...... ........................................... .... - 1 Physical Location ...................................................... ...... ...... ............... .... .. .......................... ..... ........... .. ......... - 1 Assessor's Tax Parcel Number(s) ................................... ................................................................................ - 1 Abbreviated Legal Description .................... ................................................ .... ............................... ..... .. ......... - 1 SCOPE OF ASSIGNMENT ....................................................... .............. ................................................................ .. . - I Value Definition .................................. .. ......... ... .............................................................................................. - 1 Other Definitions... .............................. .......... .... ........................................................................................ ...... - 2 Purpose ............................................. ...... ............. ...................................... .......................... ........... ..... ....... .... - 2 Intended Use ..................................... ... .................................................. ................................................... ...... - 2 Intended Users .................................................... .. .................... ............. ........ .............. ...... .................. ........... - 2 Property Interest Appraised ............................ .. ................ ............................. ...................................... ........... - 2 Property Rights Appraised .................. ............................................................................................... .. ........... - 2 Report Presentation ............................................ ............ .. ............................... ............ ........................ ........... - 2 Inspection Date ....................................................... ..... ............. ............. ...................... ................................... - 2 Effective Date .......... .............................................................. ....................... .. ........ .. ................. .... .................. - 2 Report Date ............................................. ...... .... .... .. .............. ............................... .................................. ..... .... - 3 SCOPE OF WORK ............................................. ................. .. ................................. ................................................. . - 3 Overview ................... ...................... ................................................ ....................................... ......... .. .............. - 3 Limitations to Scope of Work .......... ................................ ............................................. .. .......... ..... .. ... ....... ...... - 3 Compliance ................. .. ........................................ ..................................................... .. ..................... .. ............ - 3 Assignment Presentation ............................. .... .................. .............................................................................. - 3 Special Client Instructions .......................... .. .................................................................................................. - 3 Subject Inspection ............................. .................... ........................ ................................. .... .. ........................... - 3 Information Provided to Appraiser for Consideration ............ .. .............................. ..... .. .. ............................... - 3 Market Analysis....... ...... ............................................ ........ ....... ................... .................................................... - 4 Approaches to Value ............... ............ ...................... .. .. .. ..... ..................... ...... ................................................ - 4 Valuation Process ............. .. ....................... .. ..... .............................. ..................................... ........................... - 4 OWNERSHIP AND SALES INFORMATION ........ ............. ........................................................................................ ... - 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Current Owner ofRecord............. ........................................................... ....................... .. .. .................. .. .. ..... .. - 5 Three Year Transaction History ... ................................................... ..................... .. ........ .. .. .......... ...... ............. - 5 EXTRAORDINARY ASSUMPTIONS, LIMITING CONDITIONS ..................... .. ......................................... ................. ... - 5 HYPOTHETICAL CONDITIONS ..................................................... .. .. ...... ........ ......................................................... - 6COMPETENCY OF APPRAISER ........................ ............................. .. ...... .............................................................. .. ... - 6 -
AREA DATA .......................................................................................................................................................... - 7 REGIONAL AREA DATA ........... ............................. ....................................... .......... ..................... .. ............ ............ - 7 LOCAL AREA DATA ................................ .. .... ........................................... .. ................. ... ..................................... - 10 -
Employ1nent Data ... ..... ..... ..................................................................................... .. ...... .............. ...... ........... - 10 Kenai .................................... ........ .......... ................. .. ........ ....... ........ ............................................... .............. - 11 Soldotna ............................... ....................................... ........................................................ ...................... .... - 11 -
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Kalifornsky Beach (K-Beach) Road Area ..... .... ...... ........................ ..... .................... .............. ............... .... .. - 11 Conclusion .... .. ...................... ............ .......... ..... ......... ........ ....................... ............ .. .................... ................. .. - 12 NEIGHBORHOOD D ATA ......... ......... .. .. .... .. .... ...... .. .. .... .. .. .. .. ...... .. .... ...... .. .. ................. .. ..... . .... ............ .... ..... .... ..... - 13 Name ............................................................. ..................... ............ .. ...... ....................................................... - 13 Location & Access ............................................ .................................................................. .............. .. .......... - 13 Character & Land Uses ............ .......................... ....................................... ................................. .................. - 13 Surrounding Uses ............................................ .............................................................................................. - I 3 Typical Age of Improvements ......................... ............... ......................... .. ..................... ........ .... .... ................ - 13 Land Developed ...... ...... ... ................ ... ................... ........... ......... ............................................................ ....... - 13 Life Cycle ...... ..................................... .. .... .... ...................................... ........................................................... - 13 Trends ...................... ....... ....................... ............................ .......... .... ............................................................. - 13 IMM EDIATE NEIGHBORHOOD MAP ................................ .. ................................................................................... - 14 I MMEDLATENEIGHBORHOODPHOTOGRAPHS ........................................... .......................................................... - 15 -
MARKET ANALYSIS ......................................................................................................................................... - 17 W ATERFRONT ACREAGE TRACTS .......................................... ....... ...................... ................... ...... ...... ................. - 17-
Classification ........ ............................................. .............. .. .................... ................................. ...................... - 17 Overview ofMarket Survey ....................... ...... ................. ........................................... ............ .... .. ......... ....... - 17 Market Supply .... ......... .. ............... ............ ........ .. ..................................................................... ............. ...... .. . - 17 Market Demand. ... .. ......... .. ....................... .......... ............................................................. ........ ...................... - 17 Equilibrium Status ............................ ........ .............................. .. .......................................................... ........... - 18 Near Term Market Outlook .................................................. ........................... ..................... ................... ...... - 18 IMPACT OF Low OIL PRICES.............................. .... .. .. ...... .... .... .. ...... ........ ...... ........................... .. .... ......... .. .. .... - 18 Current Conditions...... ..... ............................. .. .... .. .. ......................................... ...... .......... ............................ - 18 SUBJECT'S COMPETITIVE POSITION ...... .... .. .. .... .. .. .... ..... ......... .. .... .... .... .... .. .... ..... .... .... .. .. .. ...... ...... .. .... ......... .. .... - 19 Competitive Strengths I Downward Risk Influences .......... ..................................................... ..... ................. - 19 Competitive Weaknesses I Upward Risk Influences ...................................................................................... - 19 Impact ofMarket Conditions on Subject .............................................. ...... .................. ........... ....... .... ........... - 19 -
DESCRIPTION OF SITE .................................................................................................................................... - 21 Address ....................................... .... ........................ ...................... ................................................................. - 21 Geo Coordinates ............... ................. .......................... .................. .................................................. ............. - 21 Physical Location ... .. .......... ....... ... ..... ..... ......... ..... ................................................... ............. ...... .............. ..... - 21 Assessor 's Tax Parcel Number ............................................... ............................ ......... ................................. - 21 Abbreviated L egal Description ................................................. .................................................................... - 21 Gross Site Area ............................................................. ........................................... .. ........ ........ ................... - 2 I Shape .................................. ....................................................................... .. .................................................. - 21 Street Frontage ...... .... .... .................................. .............................. .......................................... ...... ............. .. - 21 Access......................... .. ......................... .............................. ....... ......... ........ ........................... .. ..................... - 21 Exposure ...... .... ...... .............. ............... .......... ........... .... ................ ............ ......................... ... .. .. .. ................... - 21 Adjacent Land Uses ... .......... ......................... .......... .............................. ........ ....................... .. ... .............. ...... - 21 Topography ........................ ...... ......................................... .............................. ..................... ............ ............. - 21 Water Frontage .................. ...... ..................................................................................................................... - 2 I Views ................................ ................... ........ ................................ ........ ................................... ....................... - 21 Soil Conditions .............................................. ............................ .................................................................... - 21 Wetlands ............................................ ..... ... .. ........... ....................................................................................... - 22 Hazardous Conditions ............................................................................................ ...... ................................. - 22 Flood Zone .. ........... ...... .. .. ............... .......... ....... ................................. ..... .............. ..... ..... .............. ............ ..... - 22 Utilities ..................... ..................................... ....... .......... .... ........... ..... ............... ..... ........ ........ .. .... ................. - 22 AERIAL MAP . ................................ .................................... ................................. .. ............. .. .... .... .... ......... ........... - 23 PLAT M AP ...... .............. .... .... ................................................................... .. ...... ............................. .... .... .............. - 24 -
Zoning ............................................................................................. ............ .................................................. - 25 Easements, Covenants, Encroachments & Restrictions ..................................................... ............. .. ............ - 26 Functional Utility ............. ............................. ............ ...................... ...... .............................................. .......... - 2 7 -
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PROPERTY ASSESSMENT & TAXES ............................................................................................................ -29 SUMMARY OF P ROPERTY AsSESSMENT & T AXES ........................ ......................................... ...... .. .. .... ....... ... ...... -
29 Real Property ................................................................................................................. ...... .... .................. ... - 29 PROPERTY ASSESSMENT & T AX SUMMARY EXHIB IT ............... .. .. ....................................... .............. ......... ... ...... - 29 SUBJECT PHOTOGRAPHS .............................................................................................................................. - 31 HIGHEST & BEST USE ..................................................................................................................................... - 35 D EFINITION & METHODOLOGY ...... .. .. .. .... .. .. ........................ ....... .............. .. ...... ..... ......... ........ ............. ............... - 35 -
Scop e of Highest & Best Use ............................................. .................. ... ......... ............................. ................ - 35 v ACANT ........... .... ................. .. ................................ ......... .. .. .... .. .. .. .......... .... .. .. .. .................................... - 35 Legally Permissible ............. ............................................. ........ ..... .......................................... ...................... - 35 Physically Possible .......... ........................................................ ........ ............................................................. - 35 Financially Feasible ................................................ ................ ........... ...... .................................................... - 35 Maximally Productive ................................................................................................................................... - 35 -
As- Is -
LAND VALUATION ........................................................................................................................................... - 37 37 Methodology .................................................... ......................................... ................................................ .... - 3 7 Units of Comparison .. .............. ..................................................... ...... ........ ............ ....................... ....... ........ - 37 CoMPARABLE DATA . .......... ..................................................................... .... .. .. .. .... .. ........ .. .. .. ...................... ...... . -37 Sources of Data .. ............... ......................... ................................ ............. ...... .................... ........... ......... ........ - 3 7 Availability of Data ... ........ ....... .......... ............................................. .... .. .... ...... .... .......................................... - 37 Presentation of Data ........... ............................................................ ....................................... ............... ........ - 3 7 SUMMARY OF C OMPARABLE LAND S ALES E XHIBIT ..... ................... .......... .... .... ............ .......... ........................... - 38 COMPARABLE L AND SALES MAP ...... ....... .................. ... .. ...... ............. .... ........ ........ .... ........... ........ ...................... - 39 D ESCRIPTION OF DATA .... .. .. .... ......... .................. ................... .... ...... ...... .. ....................................... .................... - 40 Sale No. L- 1 ................................................................................................................... ............ ....... ....... .... . - 40 Sale No. l-2 .............. ................. .. .................. ............................................................................................... - 40 Sale No. L-3 ........ .................... .................................... ........................................................................ .......... - 40 Sale No. L-4 .. .................................................................................................................... ............................ - 40 Sale No. L-5 .. .................................. ............. ...................................... .............. ............................................. - 40 Sale No. l -6 .................................... ............................................. .............. ................................................... - 41 Sale No. L- 7 .. ........................................ .......... ..... .................................... ..................................................... - 41 INTRO DUCTION ....................................................... .. .. ......................... ........ ........ .............. .......... .... ....... .. ... .. .. .. . -
O VERVIEW OF ADJUSTMENTS .... .. .... ...... .. ...... .... ........ ...... .. ................. .. .... .. .. ................ .... .... .... ...... .. ... .. ....... .. .. .. - 41 -
Nature ofAdjustments ................... ........ .......... ......................... .. .... ... ........ ................ .................................... - 41 Prop erty Rights Conveyed. .................. ....................................... .......... .................. .......... ............................. - 41 Financing Terms ............... ............................................................. .... .................... ............ ...... .................. ... - 42 Conditions ofSale ...... ..... ........................................................................... ............ .... ........ ...... ................. .... - 42 Market Conditions .... ... ....... ....... ...................... ................. .......................... .......... ...... ...... .. ........... ..... ....... .... - 42 Location .... .......... ..... ...... ............. .... .... .................................... ....................... .... ...... ..... ................ ....... ... .... .. - 42 Road Frontage .. .......... ............. ...... ... .. ............................... ........................................................................... - 42 Size ........... .... .......... ............... ... ..... ... ......... ............... .................... ....................................... .... ...................... - 43 Top ography .................................. ..... .............. ... ......... ..... .......................... .... ......... ........ ...... ........................ - 43 Shape ... ........... ................ ........................................... .................... .. ... ................... ........................................ - 43 Utilities ............................................. ............ ................................................................................................. - 43 Use I Zoning ......................................................... .................. .... ........................................... .. ......... ............. - 43 Wetlands/Limited Utility .... ...................................................... ..... ........................................ ...... .................. - 44 Water Frontage ........................................................................................................ ....... ............ ... ......... ...... - 44 View ................................... .................................... ....................... .......................... ....................... ............. .. - 44 Airstr ip ........................................................................................................ .................. ........................ ........ - 44ADJUSTMENT G RID EXHIB IT ............................................... ........ ........................... .............. ........ ......... ......... ..... - 4 5 D ISCUSS ION & ANALYSIS AFTER ADJ USTMENT ............................................................................................ ..... - 46 L AND V ALUE C ALCULATION- U NENCUM BERED ....... ............................... .......... ...... ......................................... - 46 -
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RESTRICTIONS ON USE............ ............................ ..................... .......................... ...... ............... .... ........................ - 46 FINAL M ARKET VALUE ESTIMATE ... ...... ............... .................. ........ .................................................................. . - 47 EXPOSURE PERJOD ............................................... .. ........ .................................... ....................... .................. ........ -47 MARKETING TIM E·························· ·········· ························································· ··············· ·························· ········ - 47 -
GENERAL ASSUMPTIONS & LIMITING CONDITIONS ........................................................................... - 49 TERMS & DEFINITIONS .................................................................................................................................. - 57 ADDENDUM: LETTER OF ENGAGEMENT ................................................................................................ - 59 ADDENDUM: DEED SUBJECT TO RIGHT OF ENTRY ............................................................................. - 61 ADDENDUM: RIGHT OF FIRST REFUSAL AGREEMENT ...................................................................... - 63 ADDENDUM: EXPERIENCE DATA ............................................................................................................... - 65 -
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Assignment Overview
Assignment Overview Identity of Propert) Name
NHN Royal St
Brief Description
The subject is a large acreage tract improved with a small grass airstrip.
Address
NHN Royal St Kenai, Alaska 9961 I
Geo Coordinates
Latitude: 60.5329, Longitude: - 151.27033
Physical Location
The subject is located at the end of Royal Street.
Assessor's Tax Parcel Number(s) 1
049-100-52
Abbreviated Legal Description
Tract C Dragseth Subdivision, 2017 Addition, according to the official plat thereof filed under Plat Number 2017-60, Records ofthe Kenai Recording District, Third Judicial District, State ofAlaska. (Per Department of Natural Resources Records)
Scope of Assignment Value Definition
The following definition of value is utilized in this report:
MARKET VALUE (OCC) 2
The most probable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, and assuming the price is not affected by undue stimulus. implicit in this definition is the consummation ofa sale as ofa specified date, and the passing oftitle from seller to the buyer under conditions whereby: a.
the buyer and seller are typically motivated;
b.
both parties are well informed or well advised, and acting in what they consider their own best interests;
c.
a reasonable time is allowed.for exposure in the open market;
d.
payment is made in terms of cash in U.S. dollars or in terms offinancial arrangements comparable thereto;
e.
and the price represents the normal consideration for the property sold unaffected by special or creative financing or sales concessions granted by anyone associated with the sale.
1
Per Tax Assessor Records. Source: Office of the Comptroller of the Currency under 12 CFR, Part 34, Subpart C-Appraisals, 34.43 Definitions [g].
2
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Assignment Overview
Other Definitions
Please refer to the Tenns & Definitions section presented in the Addendum for additional definitions of significant terminology used in this report.
Purpose
To estimate the current market value of the real estate subject to planned restrictions on use.
Intended Use
The intended use of the assignment is for prospective acquisition/sale purposes. It should not be relied upon for any other uses.
Intended Users
Ronald Hyde, Jr. (the Client) and the City of Kenai
Property Interest Appraised
This is an appraisal of the real property. Any intangible and/or personal property is specifically excluded from this valuation.
Property Rights Appraised
Fee Simple
Report Presentation
Appraisal Report
APPRAISAL REPORT
Prior to the 2014-20 I 5 edition of the Uniform Standards of Professional Appraisal Practice (USPAP), USPAP specified two primary narrative reporting formats: Summary or Self-Contained. Subsequent editions of USP AP replaced these with the Appraisal Report, a narrative format that is intended to provide minimum reporting standards. Standard 2-2(a) of current USPAP states the following: "The content of an Appraisal Report must be consistent with the intended use of the appraisal and at a minimum ... (iii) summarize information sufficient to identify the real estate involved in the appraisal, including the physical, legal, and economic property characteristics relevant to the assignment ... (vii) summarize the scope of work used to develop the appraisal ... (viii) summarize the information analyzed, the appraisal methods and techniques employed, and the reasoning that supports the analyses, opinions, and conclusions; exclusion ofthe sales comparison approach, cost approach, or income approach must be explained; Comment: An Appraisal Report must include sufficient information to indicate that the appraiser complied with the requirements ofStandard I. The amount ofdetail required will vmy with the significance of the information to the appraisal. The appraiser must provide sufficient information to enable the client and intended users to understand the rationale for the opinions and conclusions, including reconciliation ofthe data and approaches, in accordance with Standards Rule 1-6. " In essence, the Appraisal Report format is consistent with the Summary appraisal format described in the 2012-2013 and prior editions of USPAP under Standards Rule 2-2(b).
Inspection Date
March 30, 2018
Effective Date
March 30, 2018
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Assignment Overview
NHN Royal St
Report Date
April 23, 2018
Scope of Work Overview
Current USPAP requires the appraiser to develop and report a scope of work that results in credible results that are appropriate for the appraisal problem, intended users and intended use.
Limitations to Scope of USPAP permits limitations to the scope of work consistent with the appraisal problem, intended user and intended use. The scope of work has been limited by Work the General Assumptions & Limiting Conditions, Extraordinary Assumptions, Extraordinary Limiting Conditions, and Hypothetical Conditions discussed in the report and Addendum. The Scope of Work has also been limited based on the level of infonnation/documentation available to the appraiser
Compliance
The analysis and reporting of this assignment is compliant with the following: •
• •
Assignment Presentation
Uniform Standards of Professional Appraisal Practice (USP AP) as promulgated by the Appraisal Standards Board of the Appraisal Foundation. The bylaws of the Appraisal Institute. Client appraisal standards as set forth in the Jetter of engagement presented in the Addendum.
This is an Appraisal Report as defined by the Uniform Standards of Professional Appraisal Practice under Standards Rule 2-2(a). This format provides a summary of the appraisal process, subject data and valuation. The level of detail and discussion included varies with the significance of the infonnation to the appraisal, within the context of the intended use and intended users. This is a two-sided document with new sections beginning on odd numbered pages. Note, where a section ends on an odd page Microsoft Word will automatically insert a blank, even numbered page at the end of a section.
Special Client Instructions
The Client has requested that the property be appraised subject to planned restrictions on use.
Subject Inspection
A site and neighborhood inspection has been made and photographs taken.
Information Provided to Appraiser for Consideration
Primary data was obtained by the appraiser during the onsite inspection. Secondary sources of property data include client, property owner, and public records. The scope of work is specific to the information on the subject provided to the appraiser by the client and property owner. A partial list of items provided follows: • • •
Plat Map Deed Subject to Right of Entry (draft) Right of First Refusal Agreement (draft)
The following infonnation was not available to the appraiser:
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Assignment Overview
• •
• Market Analysis
Title Report Preliminary Commitment for Title Insurance Environmental study
Research on macro and micro economic conditions within the subject' s market has been conducted. Research on current market conditions within the subject's sector of the real estate market has also been conducted. The Appraisal Institute recognizes two categories of market analysis: inferred and fundamental. Inferred analyses (Level A and B) are basic methods by which future supply and demand conditions are inferred by current and general market conditions (secondary data). In fundamental analyses (Level C and D), general information is supplemented by detailed data in order to forecast supply and demand, as well as subject-specific absorption and capture (primary data). The market analysis performed in this assignment is based on inferred demand.
Approaches to Value LAND VALUATION
This approach was developed because it is necessary to develop a credible and reliable estimate of market value for this property type or it has been requested by the client.
COST APPROACH
This approach was not developed because it is not typically utilized by buyers and sellers in this market for this type and age of property.
SALES COMPARISON APPROACH
This approach was not developed because it is not typically utilized by buyers and sellers in this market for this type and age of property.
INCOME CAPITALIZATION APPROACH
This approach was not developed because it is necessary to develop a credible and reliable estimate of market value for this property type or it has been requested by the client.
Valuation Process
The valuation process may include research and analysis performed as part of a prior assignment, as well as new research performed specifically for this assignment, and included but was not limited to the following: I.
The problem or nature of assignment was identified.
2.
A scope of work was created that lead to credible results that are appropriate for the appraisal problem, intended user and intended use.
3.
lnfonnation necessary to complete the assignment was requested and obtained from the client and property owner.
4.
An area, city and neighborhood analysis has been perfonned.
5.
An analysis of the subject's physical and economic characteristics has been perfonned.
6.
Interviews have been performed with property representatives (owners, planners, assessors, brokers, developers and other individuals with useful knowledge and insight on the subject.
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Assignment Overview
7.
Knowledgeable market participants have been interviewed on the market conditions for properties similar to the subject.
8.
An examination of current zoning codes affecting the property has been performed.
9.
The functional utility of the site and/or improvements has been determined.
10. A detailed examination of the subject's economic characteristics has been made to determine the property's risk profile and economic potential. 11. A highest and best use analysis for the property was performed. 12. Extensive research to identify transactions involving similar properties was performed. 13. An analysis of the subject and available data was performed using commonly accepted valuation techniques and methodologies. 14. The quantity and quality of available data was considered, along with the applicability of the methodology used, and a reconciliation was perfonned to arrive at the final value estimate.
Ownership and Sales Information Current Owner of Record
According to Department of Natural Resources Records, the appraised interest in the subject is presently owned by City of Kenai.
Three Year Transaction History
Disclosure and analysis of the subject's transaction history (sales, agreements of sale, options, and listings) within the prior three years is required by USPAP and, if applicable, is presented below. The City of Kenai has owned the subject property in excess of the three-year reporting period. The Client purchased the adjacent property (at the south) from the City in 2017. As part of that transaction, the two parties agreed to negotiate a sale of the subject property as well . The Kenai Planning and Zoning Commission approved a conditional use permit allowing Mr. Hyde to utilize the grass airstrip onsite in the meantime. No potential purchase price was disclosed to the appraiser by either party. This appraisal report will reportedly be used in the negotiation process
Extraordinar} Assumptions, Limiting Conditions3 Extraordinary assumptions and extraordinary limiting conditions specific to this
3 These are presented in this Assignment Overview chapter because they are specific to this assignment and do not apply to all assignments. However, the applicable general assumptions and limiting conditions, which are presented in the Addenda to this report, do apply to all assignments and should not be viewed as less relevant, or carrying less weight, than those presented above simply because of their location with the report. Nor should any assumption or extraordinary assumption contained with the body of the report be viewed as less relevant or meaningful than those presented above.
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Assignment Overview
assignment follow. The value estimate presented in this report may be amended in the event that the extraordinary assumptions or limiting conditions are found to be false. The reader is advised that the use of these assumptions might have affected the assignment results. 1.
In the absence of a wetlands delineation from the Army Corps of Engineers, the appraiser considered information included on the subdivision plat map, on the USDA Natural Resource Conservation Service's online Web Soil Survey and physical clues (e.g. vegetation present, surface water, etc.) during the onsite inspection in order to estimate the quantity of wetlands onsite. Based on the information gathered, the site area impacted by low wet areas is estimated at just over 22 acres (85% of the property). This is not a precise estimate and it is recommended that a survey be conducted to determine the exact areas that are impacted. For the purposes of this appraisal, however, it is an extraordinary assumption of this assignment that the area consisting of wetlands is 22.31 acres.
2.
A Conditional Land Use Pennit was previously granted to the Client, allowing the use/operation of the grass airstrip onsite. This was necessary because an airstrip is a conditional use in the Rural Residential (RR) Zone. It is an extraordinary assumption of this assignment that the permit will continue to be renewed.
Hypothetical Conditions Hypothetical conditions specific to this assignment are as follows. The reader is advised that the use of these hypothetical conditions might have affected the assignment results. l.
At the request of the Client, the subject property has been appraised based on the hypothetical condition that its use is restricted to aircraft landing, loading and departing (see a draft of the Deed Subject to Right of Entry, which incorporates the Covenants and Restrictions on Use, included in the Addendum).
2.
The sale will also reportedly be subject to a Right of First Refusal Agreement (draft, again, included in the Addendum). Given the 99-year term and difficulty in estimating CPI adjustments over an extended period of time, any potential value impact associated with the terms of this document is excluded.
Competency of Appraiser The appraiser has previously performed similar assignments and meets the Competency Rule of USPAP. Please refer to the Experience Data presented in the Addendum for further information on the appraiser' s background and experience.
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Area Data
NHN Royal St
Area Data Regional Area Data Although elements of Alaska's economy are directly affected by certain national and international factors (e.g. interest rates, the value of the U.S. Dollar, etc.), Alaska' s economic cycles do not typically align with the rest of the nation for several reasons. First, Alaska' s location - although central to the industrialized world by air - is remote relative to the rest of the U.S. Its extreme latitude promotes intense but short seasons of work. Its prolific natural resources are valuable, but its rugged terrain makes them difficult to extract and bring to market. Lastly, its extreme climate deters rapid population growth which prevents the local population from reaching a self-sustaining level. One dramatic instance of when Alaska's economy diverged from the Nation' s was when employment in Alaska continued to increase through the Great Recession during what ended up being 21 years of job growth in the state followed by much quicker recovery than the Nation as a whole. Alaska's cycles of growth and recession have been based on the quantity and price of resources exported (precious metals, timber, seafood, coal, and - most importantly - oil) which lends to more extreme swings over longer periods of time. Today, the State's economy is more diverse than it ever has been. However, the tripod that continues to support the economy is made up of oil/gas, government spending, and other sectors (other mining/natural resources, hospitality/tourism, manufacturing/fishing, and transportation to name a few) and most of the weight is still placed on oil/gas. Alaska is still highly dependent on the production and price of oil, and while production has steadily decreased from a high in the late 1980s, the price has been volatile. Between 2013 and early 2014, oil showed stability above $95/barrel. Though the problem oflow production remained (and remains) a longer-term concern, these oil prices provided bountiful revenue to Alaska at a time when many other states were struggling with crippling budget deficits. However, due primarily to a glut of new supply from the U.S. and some decreases in global demand, prices began to slide in mid-2014. As of January 2018, Alaskan crude stands at roughly $64 per barrel. As prices have remained low, the state government has faced revenue shortfalls ofroughly $3 billion and substantial budget-tightening (or additional revenue sources) will presumably follow in the near to mid-term. The State' s substantial budget reserves from 2014 will not be able to offset revenue shortfalls much longer without budget cuts. The State also has over $50 billion within the Permanent Fund, which while not legal for lawmakers to spend without amending the State constitution (requiring a 2;3rds majority vote) - does suggest a strong balance sheet. That said, the State government had an annual average of 800 fewer full-time positions in 2017 than in 2016. This is in comparison to the average of 1,400 fewer positions in 2016 than in 2015. The pressure on the State' s budget at this time is obvious, as reflected by recent downgrading of its credit rating by Moody's (Aa3), and the other two agencies keeping their ratings (Fitch-AA+, Standard & Poor's-AA+) along with their assigning a "negative" outlook. According to an article in the Anchorage Daily News, ADN, (formerly known
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Area Data
as Alaska Dispatch News) from June 20, 2017, Standard & Poor' s (S&P) firm said in a report '"'(W)ithout structural fiscal reform in the 20 I 7 legislative session, we would likely lower the state debt ratings,". The article continues on with "adding that it expects lawmakers to enact a budget for the 2018 fiscal year in the next 90 days. If the state adopts 'a balanced budget with fiscal reforms that does not significantly rely on reserves,' the agency said it may remove the state's ratings from the credit watch without a downgrade.". Debate is ongoing about how to deal with the new fiscal realities of low oil prices - whether with spending cuts, new revenue sources (including potentially tapping the Pennanent Fund) or a combination of both. Ultimately, the full impact of lower oil prices is not yet known. 2017, proved to be a year of discovery, with Bill Annstrong and his partner, Oil Search discovering an oil field that would yield 500 million to three billion barrels of oil. One bright spot, however, was the recent discovery of two large oil reserves by Caelus and Annstrong. These finds could reportedly yield as much as 200,000 and 120,000 barrels/day in the future. Beyond oil and gas, the state economy continues to benefit from a confluence of strong production and stable prices for several other natural resources (minerals and seafood). Also buttressing the Alaskan economy is the level of federal spending in the state. For example, in FY2014, the U.S. government sent a total of $11.3 billion to Alaska and its residents 4 . This sum made Alaska the third highest recipient of per capita federal dollars for the year (behind Maryland and Virginia). The level offederal spending in Alaska, per capita, is approximately 50% above the national average. Meanwhile, job gains in the health care industry have been consistent and strong for most of the last decade. According to the Alaska Department of Labor, the health care industry added 1,800 jobs in 2017, and it is expected to add another 700 jobs in 2018. Lastly, after down years in 2009 and 20 J0, tourism leveled out and then experienced more noticeable improvement in 20 I 2 through 2016. State economists expect that the combination of a strengthening national economy and the addition of several cruise ships to the Alaskan market will continue to provide a boost for this important industry. Historic employment changes, as well as the forecast for 2018 are presented in the following chart:
4
http://www.pewtrusts.org/- /media/assets/20 16/03/federal spending in the states 20052014.pdf, accessed Jan2017
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Area Data
Tapering Job Losses for Alaska PERCENT CHANGE FROM PRIOR YEAR, 2008 TO 2018
0.2%
2015
20
~·EJ --05%
-l .1 %
-1.99' "Preliminary .. Forec;ut Source: A!DsJco Deportment a/ Labor and Worlc/orce Development, Rf'seordt and Analysis
.5ecricn
According to state economists, Alaska significantly outperformed the Nation's economy as a whole during the past decade. After the minor losses in 2009 ended 21 straight years of overall job growth, Alaska gained modest jobs through 2015. However, in 2017, employment decreased by 1.1%. While some gains were seen in the health care and local government sectors, they were relatively minor and more than offset by losses in sectors related to oil and gas as well as construction. The outlook for 2018 is a further loss of jobs - again tied to low oil prices and their fallout - but not nearly as severe as the prior years. Health care and local government are the only two sectors expected to gain jobs. In summary, the Alaskan economy is suffering from the pressure of low oil prices and state government budget issues, and this is expected to continue, with economists5 predicting approximately three more years of recession followed by a leveling off at the "new normal." While the state as a whole remains relatively healthy at this time, there is clearly nervousness stemming from future uncertainty regarding the depth and duration of the current environment.
5
Presentation to Alaska Senate Labor and Commerce Committee on January 18-19, 2017. Presenters included Mouhcine Guettabi and Ralph Townsend (University of Alaska Anchorage Institute of Social and Economic Research), and Jonathan King (Northern Economics).
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Area Data
Local Area Data Overview
The Kenai Peninsula Borough (KPB) is located in Southcentral Alaska. It covers not only the Kenai Peninsula itself, but also a large, relatively unpopulated area on the west side of Cook Inlet. According to the Department of Labor, the estimated population in 2017 was 58,024. Major economic influences include commercial fishing, oil and gas, and tourism.
Employment Data
Unemployment in the Borough is cyclical, being highest in the winter months and lowest in the summer months. For the last five years, the average annual unemployment rate for the KPB (the most specific infonnation available) has ranged between 7.9 and 8.6 percent. In 2017, the unemployment rate averaged 8.5 percent; a slight decrease from 2016 (8.6 percent). For comparison, the average monthly unemployment rate for Alaska was 7.2 percent and the United States was 4.4 percent. Looking back, the annual unemployment rate averages for the KPB in 2015 and 2014 were both 7.9 percent.
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Area Data
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Kenai
Pcnonsul~ Borough <> Alasl
Kenai
The city of Kenai is situated on the west coast of the Kenai Peninsula between the Kenai Mountains and Cook Inlet. According to the 2015 U.S. Census (American Community Survey) data, Kenai is the most populous city in the Kenai Peninsula Borough . Kenai' s population of 7,4 12 is 12 percent of the KPB and nearly one percent of the population of Alaska. The 2015 figure represented a gain of 412 over the 2010 Census. Kenai encompasses 29 .9 square miles of land and 5.6 square miles of water. It lies 59 air miles (150 highway miles) to the southwest of Anchorage. The city's major industries are oil and gas, tourism and fishing (sports, subsistence, and commercial).
Soldotna
The city of Soldotna is situated about 11 miles southeast of Kenai. As of 2015, Soldotna's population stood at 4,409, roughly 8% of the Borough' s overall population. The 2015 population figure represented a gain of 246 over the 2010 Census. Soldotna encompasses approximately seven square miles of land centered on the Kenai River, which winds its way across the Peninsula from east to west. The top five employers are: Central Peninsula Hospital, Kenai Peninsula Borough and School District, Fred Meyer retail store, Safeway store, and Kenai Peninsula College.
Kalifornsky Beach (K-Beach) Road Area
Kalifornsky Beach Road is a major arterial that extends from the Sterling Highway (Mile 96) at the southeast, in Soldotna, to its intersection with Bridge Access Road at the northwest. The Kenai city center is northwest of the Bridge Access Road intersection about three miles. Kalifornsky Beach Road provides alternate access (from the Kenai Spur Highway) between Soldotna and Kenai. In addition, from the Bridge Access Road intersection, Kalifomsky Beach Road continues an additional 16+/- miles west and then south along the Cook Inlet bluff to the southern intersection with the Sterling Highway (Mile I 09; 13 miles south of the Soldotna Central Business District). Some of the Kalifomsky Beach Road area lies within the Kenai and Soldotna city limits, but the majority lies outside of any incorporated area.
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Conclusion
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Area Data
Much like the State, the Borough economy is supported by commercial fishing, oil and gas, and tourism. The Central Kenai Peninsula also benefits from being the seat of local government and the location of Central Peninsula Hospital. The hospital has undergone substantial expansion in recent years and continues to draw practitioners and other healthcare-oriented businesses to the area.
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Area Data
Neighborhood Data Name
Kalifornsky Beach (K-Beach) Road Area - West
Location & Access
The immediate neighborhood is located south (across the Kenai River) of the Kenai Central Business District (CBD). Access from the CBD is via Bridge Access Road, Kalifornsky Beach Road, Cannery and Old Cannery Roads. Royal Street, on which the subject fronts , is north of Kalifornsky Beach Road about 1.6 miles. The neighborhood location and access/linkages are shown on the Immediate Neighborhood Map that follows. Neighborhood access is considered typical of the market.
Character & Land Uses
The neighborhood character is demonstrated by the neighborhood photos that follow. These photos were taken in close proximity to the subject and are representative of the character of the neighborhood. As with most of Alaska and the local market, neighborhood land uses are mixed.
Surrounding Uses
Surrounding uses include Hilcorp, Inlet Fish Producers, The Cannery Lodge, and PRL Logistics to the east/northeast. High-end (mostly custom) residential uses predominate to the south. Cook Inlet and its associated tidal flats border the property to the west/northwest.
Typical Age of Improvements
1980s through new construction
Land Developed
Roughly 70 - 75%
Life Cycle
Developing DEVELOPING
Trends
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This area continues to be developed with a mixture of industrial, marine-oriented and residential uses, particularly on lots with Cook Inlet or Kenai River frontage. Most of the new construction has been for single-family residential use. No major shift in prevailing land uses, real estate economics, or demographics are anticipated at this time. Given the fixed supply of land, current percentage of developed land and demand trends, neighborhood trends should be towards moderately escalating land values and prices over time.
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Area Data
Immediate Neighborhood Map
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Area Data
Immediate Neighborhood Photographs
Residence (adjacent)
Hilcorp
Vacant Lot (typical)
Residence (typical)
Inlet Fish Producers
The Cannery Lodge
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M a rket Analysis
Market Analysis \Vaterfront Acreage Tracts Classification
An extensive search was made to try to locate sales of properties subject to deed restrictions like those planned for the subject. No recent sales of any acreage tracts subject to similar restrictions were identified. At attempt was then made to locate sales of large acreage tracts with airstrips onsite. Again, no sales were identified. Two listings (one current and one expired) of properties improved with single-family residences and/or hangars, in addition to airstrips, were identified. After researching them further, they weren't considered really similar to the subject. Given the uniqueness of the subject property, then, and the difficulty in fine-tuning the market data, this market analysis considers conditions within the waterfront acreage tract market.
Overview of Market Survey
The market analysis has been compiled from a variety of sources including a survey of buyers, sellers, real estate agents, appraisers, city assessor' s and other market participants. Other sources of data include property tax records, newspaper articles and the Multiple Listing Service (MLS). The available data has been analyzed on a qualitative and quantitative basis.
Market Supply
A search of inlet/river front acreage tracts listed for sale through MLS in the greater Kenai/Soldotna/Kasilof areas identifies only two. One is an extremely irregularly shaped 52.66-acre tract located partially above and partially below a steep 75 to 80'high bluff adjacent to the Redoubt Terrace subdivision in Kenai. Zoning is Suburban Residential above the bluff and conservation below it. The bluff is subject to active erosion the actual usable area is unknown. The other listing is of a 50.48-acre tract fronting on a slough of the KasilofRiver. It is in an area that is unzoned and is improved with a small single-family residence. This relative lack of available waterfront acreage tracts is not unusual. Most of them are owned by government agencies (federal, state and/or local) or native corporations and held for either public or shareholder benefit. A search of non-waterfront acreage tracts listed for sale through MLS in the same areas turned up a total of 23 properties. Two of those are former gravel pits, both grandfathered as materials sites.
Market Demand
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A 10-Year Comparison Report of land sales, again, for those same areas (through MLS) follows:
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Mar ket Analysis
10-year Comparison Report Property Type: Land Areas 305 - Kenai,310- Kalifornsky Beach,320 - Kasilof.330 - Soldotna,335 - Ridgeway Construction Type: Existing and New Construction % List Price % Sold Price Avg. Sold Price Change Avg. DOM Year #Sold Avg. list Price Change
2008
125
$65,883
NA
556,968
NA
277
2009
53
$36.000
-45.36%
$32.321
-43 26%
213
2010
75
$57.406
59.46%
$47,177
45.96%
290
2011
84
$35.354
-38 41%
$30,020
-36 37%
283
2012
83
$73,022
106_55%
562,820
109.26%
302
2013
81
$47,718
-34.65%
$42,862
-31 77%
321
2014
124
$84,226
76.51 %
$61,783
44.14%
272
2015
117
$56.676
-32 71%
$49,799
-19 40%
336
2016
105
$58,523
3.26%
553,211
6.85%
305
2017
130
$39 792
-32 01%
$34,992
-34 24%
298
This report is, of course, only for those sales occurring through MLS. It does not consider private transactions. Further, it doesn' t differentiate between large acreage tracts versus smaller subdivision lots or lots with water frontage versus those without. One or two high-dollar sales can really skew the averages. Nonetheless, it is possible to see general trends in sales.
Equilibrium Status
Overall, the market is in equilibrium at this time with no significant imbalances in either supply or demand.
Near Term Market Outlook
No substantive changes are expected in the near term.
Impact of Low Oil Prices Current Conditions
As discussed in the Area Data chapter, the price of crude oil has dropped to roughly half of what it was just over two years ago. Although it has been holding fairly steady at $60-$70/bbl in early 2018, most experts do not expect a return to previous high price levels in the near to mid-term. This is obviously of concern in Alaska, as the vast majority of state government revenue stems from oil. However, available sale transactions in the local market have not yet demonstrated a change in prices. There is nervousness as low oil prices drag on and the State debates spending cuts (and/or revenue increases via new taxes), but the transactional data does not indicate that real estate fundamentals have been negatively impacted thus far. The number of transactions available for analysis remains low in most cases, but this is not a departure from historic patterns in this relatively small market. Generally speaking, appraisers must be careful to reflect the market based on evidence rather than dictate it based on emotion or opinion. Interviews with brokers and owners can provide meaningful insight into market expectations.
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Market Analysis
While consideration is given to expected future trends, weight is necessarily (and appropriately) placed on actual, documented market activity to date. Efforts have been made to obtain and analyze the most recent sale transactions available in the subject' s market segment. It is the appraiser's opinion the available data fairly represents current market and economic conditions.
Subject's Competitive Position Competitive Strengths I Downward Risk
Influences
• • •
• •
Large size (26.25 acres) . Topography (generally level, with easy access to the beach) . Substantial amount of water frontage . Excellent view amenity. Availability of electric and natural gas .
Note that, although there is a grass airstrip onsite, it does not appear to afford the subject any real advantage within the market segment that it competes.
Competitive Weaknesses I Upward Risk Influences
•
• •
Impact of Market Conditions on Subject
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Quantity of wetlands (estimated to encompass 85% of the site) . Huge influx of people along the waterfront during the personal use dipnet fishery in July. Planned restrictions on use.
Given the subject' s strengths and weaknesses and, in particular, the planned restrictions on use, it is expected to capture less than its proportionate market share.
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Description of Site
Description of Site Address
NHN Royal St Kenai, Alaska 99611
Geo Coordinates
Latitude: 60.5329, Longitude: -151.27033
Physical Location
The subject is located at the end of Royal Street.
Assessor,s Tax Parcel Number6
049-100-52
Abbreviated Legal Description
Tract C Dragseth Subdivision, 2017 Addition, according to the official plat thereof, filed under Plat Number 2017-60, Records ofthe Kenai Recording District, Third Judicial District, State ofAlaska. (Per Department of Natural Resources Records)
Gross Site Area
SOURCE
Square Feet:
1,143,232
Acres:
26.25
Plat Map
Shape
The site is irregularly shaped.
Street Frontage
The subject has approximately 263' of frontage on Royal Street.
Access
Access to and from the subject is considered average relative to competing properties.
Exposure
Exposure of the subject is considered average relative to competing properties.
Adjacent Land Uses NORTH
Vacant wetlands/tidelands at mouth of Kenai River
SOUTH
Single-family residential
EAST
Cook Inlet
WEST
Industrial
Topography
The subject has predominantly level topography, with a slight slope down along the waterfront.
Water Frontage
3,048 ' on Cook Inlet
Views
The subject offers excellent views of Cook Inlet and the Aleutian Range.
Soil Conditions
The USDA Natural Resources Conservation Service' s online Web Soil Survey
6 Per Tax
Assessor Records.
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NHN Royal St
Description of Site
identifies soils in the area as a mix of Clunie Peat, Soldotna Silt Loam and Typic Cryaquents. Clunie Peat consists of peat over silty clay loam formed on tidal flats. These soils are very poorly drained, with a very high runoff. Soldotna Silt Loam consists of ash-influenced loess over sandy and gravelly drift formed on outwash plains and moraines on till plains. These soils are very deep and well drained. Runoff varies from low to high. Typic Cryaquents consist of slightly decomposed plant material over silt loam and very gravelly sand formed on deltas/estuaries. Like Clunie Peat, these soils are very poorly drained, with a very high runoff. Onsite sampling would need to be done for more specific information. It is an ordinary assumption of this report that the soil conditions are typical of the neighborhood and generally similar to those found at the land sale comparables utilized in this report.
Wetlands
Wetlands are areas that are periodically or permanently inundated by surface or ground water and support vegetation adapted for life in saturated soil. Wetlands include swamps, marshes, bogs and similar areas. Federal law requires that there be no net loss of wetlands and their development requires a permit be obtained from the Army Corp of Engineers (ACOE). Note that wetlands in many areas of the State are not delineated or assessed and the ACOE would need to be consulted on the relevant pennit process. In the absence of a wetlands delineation from the ACOE, the appraiser considered information included on the subdivision plat map, on the previously discussed Web Soils Survey and physical clues (e.g. vegetation present, surface water, etc.) during the onsite inspection in order to estimate the quantity of wetlands onsite. Based on the information gathered, the site area impacted by low wet areas is estimated at just over 22 acres (85% of the property).
Hazardous Conditions
A complete environmental site assessment was not available to the appraiser. There are no known or disclosed environmental issues or hazardous conditions impacting the subject. The detection of hazardous materials or conditions is beyond the scope of expertise and competency of an appraiser, however, and it is recommended that any concerns relating to hazardous conditions be addressed by a qualified environmental specialist. Furthermore, it is an assumption of this report that there are no hazardous conditions present at the subject.
Flood Zone
The City of Kenai does not participate in the National Flood Insurance Program, nor does it administer floodplain management programs.
Utilities
Although there is a small grass airstrip onsite, the subject is essentially vacant land. Electric and natural gas are available to adjacent parcels. Public water and sewer are not available; typical of the area.
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50 Page - 22 -
NHN Royal St
Description of Site
Aerial Map
51 18-0250
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Page - 23 -
NHN Royal St
Description of Site
Plat Map
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Page - 24 -
NHN Royal St
Zoning
Description of Site
The subject has split zoning. According to the City Manager roughly 29% of the property (at the south) is zoned Heavy Industrial (IH). The remaining 71 % (at the north) is zoned Rural Residential (RR). Although not a common occurrence, split zoning is found elsewhere in the city. HEAVY INDUSTRIAL (IH), CITY OF KENAI
Intent: The IH Zone is established to allow for a broad range of industrial and commercial uses. It is intended to apply to industrial areas which are sufficiently isolated from residential and commercial areas to avoid any nuisance. Permitted Uses: Automotive sales, automotive service stations, guide service, professional offices, retail business, wholesale business, airports and related uses, automotive repair, manufacturing I fabricating I assembly storage, warehouses, charitable institutions, parks and recreation, dormitories I boarding houses I essential services, fam1ing I general agriculture, gunsmithing, printing, taxidenny, assemblies (large), parking (off street), personal services, radio I tv transmitters I cell sites. Conditional Uses: Two to seven or more family dwellings, townhouses, mobile home parks, planned unit residential development, banks, business I consumer services, hotels I motels, lodge, restaurants, theaters I commercial recreation, gas manufacturer I storage, churches, clinics, colleges, elementary schools, governmental buildings, high schools, hospitals, libraries, museums, assisted living, animal boarding, bed and breakfasts, cabin rentals, cemeteries, crematories I funeral homes, day care centers, greenhouses I tree nurseries, fraternal organizations I private clubs I social halls and union halls, nursing, convalescent or rest homes, parking (public lots), recreational vehicle parks, subsurface extraction of natural resources, and surface extraction of natural resources. Prohibited Uses: None. One family dwellings are considered a secondary use, however, and are limited to "one single-family residence per parcel, which is part of the main building."
Development Requirements: (1) Open Storage- No open shaII be located closer than twenty-five (25') to the adjoining right-of-way of any collector street or main thoroughfare. Any open storage visible from a collector street or main thoroughfare shall be enclosed in an eight-foot (8') high fence of good appearance acceptable to the Commission.
(2) Residential Buffer - Wherever an industrial zone abuts or is separated by an alley from a residential zone, the use or building in the IH Zone shall be screened by a sight-obscuring fence or hedge. RURAL RESIDENTIAL (RR), CITY OF KENAI
Intent: The RR Zone is intended to provide for low density residential development in outlying and rural areas in a form which creates a stable and attractive residential environment. The specific intent in establishing this zone is to establish residential structures to an extent which will preserve the rural, open quality of the environment and prevent health hazards in areas not served by-public water and sewer and to prohibit uses which would violate the residential character of the environment and
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53 Page - 25 -
NHN Royal St
Description of Site
generate traffic in predominantly residential areas. Permitted Uses: One-family to four-family dwellings, churches (provided that no part of any building is located nearer than 30' to any adjoining street or property line), essential services, fanning/general agriculture, parking (off street), and radio/tv transmitters/cell sites. Conditional Uses: All other uses are considered conditional uses, except gas manufacturer/storage, which is prohibited. Prohibited Uses: Gas manufacturer/storage. Basic Design Standards: Minimum Lot Size: Minimum Width: Front Setback: Side Setback: Rear Setback: Maximum Height: Maximum Site Coverage:
20,000 sq ft (one- to four- family dwellings) 90' 25' 15' 20' 35' 30%
The subject's zoning is not unduly restrictive, permits a wide variety of uses, and does not appear to materially limit the economic potential or functional utility of the property. Easements, Covenants, Encroachments & Restrictions
A title report was not available/provided to the appraiser. The subdivision plat map identifies normal easements along the property boundaries for streets and utilities. It also identifies 50' wide section line easements along the property's north and east boundaries. Section line easements are considered typical for rural acreage lots. There can be value considerations. In this case, however, the section lines easements are located in areas identified as predominantly wetlands, with diminished utility anyway. Finally, the map identifies a public access easement along the waterfront. The easement is 50' from mean high water mark. This easement insures public access along the waterfront is maintained; especially for the popular personal use dipnet fishery in July. Access easements are not uncommon in this market, especially where access to waterways is concerned. The property is being appraised based on the hypothetical condition that its use is restricted to aircraft landing, loading and departing. The Covenants and Restrictions on Use, incorporated into the draft Deed Subject to Right of Entry (copy included in the Addendum) stipulate that: ( l ) The Property shall be used (for) the purpose of aircraft landing, loading and departing and for no other purpose inconsistent with such use. (2) All vegetation on the property shall be maintained in its natural state except as follows: a.
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The existing landing area may be maintained and graded but no additional material other than sand may be introduced onto the surface except as provided in paragraph 2.b, below, and the airstrip shall be maintained as a grass surface with Alaska native
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54 Page - 26 -
NHN Royal St
Description of Site
grasses.
2.
b.
The area labelled "Staging Area" as shown on Attachment 1, not extending more than 400 feet immediately north of Royal Street, may be surfaced with gravel or crushed rock, with the exception that any vegetative dunes must be maintained in a natural state.
c.
Vegetation may be disturbed but only if and to the extent necessary to install and maintain lighting, a windsock pole, and fencing.
d.
A moveable building not exceeding dimensions of 12 feet by 20 feet nor greater than one story in height may be placed on the property.
e.
No improvements other than those provided for in this attachment may be made to the property.
The existing landing area as shown on the sketch attached hereto as Attachment 1 shall not be expanded except as provided in paragraph 2.b, above.
3. The Property shall not be subdivided. Obviously, these restrictions on use substantially limit the development potential of the property. This was done by design. The Client (potential buyer) owns PRL Logistics, Inc. The company intends to provide hybrid aircraft (airship) operations to remote locations throughout the state. Besides being a short distance from PRL's existing Cook Inlet Operations Center, the subject property offers additional benefits for potential airship use, including its generally level topography and a combination of the waterfront and grass/wetlands (no large trees or other impediments to taking off/'landing). The impact that these restrictions on use have on value are addressed in the Land Valuation section.
Functional Utility
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As previously discussed, the subject property contains a substantial amount of wetlands. There are no other known physical or economic characteristics that limit the site' s development potential and level of functional utility. The subject is generally physically and economically similar to other sites within the market segment that it competes. Overall, the site is concluded to provide average functional utility.
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-----lie HYIS(i' SHYICES
55 Page - 27 -
NHN Royal St
Property Assessment & Taxes
Property Assessment & Taxes Summary of Property Assessment & Taxes Real Property
Properties located within the subject's market are assessed by the assessor every year. By statute, each property must be assessed at 100% of market value. The millage rate (on which property taxes are based) is determined annually based on spending and assessment levels. Millage rates vary constantly and are influenced by state law and services provided in each individual district. The assessed value of all properties located within a district is divided by a particular year's budget requirements to arrive at a millage rate. Thus, actual spending determines the amount of tax, and assessment allocates the tax among property owners. Therefore, an increase or decrease in total assessment will not, by itself, result in a change in the total property tax collected. While mass appraisal is useful for the allocation of the total tax liability among property owners, it is not always a reliable indicator of the market value of a specific property. As such, market participants do not generally use assessed value to determine market value. Market participants do carefully analyze the impact of current and projected real estate taxes on cash flow and market value. While Alaska is a non-disclosure state and the assessor does not have access to sale information, they do have confirmation from the recorder's office of a sale occurring. Often times the assessment the year following a sale increases dramatically with the burden of disproving the assessment falling on the property owner. This in tum often requires disclosure of any subject sale. Because of these factors, irrespective of actual historic assessment, most market participants input real estate taxes on a stabilized basis, where projected assessment correlates with the estimated market value and is reflective of assessment in a post-sale environment. The KPB Assessing Department's online Public Info Parcel Lookup shows the preliminary 2018 tax assessed value ($207 ,900) for the subject as a Cityowned 26.25-acre parcel, not impacted by any deed restrictions. The appraiser contacted the Assessing Department and was able to obtain an estimated property assessment with the deed restrictions in place. Note that the estimate is based on the adjustment that the Assessing Department makes for properties subject to agricultural restrictions. Based on current land modeling, at the 2017 Mill Rate for Tax Authority Group 30 (Kenai), the estimated assessed value is as follows:
Property Assessment & Tax Summary Exhibit PROPERTY ASSESSMENT & TAXES Tax Parcel Number Year 049-100-52 Total
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Land
Assessment - Estimated Total Jmerovements
Mill Rate
Taxes
$8.86 $8.86
$368 $368
2018
$41,580 $4 1,580
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RELIANT
$41 ,580 $41 ,580
56 Page - 29 -
NHN Royal St
Subject Photographs
Subject Photographs
Looking west along Royal Street, with the subject property at right. Note the view of Cook Inlet and the AJeutian Range, beyond.
Grass airstrip as seen from neighboring parcel at the south.
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NHN Royal St
Subject Photographs
Looking south along the beach and 50' public access easement along the property's west boundary. The grass airstrip is on the other side of the dunes at left.
Looking north from the same spot. The Old Town area of Kenai is seen (across the Kenai River) in the distance.
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58 Page - 32 -
NHN Royal St
Subject Photographs
Looking east over the wetlands.
Looking south from the same location. The airstrip is seen at right.
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59 Page - 33 -
NHN Royal St
Subject Photographs
Close up of dunes.
Area at south end of airstrip (east side) to be developed as a staging area.
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H Vt Hl' Sfli t [f!
60 Page - 34 -
Highest & Best Use
NHN Royal St
Highest & Best Use Definition & Methodology "Highest & Best Use" is defined as: "The reasonably probable use ofproperty that results in the highest value. The four criteria that the highest and best use must meet are legal permissibility, physical possibility, financial feasibility, and maximum productivity. " 7
Scope of Highest & Best Use
A specific determination of highest and best use would require specific cost estimates, which were not available to the appraiser, and is beyond the scope of this assignment. Unless otherwise indicated, the highest and best use as vacant analysis should not be construed as a feasibility study, which is beyond the scope of the current assignment. Rather, the analysis is meant to provide a general indication of highest and best use based on a qualitative review of the available evidence. Furthennore, unless otherwise indicated, the assignment is not a feasibility study of potential conversion or renovation of the property and continued use "as is" or "as proposed" is implicit in the current value estimate.
As-ls - Vacant Legally Permissible
Private restrictions, zoning, building codes, historic district controls and environmental regulations determine those uses legally permissible on a site. As discussed, the appraisal is prepared subject to planned restrictions on use. Use will be restricted to aircraft landing, loading and departing (again, see a draft of the Deed Subject to Right of Entry, which incorporates the Covenants and Restrictions on Use, included in the Addendum for particulars).
Physically Possible
Size, shape, area, terrain, accessibility and availability of utilities affect the uses under which a property can be developed.
Financially Feasible
Feasibility is indicated by construction trends in the vicinity and current market conditions. All uses that are expected to produce a positive return are regarded as financially feasible.
Maximally Productive
When development options are available, a detennination must be made as to which feasible use is the maximally profitable use. Within this market, the presence of developer's margin is highly specific to the individual project. Nonetheless, it is noted that developers' margins have been attained within the subject's geographic area for a variety of property types. The majority of new construction, however, has been by owner users whose needs were not met by the existing inventory and there has been less speculative development. As mentioned, restrictions on use are being recorded in conjunction with the
7
Source: The Dictionary of Real Estate Appraisal, Sixth Edition. Chicago: Appraisal Institute, 2015.
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1!1 151 1' HI Vt!H
61 Page - 35 -
NHN Royal St
Highest & Best Use
planned sale. No uses other than those specified are permitted. Residential uses predominate to the south of the subject and this is the market segment that has seen the most demand in the area. A combination of the Heavy Industrial (lli) zoning at the south end of the tract and the planned restrictions on use make development with a residential use or uses impermissible. The area to the north that is zoned Rural Residential (RR) is largely wetlands. Even if development with a residential use or uses was physically possible there, the planned restrictions on use would prohibit it. If the property weren' t subject to restrictions on use, highest and best use (as vacant) might include holding it vacant and available for future sale or development. By holding the site vacant, the ownership costs would be reduced to real property taxes during the holding period, with the return based on land value appreciation. If market conditions were to warrant it, subdividing the property and/or developing it a with a combination of commercial (likely marine- or tourist-oriented) and residential uses might meet the tests of highest and best use.
After encumbrance by the restrictions on use, the owner is left with only one development option. This leaves limited utility to the owner. As a consequence, the value of the property is substantially diminished. Highest and best use, encumbered by the restrictions on use, then, would be to maintain the largely vacant tract, with the grass airstrip, as-is, as provided for in the Covenants and Restrictions on Use (incorporated into the draft Deed Subject to Right of Entry).
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I DVI S! i' S£U 1£ES
62 Page - 36 -
NHN Royal St
Land Valuation
Land Valuation Introduction Methodology
Land is customarily valued as though unimproved and available for development to the use that would justify the highest price and the greatest net return. Sales of unimproved land most similar to the subject are investigated and the most appropriate transactions are analyzed. The land value estimate traditionally reflects the fee simple value of raw land with good soils, available access, available utilities, minimal site work completed, generally level and at grade, with no site improvements (paving, landscaping, lighting, etc.).
Units of Comparison
Units of comparison, components into which properties may be divided for purposes of comparison, are derived from comparable sales data. Brokers, developers and other market participants indicated a common unit of comparison for properties in this market is the price per acre.
Note that the property is first valued as if unencumbered by the planned restrictions on use; then adjusted for them.
Comparable Data Sources of Data
The following transactions were obtained from various sources including web sites (e.g. Alaska Multiple Listing Service, Craigslist, etc.), brokers, assessors, appraisers, other individuals and the Reliant, LLC internal database.
Availability of Data
The availability of comparable data is a function of the subject' s location, property type, property size, market size and market activity. There are an adequate number of properties with similar physical and economic characteristics to the subject, but these are traded infrequently. After going back 10 - 15 years, market research identified six sales involving properties that bracket the subject and provide a good basis for comparison. An acreage tract just east of the subject that is being offered for sale to the Client is also analyzed.
Presentation of Data
A snapshot of these transactions is presented on the following summary table. A map then highlights the location of the comparables relative to the subject. Descriptions of the comparables follow the map.
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63 Page - 37 -
Sponsored by: Council Member Molloy
CITY OF KENAI RESOLUTION NO. 2018-21 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING POLICY 2016-01, PROCEDURES FOR COMMISSIONS, COMMITTEES AND COUNCIL ON AGING – TO CLARIFY THE POLICY ON COUNCIL’S REFERRAL OF ITEMS FOR THE AGENDAS OF THE CITY’S COMMISSIONS, COMMITTEES AND THE COUNCIL ON AGING PRIOR TO ANY FINAL COUNCIL ACTION. WHEREAS, Policy 2016-01, Procedures for Commissions, Committees and Council On Aging currently provides that the Council as a body may refer items to be placed on the agenda of a commission, committee or the Council On Aging; and, WHEREAS, pursuant to City code, certain items for legislative actions require a commission to consider and take action on those items prior to final Council action, such as changes to the zoning code and zoning map; and, WHEREAS, once an ordinance is introduced, the ordinance belongs to the Council as a body, and not to the ordinance’s sponsor(s); and, WHEREAS, current Policy 2016-01 is ambiguous as to whether a referral vote by Council on a motion is first required, or whether such ordinances may be referred automatically to the appropriate body upon introduction without a referral motion, through the use of the consent agenda; and, WHEREAS, it is in the best interest of the City to clarify Policy 2016-01 on Council referrals of items to commissions, committees and the Council on Aging, by providing for automatic referral to the appropriate body’s agenda upon introduction of items which a body is required to consider and take action on prior to final Council action, and to allow the Council the discretion to refer any other item. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That City Council Policy 2016-01, Procedures for Commissions, Committees, and Council on Aging, attached, is approved as amended. Section 2.
That this resolution takes effect immediately upon passage.
64 _____________________________________________________________________________________
Resolution No. 2018-21 Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this * day of *, 2018.
BRIAN GABRIEL SR., MAYOR ATTEST:
City Clerk
65
POLICY NO. 2016-01 (Amended): Procedures for Commissions, Committees and Council on Aging Purpose The purpose of this policy is to establish procedures, other than those provided in KMC 1.90, for Commissions, Committees and Council on Aging. Scope This policy applies to all advisory bodies appointed by the City Council. The Planning and Zoning Commission is also regulated by KMC 14.05. Policy 1.
2.
Appointment and Reappointments a.
An application for consideration of appointment or reappointment to a Commission, Committee or Council on Aging must be submitted to the City Clerk.
b.
The Mayor nominates an applicant for appointment or reappointment and by motion, the City Council confirms.
Establishing Subcommittees a.
3.
A subcommittee of a commission or committee may be established for a specific function upon approval of Council.
Meeting Schedules a.
Commission, Committee and Council on Aging meeting schedule is as follows:
Commission/ Committee/Council on Aging Airport Commission
Meeting Schedule
Scheduled Meeting Days
Monthly
Second Thursday of the month Second Tuesday of the month
Council on Aging
Meetings held January, April, May, September and October Monthly
Harbor Commission
Monthly
Library Commission (Suspended as of 2015, Ordinance No. 2815-2015) Parks & Recreation Commission Planning & Zoning Commission
N/A
First Monday after first council meeting of the month N/A
Monthly, except for July
First Thursday of the month
Twice monthly
Second & fourth Wednesdays
Beautification Committee
Second Thursday of the month
66
Kenai City Council Policy No. 2016-01 (Amended)
b.
All regular meetings will be held in the Kenai City Hall Council Chambers with the exception of the Council on Aging who shall meet at the Senior Center, unless offsite arrangements are approved by the Clerk. Exceptions for subcommittee meetings may be made with the advance notice of the City Clerk.
c.
Regularly scheduled meetings shall begin at 7:00 p.m. unless otherwise approved by Council via motion, with the exception of the Council on Aging, which begins at 4:30 p.m.
d.
Commissions, Committees and Council on Aging may, with the City Clerk’s approval and notification to Council and the City Manager, hold special meetings (for a specific purpose) on an as-needed basis.
e.
Commissions, Committees and Council on Aging meetings may be cancelled by the City Clerk, with notification to Council and the City Manager, if cancellation is warranted, i.e. lack of agenda items, pre-knowledge of lack of a quorum, etc.
f.
Any additional commissions or committees established will be set and incorporated into the meeting schedule by the City Council.
4. Minutes & Meeting Recordings a.
With exception of the Planning & Zoning Commission, taking notes and electronically recording meetings shall be the responsibility of department liaison to the specific meeting body. The Clerk’s Office shall take notes and record the meeting for the Planning and Zoning Commission.
b.
Summary minutes will be produced by the Clerk’s Office from the department liaisons notes and provided to the City Council as official records of the meetings.
c.
Regularly scheduled meetings shall be electronically recorded and with the exception of Planning & Zoning Commission, shall be kept for two years.
d.
Planning & Zoning Commission meeting recordings shall be kept for 6 years.
5. Work Sessions a.
Work sessions may not be held without the approval of the City Clerk unless they occur on the night of and at the time of a regularly scheduled advertised meeting. Notification of scheduled work session shall be provided to City Council and the City Manager. Work session may be requested by Council, the liaison or Chair of the body.
b.
During work sessions, only items on the work session agenda may be discussed and no formal actions may be taken.
c.
At a minimum, work sessions shall be posted on the Official City Bulletin Board in Kenai City Hall and on the city website at least five days prior to the meeting.
67 Page 2 of 4
Kenai City Council Policy No. 2016-01 (Amended)
6. Basic Meeting Information a.
All meetings shall be open to the public.
b.
At a minimum, meeting notices shall be posted on the Official City Bulletin Board in Kenai City Hall and on the city website at least five days prior to the meeting.
c.
Meeting agenda’s shall be established by the Chair and the department liaison. Items requiring Committee, Commission or Council on Aging action under applicable municipal code prior to final action by the Council, as distinguished from advisory recommendations, will be referred to the respective body prior to any final Council action, and upon introduction of an ordinance. The City Council, by motion, may refer any other item to be placed on an agenda seeking a recommendation from the respective Committee, Commission, or Council on Aging.
d.
The department liaison shall submit items for the agenda and supporting documentation to the Clerk’s Office one week prior to a meeting, no later than 2:00 p.m. The Clerk’s Office will compile meeting material and distribute. The Planning & Zoning Commission is exempt from this requirement as the Planning Department advertises, compiles meeting material and distributes for its commission.
e.
Rules of Order: Pursuant to KMC 1.15.120(b) and KMC 1.90.050(c), in all matters of parliamentary procedure, Robert's Rules of Order, as revised shall be applicable and govern all meetings, except as specified in KMC 1.15.060 (Motions), KMC 1.15.100 (Speaking), and KMC 1.15.110 (Voting).
f.
Quorum: No meeting may proceed in the absence of a quorum, i.e. a quorum is more than one-half of the board/commission (quorum of the whole).
g.
Motion: Pursuant to KMC 1.15.060(k), all motions require a second. A majority of votes is required to pass a motion.
h.
Speaking: In a meeting, members should be recognized by the Chair before speaking.
i.
When is it a Meeting: If any public business is discussed collectively by four or a majority of members of one body.
7. Council Participation a. Any Council Member may attend a meeting or work session of any Commission, Committee or the Council on Aging. Only the Council Liaison to the respective, Commission, Committee or Council on Aging may speak on behalf of the Council. Participation by Council Members at Commission, Committee or Council on Aging meetings should be limited to introduction of legislation by one Council Legislative Sponsor. Participation by any other Council Members, written or oral, is discouraged. b. Exception: Council Members may fully participate in any joint work session or other meeting with a Commission, Committee, or the Council on Aging when it has been noticed that the City Council will be in attendance, or there has been a specific delegation of authority by the Council for a member(s) to represent the Council. Page 3 of 4
68
Kenai City Council Policy No. 2016-01 (Amended)
Effective Date:
Approved by Resolution No. 2016-03 Amended by Resolution No. 2017-24 Amended by Resolution No. 2018-XX
BRIAN GABRIEL SR., MAYOR ATTEST:
Jamie Heinz, City Clerk
69 Page 4 of 4
"Vt1/a!Je with a Past, City with aFuture" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 www.kenai.city
MEMORANDUM TO: FROM: DATE:
Mayor Gabriel, Council Members, Student Representative, Administration Council Member Molloy ~ May 7, 2018
SUBJECT: Resolution No. 2018-21, Amending Policy 2016-01, To Clarify the Policy on Council's Referral of Items for the Agendas of the City's Commissions, Committees, And/Or Council on Aging Prior to Any Final Council Action The purpose of Resolution No. 2018-21 is to clarify ambiguity in the current policy for Council referrals to agendas of advisory bodies under the amendment adopted in 201 7. The amendment to Section 6. Basic Meeting Information, paragraph (c), added the following sentence: The City Council, by motion, may refer an item to be placed on an agenda seeking a recommendation from the respective Committee, Commission, or Council on Aging .
However, pursuant to City code, certain items for legislative actions require a commission to consider and take action on those items prior to final Council action, such as changes to the zoning code and zoning map (Planning & Zoning Commission). Not only does KMC 14.20.270 require the Planning and Zoning Commission to hold a public hearing on map changes, but also the City Attorney has said that the Alaska Supreme Court has previously invalidated changes made by a Council without Planning and Zoning Commission input. 1 Previous business practice has been that, upon introduction, items for legislative actions that require a commission to take action before final Council action were automatically referred by Administration to the agenda of the appropriate body. But once an ordinance is introduced, the ordinance belongs to the Council as a body, and not to the ordinance's sponsor(s), and not to Administration. The current policy is ambiguous as to whether or not a Council vote on a referral motion is now first required, so it is ambiguous whether Administration can now automatically refer an ordinance to the appropriate body upon introduction by Council on consent agenda without a Council vote to refer. 1
Griswold v. City of Homer, 186 P.3d 588 (Alaska 2008).
70
2
The proposed clarification is: Items requi ring Committee. Commission or Council on Aging action under applicable mun icipal code prior to fina l action by the Council , as distinguished from advisory recommendations. will be referred to the respective body prior to any final Council action. and upon introduction of an ordinance. The City Council, by motion, may refer any other item to be placed on an agenda seeking a recommendation from the respective Committee, Commission, or Council on Aging .
The proposed amendments to Policy 2016-0 1 continue to leave to the Council' s discretion as a body whether to refer any other matters (involving only advisory recommendations) to the commissions, committees and Council on Aging. A list of duties of the City' s commission, committees and the Council on Aging, competed by the City Attorney' s office, is attached for your reference. Council' s support of th is reso lution and the proposed amended policy is respectfully requested.
71
Resolution 2018-21 Attachment 2 TO:
Mayor Brian Gabriel, Council Members, Student Representative, Administration
FROM:
Bob Molloy, Council Member
DATE:
May 7, 2018
SUBJECT: Resolution No. 2018-21, Amending Policy 2016-01 ______________________________________________________________________ See below city code citations describing the powers and duties for the various committees, commissions and Council on Aging for your review.
List of Board, Commission and Committee Duties General Duties for All Boards, Commissions, and Committees: KMC 1.90.020 (a) Act in an advisory capacity to Council (b) If income stated within City budget, work with City Manager to establish expenses projected for the year.
Landscaping/ Site Plan Review Board: KMC 11.05.040 Landscaping/ Site Plan Review Board makes decisions on applications for construction or operation of terminal or transportation uses within City harbor or on lands contiguous to harbor. Landscaping/ Site Plan Review Board’s decision are binding “unless appealed by Council.”
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Page 2 of 7 Resolution No. 2018-21
Harbor Commission: KMC 11.05.040 Harbor Commission reviews plans for construction of terminal or transportation facilities on lands in or contiguous to harbor to determine, along with Landscaping/ Site Plan Review Board, whether type or location of proposed construction is in “conflict with general City plan” and if so, “whether such proposed construction is in keeping with the objective of the general plan.” KMC 11.10.10 1. Develop, adopt, alter and revise master plan for harbor development subject to approval by city Council. 2. Submit annually to City Manager and Council a recommended three year capital improvement plan. 3. Make investigation regarding any matter related to City harbor facilities, tidelands or submerged lands. Make recommendations to Council relative to care, control and development of tide and submerged lands. 4. “Review all City leases of City-owned tide, submerged and lands or navigable waters within the City” and make recommendations to Council regarding proposed improvements. 5. Make and prepare reports and plans for approval by the City Council. 6. Coordinate public efforts to effectuate approved plans. 7. Advise Council on selection of Harbor Director. KMC 11.15.090 Review applications for rights to tidelines and submerged lands conveyed to City by State in 1977. KMC 11.15.100 Review plats regarding lands conveyed to City by State in 1977, and designate an engineer to review the plats and provide tentative approval or disapproval. KMC 11.15.130 Approve final plats for lands conveyed to City by State in 1977 KMC 11.15.200 Approve applications for leases/ claims for lands conveyed to City by State in 1977 and hold public hearings on the same. KMC 11.15.230 Sit as quasi-judicial body to hear disputes over claims to lands conveyed to City by State in 1977. KMC 11.20.040 Along with Planning Commission classify for leasing all tidelands.
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Page 3 of 7 Resolution No. 2018-21 KMC 11.20.070 Review all lease applications for tidelands and make recommendation to Council on leases. KMC 11.20.620 Require certain insurance for lessee’s regarding harbor related activities. KMC 11.20.720 Review use rates charged by lessee’s.
Planning and Zoning Commission: KMC 11.20.040 Along with Harbor Commission classify for leasing all tidelands. KMC 11.20.070 Review all applications for tideland lease along with Harbor Commission. KMC 11.20.140 Review changes use changes, and renewals of tidelands and make recommendation to Council. KMC 11.20.770 Review disposition of City owned tidelands and make recommendations to Council. KMC 14.05.010 1. Review and act upon requests for variance permits, conditional use permits, planned unit residential development permits, and other matters requiring consideration under the Kenai Zoning Code. 2. Interpret the provisions of the Kenai Zoning Code and make determinations when requested by the Administrative Official. 3. Review the City of Kenai Comprehensive Plan on an annual basis and conduct a minimum of one public hearing. Said recommendations shall be forwarded to the Council for consideration. 4. Promote public interest and understanding of comprehensive planning, platting, zoning, land management, and other issues relating to community planning and development. 5. Proposed plans for the rehabilitation or redevelopment of any area or district within the City. 6. Perform historic preservation reviews and duties as set forth in KMC 14.20.105. Advise Council on: 1. Kenai Zoning Code and Official City of Kenai Zoning Map amendments.
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Page 4 of 7 Resolution No. 2018-21 2. City and airport land lease or sale petitions. 3. Capital Improvements Programming. The Commission shall submit annually to the Council a list of recommended capital improvements which, in the opinion of the Commission, are necessary and desirable to be constructed during the forthcoming three (3) year period. Such list shall be arranged in order of preference, with recommendations as to which projects shall be constructed in which year. Act in an advisory capacity to the Kenai Peninsula Borough Planning Commission regarding the following matters: Subdivision plat proposals. 1. Right-of-way and easement vacation petitions. 2. City of Kenai Comprehensive Plan amendments. KMC 14.10.010 Review preliminary plats. Appeal of Planning Commission decision can be made to Council pursuant to 14.10.060. KMC 14.10.070 and .080 Review subdivisions and make exceptions and require conditions for approval. KMC 14.10.090 Recommend variations and exceptions to council on subdivision lot size/shape requirements. KMC 14.10.110 Council cannot change or amend Chapter 14.10 until study, report and recommendation by Commission. KMC 14.15.110 and .140 Make recommendations to Council regarding street names. KMC 14.20.050 Make decisions regarding non-conforming lots, structures and uses. KMC 14.20.105, .110 and .130 Allow variance s within TSH, CC and IL zoning districts. Review and Make recommendations on historic buildings. KMC 14.20.150 Determine conditional use permits. KMC 14.20.154 Issue Surface extraction of natural resource permits.
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Page 5 of 7 Resolution No. 2018-21 KMC 14.20.160, .161. and 170 Condition development of townhouses, zero lot line development and planned unit residential development. KMC 14.20.180, .185 and 230 Issue variance permits, encroachment permits and home occupation permits. KMC 14.20.270 Hold public hearings and make recommendations to Council on Zoning Code and Map amendments. KMC Chapter 21.10 Make recommendations to Council regarding leasing of airport reserve lands. KMC 21.15.060 Make recommendations to Council on disposition of airport lands prior to Council action. KMC 21.15.070 Make recommendations to Council on lease of airport lands. KMC 22.05.040 Make recommendations to Council on disposition of general fund lands prior to Council action. KMC 21.15.045 Make recommendations to Council on lease of general fund lands.
Parks and Recreation Commission: KMC 19.05.020 (a) Develop, adopt, alter, or revise subject to approval by the City Council, a master plan for the physical development of recreation facilities for the City. Such master plan with accompanying maps, plats, charts, descriptive, and explanatory matter, shall show the Commission’s recommendations for the development of the City’s recreation facility may include, among other things: (1) Development of the type, location, and sequence of all public recreation facilities; and (2) The relocation, removal, extension, or change of use of existing recreation facilities. (b) Submit annually to the City Manager and Council, not less than ninety (90) days prior to the beginning of the budget year, a list of recommended capital improvements, which in the opinion of the Commission, are necessary or desirable to be constructed during the
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Page 6 of 7 Resolution No. 2018-21 forthcoming three (3) year period. Such list shall be arranged in order of preference, with recommendations as to which projects shall be constructed in which year. (c)
Make investigations regarding any matter related to City recreation.
(d)
Make and prepare reports and plans for approval by the City Council.
(e)
Shall act in advisory capacity in the selection of a Director of Parks and Recreation.
KMC 24.15.010 Assist City Clerk and Parks and Recreation Director in establishment of cemetery regulations subject to approval by Council.
Airport Commission: KMC 21.20.010 (a) Develop, adopt, alter or revise, subject to approval by the City Council, a master plan for the airport development. This may include: (1)
Development of type, location and sequence of all airport terminal facilities;
(2)
Development and use of all airport aeronautical lands.
(b) Observe, oversee and guide in an advisory capacity, any matters relating to use of airport runways, airport terminal, and airport aeronautical lands. (c)
Act in an advisory capacity to the Council and the Airport Manager.
(d)
Make recommendations to the City Manager on the airport budget.
Beautification Committee: Beautification Committee is a subcommittee of the Parks and Recreation Commission specifically assigned the task of landscaping and gardening throughout the heart of the City. The committee meets to determine the course of action for the season; jobs are assigned and work is completed throughout the summer. Usually a tour of the gardens happens at the end of the summer.
Council on Aging: The Mission of the Council on Aging is to advise the Mayor, City Council, Director, and the City of Kenai of the needs of the elderly in the area, support the programs which enable the continued independence of senior citizens and serve as an advisory committee. Duties include advising the Director of Senior Citizen Programs on matters dealing with the budgets for senior programs and programs operated at the Senior Center.
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Page 7 of 7 Resolution No. 2018-21 Mini-Grant Steering Committee: The Mini-Grant Steering Committee was created by former Mayor Porter as a way for residents to help fund projects that would have a positive long lasting effect on their neighborhoods, improving the quality of life for all residents. Applications are received and reviewed by the committee throughout the year; grants of up to $500 are awarded.
Precinct Board: KMC 6.05.040 Administer elections in precinct.
Personnel Board: KMC 23.25.030 Hear personnel grievances.
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KENAI CITY COUNCIL – REGULAR MEETING MAY 2, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR BRIAN GABRIEL, PRESIDING MINUTES
A.
CALL TO ORDER
A Regular Meeting of the Kenai City Council was held on May 2, 2018, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Henry Knackstedt Jim Glendening Glenese Pettey (absent)
Robert Molloy Tim Navarre Mike Boyle
A quorum was present. Also in attendance were: Paul Ostrander, City Manager Scott Bloom, City Attorney Jamie Heinz, City Clerk 3. Agenda Approval Mayor Gabriel noted the following modifications to the packet: Add to Item G.7.
Wake Zone Signage Discussion • Sign Layout • Cost Estimates • Proposed Sign Placement Map
MOTION: Council Member Molloy MOVED to approve the agenda with the requested revisions to the packet and requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE:
There being no objections, SO ORDERED.
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4. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, the public hearing 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
Kenai Peninsula Borough Assembly Member Brent Hibbert provided an update on the May 1 Borough Assembly Meeting noting school budget and the upcoming budget process were topics of discussion. Ryan Tunseth thanked Council for its non-objection to the issuance of his Marijuana Retail Store license; will be before Marijuana Control Board on May 7. He also spoke in favor of the Recreation Center noting it was an important part of the community and encouraged doing whatever needed to be done to preserve it or create the next recreation center in Kenai. D.
PUBLIC HEARINGS 1. Ordinance No. 3015-2018 - Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant From the United States Department of Agriculture Forest Service Passed Through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment.
MOTION: Council Member Molloy MOVED to enact Ordinance 3015-2018 and Council Member Knackstedt SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that there were no significant strings attached to accepting the grant. VOTE:
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YEA: NAY:
Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
MOTION PASSED UNANIMOUSLY. 2. Ordinance No. 3016-2018 – Increasing Estimated Revenues and Appropriations by $4,434.88 in the General Fund – Police Department for State Traffic Grant Overtime Expenditures. MOTION: Council Member Knackstedt MOVED to enact Ordinance 3016-2018 and Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: YEA: NAY:
Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
MOTION PASSED UNANIMOUSLY. 3. Ordinance No. 3017-2018 – Accepting Drug Seizure Funds Forfeited to the City in the Amount of $4,709.63 and Appropriating the Funds for the Purchase of Police Department Small Tools. MOTION: Council Member Molloy MOVED to enact Ordinance 3017-2018 and Council Member Knackstedt SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: YEA: NAY:
Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
MOTION PASSED UNANIMOUSLY. 4. Ordinance No. 3018-2018 – Amending Kenai Municipal Code Title 23-Personnel Regulations, to Create a New Class of Employees Defined as “Department Head Service” that Includes Employees who Work at Will and are Compensated within A Salary Range Approved by the Council, and Making other Housekeeping Changes. MOTION: City of Kenai Council Meeting May 2, 2018
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Vice Mayor Navarre MOVED to enact Ordinance 3018-2018 and Council Member Glendening SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that the biggest change was the employees in this service would be atwill and a salary range matrix was provided which would give the City Manager some needed tools and flexibility. It was suggested the City would save money and opportunities for employees would be enhanced. Concern was expressed for the lack of protection of due process. There was discussion regarding the attorney review in section 23.10.035 (b) being to ensure a dismissal was not for an illegal reason; at-will employment being reasonable for the manager of a department; at-will employment being typical in public sector; a majority of municipalities the size of the City of Kenai or larger in Alaska had at-will department heads. It was suggested there be a next step if the manager and attorney didn’t agree in section 23.10.035 (b). Clarification was provided that, even currently, the attorney doesn’t have the ability to prohibit the firing of someone even if for cause. It was noted there was implied pressure from the Council in their being cognizant of how the manager was managing; confidence in the manager to manage staff and this ordinance. It was further noted the manager is held to high professional standards and he should expect the same from his staff. MOTION: Council Member Molloy MOVED to postpone to the May 16 meeting and Council Member Boyle SECONDED the motion. It was suggested that any members wanting to bring forth amendments to what was proposed in section 23.10.035 (b) should work with the attorney. VOTE: YEA: NAY:
Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
MOTION PASSED UNANIMOUSLY. 5. Ordinance No. 3019-2018 – Increasing Estimated Revenues and Appropriation in the General and Municipal Roadway Improvements Capital Project Funds and Awarding a Contract to Complete The Ryan’s Creek Outfall Repair Project to Foster Construction, Inc. MOTION: Council Member Knackstedt MOVED to enact Ordinance 3019-2018 and Council Member Glendening SECONDED the motion. City of Kenai Council Meeting May 2, 2018
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Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that the bid amount had been discussed with the bidder and administration was comfortable that the bidder was capable of doing the project; it was felt the project could be accomplished with minimal change orders. VOTE: YEA: NAY:
Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
MOTION PASSED UNANIMOUSLY. 6. Ordinance No. 3020-2018 – Increasing Estimated Revenues and Appropriations in the Water & Sewer Special Revenue and Water & Sewer Improvements Capital Project Funds and Authorizing a Change Order to the Contract with the State of Alaska Department of Transportation for the Project Entitled “Spur Highway Water Main Replacement – Spur Highway and Shotgun Drive” MOTION: Vice Mayor Navarre MOVED to enact Ordinance 3020-2018 and Council Member Knackstedt SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. The process used to solicit the project was discussed. VOTE: YEA: NAY:
Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
MOTION PASSED UNANIMOUSLY. 7. Resolution No. 2018-18 – Awarding a Contract for External Audit Services to BDO USA, LLP. MOTION: Vice Mayor Navarre MOVED to adopt Resolution No. 2018-18 and Council Member Boyle SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. An overview of the scoring matrix and the difference in the Request for Proposal process versus the Invitation to Bid process was provided. It was pointed out that the City was looking for the best value, not necessarily the cheapest option and also that local preference was not provided City of Kenai Council Meeting May 2, 2018
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for in code for the Requests for Proposal process, only the Invitation to Bid process. Clarification was provided that the team that ranked the proposals for audit services were all staff members. Additional clarification was provided that the auditors annually review and express their opinion on the City’s procurement practices and internal controls to ensure they fell in with generally accepted financial practice. It was noted that financial practices in Kenai Municipal Code were also reviewed annually for compliance with federal and state laws. It was pointed out that the proposals were submitted based on the three-year term that was advertised and a contract was negotiated as provided for by code; it was unknown whether either of the proposers would sign a one-year contract for the price they proposed for a three-year contract. Clarification was provided that the scoring matrix was provided to the proposers in the advertised request for proposal and that the scoring sheets would become public information after the contract award. Timing of the proposal and the City’s options in three years was discussed. MOTION TO AMEND: Vice Mayor Navarre MOVED to amend section 1 of the resolved statement to read, “That the City Manager is authorized to execute a contract for the City’s external audit services to the highest ranking proposer, BDO USA, LLP for a period of one-year,” and Council Member Glendening SECONDED the motion. It was pointed out that staff followed the provisions in code which provided a process with integrity asking proposers to submit a proposal in good faith; credibility needed to be maintained. Suggestion was made to award the contract and review the process in the meantime and consider a future code amendment to allow for local preference when soliciting professional services. VOTE ON THE AMENDMENT: YEA: NAY:
Navarre, Glendening Gabriel, Boyle, Knackstedt, Molloy
MOTION FAILED. It was pointed out that the City’s previous contract was with the local firm, Mikunda-Cottrell, which was bought out by BDO USA, LLP during the life of the contract. The small number of auditing firms in Alaska that did municipal audits and the possibility that difficulty in competing with a worldwide company discouraged a larger field of firms from submitting proposals was discussed. MOTION TO AMEND: Vice Mayor Navarre MOVED to amend section 1 of the resolved statement to read, “That the City Manager is authorized to execute a contract for the City’s external audit services to the highest City of Kenai Council Meeting May 2, 2018
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ranking proposer, BDO USA, LLP for a period of three-years,” and Council Member Glendening SECONDED the motion. VOTE ON THE AMENDMENT: YEA: NAY:
Navarre, Glendening, Gabriel, Molloy Boyle, Knackstedt
MOTION PASSED. VOTE ON THE MAIN MOTION AS AMENDED: YEA: NAY:
Molloy, Boyle, Gabriel, Navarre, Glendening, Knackstedt
MOTION PASSED UNANIMOUSLY. 8. Resolution No. 2018-19 – Amending Policy No. 2016-01, Procedures for Commissions, Committees and Council on Aging – to Provide for Recording Planning and Zoning Commission Work Sessions and Joint Work Sessions between Commissions, Committees, and/or Council on Aging. MOTION: Council Member Molloy MOVED to adopt Resolution No. 2018-19 and Council Member Boyle SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that only the work sessions of Planning & Zoning meetings and joint commission work sessions were what was being added to the recording requirements. It was suggested that work sessions are informal discussions and no voting takes place; there was a perception that people, even the public, felt more apt to discuss issues when not being recorded. Concern was expressed for things being taken out of context. VOTE: YEA: NAY:
Molloy, Boyle, Gabriel Navarre, Glendening, Knackstedt
MOTION FAILED. 9. Resolution No. 2018-20 – Consenting to an Amendment Extending the Timeframe for Legacy Electric, LLC, Lessee, to Complete Improvements as set Forth in the Original Lease of Airport Reserve Lands. MOTION:
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Council Member Molloy MOVED to adopt Resolution No. 2018-20 and Council Member Glendening SECONDED the motion. UNANIMOUS CONSENT was requested. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: E.
There being no objection; SO ORDERED MINUTES 1.*Regular Meeting of April 18, 2018
Approved by the consent agenda. F.
UNFINISHED BUSINESS – None.
G.
NEW BUSINESS 1. *Action/Approval – Bills to be Ratified.
Approved by the consent agenda. 2. *Action/Approval – Purchase Orders Exceeding $15,000. Approved by the consent agenda. 3. *Action/Approval – Non-Objection to New Commercial Retail Marijuana Store for: • Cook Inlet Cannabis Company D/B/A East Rip – License No. 13382 Approved by the consent agenda. 4. *Ordinance No. 3021-2018 – Determining that Tract C Dragseth Subdivision – 2017 Addition, Located within the East ½ Section 7, Township 5 North, Range 11 West, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska is Not Needed for a Public Purpose and Approving a Sale of the Property for its Appraised Value to Ron Hyde. (Administration) Introduced by the consent agenda and public hearing set for May 16, 2018. 5. Action/Approval – Authorize the Creation of a Sub-Committee of the Harbor Commission for the Purpose of Determining the Roles and Responsibilities of the Commission. MOTION: Council Member Molloy MOVED to authorize the creation of a sub-committee of the harbor commission for the purpose of determining the roles and responsibilities of the commission. Council Member Boyle SECONDED the motion. UNANIMOUS CONSENT was requested. It was noted that the subcommittee would be a positive approach and working with the new Public Works director would dovetail nicely. City of Kenai Council Meeting May 2, 2018
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The sub-committee’s liaison, purpose, members, and timeframe were discussed. It was noted Council Member Glendening had offered to be liaison to the sub-committee and Mayor Gabriel nominated him. VOTE:
There being no objection; SO ORDERED.
MOTION: Council Member Molloy MOVED to appoint Commissioners DuPerron, Dunn, and Crandall to the sub-committee and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the motion. VOTE:
There being no objection; SO ORDERED.
MOTION: Council Member Molloy MOVED to set the term of the sub-committee to end on December 31, 2018 and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the motion. VOTE:
There being no objection; SO ORDERED.
MOTION: Council Member Molloy MOVED to confirm the mayor’s nomination of Council Member Glendening to be the sub-committee’s liaison and requested UNANIMOUS CONSENT. Council Member Boyle SECONDED the motion. VOTE:
There being no objection; SO ORDERED. 6. Action/Approval – Approving a Special Use Permit to Kenai Rotary for Use of the Multi-Purpose Facility for the Kenai Rotary Soap Box Derby.
MOTION: Council Member Molloy MOVED to approve a special use permit to Kenai Rotary for use of the multi-purpose facility for the Kenai Rotary Soap Box Derby and Council Member Boyle SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE:
There being no objection; SO ORDERED. 7. Discussion – Wake Zone Signage at the Mouth of the Kenai River.
It was pointed out that administration’s understanding of the Harbor Commission’s request was to keep boaters mindful of keeping their wake minimal; proposing “Be Safe; Minimize Your Wake” as permanent signs. It was felt the proposed signage would be a good start and boaters would be mindful.
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H.
COMMISSION/COMMITTEE REPORTS 1. Council on Aging – No report; next meeting May 10. 2. Airport Commission – No report; next meeting May 10. 3. Harbor Commission – No report; next meeting May 7. 4. Parks and Recreation Commission – No report; Next meeting May 3. 5. Planning and Zoning Commission – It was reported that on April 25, the Commission approved a plat for a Right-of-Way vacation and approved a Conditional Use Permit to build a 6-Plex for senior housing; next meeting May 9. 6. Beautification Committee – No report; next meeting May 8. 7. Mini-Grant Steering Committee – No report.
I.
REPORT OF THE MAYOR Mayor Gabriel reported on the following: • Attended the Volunteer Appreciation Dinner for the City’s commission members and thanked the Clerk’s Office for the work they did putting it together; • Attended Samurai Sam’s grand opening; • Sam Cotton, Commissioner of Alaska Department of Fish and Game asked him to attend an informal meeting of stakeholders from the Cook Inlet area regarding a framework for creating a less hostile atmosphere surrounding the Board of Fisheries.
J.
ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Participated as a Caring for the Kenai judge; noted the sixth place winner had a concept for a magnetic beach sweeper and had discussions with him; • Met with the Eagle Cam bloggers at the Eagle Cam location for future content; • Tasked the Planning Department with reviewing the City’s sign code; • The Washington D.C. delegation was fully engaged with authorizing the extension for the Bluff Stabilization Project; • Provided an update on the upcoming Kenai Peninsula Borough work session. 2. City Attorney – Reported he was preparing an informational memo regarding sales tax on internet sales; noted a case pending at the U.S. Supreme Court level could be a game changer. 3. City Clerk – J. Heinz noted the report of the April 12 shred day was included in the packet; new art in the display case in Chambers; provided an update on the upcoming meetings and events.
K.
ADDITIONAL PUBLIC COMMENT
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1. Citizens Comments (Public comment limited to five (5) minutes per speaker) None. 2. Council Comments Vice Mayor Navarre pointed out a bill moving through the legislature that was increasing fees on municipal license plates; AML members testified; also reported that Alaska Municipal League was in negotiations for a new Executive Director. Council Member Knackstedt expressed gratitude for Council Member Glendening attending the Airport Commission meeting on his behalf. Council Member Glendening noted he attended the 51st Outstanding Student Award presented by the Masonic Lodge where forty students were rewarded; also noted he had been appointed to the borough’s AK LNG Advisory Committee and would be collaborating with the City Planner and City Manager. L.
EXECUTIVE SESSION – None.
M.
PENDING ITEMS – None.
N.
ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at 9:05 p.m.
I certify the above represents accurate minutes of the Kenai City Council meeting of May 2, 2018.
_____________________________ Jamie Heinz, CMC City Clerk
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Sponsored by: Vice Mayor Navarre and Council Member Glendening
CITY OF KENAI ORDINANCE NO. 3018-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KENAI MUNICIPAL CODE TITLE 23-PERSONNEL REGULATIONS, TO CREATE A NEW CLASS OF EMPLOYEES DEFINED AS “DEPARTMENT HEAD SERVICE” THAT INCLUDES EMPLOYEES WHO WORK AT WILL AND ARE COMPENSATED WITHIN A SALARY RANGE APPROVED BY THE COUNCIL, AND MAKING OTHER HOUSEKEEPING CHANGES. WHEREAS, Department Heads are directly responsible to the City Manager for the management of departments in the City; and, WHEREAS, these professional and supervisory positions require experienced personnel to provide departmental direction and leadership; and, WHEREAS, the City’s Personnel Code does not currently provide sufficient flexibility to allow the City to consistently recruit and retain top candidates for Department Head positions because the City is limited to offering compensation at entry levels within the position’s salary range and does not provide for annual adjustments outside the step schedule; and, WHEREAS, amending the Personnel Code to allow the City Manager to offer Department Heads compensation anywhere within a range approved by the City Council commiserate with the individual’s experience, skills, performance and/or value to the City, will improve the City’s ability to attract and retain quality Department Heads; and, WHEREAS, it is a common practice for municipal department heads to work at will for the administrative head of a municipality; and, WHEREAS, having department heads serve at will allows a municipal manager the ability to make changes in departmental leadership when necessary for reasons that are important to the function of the department, in line with the manager’s philosophy, and in best interest of the City; and, WHEREAS, bringing in new Department Heads as at will employees allows the City Manager broader control over the City’s departments, which the City Manager is ultimately responsible for, while allowing existing Department Heads to continue in the same or similar work environment under which they were initially hired in a grandfathered status; and, WHEREAS, existing Department Heads may voluntarily choose to become at will and a part of the new “Department Head Service,” at any time; and, WHEREAS, other housekeeping changes are needed to improve the City’s Personnel Code.
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Ordinance No. 3018-2018 Page 2 of 26 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Amendment of Section 23.05.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.05.060 - Tenure, is hereby amended as follows: 23.05.060 Tenure. Tenure of employees in the classified service [COVERED BY THIS TITLE] shall be subject to good behavior, satisfactory performance of work, necessity for the performance of work, and the availability of funds. Section 2. Amendment of Section 23.05.070 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.05.070 - Definitions, is hereby amended as follows: 23.05.070 Definitions. As used in Title 23, the following terms shall have the meanings indicated: (a) Unclassified Service. The unclassified service shall include all elected officials, City Manager, City Attorney, City Clerk, seasonal and temporary employees. Members of boards, committees, commissions, volunteers, contractors, and consultants are not employees. (b) Classified Service. All paid employees not in the unclassified [SERVICE] or Department Head Service. (c) Department Head Service. The Department Head Service shall include employees who are directly responsible to the City Manager for the administration of one or more departments. [(C)](d) Full-Time. Employees scheduled to work forty (40) hours per week (except certain Fire Department employees who work an average of fifty-six (56) hours per week) are considered full time. [(D)](e) Part-Time. Employees scheduled to work less than forty (40) hours per week. [(E)](f) Regular. Employees who have completed the probationary period. They may be assigned to work a full-time or part-time schedule. [(F)](g) Seasonal. Employees who perform seasonal work for a pre-established period of not more than six (6) months during a twelve (12)-month period. Seasonal Employees may be assigned a full time or part-time schedule and are eligible for Public Employee Retirement Benefits but are ineligible for other benefits and holiday pay. Seasonal Employees who have completed the probationary period may return to the seasonal position each season subject to performance evaluations, general conduct and discipline, personnel rules and policies of the City, layoff, reorganization and other business needs of the City. [(G)](h) Temporary. Employees who are hired for a pre-established period, usually during peak workloads or for vacation relief and for not more than six (6) months. They may be assigned to work a full-time or part-time schedule. They are ineligible for benefits and holiday pay. [(H)](i) Probationary Period. Normally six (6) months, except for Police, Communications and Fire, which is normally twelve (12) months. This period can be extended up to, but no longer than, twelve (12) months and eighteen (18) months, respectively. [(I)](j) Department. The smallest functional budgetary unit of the City government established by the City Council. [(J) DEPARTMENT HEAD. A CLASSIFIED EMPLOYEE DIRECTLY RESPONSIBLE TO THE CITY MANAGER FOR THE ADMINISTRATION OF ONE (1) OR MORE DEPARTMENTS.]
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Ordinance No. 3018-2018 Page 3 of 26 (k) Promotion. An advancement of an employee from one (1) job classification to a higher job classification within the same department. (l) Transfer. The movement of an employee from one (1) department to another department, regardless of job classification. (m) [GENERAL GOVERNMENT EMPLOYEE. A CITY EMPLOYEE OTHER THAN A PUBLIC SAFETY EMPLOYEE. (N)] Public Safety Employee. A person employed in the Police, Fire, or Communications Department. [(O)](n) Supervisor. Any person who is responsible to a higher divisional or department level of authority and who directs the work of others. [(P)](o) City Manager. A person directly responsible to the City Council who is authorized and directed to exercise the powers and fulfill the duties as specified in the Charter and Municipal Code of the City of Kenai. [(Q)](p) City Attorney. A person directly responsible to the City Council. He or she is the chief legal advisor to the Council and all other officers, departments and agencies of the City government in matters relating to their official powers and duties. [(R)](q) City Clerk. An officer of the City, appointed by the Council, for an indefinite period of time and shall serve as clerical officer of the Council. [(S)](r) Grievance. An employee’s oral or written expression of dissatisfaction with some aspect of his or her employment, a management decision affecting him or her, or an alleged violation of his or her rights for the purpose of attempting to gain an adjustment of said cause of dissatisfaction. Section 3. Amendment of Section 23.10.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.10.010 - General, is hereby amended as follows: 23.10.010 General. All offices and positions of the City are divided into [C]Classified [S]Service, [AND U]Unclassified [S]Service and Department Head Service. [ALL THE PROVISIONS OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE CLASSIFIED SERVICE. THE PROVISIONS OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE EXEMPT SERVICE AS INDICATED IN KMC 23.10.020.] Section 4. Amendment of Section 23.10.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.10.020 –Unclassified service, is hereby amended as follows: 23.10.020 Unclassified [S]Service. The unclassified service shall include the following: (a) Mayor and Council Members. Only the following provisions shall apply: KMC 23.30.110(b) and (d) [AND 23.40.080 (AS APPLICABLE)], 23.40.100 and 23.40.110. (b) Members of Boards or Commissions. Only the following provisions shall apply to such officials: KMC 23.30.110(b) and (d). Only the following provisions shall apply to Planning and Zoning Commissioners compensated pursuant to KMC 14.05.010: KMC 23.40.100 and 23.40.110. (c) The following Council-appointed administrative offices: (1) City Manager. The City Manager shall perform all those duties mandated for his or her position by the provisions of this chapter and shall be bound or receive the benefits of the following sections insofar as they are applicable: KMC 23.25.050 and 23.25.060(d); KMC 23.30.110(b), (C) and (d); and KMC 23.40.020, 23.40.030, 23.40.040, 23.40.060, 23.40.070, 23.40.095, 23.40.100, 23.40.110, 23.40.120, and
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Ordinance No. 3018-2018 Page 4 of 26 23.40.130. The Council shall by resolution determine whether KMC 23.40.080 applies to the position of City Manager. (2) City Clerk. Only those provisions specifically enumerated under subsection (1) above shall apply to the City Clerk. (3) City Attorney. Only those provisions specifically enumerated under subsection (1) above shall apply to the City Attorney. (d) Volunteer Personnel and Personnel Appointed to Serve Without Pay. None of the provisions of this chapter shall apply to such personnel. (e) Consultants and Counsel Rendering Temporary Professional Services. Such services shall be by contract and none of the provisions of this chapter shall apply. (f) Positions Involving Seasonal or Temporary Work. All of the provisions of this chapter shall apply to such positions but only insofar as they are applicable. [(G) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE EXEMPT SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION: CITY MANAGER CITY ATTORNEY CITY CLERK] Section 5. Amendment of Section 23.10.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.10.030 –Classified service, is hereby amended as follows: 23.10.030 Classified [S]Service. The [C]Classified [S]Service shall include all [OTHER POSITIONS IN THE CITY SERVICE] paid employees not in the Unclassified or Department Head Service. (a) [ALL P]Positions in the Classified Service are established by the annual budget or [COMPENSATION GUIDE] Classification Plan. [ADOPTED BY RESOLUTION OF THE CITY COUNCIL. ANY NEW POSITION CREATED AT THE START OR DURING THE BUDGET YEAR AND EITHER RATIFIED OR AFFIRMED BY THE CITY COUNCIL.] [(B) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION: AIRPORT MANAGER FINANCE DIRECTOR FIRE CHIEF LIBRARY DIRECTOR PARKS AND RECREATION DIRECTOR POLICE CHIEF POLICE LIEUTENANT PUBLIC WORKS DIRECTOR PUBLIC WORKS MANAGER SENIOR CENTER DIRECTOR.] Section 6. Enactment of Section 23.10.035 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.10.035 –Department Head Service, is hereby enacted as follows:
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Ordinance No. 3018-2018 Page 5 of 26 23.10.035 Department Head Service (a) Positions in the Department Head Service are established by the annual budget or Classification Plan. (b) The Department Head Service shall consist of full-time paid employees who are the heads of departments. Department Heads serve at will. The City Manager may suspend or dismiss such employees without cause subject to review by the City Attorney. Section 7. Amendment of Section 23.20.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.20.010 –Initial classification, is hereby amended as follows: 23.20.010 Initial [C]Classification. The City Manager shall make analysis of the duties and responsibilities of all positions in the [C]Classified [S]Service and Department Head Service and shall recommend to the Council a job classification plan. Each position in the [C]Classified [S]Service and Department Head Service shall be assigned to a job class on the basis of the kind and level of its duties and responsibilities. [, TO THE END THAT] All positions in the same class shall be sufficiently alike to make use of a single descriptive title, the same qualification requirements, the same test of competence, and the same pay scale. A job class may contain one [(1)] position or more than one [(1)] position. The Council shall adopt a classification plan by ordinance. Section 8. Amendment of Section 23.25.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.020 –Pay plan and adoption, is hereby amended as follows: 23.25.020 Pay [P]Plan and [A]Adoption. The City Manager shall submit the pay plan and rules for its administration to the City Council for adoption. Before the pay plan and the rules for its administration are adopted by the Council, the City Manager shall assign each job class to one [(1)] of the pay ranges provided in the pay plan. A salary schedule for the Department Heard Service shall be part of the pay plan. The Council shall adopt a plan and rules by ordinance. Section 9. Amendment of Section 23.25.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.030 –Pay plan amendment, is hereby amended as follows: 23.25.030 Pay [P]Plan [A]Amendment. The pay plan may be amended by the City Council from time to time as circumstances require, either by adjustment of rates or by reassignment of job classes to different pay ranges or salary schedule. All modifications shall apply uniformly to all positions in the same class. Section 10. Amendment of Section 23.25.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.040 –Appointee compensation, is hereby amended as follows: 23.25.040 Appointee [C]Compensation –Classified Service. (a) Upon initial appointment to a position, the employees in the Classified Service shall receive the minimum compensation for the class to which the position is allocated, except as provided below. (b) [HOWEVER, I]In [THE] cases when unusual difficulty in filling the vacancy is experienced, or when the appointee is exceptionally qualified, the City Manager may cause the appointment for employees in the Classified Service to be made at a compensation level above the minimum, but not more than level D for the same class.
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Ordinance No. 3018-2018 Page 6 of 26 Section 11. Enactment of Section 23.25.045 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.045 –Department Heads, is hereby Enacted as follows: 23.25.045 Department Heads (a) Upon initial appointment to a position, employees in the Department Head Service shall receive the minimum compensation for the class to which the position is allocated, except as provided below. (b) In cases when unusual difficulty in filling the vacancy is experienced, or when the appointee is exceptionally qualified, the City Manager may cause the appointment for employees in the Department Head Service to be made at a compensation level above the minimum, but not more than the maximum for the same class. Section 12. Amendment of Section 23.25.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.060 –Overtime, is hereby amended as follows: 23.25.060 Overtime. (a) Department heads and supervisors shall assign to each employee regular work duties and responsibilities which can normally be accomplished within the established work day and work week. (b) When employees are required to work overtime, department heads shall authorize compensatory time off or overtime pay. Determination to grant overtime pay or compensatory time off shall rest with the department head, City Manager, or acting department heads, who shall give due consideration to desires of the employee, to budgetary controls, and to the provisions of subsection (c) of this section. Rates for overtime (in addition to regular compensation based upon compensation schedules) shall be based upon the employee’s regular rate of pay as follows: (1) [GENERAL GOVERNMENT E]Employees in the Classified Service (excluding public safety, sewer treatment plant, and temporary employees): Regular Pay Times Regular Work Saturday Sunday Holiday (2)
1 1/2 1 1/2 2 2 1/2
Temporary employees: Regular Pay Times Regular Work Saturday Sunday Holiday
1 1/2 1 1/2 1 1/2 1 1/2
(3) [GENERAL GOVERNMENT] Employees in the Classified Service and temporary employees other than employees engaged in fire protection activities must be in a paid status for forty (40) hours in the work week before overtime compensation will be paid.
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Ordinance No. 3018-2018 Page 7 of 26 (4)
Police, communications and sewer treatment plant employees: Regular Pay Times Regular Work Day Saturday Sunday
(5)
1 1/2 1 1/2 2
Employees engaged in fire protection activities: Regular Pay Times Regular Work Saturday Sunday
1 1/2 1 1/2 1 1/2
(6) Police, communications, employees engaged in fire protection activities, and sewer treatment plant employees must be in a paid status for their normal work week, as follows, before overtime compensation will be paid: Police Employees engaged in fire protection activities Communications Sewer treatment plant
40 hours As required by the Fair Labor Standards Act 40 hours 40 hours
However, overtime may be paid as required by the Fair Labor Standards Act, recognizing that an employee’s salary is compensation for the normal shifts specified in this Title. (c) Compensatory time accumulation shall not exceed the total number of hours equal to one (1) regular shift of the employee. Once this maximum accumulation has been reached, all overtime compensation earned by the employee shall automatically be paid in cash. (d) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND EXEMPT SERVICES CONSIDERED TO BE] Positions exempt from the provisions of the Fair Labor Standards Act shall not be bound to a work week of any set number of hours. The individuals in these positions are expected to work as many hours as the responsibilities of their positions require. As a result, individuals in these positions shall not be paid overtime or allowed to accrue compensatory time. Section 13. Amendment of Section 23.25.080 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.25.080 –Promotion, is hereby amended as follows: 23.25.080 Promotion. When an employee in the Classified Service is promoted from one class to another having a higher pay range, he or she shall receive an increase of not less than one (1) pay step from his or her former position. Section 14. Amendment of Section 23.30.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.010 –General, is hereby amended as follows: 23.30.010 General. (a) Recruitment and appointing authority shall be vested in the City Manager.
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Ordinance No. 3018-2018 Page 8 of 26 (b) Applicants must be United States citizens or eligible for employment under existing State and Federal laws and regulations in order to be employed by the City. (c) Applicants for positions in the [CITY] Classified and Department Head [S]Service need not reside within the City Limits. Departmental rules shall establish response times required by that department. (d) Minimum age for City employment shall be in accordance with State of Alaska laws. (e) Employment of qualified individuals with a disability shall be encouraged. (f) Employment rights for veterans shall be in accordance with applicable State and Federal laws. (g) Applicants must possess an appropriate valid Alaska State driver’s license, should employment require operation of a motor vehicle. (h) Applicants must complete a City application form or submit a resume of sufficient detail to equate to a City form. Section 15. Amendment of Section 23.30.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.030 –Probationary Period, is hereby amended as follows: 23.30.030 Probationary Period for Employees in the Classified Service. (a) All original appointments for employees in the Classified Service including those that result from transfers shall be tentative and subject to a probationary period of not less than six (6) months consecutive service, except for police, fire, and communications, which shall be normally twelve (12) months, subject to meeting criteria for certification which may be accomplished following six (6) months of service and except for seasonal employees whose probationary period is established by the term of the first season of employment. Promotional appointment probationary period shall, for all [PERSONNEL]employees in the Classified Service, be not less than six (6) months. (b) In cases where the responsibilities of a position in the Classified Service are such that a longer period is necessary to demonstrate an employee’s qualifications, the probationary period may be extended; however, no probationary period shall be extended beyond twelve (12) months, or eighteen (18) months for police, fire, and communications, or one additional season for seasonal employees. The employee shall be notified in writing of any extension and the reasons therefor. (c) During the first six (6) months of original probationary period, a new employee (including police, fire, and communications) shall not be eligible for annual leave benefits, but he or she shall earn annual leave credit from the first day of employment and may take leave for sickness during that period to the maximum of the amount of leave accrued. (d) Upon completion of the probationary period, employees in the Classified Service shall be considered as having satisfactorily demonstrated qualifications for the position, shall gain regular status, one step in pay raise, and shall be so informed through his or her supervisor. The employee’s anniversary date shall be the first of the month in which the employee’s original probation ends. Employees who have gained regular status at the effective date of the ordinance codified in this section shall have their anniversary dates changed to the first of the month in which the employee’s present anniversary date falls. (e) During the probationary period, a new employee [HIRE] hired in the Classified Service may be terminated at any time without advance notice, without cause, and without appeal. (f) In the case of promotional appointments, the promoted employee may be demoted at any time during the probationary period without appeal, provided that the probationary employee be reinstated in the class designation from which he or she was promoted, even though this necessitates the layoff of the employee occupying the position.
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Ordinance No. 3018-2018 Page 9 of 26 Section 16. Repeal of Section 23.30.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.040 –Evaluation, is hereby Repealed as follows: [23.30.040 EVALUATION. (A) EVALUATIONS SHALL BE REQUIRED ANNUALLY OF ALL CLASSIFIED EMPLOYEES AND AFTER EACH SEASON FOR SEASONAL EMPLOYEES. SUPERVISORS SHALL INDICATE THEREON HIS OR HER RECOMMENDATION AS TO WHETHER OR NOT THE EMPLOYEE SHOULD BE AWARDED A PAY RAISE IN ACCORDANCE WITH THE CITY PAY PLAN, KMC 23.55. (B) APPROVAL OF INCREMENT PAY RAISES ARE VESTED IN THE CITY MANAGER.] Section 17. Amendment of Section 23.30.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.050 –Business hours and hours of work, is hereby amended as follows: 23.30.050 Business [H]Hours and [H]Hours of [W]Work. (a) The hours during which City offices and departments shall normally be open for business shall be 8:00 a.m. to 5:00 p.m., [PUBLIC WORKS DEPARTMENTS SHALL BE 8:00 A.M. TO 4:30 P.M., EXCEPT SATURDAYS AND SUNDAYS, HOLIDAYS, AND FURTHER EXCEPTING] Police and Fire [WHICH] shall be open for business twenty-four (24) hours a day. The Library, Senior Center, Public Works, and Animal Control operations shall be open for business as authorized by the City Manager. (b) Public Safety employees, not including administrators, normal work week is: (1) Police and Communications—four (4) shifts of ten (10) hours per week, two thousand eighty (2,080) hours annually. When working this shift, first and third days off shall be treated as Saturdays and the middle day off (the second day) shall be treated as a Sunday for purposes of paying overtime; (2) Employees performing fire protection activities as defined by the Fair Labor Standards Act (FLSA) may work any FLSA approved “7(k) Work Period” approved by the City Manager. (c) Sewer Treatment Plant employees work a forty (40) hour week on a shift basis that allows at least one (1) employee to be at the plant on a given day. When scheduled days off are two (2) consecutive calendar days, the first day off shall be treated as a Saturday and the second day off shall be treated as a Sunday for purposes of paying overtime. (d) All other employees’ normal work week is forty (40) hours, two thousand eighty (2,080) hours annually. Standard work day is midnight to midnight succeeding. Standard work week is midnight Sunday to midnight Sunday succeeding. Operating hours may be adjusted on timely notice. [(E) SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND UNCLASSIFIED SERVICES CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT SHALL NOT BE BOUND TO A WORK WEEK OF ANY SET NUMBER OF HOURS. THE INDIVIDUALS IN THESE POSITIONS ARE EXPECTED TO WORK AS MANY HOURS AS THE RESPONSIBILITIES OF THEIR POSITIONS REQUIRE. THESE INDIVIDUALS ARE EXPECTED, HOWEVER, TO SUBSTANTIALLY CONFORM TO THE NORMAL WORK WEEK AS DESCRIBED IN SUBSECTION (D).] Section 18. Amendment of Section 23.30.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.060 –Attendance, is hereby amended as follows:
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Ordinance No. 3018-2018 Page 10 of 26 23.30.060 Attendance. (a) Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays, and leaves of absence. (b) An employee shall not be absent [HIM OR HERSELF] from work for any reason without prior approval from his or her supervisor. When prior approval is not obtained, an employee, who for any reason fails to report to work, shall make a sincere effort to notify his or her supervisor of his or her reason for being absent. If the absence continues beyond the first day, the employee shall notify the supervisor on a daily basis unless other arrangements have been made with the supervisor. (c) Departments shall maintain records of employees’ attendance. (d) Any unauthorized absence of any employee from duty shall be deemed to be an absence without pay and may be cause for disciplinary action. Section 19. Amendment of Section 23.30.070 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.070 –Personnel records, is hereby amended as follows: 23.30.070 Personnel [R]Records. (a) The City Manager shall cause a service or personnel record to be maintained for each employee in the Classified and Department Head service of the City of Kenai. (b) The personnel record shall show the employee’s name, title of position held, the department to which assigned, compensation, change in employment status, training received, and such other information as may be considered pertinent. (c) A personnel action form shall be used as the single document to initiate and update personnel records. (d) Employee personnel records shall be considered confidential and shall be accessible only to the following: (1) The employee concerned; (2) Selected City officials authorized by the City Manager. (e) Department personnel files should not be developed or maintained, except as working records; i.e., accumulating data for evaluation reports. Departmental personnel records are therefore unofficial and have no standing. Section 20. Amendment of Section 23.30.110 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.110 –Travel expense, is hereby amended as follows: 23.30.110 Travel [E]Expense. When employees are required to travel outside the City on City business, reimbursement, subject to advances received, for expenditures incurred shall be determined as follows: (a) Prior to traveling outside the City, the employee shall obtain permission for the trip and the mode of travel from the department head. (b) Travel on official business outside the City by one (1) individual shall be via public carrier or City-owned vehicle whenever practical. If, for extenuating circumstances, the employee is authorized to use a private vehicle, total mileage shall be paid at the standard IRS mileage rate. This rate includes all travel, insurance and fuel. (c) [THOSE]Classified and Department Head Service employees who [HABITUALLY]often use their privately-owned vehicle for City business shall be reimbursed thirty dollars ($30.00) per month, subject to authorization by the City Manager. (d) The authorized per diem rates are fifty dollars ($50.00) per full twenty-four (24) hour day, plus lodging expenses. Part days will be reimbursed for actual costs incurred, up to fifty dollars ($50.00) per day. Claims for lodging expenses will be supported by receipts.
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Ordinance No. 3018-2018 Page 11 of 26 Section 21. Amendment of Section 23.30.120 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.120 –Moving expense for new employees, is hereby amended as follows: 23.30.120 Moving [E]Expense for [N]New [E]Employees. (a) [WHENEVER A PROFESSIONAL OR TECHNICALLY TRAINED PERSON CHANGES HIS OR HER PLACE OF RESIDENCE MORE THAN FIFTY (50) MILES, FOR THE PURPOSE OF ACCEPTING EMPLOYMENT WITH THE CITY, SUCH A PERSON MAY BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES UNDER THE FOLLOWING CONDITIONS:] At the City Manager’s discretion moving expenses for new employees may be reimbursed for actual and necessary expenses under the following conditions: (1) The employee must be appointed to a position or a class for which the City Manager certifies that such expenditure is necessary to recruit qualified employees and funded by the Council. (2) The maximum reimbursable shall be subject to negotiation at the time of an offer of acceptance of appointment. [(3) TO BE ELIGIBLE FOR THE TOTAL ALLOWANCE FOR AN EMPLOYEE WHO IS THE HEAD OF A HOUSEHOLD, HIS OR HER DEPENDENTS MUST ACCOMPANY HIM OR HER OR JOIN HIM OR HER WITHIN ONE (1) YEAR OF THE DATE OF HIS OR HER APPOINTMENT.] [4](3) New employees who are assisted with their moving expenses shall be required to sign a Transportation Agreement prior to employment. The Transportation Agreement stipulates that the employee will reimburse the City for all or part of such expenditures in the event of voluntarily leaving City service within a period of two [(2)] years according to the following schedule: 100%—Less than six (6) months. 75%—Six (6) months, but less than twelve (12) months. 50%—Twelve (12) months, but less than eighteen (18) months. 25%—Eighteen (18) months, but less than twenty-four (24) months. 0%—Two (2) years and over. (b) New employees may not be given an advance against moving expenses without prior written approval of the City Manager. Section 22. Amendment of Section 23.30.140 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.30.140 –Relatives in city service, is hereby amended as follows: 23.30.140 Relatives in [C]City [S]Service. (a) Two (2) members of an immediate family (spouse, children, brother, sister, in-laws or parents) shall not be employed under the same immediate supervisor. Neither shall two (2) members of an immediate family be employed at the same time regardless of the administrative department, if such employment will result in an employee supervising a member of his or her immediate family. This section shall not be construed to prohibit employment by the City of relatives of City Council members. (b) The provisions of this section shall apply to promotions, demotions, transfers, reinstatements, and new appointments. [(C) COHABITATION BY ADULTS OF THE OPPOSITE SEX PRESUMES A FAMILY RELATIONSHIP AND SHALL BE CONSTRUED AS SUCH.]
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Ordinance No. 3018-2018 Page 12 of 26 Section 23. Amendment of Section 23.35.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.35.020 –Causes for warning, suspension or discipline, is hereby amended as follows: 23.35.020 Causes for [W]Warning, [S]Suspension, or [D]Dismissal. (a) When an employee[’s] in the Classified Service demonstrates conduct that falls below desirable standards, he or she may be subject to disciplinary action. (b) General reasons for which an employee may be disciplined include: (1) Drinking intoxicating beverages on the job or arriving on the job under the influence of intoxicating beverages. (2) Use, consumption, or possession of marijuana (including every compound, manufacture, derivative, mixture, or preparation of the plant, its seeds or its resin, including marijuana concentrate), on the job or arriving on the job impaired by the same, unless the employee has a medical prescription for marijuana from a licensed medical practitioner as a part of a medical treatment and can perform work unimpaired. (3) Illegal use, consumption or possession of any controlled or illegal substance on the job or arriving on the job impaired by the same. (4) Ingestion, of any prescription or over the counter medication in amounts beyond the prescribed or recommended dosage on the job, or arriving on the job impaired by the same. Employees shall notify their immediate supervisor when required to use prescription medicine that they have been informed has the potential to impair job performance. (5) Violation of a lawful duty. (6) Insubordination. (7) Breach of discipline. (8) Being absent from work without first notifying and securing permission from the employee’s supervisors. (9) Being habitually absent or tardy for any reason. (10) Misconduct. (11) Conviction of a felony or a misdemeanor involving moral turpitude. (12) Using religious, political, or fraternal influence. (13) Accepting fees, gifts, or other valuable things in the return for performance of the employee’s official duties for the City. (14) Inability to perform the assigned job. (15) Political activity as restricted by the Charter. (16) Failure to follow the City’s Drug, Alcohol, and Marijuana policy as set forth in the City of Kenai Employee Handbook. (17) Knowingly or negligently failing to follow Federal and State occupational safety and health regulations and City law and policy regarding the same. Section 24. Amendment of Section 23.35.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.35.030 –Forms of disciplinary action, is hereby amended as follows: 23.35.030 Forms of [D]Disciplinary [A]Action. (a) Disciplinary action for employees in the classified service ranges from oral or written reprimands to suspension, demotion, and finally dismissal from the City service, and depends on the severity of the offense as well as the number and the frequency of previous acts of misconduct. (b) It shall be the duty of all City employees to comply with and to assist in carrying into effect the provisions of the City’s personnel rules and regulations. No employee in the
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Ordinance No. 3018-2018 Page 13 of 26 classified service shall be disciplined except for violation of established rules and regulations, and such discipline shall be in accordance with procedures established by the personnel rules and regulations. (c) Every department head shall discuss improper or inadequate performance with the employee in order to correct the deficiencies and to avoid the need to exercise disciplinary action. Where appropriate, disciplinary action shall be of increasing severity. (d) A written notice shall be given each employee in the classified service for each written disciplinary action stating the reasons for the disciplinary action and the date it shall take effect. The notice shall be given to the employee at the time such action is taken. A copy of the notice signed by the employee shall be placed in the employee’s personnel file and shall serve as prima facie evidence of delivery. (e) All regular employees in the classified service shall have the right to appeal disciplinary action taken against them within five (5) working days after receipt of notice by employee of the disciplinary action. Appeals shall be made as grievances in accordance with the provisions of KMC 23.35.040 except that appeals from suspension, demotion, or dismissal shall be made directly to a Personnel Board selected from the Arbitration Panel provided in KMC 23.35.032 by filing such appeal in writing with the City Clerk, setting forth the background, the disciplinary action, and the reasons why the disciplinary action is felt to be unjust. Section 25. Amendment of Section 23.35.032 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.35.032 –Arbitration panel, is hereby amended as follows: 23.35.032 Arbitration [P]Panel. (a) There is hereby established an Arbitration Panel consisting of twelve (12) members who shall be chosen by the City Council from nominees made by City employees and by members of the City Council. (b) A member of the Arbitration Panel must be a resident of the City of Kenai and must not hold any other office or position in the government of the City of Kenai. (c) Members of the panel shall serve for indefinite terms until termination by the Council, resignation by the member, death, move from the City of Kenai, election, or appointment as an officer or employee of the City of Kenai, or incapacity of the member. (d) By adoption of the ordinance codified in this chapter, the city hereby waives any claim or cause of action it might have against any member of the Arbitration Panel based on his or her service thereon or on a Personnel Board. Any employee in the classified service, by filing an appeal under the provisions of this chapter, likewise waives any claim or cause of action such employee might have against any member of the Arbitration Panel based on his or her service thereon or on a Personnel Board, and if requested such employee will execute and file a formal waiver at time of filing appeal. Section 26. Amendment of Section 23.35.034 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.35.034 –Procedures on Appeal, is hereby amended as follows: 23.35.034 Procedures on [A]Appeal. (a) Within five (5) working days after the filing of a written appeal with the City Clerk, the City Manager or the designee of the City Manager shall file with the City Clerk an answer in writing to the appeal setting forth any facts which might be in dispute in the appeal, and setting forth the reasons why the actions are believed to be justified and the City Manager or his or her designee shall serve a copy of the answer on the employee in person or by ordinary mail to employee’s home address.
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Ordinance No. 3018-2018 Page 14 of 26 (b) Promptly after the appeal is filed, the City Clerk shall deliver a copy of the appeal to the City Manager. (c) The members of the Arbitration Panel shall be listed in alphabetical order, and will be called in rotation. Any member passed over because of illness or absence, or disqualified by an appealing employee in the classified service or the administration, shall be treated as though he or she has served on the Personnel Board and will not be called again until his or her name comes up in the normal rotation. As soon as an appeal is filed with the City Clerk, the City Clerk will make contact and determine the next five (5) members of the panel due and available for service during the following three (3) weeks, and shall notify the appealing employee of the five (5) members due for service. The appealing employee will advise the City Clerk within two (2) working days which member the employee wishes deleted from the list, and the City Clerk will then notify the City Manager or his or her designee of the four (4) remaining members due for service. The City Manager or his or her designee will advise the Clerk within one (1) working day of the name of the member the administration wishes to delete from the list. Thereafter, the Clerk will notify the two (2) members of their disqualification and the other three (3) members as to being chosen for service and will determine a date, time, and place when all three members may assemble for hearing, and will then notify the appealing employee in the classified service and the City Manager or designee of such date, time, and place of hearing. (d) At the time of hearing, the employee in the classified service shall present any written evidence, oral testimony, or witnesses that he or she desires, and thereafter the City Manager or designee shall present evidence, oral testimony, or witnesses as he or she deems fit, following which the parties may continue to present rebuttal testimony alternately until neither side has anything further to present. (e) After completion of presentation of testimony, the appealing employee in the classified service may make any statement he or she desires by way of argument, which may be answered by the City Manager or designee, and the appealing employee shall then have a final closing argument if he or she so desires. (f) If any member of the Personnel Board feels it necessary or desirable, he or she may call additional witnesses or call for presentation of additional testimony, adjourning the hearing to a future time for such presentation if necessary. (g) After presentation of all evidence and arguments, the Personnel Board shall go into executive session to make a determination of the appeal, and the Personnel Board shall make written findings of fact and conclusions as to the justness of the disciplinary action. (h) There shall be no formal restrictions on the kind of or form of evidence presented so long as it is pertinent to the appeal and is not unduly repetitive, but the Personnel Board by majority vote may limit repetitive evidence and may restrict evidence to matters pertinent to the hearing and to evidence which they would find credible. (i) The Personnel Board has power to uphold the disciplinary action, to set aside the disciplinary action completely restoring the appealing employee in the classified service to his or her former position and to any and all pay which may have been lost because of the disciplinary action, or if the Personnel Board feels it necessary in the interest of justice that some disciplinary action be taken but that the particular disciplinary action was too extreme, it shall determine what the proper disciplinary action should be. (j) The decision of the Personnel Board may be made by a majority of the Board and shall be final and binding on the employee and on the City. (k) Copies of the appeal, the answer to the appeal, and the written decision of the Personnel Board shall become a part of the personnel file of the appealing employee.
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Ordinance No. 3018-2018 Page 15 of 26 Section 27. Amendment of Section 23.35.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.35.040 –Grievance procedure, is hereby amended as follows: 23.35.040 Grievance [P]Procedure. (a) [THE]For employees in the classified service, the City shall promptly consider and equitably adjust employee grievances relating to employment conditions and relationships. Furthermore, the City desires to adjust the causes of grievances informally, both supervisors and non-supervisory employees in the classified service are expected to resolve problems as they arise. (b) The following steps shall be followed in submitting and processing a grievance for employees in the classified service: (1) Step 1—The aggrieved employee in the classified service or group of employees in the classified service shall orally present the grievance to the immediate supervisor within five (5) working days of the occurrence, not including the date of presentation. (2) Step 2—If the grievance is not settled in Step 1, it shall be prepared in detail, shall be reduced to writing, shall be dated, shall be signed by the aggrieved employee in the classified service or group of employees in the classified service, and shall be presented to the department head within five (5) working days after the supervisor’s oral reply is given, not including the day that the answer is given. (3) Step 3—If the grievance is not settled in Step 2, the written grievance shall be presented along with all pertinent correspondence, records, and information accumulated to date to the City Manager within seven (7) working days after the department head’s response is given, not including the day that the response is given. The City Manager shall meet with the aggrieved employee or group of employees, the immediate supervisor and the department head. The City Manager shall reply to the grievance in writing within seven (7) working days of the date of presentation of the written grievance. The decision of the City Manager shall be final and binding on the employee or group of employees. (c) If the grievance procedures are not initiated within the time limits established by this section, the grievance shall be considered not to have existed. (d) Any grievance not taken to the next step of the grievance procedure shall be considered settled on the basis of the last reply made and received in accordance with the provisions of this section. (e) If the City fails to meet or answer any grievance within the time limits prescribed for such action by this section, such grievance shall automatically advance to the next step. If the City fails to meet or answer any grievance on the last step of the grievance procedure within the time limits prescribed for such action by this section, it shall be deemed that the City has considered the grievance to be in favor of the grievant and shall resolve the matter accordingly. (f) The time limits prescribed in this section for the initiation and completion of the steps of the grievance procedure may be extended by mutual consent of the parties so involved. Likewise, any step in the grievance procedure may be eliminated by mutual consent. Mutual consent shall be indicated in writing and shall be signed by all parties involved. No employee shall be disciplined or discriminated against in any way because of the employee’s proper use of the grievance procedure. Section 28. Amendment of Section 23.40.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.010 –General, is hereby amended as follows:
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Ordinance No. 3018-2018 Page 16 of 26 23.40.010 General. (a) All non-temporary, full-time,[AND] non-temporary part-time (fifteen (15) hours and over per week) classified and Department Head Service employees are entitled to the following benefits, except for medical and hospital insurance which shall be available to non-temporary employees working no less than twenty-five (25) hours per week, as specified in this article. (b) An employee hired under the State of Alaska’s Mature Alaskans Seeking Skills Training (MASST) program shall receive only Social Security, Medicare (KMC 23.40.130), Workers Compensation (KMC 23.40.110) and family leave (KMC 23.40.130) benefits. The other benefits in KMC 23.40 shall not apply to persons hired under the MASST program. The hourly wage paid a MASST employee shall be as set by the State of Alaska, but not less than minimum wage. (c) Seasonal employees are eligible to participate in the State Public Employees’ Retirement System. Section 29. Amendment of Section 23.40.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.030 –Annual leave, is hereby amended as follows: 23.40.030 Annual [L]Leave. (a) Annual leave is a combined vacation and sick leave. (b) Accrual rate: (1) Full-time [CLASSIFIED] employees except certain Fire Department employees: 7.3846 hours bi-weekly—first two (2) years of service. 8.3077 hours bi-weekly—three (3) through five (5) years of service. 9.2308 hours bi-weekly—six (6) through ten (10) years of service. 10.1538 hours bi-weekly—more than ten (10) years of service. (2) Fire (7(k) work period): 10.3385 hours bi-weekly—first two (2) years of service. 11.6308 hours bi-weekly—three (3) through five (5) years of service. 12.9231 hours bi-weekly—six (6) through ten (10) years of service. 14.2154 hours bi-weekly—more than ten (10) years of service. (c) Annual leave is charged on an hour-for-hour basis; i.e., normal work day of eight (8) hours would be charged at eight (8) hours annual leave; twelve (12) hour work day, twelve (12) hours annual leave; ten (10) hour work day, ten (10) hours annual leave; twenty-four (24) hour work day, twenty-four (24) hours annual leave. (d) Leave continues to accrue during the period of time an employee is on paid leave except during periods of terminal leave (leave time after which the employee does not intend to return to work). Leave does not accrue during periods of leave without pay. (e) Accrued and unused leave may be carried over from one (1) year to the next for the purpose of accumulating an annual leave account or reserve. The maximum leave hours that may be accrued is six hundred forty (640) hours for classified, [AND] unclassified, and Department Head service employees, and eight hundred ninety-six (896) hours for Fire Department employees working a 7(k) work period. (f) Annual leave may be used for any purpose desired by the employee. Incidental absences for sickness as unplanned are not controllable. However, planned absences must be coordinated with and approved by the appropriate department head. (g) It is required that each employee use a minimum of eighty (80) hours of leave per calendar year for employees working forty (40) hours per week, and one hundred twelve (112) hours for employees working a 7(k) work period, and affect appropriate coordination with the department head. If actual hours used are less than the minimum requirement, then
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Ordinance No. 3018-2018 Page 17 of 26 the difference shall be deducted from available leave hours without any compensation to the employee. (h) Excess leave above the amount authorized for accrual (subsections (a) through (e)) existing on December 31st shall automatically be paid at the then existing rate for the individual employee. (i) Department heads shall schedule vacations for their respective employees with due consideration for the desires of the employees and the work requirements facing the department. Vacation schedules may be amended to allow the department to meet emergency situations. (j) In the event of significant illness or injury not covered by workers’ compensation, or absence due to training or education an employee on exhausting annual leave may, with the approval of the City Manager, borrow up to a six (6) month entitlement (i.e., thirteen (13) x 7.3846 hours) to avoid a no-pay status. In the event the person’s employment with the City ends prior to the borrowed leave being repaid, the employee must reimburse the City for the value of any leave not repaid. The City may deduct the value of any leave not repaid from the employee’s final paycheck. (k) Part-time employees working fifteen (15) hours a week or more shall accrue at the same rate as a full-time employee except on a proportional basis as to hours. (l) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND EXEMPT SERVICES]Employees considered to be exempt from the provisions of the Fair Labor Standards Act shall have annual leave charged on an eight (8) hour/whole day basis. If any such employee is present for work during any portion of a day, that employee shall not be charged annual leave for that day. Conversely, if any such employee is absent from her or his normal place of work for an entire day (excluding Saturdays, Sundays, and holidays) that employee will be charged eight (8) hours of annual leave for that day. Section 30. Amendment of Section 23.40.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.040 –Terminal leave, is hereby amended as follows: 23.40.040 Terminal [L]Leave. Upon separation during initial probation (first six (6) months for Police, Fire and Communication), accrued annual leave shall not be granted nor paid to [THE] employee’s in the classified service. In other separations, accrued leave shall be paid in a lump sum. The salary or hourly rate to be used in computing the cash payment shall be the rate which is being received by the employee on the date the resignation/separation is signed by the employee. Section 31. Amendment of Section 23.40.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.060 –Leave of absence with pay, is hereby amended as follows: 23.40.060 Leave of [A]Absence with [P]Pay. (a) Employees may request leave of absence with pay for: (1) Witness or Jury Duty. When a City employee is called for jury duty or is subpoenaed as a witness, he or she shall not suffer any loss of his or her regular City compensation during such absence; however, he or she shall be required to transfer any compensation he or she receives for the performance of such duty to the City. Time not worked because of such duty shall not affect annual leave accrual. (2) Military Leave. Employee’s shall be eligible for military leave or associated benefits in compliance with State and Federal law. [AN EMPLOYEE WHO HAS COMPLETED THE PROBATIONARY PERIOD AND WHO IS A MEMBER OF THE NATIONAL GUARD OR RESERVE COMPONENT OF THE ARMED FORCES OF THE UNITED
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Ordinance No. 3018-2018 Page 18 of 26 STATES OR OF THE UNITED STATES PUBLIC HEALTH SERVICE SHALL BE ENTITLED, UPON APPLICATION, TO A LEAVE OF ABSENCE FROM CITY SERVICE FOR ONE (1) PERIOD NOT EXCEEDING FIFTEEN (15) CONSECUTIVE DAYS IN ANY ONE (1) CALENDAR YEAR. HOWEVER, BECAUSE POLICE, FIRE, AND COMMUNICATIONS EMPLOYEES HAVE A TWELVE (12) MONTH PROBATIONARY PERIOD RATHER THAN THE SIX (6) MONTH PROBATIONARY PERIOD FOR OTHER CLASSIFIED EMPLOYEES, THEY SHALL BE ELIGIBLE FOR MILITARY LEAVE AFTER SIX (6) MONTHS OF SERVICE. SUCH LEAVE SHALL BE GRANTED WITHOUT LOSS OF TIME, PAY (DIFFERENCE BETWEEN REGULAR AND MILITARY PAY INCLUDING COLA, BUT NOT INCLUDING OTHER REGULAR ALLOWANCES), OR OTHER LEAVE, AND WITHOUT IMPAIRMENT OF MERIT RATINGS OR OTHER RIGHTS OR BENEFITS TO WHICH HE OR SHE IS ENTITLED. MILITARY LEAVE WITH PAY SHALL BE GRANTED ONLY WHEN AN EMPLOYEE RECEIVES BONA FIDE ORDERS TO TEMPORARY ACTIVE OR TRAINING DUTY, AND SHALL NOT BE PAID IF THE EMPLOYEE DOES NOT RETURN TO HIS OR HER POSITION IMMEDIATELY FOLLOWING THE EXPIRATION OF THE PERIOD FOR WHICH HE OR SHE WAS ORDERED TO DUTY.] (3) Conferences, Conventions and Other Related City Business. Decisions concerning attendance at conferences, conventions, or other functions pertaining to City business at City expense shall be made by the department heads with the approval of the City Manager. Permission shall be granted on the basis of an employee’s participation in or the direct relationship of the function to the City. Members of professional societies may be permitted to attend meetings of their society when such attendance is considered to be in the best interest of the City. (4) Death in the Immediate Family. Leave of absence with pay is provided to assist an employee who must be absent from work as a result of a death in the immediate family. The employee’s absence would be for funeral attendance, or to handle matters arising due to the death of an immediate family member, that cannot practicably be taken care of outside of regular business hours. Upon the City Manager’s approval, employees shall be entitled to the following leave, which will not directly affect their personal leave account: three (3) working days, up to twenty-four (24) hours maximum. Section 32. Repeal of Section 23.40.150 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.40.150 –Definitions, is hereby repealed as follows: [23.40.150 DEFINITIONS. IN KMC 23.40.130 THROUGH 23.40.140: (A) “CHILD” MEANS AN INDIVIDUAL WHO IS: (1) UNDER EIGHTEEN (18) YEARS OF AGE; OR (2) EIGHTEEN (18) YEARS OF AGE OR OLDER AND INCAPABLE OF SELF-CARE BECAUSE OF MENTAL OR PHYSICAL DISABILITY. (B) “HEALTH CARE PROVIDER” MEANS: (1) A PHYSICIAN LICENSED UNDER AS 08.64, OR A DENTIST LICENSED UNDER AS 08.36, OR A PSYCHOLOGIST LICENSED UNDER AS 08.86; OR (2) ANY OTHER PERSON DETERMINED BY THE SECRETARY OF LABOR TO BE CAPABLE OF PROVIDING HEALTH CARE SERVICES. (C) “LICENSED HEALTH CARE PROVIDER” MEANS A PHYSICIAN LICENSED UNDER AS 08.64 OR A PSYCHOLOGIST LICENSED UNDER AS 08.86. (D) “PARENT” MEANS A BIOLOGICAL OR ADOPTIVE PARENT, A PARENT-IN-LAW, OR A STEP-PARENT.
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Ordinance No. 3018-2018 Page 19 of 26 (E) “SERIOUS HEALTH CONDITION” MEANS AN ILLNESS, INJURY, IMPAIRMENT, OR PHYSICAL OR MENTAL CONDITION THAT INVOLVES: (1) INPATIENT CARE IN A HOSPITAL, HOSPICE, OR RESIDENTIAL HEALTH CARE FACILITY; OR (2) CONTINUING TREATMENT OR CONTINUING SUPERVISION BY A HEALTH CARE PROVIDER. (F) “SPOUSE” MEANS SOMEONE WITH WHOM THE EMPLOYEE HAS AN EXISTING VALID MARRIAGE AS SET FORTH UNDER AS 25.05 AND SPECIFICALLY DOES NOT INCLUDE AN UNMARRIED DOMESTIC PARTNER OF THE EMPLOYEE. (G) “IMMEDIATE FAMILY” INCLUDES MOTHER, FATHER, SPOUSE, CHILDREN, BROTHER, SISTER, MOTHER/FATHER-IN-LAW. THE CITY MANAGER MAY DETERMINE “OTHER INDIVIDUALS” ARE IMMEDIATE FAMILY, PARENTS, CHILDREN, SIBLINGS AND OTHERS INVOLVED IN THE SIGNIFICANT RAISING.] Section 33. Amendment of Section 23.45.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.020 –Periods of Evaluation, is hereby amended as follows: 23.45.020 Periods of Evaluation. Each employee [IN THE CLASSIFIED SERVICE] shall have his or her performance evaluated at the following periods: (a) End of Probationary Period. Each employee in the classified service shall be evaluated thirty [(30)] days prior to the completion of his or her probationary period. The employee must have an overall evaluation of at least “Meets Expectations” in order to become permanent or, in the case of seasonal employees, be eligible for the next season’s employment. (b) Annual. Each employee shall receive an annual performance evaluation thirty [(30)] days prior to his or her anniversary date[.] and thirty days prior to the end of each season for seasonal employees. (c) Time of Separation. Each employee shall be evaluated at the time of separation and such record shall become part of his or her permanent personnel file. Section 34. Amendment of Section 23.45.030 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.030 –Performance evaluators, is hereby amended as follows: 23.45.030 Performance [E]Evaluators. (a) Rating Officer. The rating officer shall normally be the employee’s immediate supervisor. The rating officer shall be responsible for completing a performance evaluation report at the time prescribed for each employee under his or her supervision. (b) Reviewing Officer. The reviewing officer shall normally be the rating officer’s immediate supervisor or department head. The reviewing officer shall review the performance evaluation report completed by each rating officer under his or her jurisdiction before the report is discussed with the employee. The reviewing officer shall consider the performance evaluations completed by the rating officer in evaluating the rating officer’s performance. (c) Department Heads shall be evaluated by the City Manager. Section 35. Amendment of Section 23.45.040 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.040 –Review of performance reports, is hereby amended as follows: 23.45.040 Review of [P]Performance [R]Reports for Employees in the Classified Service. The rating officer shall discuss the performance evaluation report with the employee in the classified service before the report is made part of the employee’s permanent record. If the rating officer plans to recommend the denial of an in-grade pay increment or recommend an
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Ordinance No. 3018-2018 Page 20 of 26 extraordinary increment, the report must be discussed with the reviewing officer and the City Manager prior to review with the employee. Section 36. Amendment of Section 23.45.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.050 –Unsatisfactory evaluation, is hereby amended as follows: 23.45.050 Unsatisfactory [E]Evaluation for Employees in the Classified Service. Employees in the classified service who receive an overall rating of “Unsatisfactory” or “Needs Improvement” on their annual evaluation shall not be eligible to be advanced a step increment at appropriate annual, biennial or quadrennial anniversary dates. Employees in the classified service who receive two [(2)] consecutive overall ratings of “unsatisfactory” shall be subject to dismissal. Section 37. Amendment of Section 23.45.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.45.060 –Performance evaluation appeal procedure, is hereby amended as follows: 23.45.060 Performance [E]Evaluation [A]Appeal [P]Procedure for Employees in the Classified Service. [EMPLOYEES’ P]Performance evaluation reports for employees in the classified service shall not be subject to the standard grievance procedure. Employees in the classified service shall have the right to appeal their evaluation in accordance with the following procedure: (a) Step 1. If, after a review of his or her performance evaluation report with the rating officer, the employee feels that the report is unfair, he or she may request a meeting with the reviewing officer by checking the appropriate section on the report. The rating officer will then immediately forward the report to the reviewing officer who will arrange to meet with the employee within five (5) working days after receiving the report. The reviewing officer will then forward a decision in writing to the employee within five (5) working days after the date of their meeting. (b) Step 2. In the event that the employee is dissatisfied with the decision of the reviewing officer, he or she may, within five (5) working days of receipt of the decision, appeal his or her performance evaluation report, in writing, to the City Manager. The City Manager shall, within five (5) working days, meet and discuss the report with the employee. The City Manager will, in writing, make a decision within ten (10) working days from the date of their meeting. The decision of the City Manager will be final. Section 38. Amendment of Section 23.50.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.50.010 –Employee classification, is hereby amended as follows: 23.50.010 Employee [C]Classification. City employees shall be classified by Class, Title, and Pay Range as follows: CLASS CODE
CLASS TITLE
RANGE
(a) SUPERVISORY AND PROFESSIONAL 101 102 103 104
City Manager City Attorney City Clerk Finance Director*
NG NG NG 24
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Ordinance No. 3018-2018 Page 21 of 26 CLASS CODE
CLASS TITLE
RANGE
105 106 107 112 117 118 119
Public Works Director* Police Chief* Fire Chief* Airport Manager* City Planner Information Technology (IT) Manager Human Resource Specialist/Assistant to City Manager Library Director* Senior Center Director* Parks and Recreation Director* Human Resources Officer
23 23 22 20 16 18 15
120 121 122 123
18 18 17 16
(b) ADMINISTRATIVE SUPPORT 203 204 205 206 210 211 214 218 219
Administrative Assistant I Accounting Technician I Accounting Technician II Accountant Administrative Assistant II Administrative Assistant III Library Assistant Library Aide Data Entry Clerk
8 10 11 16 9 10 6 2.5 1.1
(c) PUBLIC SAFETY 302 303 304 305 306 307 311 312 313 314 315 316 317
Fire Fighter Police Lieutenant Police Sergeant Police Officer Public Safety Dispatcher Fire Engineer Fire Captain Fire Marshal Communications Supervisor Police Trainee Battalion Chief/Safety Officer Chief Animal Control Officer Animal Control Officer
13 20 18 16 9 15 16 17 12 16/21 17 11 9
(d) PUBLIC WORKS 401 402 403 404 405
Building Official Shop Foreman Street Foreman Sewer Treatment Plant Operator Water and Sewer Operator
15 16 16 13 13
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Ordinance No. 3018-2018 Page 22 of 26 CLASS CODE
CLASS TITLE
RANGE
407 408 409 410 412 413 414 417 418 419 420
Equipment Operator Shop Mechanic Equipment Lead Operator Water and Sewer Foreman Building Maintenance Technician Sewer Treatment Plant Lead Operator Sewer Treatment Plant Foreman Airport Operations Specialist Airport Operations Supervisor Building Maintenance Lead Technician Water and Sewer Lead Operator
11 14 14 16 12 14 16 11 15 13 14
(e) GENERAL SERVICES 504 505 506 507 508 509 510 511 512
Parks, Beautification and Recreation Operator Parks, Beautification and Recreation Laborer Cook Activities/Volunteer Coordinator Meals/Driver Kitchen Assistant Outreach Worker Janitor Driver
9 2.4 2.4 2.4 2.4 2.2 1.1 2.4 1
* Department Head[S] Service 1 For work performed after February 21, 2009, while attending the Alaska Public Safety Academy in Sitka, a police trainee shall be a paid at a Range 2, Step F. Because of a fluctuating and unpredictable training schedule, he or she shall be considered to work twelve (12) hours per day from Monday through Saturday and eleven (11) hours on Sunday, or the actual number of hours worked, whichever is greater. The normal work schedule at the academy shall be five (5) eight (8) hour shifts from Monday to Friday rather than four (4) ten (10) hour shifts as stated in KMC 23.50.050(b)(l). Section 39. Enactment of Section 23.55.015 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.015 –Department Head Service Salaries, is hereby enacted as follows: 23.55.015 – Department Head Service Salaries. Salaries of employees in the Department Head Service shall be set by the City Manager within the range approved by the City Council as approved through the budget process. Section 40. Amendment of Section 23.55.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.020 –Compensation Structure by Grade, is hereby amended as follows: 23.55.020 Compensation Structure by Grade for Employees in the Classified Service. (a) Compensation structure by grade for employees in the classified service is hereby established in accordance with the table that is appended to this title and which may be
111 New Text Underlined; [DELETED TEXT BRACKETED]
Ordinance No. 3018-2018 Page 23 of 26 amended, modified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the code at the end of this title. (b) On completion of the probationary period, each permanent full-time employee in the classified service, except seasonal employees, shall be advanced one [(1)] step. At succeeding anniversary dates, subject to evaluation, employees in the classified service may be advanced a step increment subject to City Manager approval. The time period normally between steps B to C to D to E to F is one [(1)] year. The time normally between Steps F to AA to BB to CC is two [(2)] years. (c) On completion of the probationary period, each permanent part-time employee in the classified service and seasonal employee shall be advanced one [(1)] step. At appropriate biennial or quadrennial anniversary dates thereafter, subject to the employee’s most recent annual evaluation being “Meets Expectations” or better, the employee, including seasonal employees, may be advanced a step increment. The time period normally between steps B to C to D to E to F is two [(2)] years. The time period normally between steps F to AA to BB to CC is four [(4)] years. Section 41. Amendment of Section 23.55.050 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.050 –Hourly Rates, is hereby amended as follows: 23.55.50 Hourly Rates. (a) Hourly rates for employees in the classified service not exempted from minimum wage and overtime provisions of the Fair Labor Standards Act (with various experience, skills, and responsibilities) are hereby established in accordance with the table that is appended to this title and which may be amended, modified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the Code at the end of this title. Section 42. Amendment of Section 23.55.060 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.060 –Stand-by pay, is hereby amended as follows: 23.55.060 Stand-by [P]Pay. (a) Where employees in the classified service are placed on a stand-by status, they shall be entitled to a 5% rate of pay computed against Step A of the pay range of the employee for each hour in stand-by status. (b) To be eligible for stand-by pay, an employee in the classified service must formally be placed on stand-by status, with the approval of the City Manager, and the proper documentation indicating such approval placed in the employee’s personnel records. An employee in stand-by status must be available for call-outs, must be in a location whereby the responsible City personnel can communicate with him or her, and comply with any other requirements of the approved stand-by pay. Section 43. Amendment of Section 23.55.070 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.070 –Call-Out pay, is hereby amended as follows: 23.55.070 Call-out [P]Pay. When employees in the classified service are called out to work outside of normal working hours, they shall be paid a minimum of two [(2)] hours pay at overtime rates. Overtime hours worked immediately prior to, or after, normal working hours will not be considered as a “call-out.”
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Ordinance No. 3018-2018 Page 24 of 26 Section 44. Amendment of Section 23.55.080 of the Kenai Municipal Code: That Kenai Municipal Code, Section 23.55.080 –Longevity pay, is hereby amended as follows: 23.55.080 Longevity [P]Pay for Employees in the Classified Service. All regular employees in the classified service who have received an overall rating of “Meets Expectations” or better in their last performance evaluation and who have been at Step CC for a period of at least two (2) years as of July 31st shall be paid a longevity bonus of two percent (2%) of his or her annual pay rate (i.e., excluding overtime). The longevity pay shall be paid just once a year on the August payroll, except that the longevity bonus in 2008 shall be paid after the effective date of the ordinance codified in this section but prior to the end of the calendar year 2008. Notwithstanding the above, any employee in the classified service who has received a range increase or a noncost of living pay increase within their current pay range within the twelve (12) months prior to July 31st is not eligible for a longevity pay bonus. Section 45. That the operating budget pay schedule as appended in KMC Chapter 23.55 for all employees excluding those engaged in fire protection activities is amended to read as follows: FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED AND DEPARTMENT HEAD SERVICE EMPLOYEES EXCLUDING THOSE ENGAGED IN FIRE PROTECTION ACTIVITIES Range 1 1.1 2 2.1 2.2 2.3 2.4 2.5 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
A Step 10.27 10.78 11.47 12.08 12.76 13.41 15.66 17.74 17.85 18.75 19.69 20.66 21.71 22.80 23.94 25.12 26.38 27.72 29.08 30.55 32.07 33.67 35.35 37.12 38.97 40.93 42.99
B
C
D
E
F
AA
BB
CC
10.53 11.05 11.76 12.38 13.08 13.75 16.05 18.18 18.30 19.22 20.18 21.18 22.25 23.37 24.54 25.75 27.04 28.41 29.81 31.31 32.87 34.51 36.23 38.05 39.94 41.95 44.06
10.78 11.32 12.04 12.68 13.40 14.08 16.44 18.63 18.74 19.69 20.67 21.69 22.80 23.94 25.14 26.38 27.70 29.11 30.53 32.08 33.67 35.35 37.12 38.98 40.92 42.98 45.14
11.04 11.59 12.33 12.99 13.72 14.42 16.83 19.07 19.19 20.16 21.17 22.21 23.34 24.51 25.74 27.00 28.36 29.80 31.26 32.84 34.48 36.20 38.00+ 39.90 41.89 44.00 46.21
11.30 11.86 12.62 13.29 14.04 14.75 17.23 19.51 19.64 20.63 21.66 22.73 23.88 25.08 26.33 27.63 29.02 30.49 31.99 33.61 35.28 37.04 38.89 40.83 42.87 45.02 47.29
11.55 12.13 12.90 13.59 14.36 15.09 17.62 19.96 20.08 21.09 22.15 23.24 24.42 25.65 26.93 28.26 29.68 31.19 32.72 34.37 36.08 37.88 39.77 41.76 43.84 46.05 48.36
11.81 12.40 13.19 13.89 14.67 15.42 18.01 20.40 20.53 21.56 22.64 23.76 24.97 26.22 27.53 28.89 30.34 31.88 33.44 35.13 36.88 38.72 40.65 42.69 44.82 47.07 49.44
12.07 12.67 13.48 14.19 14.99 15.76 18.40 20.84 20.97 22.03 23.14 24.28 25.51 26.79 28.13 29.52 31.00 32.57 34.17 35.90 37.68 39.56 41.54 43.62 45.79 48.09 50.51
12.32 12.94 13.76 14.50 15.31 16.09 18.79 21.29 21.42 22.50 23.63 24.79 26.05 27.36 28.73 30.14 31.66 33.26 34.90 36.66 38.48 40.40 42.42 44.54 46.76 49.12 51.59
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Ordinance No. 3018-2018 Page 25 of 26 22 23 24
45.11 47.38 49.81
46.24 48.56 51.06
47.37 49.75 52.30
48.49 50.93 53.55
49.62 52.12 54.79
50.75 53.30 56.04
51.88 54.49 57.28
53.00 55.67 58.53
54.13 56.86 59.77
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES ENGAGED IN FIRE PROTECTION ACTIVITIES Range A B C D E F AA BB CC Step 13 20.77 21.29 21.81 22.33 22.85 23.37 23.89 24.40 24.92 14 21.82 22.37 22.91 23.46 24.00 24.55 25.09 25.64 26.18 15 22.91 23.48 24.06 24.63 25.20 25.77 26.35 26.92 27.49 16 24.06 24.66 25.26 25.86 26.47 27.07 27.67 28.27 28.87 17 25.26 25.89 26.52 27.15 27.79 28.42 29.05 29.68 30.31 FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE FOR ALL DEPARTMENT HEAD SERVICE EMPLOYEES 18 19 20 21 22 23 24
$77,209 – 101,907 $79,185 – 106,987 $85,134 – 112,387 $89,419 – 118,037 $93,829 – 123,849 $98,550 – 130,096 $103,604 – 136 754
Section 46. Application: The provisions of this Ordinance will only apply to Department Heads who have been hired by the City and completed a probationary period by June 1, 2018. Department Heads who completed their probationary period before June 1, 2018, may individually chose to enter the Department Head Service and have the Ordinance apply to their employment by written notice to the City Manager. Section 47. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 48. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption.
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Ordinance No. 3018-2018 Page 26 of 26 ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2018.
BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk
Introduced: April 18, 2018 Enacted: May 2, 2018 Effective: June 1, 2018
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MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
FROM:
Tim Navarre, Vice Mayor and Council Member Jim Glendening
DATE:
April 11, 2018
SUBJECT:
Ordinance No. 3018-2018 – Amending KMC Title 23 Creating a Department Head Service Class of Employees
______________________________________________________________________ Department Heads report directly to the City Manager and are responsible for the management of their respective departments. Attracting and retaining highly qualified individuals for these positions can be difficult, particularly with current restrictions contained in the Kenai Municipal Code. KMC 23.25.040(b) limits the salary of a newly hired employee to Level D of the City’s Salary Schedule. In cases where a prospective employee is highly qualified or where a lateral move from another agency or business requires a higher salary than is afforded by a Level D salary, the City is unable to attract these individuals effectively. Additionally, the City Manager does not have the ability to adjust salaries for our most critical and highest performing existing employees who might leave the City for similar positions at neighboring agencies or businesses that have the ability to compensate at higher levels. This ordinance addresses both of these concerns by establishing a new class of employee defined as Department Head Service. These employees would be assigned a salary range for their position as opposed to their salaries being dictated by the City’s Salary Schedule. The top end of the salary range for each employee in the Department Head Service would be set at 110% of the top step of the same range in the City’s Salary Schedule for employees in the Classified Service. The City Manager would have the authority to establish the initial salary upon hire anywhere within the respective range for the position. In addition, the City Manager could adjust an existing employee’s salary within the range for that position through the annual budget process based on performance or to maintain competitive salaries for the retention of highly qualified employees. Department Head Service employees would be at-will employees that could be suspended or dismissed without cause subject to review by the City Attorney. However, existing employees
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Page 2 of 2 Ordinance 3018-2018 who would fall within the Department Head Service will be grandfathered in the Classified Service unless the employee chooses to opt into the Department Head Service. Your consideration is appreciated.
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MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
FROM:
Scott Bloom, City Attorney
DATE:
April 12, 2018
SUBJECT: Sectional Analysis of Ordinance No. 3018-2018 ____________________________________________________________________________ This memorandum provides a sectional analysis of the Kenai Municipal Code changes proposed by Ordinance No. 3118-2018. Following the sectional analysis is KMC Title 23 in its entirety with the proposed changes shown. Section 1. Sectional Analysis: 1. 23.05.060 Tenure. Tenure of employees in the classified service [COVERED BY THIS TITLE] shall be subject to good behavior, satisfactory performance of work, necessity for the performance of work, and the availability of funds. This change is to clarify that KMC 23.05.060 does not apply to at-will employees whose tenure might not be subject to satisfactory work performance etc. 2. 23.05.070 Definitions. As used in Title 23, the following terms shall have the meanings indicated: (a) Unclassified Service. The unclassified service shall include all elected officials, City Manager, City Attorney, City Clerk, seasonal and temporary employees. Members of boards, committees, commissions, volunteers, contractors, and consultants are not employees. (b) Classified Service. All paid employees not in the unclassified [SERVICE] or Department Head Service. This amendment is needed to reflect that the classified service does not include the newly created Department Head Service (c) Department Head Service. The Department Head Service shall include employees who are directly responsible to the City Manager for the administration of one or more departments. This is the new definition of Department Head Service. [(C)](d) Full-Time. Employees scheduled to work forty (40) hours per week (except certain Fire Department employees who work an average of fifty-six (56) hours per week) are considered full time.
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Page 2 of 57 Ordinance No. 3018-2018 [(D)](e) Part-Time. Employees scheduled to work less than forty (40) hours per week. [(E)](f) Regular. Employees who have completed the probationary period. They may be assigned to work a full-time or part-time schedule. [(F)](g) Seasonal. Employees who perform seasonal work for a pre-established period of not more than six (6) months during a twelve (12)-month period. Seasonal Employees may be assigned a full time or part-time schedule and are eligible for Public Employee Retirement Benefits but are ineligible for other benefits and holiday pay. Seasonal Employees who have completed the probationary period may return to the seasonal position each season subject to performance evaluations, general conduct and discipline, personnel rules and policies of the City, layoff, reorganization and other business needs of the City. [(G)](h) Temporary. Employees who are hired for a pre-established period, usually during peak workloads or for vacation relief and for not more than six (6) months. They may be assigned to work a full-time or part-time schedule. They are ineligible for benefits and holiday pay. [(H)](i) Probationary Period. Normally six (6) months, except for Police, Communications and Fire, which is normally twelve (12) months. This period can be extended up to, but no longer than, twelve (12) months and eighteen (18) months, respectively. [(I)](j) Department. The smallest functional budgetary unit of the City government established by the City Council. [(J) DEPARTMENT HEAD. A CLASSIFIED EMPLOYEE DIRECTLY RESPONSIBLE TO THE CITY MANAGER FOR THE ADMINISTRATION OF ONE (1) OR MORE DEPARTMENTS.] This definition is no longer needed based on the new definition of Department Head Service above, and later descriptions. (k) Promotion. An advancement of an employee from one (1) job classification to a higher job classification within the same department. (l) Transfer. The movement of an employee from one (1) department to another department, regardless of job classification. (m) [GENERAL GOVERNMENT EMPLOYEE. A CITY EMPLOYEE OTHER THAN A PUBLIC SAFETY EMPLOYEE. “General government employee” is not a term used or needed in the remainder of the personnel Code, so it is removed. (N)] Public Safety Employee. A person employed in the Police, Fire, or Communications Department. [(O)](n) Supervisor. Any person who is responsible to a higher divisional or department level of authority and who directs the work of others. [(P)](o) City Manager. A person directly responsible to the City Council who is authorized and directed to exercise the powers and fulfill the duties as specified in the Charter and Municipal Code of the City of Kenai. [(Q)](p) City Attorney. A person directly responsible to the City Council. He or she is the chief legal advisor to the Council and all other officers, departments and agencies of the City government in matters relating to their official powers and duties. [(R)](q) City Clerk. An officer of the City, appointed by the Council, for an indefinite period of time and shall serve as clerical officer of the Council. [(S)](r) Grievance. An employee’s oral or written expression of dissatisfaction with some aspect of his or her employment, a management decision affecting him or her, or an alleged violation of his or her rights for the purpose of attempting to gain an adjustment of said cause of dissatisfaction.
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Page 3 of 57 Ordinance No. 3018-2018
3. 23.10.010 General. All offices and positions of the City are divided into [C]Classified [S]Service, [AND U]Unclassified [S]Service and Department Head Service. [ALL THE PROVISIONS OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE CLASSIFIED SERVICE. THE PROVISIONS OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE EXEMPT SERVICE AS INDICATED IN KMC 23.10.020.] This amendment adds the Department Head Service into the Personnel Code and removes the remainder of the language as the provisions of the Chapter that apply to each class of employees is specifically called out and the “Exempt Service” is not a defined service. 4. 23.10.020 Unclassified [S]Service. The unclassified service shall include the following: (a) Mayor and Council Members. Only the following provisions shall apply: KMC 23.30.110(b) and (d) [AND 23.40.080 (AS APPLICABLE)], 23.40.100 and 23.40.110. KMC 23.40.080 refers to PERS which Council members do not participate in through the City, so it is removed. (b) Members of Boards or Commissions. Only the following provisions shall apply to such officials: KMC 23.30.110(b) and (d). Only the following provisions shall apply to Planning and Zoning Commissioners compensated pursuant to KMC 14.05.010: KMC 23.40.100 and 23.40.110. (c) The following Council-appointed administrative offices: (1) City Manager. The City Manager shall perform all those duties mandated for his or her position by the provisions of this chapter and shall be bound or receive the benefits of the following sections insofar as they are applicable: KMC 23.25.050 and 23.25.060(d); KMC 23.30.110(b), (C) and (d); and KMC 23.40.020, 23.40.030, 23.40.040, 23.40.060, 23.40.070, 23.40.095, 23.40.100, 23.40.110, 23.40.120, and 23.40.130. The Council shall by resolution determine whether KMC 23.40.080 applies to the position of City Manager. (2) City Clerk. Only those provisions specifically enumerated under subsection (1) above shall apply to the City Clerk. (3) City Attorney. Only those provisions specifically enumerated under subsection (1) above shall apply to the City Attorney. (d) Volunteer Personnel and Personnel Appointed to Serve Without Pay. None of the provisions of this chapter shall apply to such personnel. (e) Consultants and Counsel Rendering Temporary Professional Services. Such services shall be by contract and none of the provisions of this chapter shall apply. (f) Positions Involving Seasonal or Temporary Work. All of the provisions of this chapter shall apply to such positions but only insofar as they are applicable. [(G) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE EXEMPT SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION: CITY MANAGER CITY ATTORNEY CITY CLERK] Subsection (G) is deleted because it stated elsewhere, (employment contract and position descriptions) and does not need to be in code.
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Page 4 of 57 Ordinance No. 3018-2018
5. 23.10.030 Classified [S]Service. The [C]Classified [S]Service shall include all [OTHER POSITIONS IN THE CITY SERVICE] paid employees not in the Unclassified or Department Head Service. This change is needed to recognize the new separate Department Head Service in this section. (a) [ALL P]Positions in the Classified Service are established by the annual budget or [COMPENSATION GUIDE] Classification Plan. [ADOPTED BY RESOLUTION OF THE CITY COUNCIL. ANY NEW POSITION CREATED AT THE START OR DURING THE BUDGET YEAR AND EITHER RATIFIED OR AFFIRMED BY THE CITY COUNCIL.] The changes are to reflect that the City uses a Classification Plan, not a Compensation Guide and removes the incomplete last sentence that does not provide meaningful information or guidance. [(B) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION: AIRPORT MANAGER FINANCE DIRECTOR FIRE CHIEF LIBRARY DIRECTOR PARKS AND RECREATION DIRECTOR POLICE CHIEF POLICE LIEUTENANT PUBLIC WORKS DIRECTOR PUBLIC WORKS MANAGER SENIOR CENTER DIRECTOR.] This section is deleted because most of the positions are no longer in the classified service and designation of FLSA exemptions are more appropriately provided elsewhere, such as in position descriptions. 6. 23.10.035 Department Head Service (a) Positions in the Department Head Service are established by the annual budget or Classification Plan. (b) The Department Head Service shall consist of full-time paid employees who are the heads of departments. Department Heads serve at will. The City Manager may suspend or dismiss such employees without cause subject to review by the City Attorney. This section describes the new Department Head Service and provides that positions in the Department Head service are at-will employees who may be dismissed without cause. Suspensions or dismissals of Department Heads will be reviewed by the City attorney to review whether the suspension or dismissal violates applicable laws. 7. 23.20.010 Initial [C]Classification. The City Manager shall make analysis of the duties and responsibilities of all positions in the [C]Classified [S]Service and Department Head Service and shall recommend to the Council a job classification plan. Each position in the [C]Classified [S]Service and Department Head Service shall be assigned to a job class on the basis of the kind and level of its duties and responsibilities. [, TO THE END THAT] All positions in the same class shall be sufficiently
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Page 5 of 57 Ordinance No. 3018-2018 alike to make use of a single descriptive title, the same qualification requirements, the same test of competence, and the same pay scale. A job class may contain one [(1)] position or more than one [(1)] position. The Council shall adopt a classification plan by ordinance. These amendments add the Department Head Service into the classification scheme. 8. 23.25.020 Pay [P]Plan and [A]Adoption. The City Manager shall submit the pay plan and rules for its administration to the City Council for adoption. Before the pay plan and the rules for its administration are adopted by the Council, the City Manager shall assign each job class to one [(1)] of the pay ranges provided in the pay plan. A salary schedule for the Department Heard Service shall be part of the pay plan. The Council shall adopt a plan and rules by ordinance. This change reflects that Department Heads will be paid within a salary range that is determined by the pay plan established by Council. 9. 23.25.030 Pay [P]Plan [A]Amendment. The pay plan may be amended by the City Council from time to time as circumstances require, either by adjustment of rates or by reassignment of job classes to different pay ranges or salary schedule. All modifications shall apply uniformly to all positions in the same class. This change is to ensure the salary schedule for Department Heads is included in future pay plan amendments. 10. 23.25.040 Appointee [C]Compensation –Classified Service. (a) Upon initial appointment to a position, the employees in the Classified Service shall receive the minimum compensation for the class to which the position is allocated, except as provided below. (b) [HOWEVER, I]In [THE] cases when unusual difficulty in filling the vacancy is experienced, or when the appointee is exceptionally qualified, the City Manager may cause the appointment for employees in the Classified Service to be made at a compensation level above the minimum, but not more than level D for the same class. These changes clarify that new employees in the Classified Service may be brought in at a Step D, but it does not apply to Department Head employees who can be brought in or compensated anywhere within the designated salary range for the position as provided below. 11. 23.25.045 Department Heads (a) Upon initial appointment to a position, employees in the Department Head Service shall receive the minimum compensation for the class to which the position is allocated, except as provided below. (b) In cases when unusual difficulty in filling the vacancy is experienced, or when the appointee is exceptionally qualified, the City Manager may cause the appointment for employees in the Department Head Service to be made at a compensation level above the minimum, but not more than the maximum for the same class. This new section provides that Department Heads can be offered a salary anywhere within the appropriate salary range for the position, as needed.
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Page 6 of 57 Ordinance No. 3018-2018 12. 23.25.060 Overtime. (a) Department heads and supervisors shall assign to each employee regular work duties and responsibilities which can normally be accomplished within the established work day and work week. (b) When employees are required to work overtime, department heads shall authorize compensatory time off or overtime pay. Determination to grant overtime pay or compensatory time off shall rest with the department head, City Manager, or acting department heads, who shall give due consideration to desires of the employee, to budgetary controls, and to the provisions of subsection (c) of this section. Rates for overtime (in addition to regular compensation based upon compensation schedules) shall be based upon the employee’s regular rate of pay as follows: (1) [GENERAL GOVERNMENT E]Employees in the Classified Service (excluding public safety, sewer treatment plant, and temporary employees): This change is consistent with the removal of the definition of “General Government Employees” above or in the definitions or in KMC 23.05.070 and clarifies that overtime only applies to classified employees. Regular Pay Times Regular Work Saturday Sunday Holiday (2)
1 1/2 1 1/2 2 2 1/2
Temporary employees: Regular Pay Times Regular Work Saturday Sunday Holiday
1 1/2 1 1/2 1 1/2 1 1/2
(3) [GENERAL GOVERNMENT] Employees in the Classified Service and temporary employees other than employees engaged in fire protection activities must be in a paid status for forty (40) hours in the work week before overtime compensation will be paid. This change is similar to the above change and clarifies that it does not apply to employees engaged in fire protection activities (included captains, engineers) who work a schedule different from all other City employees. (4)
Police, communications and sewer treatment plant employees: Regular Pay Times Regular Work Day Saturday Sunday
(5)
1 1/2 1 1/2 2
Employees engaged in fire protection activities:
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Page 7 of 57 Ordinance No. 3018-2018
Regular Pay Times Regular Work Saturday Sunday
1 1/2 1 1/2 1 1/2
(6) Police, communications, employees engaged in fire protection activities, and sewer treatment plant employees must be in a paid status for their normal work week, as follows, before overtime compensation will be paid: Police Employees engaged in fire protection activities Communications Sewer treatment plant
40 hours As required by the Fair Labor Standards Act 40 hours 40 hours
However, overtime may be paid as required by the Fair Labor Standards Act, recognizing that an employee’s salary is compensation for the normal shifts specified in this Title. (c) Compensatory time accumulation shall not exceed the total number of hours equal to one (1) regular shift of the employee. Once this maximum accumulation has been reached, all overtime compensation earned by the employee shall automatically be paid in cash. (d) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND EXEMPT SERVICES CONSIDERED TO BE] Positions exempt from the provisions of the Fair Labor Standards Act shall not be bound to a work week of any set number of hours. The individuals in these positions are expected to work as many hours as the responsibilities of their positions require. As a result, individuals in these positions shall not be paid overtime or allowed to accrue compensatory time. This amendment is consistent with prior amendments. All FLSA exempt positions will be designated in position descriptions and or contract after administrative review. FLSA exemptions are designated by Federal Law based on job duties and other position related components, and are not determined by City Code. 13. 23.25.080 Promotion. When an employee in the Classified Service is promoted from one class to another having a higher pay range, he or she shall receive an increase of not less than one (1) pay step from his or her former position. This amendment clarifies that it does not apply to the Department Head Service because Department Heads do not have fixed steps, as proposed. 14. 23.30.010 General. (a) Recruitment and appointing authority shall be vested in the City Manager. (b) Applicants must be United States citizens or eligible for employment under existing State and Federal laws and regulations in order to be employed by the City. (c) Applicants for positions in the [CITY] Classified and Department Head [S]Service need not reside within the City Limits. Departmental rules shall establish response times required by that department. This change recognizes the Department Head Service, and that Department Heads are not required to reside in the City. (d) Minimum age for City employment shall be in accordance with State of Alaska laws.
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Page 8 of 57 Ordinance No. 3018-2018 (e) Employment of qualified individuals with a disability shall be encouraged. (f) Employment rights for veterans shall be in accordance with applicable State and Federal laws. (g) Applicants must possess an appropriate valid Alaska State driver’s license, should employment require operation of a motor vehicle. (h) Applicants must complete a City application form or submit a resume of sufficient detail to equate to a City form. 15. 23.30.030 Probationary Period for Employees in the Classified Service. (a) All original appointments for employees in the Classified Service including those that result from transfers shall be tentative and subject to a probationary period of not less than six (6) months consecutive service, except for police, fire, and communications, which shall be normally twelve (12) months, subject to meeting criteria for certification which may be accomplished following six (6) months of service and except for seasonal employees whose probationary period is established by the term of the first season of employment. Promotional appointment probationary period shall, for all [PERSONNEL]employees in the Classified Service, be not less than six (6) months. (b) In cases where the responsibilities of a position in the Classified Service are such that a longer period is necessary to demonstrate an employee’s qualifications, the probationary period may be extended; however, no probationary period shall be extended beyond twelve (12) months, or eighteen (18) months for police, fire, and communications, or one additional season for seasonal employees. The employee shall be notified in writing of any extension and the reasons therefor. (c) During the first six (6) months of original probationary period, a new employee (including police, fire, and communications) shall not be eligible for annual leave benefits, but he or she shall earn annual leave credit from the first day of employment and may take leave for sickness during that period to the maximum of the amount of leave accrued. (d) Upon completion of the probationary period, employees in the Classified Service shall be considered as having satisfactorily demonstrated qualifications for the position, shall gain regular status, one step in pay raise, and shall be so informed through his or her supervisor. The employee’s anniversary date shall be the first of the month in which the employee’s original probation ends. Employees who have gained regular status at the effective date of the ordinance codified in this section shall have their anniversary dates changed to the first of the month in which the employee’s present anniversary date falls. (e) During the probationary period, a new employee [HIRE] hired in the Classified Service may be terminated at any time without advance notice, without cause, and without appeal. (f) In the case of promotional appointments, the promoted employee may be demoted at any time during the probationary period without appeal, provided that the probationary employee be reinstated in the class designation from which he or she was. Changes in this section reflect that probation only applies to classified employees. Classified employees on probation are essentially at-will employees who may be discharged for no reason or any reason. Department Head employees are always at will and there is no reason for a probationary period for Department Heads. 16. [23.30.040 EVALUATION. (A) EVALUATIONS SHALL BE REQUIRED ANNUALLY OF ALL CLASSIFIED EMPLOYEES AND AFTER EACH SEASON FOR SEASONAL EMPLOYEES. SUPERVISORS SHALL INDICATE THEREON HIS OR HER RECOMMENDATION AS TO
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Page 9 of 57 Ordinance No. 3018-2018 WHETHER OR NOT THE EMPLOYEE SHOULD BE AWARDED A PAY RAISE IN ACCORDANCE WITH THE CITY PAY PLAN, KMC 23.55. (B) APPROVAL OF INCREMENT PAY RAISES ARE VESTED IN THE CITY MANAGER.] This entire section is removed as evaluations are discussed in greater detail specific to each employment class later in Chapter 23.45- Performance Evaluation. 17. 23.30.050 Business [H]Hours and [H]Hours of [W]Work. (a) The hours during which City offices and departments shall normally be open for business shall be 8:00 a.m. to 5:00 p.m., [PUBLIC WORKS DEPARTMENTS SHALL BE 8:00 A.M. TO 4:30 P.M., EXCEPT SATURDAYS AND SUNDAYS, HOLIDAYS, AND FURTHER EXCEPTING] Police and Fire [WHICH] shall be open for business twenty-four (24) hours a day. The Library, Senior Center, Public Works, and Animal Control operations shall be open for business as authorized by the City Manager. This is a house keeping change to reflect current practice. (b) Public Safety employees, not including administrators, normal work week is: (1) Police and Communications—four (4) shifts of ten (10) hours per week, two thousand eighty (2,080) hours annually. When working this shift, first and third days off shall be treated as Saturdays and the middle day off (the second day) shall be treated as a Sunday for purposes of paying overtime; (2) Employees performing fire protection activities as defined by the Fair Labor Standards Act (FLSA) may work any FLSA approved “7(k) Work Period” approved by the City Manager. (c) Sewer Treatment Plant employees work a forty (40) hour week on a shift basis that allows at least one (1) employee to be at the plant on a given day. When scheduled days off are two (2) consecutive calendar days, the first day off shall be treated as a Saturday and the second day off shall be treated as a Sunday for purposes of paying overtime. (d) All other employees’ normal work week is forty (40) hours, two thousand eighty (2,080) hours annually. Standard work day is midnight to midnight succeeding. Standard work week is midnight Sunday to midnight Sunday succeeding. Operating hours may be adjusted on timely notice. [(E) SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND UNCLASSIFIED SERVICES CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT SHALL NOT BE BOUND TO A WORK WEEK OF ANY SET NUMBER OF HOURS. THE INDIVIDUALS IN THESE POSITIONS ARE EXPECTED TO WORK AS MANY HOURS AS THE RESPONSIBILITIES OF THEIR POSITIONS REQUIRE. THESE INDIVIDUALS ARE EXPECTED, HOWEVER, TO SUBSTANTIALLY CONFORM TO THE NORMAL WORK WEEK AS DESCRIBED IN SUBSECTION (D).] This subsection is deleted as it is not consistent with the newly created Department Head Service and is not needed. 18. 23.30.060 Attendance. (a) Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays, and leaves of absence. (b) An employee shall not be absent [HIM OR HERSELF] from work for any reason without prior approval from his or her supervisor. When prior approval is not obtained, an employee, who for any reason fails to report to work, shall make a sincere effort to notify his or her supervisor of his or her reason for being absent. If the absence continues beyond the first
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Page 10 of 57 Ordinance No. 3018-2018 day, the employee shall notify the supervisor on a daily basis unless other arrangements have been made with the supervisor. This is a housekeeping change. (c) Departments shall maintain records of employees’ attendance. (d) Any unauthorized absence of any employee from duty shall be deemed to be an absence without pay and may be cause for disciplinary action. 19. 23.30.070 Personnel [R]Records. (a) The City Manager shall cause a service or personnel record to be maintained for each employee in the Classified and Department Head service of the City of Kenai. This change is to clarify that it applies to both the classified and Department Head Service. (b) The personnel record shall show the employee’s name, title of position held, the department to which assigned, compensation, change in employment status, training received, and such other information as may be considered pertinent. (c) A personnel action form shall be used as the single document to initiate and update personnel records. (d) Employee personnel records shall be considered confidential and shall be accessible only to the following: (1) The employee concerned; (2) Selected City officials authorized by the City Manager. (e) Department personnel files should not be developed or maintained, except as working records; i.e., accumulating data for evaluation reports. Departmental personnel records are therefore unofficial and have no standing. 20. 23.30.110 Travel [E]Expense. When employees are required to travel outside the City on City business, reimbursement, subject to advances received, for expenditures incurred shall be determined as follows: (a) Prior to traveling outside the City, the employee shall obtain permission for the trip and the mode of travel from the department head. (b) Travel on official business outside the City by one (1) individual shall be via public carrier or City-owned vehicle whenever practical. If, for extenuating circumstances, the employee is authorized to use a private vehicle, total mileage shall be paid at the standard IRS mileage rate. This rate includes all travel, insurance and fuel. (c) [THOSE]Classified and Department Head Service employees who [HABITUALLY]often use their privately-owned vehicle for City business shall be reimbursed thirty dollars ($30.00) per month, subject to authorization by the City Manager. This amendment clarifies that Classified and Department Head Service employees may receive a vehicle allowance. (d) The authorized per diem rates are fifty dollars ($50.00) per full twenty-four (24) hour day, plus lodging expenses. Part days will be reimbursed for actual costs incurred, up to fifty dollars ($50.00) per day. Claims for lodging expenses will be supported by receipts. 21. 23.30.120 Moving [E]Expense for [N]New [E]Employees. (a) [WHENEVER A PROFESSIONAL OR TECHNICALLY TRAINED PERSON CHANGES HIS OR HER PLACE OF RESIDENCE MORE THAN FIFTY (50) MILES, FOR THE PURPOSE OF ACCEPTING EMPLOYMENT WITH THE CITY, SUCH A PERSON MAY BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES UNDER THE FOLLOWING CONDITIONS:] At the City Manager’s discretion moving expenses for new employees may be reimbursed for actual and necessary expenses under the following conditions:
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Page 11 of 57 Ordinance No. 3018-2018 (1) The employee must be appointed to a position or a class for which the City Manager certifies that such expenditure is necessary to recruit qualified employees and funded by the Council. (2) The maximum reimbursable shall be subject to negotiation at the time of an offer of acceptance of appointment. [(3) TO BE ELIGIBLE FOR THE TOTAL ALLOWANCE FOR AN EMPLOYEE WHO IS THE HEAD OF A HOUSEHOLD, HIS OR HER DEPENDENTS MUST ACCOMPANY HIM OR HER OR JOIN HIM OR HER WITHIN ONE (1) YEAR OF THE DATE OF HIS OR HER APPOINTMENT.] [4](3) New employees who are assisted with their moving expenses shall be required to sign a Transportation Agreement prior to employment. The Transportation Agreement stipulates that the employee will reimburse the City for all or part of such expenditures in the event of voluntarily leaving City service within a period of two [(2)] years according to the following schedule: 100%—Less than six (6) months. 75%—Six (6) months, but less than twelve (12) months. 50%—Twelve (12) months, but less than eighteen (18) months. 25%—Eighteen (18) months, but less than twenty-four (24) months. 0%—Two (2) years and over. (b) New employees may not be given an advance against moving expenses without prior written approval of the City Manager. The changes to this section covering moving expenses remove certain limitations, such as requiring dependents to move as well, and a specific distance requirement, providing greater flexibility in recruitment to the City Manager. 22. 23.30.140 Relatives in [C]City [S]Service. (a) Two (2) members of an immediate family (spouse, children, brother, sister, in-laws or parents) shall not be employed under the same immediate supervisor. Neither shall two (2) members of an immediate family be employed at the same time regardless of the administrative department, if such employment will result in an employee supervising a member of his or her immediate family. This section shall not be construed to prohibit employment by the City of relatives of City Council members. (b) The provisions of this section shall apply to promotions, demotions, transfers, reinstatements, and new appointments. [(C) COHABITATION BY ADULTS OF THE OPPOSITE SEX PRESUMES A FAMILY RELATIONSHIP AND SHALL BE CONSTRUED AS SUCH.] Changes to this section of code are primarily housekeeping changes modernizing the code. The City should not be making presumptions about familial relationships in this case. 23. 23.35.020 Causes for [W]Warning, [S]Suspension, or [D]Dismissal. (a) When an employee[’s] in the Classified Service demonstrates conduct that falls below desirable standards, he or she may be subject to disciplinary action. This change clarifies causes for discipline do not apply to Department Head employees that may be suspended or terminated at will. (b) General reasons for which an employee may be disciplined include:
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Page 12 of 57 Ordinance No. 3018-2018 (1) Drinking intoxicating beverages on the job or arriving on the job under the influence of intoxicating beverages. (2) Use, consumption, or possession of marijuana (including every compound, manufacture, derivative, mixture, or preparation of the plant, its seeds or its resin, including marijuana concentrate), on the job or arriving on the job impaired by the same, unless the employee has a medical prescription for marijuana from a licensed medical practitioner as a part of a medical treatment and can perform work unimpaired. (3) Illegal use, consumption or possession of any controlled or illegal substance on the job or arriving on the job impaired by the same. (4) Ingestion, of any prescription or over the counter medication in amounts beyond the prescribed or recommended dosage on the job, or arriving on the job impaired by the same. Employees shall notify their immediate supervisor when required to use prescription medicine that they have been informed has the potential to impair job performance. (5) Violation of a lawful duty. (6) Insubordination. (7) Breach of discipline. (8) Being absent from work without first notifying and securing permission from the employee’s supervisors. (9) Being habitually absent or tardy for any reason. (10) Misconduct. (11) Conviction of a felony or a misdemeanor involving moral turpitude. (12) Using religious, political, or fraternal influence. (13) Accepting fees, gifts, or other valuable things in the return for performance of the employee’s official duties for the City. (14) Inability to perform the assigned job. (15) Political activity as restricted by the Charter. (16) Failure to follow the City’s Drug, Alcohol, and Marijuana policy as set forth in the City of Kenai Employee Handbook. (17) Knowingly or negligently failing to follow Federal and State occupational safety and health regulations and City law and policy regarding the same. 24. 23.35.030 Forms of [D]Disciplinary [A]Action. (a) Disciplinary action for employees in the classified service ranges from oral or written reprimands to suspension, demotion, and finally dismissal from the City service, and depends on the severity of the offense as well as the number and the frequency of previous acts of misconduct. (b) It shall be the duty of all City employees to comply with and to assist in carrying into effect the provisions of the City’s personnel rules and regulations. No employee in the classified service shall be disciplined except for violation of established rules and regulations, and such discipline shall be in accordance with procedures established by the personnel rules and regulations. (c) Every department head shall discuss improper or inadequate performance with the employee in order to correct the deficiencies and to avoid the need to exercise disciplinary action. Where appropriate, disciplinary action shall be of increasing severity. (d) A written notice shall be given each employee in the classified service for each written disciplinary action stating the reasons for the disciplinary action and the date it shall take
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Page 13 of 57 Ordinance No. 3018-2018 effect. The notice shall be given to the employee at the time such action is taken. A copy of the notice signed by the employee shall be placed in the employee’s personnel file and shall serve as prima facie evidence of delivery. (e) All regular employees in the classified service shall have the right to appeal disciplinary action taken against them within five (5) working days after receipt of notice by employee of the disciplinary action. Appeals shall be made as grievances in accordance with the provisions of KMC 23.35.040 except that appeals from suspension, demotion, or dismissal shall be made directly to a Personnel Board selected from the Arbitration Panel provided in KMC 23.35.032 by filing such appeal in writing with the City Clerk, setting forth the background, the disciplinary action, and the reasons why the disciplinary action is felt to be unjust. Changes in this section are to clarify that it only applies to classified employees. 25. 23.35.032 Arbitration [P]Panel. (a) There is hereby established an Arbitration Panel consisting of twelve (12) members who shall be chosen by the City Council from nominees made by City employees and by members of the City Council. (b) A member of the Arbitration Panel must be a resident of the City of Kenai and must not hold any other office or position in the government of the City of Kenai. (c) Members of the panel shall serve for indefinite terms until termination by the Council, resignation by the member, death, move from the City of Kenai, election, or appointment as an officer or employee of the City of Kenai, or incapacity of the member. (d) By adoption of the ordinance codified in this chapter, the city hereby waives any claim or cause of action it might have against any member of the Arbitration Panel based on his or her service thereon or on a Personnel Board. Any employee in the classified service, by filing an appeal under the provisions of this chapter, likewise waives any claim or cause of action such employee might have against any member of the Arbitration Panel based on his or her service thereon or on a Personnel Board, and if requested such employee will execute and file a formal waiver at time of filing appeal. This amendment clarifies that this section only applies to classified employees. 26. 23.35.034 Procedures on [A]Appeal. (a) Within five (5) working days after the filing of a written appeal with the City Clerk, the City Manager or the designee of the City Manager shall file with the City Clerk an answer in writing to the appeal setting forth any facts which might be in dispute in the appeal, and setting forth the reasons why the actions are believed to be justified and the City Manager or his or her designee shall serve a copy of the answer on the employee in person or by ordinary mail to employee’s home address. (b) Promptly after the appeal is filed, the City Clerk shall deliver a copy of the appeal to the City Manager. (c) The members of the Arbitration Panel shall be listed in alphabetical order, and will be called in rotation. Any member passed over because of illness or absence, or disqualified by an appealing employee in the classified service or the administration, shall be treated as though he or she has served on the Personnel Board and will not be called again until his or her name comes up in the normal rotation. As soon as an appeal is filed with the City Clerk, the City Clerk will make contact and determine the next five (5) members of the panel due and available for service during the following three (3) weeks, and shall notify the appealing employee of the five (5) members due for service. The appealing employee will advise the
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Page 14 of 57 Ordinance No. 3018-2018 City Clerk within two (2) working days which member the employee wishes deleted from the list, and the City Clerk will then notify the City Manager or his or her designee of the four (4) remaining members due for service. The City Manager or his or her designee will advise the Clerk within one (1) working day of the name of the member the administration wishes to delete from the list. Thereafter, the Clerk will notify the two (2) members of their disqualification and the other three (3) members as to being chosen for service and will determine a date, time, and place when all three members may assemble for hearing, and will then notify the appealing employee in the classified service and the City Manager or designee of such date, time, and place of hearing. (d) At the time of hearing, the employee in the classified service shall present any written evidence, oral testimony, or witnesses that he or she desires, and thereafter the City Manager or designee shall present evidence, oral testimony, or witnesses as he or she deems fit, following which the parties may continue to present rebuttal testimony alternately until neither side has anything further to present. (e) After completion of presentation of testimony, the appealing employee in the classified service may make any statement he or she desires by way of argument, which may be answered by the City Manager or designee, and the appealing employee shall then have a final closing argument if he or she so desires. (f) If any member of the Personnel Board feels it necessary or desirable, he or she may call additional witnesses or call for presentation of additional testimony, adjourning the hearing to a future time for such presentation if necessary. (g) After presentation of all evidence and arguments, the Personnel Board shall go into executive session to make a determination of the appeal, and the Personnel Board shall make written findings of fact and conclusions as to the justness of the disciplinary action. (h) There shall be no formal restrictions on the kind of or form of evidence presented so long as it is pertinent to the appeal and is not unduly repetitive, but the Personnel Board by majority vote may limit repetitive evidence and may restrict evidence to matters pertinent to the hearing and to evidence which they would find credible. (i) The Personnel Board has power to uphold the disciplinary action, to set aside the disciplinary action completely restoring the appealing employee in the classified service to his or her former position and to any and all pay which may have been lost because of the disciplinary action, or if the Personnel Board feels it necessary in the interest of justice that some disciplinary action be taken but that the particular disciplinary action was too extreme, it shall determine what the proper disciplinary action should be. (j) The decision of the Personnel Board may be made by a majority of the Board and shall be final and binding on the employee and on the City. (k) Copies of the appeal, the answer to the appeal, and the written decision of the Personnel Board shall become a part of the personnel file of the appealing employee. Amendments to this section provide that it only applies to Classified Employee’s. 27. 23.35.040 Grievance [P]Procedure. (a) [THE]For employees in the classified service, the City shall promptly consider and equitably adjust employee grievances relating to employment conditions and relationships. Furthermore, the City desires to adjust the causes of grievances informally, both supervisors and non-supervisory employees in the classified service are expected to resolve problems as they arise.
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Page 15 of 57 Ordinance No. 3018-2018 (b) The following steps shall be followed in submitting and processing a grievance for employees in the classified service: (1) Step 1—The aggrieved employee in the classified service or group of employees in the classified service shall orally present the grievance to the immediate supervisor within five (5) working days of the occurrence, not including the date of presentation. (2) Step 2—If the grievance is not settled in Step 1, it shall be prepared in detail, shall be reduced to writing, shall be dated, shall be signed by the aggrieved employee in the classified service or group of employees in the classified service, and shall be presented to the department head within five (5) working days after the supervisor’s oral reply is given, not including the day that the answer is given. (3) Step 3—If the grievance is not settled in Step 2, the written grievance shall be presented along with all pertinent correspondence, records, and information accumulated to date to the City Manager within seven (7) working days after the department head’s response is given, not including the day that the response is given. The City Manager shall meet with the aggrieved employee or group of employees, the immediate supervisor and the department head. The City Manager shall reply to the grievance in writing within seven (7) working days of the date of presentation of the written grievance. The decision of the City Manager shall be final and binding on the employee or group of employees. (c) If the grievance procedures are not initiated within the time limits established by this section, the grievance shall be considered not to have existed. (d) Any grievance not taken to the next step of the grievance procedure shall be considered settled on the basis of the last reply made and received in accordance with the provisions of this section. (e) If the City fails to meet or answer any grievance within the time limits prescribed for such action by this section, such grievance shall automatically advance to the next step. If the City fails to meet or answer any grievance on the last step of the grievance procedure within the time limits prescribed for such action by this section, it shall be deemed that the City has considered the grievance to be in favor of the grievant and shall resolve the matter accordingly. (f) The time limits prescribed in this section for the initiation and completion of the steps of the grievance procedure may be extended by mutual consent of the parties so involved. Likewise, any step in the grievance procedure may be eliminated by mutual consent. Mutual consent shall be indicated in writing and shall be signed by all parties involved. No employee shall be disciplined or discriminated against in any way because of the employee’s proper use of the grievance procedure. Changes to this section clarify that grievance procedures are only for Classified Employees. 28. 23.40.010 General. (a) All non-temporary, full-time,[AND] non-temporary part-time (fifteen (15) hours and over per week) classified and Department Head Service employees are entitled to the following benefits, except for medical and hospital insurance which shall be available to non-temporary employees working no less than twenty-five (25) hours per week, as specified in this article. (b) An employee hired under the State of Alaska’s Mature Alaskans Seeking Skills Training (MASST) program shall receive only Social Security, Medicare (KMC 23.40.130), Workers Compensation (KMC 23.40.110) and family leave (KMC 23.40.130) benefits. The other benefits in KMC 23.40 shall not apply to persons hired under the MASST program. The
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Page 16 of 57 Ordinance No. 3018-2018 hourly wage paid a MASST employee shall be as set by the State of Alaska, but not less than minimum wage. (c) Seasonal employees are eligible to participate in the State Public Employees’ Retirement System. The Amendment to this section provides that Department Head Service employees get the same relevant benefits as classified employees. 29. 23.40.030 Annual [L]Leave. (a) Annual leave is a combined vacation and sick leave. (b) Accrual rate: (1) Full-time [CLASSIFIED] employees except certain Fire Department employees: This change is to include Department Head Service employees. 7.3846 hours bi-weekly—first two (2) years of service. 8.3077 hours bi-weekly—three (3) through five (5) years of service. 9.2308 hours bi-weekly—six (6) through ten (10) years of service. 10.1538 hours bi-weekly—more than ten (10) years of service. (2) Fire (7(k) work period): 10.3385 hours bi-weekly—first two (2) years of service. 11.6308 hours bi-weekly—three (3) through five (5) years of service. 12.9231 hours bi-weekly—six (6) through ten (10) years of service. 14.2154 hours bi-weekly—more than ten (10) years of service. (c) Annual leave is charged on an hour-for-hour basis; i.e., normal work day of eight (8) hours would be charged at eight (8) hours annual leave; twelve (12) hour work day, twelve (12) hours annual leave; ten (10) hour work day, ten (10) hours annual leave; twenty-four (24) hour work day, twenty-four (24) hours annual leave. (d) Leave continues to accrue during the period of time an employee is on paid leave except during periods of terminal leave (leave time after which the employee does not intend to return to work). Leave does not accrue during periods of leave without pay. (e) Accrued and unused leave may be carried over from one (1) year to the next for the purpose of accumulating an annual leave account or reserve. The maximum leave hours that may be accrued is six hundred forty (640) hours for classified, [AND] unclassified, and Department Head service employees, and eight hundred ninety-six (896) hours for Fire Department employees working a 7(k) work period. (f) Annual leave may be used for any purpose desired by the employee. Incidental absences for sickness as unplanned are not controllable. However, planned absences must be coordinated with and approved by the appropriate department head. (g) It is required that each employee use a minimum of eighty (80) hours of leave per calendar year for employees working forty (40) hours per week, and one hundred twelve (112) hours for employees working a 7(k) work period, and affect appropriate coordination with the department head. If actual hours used are less than the minimum requirement, then the difference shall be deducted from available leave hours without any compensation to the employee. (h) Excess leave above the amount authorized for accrual (subsections (a) through (e)) existing on December 31st shall automatically be paid at the then existing rate for the individual employee. (i) Department heads shall schedule vacations for their respective employees with due consideration for the desires of the employees and the work requirements facing the
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Page 17 of 57 Ordinance No. 3018-2018 department. Vacation schedules may be amended to allow the department to meet emergency situations. (j) In the event of significant illness or injury not covered by workers’ compensation, or absence due to training or education an employee on exhausting annual leave may, with the approval of the City Manager, borrow up to a six (6) month entitlement (i.e., thirteen (13) x 7.3846 hours) to avoid a no-pay status. In the event the person’s employment with the City ends prior to the borrowed leave being repaid, the employee must reimburse the City for the value of any leave not repaid. The City may deduct the value of any leave not repaid from the employee’s final paycheck. (k) Part-time employees working fifteen (15) hours a week or more shall accrue at the same rate as a full-time employee except on a proportional basis as to hours. (l) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND EXEMPT SERVICES]Employees considered to be exempt from the provisions of the Fair Labor Standards Act shall have annual leave charged on an eight (8) hour/whole day basis. If any such employee is present for work during any portion of a day, that employee shall not be charged annual leave for that day. Conversely, if any such employee is absent from her or his normal place of work for an entire day (excluding Saturdays, Sundays, and holidays) that employee will be charged eight (8) hours of annual leave for that day. This amendment is consistent with other similar amendments above, removing the supervisory and professional designation from code, as FLSA exemptions are determined based on federal law analysis. 30. 23.40.060 Leave of [A]Absence with [P]Pay. (a) Employees may request leave of absence with pay for: (1) Witness or Jury Duty. When a City employee is called for jury duty or is subpoenaed as a witness, he or she shall not suffer any loss of his or her regular City compensation during such absence; however, he or she shall be required to transfer any compensation he or she receives for the performance of such duty to the City. Time not worked because of such duty shall not affect annual leave accrual. (2) Military Leave. Employee’s shall be eligible for military leave or associated benefits in compliance with State and Federal law. [AN EMPLOYEE WHO HAS COMPLETED THE PROBATIONARY PERIOD AND WHO IS A MEMBER OF THE NATIONAL GUARD OR RESERVE COMPONENT OF THE ARMED FORCES OF THE UNITED STATES OR OF THE UNITED STATES PUBLIC HEALTH SERVICE SHALL BE ENTITLED, UPON APPLICATION, TO A LEAVE OF ABSENCE FROM CITY SERVICE FOR ONE (1) PERIOD NOT EXCEEDING FIFTEEN (15) CONSECUTIVE DAYS IN ANY ONE (1) CALENDAR YEAR. HOWEVER, BECAUSE POLICE, FIRE, AND COMMUNICATIONS EMPLOYEES HAVE A TWELVE (12) MONTH PROBATIONARY PERIOD RATHER THAN THE SIX (6) MONTH PROBATIONARY PERIOD FOR OTHER CLASSIFIED EMPLOYEES, THEY SHALL BE ELIGIBLE FOR MILITARY LEAVE AFTER SIX (6) MONTHS OF SERVICE. SUCH LEAVE SHALL BE GRANTED WITHOUT LOSS OF TIME, PAY (DIFFERENCE BETWEEN REGULAR AND MILITARY PAY INCLUDING COLA, BUT NOT INCLUDING OTHER REGULAR ALLOWANCES), OR OTHER LEAVE, AND WITHOUT IMPAIRMENT OF MERIT RATINGS OR OTHER RIGHTS OR BENEFITS TO WHICH HE OR SHE IS ENTITLED. MILITARY LEAVE WITH PAY SHALL BE GRANTED ONLY WHEN AN EMPLOYEE RECEIVES BONA FIDE ORDERS TO TEMPORARY ACTIVE OR TRAINING DUTY,
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Page 18 of 57 Ordinance No. 3018-2018 AND SHALL NOT BE PAID IF THE EMPLOYEE DOES NOT RETURN TO HIS OR HER POSITION IMMEDIATELY FOLLOWING THE EXPIRATION OF THE PERIOD FOR WHICH HE OR SHE WAS ORDERED TO DUTY.] This is essentially a housekeeping change. Military leave is governed by state and federal law and should not be restated in our City code as state and federal laws may change creating an opportunity for the City code to conflict with other laws. (3) Conferences, Conventions and Other Related City Business. Decisions concerning attendance at conferences, conventions, or other functions pertaining to City business at City expense shall be made by the department heads with the approval of the City Manager. Permission shall be granted on the basis of an employee’s participation in or the direct relationship of the function to the City. Members of professional societies may be permitted to attend meetings of their society when such attendance is considered to be in the best interest of the City. (4) Death in the Immediate Family. Leave of absence with pay is provided to assist an employee who must be absent from work as a result of a death in the immediate family. The employee’s absence would be for funeral attendance, or to handle matters arising due to the death of an immediate family member, that cannot practicably be taken care of outside of regular business hours. Upon the City Manager’s approval, employees shall be entitled to the following leave, which will not directly affect their personal leave account: three (3) working days, up to twenty-four (24) hours maximum. 32. [23.40.150 DEFINITIONS. IN KMC 23.40.130 THROUGH 23.40.140: (A) “CHILD” MEANS AN INDIVIDUAL WHO IS: (1) UNDER EIGHTEEN (18) YEARS OF AGE; OR (2) EIGHTEEN (18) YEARS OF AGE OR OLDER AND INCAPABLE OF SELF-CARE BECAUSE OF MENTAL OR PHYSICAL DISABILITY. (B) “HEALTH CARE PROVIDER” MEANS: (1) A PHYSICIAN LICENSED UNDER AS 08.64, OR A DENTIST LICENSED UNDER AS 08.36, OR A PSYCHOLOGIST LICENSED UNDER AS 08.86; OR (2) ANY OTHER PERSON DETERMINED BY THE SECRETARY OF LABOR TO BE CAPABLE OF PROVIDING HEALTH CARE SERVICES. (C) “LICENSED HEALTH CARE PROVIDER” MEANS A PHYSICIAN LICENSED UNDER AS 08.64 OR A PSYCHOLOGIST LICENSED UNDER AS 08.86. (D) “PARENT” MEANS A BIOLOGICAL OR ADOPTIVE PARENT, A PARENT-IN-LAW, OR A STEP-PARENT. (E) “SERIOUS HEALTH CONDITION” MEANS AN ILLNESS, INJURY, IMPAIRMENT, OR PHYSICAL OR MENTAL CONDITION THAT INVOLVES: (1) INPATIENT CARE IN A HOSPITAL, HOSPICE, OR RESIDENTIAL HEALTH CARE FACILITY; OR (2) CONTINUING TREATMENT OR CONTINUING SUPERVISION BY A HEALTH CARE PROVIDER. (F) “SPOUSE” MEANS SOMEONE WITH WHOM THE EMPLOYEE HAS AN EXISTING VALID MARRIAGE AS SET FORTH UNDER AS 25.05 AND SPECIFICALLY DOES NOT INCLUDE AN UNMARRIED DOMESTIC PARTNER OF THE EMPLOYEE. (G) “IMMEDIATE FAMILY” INCLUDES MOTHER, FATHER, SPOUSE, CHILDREN, BROTHER, SISTER, MOTHER/FATHER-IN-LAW. THE CITY MANAGER MAY DETERMINE “OTHER INDIVIDUALS” ARE IMMEDIATE FAMILY, PARENTS, CHILDREN, SIBLINGS AND OTHERS INVOLVED IN THE SIGNIFICANT RAISING.] This is a housekeeping change. This section is deleted as it provides state and federal definitions
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Page 19 of 57 Ordinance No. 3018-2018 pertaining to state and federal law compliance which have changed and are subject to change. The best practice is to review actual state and federal definitions to ensure mandatory compliance. 33. 23.45.020 Periods of Evaluation. Each employee [IN THE CLASSIFIED SERVICE] shall have his or her performance evaluated at the following periods: This change ensures all employees are evaluated. (a) End of Probationary Period. Each employee in the classified service shall be evaluated thirty [(30)] days prior to the completion of his or her probationary period. The employee must have an overall evaluation of at least “Meets Expectations” in order to become permanent or, in the case of seasonal employees, be eligible for the next season’s employment. This change reflects only Classified Employees have an probationary period. (b) Annual. Each employee shall receive an annual performance evaluation thirty [(30)] days prior to his or her anniversary date[.] and thirty days prior to the end of each season for seasonal employees. This housekeeping change recognizes current City practice. (c) Time of Separation. Each employee shall be evaluated at the time of separation and such record shall become part of his or her permanent personnel file. 34. 23.45.030 Performance [E]Evaluators. (a) Rating Officer. The rating officer shall normally be the employee’s immediate supervisor. The rating officer shall be responsible for completing a performance evaluation report at the time prescribed for each employee under his or her supervision. (b) Reviewing Officer. The reviewing officer shall normally be the rating officer’s immediate supervisor or department head. The reviewing officer shall review the performance evaluation report completed by each rating officer under his or her jurisdiction before the report is discussed with the employee. The reviewing officer shall consider the performance evaluations completed by the rating officer in evaluating the rating officer’s performance. (c) Department Heads shall be evaluated by the City Manager. This amendment clarifies that all Department Heads will be evaluated by the City Manager. 35. 23.45.040 Review of [P]Performance [R]Reports for Employees in the Classified Service. The rating officer shall discuss the performance evaluation report with the employee in the classified service before the report is made part of the employee’s permanent record. If the rating officer plans to recommend the denial of an in-grade pay increment or recommend an extraordinary increment, the report must be discussed with the reviewing officer and the City Manager prior to review with the employee. This change reflects that only Classified employees pay increases are based on evaluations and a step schedule. As provided below, Classified employees who receive a negative rating on their evaluation are not eligible for a step increase. 36. 23.45.050 Unsatisfactory [E]Evaluation for Employees in the Classified Service. Employees in the classified service who receive an overall rating of “Unsatisfactory” or “Needs Improvement” on their annual evaluation shall not be eligible to be advanced a step increment at appropriate annual, biennial or quadrennial anniversary dates. Employees in the classified service who receive two [(2)] consecutive overall ratings of “unsatisfactory” shall be subject to dismissal. Consistent with the amendment above, step increases based on evaluations only
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Page 20 of 57 Ordinance No. 3018-2018 apply to Classified employees. Department Head Service employees will be evaluated, but there is not a guarantee they will receive additional compensation even with a positive evaluation. 37. 23.45.060 Performance [E]Evaluation [A]Appeal [P]Procedure for Employees in the Classified Service. [EMPLOYEES’ P]Performance evaluation reports for employees in the classified service shall not be subject to the standard grievance procedure. Employees in the classified service shall have the right to appeal their evaluation in accordance with the following procedure: (a) Step 1. If, after a review of his or her performance evaluation report with the rating officer, the employee feels that the report is unfair, he or she may request a meeting with the reviewing officer by checking the appropriate section on the report. The rating officer will then immediately forward the report to the reviewing officer who will arrange to meet with the employee within five (5) working days after receiving the report. The reviewing officer will then forward a decision in writing to the employee within five (5) working days after the date of their meeting. (b) Step 2. In the event that the employee is dissatisfied with the decision of the reviewing officer, he or she may, within five (5) working days of receipt of the decision, appeal his or her performance evaluation report, in writing, to the City Manager. The City Manager shall, within five (5) working days, meet and discuss the report with the employee. The City Manager will, in writing, make a decision within ten (10) working days from the date of their meeting. The decision of the City Manager will be final. Amendments to this section are to reflect that appeal of evaluations only applies to the Classified Service. Appeals of evaluations are not applicable to at-will Department Head Service employees. 38. 23.50.010 Employee [C]Classification. City employees shall be classified by Class, Title, and Pay Range as follows: CLASS CODE
CLASS TITLE
RANGE
(a) SUPERVISORY AND PROFESSIONAL 101 102 103 104 105 106 107 112 117 118 119 120 121 122
City Manager City Attorney City Clerk Finance Director* Public Works Director* Police Chief* Fire Chief* Airport Manager* City Planner Information Technology (IT) Manager Human Resource Specialist/Assistant to City Manager Library Director* Senior Center Director* Parks and Recreation Director*
NG NG NG 24 23 23 22 20 16 18 15 18 18 17
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Page 21 of 57 Ordinance No. 3018-2018 CLASS CODE
CLASS TITLE
RANGE
123
Human Resources Officer
16
(b) ADMINISTRATIVE SUPPORT 203 204 205 206 210 211 214 218 219
Administrative Assistant I Accounting Technician I Accounting Technician II Accountant Administrative Assistant II Administrative Assistant III Library Assistant Library Aide Data Entry Clerk
8 10 11 16 9 10 6 2.5 1.1
(c) PUBLIC SAFETY 302 303 304 305 306 307 311 312 313 314 315 316 317
Fire Fighter Police Lieutenant Police Sergeant Police Officer Public Safety Dispatcher Fire Engineer Fire Captain Fire Marshal Communications Supervisor Police Trainee Battalion Chief/Safety Officer Chief Animal Control Officer Animal Control Officer
13 20 18 16 9 15 16 17 12 16/21 17 11 9
(d) PUBLIC WORKS 401 402 403 404 405 407 408 409 410 412 413 414 417
Building Official Shop Foreman Street Foreman Sewer Treatment Plant Operator Water and Sewer Operator Equipment Operator Shop Mechanic Equipment Lead Operator Water and Sewer Foreman Building Maintenance Technician Sewer Treatment Plant Lead Operator Sewer Treatment Plant Foreman Airport Operations Specialist
15 16 16 13 13 11 14 14 16 12 14 16 11
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Page 22 of 57 Ordinance No. 3018-2018 CLASS CODE
CLASS TITLE
RANGE
418 419 420
Airport Operations Supervisor Building Maintenance Lead Technician Water and Sewer Lead Operator
15 13 14
(e) GENERAL SERVICES 504 505 506 507 508 509 510 511 512
Parks, Beautification and Recreation Operator Parks, Beautification and Recreation Laborer Cook Activities/Volunteer Coordinator Meals/Driver Kitchen Assistant Outreach Worker Janitor Driver
9 2.4 2.4 2.4 2.4 2.2 1.1 2.4 1
* Department Head[S] Service This is a minor change to reflect the new term “Department Head Service.” 1 For work performed after February 21, 2009, while attending the Alaska Public Safety Academy in Sitka, a police trainee shall be a paid at a Range 2, Step F. Because of a fluctuating and unpredictable training schedule, he or she shall be considered to work twelve (12) hours per day from Monday through Saturday and eleven (11) hours on Sunday, or the actual number of hours worked, whichever is greater. The normal work schedule at the academy shall be five (5) eight (8) hour shifts from Monday to Friday rather than four (4) ten (10) hour shifts as stated in KMC 23.50.050(b)(l). 39. 23.55.015 – Department Head Service Salaries. Salaries of employees in the Department Head Service shall be set by the City Manager within the range approved by the City Council as approved through the budget process. This is a new section of code explaining that the City Manager can set a Department Head’s salary anywhere within the range of the salary approved by council and through the budget process. 40. 23.55.020 Compensation Structure by Grade for Employees in the Classified Service. (a) Compensation structure by grade for employees in the classified service is hereby established in accordance with the table that is appended to this title and which may be amended, modified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the code at the end of this title. (b) On completion of the probationary period, each permanent full-time employee in the classified service, except seasonal employees, shall be advanced one [(1)] step. At succeeding anniversary dates, subject to evaluation, employees in the classified service may be advanced a step increment subject to City Manager approval. The time period normally between steps B to C to D to E to F is one [(1)] year. The time normally between Steps F to AA to BB to CC is two [(2)] years.
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Page 23 of 57 Ordinance No. 3018-2018 (c) On completion of the probationary period, each permanent part-time employee in the classified service and seasonal employee shall be advanced one [(1)] step. At appropriate biennial or quadrennial anniversary dates thereafter, subject to the employee’s most recent annual evaluation being “Meets Expectations” or better, the employee, including seasonal employees, may be advanced a step increment. The time period normally between steps B to C to D to E to F is two [(2)] years. The time period normally between steps F to AA to BB to CC is four [(4)] years. Amendments to this section clarify that it only applies to Classified employees. 41. 23.55.50 Hourly Rates. (a) Hourly rates for employees in the classified service not exempted from minimum wage and overtime provisions of the Fair Labor Standards Act (with various experience, skills, and responsibilities) are hereby established in accordance with the table that is appended to this title and which may be amended, modified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the Code at the end of this title. This amendment is consistent with the overall structure in the Personnel Code that only Classified employees are paid on an hourly basis. 42. 23.55.060 Stand-by [P]Pay. (a) Where employees in the classified service are placed on a stand-by status, they shall be entitled to a 5% rate of pay computed against Step A of the pay range of the employee for each hour in stand-by status. (b) To be eligible for stand-by pay, an employee in the classified service must formally be placed on stand-by status, with the approval of the City Manager, and the proper documentation indicating such approval placed in the employee’s personnel records. An employee in stand-by status must be available for call-outs, must be in a location whereby the responsible City personnel can communicate with him or her, and comply with any other requirements of the approved stand-by pay. This amendment clarifies that only Classified employees receive stand-by pay. 43. 23.55.070 Call-out [P]Pay. When employees in the classified service are called out to work outside of normal working hours, they shall be paid a minimum of two [(2)] hours pay at overtime rates. Overtime hours worked immediately prior to, or after, normal working hours will not be considered as a “callout.” This amendment clarifies that only Classified employees receive call-out pay. 44. 23.55.080 Longevity [P]Pay for Employees in the Classified Service. All regular employees in the classified service who have received an overall rating of “Meets Expectations” or better in their last performance evaluation and who have been at Step CC for a period of at least two (2) years as of July 31st shall be paid a longevity bonus of two percent (2%) of his or her annual pay rate (i.e., excluding overtime). The longevity pay shall be paid just once a year on the August payroll, except that the longevity bonus in 2008 shall be paid after the effective date of the ordinance codified in this section but prior to the end of the calendar year 2008. Notwithstanding the above, any employee in the classified service who has received a range increase or a noncost of living pay increase within their current pay range within the twelve (12) months prior to July 31st is not eligible for a longevity pay bonus. This amendment clarifies that only Classified employees receive longevity pay.
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Page 24 of 57 Ordinance No. 3018-2018 45. FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED AND DEPARTMENT HEAD SERVICE EMPLOYEES EXCLUDING THOSE ENGAGED IN FIRE PROTECTION ACTIVITIES Range 1 1.1 2 2.1 2.2 2.3 2.4 2.5 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A Step 10.27 10.78 11.47 12.08 12.76 13.41 15.66 17.74 17.85 18.75 19.69 20.66 21.71 22.80 23.94 25.12 26.38 27.72 29.08 30.55 32.07 33.67 35.35 37.12 38.97 40.93 42.99 45.11 47.38 49.81
B
C
D
E
F
AA
BB
CC
10.53 11.05 11.76 12.38 13.08 13.75 16.05 18.18 18.30 19.22 20.18 21.18 22.25 23.37 24.54 25.75 27.04 28.41 29.81 31.31 32.87 34.51 36.23 38.05 39.94 41.95 44.06 46.24 48.56 51.06
10.78 11.32 12.04 12.68 13.40 14.08 16.44 18.63 18.74 19.69 20.67 21.69 22.80 23.94 25.14 26.38 27.70 29.11 30.53 32.08 33.67 35.35 37.12 38.98 40.92 42.98 45.14 47.37 49.75 52.30
11.04 11.59 12.33 12.99 13.72 14.42 16.83 19.07 19.19 20.16 21.17 22.21 23.34 24.51 25.74 27.00 28.36 29.80 31.26 32.84 34.48 36.20 38.00+ 39.90 41.89 44.00 46.21 48.49 50.93 53.55
11.30 11.86 12.62 13.29 14.04 14.75 17.23 19.51 19.64 20.63 21.66 22.73 23.88 25.08 26.33 27.63 29.02 30.49 31.99 33.61 35.28 37.04 38.89 40.83 42.87 45.02 47.29 49.62 52.12 54.79
11.55 12.13 12.90 13.59 14.36 15.09 17.62 19.96 20.08 21.09 22.15 23.24 24.42 25.65 26.93 28.26 29.68 31.19 32.72 34.37 36.08 37.88 39.77 41.76 43.84 46.05 48.36 50.75 53.30 56.04
11.81 12.40 13.19 13.89 14.67 15.42 18.01 20.40 20.53 21.56 22.64 23.76 24.97 26.22 27.53 28.89 30.34 31.88 33.44 35.13 36.88 38.72 40.65 42.69 44.82 47.07 49.44 51.88 54.49 57.28
12.07 12.67 13.48 14.19 14.99 15.76 18.40 20.84 20.97 22.03 23.14 24.28 25.51 26.79 28.13 29.52 31.00 32.57 34.17 35.90 37.68 39.56 41.54 43.62 45.79 48.09 50.51 53.00 55.67 58.53
12.32 12.94 13.76 14.50 15.31 16.09 18.79 21.29 21.42 22.50 23.63 24.79 26.05 27.36 28.73 30.14 31.66 33.26 34.90 36.66 38.48 40.40 42.42 44.54 46.76 49.12 51.59 54.13 56.86 59.77
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES ENGAGED IN FIRE PROTECTION ACTIVITIES Range A B C D E F AA BB CC Step 13 20.77 21.29 21.81 22.33 22.85 23.37 23.89 24.40 24.92 14 21.82 22.37 22.91 23.46 24.00 24.55 25.09 25.64 26.18 15 22.91 23.48 24.06 24.63 25.20 25.77 26.35 26.92 27.49 16 24.06 24.66 25.26 25.86 26.47 27.07 27.67 28.27 28.87 17 25.26 25.89 26.52 27.15 27.79 28.42 29.05 29.68 30.31
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Page 25 of 57 Ordinance No. 3018-2018 FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE FOR ALL DEPARTMENT HEAD SERVICE EMPLOYEES 18 19 20 21 22 23 24
$77,209 – 101,907 $79,185 – 106,987 $85,134 – 112,387 $89,419 – 118,037 $93,829 – 123,849 $98,550 – 130,096 $103,604 – 136 754
This new section of the pay scale reflect a salary range for the Department Head Service. The bottom of the range is the same as the current FY18 Step A in the Salary Schedule for the range, but the top of the range has been increased by 10%.
Section 2. Revised Title 23 in its Entirety: Title 23 - Personnel Regulations Chapter 23.05 - GENERAL PROVISIONS 23.05.010 Employment—Qualifications. Employment in City government shall be based on qualifications, free of personal and political considerations, with equal opportunity for all with no discrimination in employment on the basis of race, color, religion, sex, sexual orientation, national origin, age, disability, marital status, changes in marital status, pregnancy, parenthood, or genetic information. It is a policy of the City to not discriminate against the qualified disabled in employment. 23.05.020 Incentives and conditions. Just and equitable incentives and conditions of employment shall be established and maintained to promote efficiency and economy in the operations of the City government. 23.05.030 Uniformity of classification and compensation. Positions having similar duties and responsibilities shall be classified and compensated on a uniform basis. 23.05.040 Appointment. Appointments, promotions, and other actions requiring the application of the merit principal shall be based on systematic evaluation, designed for the position to be filled.
23.05.050 Morale. High morale shall be maintained by the fair administration of this ordinance, by every consideration of rights and interests of employees, consistent with the best interest of the public and the City.
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Page 26 of 57 Ordinance No. 3018-2018 23.05.060 Tenure. Tenure of employees in the classified service [COVERED BY THIS TITLE] shall be subject to good behavior, satisfactory performance of work, necessity for the performance of work, and the availability of funds. 23.05.070 Definitions. As used in Title 23, the following terms shall have the meanings indicated: (a) Unclassified Service. The unclassified service shall include all elected officials, City Manager, City Attorney, City Clerk, seasonal and temporary employees. Members of boards, committees, commissions, volunteers, contractors, and consultants are not employees. (b) Classified Service. All paid employees not in the unclassified [SERVICE] or Department Head Service. (c) Department Head Service. The Department Head Service shall include employees who are directly responsible to the City Manager for the administration of one or more departments. [(C)](d) Full-Time. Employees scheduled to work forty (40) hours per week (except certain Fire Department employees who work an average of fifty-six (56) hours per week) are considered full time. [(D)](e) Part-Time. Employees scheduled to work less than forty (40) hours per week. [(E)](f) Regular. Employees who have completed the probationary period. They may be assigned to work a full-time or part-time schedule. [(F)](g) Seasonal. Employees who perform seasonal work for a pre-established period of not more than six (6) months during a twelve (12)-month period. Seasonal Employees may be assigned a full time or part-time schedule and are eligible for Public Employee Retirement Benefits but are ineligible for other benefits and holiday pay. Seasonal Employees who have completed the probationary period may return to the seasonal position each season subject to performance evaluations, general conduct and discipline, personnel rules and policies of the City, layoff, reorganization and other business needs of the City. [(G)](h) Temporary. Employees who are hired for a pre-established period, usually during peak workloads or for vacation relief and for not more than six (6) months. They may be assigned to work a full-time or part-time schedule. They are ineligible for benefits and holiday pay. [(H)](i) Probationary Period. Normally six (6) months, except for Police, Communications and Fire, which is normally twelve (12) months. This period can be extended up to, but no longer than, twelve (12) months and eighteen (18) months, respectively. [(I)](j) Department. The smallest functional budgetary unit of the City government established by the City Council. [(J) DEPARTMENT HEAD. A CLASSIFIED EMPLOYEE DIRECTLY RESPONSIBLE TO THE CITY MANAGER FOR THE ADMINISTRATION OF ONE (1) OR MORE DEPARTMENTS.] (k) Promotion. An advancement of an employee from one (1) job classification to a higher job classification within the same department. (l) Transfer. The movement of an employee from one (1) department to another department, regardless of job classification. (m) [GENERAL GOVERNMENT EMPLOYEE. A CITY EMPLOYEE OTHER THAN A PUBLIC SAFETY EMPLOYEE.
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Page 27 of 57 Ordinance No. 3018-2018 (N)] Public Safety Employee. A person employed in the Police, Fire, or Communications Department. [(O)](n) Supervisor. Any person who is responsible to a higher divisional or department level of authority and who directs the work of others. [(P)](o) City Manager. A person directly responsible to the City Council who is authorized and directed to exercise the powers and fulfill the duties as specified in the Charter and Municipal Code of the City of Kenai. [(Q)](p) City Attorney. A person directly responsible to the City Council. He or she is the chief legal advisor to the Council and all other officers, departments and agencies of the City government in matters relating to their official powers and duties. [(R)](q) City Clerk. An officer of the City, appointed by the Council, for an indefinite period of time and shall serve as clerical officer of the Council. [(S)](r) Grievance. An employee’s oral or written expression of dissatisfaction with some aspect of his or her employment, a management decision affecting him or her, or an alleged violation of his or her rights for the purpose of attempting to gain an adjustment of said cause of dissatisfaction. Chapter 23.10 - CATEGORIES OF SERVICE 23.10.010 General. All offices and positions of the City are divided into [C]Classified [S]Service, [AND U]Unclassified [S]Service and Department Head Service. [ALL THE PROVISIONS OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE CLASSIFIED SERVICE. THE PROVISIONS OF THIS CHAPTER SHALL APPLY TO POSITIONS IN THE EXEMPT SERVICE AS INDICATED IN KMC 23.10.020.] 23.10.020 Unclassified [S]Service. The unclassified service shall include the following: (a) Mayor and Council Members. Only the following provisions shall apply: KMC 23.30.110(b) and (d) [AND 23.40.080 (AS APPLICABLE)], 23.40.100 and 23.40.110. (b) Members of Boards or Commissions. Only the following provisions shall apply to such officials: KMC 23.30.110(b) and (d). Only the following provisions shall apply to Planning and Zoning Commissioners compensated pursuant to KMC 14.05.010: KMC 23.40.100 and 23.40.110. (c) The following Council-appointed administrative offices: (1) City Manager. The City Manager shall perform all those duties mandated for his or her position by the provisions of this chapter and shall be bound or receive the benefits of the following sections insofar as they are applicable: KMC 23.25.050 and 23.25.060(d); KMC 23.30.110(b), (C) and (d); and KMC 23.40.020, 23.40.030, 23.40.040, 23.40.060, 23.40.070, 23.40.095, 23.40.100, 23.40.110, 23.40.120, and 23.40.130. The Council shall by resolution determine whether KMC 23.40.080 applies to the position of City Manager. (2) City Clerk. Only those provisions specifically enumerated under subsection (1) above shall apply to the City Clerk. (3) City Attorney. Only those provisions specifically enumerated under subsection (1) above shall apply to the City Attorney.
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Page 28 of 57 Ordinance No. 3018-2018 (d) Volunteer Personnel and Personnel Appointed to Serve Without Pay. None of the provisions of this chapter shall apply to such personnel. (e) Consultants and Counsel Rendering Temporary Professional Services. Such services shall be by contract and none of the provisions of this chapter shall apply. (f) Positions Involving Seasonal or Temporary Work. All of the provisions of this chapter shall apply to such positions but only insofar as they are applicable. [(G) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE EXEMPT SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION: CITY MANAGER CITY ATTORNEY CITY CLERK] 23.10.030 Classified [S]Service. The [C]Classified [S]Service shall include all [OTHER POSITIONS IN THE CITY SERVICE] paid employees not in the Unclassified or Department Head Service. (a) [ALL P]Positions in the Classified Service are established by the annual budget or [COMPENSATION GUIDE] Classification Plan. [ADOPTED BY RESOLUTION OF THE CITY COUNCIL. ANY NEW POSITION CREATED AT THE START OR DURING THE BUDGET YEAR AND EITHER RATIFIED OR AFFIRMED BY THE CITY COUNCIL.] [(B) THE FOLLOWING SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED SERVICE ARE CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT DUE TO THE NATURE OF THE POSITION: AIRPORT MANAGER FINANCE DIRECTOR FIRE CHIEF LIBRARY DIRECTOR PARKS AND RECREATION DIRECTOR POLICE CHIEF POLICE LIEUTENANT PUBLIC WORKS DIRECTOR PUBLIC WORKS MANAGER SENIOR CENTER DIRECTOR.] 23.10.035 Department Head Service (a) Positions in the Department Head Service are established by the annual budget or Classification Plan. (b) The Department Head Service shall consist of full-time paid employees who are the heads of departments. Department Heads serve at will. The City Manager may suspend or dismiss such employees without cause subject to review by the City Attorney.
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Page 29 of 57 Ordinance No. 3018-2018 Chapter 23.15 - ADMINISTRATION 23.15.010 Administration by City Manager. The personnel program established by this title shall be administered by the City Manager. He or she shall administer all provisions of this title and of the personnel rules. He or she shall prepare and recommend revisions and amendments to this title as deemed necessary. The City Manager shall draft such rules as may be necessary to carry out the provisions of this title. Such rules shall be uniform application except as specifically stated. Additionally, each department of the City is encouraged to establish departmental rules, regulations, and procedures subject to the approval of the City Manager. Such rules, regulations, and procedures shall be in harmony with the general rules of the City Manager and provisions of this title, and shall be binding on the employees. Chapter 23.20 - CLASSIFICATION 23.20.010 Initial [C]Classification. The City Manager shall make analysis of the duties and responsibilities of all positions in the [C]Classified [S]Service and Department Head Service and shall recommend to the Council a job classification plan. Each position in the [C]Classified [S]Service and Department Head Service shall be assigned to a job class on the basis of the kind and level of its duties and responsibilities. [, TO THE END THAT] All positions in the same class shall be sufficiently alike to make use of a single descriptive title, the same qualification requirements, the same test of competence, and the same pay scale. A job class may contain one [(1)] position or more than one [(1)] position. The Council shall adopt a classification plan by ordinance. 23.20.020 Revisions to classification plan. The initial classification plan shall be revised from time to time as changing positions require it, with the recommendation of the City Manager and the approval of the City Council. Such revisions may consist of addition, abolishment, consolidation, division, or amendment of the existing classes. 23.20.030 Adjustments to organization. Whenever a change in the organization of the City administration is brought about by changes in the classification system outlined above, the City Manager shall submit to the Council a chart or table of organization of the administration, indicating the new structure and reporting relationship. Chapter 23.25 - COMPENSATION 23.25.010 Pay plan—Development. The City Manager, in consultation with the Finance Director, shall prepare a pay plan and rules for its administration. The rate and range where each class shall be such as to reflect fairly the differences in duties and responsibilities and shall be related to compensation for comparable positions in other places of public employment. The objective of the pay plan shall be to provide an appropriate compensation structure to recruit and retain an adequate supply of competent employees.
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Page 30 of 57 Ordinance No. 3018-2018 23.25.020 Pay [P]Plan and [A]Adoption. The City Manager shall submit the pay plan and rules for its administration to the City Council for adoption. Before the pay plan and the rules for its administration are adopted by the Council, the City Manager shall assign each job class to one [(1)] of the pay ranges provided in the pay plan. A salary schedule for the Department Heard Service shall be part of the pay plan. The Council shall adopt a plan and rules by ordinance. 23.25.030 Pay [P]Plan [A]Amendment. The pay plan may be amended by the City Council from time to time as circumstances require, either by adjustment of rates or by reassignment of job classes to different pay ranges or salary schedule. All modifications shall apply uniformly to all positions in the same class. 23.25.040 Appointee [C]Compensation –Classified Service. (a) Upon initial appointment to a position, the employees in the Classified Service shall receive the minimum compensation for the class to which the position is allocated, except as provided below. (b) [HOWEVER, I]In [THE] cases when unusual difficulty in filling the vacancy is experienced, or when the appointee is exceptionally qualified, the City Manager may cause the appointment for employees in the Classified Service to be made at a compensation level above the minimum, but not more than level D for the same class. 23.25.045 Department Heads (a) Upon initial appointment to a position, employees in the Department Head Service shall receive the minimum compensation for the class to which the position is allocated, except as provided below. (b) In cases when unusual difficulty in filling the vacancy is experienced, or when the appointee is exceptionally qualified, the City Manager may cause the appointment for employees in the Department Head Service to be made at a compensation level above the minimum, but not more than the maximum for the same class. 23.25.050 Pay day. The pay period is bi-weekly. Employees shall be paid every other Friday (pay day). If the pay day falls on a holiday, employees shall be paid on the last working day preceding the pay day. 23.25.060 Overtime. (a) Department heads and supervisors shall assign to each employee regular work duties and responsibilities which can normally be accomplished within the established work day and work week. (b) When employees are required to work overtime, department heads shall authorize compensatory time off or overtime pay. Determination to grant overtime pay or compensatory time off shall rest with the department head, City Manager, or acting department heads, who shall give due consideration to desires of the employee, to budgetary controls, and to the provisions of subsection (c) of this section. Rates for overtime (in addition to regular compensation based upon compensation schedules) shall be based upon the employee’s regular rate of pay as follows:
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Page 31 of 57 Ordinance No. 3018-2018 (1) [GENERAL GOVERNMENT E]Employees in the Classified Service (excluding public safety, sewer treatment plant, and temporary employees): Regular Pay Times Regular Work Saturday Sunday Holiday (2)
1 1/2 1 1/2 2 2 1/2
Temporary employees: Regular Pay Times Regular Work Saturday Sunday Holiday
1 1/2 1 1/2 1 1/2 1 1/2
(3) [GENERAL GOVERNMENT] Employees in the Classified Service and temporary employees other than employees engaged in fire protection activities must be in a paid status for forty (40) hours in the work week before overtime compensation will be paid. (4)
Police, communications and sewer treatment plant employees: Regular Pay Times Regular Work Day Saturday Sunday
(5)
1 1/2 1 1/2 2
Employees engaged in fire protection activities: Regular Pay Times Regular Work Saturday Sunday
1 1/2 1 1/2 1 1/2
(6) Police, communications, employees engaged in fire protection activities, and sewer treatment plant employees must be in a paid status for their normal work week, as follows, before overtime compensation will be paid: Police Employees engaged in fire protection activities Communications Sewer treatment plant
40 hours As required by the Fair Labor Standards Act 40 hours 40 hours
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Page 32 of 57 Ordinance No. 3018-2018 However, overtime may be paid as required by the Fair Labor Standards Act, recognizing that an employee’s salary is compensation for the normal shifts specified in this Title. (c) Compensatory time accumulation shall not exceed the total number of hours equal to one (1) regular shift of the employee. Once this maximum accumulation has been reached, all overtime compensation earned by the employee shall automatically be paid in cash. (d) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND EXEMPT SERVICES CONSIDERED TO BE] Positions exempt from the provisions of the Fair Labor Standards Act shall not be bound to a work week of any set number of hours. The individuals in these positions are expected to work as many hours as the responsibilities of their positions require. As a result, individuals in these positions shall not be paid overtime or allowed to accrue compensatory time. 23.25.065 Shift differential pay. (a) Eligible employees who work certain shifts explained below are entitled to additional compensation. To be eligible, the scheduled shift must be for a period of less than twentyfour (24) hours. (b) Eligible shifts and rates are: (1) Shift begins after 2:00 p.m. and before 6:00 p.m.—2%. (2) Shift begins on or after 6:00 p.m. and before 3:00 a.m.—4%. (c) The above rates will be computed against Step A of the pay range of the employee. Shift pay is not to be considered in computing annual leave or holiday pay. (d) Eligible employees shall receive shift differential pay for each eligible shift worked. (e) Shift pay will be allowed only upon approval of the City Manager when such work schedule is necessary for the benefit of the City. 23.25.070 Acting positions. Compensation During Temporary Assignment. An employee who is temporarily assigned to and performs duties of a position with a higher pay range for a period of forty (40) or more consecutive regular work hours for employees not performing fire protection activities and fifty-six (56) or more consecutive regular work hours for employees performing fire protection activities shall be paid at the first step of the higher pay range, or, the employee shall be granted a one (1) step pay increase, whichever is higher, for the period worked in the temporary assignment. An employee who is temporarily assigned to a position with a lower pay range, for any period, shall not receive a reduction in pay. No such temporary assignment shall exceed six (6) months. Such acting appointments shall be in writing and the employee must perform the duties of the position. 23.25.080 Promotion. When an employee in the Classified Service is promoted from one class to another having a higher pay range, he or she shall receive an increase of not less than one (1) pay step from his or her former position. Chapter 23.30 - PERSONNEL POLICIES AND PROCEDURES 23.30.010 General. (a) Recruitment and appointing authority shall be vested in the City Manager.
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Page 33 of 57 Ordinance No. 3018-2018 (b) Applicants must be United States citizens or eligible for employment under existing State and Federal laws and regulations in order to be employed by the City. (c) Applicants for positions in the [CITY] Classified and Department Head [S]Service need not reside within the City Limits. Departmental rules shall establish response times required by that department. (d) Minimum age for City employment shall be in accordance with State of Alaska laws. (e) Employment of qualified individuals with a disability shall be encouraged. (f) Employment rights for veterans shall be in accordance with applicable State and Federal laws. (g) Applicants must possess an appropriate valid Alaska State driver’s license, should employment require operation of a motor vehicle. (h) Applicants must complete a City application form or submit a resume of sufficient detail to equate to a City form. 23.30.020 Appointment. (a) All appointments to vacancies shall be made solely on the basis of merit, efficiency, and fitness. These qualities shall be determined through careful and impartial evaluation of the following: (1) The applicant’s level of training relative to the requirements of the position for which applied. (2) The applicant’s physical fitness relative to the requirements of the position for which applied. (b) No question in any test or in any application form or by any appointing authority shall be so framed as to attempt to elicit information concerning race, color, religion, sex, sexual orientation, national origin, age, disability, marital status, changes in marital status, pregnancy, parenthood, genetic information or political affiliation for the purposes of discriminating. (c) All statements submitted on the employment application or attached resume shall be subject to investigation and verification. (d) If required by the department, applicants shall be fingerprinted prior to appointment. (e) Any job applicant or employee may be required to take a physical examination. In cases where a physical examination is deemed advisable, the City shall pay the cost of the examination. 23.30.030 Probationary Period for Employees in the Classified Service. (a) All original appointments for employees in the Classified Service including those that result from transfers shall be tentative and subject to a probationary period of not less than six (6) months consecutive service, except for police, fire, and communications, which shall be normally twelve (12) months, subject to meeting criteria for certification which may be accomplished following six (6) months of service and except for seasonal employees whose probationary period is established by the term of the first season of employment. Promotional appointment probationary period shall, for all [PERSONNEL]employees in the Classified Service, be not less than six (6) months. (b) In cases where the responsibilities of a position in the Classified Service are such that a longer period is necessary to demonstrate an employee’s qualifications, the probationary period may be extended; however, no probationary period shall be extended beyond twelve (12) months, or eighteen (18) months for police, fire, and communications, or one additional
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Page 34 of 57 Ordinance No. 3018-2018 season for seasonal employees. The employee shall be notified in writing of any extension and the reasons therefor. (c) During the first six (6) months of original probationary period, a new employee (including police, fire, and communications) shall not be eligible for annual leave benefits, but he or she shall earn annual leave credit from the first day of employment and may take leave for sickness during that period to the maximum of the amount of leave accrued. (d) Upon completion of the probationary period, employees in the Classified Service shall be considered as having satisfactorily demonstrated qualifications for the position, shall gain regular status, one step in pay raise, and shall be so informed through his or her supervisor. The employee’s anniversary date shall be the first of the month in which the employee’s original probation ends. Employees who have gained regular status at the effective date of the ordinance codified in this section shall have their anniversary dates changed to the first of the month in which the employee’s present anniversary date falls. (e) During the probationary period, a new employee [HIRE] hired in the Classified Service may be terminated at any time without advance notice, without cause, and without appeal. (f) In the case of promotional appointments, the promoted employee may be demoted at any time during the probationary period without appeal, provided that the probationary employee be reinstated in the class designation from which he or she was promoted, even though this necessitates the layoff of the employee occupying the position. [23.30.040 EVALUATION. (A) EVALUATIONS SHALL BE REQUIRED ANNUALLY OF ALL CLASSIFIED EMPLOYEES AND AFTER EACH SEASON FOR SEASONAL EMPLOYEES. SUPERVISORS SHALL INDICATE THEREON HIS OR HER RECOMMENDATION AS TO WHETHER OR NOT THE EMPLOYEE SHOULD BE AWARDED A PAY RAISE IN ACCORDANCE WITH THE CITY PAY PLAN, KMC 23.55. (B) APPROVAL OF INCREMENT PAY RAISES ARE VESTED IN THE CITY MANAGER. 23.30.050 Business [H]Hours and [H]Hours of [W]Work. (a) The hours during which City offices and departments shall normally be open for business shall be 8:00 a.m. to 5:00 p.m., [PUBLIC WORKS DEPARTMENTS SHALL BE 8:00 A.M. TO 4:30 P.M., EXCEPT SATURDAYS AND SUNDAYS, HOLIDAYS, AND FURTHER EXCEPTING] Police and Fire [WHICH] shall be open for business twenty-four (24) hours a day. The Library, Senior Center, Public Works, and Animal Control operations shall be open for business as authorized by the City Manager. (b) Public Safety employees, not including administrators, normal work week is: (1) Police and Communications—four (4) shifts of ten (10) hours per week, two thousand eighty (2,080) hours annually. When working this shift, first and third days off shall be treated as Saturdays and the middle day off (the second day) shall be treated as a Sunday for purposes of paying overtime; (2) Employees performing fire protection activities as defined by the Fair Labor Standards Act (FLSA) may work any FLSA approved “7(k) Work Period” approved by the City Manager. (c) Sewer Treatment Plant employees work a forty (40) hour week on a shift basis that allows at least one (1) employee to be at the plant on a given day. When scheduled days off are two (2) consecutive calendar days, the first day off shall be treated as a Saturday and the second day off shall be treated as a Sunday for purposes of paying overtime.
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Page 35 of 57 Ordinance No. 3018-2018 (d) All other employees’ normal work week is forty (40) hours, two thousand eighty (2,080) hours annually. Standard work day is midnight to midnight succeeding. Standard work week is midnight Sunday to midnight Sunday succeeding. Operating hours may be adjusted on timely notice. [(E) SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND UNCLASSIFIED SERVICES CONSIDERED TO BE EXEMPT FROM THE PROVISIONS OF THE FAIR LABOR STANDARDS ACT SHALL NOT BE BOUND TO A WORK WEEK OF ANY SET NUMBER OF HOURS. THE INDIVIDUALS IN THESE POSITIONS ARE EXPECTED TO WORK AS MANY HOURS AS THE RESPONSIBILITIES OF THEIR POSITIONS REQUIRE. THESE INDIVIDUALS ARE EXPECTED, HOWEVER, TO SUBSTANTIALLY CONFORM TO THE NORMAL WORK WEEK AS DESCRIBED IN SUBSECTION (D).] 23.30.060 Attendance. (a) Employees shall be in attendance at their work in accordance with the rules regarding hours of work, holidays, and leaves of absence. (b) An employee shall not be absent [HIM OR HERSELF] from work for any reason without prior approval from his or her supervisor. When prior approval is not obtained, an employee, who for any reason fails to report to work, shall make a sincere effort to notify his or her supervisor of his or her reason for being absent. If the absence continues beyond the first day, the employee shall notify the supervisor on a daily basis unless other arrangements have been made with the supervisor. (c) Departments shall maintain records of employees’ attendance. (d) Any unauthorized absence of any employee from duty shall be deemed to be an absence without pay and may be cause for disciplinary action. 23.30.070 Personnel [R]Records. (a) The City Manager shall cause a service or personnel record to be maintained for each employee in the Classified and Department Head service of the City of Kenai. (b) The personnel record shall show the employee’s name, title of position held, the department to which assigned, compensation, change in employment status, training received, and such other information as may be considered pertinent. (c) A personnel action form shall be used as the single document to initiate and update personnel records. (d) Employee personnel records shall be considered confidential and shall be accessible only to the following: (1) The employee concerned; (2) Selected City officials authorized by the City Manager. (e) Department personnel files should not be developed or maintained, except as working records; i.e., accumulating data for evaluation reports. Departmental personnel records are therefore unofficial and have no standing. 23.30.080 Transfers. Requests from employees for transfers from one department to another shall be made in writing and shall be directed to the employee’s present department head and referred to the appropriate department head and the appointing power. Such requests shall be given
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Page 36 of 57 Ordinance No. 3018-2018 consideration when a suitable vacancy occurs; however, no employee shall be transferred to a position for which he or she does not possess the minimum qualifications. 23.30.090 Layoff. If there are changes of duties in the organization, lack of work, or lack of funds, the appointing authority may lay off employees; however, the appointing authority shall first make every reasonable effort to integrate those employees into another department by transfer. When layoffs are required, the appointing authority shall base the decision on relative merit, and shall give due consideration to seniority in the City service only where the employee’s qualifications and ability are relatively equal. 23.30.100 Outside employment. No full-time employee shall accept outside employment, whether part-time, temporary, or permanent that could reasonably interfere, conflict, or negatively reflect on the City. It is the individual employee’s responsibility to ensure compliance with this section. Approval of the individual’s department head is required before acceptance of outside employment. 23.30.110 Travel [E]Expense. When employees are required to travel outside the City on City business, reimbursement, subject to advances received, for expenditures incurred shall be determined as follows: (a) Prior to traveling outside the City, the employee shall obtain permission for the trip and the mode of travel from the department head. (b) Travel on official business outside the City by one (1) individual shall be via public carrier or City-owned vehicle whenever practical. If, for extenuating circumstances, the employee is authorized to use a private vehicle, total mileage shall be paid at the standard IRS mileage rate. This rate includes all travel, insurance and fuel. (c) [THOSE]Classified and Department Head Service employees who [HABITUALLY]often use their privately-owned vehicle for City business shall be reimbursed thirty dollars ($30.00) per month, subject to authorization by the City Manager. (d) The authorized per diem rates are fifty dollars ($50.00) per full twenty-four (24) hour day, plus lodging expenses. Part days will be reimbursed for actual costs incurred, up to fifty dollars ($50.00) per day. Claims for lodging expenses will be supported by receipts. 23.30.120 Moving [E]Expense for [N]New [E]Employees. (a) [WHENEVER A PROFESSIONAL OR TECHNICALLY TRAINED PERSON CHANGES HIS OR HER PLACE OF RESIDENCE MORE THAN FIFTY (50) MILES, FOR THE PURPOSE OF ACCEPTING EMPLOYMENT WITH THE CITY, SUCH A PERSON MAY BE REIMBURSED FOR ACTUAL AND NECESSARY EXPENSES UNDER THE FOLLOWING CONDITIONS:] At the City Manager’s discretion moving expenses for new employees may be reimbursed for actual and necessary expenses under the following conditions: (1) The employee must be appointed to a position or a class for which the City Manager certifies that such expenditure is necessary to recruit qualified employees and funded by the Council. (2) The maximum reimbursable shall be subject to negotiation at the time of an offer of acceptance of appointment. [(3) TO BE ELIGIBLE FOR THE TOTAL ALLOWANCE FOR AN EMPLOYEE WHO IS THE HEAD OF A HOUSEHOLD, HIS OR HER DEPENDENTS MUST ACCOMPANY
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Page 37 of 57 Ordinance No. 3018-2018 HIM OR HER OR JOIN HIM OR HER WITHIN ONE (1) YEAR OF THE DATE OF HIS OR HER APPOINTMENT.] [4](3) New employees who are assisted with their moving expenses shall be required to sign a Transportation Agreement prior to employment. The Transportation Agreement stipulates that the employee will reimburse the City for all or part of such expenditures in the event of voluntarily leaving City service within a period of two [(2)] years according to the following schedule: 100%—Less than six (6) months. 75%—Six (6) months, but less than twelve (12) months. 50%—Twelve (12) months, but less than eighteen (18) months. 25%—Eighteen (18) months, but less than twenty-four (24) months. 0%—Two (2) years and over. (b) New employees may not be given an advance against moving expenses without prior written approval of the City Manager. 23.30.130 In-service training. (a) The City Manager shall encourage training opportunities for employees and supervisors in order that services rendered to the City will be more effective. He or she shall assist department heads in meeting training programs designed to meet immediate City-wide personnel needs and to prepare employees for promotion to positions of greater responsibility. (b) Training sessions may be conducted during regular working hours at the discretion of department heads. 23.30.140 Relatives in [C]City [S]Service. (a) Two (2) members of an immediate family (spouse, children, brother, sister, in-laws or parents) shall not be employed under the same immediate supervisor. Neither shall two (2) members of an immediate family be employed at the same time regardless of the administrative department, if such employment will result in an employee supervising a member of his or her immediate family. This section shall not be construed to prohibit employment by the City of relatives of City Council members. (b) The provisions of this section shall apply to promotions, demotions, transfers, reinstatements, and new appointments. [(C) COHABITATION BY ADULTS OF THE OPPOSITE SEX PRESUMES A FAMILY RELATIONSHIP AND SHALL BE CONSTRUED AS SUCH.] Chapter 23.35 - GENERAL CONDUCT, DISCIPLINE, TERMINATION, AND APPEAL 23.35.010 Personal appearance and conduct. (a) Public relations shall be an integral part of each employee’s job. (b) All employees shall be neat and clean in appearance and shall conduct themselves in a manner which is appropriate for an employee in public service. Departmental regulations may impose reasonable specific standards of dress and appearance. (c) Employees shall be courteous, efficient and helpful to everyone in their work and shall do the best job possible on every assignment.
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23.35.020 Causes for [W]Warning, [S]Suspension, or [D]Dismissal. (a) When an employee[’s] in the Classified Service demonstrates conduct that falls below desirable standards, he or she may be subject to disciplinary action. (b) General reasons for which an employee may be disciplined include: (1) Drinking intoxicating beverages on the job or arriving on the job under the influence of intoxicating beverages. (2) Use, consumption, or possession of marijuana (including every compound, manufacture, derivative, mixture, or preparation of the plant, its seeds or its resin, including marijuana concentrate), on the job or arriving on the job impaired by the same, unless the employee has a medical prescription for marijuana from a licensed medical practitioner as a part of a medical treatment and can perform work unimpaired. (3) Illegal use, consumption or possession of any controlled or illegal substance on the job or arriving on the job impaired by the same. (4) Ingestion, of any prescription or over the counter medication in amounts beyond the prescribed or recommended dosage on the job, or arriving on the job impaired by the same. Employees shall notify their immediate supervisor when required to use prescription medicine that they have been informed has the potential to impair job performance. (5) Violation of a lawful duty. (6) Insubordination. (7) Breach of discipline. (8) Being absent from work without first notifying and securing permission from the employee’s supervisors. (9) Being habitually absent or tardy for any reason. (10) Misconduct. (11) Conviction of a felony or a misdemeanor involving moral turpitude. (12) Using religious, political, or fraternal influence. (13) Accepting fees, gifts, or other valuable things in the return for performance of the employee’s official duties for the City. (14) Inability to perform the assigned job. (15) Political activity as restricted by the Charter. (16) Failure to follow the City’s Drug, Alcohol, and Marijuana policy as set forth in the City of Kenai Employee Handbook. (17) Knowingly or negligently failing to follow Federal and State occupational safety and health regulations and City law and policy regarding the same. 23.35.030 Forms of [D]Disciplinary [A]Action. (a) Disciplinary action for employees in the classified service ranges from oral or written reprimands to suspension, demotion, and finally dismissal from the City service, and depends on the severity of the offense as well as the number and the frequency of previous acts of misconduct. (b) It shall be the duty of all City employees to comply with and to assist in carrying into effect the provisions of the City’s personnel rules and regulations. No employee in the classified service shall be disciplined except for violation of established rules and regulations, and such discipline shall be in accordance with procedures established by the personnel rules and regulations.
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Page 39 of 57 Ordinance No. 3018-2018 (c) Every department head shall discuss improper or inadequate performance with the employee in order to correct the deficiencies and to avoid the need to exercise disciplinary action. Where appropriate, disciplinary action shall be of increasing severity. (d) A written notice shall be given each employee in the classified service for each written disciplinary action stating the reasons for the disciplinary action and the date it shall take effect. The notice shall be given to the employee at the time such action is taken. A copy of the notice signed by the employee shall be placed in the employee’s personnel file and shall serve as prima facie evidence of delivery. (e) All regular employees in the classified service shall have the right to appeal disciplinary action taken against them within five (5) working days after receipt of notice by employee of the disciplinary action. Appeals shall be made as grievances in accordance with the provisions of KMC 23.35.040 except that appeals from suspension, demotion, or dismissal shall be made directly to a Personnel Board selected from the Arbitration Panel provided in KMC 23.35.032 by filing such appeal in writing with the City Clerk, setting forth the background, the disciplinary action, and the reasons why the disciplinary action is felt to be unjust. 23.35.032 Arbitration [P]Panel. (a) There is hereby established an Arbitration Panel consisting of twelve (12) members who shall be chosen by the City Council from nominees made by City employees and by members of the City Council. (b) A member of the Arbitration Panel must be a resident of the City of Kenai and must not hold any other office or position in the government of the City of Kenai. (c) Members of the panel shall serve for indefinite terms until termination by the Council, resignation by the member, death, move from the City of Kenai, election, or appointment as an officer or employee of the City of Kenai, or incapacity of the member. (d) By adoption of the ordinance codified in this chapter, the city hereby waives any claim or cause of action it might have against any member of the Arbitration Panel based on his or her service thereon or on a Personnel Board. Any employee in the classified service, by filing an appeal under the provisions of this chapter, likewise waives any claim or cause of action such employee might have against any member of the Arbitration Panel based on his or her service thereon or on a Personnel Board, and if requested such employee will execute and file a formal waiver at time of filing appeal. 23.35.034 Procedures on [A]Appeal. (a) Within five (5) working days after the filing of a written appeal with the City Clerk, the City Manager or the designee of the City Manager shall file with the City Clerk an answer in writing to the appeal setting forth any facts which might be in dispute in the appeal, and setting forth the reasons why the actions are believed to be justified and the City Manager or his or her designee shall serve a copy of the answer on the employee in person or by ordinary mail to employee’s home address. (b) Promptly after the appeal is filed, the City Clerk shall deliver a copy of the appeal to the City Manager. (c) The members of the Arbitration Panel shall be listed in alphabetical order, and will be called in rotation. Any member passed over because of illness or absence, or disqualified by an appealing employee in the classified service or the administration, shall be treated as though he or she has served on the Personnel Board and will not be called again until his or
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Page 40 of 57 Ordinance No. 3018-2018 her name comes up in the normal rotation. As soon as an appeal is filed with the City Clerk, the City Clerk will make contact and determine the next five (5) members of the panel due and available for service during the following three (3) weeks, and shall notify the appealing employee of the five (5) members due for service. The appealing employee will advise the City Clerk within two (2) working days which member the employee wishes deleted from the list, and the City Clerk will then notify the City Manager or his or her designee of the four (4) remaining members due for service. The City Manager or his or her designee will advise the Clerk within one (1) working day of the name of the member the administration wishes to delete from the list. Thereafter, the Clerk will notify the two (2) members of their disqualification and the other three (3) members as to being chosen for service and will determine a date, time, and place when all three members may assemble for hearing, and will then notify the appealing employee in the classified service and the City Manager or designee of such date, time, and place of hearing. (d) At the time of hearing, the employee in the classified service shall present any written evidence, oral testimony, or witnesses that he or she desires, and thereafter the City Manager or designee shall present evidence, oral testimony, or witnesses as he or she deems fit, following which the parties may continue to present rebuttal testimony alternately until neither side has anything further to present. (e) After completion of presentation of testimony, the appealing employee in the classified service may make any statement he or she desires by way of argument, which may be answered by the City Manager or designee, and the appealing employee shall then have a final closing argument if he or she so desires. (f) If any member of the Personnel Board feels it necessary or desirable, he or she may call additional witnesses or call for presentation of additional testimony, adjourning the hearing to a future time for such presentation if necessary. (g) After presentation of all evidence and arguments, the Personnel Board shall go into executive session to make a determination of the appeal, and the Personnel Board shall make written findings of fact and conclusions as to the justness of the disciplinary action. (h) There shall be no formal restrictions on the kind of or form of evidence presented so long as it is pertinent to the appeal and is not unduly repetitive, but the Personnel Board by majority vote may limit repetitive evidence and may restrict evidence to matters pertinent to the hearing and to evidence which they would find credible. (i) The Personnel Board has power to uphold the disciplinary action, to set aside the disciplinary action completely restoring the appealing employee in the classified service to his or her former position and to any and all pay which may have been lost because of the disciplinary action, or if the Personnel Board feels it necessary in the interest of justice that some disciplinary action be taken but that the particular disciplinary action was too extreme, it shall determine what the proper disciplinary action should be. (j) The decision of the Personnel Board may be made by a majority of the Board and shall be final and binding on the employee and on the City. (k) Copies of the appeal, the answer to the appeal, and the written decision of the Personnel Board shall become a part of the personnel file of the appealing employee. 23.35.040 Grievance [P]Procedure. (a) [THE]For employees in the classified service, the City shall promptly consider and equitably adjust employee grievances relating to employment conditions and relationships. Furthermore, the City desires to adjust the causes of grievances informally, both supervisors
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Page 41 of 57 Ordinance No. 3018-2018 and non-supervisory employees in the classified service are expected to resolve problems as they arise. (b) The following steps shall be followed in submitting and processing a grievance for employees in the classified service: (1) Step 1—The aggrieved employee in the classified service or group of employees in the classified service shall orally present the grievance to the immediate supervisor within five (5) working days of the occurrence, not including the date of presentation. (2) Step 2—If the grievance is not settled in Step 1, it shall be prepared in detail, shall be reduced to writing, shall be dated, shall be signed by the aggrieved employee in the classified service or group of employees in the classified service, and shall be presented to the department head within five (5) working days after the supervisor’s oral reply is given, not including the day that the answer is given. (3) Step 3—If the grievance is not settled in Step 2, the written grievance shall be presented along with all pertinent correspondence, records, and information accumulated to date to the City Manager within seven (7) working days after the department head’s response is given, not including the day that the response is given. The City Manager shall meet with the aggrieved employee or group of employees, the immediate supervisor and the department head. The City Manager shall reply to the grievance in writing within seven (7) working days of the date of presentation of the written grievance. The decision of the City Manager shall be final and binding on the employee or group of employees. (c) If the grievance procedures are not initiated within the time limits established by this section, the grievance shall be considered not to have existed. (d) Any grievance not taken to the next step of the grievance procedure shall be considered settled on the basis of the last reply made and received in accordance with the provisions of this section. (e) If the City fails to meet or answer any grievance within the time limits prescribed for such action by this section, such grievance shall automatically advance to the next step. If the City fails to meet or answer any grievance on the last step of the grievance procedure within the time limits prescribed for such action by this section, it shall be deemed that the City has considered the grievance to be in favor of the grievant and shall resolve the matter accordingly. (f) The time limits prescribed in this section for the initiation and completion of the steps of the grievance procedure may be extended by mutual consent of the parties so involved. Likewise, any step in the grievance procedure may be eliminated by mutual consent. Mutual consent shall be indicated in writing and shall be signed by all parties involved. No employee shall be disciplined or discriminated against in any way because of the employee’s proper use of the grievance procedure. 23.35.050 Resignation. (a) To resign in good standing, an employee shall give the appointing authority not less than ten (10) working days prior notice of such resignation unless the appointing authority agreed to permit a shorter period of notice because of extenuating circumstances. The notice of resignation shall be in writing and shall contain the reasons for leaving the City service. (b) Failure to comply with this section shall be entered in the employee’s service record and may be cause for denying future employment with the City.
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Page 42 of 57 Ordinance No. 3018-2018 23.35.060 Re-employment. (Ords. 336-77(a), 537, Repealed Ord. 1254) 23.35.070 Cost consciousness. (a) City employees shall practice every economy possible in the discharge of their duties. (b) Employees are encouraged to recommend to their supervisors work procedures which will result in a cost saving or improved service to the public. 23.35.080 Safety. (a) The City Manager shall be responsible for the development and maintenance of a safety program, equal to, but not limited to, OSHA requirements. Such program shall include safety regulations and discipline controls. (b) Department heads, supervisors, and employees shall guard the safety of themselves, fellow employees, and the public. (c) When accidents occur on City property, the employee shall contact his or her supervisor immediately and the supervisor shall complete an accident form. In case of a motor vehicle accident, the Police Department shall also be notified immediately. (d) The City Manager shall be notified of all accidents involving City employees and City equipment as soon as possible and not later than the next work day. 23.35.090 Legal liability. (a) Employees shall abide by all laws and regulations which govern the performance of their duties, and shall perform their duties as reasonable, prudent persons. Defense of legal claims against an employee relating to an official status with the City, shall be the responsibility of the City. (b) If an employee is grossly negligent in the performance of duties and responsibilities and if an accident results from such negligent performance of duties and responsibilities or if a court of law finds that the employee willfully exceeded his or her scope of duty and responsibility, the employee may be held personally and legally liable. Chapter 23.40 - BENEFITS 23.40.010 General. (a) All non-temporary, full-time,[AND] non-temporary part-time (fifteen (15) hours and over per week) classified and Department Head Service employees are entitled to the following benefits, except for medical and hospital insurance which shall be available to non-temporary employees working no less than twenty-five (25) hours per week, as specified in this article. (b) An employee hired under the State of Alaska’s Mature Alaskans Seeking Skills Training (MASST) program shall receive only Social Security, Medicare (KMC 23.40.130), Workers Compensation (KMC 23.40.110) and family leave (KMC 23.40.130) benefits. The other benefits in KMC 23.40 shall not apply to persons hired under the MASST program. The hourly wage paid a MASST employee shall be as set by the State of Alaska, but not less than minimum wage. (c) Seasonal employees are eligible to participate in the State Public Employees’ Retirement System.
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Page 43 of 57 Ordinance No. 3018-2018 23.40.020 Holidays. (a) Employees shall be entitled to the holidays listed below with pay. Full-time employees shall receive regular compensation; part-time employees shall be compensated in proportion to the number of hours they are normally scheduled to work. (1) New Year’s Day (2) Washington’s Birthday (the third Monday in February) (3) Memorial Day (the last Monday in May) (4) Independence Day (5) Labor Day (6) Alaska Day (7) Veterans Day (8) Thanksgiving Day (9) Day after Thanksgiving (10) Christmas Day (11) A floating holiday subject to individual choice of each employee with five (5) working days notice to, and approval of, his or her immediate supervisor. (b) If any such holiday falls on a Sunday, the following Monday shall be given as a holiday. If such holiday falls on a Saturday, the preceding Friday shall be given as a holiday. (c) Public Safety and Sewer Treatment Plant employees who normally work holidays shall receive a payment for authorized holidays at one and one-half (1-1/2) times their normal hourly pay as follows: Fire (7(k) work period): 11.2 hours pay per holiday. Police, Communications, and Fire (forty (40) hour week): eight(8) hours pay per holiday. Sewer Treatment Plant Employees (forty (40) hour week): eight(8) hours pay per holiday. Holidays which occur during annual leave shall be charged against such leave. 23.40.030 Annual [L]Leave. (a) Annual leave is a combined vacation and sick leave. (b) Accrual rate: (1) Full-time [CLASSIFIED] employees except certain Fire Department employees: 7.3846 hours bi-weekly—first two (2) years of service. 8.3077 hours bi-weekly—three (3) through five (5) years of service. 9.2308 hours bi-weekly—six (6) through ten (10) years of service. 10.1538 hours bi-weekly—more than ten (10) years of service. (2) Fire (7(k) work period): 10.3385 hours bi-weekly—first two (2) years of service. 11.6308 hours bi-weekly—three (3) through five (5) years of service. 12.9231 hours bi-weekly—six (6) through ten (10) years of service. 14.2154 hours bi-weekly—more than ten (10) years of service. (c) Annual leave is charged on an hour-for-hour basis; i.e., normal work day of eight (8) hours would be charged at eight (8) hours annual leave; twelve (12) hour work day, twelve (12) hours annual leave; ten (10) hour work day, ten (10) hours annual leave; twenty-four (24) hour work day, twenty-four (24) hours annual leave. (d) Leave continues to accrue during the period of time an employee is on paid leave except during periods of terminal leave (leave time after which the employee does not intend to return to work). Leave does not accrue during periods of leave without pay.
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Page 44 of 57 Ordinance No. 3018-2018 (e) Accrued and unused leave may be carried over from one (1) year to the next for the purpose of accumulating an annual leave account or reserve. The maximum leave hours that may be accrued is six hundred forty (640) hours for classified, [AND] unclassified, and Department Head service employees, and eight hundred ninety-six (896) hours for Fire Department employees working a 7(k) work period. (f) Annual leave may be used for any purpose desired by the employee. Incidental absences for sickness as unplanned are not controllable. However, planned absences must be coordinated with and approved by the appropriate department head. (g) It is required that each employee use a minimum of eighty (80) hours of leave per calendar year for employees working forty (40) hours per week, and one hundred twelve (112) hours for employees working a 7(k) work period, and affect appropriate coordination with the department head. If actual hours used are less than the minimum requirement, then the difference shall be deducted from available leave hours without any compensation to the employee. (h) Excess leave above the amount authorized for accrual (subsections (a) through (e)) existing on December 31st shall automatically be paid at the then existing rate for the individual employee. (i) Department heads shall schedule vacations for their respective employees with due consideration for the desires of the employees and the work requirements facing the department. Vacation schedules may be amended to allow the department to meet emergency situations. (j) In the event of significant illness or injury not covered by workers’ compensation, or absence due to training or education an employee on exhausting annual leave may, with the approval of the City Manager, borrow up to a six (6) month entitlement (i.e., thirteen (13) x 7.3846 hours) to avoid a no-pay status. In the event the person’s employment with the City ends prior to the borrowed leave being repaid, the employee must reimburse the City for the value of any leave not repaid. The City may deduct the value of any leave not repaid from the employee’s final paycheck. (k) Part-time employees working fifteen (15) hours a week or more shall accrue at the same rate as a full-time employee except on a proportional basis as to hours. (l) [SUPERVISORY AND PROFESSIONAL POSITIONS OF THE CLASSIFIED AND EXEMPT SERVICES]Employees considered to be exempt from the provisions of the Fair Labor Standards Act shall have annual leave charged on an eight (8) hour/whole day basis. If any such employee is present for work during any portion of a day, that employee shall not be charged annual leave for that day. Conversely, if any such employee is absent from her or his normal place of work for an entire day (excluding Saturdays, Sundays, and holidays) that employee will be charged eight (8) hours of annual leave for that day. 23.40.035 Bona fide employer-sponsored medical leave sharing arrangement. (a) Intent. It is the intent of the City to provide a bona fide employer-sponsored medical leave sharing arrangement, allowing its eligible employees to donate accrued annual leave to employees who are eligible to receive such leave for medical emergencies as follows: (1) Requests for leave donations must be made by the employee through the Human Resource office in writing. Approved requests will be forwarded by the Human Resource office to all employees with a cut-off date for donations. Forwarded requests shall only include information that:
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Page 45 of 57 Ordinance No. 3018-2018 (A) The requesting employee has made a request for leave under this section of code; (B) The amount of leave requested; (C) Generic procedural information; and (D) No protected health information or specific factual information may be disclosed. (2) Only accrued annual leave may be donated. Donations must be in whole hour increments of no less than two (2) hours. Employees donating leave must have and maintain a minimum of forty (40) hours of accrued annual leave in their leave accounts. The identity of employees donating or not donating leave will not be disclosed. Probationary employees and employees working less than fifteen (15) hours a week may not donate or receive donated leave. (3) All leave will be donated into an employee leave bank and received on an hourfor-hour basis without consideration of individual City wages. (4) Leave donations will be used in order of receipt by the City’s Human Resource office. Leave will be transferred as needed into the employee leave bank. Employees receiving donated leave may not cash out any donated leave. (5) Only employees who have exhausted all annual leave are eligible to receive donated leave. Donated leave can only be used for a medical emergency defined as a condition of the employee or employee’s spouse, parent, or child, including bereavement for a spouse, parent or child, that will require the prolonged absence, including intermittent absences, of the employee from duty and will result in a substantial loss of income to the employee, because the employee will have exhausted all annual leave. (6) Donated leave will not count towards the minimum hours of leave each employee must use each calendar year. (7) The City Manager shall create any necessary complimentary policies and forms to implement this section of code. 23.40.040 Terminal [L]Leave. Upon separation during initial probation (first six (6) months for Police, Fire and Communication), accrued annual leave shall not be granted nor paid to [THE] employee’s in the classified service. In other separations, accrued leave shall be paid in a lump sum. The salary or hourly rate to be used in computing the cash payment shall be the rate which is being received by the employee on the date the resignation/separation is signed by the employee. 23.40.050 Leave of absence without pay. (a) Leave without pay may be granted to an employee upon recommendation of the department head and approval of the City manager for up to one hundred eighty (180) days. Each request for such leave shall be considered in the light of the reasons for the request and of the needs of the organization. Leave of absence without pay is not authorized or permitted for other employment. Leave without pay shall not be requested nor granted until such time as all accrued annual leave has been exhausted, except when an employee is absent and drawing workers’ compensation pay. (b) If an employee uses more than thirty (30) days total leave without pay during his or her leave year, his or her merit anniversary and length of service dates shall be advanced on the calendar as follows: The number of days the leave without pay exceeds thirty (30) days are
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Page 46 of 57 Ordinance No. 3018-2018 added to the anniversary date to arrive at an extended anniversary date. A new anniversary date is then established on the first day of the month closest to the extended anniversary date. (c) During a period of leave without pay, the employee’s benefits shall be in abeyance. Cost of maintenance of health and related benefits will be at the personal expense of the employee and must be prepaid via the City to insure continued coverage. 23.40.060 Leave of [A]Absence with [P]Pay. (a) Employees may request leave of absence with pay for: (1) Witness or Jury Duty. When a City employee is called for jury duty or is subpoenaed as a witness, he or she shall not suffer any loss of his or her regular City compensation during such absence; however, he or she shall be required to transfer any compensation he or she receives for the performance of such duty to the City. Time not worked because of such duty shall not affect annual leave accrual. (2) Military Leave. Employee’s shall be eligible for military leave or associated benefits in compliance with State and Federal law. [AN EMPLOYEE WHO HAS COMPLETED THE PROBATIONARY PERIOD AND WHO IS A MEMBER OF THE NATIONAL GUARD OR RESERVE COMPONENT OF THE ARMED FORCES OF THE UNITED STATES OR OF THE UNITED STATES PUBLIC HEALTH SERVICE SHALL BE ENTITLED, UPON APPLICATION, TO A LEAVE OF ABSENCE FROM CITY SERVICE FOR ONE (1) PERIOD NOT EXCEEDING FIFTEEN (15) CONSECUTIVE DAYS IN ANY ONE (1) CALENDAR YEAR. HOWEVER, BECAUSE POLICE, FIRE, AND COMMUNICATIONS EMPLOYEES HAVE A TWELVE (12) MONTH PROBATIONARY PERIOD RATHER THAN THE SIX (6) MONTH PROBATIONARY PERIOD FOR OTHER CLASSIFIED EMPLOYEES, THEY SHALL BE ELIGIBLE FOR MILITARY LEAVE AFTER SIX (6) MONTHS OF SERVICE. SUCH LEAVE SHALL BE GRANTED WITHOUT LOSS OF TIME, PAY (DIFFERENCE BETWEEN REGULAR AND MILITARY PAY INCLUDING COLA, BUT NOT INCLUDING OTHER REGULAR ALLOWANCES), OR OTHER LEAVE, AND WITHOUT IMPAIRMENT OF MERIT RATINGS OR OTHER RIGHTS OR BENEFITS TO WHICH HE OR SHE IS ENTITLED. MILITARY LEAVE WITH PAY SHALL BE GRANTED ONLY WHEN AN EMPLOYEE RECEIVES BONA FIDE ORDERS TO TEMPORARY ACTIVE OR TRAINING DUTY, AND SHALL NOT BE PAID IF THE EMPLOYEE DOES NOT RETURN TO HIS OR HER POSITION IMMEDIATELY FOLLOWING THE EXPIRATION OF THE PERIOD FOR WHICH HE OR SHE WAS ORDERED TO DUTY.] (3) Conferences, Conventions and Other Related City Business. Decisions concerning attendance at conferences, conventions, or other functions pertaining to City business at City expense shall be made by the department heads with the approval of the City Manager. Permission shall be granted on the basis of an employee’s participation in or the direct relationship of the function to the City. Members of professional societies may be permitted to attend meetings of their society when such attendance is considered to be in the best interest of the City. (4) Death in the Immediate Family. Leave of absence with pay is provided to assist an employee who must be absent from work as a result of a death in the immediate family. The employee’s absence would be for funeral attendance, or to handle matters arising due to the death of an immediate family member, that cannot practicably be taken care of outside of regular business hours. Upon the City Manager’s approval,
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Page 47 of 57 Ordinance No. 3018-2018 employees shall be entitled to the following leave, which will not directly affect their personal leave account: three (3) working days, up to twenty-four (24) hours maximum. 23.40.070 Educational opportunities. (a) The City shall reimburse an employee for the full amount of tuition for courses directly related to the employee’s work and conducted outside the employee’s regular working hours, provided that: (1) Funds for such expenditures are available in the current budget; (2) The employee has made application for approval of the course to his or her department head and the department head subsequently gives such approval; and (3) The employee submits evidence of satisfactory completion of the course; and (4) The employee is not receiving reimbursement for tuition from any other source. (b) Courses which are only offered during regular working hours maybe approved by the department head with full tuition reimbursement therefor provided time off can be arranged conveniently and reasonable arrangements can be made to make up time off. (c) The City shall allow time off with pay and shall reimburse an employee for the expenses of attending classes, lectures, conferences, or conventions when attendance is on an assignment basis with prior approval of the employee’s department head. (d) Normally, the cost of textbooks and technical publications required for such courses shall be the responsibility of the employee. If the City purchases any of the textbooks and publications for such courses, the textbooks and publications shall become the property of the City. 23.40.080 Retirement. Eligible employees are required to participate in the State Public Employees’ Retirement System (PERS) unless the employee’s category or class of employment has been exempted by amendment to the City’s PERS Participation Agreement. Amendment to the City’s PERS Participation Agreement for the purpose of exempting a class or category of employees must be authorized by Resolution of the City Council. 23.40.090 Retirement age. As authorized and required by Public Employees Retirement System. 23.40.095 Supplemental retirement. All employees with six (6) months of service regularly scheduled to work fifteen (15) hours or more per week shall be eligible to participate in a supplemental retirement program to be selected by the City Manager. The City’s contribution on behalf of each eligible employee shall be four percent (4%) of the first thirty-seven thousand five hundred dollars ($37,500.00) of base wages earned in a calendar year. The contribution shall not apply to additional compensation to employees, such as overtime pay, holiday pay, and qualification pay. 23.40.100 Social security. Employees hired after April 1, 1986 must participate in the Medicare portion of Social Security taxes, as required by the Federal government.
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Page 48 of 57 Ordinance No. 3018-2018 23.40.110 Industrial accidents. All employees shall be covered under the State of Alaska workers’ compensation program for industrial accidents and disease. Benefits include medical treatment and care as well as disability compensation during the periods of time lost from the job. 23.40.120 Medical and hospital insurance. Medical and hospital insurance shall be provided by a group policy for all employees with a percentage of plan costs paid by the City and a percentage paid by the employee unless the employee declines such coverage. Life, major medical, dental, and vision insurance are included as part of group insurance. The percentage of plan costs paid by the City and employees, respectively, shall be approved by the Council annually during the budget process, or as otherwise necessary after consideration of a recommendation and any alternatives submitted by the City Manager. 23.40.130 Family leave. (a) An employee is eligible to take family leave if the employee has been employed for: (1) at least thirty-five (35) hours a week for at least six (6) consecutive months immediately preceding the leave; or (2) at least seventeen and one-half (17.5) hours per week for twelve (12) consecutive months immediately preceding the leave; or (3) at least one (1) year immediately preceding the leave during which the employee has worked at least one thousand two hundred fifty (1,250) hours. The leave may be unpaid leave. However, the employee must exhaust all accrued annual leave before unpaid leave is allowed. The City shall permit an employee to take family leave for a total of eighteen (18) work weeks within a twelve (12) month period because of a serious health condition or pregnancy and childbirth, adoption or foster placement. The right to take family leave for pregnancy and childbirth, adoption or foster placement of a child expires one (1) year after the birth or placement of the child. An eligible employee is entitled to take family leave: (1) Because of pregnancy and the birth of a child of the employee or the placement of a child, other than employee’s stepchild, with the employee for adoption or foster care; (2) In order to care for the employee’s child, spouse, or parent who has a serious health condition; in this paragraph, “child” includes the employee’s biological, adopted, or foster child, stepchild, or legal ward; and (3) Because of the employee’s own serious health condition. (b) If a parent or child of two (2) employees employed by the City has a serious health condition, the City is not required to grant family leave to both employees simultaneously. (c) During the time that an employee is on leave under this section, the employer shall maintain at its expense coverage under any group health plan at the level and under the conditions that coverage would have been provided if the employee had been employed continuously from the date the leave began to the date the employee returns from leave. (d) At the expiration of leave granted under this section, the City shall restore the employee to the same or a substantially similar position with the same benefits, pay, and other terms and conditions of employment. 23.40.140 Employee transfer. (a) A pregnant employee may request a transfer to a suitable position under this section. The City may not fill the position with a person other than the requesting employee until the
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Page 49 of 57 Ordinance No. 3018-2018 employer has offered the position to the employee and the employee has refused the offer. A position is suitable if: (1) It is an existing unfilled position in the same administrative division in which the employee is currently employed and is less strenuous or less hazardous than the employee’s current position; (2) Transfer is recommended by a licensed health care provider; (3) The employee is qualified and immediately able to perform the duties of the position; and (4) The transfer will not subject the City to legal liability under an employment contract. (b) An employer shall compensate an employee who receives a transfer under this section at a rate, as adjusted by changes to compensation that apply generally to the work force, at which the position into which the employee transfers is compensated. [23.40.150 DEFINITIONS. IN KMC 23.40.130 THROUGH 23.40.140: (A) “CHILD” MEANS AN INDIVIDUAL WHO IS: (1) UNDER EIGHTEEN (18) YEARS OF AGE; OR (2) EIGHTEEN (18) YEARS OF AGE OR OLDER AND INCAPABLE OF SELF-CARE BECAUSE OF MENTAL OR PHYSICAL DISABILITY. (B) “HEALTH CARE PROVIDER” MEANS: (1) A PHYSICIAN LICENSED UNDER AS 08.64, OR A DENTIST LICENSED UNDER AS 08.36, OR A PSYCHOLOGIST LICENSED UNDER AS 08.86; OR (2) ANY OTHER PERSON DETERMINED BY THE SECRETARY OF LABOR TO BE CAPABLE OF PROVIDING HEALTH CARE SERVICES. (C) “LICENSED HEALTH CARE PROVIDER” MEANS A PHYSICIAN LICENSED UNDER AS 08.64 OR A PSYCHOLOGIST LICENSED UNDER AS 08.86. (D) “PARENT” MEANS A BIOLOGICAL OR ADOPTIVE PARENT, A PARENT-IN-LAW, OR A STEP-PARENT. (E) “SERIOUS HEALTH CONDITION” MEANS AN ILLNESS, INJURY, IMPAIRMENT, OR PHYSICAL OR MENTAL CONDITION THAT INVOLVES: (1) INPATIENT CARE IN A HOSPITAL, HOSPICE, OR RESIDENTIAL HEALTH CARE FACILITY; OR (2) CONTINUING TREATMENT OR CONTINUING SUPERVISION BY A HEALTH CARE PROVIDER. (F) “SPOUSE” MEANS SOMEONE WITH WHOM THE EMPLOYEE HAS AN EXISTING VALID MARRIAGE AS SET FORTH UNDER AS 25.05 AND SPECIFICALLY DOES NOT INCLUDE AN UNMARRIED DOMESTIC PARTNER OF THE EMPLOYEE. (G) “IMMEDIATE FAMILY” INCLUDES MOTHER, FATHER, SPOUSE, CHILDREN, BROTHER, SISTER, MOTHER/FATHER-IN-LAW. THE CITY MANAGER MAY DETERMINE “OTHER INDIVIDUALS” ARE IMMEDIATE FAMILY, PARENTS, CHILDREN, SIBLINGS AND OTHERS INVOLVED IN THE SIGNIFICANT RAISING.] Chapter 23.45 - PERFORMANCE EVALUATION 23.45.010 Purpose. The primary purpose of the employee performance evaluation program is to inform employees how well they are performing and to offer constructive criticism on how they can improve their work performance. Performance evaluation shall also be considered in decisions affecting pay advancement, promotions, demotions, dismissals, order of layoff, order of reemployment, placement, and training needs.
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Page 50 of 57 Ordinance No. 3018-2018
23.45.020 Periods of Evaluation. Each employee [IN THE CLASSIFIED SERVICE] shall have his or her performance evaluated at the following periods: (a) End of Probationary Period. Each employee in the classified service shall be evaluated thirty [(30)] days prior to the completion of his or her probationary period. The employee must have an overall evaluation of at least “Meets Expectations” in order to become permanent or, in the case of seasonal employees, be eligible for the next season’s employment. (b) Annual. Each employee shall receive an annual performance evaluation thirty [(30)] days prior to his or her anniversary date[.] and thirty days prior to the end of each season for seasonal employees. (c) Time of Separation. Each employee shall be evaluated at the time of separation and such record shall become part of his or her permanent personnel file. 23.45.030 Performance [E]Evaluators. (a) Rating Officer. The rating officer shall normally be the employee’s immediate supervisor. The rating officer shall be responsible for completing a performance evaluation report at the time prescribed for each employee under his or her supervision. (b) Reviewing Officer. The reviewing officer shall normally be the rating officer’s immediate supervisor or department head. The reviewing officer shall review the performance evaluation report completed by each rating officer under his or her jurisdiction before the report is discussed with the employee. The reviewing officer shall consider the performance evaluations completed by the rating officer in evaluating the rating officer’s performance. (c) Department Heads shall be evaluated by the City Manager. 23.45.040 Review of [P]Performance [R]Reports for Employees in the Classified Service. The rating officer shall discuss the performance evaluation report with the employee in the classified service before the report is made part of the employee’s permanent record. If the rating officer plans to recommend the denial of an in-grade pay increment or recommend an extraordinary increment, the report must be discussed with the reviewing officer and the City Manager prior to review with the employee. 23.45.050 Unsatisfactory [E]Evaluation for Employees in the Classified Service. Employees in the classified service who receive an overall rating of “Unsatisfactory” or “Needs Improvement” on their annual evaluation shall not be eligible to be advanced a step increment at appropriate annual, biennial or quadrennial anniversary dates. Employees in the classified service who receive two [(2)] consecutive overall ratings of “unsatisfactory” shall be subject to dismissal. 23.45.060 Performance [E]Evaluation [A]Appeal [P]Procedure for Employees in the Classified Service. [EMPLOYEES’ P]Performance evaluation reports for employees in the classified service shall not be subject to the standard grievance procedure. Employees in the classified service shall have the right to appeal their evaluation in accordance with the following procedure: (a) Step 1. If, after a review of his or her performance evaluation report with the rating officer, the employee feels that the report is unfair, he or she may request a meeting with the reviewing officer by checking the appropriate section on the report. The rating officer will then
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Page 51 of 57 Ordinance No. 3018-2018 immediately forward the report to the reviewing officer who will arrange to meet with the employee within five (5) working days after receiving the report. The reviewing officer will then forward a decision in writing to the employee within five (5) working days after the date of their meeting. (b) Step 2. In the event that the employee is dissatisfied with the decision of the reviewing officer, he or she may, within five (5) working days of receipt of the decision, appeal his or her performance evaluation report, in writing, to the City Manager. The City Manager shall, within five (5) working days, meet and discuss the report with the employee. The City Manager will, in writing, make a decision within ten (10) working days from the date of their meeting. The decision of the City Manager will be final. Chapter 23.50 - CLASSIFICATION PLAN 23.50.010 Employee [C]Classification. City employees shall be classified by Class, Title, and Pay Range as follows: CLASS CODE
CLASS TITLE
RANGE
(a) SUPERVISORY AND PROFESSIONAL 101 102 103 104 105 106 107 112 117 118 119 120 121 122 123
City Manager City Attorney City Clerk Finance Director* Public Works Director* Police Chief* Fire Chief* Airport Manager* City Planner Information Technology (IT) Manager Human Resource Specialist/Assistant to City Manager Library Director* Senior Center Director* Parks and Recreation Director* Human Resources Officer
NG NG NG 24 23 23 22 20 16 18 15 18 18 17 16
(b) ADMINISTRATIVE SUPPORT 203 204 205 206 210 211 214 218
Administrative Assistant I Accounting Technician I Accounting Technician II Accountant Administrative Assistant II Administrative Assistant III Library Assistant Library Aide
8 10 11 16 9 10 6 2.5
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Page 52 of 57 Ordinance No. 3018-2018 CLASS CODE
CLASS TITLE
RANGE
219
Data Entry Clerk
1.1
(c) PUBLIC SAFETY 302 303 304 305 306 307 311 312 313 314 315 316 317
Fire Fighter Police Lieutenant Police Sergeant Police Officer Public Safety Dispatcher Fire Engineer Fire Captain Fire Marshal Communications Supervisor Police Trainee Battalion Chief/Safety Officer Chief Animal Control Officer Animal Control Officer
13 20 18 16 9 15 16 17 12 16/21 17 11 9
(d) PUBLIC WORKS 401 402 403 404 405 407 408 409 410 412 413 414 417 418 419 420
Building Official Shop Foreman Street Foreman Sewer Treatment Plant Operator Water and Sewer Operator Equipment Operator Shop Mechanic Equipment Lead Operator Water and Sewer Foreman Building Maintenance Technician Sewer Treatment Plant Lead Operator Sewer Treatment Plant Foreman Airport Operations Specialist Airport Operations Supervisor Building Maintenance Lead Technician Water and Sewer Lead Operator
15 16 16 13 13 11 14 14 16 12 14 16 11 15 13 14
(e) GENERAL SERVICES 504 505 506 507 508 509
Parks, Beautification and Recreation Operator Parks, Beautification and Recreation Laborer Cook Activities/Volunteer Coordinator Meals/Driver Kitchen Assistant
9 2.4 2.4 2.4 2.4 2.2
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Page 53 of 57 Ordinance No. 3018-2018 CLASS CODE
CLASS TITLE
RANGE
510 511 512
Outreach Worker Janitor Driver
1.1 2.4 1
* Department Head[S] Service 1 For work performed after February 21, 2009, while attending the Alaska Public Safety Academy in Sitka, a police trainee shall be a paid at a Range 2, Step F. Because of a fluctuating and unpredictable training schedule, he or she shall be considered to work twelve (12) hours per day from Monday through Saturday and eleven (11) hours on Sunday, or the actual number of hours worked, whichever is greater. The normal work schedule at the academy shall be five (5) eight (8) hour shifts from Monday to Friday rather than four (4) ten (10) hour shifts as stated in KMC 23.50.050(b)(l). Chapter 23.55 - PAY PLAN 23.55.010 Exempt salaries. Salaries of City Manager, City Attorney, and City Clerk shall be negotiated by the Council and may be set by motion of Council. 23.55.015 – Department Head Service Salaries. Salaries of employees in the Department Head Service shall be set by the City Manager within the range approved by the City Council as approved through the budget process. 23.55.020 Compensation Structure by Grade for Employees in the Classified Service. (a) Compensation structure by grade for employees in the classified service is hereby established in accordance with the table that is appended to this title and which may be amended, modified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the code at the end of this title. (b) On completion of the probationary period, each permanent full-time employee in the classified service, except seasonal employees, shall be advanced one [(1)] step. At succeeding anniversary dates, subject to evaluation, employees in the classified service may be advanced a step increment subject to City Manager approval. The time period normally between steps B to C to D to E to F is one [(1)] year. The time normally between Steps F to AA to BB to CC is two [(2)] years. (c) On completion of the probationary period, each permanent part-time employee in the classified service and seasonal employee shall be advanced one [(1)] step. At appropriate biennial or quadrennial anniversary dates thereafter, subject to the employee’s most recent annual evaluation being “Meets Expectations” or better, the employee, including seasonal employees, may be advanced a step increment. The time period normally between steps B to C to D to E to F is two [(2)] years. The time period normally between steps F to AA to BB to CC is four [(4)] years.
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Page 54 of 57 Ordinance No. 3018-2018 23.55.030 Qualification pay. (a) In recognition of professional development, personal time, and effort of the individual to achieve same, the following annual recognition entitlement is authorized, payable on a pro rata monthly basis. (b) This recognition entitlement is not considered when calculating hourly rates for annual leave or holiday pay. (1) Police Department. Certification in accordance with State of Alaska Certification Standards. Police Officer Intermediate Certification
$ 900/year
Advanced Certification
$1,800/year
Police Sergeant Intermediate Certification
$ 900/year
Advanced Certification
$1,800/year
Police Lieutenant Advanced Certification
$1,800/year
Police Chief Advanced Certification
$1,800/year
(2) Fire Department. (i) Recognition entitlements for an associate degree in fire science is four hundred eighty dollars ($480.00) per year. Eligible grades are fire fighter, engineer, and captain. (ii) Recognition entitlements for EMT certification for eligible grades of fire fighter, engineer, and captain are as follows: EMT I Instructor
$ 250/year
EMT II
$ 500/year
EMT III
$1,000/year (includes EMT II pay)
EMT-Paramedic
$1,500/year (includes EMT II & III pay)
(iii) Recognition entitlements for driver/operator qualified personnel for eligible grades of fire fighter as follows: Driver/Operator Qualified
One (1) pay range increase (Pay range 13 to Pay range 14)
(3) Water and Sewer Utility. Certification in accordance with the State ofAlaska Certification Standards: W & S II
$ 300/year
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Page 55 of 57 Ordinance No. 3018-2018 W & S III
$ 480/year
(4) City Clerk’s Office. Certification in accordance with International Institute of Municipal Clerks. Certified Municipal Clerk
2.5% of the employee’s base pay
23.55.040 Uniform allowance. (a) The following annual allowances are established to defer the cost of uniform cleaning, maintenance, and replacement for second and succeeding years of service: Police
$800
Fire
$500
Animal Control
$500
Dispatch
$300
Payment shall be made in advance in July and January installments. (b) On hiring, the respective department head shall issue from stock or purchase from appropriate funds a basic uniform and equipment issue. (c) Public Works Departments, Water and Sewer, and Animal Control personnel shall be authorized to purchase from appropriated funds, safety shoes, hard hats, and other OSHA required items. Laundry service will also be provided for those clothing items furnished. 23.55.50 Hourly Rates. (a) Hourly rates for employees in the classified service not exempted from minimum wage and overtime provisions of the Fair Labor Standards Act (with various experience, skills, and responsibilities) are hereby established in accordance with the table that is appended to this title and which may be amended, modified, or replaced by ordinance, in which case a copy of the amended, modified, or replacement table shall be substituted for the prior table and placed in the Code at the end of this title. 23.55.060 Stand-by [P]Pay. (a) Where employees in the classified service are placed on a stand-by status, they shall be entitled to a 5% rate of pay computed against Step A of the pay range of the employee for each hour in stand-by status. (b) To be eligible for stand-by pay, an employee in the classified service must formally be placed on stand-by status, with the approval of the City Manager, and the proper documentation indicating such approval placed in the employee’s personnel records. An employee in stand-by status must be available for call-outs, must be in a location whereby the responsible City personnel can communicate with him or her, and comply with any other requirements of the approved stand-by pay. 23.55.070 Call-out [P]Pay. When employees in the classified service are called out to work outside of normal working hours, they shall be paid a minimum of two [(2)] hours pay at overtime rates. Overtime hours worked immediately prior to, or after, normal working hours will not be considered as a “call-out.”
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Page 56 of 57 Ordinance No. 3018-2018 23.55.080 Longevity [P]Pay for Employees in the Classified Service. All regular employees in the classified service who have received an overall rating of “Meets Expectations” or better in their last performance evaluation and who have been at Step CC for a period of at least two (2) years as of July 31st shall be paid a longevity bonus of two percent (2%) of his or her annual pay rate (i.e., excluding overtime). The longevity pay shall be paid just once a year on the August payroll, except that the longevity bonus in 2008 shall be paid after the effective date of the ordinance codified in this section but prior to the end of the calendar year 2008. Notwithstanding the above, any employee in the classified service who has received a range increase or a non cost of living pay increase within their current pay range within the twelve (12) months prior to July 31st is not eligible for a longevity pay bonus. FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED AND DEPARTMENT HEAD SERVICE EMPLOYEES EXCLUDING THOSE ENGAGED IN FIRE PROTECTION ACTIVITIES Range 1 1.1 2 2.1 2.2 2.3 2.4 2.5 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
A Step 10.27 10.78 11.47 12.08 12.76 13.41 15.66 17.74 17.85 18.75 19.69 20.66 21.71 22.80 23.94 25.12 26.38 27.72 29.08 30.55 32.07 33.67 35.35 37.12 38.97 40.93 42.99 45.11 47.38 49.81
B
C
D
E
F
AA
BB
CC
10.53 11.05 11.76 12.38 13.08 13.75 16.05 18.18 18.30 19.22 20.18 21.18 22.25 23.37 24.54 25.75 27.04 28.41 29.81 31.31 32.87 34.51 36.23 38.05 39.94 41.95 44.06 46.24 48.56 51.06
10.78 11.32 12.04 12.68 13.40 14.08 16.44 18.63 18.74 19.69 20.67 21.69 22.80 23.94 25.14 26.38 27.70 29.11 30.53 32.08 33.67 35.35 37.12 38.98 40.92 42.98 45.14 47.37 49.75 52.30
11.04 11.59 12.33 12.99 13.72 14.42 16.83 19.07 19.19 20.16 21.17 22.21 23.34 24.51 25.74 27.00 28.36 29.80 31.26 32.84 34.48 36.20 38.00+ 39.90 41.89 44.00 46.21 48.49 50.93 53.55
11.30 11.86 12.62 13.29 14.04 14.75 17.23 19.51 19.64 20.63 21.66 22.73 23.88 25.08 26.33 27.63 29.02 30.49 31.99 33.61 35.28 37.04 38.89 40.83 42.87 45.02 47.29 49.62 52.12 54.79
11.55 12.13 12.90 13.59 14.36 15.09 17.62 19.96 20.08 21.09 22.15 23.24 24.42 25.65 26.93 28.26 29.68 31.19 32.72 34.37 36.08 37.88 39.77 41.76 43.84 46.05 48.36 50.75 53.30 56.04
11.81 12.40 13.19 13.89 14.67 15.42 18.01 20.40 20.53 21.56 22.64 23.76 24.97 26.22 27.53 28.89 30.34 31.88 33.44 35.13 36.88 38.72 40.65 42.69 44.82 47.07 49.44 51.88 54.49 57.28
12.07 12.67 13.48 14.19 14.99 15.76 18.40 20.84 20.97 22.03 23.14 24.28 25.51 26.79 28.13 29.52 31.00 32.57 34.17 35.90 37.68 39.56 41.54 43.62 45.79 48.09 50.51 53.00 55.67 58.53
12.32 12.94 13.76 14.50 15.31 16.09 18.79 21.29 21.42 22.50 23.63 24.79 26.05 27.36 28.73 30.14 31.66 33.26 34.90 36.66 38.48 40.40 42.42 44.54 46.76 49.12 51.59 54.13 56.86 59.77
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FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES ENGAGED IN FIRE PROTECTION ACTIVITIES Range A B C D E F AA BB CC Step 13 20.77 21.29 21.81 22.33 22.85 23.37 23.89 24.40 24.92 14 21.82 22.37 22.91 23.46 24.00 24.55 25.09 25.64 26.18 15 22.91 23.48 24.06 24.63 25.20 25.77 26.35 26.92 27.49 16 24.06 24.66 25.26 25.86 26.47 27.07 27.67 28.27 28.87 17 25.26 25.89 26.52 27.15 27.79 28.42 29.05 29.68 30.31 FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE FOR ALL DEPARTMENT HEAD SERVICE EMPLOYEES 18 19 20 21 22 23 24
$77,209 – 101,907 $79,185 – 106,987 $85,134 – 112,387 $89,419 – 118,037 $93,829 – 123,849 $98,550 – 130,096 $103,604 – 136 754
174
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
FROM:
Scott Bloom
DATE:
April 23, 2018
SUBJECT:
Recommended Amendments to Ordinance No. 3018-2018 –Personnel Regulations ____________________________________________________________________________ This memorandum provides suggested amendments to Ordinance 3018-2018 for purposes of clarity and consistency. The suggested amendments are provided in red below. 1. The first amendment is to Section 2 of the Ordinance which amends the definitions in Chapter 23.05- General Provisions. The amendments are intended to provide clarity in the definition of “Department Head Service.”
23.05.070 Definitions. As used in Title 23, the following terms shall have the meanings indicated: (a) Unclassified Service. The unclassified service shall include all elected officials, City Manager, City Attorney, City Clerk, seasonal and temporary employees. Members of boards, committees, commissions, volunteers, contractors, and consultants are not employees. (b) Classified Service. All paid employees not in the unclassified [SERVICE] or Department Head Service. (c) Department Head Service. The Department Head Service shall include employees who are directly responsible to the City Manager for the administration of one or more departments and who have been hired or completed a probationary period after June 1, 2018. Employees responsible to the City Manager for the administration of one or more departments who have been hired and completed a probationary period before June 1, 2018 may enter the Department Head Service by written request to the City Manager.
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Page 2 of 5
[(C)](d) Full-Time. Employees scheduled to work forty (40) hours per week (except certain Fire Department employees who work an average of fifty-six (56) hours per week) are considered full time. [(D)](e)
Part-Time. Employees scheduled to work less than forty (40) hours per week.
[(E)](f) Regular. Employees who have completed the probationary period. They may be assigned to work a full-time or part-time schedule. [(F)](g) Seasonal. Employees who perform seasonal work for a pre-established period of not more than six (6) months during a twelve (12)-month period. Seasonal Employees may be assigned a full time or part-time schedule and are eligible for Public Employee Retirement Benefits but are ineligible for other benefits and holiday pay. Seasonal Employees who have completed the probationary period may return to the seasonal position each season subject to performance evaluations, general conduct and discipline, personnel rules and policies of the City, layoff, reorganization and other business needs of the City. [(G)](h) Temporary. Employees who are hired for a pre-established period, usually during peak workloads or for vacation relief and for not more than six (6) months. They may be assigned to work a full-time or part-time schedule. They are ineligible for benefits and holiday pay. [(H)](i) Probationary Period. Normally six (6) months, except for Police, Communications and Fire, which is normally twelve (12) months. This period can be extended up to, but no longer than, twelve (12) months and eighteen (18) months, respectively. [(I)](j) Department. The smallest functional budgetary unit of the City government established by the City Council. [(J) DEPARTMENT HEAD. A CLASSIFIED EMPLOYEE DIRECTLY RESPONSIBLE TO THE CITY MANAGER FOR THE ADMINISTRATION OF ONE (1) OR MORE DEPARTMENTS.] (k) Promotion. An advancement of an employee from one (1) job classification to a higher job classification within the same department. (l) Transfer. The movement of an employee from one (1) department to another department, regardless of job classification. (m) [GENERAL GOVERNMENT EMPLOYEE. A CITY EMPLOYEE OTHER THAN A PUBLIC SAFETY EMPLOYEE. (N)] Public Safety Employee. A person employed in the Police, Fire, or Communications Department. [(O)](n) Supervisor. Any person who is responsible to a higher divisional or department level of authority and who directs the work of others. [(P)](o) City Manager. A person directly responsible to the City Council who is authorized and directed to exercise the powers and fulfill the duties as specified in the Charter and Municipal Code of the City of Kenai.
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Page 3 of 5
[(Q)](p) City Attorney. A person directly responsible to the City Council. He or she is the chief legal advisor to the Council and all other officers, departments and agencies of the City government in matters relating to their official powers and duties. [(R)](q) City Clerk. An officer of the City, appointed by the Council, for an indefinite period of time and shall serve as clerical officer of the Council. [(S)](r) Grievance. An employee’s oral or written expression of dissatisfaction with some aspect of his or her employment, a management decision affecting him or her, or an alleged violation of his or her rights for the purpose of attempting to gain an adjustment of said cause of dissatisfaction.
2. The second amendment is to clarify the pay schedule in Chapter 23.55- Pay Plan. Current Department Heads will remain classified employees the suggested amendment reflects this. FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR ALL CLASSIFIED [AND DEPARTMENT HEAD SERVICE] EMPLOYEES EXCLUDING [THOSE] EMPLOYEES ENGAGED IN FIRE PROTECTION ACTIVITIES
Range
A
B
C
D
E
F
AA
BB
CC
Step 1
10.27
10.53
10.78
11.04
11.30
11.55
11.81
12.07
12.32
1.1
10.78
11.05
11.32
11.59
11.86
12.13
12.40
12.67
12.94
2
11.47
11.76
12.04
12.33
12.62
12.90
13.19
13.48
13.76
2.1
12.08
12.38
12.68
12.99
13.29
13.59
13.89
14.19
14.50
2.2
12.76
13.08
13.40
13.72
14.04
14.36
14.67
14.99
15.31
2.3
13.41
13.75
14.08
14.42
14.75
15.09
15.42
15.76
16.09
2.4
15.66
16.05
16.44
16.83
17.23
17.62
18.01
18.40
18.79
2.5
17.74
18.18
18.63
19.07
19.51
19.96
20.40
20.84
21.29
3
17.85
18.30
18.74
19.19
19.64
20.08
20.53
20.97
21.42
4
18.75
19.22
19.69
20.16
20.63
21.09
21.56
22.03
22.50
5
19.69
20.18
20.67
21.17
21.66
22.15
22.64
23.14
23.63
6
20.66
21.18
21.69
22.21
22.73
23.24
23.76
24.28
24.79
7
21.71
22.25
22.80
23.34
23.88
24.42
24.97
25.51
26.05
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Page 4 of 5
8
22.80
23.37
23.94
24.51
25.08
25.65
26.22
26.79
27.36
9
23.94
24.54
25.14
25.74
26.33
26.93
27.53
28.13
28.73
10
25.12
25.75
26.38
27.00
27.63
28.26
28.89
29.52
30.14
11
26.38
27.04
27.70
28.36
29.02
29.68
30.34
31.00
31.66
12
27.72
28.41
29.11
29.80
30.49
31.19
31.88
32.57
33.26
13
29.08
29.81
30.53
31.26
31.99
32.72
33.44
34.17
34.90
14
30.55
31.31
32.08
32.84
33.61
34.37
35.13
35.90
36.66
15
32.07
32.87
33.67
34.48
35.28
36.08
36.88
37.68
38.48
16
33.67
34.51
35.35
36.20
37.04
37.88
38.72
39.56
40.40
17
35.35
36.23
37.12
38.00+
38.89
39.77
40.65
41.54
42.42
18
37.12
38.05
38.98
39.90
40.83
41.76
42.69
43.62
44.54
19
38.97
39.94
40.92
41.89
42.87
43.84
44.82
45.79
46.76
20
40.93
41.95
42.98
44.00
45.02
46.05
47.07
48.09
49.12
21
42.99
44.06
45.14
46.21
47.29
48.36
49.44
50.51
51.59
22
45.11
46.24
47.37
48.49
49.62
50.75
51.88
53.00
54.13
23
47.38
48.56
49.75
50.93
52.12
53.30
54.49
55.67
56.86
24
49.81
51.06
52.30
53.55
54.79
56.04
57.28
58.53
59.77
FISCAL YEAR 2018 OPERATING BUDGET PAY SCHEDULE FOR CLASSIFIED EMPLOYEES ENGAGED IN FIRE PROTECTION ACTIVITIES Range
A
B
C
D
E
F
AA
BB
CC
Step 13
20.77
21.29
21.81
22.33
22.85
23.37
23.89
24.40
24.92
14
21.82
22.37
22.91
23.46
24.00
24.55
25.09
25.64
26.18
15
22.91
23.48
24.06
24.63
25.20
25.77
26.35
26.92
27.49
16
24.06
24.66
25.26
25.86
26.47
27.07
27.67
28.27
28.87
17
25.26
25.89
26.52
27.15
27.79
28.42
29.05
29.68
30.31
FISCAL YEAR 2018 OPERATING BUDGET SALARY SCHEDULE FOR ALL DEPARTMENT HEAD SERVICE EMPLOYEES
178
Page 5 of 5
18
$77,209 – 101,907
19
$79,185 – 106,987
20
$85,134 – 112,387
21
$89,419 – 118,037
22
$93,829 – 123,849
23
$98,550 – 130,096
24
$103,604 – 136 754
3. Delete all of Section 46. This section is no longer needed based on the change in 23.05.070-Definitions, of the Department Head Service. This Change would require the renumbering of Sections 47 and 48 as well. [Section 46. Application: The provisions of this Ordinance will only apply to Department Heads who have been hired by the City and completed a probationary period by June 1, 2018. Department Heads who completed their probationary period before June 1, 2018, may individually chose to enter the Department Head Service and have the Ordinance apply to their employment by written notice to the City Manager.]
Section 46. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application.
Section 47. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption.
179
PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: MAY 16, 2018 VENDOR
DESCRIPTION
DEPARTMENT
ACCOUNT
AMOUNT
PERS
PERS
VARIOUS
LIABILITY
87,871.43
INTEGRITY JANITORIAL
APRIL SERVICE AT CITY HALL
NON-DEPARTMENTAL
REPAIR & MAINTENANCE
1,389.00
PRECIOUS JANITORIAL
APRIL SERVICE AT LIBRARY
LIBRARY
REPAIR & MAINTENANCE
2,795.00
PRECIOUS JANITORIAL
APRIL SERVICE AT TERMINAL
AIRPORT
REPAIR & MAINTENANCE
4 ,495.00
PRECIOUS JANITORIAL
APRIL SERVICE AT POLICE
POLICE
REPAIR & MAINTENANCE
978.00
PRECIOUS JANITORIAL
APRIL SERVICE AT VISITOR CENTER
VISITOR CENTER
REPAIR & MAINTENANCE
928.00
DESCRIPTION
MATURITY DATE
AMOUNT
INVESTMENTS VENDOR
Effect. Int.
180
210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
FROM:
Jamie Heinz, City Clerk
DATE:
May 11, 2018
SUBJECT:
New Marijuana Product Manufacturing Facility
The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a new marijuana product manufacturing facility license: Applicant: Owners: D/B/A:
Herban Extracts, LLC Buddy Crowder Herban Extracts, LLC
Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. A review of City accounts has been completed and the applicant has satisfied all obligations to the City. With the approval of Council, a letter of non-objection to the request for a Retail Marijuana Store License will be forwarded to the Alcoholic & Marijuana Control Office and the applicant. Your consideration is appreciated.
Attachments
181
"Vt11a!Je with a Past, City with aFuture" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907-283-7535 I FAX: 907-283-3014
mr ltdtd 1992
MEMORANDUM TO:
FROM:
David Ross, Police Chief Terry Eubank, Finance Department Scott Bloom , Legal Department Willie Anderson, Lands Management Elizabeth Appleby, City Planner
~amie Heinz, City Clerk
DATE:
April 25, 2018
RE:
Marijuana Product Manufacturing Facility
The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a new license: Applicant: Owners: D/B/A:
Herban Extracts, LLC Buddy Crowder Herban Extracts, LLC
Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review records maintained by your department (i.e. water and sewer billings, lease/property payment history, citations, etc.) by the above reference applicant and advise if obligations have been met. Mark the appropriate box below. If obligations have not been met, attach information to this memorandum indicating what obligations are outstanding and how the obligations can be cured. Please let me know if you have any questions. Thanks . b~ . initials
1. Police Department
lf1Ihave reviewed all records for my department and the applicant is current on obligations or obligations do not exist.
The app~2!'has outstanding obligations and an additional page has been attached. 2. Finance • • initials
0
'B I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0
The applicant has outstanding obligations and an additional page has been attached. '> 'J initials
3~al
~ I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist.
0
The applicant has outstanding obligations and an additional page has been attached. 4~ds Management [Ai.l.J:.-:' initials
~ I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe applicant has outEJ\ng obligations and an additional page has been attached. 5~anning and Zoning initials
t{j I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe applicant has outstan ing bligations and an additional page has been attached. Returned to Clerk's office:
S q;,
182
Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350
April 24, 2018 City of Kenai Attn: Jamie Heinz VIA Email:
[email protected] [email protected] [email protected] [email protected] License Number:
14432
License Type:
Marijuana Product Manufacturing Facility
Licensee:
Herban Extracts, LLC
Doing Business As:
HERBAN EXTRACTS, LLC
Physical Address:
14927 Kenai Spur Highway Kenai, AK 99611
Designated Licensee:
Buddy Crowder
Phone Number:
907-252-4755
Email Address:
[email protected]
☒ New Application
☐ Transfer of Ownership Application
AMCO has received a completed application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under 3 AAC 306.025(d)(2). To protest the approval of this application(s) pursuant to 3 AAC 306.060, you must furnish the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of the date of this notice, and provide AMCO proof of service of the protest upon the applicant. 3 AAC 306.010, 3 AAC 306.080, and 3 AAC 306.250 provide that the board will deny an application for a new license if the board finds that the license is prohibited under AS 17.38 as a result of an ordinance or election conducted under AS 17.38 and 3 AAC 306.200, or when a local government protests an application on the grounds that the proposed licensed premises are located in a place within the local government where a local zoning ordinance prohibits the marijuana establishment, unless the local government has approved a variance from the local ordinance. This application will be in front of the Marijuana Control Board at our May 7, 2018 meeting. Sincerely,
Erika McConnell, Director
[email protected]
183
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184
185 Received by AMCO 12.04.17
186 Received by AMCO 12.04.17
187 Received by AMCO 12.04.17
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan What is this form? An operating plan is required for all marijuana establishment license applications. Applicants should review Title 17.38 of Alaska Statutes and Chapter 306 of the Alaska Administrative Code. This form will be used to document how an applicant intends to meet the requirements of those statutes and regulations. If your business has a formal operating plan, you may include a copy of that operating plan with your application, but all fields of this form must still be completed per 3 AAC 306.020(c).
What must be covered in an operating plan? Applicants must identify how the proposed premises will comply with applicable statutes and regulations regarding the following: x x x x x x x
Security Inventory tracking of all marijuana and marijuana product on the premises Employee qualification and training Waste disposal Transportation and delivery of marijuana and marijuana products Signage and advertising Control plan for persons under the age of 21
Applicants must also complete the corresponding operating plan supplemental forms (Form MJ-03, Form MJ-04, Form MJ-05, or Form MJ-06) to meet the additional operating plan requirements for each license type.
Section 1 – Establishment Information Enter information for the business seeking to be licensed, as identified on the license application.
Licensee:
Herban Extracts, LLC
License Type:
Marijuana Product Manufacturing Facility
Doing Business As:
HERBAN EXTRACTS, LLC
Premises Address:
14927 Kenai Spur Highway
City:
Kenai
Mailing Address:
410 Magic Ave
City:
Kenai
Primary Contact:
Buddy Crowder
Main Phone:
907-252-4755
Email:
[email protected]
[Form MJ-01] (rev 02/12/2016)
License Number:
State:
State:
ALASKA
ALASKA
14432
ZIP:
ZIP:
99611
99611
Cell Phone:
188 Page 1 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Section 2 – Security Review the requirements under 3 AAC 306.710 – 3 AAC 306.720 and 3 AAC 306.755, and identify how the proposed premises will meet the listed requirements. Describe how the proposed premises will comply with each of the following: Restricted Access Areas (3 AAC 306.710): Describe how you will prevent unescorted members of the public from entering restricted access areas: The entire manufacturing facility will be designated as a restricted access area and will be equipped with a robust security system. The premises will be equipped with outdoor lighting, 24 hour video surveillance, an alarm system that will provide electronic notification to the licensee and law enforcement if necessary, and multiple signs stating that the premises is secured and monitored and that visitors must be escorted. The interior of the facility will have security cameras installed for 24 hour monitoring of the entire facility. The exterior of the building will have 24 hour surveillance cameras recording activity around the premises. Visitors will be required to provide valid government-issued, photo identification, with no exceptions. Visitors will be given a visitor badge to be displayed on their person at all times within the facility. All visitors will be escorted by an Herban Extracts employee or Buddy at all times at a 5:1 ratio. A visitor’s log will record the visitor’s name, date and time, and purpose for the visit, and will be available to AMCO upon request. Access to the facility will be granted through a smart lock system, and a sign will be posted on each exterior door (there are four) stating that the door leads into a restricted access area and members of the public must be escorted. Cameras will also be placed conspicuously at each of the four exterior doors to the building to deter visitors from attempting access alone. *Any agent of the MCB, law enforcement or city official does not fall under the visitor policy*
Describe your processes for admitting visitors into and escorting them through restricted access areas:
Only visitors who have been pre-scheduled and pre-approved by Buddy or manager of the facility will be allowed access. All visitors will enter through door 101-1 (as shown on the right side of the diagram) and will be required to provide their valid, government issued photo ID and sign into the visitor's log. The log will record the visitor's name, date, time in and out of the facility and the purpose of the visit. Visitors will be given a visitor's badge to be displayed for the duration of the visit and to be returned upon exiting the facility. Either Buddy or a designated employee will escort and actively supervise visitors at a 5:1 ratio during the entire visit. Once the visit has concluded, the visitor must leave the premises immediately. *Any agent of the MCB, law enforcement or city official does not fall under the visitor policy*
189 [Form MJ-01] (rev 02/12/2016)
Page 2 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Describe your recordkeeping of visitors who are escorted into restricted access areas:
All visitors will sign into a visitor's log noting their name, the date, time in and out of the facility, and the purpose of their visit. Business records will be kept in the file cabinet located in the office on premises and only Buddy and authorized employees will have access to the locked cabinet. Visitors will be escorted by an employee at all times while inside the facility and will be asked to exit the premises upon completion of the visit.
Provide a copy of a sample identification badge to be displayed by each licensee, employee, or agent while on the premises:
190 [Form MJ-01] (rev 02/12/2016)
Page 3 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Security Alarm Systems and Lock Standards (3 AAC 306.715): Exterior lighting is required to facilitate surveillance. Describe how the exterior lighting will meet this requirement:
Exterior lights will be installed against the building and throughout the property in order to keep the premises, signs, and doors well lit and to ensure video surveillance cameras are capable of recording individuals within 20 feet from any entry point to the facility. Light fixtures will be installed in such a way to thwart vandalism and common obstructions. The licensee or designated employee will inspect exterior lighting frequently to ensure proper functionality and position for optimal recording and to deter criminal activity on the premises.
An alarm system is required for all license types. Describe the security alarm system for the proposed premises:
A third party security company will install the alarm system, maintain its equipment, test the devices, and continuously monitor the facility at an off-site center to ensure the safety of the property and to detect unauthorized activity. The alarm system will be set up to monitor for intrusions with motion detectors in all areas of the building during closed hours. When triggered, an electronic alert will be automatically sent to the security company who will then contact local law enforcement if necessary and Buddy. Each morning, the on-site manager or Buddy, will disable the overnight alarm system and check the surveillance cameras and recordings to ensure the system is functioning as expected. The last agent to leave the facility each night will activate the overnight devices and sensors.
The alarm system must be activated on all exterior doors and windows when the licensed premises is closed for business. Describe how the security alarm system meets this requirement:
Sensors will be installed and maintained on all potential entry points of the building, including the 4 exterior doors, to monitor for intrusion when the alarm system is activated (the manufacturing facility has no exterior windows). The last employee to leave the facility each day will activate the overnight security devices and sensors. The alarm system will be active at all times that the facility is closed, and any attempted intrusion will initiate an immediate and electronic notification to the off-site security center. Each morning, Buddy or the on-site manager will disable the alarm system and inspect the security cameras and recordings to ensure that the system is functioning as expected.
191 [Form MJ-01] (rev 02/12/2016)
Page 4 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Describe your policies and procedures for preventing diversion of marijuana or marijuana product:
The video surveillance cameras will continuously monitor the entire facility. Inventory counts will be performed monthly and kept as business records. A zero tolerance policy will be implemented and reinforced by the company through mandatory training to recognize and report diversion or inversion of marijuana. The licensee will report any theft of marijuana or marijuana products to local law enforcement, AMCO Enforcement and update METRC accordingly. Only Buddy and designated employees will have access to marijuana and marijuana product storage and to the secured cabinet where business records are kept.
Describe your policies and procedures for preventing loitering:
The exterior of the facility will remain well lit with 24 hour video surveillance. "No Loitering" signs will be prominently posted around the property as well as signage stating that the premises is under video surveillance. The licensee or designated employees will periodically monitor the property for loitering/unauthorized individuals. The loitering individuals will be told to vacate the premises or law enforcement will be contacted. Any visitors at the facility will be asked to leave the premises once the visit has ended.
Describe your policies and procedures regarding the use of any additional security device, such as a motion detector, pressure switch, and duress, panic, or hold-up alarm to enhance security of the proposed premises:
Motion detectors will be rigged to the exterior lighting system, in addition to the stationary lights, to allow for additional security measures during closed hours and to provide extra lighting for all surveillance recordings. The alarm system will monitor for intrusions with motion detectors on all building access points. Any unauthorized or attempted intrusion will prompt an automatic, electronic alert to the security company who will then contact local law enforcement and Buddy. All alarm systems and devices will be tested periodically to ensure proper functionality.
192 [Form MJ-01] (rev 02/12/2016)
Page 5 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Describe your policies and procedures regarding the actions to be taken by a licensee, employee, or agent when any automatic or electronic notification system alerts a local law enforcement agency of an unauthorized breach of security:
During emergencies, Buddy or a designated employee will evacuate all employees and visitors from the building and will await the arrival of local emergency officials in a safe and accessible location. All visitors present on the premises will be escorted immediately to the nearest exit in a safe and organized manner. When any dangerous, threatening, or unauthorized activity is reported to local law enforcement, employees will comply with directives and remain in a safe location while the incident is addressed. After the emergency is resolved, employees will look for property damage, verify cash and inventory, and submit all necessary documentation to law enforcement officials for a police report. Surveillance footage will be downloaded and submitted to police officials to aid in their investigation, and authorized officials will be given direct phone numbers to Buddy and agents to ensure a good working relationship. Herban Extracts will properly notice AMCO Enforcement of any unauthorized breach of security that requires law enforcement involvement.
Video Surveillance (3 AAC 306.720): All licensed marijuana establishments must meet minimum standards for surveillance equipment. Applicants should be able to answer “Yes” to all items below. Video surveillance and camera recording system covers the following areas of the premises:
Yes
No
Each restricted access area and each entrance to a restricted access area
܆ ✔
܆
Both the interior and exterior of each entrance to the facility
܆ ✔
܆
Each point of sale area
܆ ✔
܆
Yes
Each video surveillance recording:
No
Is preserved for a minimum of 40 days, in a format that can be easily accessed for viewing
܆ ✔
܆
Clearly and accurately displays the time and date
܆ ✔
܆
Is archived in a format that does not permit alteration of the recorded image, so that the images
܆ ✔
܆
can readily be authenticated
193 [Form MJ-01] (rev 02/12/2016)
Page 6 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Describe how the video cameras will be placed to produce a clear view adequate to identify any individual inside the licensed premises, or within 20 feet of each entrance to the licensed premises:
Surveillance cameras will be positioned along the building with ample lighting, and checked regularly to prevent obstructions and to get the best facial image of anyone within twenty (20) feet of all access points. Video surveillance cameras will be placed strategically to record all areas of the facility inside and outside and at a variety of angles. Both the interior and exterior of all doors, marijuana storage areas and manufacturing areas will have video coverage to clearly identify the faces of those present. Cameras at the outside of the facility will record activity on each side of the building. A failure notification system will be installed to provide audible and visual notification of any failure in the surveillance system so that it can be immediately resolved. During a power outage all video cameras and recording equipment will be run on emergency power with a battery backup system to ensure that they can continue to operate for at least one (1) hour.
Describe the locked and secure area where video surveillance recording equipment and records will be housed and stored and how you will ensure the area is accessible only to authorized personnel, law enforcement, or an agent of the board:
The entire facility is designated as a restricted access area and will remain locked with access restricted to Buddy and his designated employees at all times. The video surveillance recording equipment is situated within the facility across from the office and business records will be stored in the secured office only accessible by Buddy, authorized employees, and AMCO Enforcement. The security system will be password protected to prevent data tampering, and recorded data will be stored for a minimum of 40 days as official business records. Recordings will be date and time stamped and archived in a format that prevents alteration of the recording image.
Location of Surveillance Equipment and Video Surveillance Records:
No
Yes
Surveillance room or area is clearly defined on the premises diagram
܆ ✔
܆
Surveillance recording equipment and video surveillance records are housed in a designated, locked,
܆ ✔
܆
Surveillance recording equipment access is limited to a marijuana establishment licensee or authorized employee, and to law enforcement personnel including an agent of the board
܆ ✔
܆
Video surveillance records are stored off-site
܆
܆ ✔
and secure area or in a lock box, cabinet, closet or other secure area
[Form MJ-01] (rev 02/12/2016)
Page 7 of 19
Received by AMCO 4.18.18
194
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Business Records (3 AAC 306.755): All licensed marijuana establishments must maintain, in a format that is readily understood by a reasonably prudent business person, certain business records. Applicants should be able to answer “Yes” to all items below. Business Records Maintained and Kept on the Licensed Premises:
Yes
No
܆ ✔
܆
A current employee list setting out the full name and marijuana handler permit number of each licensee, employee, and agent who works at the marijuana establishment
܆ ✔
܆
The business contact information for vendors that maintain video surveillance systems and security alarm
܆ ✔
܆
Records related to advertising and marketing
܆ ✔
܆
A current diagram of the licensed premises including each restricted access area
܆ ✔
܆
A log recording the name, and date and time of entry of each visitor permitted into a restricted access area
܆ ✔
܆
All records normally retained for tax purposes
܆ ✔
܆
Accurate and comprehensive inventory tracking records that account for all marijuana inventory activity from seed or immature plant stage until the retail marijuana or retail marijuana product is sold to a consumer, to another marijuana establishment, or destroyed
܆ ✔
܆
Transportation records for marijuana and marijuana product as required under 3 AAC 306.750(f)
܆ ✔
܆
All books and records necessary to fully account for each business transaction conducted under its license for the current year and three preceding calendar years; records for the last six months are maintained on the marijuana establishment’s licensed premises; older records may be archived on or off-premises
systems for the licensed premises
195 [Form MJ-01] (rev 02/12/2016)
Page 8 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan A marijuana establishment is required to exercise due diligence in preserving and maintainŝŶŐ all required records. Describe how you will prevent records and data, including electronically maintained records, from being lost or destroyed:
All business records will be stored in the locked file cabinet (labeled H on the diagram) in the secured office and backed up to a hard drive every 6-12 months to prevent loss or destruction. Only the licensee and authorized employees will have access to the office and the locked cabinet where business and surveillance records are stored. The facility's business records will be managed by the licensee and authorized employees in accordance with standard retention policies to ensure that business records are stored in a consistent and searchable manner.
196 [Form MJ-01] (rev 02/12/2016)
Page 9 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Section 3 – Inventory Tracking of All Marijuana and Marijuana Product Review the requirements under 3 AAC 306.730, and identify how the proposed establishment will meet the listed requirements. All licensed marijuana establishments must use a marijuana inventory tracking system capable of sharing information with the system the board implements to ensure all marijuana cultivated and sold in the state, and each marijuana product processed and sold in the state, is identified and tracked from the time the marijuana propagated from seed or cutting, through transfer to another licensed marijuana establishment, or use in manufacturing a product, to a completed sale of marijuana or marijuana product, or disposal of the harvest batch of marijuana or production lot of marijuana product. Applicants should be able to answer “Yes” to all items below. Marijuana Tracking and Weighing:
Yes
A marijuana inventory tracking system, capable of sharing information with the system the board implements to ensure tracking for the reasons listed above, will be used All marijuana delivered to a marijuana establishment will be weighed on a scale certified in compliance with 3 AAC 306.745
No
܆ ✔
܆
܆ ✔
܆
Describe the marijuana tracking system that you plan to use and how you will ensure that it is capable of sharing information with the system the board implements:
Herban Extracts will use the Metrc inventory tracking system to track the production and movement of all inventory, to increase product security, and to deter and prevent diversion activity. Data will be collected and recorded during all manufacturing and processing activity, and also during the subsequent sale, sample, transport, disposal, and/or destruction. The facility will assign a tracking number to all marijuana material accepted into the facility, and record the tracking information in Metrc. Employees will be trained to use the tracking system to ensure that: (1) all marijuana products produced, processed, and packaged are identified and tracked through sale, transfer, or destruction; (2) all establishments transacting to purchase or otherwise receive marijuana products from the facility are licensed; and (3) any loss or theft of marijuana products is promptly reported. Employees will record all sales, testing, and transportation arrangements in the system, and generate a transport manifest to accompany all shipments. Marijuana and by-products used to prepare and package samples will also be recorded, including: (1) the amount of each sample; (2) the facility that received the sample; and (3) the disposal of any expired or outdated promotional sample returned to the facility. Employees will use the tracking system to verify all shipments, and identify any individuals at the facility for the purpose of conducting business. Any products flagged for disposal will be recorded in Metrc at least three (3) days prior to any disposal action. Any destruction, loss, or theft of marijuana will be promptly recorded in Metrc to notify AMCO, AMCO Enforcement, and reported to local authorities.
197 [Form MJ-01] (rev 02/12/2016)
Page 10 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Section 4 – Employee Qualification and Training Review the requirements under 3 AAC 306.700, and identify how the proposed establishment will meet the listed requirements. A marijuana establishment and each licensee, employee, or agent of the marijuana establishment who sells, cultivates, manufactures, tests, or transports marijuana or a marijuana product, or who checks the identification of a consumer or visitor, shall obtain a marijuana handler permit from the board before being licensed or beginning employment at a marijuana establishment. Applicants should be able to answer “Yes” to all items below. Marijuana Hander Permit:
Yes
No
܆ ✔
܆
Each licensee, employee, or agent who is required to have a marijuana handler permit shall keep that person’s marijuana handler permit card in that person’s immediate possession (or a valid copy on file on the premises of a retail marijuana store, marijuana cultivation facility, or marijuana product manufacturing facility) when on the licensed premises
܆ ✔
܆
Each licensee, employee, or agent who is required to have a marijuana handler permit shall ensure that that person’s marijuana handler permit card is valid and has not expired
܆ ✔
܆
Each licensee, employee, or agent of the marijuana establishment who sells, cultivates, manufactures, tests, or transports marijuana or marijuana product, or who checks the identification of a consumer or visitor, shall obtain a marijuana handler permit from the board before being licensed or beginning employment at the marijuana establishment
Describe how your establishment will meet the requirements for employee qualifications and training:
Buddy and all employees will be required to obtain an AMCO issued marijuana handler permit before employment can begin and will be responsible for keeping the permit in good standing at all times while employed with Herban Extracts. All employees will also be required to attend a training course taught by Buddy or a designated employee. Training will include marijuana industry topics, safety, customer care, legal issues, state and federal laws and regulations and proper food handling procedures. Employees will be educated on quality control, inventory control, sanitation, opening and closing, marijuana product production techniques and best practices, and security. Employees will also be trained on how to use the inventory tracking system and how to interact with visitors while in production. Employees will attend a general security class at hiring, and learn how to handle security and emergency procedures. The state and local marijuana regulations and laws will be posted within the facility.
198 [Form MJ-01] (rev 02/12/2016)
Page 11 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Section 5 – Waste Disposal Review the requirements under 3 AAC 306.740, and identify how the proposed establishment will meet the listed requirements. Applicants should be able to answer “Yes” to the statement below. Marijuana Waste Disposal:
No
Yes
The marijuana establishment shall give the board at least 3 days notice in the marijuana inventory tracking system required under 3 AAC 306.730 before making the waste unusable and disposing of it
܆ ✔
܆
Describe how you will store, manage, and dispose of any solid or liquid waste, including wastewater generated during marijuana cultivation, production, process, testing, or retail sales, in compliance with applicable federal, state, and local laws and regulations: Herban Extracts anticipates the following marijuana plant and product waste at the manufacturing facility; (1) contaminated or infected marijuana or marijuana products (2) marijuana or marijuana products deemed by the licensee or a manager as unfit for sale or consumption for any reason (3) marijuana product that fails testing (4) marijuana plant waste created during the extraction process (5) other marijuana or marijuana product waste as determined by the board or director. Once marijuana or marijuana product is deemed as waste, it will be separated from all other marijuana and marijuana products and securely stored in locked bins on the licensed premises and an email notification will be sent to AMCO Enforcement at least 3 days prior to rendering the waste unusable as well as recording the waste in metrc. All solid marijuana plant waste (plant matter waste from the extraction process such as plant matter that is pressed/squeezed to extract oil and marijuana product waste will be ground in a grinder and then mixed with other solid compostable or noncompostable wastes until the mixture is no more than 50% marijuana waste. Liquid marijuana waste such as concentrates, will be mixed with at least equal parts of non-marijuana waste and then stored away from all other marijuana and marijuana products in locked containers on the premises. The waste will be collected once a week or as needed by the city waste facility truck and delivered to the waste station. A log will be maintained recording the final destination of all marijuana and marijuana product waste. The logged information will be available to AMCO at any time upon request, and securely stored.
Describe what material or materials you will mix with the ground marijuana waste to make it unusable:
Marijuana plant and product waste will be ground up with other compostable food waste, yard waste, vegetable oils, or with non-food paper waste or cardboard after giving AMCO Enforcement at least three (3) days notice via email.
199 [Form MJ-01] (rev 02/12/2016)
Page 12 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan
Marijuana waste must be rendered unusable for any purpose for which it was grown or produced before it leaves the marijuana establishment. Describe the process or processes that you will use to make the marijuana plant waste unusable:
To render marijuana plant and product waste unusable, Herban Extracts will grind and incorporate the marijuana waste with either non-compostable or compostable solid wastes so that the resulting mixture is at least fifty percent (50%) non-marijuana waste. Designated employees will use paper waste, plastic waste, cardboard waste, soil, food waste, yard waste, and/or vegetable-based grease or oils. Management will inspect the resulting mixture to ensure it is composed of no more than fifty percent (50%) marijuana waste by volume. All marijuana waste will be secured in waste storage within the facility, separate from all other marijuana and marijuana products, until such time it is picked up by the waste disposal company.
200 [Form MJ-01] (rev 02/12/2016)
Page 13 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Section 6 – Transportation and Delivery of Marijuana and Marijuana Products Review the requirements under 3 AAC 306.750, and identify how the proposed establishment will meet the listed requirements. Applicants should be able to answer “Yes” to all items below. Marijuana Transportation:
No
Yes ܆ ✔
܆
The marijuana establishment that originates the transport of any marijuana or marijuana product will use the marijuana inventory tracking system to record the type, amount, and weight of marijuana or marijuana product being transported, the name of the transporter, the time of departure and expected delivery, and the make, model, and license plate number of the transporting vehicle
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܆
The marijuana establishment that originates the transport of any marijuana or marijuana product will ensure that a complete printed transport manifest on a form prescribed by the board must be kept with the marijuana or marijuana product at all times during transport
܆ ✔
܆
During transport, any marijuana or marijuana product will be in a sealed package or container in a locked, safe, and secure storage compartment in the vehicle transporting the marijuana or marijuana product, and the sealed package will not be opened during transport
܆ ✔
܆
Any vehicle transporting marijuana or marijuana product will travel directly from the shipping marijuana establishment to the receiving marijuana establishment, and will not make any unnecessary stops in between except to deliver or pick up marijuana or marijuana product at any other licensed marijuana establishment
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܆
When the marijuana establishment receives marijuana or marijuana product from another licensed marijuana establishment, the recipient of the shipment will use the marijuana inventory tracking system to report the type, amount, and weight of marijuana or marijuana product received
܆ ✔
܆
The marijuana establishment will refuse to accept any shipment of marijuana or marijuana product that is not accompanied by the transport manifest
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The marijuana establishment from which a shipment of marijuana or marijuana product originates will ensure that any individual transporting marijuana shall have a marijuana handler permit required under 3 AAC 306.700
201 [Form MJ-01] (rev 02/12/2016)
Page 14 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Describe how marijuana or marijuana product will be prepared, packaged, and secured for shipment:
For all transports of marijuana products, Herban Extracts will create a Metrc generated Trip Manifest. All Trip Manifests will be sent with the products, and an additional copy will be stored and filed on the premises as official business records. The Manifest documents will clearly have the type of product, batch number, weight, name of the transporter and handlers ID, time of departure and expected delivery, and the make, model, and license plate of the transporting vehicle. All marijuana product will be in a sealed package or container not exceeding more than five (5) pounds and then stored in a locked storage compartment within the transport vehicle. The transport vehicle will travel directly between destinations without making any unnecessary stops and at no time during transit will marijuana products be directly visible. All marijuana product packaging will have a label stating that a licensed testing facility has tested each batch in the shipment. All packaging materials that will be sold to marijuana establishments for sale to consumers will be child-proof and unappealing to children. All packaging done at the facility will be performed in a specific 24 hour surveillance monitored area and will then be packaged in a uniform manner with labels secure and clearly displayed. Packaged marijuana product will be stored in a secured area until ready for display or transport, and will be inspected, accepted or rejected, and recorded in an official log. The company will check all packages to make sure that they will keep all marijuana product from contamination and will check to make sure that the packages will not impart any toxic or deleterious substance to marijuana product. Herban Extracts will use certified scales in compliance with the Alaska Weights and Measures Act, and will maintain registration and inspection reports at the facility. Reports will be available upon request for AMCO.
Describe the type of locked, safe, and secure storage compartments that will be used in any vehicles transporting marijuana or marijuana product:
Any vehicle transporting marijuana will be unmarked and inconspicuous. Vehicles that will be used for transportation of marijuana will contain a secure and sanitary area affixed to the inside of the transportation vehicle or attached into the pick up truck that will lock and will ensure the products cannot be seen by anyone from outside of the transportation vehicle. Prior to departure, a manager will ensure all marijuana products are in sealed packages, and locked in the safe and secure storage compartment in or attached to the transport vehicle. All employees will be trained and will understand that under no circumstances (absent instruction from a duly authorized law enforcement officer) shall a sealed package containing marijuana product be opened during transportation. The vehicle storage box will be a large rectangular industrial container mounted and secured within the vehicle. The structure will be formed of steel, hard plastic or like materials. From time to time ownership may utilize a third party for transport and shall ensure the third party transport company has their Marijuana Handlers' card.
202 [Form MJ-01] (rev 02/12/2016)
Page 15 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan Section 7 – Signage and Advertising Describe any signs that you intend to post on your establishment with your business name, including quantity and dimensions:
Herban Extracts will not be open to the public and will not post any signs with our business name.
If you are not applying for a retail marijuana store license, you do not need to complete the rest of Section 7, including Page 17.
Restriction on advertising of marijuana and marijuana products (3 AAC 306.360): All licensed retail marijuana stores must meet minimum standards for signage and advertising. Applicants should be able to answer “Agree” to all items below. No advertisement for marijuana or marijuana product will contain any statement or illustration that:
Agree Disagree
Is false or misleading
܆
܆
Promotes excessive consumption
܆
܆
Represents that the use of marijuana has curative or therapeutic effects
܆
܆
Depicts a person under the age of 21 consuming marijuana
܆
܆
Includes an object or character, including a toy, a cartoon character, or any other depiction
܆
܆
designed to appeal to a child or other person under the age of 21, that promotes consumption of marijuana
203 [Form MJ-01] (rev 02/12/2016)
Page 16 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan No advertisement for marijuana or marijuana product will be placed:
Agree Disagree
Within one thousand feet of the perimeter of any child-centered facility, including a school, childcare facility, or other facility providing services to children, a playground or recreation center, a public park, a library, or a game arcade that is open to persons under the age of 21
܆
܆
On or in a public transit vehicle or public transit shelter
܆
܆
On or in a publicly owned or operated property
܆
܆
Within 1000 feet of a substance abuse or treatment facility
܆
܆
On a campus for post-secondary education
܆
܆
Signage and Promotional Materials:
Agree Disagree
I understand and agree to follow the limitations for signs under 3 AAC 306.360(a)
܆
܆
The retail marijuana store will not use giveaway coupons as promotional materials, or conduct
܆
܆
܆
܆
promotional activities such as games or competitions to encourage sale of marijuana or marijuana products All advertising for marijuana or any marijuana product will contain the warnings required under 3 AAC 306.360(e)
204 [Form MJ-01] (rev 02/12/2016)
Page 17 of 19
Received by AMCO 4.18.18
205 Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-01: Marijuana Establishment Operating Plan (Additional Space as Needed):
206 [Form MJ-01] (rev 02/12/2016)
Page 19 of 19
Received by AMCO 4.18.18
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Alaska Marijuana Control Board
Form MJ-02: Premises Diagram What is this form? A detailed diagram of the proposed licensed premises is required for all marijuana establishment license applications, per 3 AAC 306.020(b)(8). Your diagram must show all entrances and boundaries of the premises, restricted access areas, and storage areas, and dimensions. If your proposed premises is located within a building or building complex that contains multiple businesses and/or tenants, please provide an additional page that clearly shows the location of your proposed premises within the building or building complex, along with the addresses and/or suite numbers of the other businesses and/or tenants within the building or building complex. For those applying for a limited marijuana cultivation license, the proposed area(s) for cultivation must be clearly delineated. The second page of this form is not required. Blueprints, CAD drawings, or other clearly drawn and marked diagrams may be submitted in lieu of the second page of this form. The first page must still be completed, attached to, and submitted with any supplemental diagrams. An AMCO employee may require you to complete the second page of this form if additional documentation for your premises diagram is needed. This form must be completed and submitted to AMCO’s main office before any license application will be considered complete.
Yes I have attached blueprints, CAD drawings, or other supporting documents in addition to, or in lieu of, the second page of this form.
No
܆ ✔
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Section 1 – Establishment Information Enter information for the business seeking to be licensed, as identified on the license application.
Licensee:
Herban Extracts, LLC
License Number:
License Type:
Marijuana Product Manufacturing Facility
Doing Business As:
HERBAN EXTRACTS,
Premises Address:
14927 Kenai Spur Highway
City:
Kenai
State:
AK
14432
ZIP:
99611 207
[Form MJ-02] (rev 06/20/2016)
Page 1 of 2 Received by AMCO 12.04.17
208 Received by AMCO 4.20.18
209 Received by AMCO 12.04.17
210 Received by AMCO 12.04.17
211 Received by AMCO 12.04.17
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Section 1 – Establishment Information ŶƚĞƌŝŶĨŽƌŵĂƚŝŽŶĨŽƌƚŚĞďƵƐŝŶĞƐƐƐĞĞŬŝŶŐƚŽďĞůŝĐĞŶƐĞĚ͕ĂƐŝĚĞŶƚŝĨŝĞĚŽŶƚŚĞůŝĐĞŶƐĞĂƉƉůŝĐĂƚŝŽŶ͘
>ŝĐĞŶƐĞĞ͗
Herban Extracts, LLC
>ŝĐĞŶƐĞEƵŵďĞƌ͗
>ŝĐĞŶƐĞdLJƉĞ͗
Marijuana Product Manufacturing Facility
ŽŝŶŐƵƐŝŶĞƐƐƐ͗
HERBAN EXTRACTS, LLC
WƌĞŵŝƐĞƐĚĚƌĞƐƐ͗
14927 Kenai Spur Highway
ŝƚLJ͗
Kenai
^ƚĂƚĞ͗ ALASKA
14432
/W͗
99611
212 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϭŽĨϴ Received by AMCO 12.04.17
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/ƐƉĂĐŬĂŐĞĚƚŽůŽŽŬůŝŬĞĐĂŶĚLJ͕ŽƌŝŶďƌŝŐŚƚĐŽůŽƌƐŽƌǁŝƚŚĐĂƌƚŽŽŶĐŚĂƌĂĐƚĞƌƐŽƌŽƚŚĞƌƉŝĐƚƵƌĞƐŽƌŝŵĂŐĞƐ ƚŚĂƚǁŽƵůĚĂƉƉĞĂůƚŽĐŚŝůĚƌĞŶ
܆ ✔
܆
Section 3 – Equipment, Compounds, and Processes to be Used ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϱϱ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚƉƌĞŵŝƐĞƐ ǁŝůůŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ ĞƐĐƌŝďĞƚŚĞĞƋƵŝƉŵĞŶƚĂŶĚƐŽůǀĞŶƚƐ͕ŐĂƐĞƐ͕ĐŚĞŵŝĐĂůƐ͕ĂŶĚŽƚŚĞƌĐŽŵƉŽƵŶĚƐƚŚĞŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚŵĂŶƵĨĂĐƚƵƌŝŶŐĨĂĐŝůŝƚLJ ǁŝůůƵƐĞƚŽĐƌĞĂƚĞŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞƐ͗ ƋƵŝƉŵĞŶƚ͗ĐůŽƐĞĚůŽŽƉĞĚƌŽƚĂƌLJĞǀĂƉŽƌĂƚŽƌ͕ĐůŽƐĞĚůŽŽƉĞdžƚƌĂĐƚŽƌŵĂĐŚŝŶĞ͕ǀĂĐƵƵŵ͕ĨƌĞĞnjĞƌ͕ǀĂĐƵƵŵŽǀĞŶ͕ĞŶƚƌŝĨƵŐĞ͕ ƺĐŚŶĞƌĨƵŶŶĞů͕ŐƌŝŶĚĞƌ͕ĐŚŝůůĞƌƐ͕ƐŚŽƌƚͲƉĂƚŚĚŝƐƚŝůůĂƚŝŽŶĞƋƵŝƉŵĞŶƚ͕ǁĂƚĞƌďĂƚŚ͕ƵůƚƌĂƐŽŶŝĐĐůĞĂŶĞƌ͕ƐĐĂůĞ͘&ŽƌƉĂĐŬĂŐŝŶŐƚŚĞ ƉƌŽĚƵĐƚƐǁĞǁŝůůŚĂǀĞĂŵĂŶƵĂůĐĂƌƚƌŝĚŐĞĨŝůůŝŶŐŵĂĐŚŝŶĞ͕ĂŶĂƵƚŽŵĂƚŝĐĐĂƌƚƌŝĚŐĞĨŝůůŝŶŐŵĂĐŚŝŶĞ͕ĂŶĚůĂďĞůƉƌŝŶƚŝŶŐŵĂĐŚŝŶĞ͘ ^ŽůǀĞŶƚƐ͗KϮ͕ĨŽŽĚŐƌĂĚĞĞƚŚĂŶŽů ŽŵƉŽƵŶĚƐ͗ĨŽŽĚͲŐƌĂĚĞŚĞŵƉŽŝů͕ĨŽŽĚͲŐƌĂĚĞƉƌŽƉLJůĞŶĞŐůLJĐŽů͕ĂĐƚŝǀĂƚĞĚĐŚĂƌĐŽĂů͕ 'ĂƐĞƐ͗KϮ
213 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϮŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ ĞƐĐƌŝďĞƚŚĞƉƌŽĐĞƐƐĞƐƚŽďĞƵƐĞĚƚŽĐƌĞĂƚĞŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞƐ͗ &2&RQFHQWUDWH2LO:ThiscannabisconcentrateoilisproducedusingCO2asasolventinaclosedloopsystem,TheCO2iscompressed intoaliquidformwhichsaturatesthecannabismaterialandextractsthedesiredcannabinoids,terpenes,orflavonoidsusingdifferent pressuresandtemperatures. AstheCO2iswarmedbackupafterextraction,itturnsbackintoagas(whichisrecovered),whichcausesthe cannabisoiltoseparateintoacollectioncontainer. Theoilwillundergofurtherrefiningtoremovetheplantwaxesthruaprocesscalled winterization.Winterizationinvolvestheoilwithplantwaxestobemixedwithfoodgradeethanolandplacedinafreezerforseveraldays. Theethanol/oilmixturethengetscentrifugedtohelpseparatetheplantwaxesfromtheoil. Thiswinterizationstepgetsrepeated. The ethanolmixturethengetsmixedwithactivatedcharcoalandthenfilteredsothatwhatremainsisanoil/ethanolmixture.Thisfilteredethanol/ oilmixturewillthenhavetheethanolevaporatedoffusingaclosedloopedrotaryevaporator. SomeoftheoilfromtheCO2extractorwill alsogothrufurtherrefinementtoisolatespecificcannabinoids,terpenes,orflavonoids. Thisprocessisknownas“fractional”or“shortpath distillation”,andisknowntoproducesinglecompoundoilsthatcanreach99%purity.Shortpathdistillationusesvacuumpressure,steam, andheattomanipulateboilingpointssothatcompoundsaresubjectedtomuchcoolertemperatureswhentheypassthrough.Dependingon thedistillationprocess,thesevolatilecompoundscaneitherbefractionedindividuallyorsimultaneouslyforcollection. Theseisolated moleculesmaybereintroducedtotheoilafterbeingisolated,orsoldasadistillate.,IWKH&2RLOSURGXFHGZLOOEHVROGLQFDUWULGJHVRU V\ULQJHVIRUYDSRUL]DWLRQWKHRLOLVUHDG\WREHSXWLQWKHFDUWULGJHVDQGV\ULQJHV,IWKH&2RLOLVJRLQJWREHVROGWRRWKHUPDULMXDQD SURGXFWPDQXIDFWXUHUVIRUHGLEOHPDQXIDFWXULQJLWPD\EHGHFDUER[\ODWHGILUVWE\KHDWLQJWKH&2RLOLQDYDFXXPRYHQIRUDVSHFLILF DPRXQWRIWLPH 3XOO 6QDS ThiscannabisconcentrateoilisproducedusingCO2asasolventinaclosedloopsystem,TheCO2iscompressedintoa liquidformwhichsaturatesthecannabismaterialandextractsthedesiredcannabinoids,terpenes,orflavonoidsusingdifferentpressures andtemperatures.AstheCO2iswarmedbackupafterextraction,itturnsbackintoagas(whichisrecovered),whichcausesthecannabis oiltoseparateintoacollectioncontainer. Theoilwillundergofurtherrefiningtoremovetheplantwaxesthruaprocesscalledwinterization. Winterizationinvolvestheoilwithplantwaxestobemixedwithfoodgradeethanolandplacedinafreezerforseveraldays.Theethanol/oil mixturethengetscentrifugedtohelpseparatetheplantwaxesfromtheoil.Thiswinterizationstepgetsrepeated.Theethanolmixturethen getsmixedwithactivatedcharcoalandthenfilteredsothatwhatremainsisanoil/ethanolmixture.Thisfilteredethanol/oilmixturewillthen havetheethanolevaporatedoffusingaclosedloopedrotaryevaporator.SomeoftheoilfromtheCO2extractorwillalsogothroughfurther refinementtoisolatespecificcannabinoids,terpenes,orflavonoids.Thisprocessisknownas“fractional”or“shortpathdistillation”,andis knowntoproducesinglecompoundoilsthatcanreach99%purity.Shortpathdistillationusesvacuumpressure,steam,andheatto manipulateboilingpointssothatcompoundsaresubjectedtomuchcoolertemperatureswhentheypassthrough.Dependingonthe distillationprocess,thesevolatilecompoundscaneitherbefractionedindividuallyorsimultaneouslyforcollection.Theseisolated molecules maybereintroducedtotheoilafterbeingisolated. Aftertheethanolhasbeenevaporatedfromtheoilintherotaryevaporatorandany specificmolecules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
214 &ŽƌŵD:ͲϬϱ
WĂŐĞϯŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 4 – Proposed Marijuana Concentrates and Marijuana Products ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
CO2&RQFHQWUDWHOil
dLJƉĞ͗
ConcentrateIRU5HILOODEOH9DSRU&DUWULGJHV
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗ ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
/ŶŐƌĞĚŝĞŶƚƐ͗ dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ ƚŽŵĂƌŝũƵĂŶĂ ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ WƌŽĐĞĚƵƌĞĂŶĚ ĞƚĂŝůĞĚ DĂŶƵĨĂĐƚƵƌŝŶŐ WƌŽĐĞƐƐ͗
;ĨŽƌŝŶŚĂůĂƚŝŽŶǀŝĂǀĂƉŽƌŝnjĂƚŝŽŶͿ
CO2&RQFHQWUDWHOilwillvaryincolorfromaverylightambertodark amberandwillcomeindifferentstrains,includingdifferentcannabinoids, terpeneprofiles,flavonoids,anddistillates.Theoilisathickstickyliquid.
N/A
C2concentrateoilisproducedusingCO2asasolventinaclosed loopsystem VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After extraction,theoilisrefinedthroughwinterizationandthenmaybe furtherrefinedthroughfractionation.
ĞƉŝĐƚŝŽŶ͗ WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕ ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
215 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϰŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 5 – Proposed Product Packaging and Sample Labels ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
CO2&RQFHQWUDWHOil
dLJƉĞ͗
&RQFHQWUDWHIRU5HILOODEOH9DSRU&DUWULGJHV
WĂĐŬĂŐŝŶŐ ĞƐĐƌŝƉƚŝŽŶ͗
͘ϱƚŽϭŐƌĂŵŽĨKϮĐŽŶĐĞŶƚƌĂƚĞŽŝů ǁŝůůďĞƉĂĐŬĂŐĞĚŝŶĂƉůĂƐƚŝĐŽƌŐůĂƐƐ ƐLJƌŝŶŐĞ;ϴϭ͘ϱŵŵůŽŶŐͿǁŝƚŚƚŚĞƚŽƚĂů d,ƌĂŶŐŝŶŐĨƌŽŵϱϬͲϵϵй;ƚŚĞĂĐƚƵĂů d,ĐŽŶƚĞŶƚǁŝůůďĞůŝƐƚĞĚŽŶƚŚĞůĂďĞů ƉĞƌƚĞƐƚŝŶŐƌĞƐƵůƚƐͿ͘dŚĞƐLJƌŝŶŐĞǁŝůůďĞ ƉůĂĐĞĚŝŶƚŽĂĐůĞĂƌ͕ĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ ƉůĂƐƚŝĐƚƵďĞĂŶĚƚŚĞŶŝŶƚŽĂ ƉĂƉĞƌďŽĂƌĚďŽdž͕ĂƉƉƌŽdžŝŵĂƚĞůLJϰΗ,dž ϮΗtdžϭΗ͕ǁŝƚŚĂƚĂŵƉĞƌƐĞĂů͘,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůůƉƌŽǀŝĚĞƌĞƚĂŝůƐƚŽƌĞƐǁŝƚŚ ĨƵůůLJŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽƉůĂĐĞƚŚĞ ďŽdžĞƐŝŶƚŽďĞĨŽƌĞĐƵƐƚŽŵĞƌƐůĞĂǀĞƚŚĞ ƐƚŽƌĞ͘
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕ ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ ĂƌĞƉƌĞĨĞƌƌĞĚ͘
;ĨŽƌŝŶŚĂůĂƚŝŽŶǀŝĂǀĂƉŽƌŝnjĂƚŝŽŶͿ
^ĂŵƉůĞ>ĂďĞůƐ͗ WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ ŽƵƚ͘
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
216 Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 4 – Proposed Marijuana Concentrates and Marijuana Products ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
Vape Cartridges
dLJƉĞ͗
CO2 Concentrate2LO(forinhalationviavaporization)
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗ ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
/ŶŐƌĞĚŝĞŶƚƐ͗ dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ ƚŽŵĂƌŝũƵĂŶĂ ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ WƌŽĐĞĚƵƌĞĂŶĚ ĞƚĂŝůĞĚ DĂŶƵĨĂĐƚƵƌŝŶŐ WƌŽĐĞƐƐ͗
The concentrate within the vape cartridges varies in color from a bright yellow to an amber color and is a thick sticky liquid.
N/A
&2concentrateoilisproducedusingCO2asasolventinaclosed loopsystem VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After extraction,theoilisrefinedthroughwinterizationandthenmaybe furtherrefinedthroughfractionation.Theoilwillthenbeloadedintothe vapecartridges.
ĞƉŝĐƚŝŽŶ͗ WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕ ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
217 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϰŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 5 – Proposed Product Packaging and Sample Labels ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
VapeCartridges
dLJƉĞ͗
CO2 Concentrate2LO IRULQKDODWLRQYLDYDSRUL]DWLRQ
WĂĐŬĂŐŝŶŐ ĞƐĐƌŝƉƚŝŽŶ͗
͘ϱƚŽϭŐƌĂŵŽĨKϮĐŽŶĐĞŶƚƌĂƚĞ ŽŝůǁŝůůďĞƉĂĐŬĂŐĞĚŝŶƉůĂƐƚŝĐŽƌ ŐůĂƐƐϱϵŵŵĐĂƌƚƌŝĚŐĞƐ͘dŚĞƚŽƚĂů ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ d,ǁŝůůƌĂŶŐĞĨƌŽŵϱϬͲϵϵйǁŝƚŚ ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ ƚŚĞĂĐƚƵĂůd,ĐŽŶƚĞŶƚůŝƐƚĞĚŽŶ ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů ƚŚĞůĂďĞůƉĞƌƚŚĞƚĞƐƚŝŶŐƌĞƐƵůƚƐ͘ ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů dŚĞĨŝůůĞĚĐĂƌƚƌŝĚŐĞǁŝůůďĞƉůĂĐĞĚ ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕ ŝŶƚŽĂĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ĐůĞĂƌ͕ƉůĂƐƚŝĐ ƚƵďĞĂŶĚƚŚĞŶŝŶƐĞƌƚĞĚŝŶƚŽĂ ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ ƉĂƉĞƌďŽĂƌĚďŽdž͘dŚĞďŽdžŝƐ ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ ĂƉƉƌŽdžŝŵĂƚĞůLJϰΗ,džϮΗtdžϭΗ ĂŶĚǁŝůůŚĂǀĞĂƚĂŵƉĞƌƐĞĂůƐƚŝĐŬĞƌ͘ ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ ,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůůƉƌŽǀŝĚĞƌĞƚĂŝů ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ ƐƚŽƌĞƐǁŝƚŚĨƵůůLJŽƉĂƋƵĞĞdžŝƚďĂŐƐ ĂƌĞƉƌĞĨĞƌƌĞĚ͘ ƚŽƉůĂĐĞƚŚĞďŽdžĞƐŝŶƚŽďĞĨŽƌĞƚŚĞ ĐƵƐƚŽŵĞƌůĞĂǀĞƐƚŚĞƐƚŽƌĞ͘
^ĂŵƉůĞ>ĂďĞůƐ͗ WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ ŽƵƚ͘
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
218 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϱŽĨϴ W ŐĞϱ WĂ ϱ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 4 – Proposed Marijuana Concentrates and Marijuana Products ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
Vape Cartridge with E-pen Kit
dLJƉĞ͗
CO2Concentrate2LO(forinhalationviavaporization)
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗ ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
/ŶŐƌĞĚŝĞŶƚƐ͗ dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ ƚŽŵĂƌŝũƵĂŶĂ ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ WƌŽĐĞĚƵƌĞĂŶĚ ĞƚĂŝůĞĚ DĂŶƵĨĂĐƚƵƌŝŶŐ WƌŽĐĞƐƐ͗
CO2FRQFHQWUDWHoilvapecartridgeswithe-penandbatterychargekit. Theconcentratecolorwillrangefromverylightambertodarkamberand willcomeindifferentstrains,includingdifferentcannabinoids,terpene profiles,flavonoids,anddistillates.Theoilisathick,stickyliquid.
N/A
&2concentrateoilisproducedusingCO2asasolventinaclosed loopsystem VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After extraction,theoilisrefinedthroughwinterizationandthenmaybe furtherrefinedthroughfractionation.Theoilwillthenbeloadedintothe vapecartridges.
ĞƉŝĐƚŝŽŶ͗ WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕ ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
219 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϰŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 5 – Proposed Product Packaging and Sample Labels ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
Vape Cartridge with E-pen Kit
dLJƉĞ͗
CO2 Concentrate (for inhalation via vaporization)
WĂĐŬĂŐŝŶŐ ĞƐĐƌŝƉƚŝŽŶ͗
͘ϱƚŽϭŐƌĂŵŽĨKϮĐŽŶĐĞŶƚƌĂƚĞǁŝůů ďĞƉĂĐŬĂŐĞĚŝŶƉůĂƐƚŝĐŽƌŐůĂƐƐϱϵŵŵ ĐĂƌƚƌŝĚŐĞƐ͘dŚĞƚŽƚĂůd,ǁŝůůƌĂŶŐĞ ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ĨƌŽŵϱϬͲϵϵйǁŝƚŚƚŚĞĂĐƚƵĂůd, ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ ĐŽŶƚĞŶƚůŝƐƚĞĚŽŶƚŚĞůĂďĞůƉĞƌƚŚĞ ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů ƚĞƐƚŝŶŐƌĞƐƵůƚƐ͘dŚĞĨŝůůĞĚĐĂƌƚƌŝĚŐĞǁŝůů ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů ďĞƉůĂĐĞĚŝŶƚŽĂĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ĐůĞĂƌ͕ ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕ ƉůĂƐƚŝĐƚƵďĞĂŶĚƚŚĞŶŝŶƐĞƌƚĞĚŝŶƚŽĂ ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ ƉĂƉĞƌďŽĂƌĚďŽdžǁŝƚŚĂŶĞͲƉĞŶĂŶĚ ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ ďĂƚƚĞƌLJĐŚĂƌŐĞƌ͘dŚĞďŽdžŝƐ ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ ĂƉƉƌŽdžŝŵĂƚĞůLJϳΗ,džϮΗtdžϭΗĂŶĚ ǁŝůůŚĂǀĞĂƚĂŵƉĞƌƐĞĂůƐƚŝĐŬĞƌ͘,ĞƌďĂŶ ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ džƚƌĂĐƚƐǁŝůůƉƌŽǀŝĚĞƌĞƚĂŝůƐƚŽƌĞƐǁŝƚŚ ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ ĨƵůůLJŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽƉůĂĐĞƚŚĞ ĂƌĞƉƌĞĨĞƌƌĞĚ͘ ďŽdžĞƐŝŶƚŽďĞĨŽƌĞƚŚĞĐƵƐƚŽŵĞƌůĞĂǀĞƐ ƚŚĞƐƚŽƌĞ͘
^ĂŵƉůĞ>ĂďĞůƐ͗ WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ ŽƵƚ͘
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
220 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϱŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 4 – Proposed Marijuana Concentrates and Marijuana Products ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
:KROHVDOHCO2&RQFHQWUDWHOil-decarboxylatedornotdecarboxylated
dLJƉĞ͗
Bulk Concentrate for Wholesale
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗
CO2FRQFHQWUDWHoiltobesoldinbulktootherproductmanufacturingfacilities
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ foruseinmanufacturingmarijuanaedibleproducts.CO2&RQFHQWUDWHOilwill ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
varyincolorfromaverylightambertodarkamberandwillcomeindifferent strains,includingdifferentcannabinoids,terpeneprofiles,flavonoids,and distillates.Theoilisathickstickyliquid.
/ŶŐƌĞĚŝĞŶƚƐ͗ dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ ƚŽŵĂƌŝũƵĂŶĂ ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ WƌŽĐĞĚƵƌĞĂŶĚ ĞƚĂŝůĞĚ DĂŶƵĨĂĐƚƵƌŝŶŐ WƌŽĐĞƐƐ͗
N/A
C2concentrateoilisproducedusingCO2asasolventinaclosedloop system VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After extraction,theoilisrefinedthroughwinterizationandthenmaybe furtherrefinedthroughfractionation.Theoilmaybedecarboxylatedinan ovenifthepurchasingmanufacturingfacilitywishestheoiltobeina 7+&activatedform
ĞƉŝĐƚŝŽŶ͗ WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕ ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
221 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϰŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 5 – Proposed Product Packaging and Sample Labels ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
:KROHVDOHCO2Oil-decarboxylatedornotdecarboxylated
dLJƉĞ͗
Bulk Concentrate for Wholesale
WĂĐŬĂŐŝŶŐ ĞƐĐƌŝƉƚŝŽŶ͗
tŚŽůĞƐĂůĞKϮŽŝůƐŽůĚŝŶďƵůŬƚŽ ŽƚŚĞƌůŝĐĞŶƐĞĚŵĂŶƵĨĂĐƚƵƌŝŶŐ ĨĂĐŝůŝƚŝĞƐǁŝůůďĞƉĂĐŬĂŐĞĚŝŶŐůĂƐƐ ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ũĂƌƐƵƉƚŽϭƉŽƵŶĚĨŽƌƵƐĞŝŶ ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ ŵĂŶƵĨĂĐƚƵƌŝŶŐŵĂƌŝũƵĂŶĂĞĚŝďůĞ ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů ƉƌŽĚƵĐƚƐ͘d,ĐŽŶƚĞŶƚǁŝůůƌĂŶŐĞ ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕ ĨƌŽŵϱϬͲϵϵй͘ ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ ĂƌĞƉƌĞĨĞƌƌĞĚ͘
^ĂŵƉůĞ>ĂďĞůƐ͗ WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ ŽƵƚ͘
WĞƐƚŝĐŝĚĞƐ͗,ĞƌďŝĐŝĚĞƐ͗&ƵŶŐŝĐŝĚĞƐ͗
222 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϱŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 4 – Proposed Marijuana Concentrates and Marijuana Products ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
Pull & Snap
dLJƉĞ͗
CO2Concentrate(forinhalationviadabbing)
WƌŽĚƵĐƚĞƐĐƌŝƉƚŝŽŶ͗
Thiscannabisoilhasaveryparticularconsistency.Pull&Snapisknowntobeneithertoo
ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ runnynortoosolidatroomtemperature.Becauseofitsconsistencyexistingsomewhere ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘ betweenwaxandshatter,itstretcheswhenpulledbeforebreakingoffwithasignature
snappingsound.Thecolorwillrangefromverylightambertodarkamberandwillcomein differentstrains,includingdifferentcannabinoids,orterpeneprofiles.
/ŶŐƌĞĚŝĞŶƚƐ͗ dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ ƚŽŵĂƌŝũƵĂŶĂ ĐŽŶĐĞŶƚƌĂƚĞƐ
^ƚĂŶĚĂƌĚWƌŽĚƵĐƚŝŽŶ WƌŽĐĞĚƵƌĞĂŶĚ ĞƚĂŝůĞĚ DĂŶƵĨĂĐƚƵƌŝŶŐ WƌŽĐĞƐƐ͗
N/A
Pull&SnapisproducedusingCO2asasolventinaclosedloopsystem VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .Afterextraction,the oilisrefinedthroughwinterizationandthenmaybefurtherrefined throughfractionationandthenplacedintoavacuumoven.
ĞƉŝĐƚŝŽŶ͗ WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕ ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
223 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϰŽĨϴ Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 5 – Proposed Product Packaging and Sample Labels ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ƚƚĂĐŚĂĐŽŵƉůĞƚĞĚĐŽƉLJŽĨƚŚŝƐƉĂŐĞĨŽƌĞĂĐŚƉƌŽƉŽƐĞĚŵĂƌŝũƵĂŶĂĐŽŶĐĞŶƚƌĂƚĞŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚ͘
WƌŽĚƵĐƚEĂŵĞ͗
Pull & Snap
dLJƉĞ͗
CO2 Concentrate (for inhalation via dabbing)
WĂĐŬĂŐŝŶŐ ĞƐĐƌŝƉƚŝŽŶ͗ ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕ ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ ĂƌĞƉƌĞĨĞƌƌĞĚ͘
KŶĞŐƌĂŵŽĨWƵůůΘ^ŶĂƉǁŝůůďĞ ƉĂĐŬĂŐĞĚŝŶϱŵů͕ƌŽƵŶĚ͕ĐŚŝůĚͲ ƌĞƐŝƐƚĂŶƚĐŽŶƚĂŝŶĞƌƐǁŝƚŚĂƐĐƌĞǁƚŽƉ ůŝĚ͘dŚĞƚŽƚĂůd,ǁŝůůƌĂŶŐĞĨƌŽŵ ϱϬͲϵϵй;ƚŚĞĂĐƚƵĂůd,ĐŽŶƚĞŶƚǁŝůů ďĞůŝƐƚĞĚŽŶƚŚĞůĂďĞůƉĞƌƚĞƐƚŝŶŐ ƌĞƐƵůƚƐͿ͘dŚĞĐŽŶƚĂŝŶĞƌǁŝůůďĞƉůĂĐĞĚ ŝŶƚŽĂϭϵͬϭϲ͟džϭϵͬϭϲ͟džϭϭͬϰ͟ ƉĂƉĞƌďŽĂƌĚďŽdžǁŝƚŚĂƚĂŵƉĞƌƐĞĂů͘ ,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůůƉƌŽǀŝĚĞƌĞƚĂŝů ƐƚŽƌĞƐǁŝƚŚĨƵůůLJŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽ ƉůĂĐĞƚŚĞďŽdžĞƐŝŶƚŽďĞĨŽƌĞ ĐƵƐƚŽŵĞƌƐůĞĂǀĞƚŚĞƐƚŽƌĞ͘
^ĂŵƉůĞ>ĂďĞůƐ͗ WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ ŽƵƚ͘
224 WĂŐĞϱŽĨϴ Received by AMCO 12.04.17
225 Received by AMCO 4.18.18
226 Received by AMCO 4.18.18
Closeup of box side with warning label:
227 Received by AMCO 4.18.18
Close up of boxes side with testing label:
228 Received by AMCO 4.18.18
Alaska Marijuana Control Board
Operating Plan Supplemental
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Form MJ-05: Marijuana Product Manufacturing Facility Section 4 – Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520 - 3 AAC 306.525 and 3 AAC 306.560, and identify how the proposed establishment will meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Ethanol&RQFHQWUDWHOil(forinhalationviavaporization)
Type:
Ethanol Concentrate for Refillable Vapor Cartridges
Product Description: Details must include the color, shape, and texture.
Ingredients: This box is not applicable to marijuana concentrates
Standard Production Procedure and Detailed Manufacturing Process:
TheethanolconcentrateRLOvariesincolorfromabrightyellowtoan ambercolorandisathickstickyliquid.
N/A
Ethanolconcentrateoilisproducedusingethanolasasolventtoextract theoil VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After extractiontheoilisrefinedinaclosedloopsystemtoremovetheethanol andrecapturetheethanolforreuse.Theoilwillthenbeloadedintothe syringes.
Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product.
229 [Form MJ-05] (rev 02/05/2016)
Page 4 of 8 Received by AMCO 12.04.17
Alaska Marijuana Control Board
Operating Plan Supplemental
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Form MJ-05: Marijuana Product Manufacturing Facility Section 5 – Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520 and 3 AAC 306.565 – 3 AAC 306.570, and identify how the proposed establishment will meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Ethanol&RQFHQWUDWHOil(forinhalationviavaporization)
Type:
Ethanol Concentrate for Refillable Vapor Cartridges
Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Attached photos, drawings, or graphic representations are preferred.
Ϭ͘ϱƚŽϭŐƌĂŵŽĨĞƚŚĂŶŽůĐŽŶĐĞŶƚƌĂƚĞŽŝůǁŝůůďĞ ƉĂĐŬĂŐĞĚŝŶĂƉůĂƐƚŝĐŽƌŐůĂƐƐƐLJƌŝŶŐĞ;ϴϭ͘ϱŵŵ ůŽŶŐͿǁŝƚŚƚŚĞƚŽƚĂůd,ƌĂŶŐŝŶŐĨƌŽŵϱϬͲϵϵй ;ƚŚĞĂĐƚƵĂůd,ĐŽŶƚĞŶƚǁŝůůďĞůŝƐƚĞĚŽŶƚŚĞ ůĂďĞůƉĞƌƚŚĞƚĞƐƚŝŶŐƌĞƐƵůƚƐͿ͘dŚĞƐLJƌŝŶŐĞǁŝůůďĞ ƉůĂĐĞĚŝŶƚŽĂĐůĞĂƌ͕ĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ƉůĂƐƚŝĐƚƵďĞ ĂŶĚƚŚĞŶŝŶƚŽĂƉĂƉĞƌďŽĂƌĚďŽdžĂƉƉƌŽdžŝŵĂƚĞůLJ ϰ͘ϮϱΗ,džϮΗtdžϭ͘ϮϱΗ͘,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůů ƉƌŽǀŝĚĞƚŚĞƌĞƚĂŝůƐƚŽƌĞǁŝƚŚĨƵůůLJŽƉĂƋƵĞĞdžŝƚ ďĂŐƐƚŽƉůĂĐĞƚŚĞďŽdžĞƐŝŶƚŽďĞĨŽƌĞĐƵƐƚŽŵĞƌƐ ůĞĂǀĞƚŚĞƐƚŽƌĞ͘
Sample Labels: Provide sample labels showing how the labeling information required in 3 AAC 306.570 will be set out.
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
230 [Form MJ-05] (rev 02/05/2016)
Page 5 of 8 Received by AMCO 12.04.17
Alaska Marijuana Control Board
Operating Plan Supplemental
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Form MJ-05: Marijuana Product Manufacturing Facility Section 4 – Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520 - 3 AAC 306.525 and 3 AAC 306.560, and identify how the proposed establishment will meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Vape Cartridges
Type:
EthanolConcentrate2LO(forinhalationviavaporization)
Product Description: Details must include the color, shape, and texture.
Ingredients: This box is not applicable to marijuana concentrates
Standard Production Procedure and Detailed Manufacturing Process:
TheethanolconcentrateRLOwithinthevapecartridgevariesincolorfrom brightyellowtoanambercolorandisathickstickyliquid.
N/A
Ethanolconcentrateoilisproducedusingethanolasasolventtoextract theoil VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After extraction,theoilisrefinedinaclosedloopsystemtoremovetheethanol andrecapturetheethanolforreuse.Theoilwillthenbeloadedintothe vapecartridges.
Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product.
231 [Form MJ-05] (rev 02/05/2016)
Page 4 of 8 Received by AMCO 12.04.17
Alaska Marijuana Control Board
Operating Plan Supplemental
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Form MJ-05: Marijuana Product Manufacturing Facility Section 5 – Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520 and 3 AAC 306.565 – 3 AAC 306.570, and identify how the proposed establishment will meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Vape Cartridges
Type:
EthanolConcentrate2LO(forinhalationviavaporization)
Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Attached photos, drawings, or graphic representations are preferred.
Ϭ͘ϱƚŽϭŐƌĂŵŽĨĞƚŚĂŶŽů ĐŽŶĐĞŶƚƌĂƚĞ ŽŝůǁŝůůďĞƉĂĐŬĂŐĞĚŝŶ ŐůĂƐƐϱϵŵŵǀĂƉĞĐĂƌƚƌŝĚŐĞƐ͘dŚĞ ƚŽƚĂůd,ǁŝůůƌĂŶŐĞĨƌŽŵϱϬͲ ϵϵйǁŝƚŚƚŚĞĂĐƚƵĂůd,ĐŽŶƚĞŶƚ ůŝƐƚĞĚŽŶƚŚĞůĂďĞůƉĞƌƚŚĞƚĞƐƚŝŶŐ ƌĞƐƵůƚƐ͘dŚĞĨŝůůĞĚĐĂƌƚƌŝĚŐĞǁŝůůďĞ ƉůĂĐĞĚŝŶƚŽĂĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ ĐůĞĂƌ͕ƉůĂƐƚŝĐƚƵďĞĂŶĚƚŚĞŶ ŝŶƐĞƌƚĞĚŝŶƚŽĂƉĂƉĞƌďŽĂƌĚďŽdž ;ƐŚŽǁŶƚŽƚŚĞƌŝŐŚƚͿ͘dŚĞďŽdžŝƐ ĂƉƉƌŽdžŝŵĂƚĞůLJϰ͘ϮϱΗ,džϮΗtdž ϭ͘ϮϱΗĂŶĚǁŝůůŚĂǀĞĂƚĂŵƉĞƌ ƐĞĂůƐƚŝĐŬĞƌ͘,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůů ƉƌŽǀŝĚĞƚŚĞƌĞƚĂŝůƐƚŽƌĞƐǁŝƚŚĨƵůůLJ ŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽƉůĂĐĞƚŚĞ ďŽdžĞƐŝŶƚŽďĞĨŽƌĞƚŚĞĐƵƐƚŽŵĞƌ ůĞĂǀĞƐƚŚĞƐƚŽƌĞ͘
Sample Labels: Provide sample labels showing how the labeling information required in 3 AAC 306.570 will be set out.
ϭϰϰϯϮ
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
232 [Form MJ-05] (rev 02/05/2016)
Page 5 of 8 Received by AMCO 12.04.17
Alaska Marijuana Control Board
Operating Plan Supplemental
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
Form MJ-05: Marijuana Product Manufacturing Facility Section 4 – Proposed Marijuana Concentrates and Marijuana Products ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬͲϯϯϬϲ͘ϱϮϱĂŶĚϯϯϬϲ͘ϱϲϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Vape Cartridge with E-pen Kit
Type:
EthanolConcentrate2LO(forinhalationviavaporization)
Product Description: ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ĐŽůŽƌ͕ƐŚĂƉĞ͕ĂŶĚƚĞdžƚƵƌĞ͘
Ingredients: dŚŝƐďŽdžŝƐŶŽƚĂƉƉůŝĐĂďůĞ ƚŽŵĂƌŝũƵĂŶĂ ĐŽŶĐĞŶƚƌĂƚĞƐ
Standard Production Procedure and Detailed Manufacturing Process:
EthanolFRQFHQWUDWHoilvapecartridgeswithe-penandbatterycharge kit.Theethanolextractedconcentratewithinthevapecartridgevariesin colorfromabrightyellowtoanambercolorandisathickstickyliquid.
N/A
Ethanolconcentrateoilisproducedusingethanolasasolventtoextract theoil VHHSURFHVVRXWOLQHGRQSDJHIRUIXUWKHUGHWDLOV .After extraction,theoilisrefinedinaclosedloopsystemtoremovetheethanol andrecapturetheethanolforreuse.Theoilwillthenbeloadedintothe vapecartridges.
Depiction: WƌŽǀŝĚĞĂƉŚŽƚŽŐƌĂƉŚ͕ ĚƌĂǁŝŶŐ͕ŽƌŐƌĂƉŚŝĐ ƌĞƉƌĞƐĞŶƚĂƚŝŽŶŽĨƚŚĞ ĞdžƉĞĐƚĞĚĂƉƉĞĂƌĂŶĐĞŽĨ ƚŚĞĨŝŶĂůƉƌŽĚƵĐƚ͘
233 Form MJ-05] ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞ4ŽĨ8 Received by AMCO 12.04.17
Alaska Marijuana Control Board
Operating Plan Supplemental
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
Form MJ-05: Marijuana Product Manufacturing Facility Section 5 – Proposed Product Packaging and Sample Labels ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬĂŶĚϯϯϬϲ͘ϱϲϱʹϯϯϬϲ͘ϱϳϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚĞƐƚĂďůŝƐŚŵĞŶƚ ǁŝůů ŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name:
Vape Cartridge with E-pen Kit
Type:
EthanolConcentrate2LO(forinhalationviavaporization)
Packaging Description: ĞƚĂŝůƐŵƵƐƚŝŶĐůƵĚĞƚŚĞ ĐŽůŽƌ;ƐͿ͕ƐŝnjĞ͕ƉĂĐŬĂŐŝŶŐ ŵĂƚĞƌŝĂůƐƵƐĞĚ͕ƚŽƚĂů ĂŵŽƵŶƚŽĨd,͕ŝŶĚŝǀŝĚƵĂů ƐĞƌǀŝŶŐƐŝnjĞƐ;ŝĨŵƵůƚŝƉůĞͿ͕ ĂŶĚŽƚŚĞƌƐƉĞĐŝĨŝĐƐ ƐŚŽǁŝŶŐĐŽŵƉůŝĂŶĐĞǁŝƚŚ ϯϯϬϲ͘ϱϲϱ͘ƚƚĂĐŚĞĚ ƉŚŽƚŽƐ͕ĚƌĂǁŝŶŐƐ͕Žƌ ŐƌĂƉŚŝĐƌĞƉƌĞƐĞŶƚĂƚŝŽŶƐ ĂƌĞƉƌĞĨĞƌƌĞĚ͘
Ϭ͘ϱƚŽϭŐƌĂŵŽĨĞƚŚĂŶŽů ĐŽŶĐĞŶƚƌĂƚĞŽŝůǁŝůůďĞ ƉĂĐŬĂŐĞĚŝŶƉůĂƐƚŝĐŽƌŐůĂƐƐϱϵŵŵ ĐĂƌƚƌŝĚŐĞƐ͘dŚĞƚŽƚĂůd,ǁŝůů ƌĂŶŐĞĨƌŽŵϱϬͲϵϵйǁŝƚŚƚŚĞ ĂĐƚƵĂůd,ĐŽŶƚĞŶƚůŝƐƚĞĚŽŶƚŚĞ ůĂďĞůƉĞƌƚŚĞƚĞƐƚŝŶŐƌĞƐƵůƚƐ͘dŚĞ ĨŝůůĞĚĐĂƌƚƌŝĚŐĞǁŝůůďĞƉůĂĐĞĚŝŶƚŽ ĂĐŚŝůĚͲƌĞƐŝƐƚĂŶƚ͕ĐůĞĂƌ͕ƉůĂƐƚŝĐ ƚƵďĞĂŶĚƚŚĞŶŝŶƐĞƌƚĞĚŝŶƚŽĂ ƉĂƉĞƌďŽĂƌĚďŽdžǁŝƚŚĂŶĞͲƉĞŶ ĂŶĚďĂƚƚĞƌLJĐŚĂƌŐĞƌ͘dŚĞďŽdžǁŝůů ďĞĂƉƉƌŽdžŝŵĂƚĞůLJϳΗ,džϮ͘ϱΗtdž ϭΗĂŶĚǁŝůůŚĂǀĞĂƚĂŵƉĞƌƐĞĂů ƐƚŝĐŬĞƌ͘,ĞƌďĂŶ džƚƌĂĐƚƐǁŝůů ƉƌŽǀŝĚĞƌĞƚĂŝůƐƚŽƌĞƐǁŝƚŚĨƵůůLJ ŽƉĂƋƵĞĞdžŝƚďĂŐƐƚŽƉůĂĐĞƚŚĞ ďŽdžĞƐŝŶƚŽďĞĨŽƌĞƚŚĞĐƵƐƚŽŵĞƌ ůĞĂǀĞƐƚŚĞƐƚŽƌĞ͘
Sample Labels: WƌŽǀŝĚĞƐĂŵƉůĞůĂďĞůƐ ƐŚŽǁŝŶŐŚŽǁƚŚĞůĂďĞůŝŶŐ ŝŶĨŽƌŵĂƚŝŽŶƌĞƋƵŝƌĞĚŝŶ ϯϯϬϲ͘ϱϳϬǁŝůůďĞƐĞƚ ŽƵƚ͘
ϭϰϰϯϮ
Ύ>ŽŐŽĐŽůŽƌǁŝůůǀĂƌLJ ĚĞƉĞŶĚŝŶŐŽŶƐƚƌĂŝŶ
234 Form MJ-05] ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞ5ŽĨ8 Received by AMCO 12.04.17
Alaska Marijuana Control Board
Operating Plan Supplemental
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Form MJ-05: Marijuana Product Manufacturing Facility Section 4 – Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520 - 3 AAC 306.525 and 3 AAC 306.560, and identify how the proposed establishment will meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name: Type:
Product Description: Details must include the color, shape, and texture.
Ingredients: This box is not applicable to marijuana concentrates
Standard Production Procedure and Detailed Manufacturing Process:
:KROHVDOHEthanol&RQFHQWUDWHOil-decarboxylatedornotdecarboxylated BulkEthanolConcentrate2LOforWholesaleWRRWKHUPDQXIDFWXHUV(foruseinmanufacturingedibles)
:KROHVDOHEthanolFRQFHQWUDWHoiltobesoldinbulktootherproduct manufacturingfacilitiesforuseinmanufacturingmarijuanaedibleproducts. Ethanolextractedoilwillvaryincolorfromaverylightambertodarkamberand willcomeindifferentstrains,includingdifferentcannabinoids,terpeneprofiles, flavonoids,anddistillates. Theoilisathickstickyliquid.
N/A
:KROHVDOHEthanolconcentrateoilisproducedusingethanolasasolvent toextracttheoil VHH SURFHVV RXWOLQHG RQ SDJH IRU IXUWKHU GHWDLOV . Afterextractiontheoilisrefinedinaclosedloopsystemtoremove the ethanolandrecapturetheethanolforreuse. Theoilwillthenbeloaded intotheglassjars.
Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product.
235 [Form MJ-05] (rev 02/05/2016)
Page 4 of 8 Received by AMCO 12.04.17
Alaska Marijuana Control Board
Operating Plan Supplemental
Alcohol and Marijuana Control Office th 550 W 7 Avenue, Suite 1600 Anchorage, AK 99501
[email protected] https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350
Form MJ-05: Marijuana Product Manufacturing Facility Section 5 – Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520 and 3 AAC 306.565 – 3 AAC 306.570, and identify how the proposed establishment will meet the listed requirements. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product.
Product Name: Type:
:KROHVDOH(WKDQRO&RQFHQWUDWH2LOGHFDUER[\ODWHGRUQRWGHFDUER[\ODWHG %XON(WKDQRO&RQFHQWUDWH2LOIRU:KROHVDOHWRRWKHUPDQXIDFWXHUV IRUXVHLQPDQXIDFWXULQJHGLEOHV
Packaging Description:
tŚŽůĞƐĂůĞEƚŚanol ŽŶĐĞŶƚƌĂƚĞ oil sold in bulk to other manufacturing facilities Details must include the will be packaged in glass jars color(s), size, packaging up to 1 pound for use in materials used, total amount of THC, individual manufacturing marijuana serving sizes (if multiple), edible products. THC content will range from 50-99%. and other specifics showing compliance with 3 AAC 306.565. Attached photos, drawings, or graphic representations are preferred.
Sample Labels: Provide sample labels showing how the labeling information required in 3 AAC 306.570 will be set out.
236 [Form MJ-05] (rev 02/05/2016)
Page 5 of 8 Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ Section 6 – Waste Disposal Plan ZĞǀŝĞǁƚŚĞƌĞƋƵŝƌĞŵĞŶƚƐƵŶĚĞƌϯϯϬϲ͘ϱϮϬ͕ĂŶĚŝĚĞŶƚŝĨLJŚŽǁƚŚĞƉƌŽƉŽƐĞĚƉƌĞŵŝƐĞƐ ǁŝůůŵĞĞƚƚŚĞůŝƐƚĞĚƌĞƋƵŝƌĞŵĞŶƚƐ͘ ĞƐĐƌŝďĞƚŚĞŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚŵĂŶƵĨĂĐƚƵƌŝŶŐĨĂĐŝůŝƚLJ͛ƐƉůĂŶĨŽƌĚŝƐƉŽƐĂůŽĨĂŶLJĞdžƉŝƌĞĚŽƌŽƵƚĚĂƚĞĚŵĂƌŝũƵĂŶĂŽƌŵĂƌŝũƵĂŶĂ ƉƌŽĚƵĐƚƚŚĂƚŝƐŶŽƚƐŽůĚŽƌƚƌĂŶƐĨĞƌƌĞĚƚŽĂŶŽƚŚĞƌůŝĐĞŶƐĞĚŵĂƌŝũƵĂŶĂĞƐƚĂďůŝƐŚŵĞŶƚ͗ ,ĞƌďĂŶ džƚƌĂĐƚƐĞdžƉĞĐƚƐƚŚĞĨŽůůŽǁŝŶŐŵĂƌŝũƵĂŶĂǁĂƐƚĞĂƚƚŚĞŝƌŵĂŶƵĨĂĐƚƵƌŝŶŐĨĂĐŝůŝƚLJ͖;ϭͿĐŽŶƚĂŵŝŶĂƚĞĚŽƌŝŶĨĞĐƚĞĚ ŵĂƌŝũƵĂŶĂŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚƐ;ϮͿŵĂƌŝũƵĂŶĂŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚƐĚĞĞŵĞĚďLJƚŚĞůŝĐĞŶƐĞĞŽƌĂŵĂŶĂŐĞƌĂƐƵŶĨŝƚĨŽƌƐĂůĞ ŽƌĐŽŶƐƵŵƉƚŝŽŶĨŽƌĂŶLJƌĞĂƐŽŶ;ϯͿŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚƚŚĂƚĨĂŝůƐƚĞƐƚŝŶŐ;ϰͿŵĂƌŝũƵĂŶĂǁĂƐƚĞĐƌĞĂƚĞĚĚƵƌŝŶŐƚŚĞĞdžƚƌĂĐƚŝŽŶ ƉƌŽĐĞƐƐ;ϱͿŽƚŚĞƌŵĂƌŝũƵĂŶĂŽƌŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚǁĂƐƚĞĂƐĚĞƚĞƌŵŝŶĞĚďLJƚŚĞďŽĂƌĚŽƌĚŝƌĞĐƚŽƌ͘KŶĐĞŵĂƌŝũƵĂŶĂŽƌ ŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚŝƐĚĞĞŵĞĚĂƐǁĂƐƚĞ͕ŝƚǁŝůůďĞƐĞƉĂƌĂƚĞĚĨƌŽŵĂůůŽƚŚĞƌŵĂƌŝũƵĂŶĂĂŶĚŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚƐĂŶĚƐĞĐƵƌĞůLJ ƐƚŽƌĞĚŝŶůŽĐŬĞĚďŝŶƐŽŶƚŚĞůŝĐĞŶƐĞĚƉƌĞŵŝƐĞƐĂŶĚĂŶĞŵĂŝůŶŽƚŝĨŝĐĂƚŝŽŶǁŝůůďĞƐĞŶƚƚŽDK ŶĨŽƌĐĞŵĞŶƚĂƚůĞĂƐƚϯĚĂLJƐ ƉƌŝŽƌƚŽƌĞŶĚĞƌŝŶŐƚŚĞǁĂƐƚĞƵŶƵƐĂďůĞĂƐǁĞůůĂƐƌĞĐŽƌĚŝŶŐƚŚĞǁĂƐƚĞŝŶŵĞƚƌĐ͘ůůƐŽůŝĚŵĂƌŝũƵĂŶĂƉůĂŶƚǁĂƐƚĞ;ƉůĂŶƚŵĂƚƚĞƌ ǁĂƐƚĞĨƌŽŵƚŚĞĞdžƚƌĂĐƚŝŽŶƉƌŽĐĞƐƐƐƵĐŚĂƐƉůĂŶƚŵĂƚƚĞƌƚŚĂƚŝƐƉƌĞƐƐĞĚͬƐƋƵĞĞnjĞĚƚŽĞdžƚƌĂĐƚŽŝůĂŶĚŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚǁĂƐƚĞ ǁŝůůďĞŐƌŽƵŶĚŝŶĂŐƌŝŶĚĞƌĂŶĚƚŚĞŶŵŝdžĞĚǁŝƚŚŽƚŚĞƌƐŽůŝĚĐŽŵƉŽƐƚĂďůĞŽƌŶŽŶĐŽŵƉŽƐƚĂďůĞǁĂƐƚĞƐƵŶƚŝůƚŚĞŵŝdžƚƵƌĞŝƐŶŽ ŵŽƌĞƚŚĂŶϱϬйŵĂƌŝũƵĂŶĂǁĂƐƚĞ͘>ŝƋƵŝĚŵĂƌŝũƵĂŶĂǁĂƐƚĞƐƵĐŚĂƐĐŽŶĐĞŶƚƌĂƚĞƐ͕ǁŝůůďĞŵŝdžĞĚǁŝƚŚĂƚůĞĂƐƚĞƋƵĂůƉĂƌƚƐŽĨ ĐŽŵƉŽƐƚĂďůĞŽƌŶŽŶĐŽŵƉŽƐƚĂďůĞǁĂƐƚĞĂŶĚƚŚĞŶƐƚŽƌĞĚĂǁĂLJĨƌŽŵĂůůŽƚŚĞƌŵĂƌŝũƵĂŶĂĂŶĚŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚƐŝŶůŽĐŬĞĚ ĐŽŶƚĂŝŶĞƌƐŽŶƚŚĞƉƌĞŵŝƐĞƐ͘dŚĞǁĂƐƚĞǁŝůůďĞƉŝĐŬĞĚƵƉďLJƚŚĞĐŝƚLJǁĂƐƚĞĨĂĐŝůŝƚLJƚƌƵĐŬĂŶĚĚĞůŝǀĞƌĞĚƚŽƚŚĞǁĂƐƚĞƐƚĂƚŝŽŶ͘ ůŽŐǁŝůůďĞŵĂŝŶƚĂŝŶĞĚƌĞĐŽƌĚŝŶŐƚŚĞĨŝŶĂůĚĞƐƚŝŶĂƚŝŽŶŽĨĂůůŵĂƌŝũƵĂŶĂĂŶĚŵĂƌŝũƵĂŶĂƉƌŽĚƵĐƚǁĂƐƚĞĂŶĚƐƚŽƌĞĚŝŶƚŚĞŽĨĨŝĐĞ ĂƐĂŶŽĨĨŝĐŝĂůďƵƐŝŶĞƐƐƌĞĐŽƌĚĂǀĂŝůĂďůĞƚŽDKƵƉŽŶƌĞƋƵĞƐƚ͘
237 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϲŽĨϴ Received by AMCO 12.04.17
238 Received by AMCO 12.04.17
ůĂƐŬĂDĂƌŝũƵĂŶĂŽŶƚƌŽůŽĂƌĚ
KƉĞƌĂƚŝŶŐWůĂŶ^ƵƉƉůĞŵĞŶƚĂů
ůĐŽŚŽůĂŶĚDĂƌŝũƵĂŶĂŽŶƚƌŽůKĨĨŝĐĞ ƚŚ ϱϱϬtϳ ǀĞŶƵĞ͕^ƵŝƚĞϭϲϬϬ ŶĐŚŽƌĂŐĞ͕<ϵϵϱϬϭ ŵĂƌŝũƵĂŶĂ͘ůŝĐĞŶƐŝŶŐΛĂůĂƐŬĂ͘ŐŽǀ ŚƚƚƉƐ͗ͬͬǁǁǁ͘ĐŽŵŵĞƌĐĞ͘ĂůĂƐŬĂ͘ŐŽǀͬǁĞďͬĂŵĐŽ WŚŽŶĞ͗ϵϬϳ͘Ϯϲϵ͘ϬϯϱϬ
&ŽƌŵD:ͲϬϱ͗DĂƌŝũƵĂŶĂWƌŽĚƵĐƚDĂŶƵĨĂĐƚƵƌŝŶŐ&ĂĐŝůŝƚLJ ;ĚĚŝƚŝŽŶĂů^ƉĂĐĞĂƐEĞĞĚĞĚͿ͗
239 &ŽƌŵD:ͲϬϱ;ƌĞǀϬϮͬϬϱͬϮϬϭϲͿ
WĂŐĞϴŽĨϴ Received by AMCO 12.04.17
HERBAN EXTRACTS BRAND GUIDELINES
S A M P L E
LO G O
U S A G E
PA C K A G I N G
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28
240 Received by AMCO 12.04.17
HERBAN EXTRACTS BRAND GUIDELINES
S A M P L E
LO G O
U S A G E
PA C K A G I N G
29
30
241 Received by AMCO 12.04.17
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246 Received by AMCO 12.04.17
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248 Received by AMCO 12.04.17
249 Received by AMCO 12.04.17
Sponsored by: Administration
CITY OF KENAI ORDINANCE NO. 3022-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING THE ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY 1, 2018 AND ENDING JUNE 30, 2019 AND COMMITTING $750,000 OF GENERAL FUND, FUND BALANCE FOR CAPITAL IMPROVEMENTS, AMENDING THE SALARY SCHEDULE IN KENAI MUNICIPAL CODE CHAPTER 23.55 - PAY PLAN, AMENDING EMPLOYEE CLASSIFICATIONS IN KENAI MUNICIPAL CODE CHAPTER 23.50, AND AMENDING POLICE DEPARTMENT QUALIFICATION PAY IN KENAI MUNICIPAL CODE CHAPTER 23.55. WHEREAS, it is a requirement of the Code of the City of Kenai, Alaska, that the City Council, not later than the tenth day of June, adopt a budget for the following fiscal year and make appropriation of the monies needed; and, WHEREAS, committed fund balance represents resources which use is constrained by limitations that Council imposes upon itself at its highest level of decision making, an Ordinance, and that remain binding unless removed in the same manner; and, WHEREAS, in recognition of deferred and ongoing maintenance needs of City roads and facilities, the Council committed $750,000 for future renovation and improvements to City facilities; and, WHEREAS, the fiscal year 2019 Budget includes a 0.20% increase to the City’s Salary Schedule; and, WHEREAS, the 0.20% increase is the combined change in the Anchorage Consumer Price Index, second half over second half for 2016 and 2017; and, WHEREAS, the pay increase will go into effect beginning July 1, 2018; and, WHEREAS, the FY2019 Budget includes new positions, changes in positions and position reclassifications requiring amendment to the City’s employee classifications; and, WHEREAS, in an effort to address employee retention and recruitment issues for police officers, the FY2019 proposes changes to qualification pay of police officers. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That certain document entitled "City of Kenai Fiscal Year 2019 Annual Budget" which is available for examination by the public in the Office of the City Clerk, the City’s website and is incorporated herein by reference is hereby adopted as the budget for the City of Kenai for the fiscal year commencing July 1, 2018 and ending June 30, 2019.
_____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED]
250
Ordinance No. 3022-2018 Page 2 of 7 Section 2. The following sums of money are hereby appropriated for the operations of the City of Kenai for the fiscal year commencing on the first day of July, 2018, and ending the 30th day of June, 2019, to be expended consistent with and subject to the restrictions, procedures, and purposes set forth in the Code of the City of Kenai and to be expended substantially by line item in the manner shown in the budget adopted by Section 1 hereof: General Fund
$16,136,305
Enterprise/Internal Service Funds: Congregate Housing Fund Employee Health Care Fund Total Enterprise/Internal Service Funds
624,551 2,391,806 3,016,357
Special Revenue Funds: Personal Use Fishery Fund Water & Sewer Fund Airport Fund Senior Citizen Fund Airport Land Sale Permanent Fund General Land Sale Permanent Fund Total Special Revenue Funds
553,193 2,659,817 3,216,695 978,944 1,230,025 162,999 8,801,673
Debt Service Fund – Library Expansion Bonds
178,398
Total All Funds
$28,132,733
Section 3. Council herby commits $750,000 of Unassigned General Fund, Fund Balance for future renovation and improvements to City facilities and streets. Section 4. Amendment of Salary Schedule in Chapter 23.55 of the Kenai Municipal Code: That the Salary Schedule in Kenai Municipal Code Chapter 23.55-Pay Plan, is hereby amended as follows: Classified Employees Excluding those engaged in fire protection activities. Range 1 1.1 2 2.1 2.2 2.3 2.4 2.5 3 4 5 6 7 8 9
A Step 10.29 10.80 11.49 12.10 12.79 13.44 15.69 17.78 17.89 18.79 19.73 20.70 21.75 22.85 23.99
B
C
D
E
F
AA
BB
CC
10.55 11.07 11.78 12.40 13.11 13.78 16.08 18.22 18.34 19.26 20.22 21.22 22.29 23.42 24.59
10.80 11.34 12.06 12.71 13.43 14.11 16.47 18.67 18.78 19.73 20.72 21.74 22.84 23.99 25.19
11.06 11.61 12.35 13.01 13.75 14.45 16.87 19.11 19.23 20.20 21.21 22.25 23.38 24.56 25.79
11.32 11.88 12.64 13.31 14.07 14.78 17.26 19.56 19.68 20.67 21.70 22.77 23.93 25.14 26.39
11.58 12.15 12.93 13.61 14.39 15.12 17.65 20.00 20.13 21.14 22.20 23.29 24.47 25.71 26.99
11.83 12.42 13.21 13.92 14.71 15.46 18.04 20.45 20.57 21.61 22.69 23.81 25.01 26.28 27.59
12.09 12.69 13.50 14.22 15.03 15.79 18.44 20.89 21.02 22.08 23.18 24.32 25.56 26.85 28.19
12.35 12.96 13.79 14.52 15.35 16.13 18.83 21.34 21.47 22.55 23.68 24.84 26.10 27.42 28.79
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Ordinance No. 3022-2018 Page 2 of 7 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
25.17 26.43 27.78 29.14 30.61 32.13 33.74 35.42 37.19 39.05 41.01 43.08 45.20 47.47 49.91
25.80 27.09 28.47 29.87 31.38 32.93 34.58 36.31 38.12 40.03 42.04 44.16 46.33 48.66 51.16
26.43 27.75 29.17 30.60 32.14 33.74 35.43 37.19 39.05 41.00 43.06 45.23 47.46 49.84 52.41
27.06 28.41 29.86 31.33 32.91 34.54 36.27 38.08 39.98 41.98 44.09 46.31 48.59 51.03 53.65
27.69 29.07 30.56 32.05 33.67 35.34 37.11 38.96 40.91 42.96 45.11 47.39 49.72 52.22 54.90
Classified Employees Engaged in Fire Protection Activities Range A B C D E Step 13 20.81 21.33 21.85 22.37 22.89 14 21.86 22.41 22.95 23.50 24.05 15 22.96 23.53 24.11 24.68 25.26 16 24.11 24.71 25.32 25.92 26.52 17 25.31 25.94 26.58 27.21 27.84
28.32 29.73 31.25 32.78 34.44 36.15 37.96 39.85 41.84 43.93 46.14 48.47 50.85 53.40 56.15
28.95 30.39 31.95 33.51 35.20 36.95 38.80 40.73 42.77 44.91 47.16 49.54 51.98 54.59 57.40
29.57 31.06 32.64 34.24 35.97 37.75 39.64 41.62 43.70 45.88 48.19 50.62 53.11 55.78 58.64
30.20 31.72 33.34 34.97 36.73 38.56 40.49 42.50 44.63 46.86 49.21 51.70 54.24 56.96 59.89
F
AA
BB
CC
23.41 24.59 25.83 27.12 28.47
23.93 25.14 26.40 27.73 29.11
24.45 25.69 26.98 28.33 29.74
24.97 26.23 27.55 28.93 30.37
Department Head Service Employees Range 18 19 20 21 22 23 24
Minimum 77,363 79,343 85,304 89,598 94,017 98,747 103,811
Maximum 102,111 107,201 112,612 118,273 124,097 130,356 137,028
: Section 5. Amendment of Employee Classification in Chapter 23.50 of the Kenai Municipal Code: Employee Classifications in Kenai Municipal Code Chapter 23.50 –Classification Plan, is hereby amended as follows: CLASS CODE
CLASS TITLE
RANGE
(a) SUPERVISORY AND PROFESSIONAL 101 102 103 104 105 106 107 112
City Manager City Attorney City Clerk Finance Director* Public Works Director* Police Chief* Fire Chief* Airport Manager*
NG NG NG 24 23 23 22 20
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Ordinance No. 3022-2018 Page 2 of 7
117 118 119 120 121 122 123
City Planner Information Technology (IT) Manager [HUMAN RESOURCE SPECIALIST/] Assistant to City Manager/Special Projects Library Director* Senior Center Director* Parks and Recreation Director* Human Resources [OFFICER] Director*
16 18 [15] 18 18 18 17 [16] 21
(b) ADMINISTRATIVE SUPPORT 203 204 205 206 210 211 214 218 219
Administrative Assistant I Accounting Technician I Accounting Technician II Accountant Administrative Assistant II Administrative Assistant III Library Assistant Library Aide Data Entry Clerk
8 10 11 16 9 10 6 2.5 1.1
(c) PUBLIC SAFETY 302 303 304 305 306 307 311 312 313 314 315 316 317
Fire Fighter Police Lieutenant Police Sergeant Police Officer Public Safety Dispatcher Fire Engineer Fire Captain Fire Marshal Communications Supervisor Police Trainee Battalion Chief/Safety Officer Chief Animal Control Officer Animal Control Officer
13 20 18 16 9 15 16 17 12 16/21 17 11 9
(d) PUBLIC WORKS 401 402 403 404 405 407 408 409 410 412
Building Official/Manager Shop Foreman Street Foreman Sewer Treatment Plant Operator Water and Sewer Operator Equipment Operator Shop Mechanic Equipment Lead Operator Water and Sewer Foreman Building Maintenance Technician
[15] 17 16 16 13 13 11 14 14 16 12
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Ordinance No. 3022-2018 Page 2 of 7
413 414 417
Sewer Treatment Plant Lead Operator Sewer Treatment Plant Foreman Airport Operations Specialist
14 16 11
418 419 420
Airport Operations Supervisor Building Maintenance Lead Technician Water and Sewer Lead Operator
15 [13] 14 14
(e) GENERAL SERVICES 504 505 506 507 508 509 510 511 512
Parks, Beautification and Recreation Operator Parks, Beautification and Recreation Laborer Cook Activities/Volunteer Coordinator Meals/Driver Kitchen Assistant Outreach Worker Janitor Driver
9 2.4 2.4 2.4 2.4 2.2 1.1 2.4 1
* Department Heads Section 6. Amendment of Police Department Qualification Pay in Chapter 23.55 of the Kenai Municipal Code: Police Department Qualification Pay in Kenai Municipal Code Chapter 23.55 – Pay Plan, is hereby amended as follows: 23.55.030 Qualification pay. (a) In recognition of professional development, personal time, and effort of the individual to achieve same, the following annual recognition entitlement is authorized, payable on a pro rata monthly basis. (b) This recognition entitlement is not considered when calculating hourly rates for annual leave or holiday pay. (1) Police Department. Certification in accordance with State of Alaska Certification Standards. Police Officer Intermediate Certification Advanced Certification
$ [900] 1,800/year $[1,800] 3,000/year
Police Sergeant Intermediate Certification Advanced Certification
$ [900] 1,800/year $[1,800] 3,000/year
Police Lieutenant Advanced Certification
$[1,800] 3,000/year
Police Chief _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED]
254
Ordinance No. 3022-2018 Page 2 of 7 Advanced Certification
$[1,800] 3,000/year
(2) Fire Department. (i)
Recognition entitlements for an associate degree in fire science is four hundred eighty dollars ($480.00) per year. Eligible grades are fire fighter, engineer, and captain.
(ii) Recognition entitlements for EMT certification for eligible grades of fire fighter, engineer, and captain are as follows: EMT I Instructor EMT II EMT III EMT-Paramedic
$ 250/year $ 500/year $1,000/year (includes EMT II pay) $1,500/year (includes EMT II & III pay)
(iii) Recognition entitlements for driver/operator qualified personnel for eligible grades of fire fighter as follows: Driver/Operator Qualified
One (1) pay range increase (Pay range 13 to Pay range 14)
(3) Water and Sewer Utility. Certification in accordance with the State of Alaska Certification Standards: W & S II W & S III
$ 300/year $ 480/year
(4) City Clerk’s Office. Certification in accordance with International Institute of Municipal Clerks. Certified Municipal Clerk
2.5% of the employee’s base pay
Section 7. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application.
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255
Ordinance No. 3022-2018 Page 2 of 7 Section 8. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect July 1, 2018. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018.
BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk
Introduced: May 16, 2018 Enacted: June 6, 2018 Effective: July 1, 2018
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256
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Terry Eubank, Finance Director
DATE:
May 8, 2018
SUBJECT:
Ordinance 3022-2018 to adopt the FY19 Budget
The purpose of this memo is to summarize the changes that have been proposed to the FY19 Budget since disbursement of the draft document on April 16th, and to communicate the result of these changes on each of the City’s operating funds. The following are the Administration’s recommended changes that have been incorporated into the draft budget and appropriating ordinance. New summary pages for the all funds, after incorporating the changes, are attached for your review. Administration Recommended Amendments: General Fund Revenues - PERS On-behalf funding Expenditures: Non-Departmental – PERS Building: Salaries Overtime Leave Medicare PERS Unemployment Insurance Workers’ Compensation
Library: Salaries Leave
$(534)
$(534)
$1,023 (13) 15 15 222 4 (44) $1,222
2,518 (844)
257
Page 2 of 3 Ordinance 3022-2018
Medicare Social Security PERS Unemployment Insurance Workers’ Compensation Health & Life Insurance Supplemental Retirement
Projected Lapse Total General Fund Change
25 825 (2,328) 9 6 (1) (423) $( 213) (
24)
$ 985
These General Fund changes are the result of the following items: 1. The reclassification of the Building Maintenance Lead position was incorrectly calculated as a promotion. Promotion of an employee entitles an employee to at least a one-step increase in pay while reclassification moves the employee to the most equivalent pay range in the new step without reducing the employee’s current rate of pay. This correction resulted in a $1,419 decrease in the Building Department, a $60 decrease in NonDepartmental PERS, a decrease in General Fund PERS revenue of $60, and a $74 decrease in projected lapse. 2. The administration is recommending amendment to the job description of the Building Official resulting in an employee promotion from Building Official to Building Official/Manager. Classification of the existing position is a range 15 and the new position classifies at a range 17. The change in this position resulted in a $2,641 increase in the Building Department, a $116 increase in Non-Departmental PERS, an increase in General Fund PERS revenue of $116, and a $138 increase in projected lapse. 3. The draft budget included elimination of one, twenty-four hour Library Aide position. Elimination of the position is contingent upon closure of the Library for three hours on Saturdays or complete closure on Sundays. Subsequent to issuance of the draft, two additional twenty-four hour Library Aides resigned their positions providing additional opportunity for staff restructuring. The administration is now recommending elimination of three, twenty-four hour Library Aide positions, addition of one, forty-hour Library Aide and one, fourteen-hour Library Aide positions. This additional restructuring will not result in any change to the Library’s operating hours. The financial impact of this change is a $213 decrease in the Library Department, a $590 decrease in Non-Departmental PERS, a decrease in General Fund PERS revenue of $590, and a $40 increase in projected lapse. Airport Fund Revenues - PERS On-behalf funding Expenditures: Terminal: Salaries Overtime Leave Medicare PERS
$(30)
$(270) (5) (11) (4) (76)
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Page 3 of 3 Ordinance 3022-2018
Unemployment Insurance Workers’ Compensation
Other Buildings & Areas: Salaries Overtime Leave Medicare PERS Unemployment Insurance Workers’ Compensation
Projected Lapse Total General Fund Change
(1) (13) $(380)
$(270) (5) (11) (4) (76) (1) (13) $(380) 46 $ 684
These Airport Fund changes are the result of correcting the reclassification of the Building Maintenance Lead position as described previously in the General Fund. These are the only proposed amendments to the April 16, 2018 Draft City Budget which have been included in proposed budget adoption ordinance. In addition to these proposed changes to the Draft Budget, the budget adoption ordinance now includes amendment to the City’s salary schedule, amendments to the City’s employee classifications, and amendments to the Police Department’s qualification pay sections of the Kenai Municipal Code. Each of these sections are a result of proposed changes included in the draft budget. Your support for passage of the budget adoption ordinance is respectfully requested.
attachments
259
City of Kenai Fiscal Year 2019 Operating Budget General Fund Budget Projection
Actual FY2016 TAXABLE VALUES (000'S)
$ MILL RATE
851,638 4.35
Original Budget FY2018
Actual FY2017 $
851,638
$
4.35
876,530
Projection FY2018 $
4.35
871,076
Requested FY2019 $
4.35
877,219
Projection FY2020 $
4.35
899,866
Projection FY2021 $
4.35
923,376 4.35
REVENUES Property & Sales Taxes Property Tax Sales Tax Total Property & Sales Taxes
3,782,539 7,247,938 11,030,477
3,919,797 6,715,501 10,635,298
3,874,650 6,962,613 10,837,263
3,862,206 7,019,621 10,881,827
3,877,585 7,124,915 11,002,500
3,986,129 7,302,844 11,288,973
4,086,352 7,485,614 11,571,966
State/Federal Revenue: PERS Funding Community Assistance Fish Tax Other Total State/Federal Revenue
379,467 415,798 198,649 155,849 1,149,763
288,137 278,232 165,087 83,990 815,446
204,840 170,598 165,000 58,000 598,438
204,840 250,852 120,000 70,600 646,292
386,254 173,026 165,000 58,000 782,280
397,842 173,026 169,950 60,900 801,718
409,777 173,026 175,049 63,945 821,797
Other Revenue Licenses and Permits Ambulance Fees Interest Other Total Other Revenue
62,629 408,558 76,212 587,224 1,134,623
48,557 419,940 35,762 613,358 1,117,617
63,500 425,000 100,000 605,895 1,194,395
63,500 425,000 50,000 620,175 1,158,675
63,500 425,000 100,000 736,541 1,325,041
65,405 437,750 153,530 758,637 1,415,322
67,367 450,883 297,553 781,396 1,597,199
13,314,863
12,568,361
12,630,096
12,686,794
13,109,821
13,506,013
13,990,962
1,458,900 38,300 1,497,200
1,494,200 124,303 34,000 149,802 1,802,305
1,492,400 400,000 39,000 150,993 2,082,393
1,492,400 400,000 39,000 161,561 2,092,961
1,530,900 283,221 43,300 162,999 2,020,420
1,576,827 50,000 44,599 164,449 1,835,875
1,624,132 50,000 45,937 165,913 1,885,982
14,812,063
14,370,666
14,712,489
14,779,755
15,130,241
15,341,888
15,876,944
2,865,713 6,987,609 2,251,812 1,993,809
2,682,321 6,679,790 2,148,432 1,984,887
2,966,591 7,299,722 2,375,314 2,125,189
2,966,591 7,299,722 2,375,314 2,135,189
3,400,823 7,590,185 2,495,378 2,077,073
3,472,702 7,741,989 2,545,286 2,118,614
3,542,156 7,896,829 2,596,192 2,160,986
14,098,943
13,495,430
14,766,816
14,776,816
15,563,459
15,878,591
16,196,163
686,253
745,130
826,788
826,788
572,846
574,116
583,839
14,785,196
14,240,560
15,593,604
15,603,604
16,136,305
16,452,707
16,780,002
26,867 -
130,106 -
(823,849) 738,841
(1,006,064) 778,173
(1,110,819) 793,930
(903,058) 809,808
Adjusted Surplus (Deficit) Beginning Fund Balance
26,867 10,391,233
130,106 10,418,100
(142,774) (85,008) 10,215,499 10,548,206
(227,891) 10,463,198
(316,889) 10,235,307
(93,250) 9,918,418
Ending Fund Balance Restricted Committed Assigned
10,418,100 10,548,206 (588,937) (588,937) (409,746) (409,746) (1,409,610) (1,409,610)
10,072,725 10,463,198 (624,937) (664,599) (6,868,847) (7,076,914) (2,382,699) (2,417,467)
10,235,307 (700,599) (7,103,079) (2,431,629)
9,918,418 (736,599) (6,747,128) (2,434,691)
9,825,168 (772,599) (6,696,366) (2,356,203)
Unassigned Fund Balance
$ 8,009,807
Total Revenues Transfer From Other Funds Charges to other funds Capital Projects / Special Revenue Enterprise Trust Fund Total Transfers Total Revenues and Transfers EXPENDITURES/APPROPRIATIONS General Government Public Safety Public Works Parks, Recreation & Cultural Total Operating Expenditures Transfers or Non-Operating Total Expenditures/Appropriations Total Surplus (Deficit) Projected Lapse - 5%
$ 8,139,913
(881,115) 738,341
$
196,242
$
304,218
$
-
$
-
$
-
260
City of Kenai Fiscal Year 2019 Operating Budget Budget Projection Fund: 006 - Personal Use Fishery Fund
Actual FY2016
Revenues PERS Grant Usage Fees Beach Parking Beach Camping Dock Launch & Park Dock Parking Only Participant Drop-off Fee Total Usage Fees
$
Original Budget FY2018
Actual FY2017
2,167
$
2,688
$
Manager Proposed FY2019
Projection FY2018
2,312
$
2,312
$
4,169
182,739 230,729 133,181 15,238 -
182,853 238,752 128,109 14,807 10,717
183,000 239,000 130,000 15,000 11,000
170,429 210,269 111,848 12,009 7,481
175,000 225,000 115,000 15,000 8,000
561,887
575,238
578,000
512,036
538,000
Miscellaneous Revenues Investment earnings Other
1,580 (6,888)
671 (3,680)
750 (4,500)
750 (1,126)
750 (1,500)
Total Miscellaneous Revenues
(5,308)
(3,009)
(3,750)
(376)
(750)
Total Revenue
558,746
574,917
576,562
513,972
541,419
113,943
116,875
109,195
109,195
96,429
Streets
34,116
53,068
51,506
51,506
60,904
Boating Facility
71,417
72,668
72,347
72,347
71,926
266,996
268,686
279,079
279,584
273,934
486,472
511,297
512,127
512,632
503,193
-
-
-
-
50,000
486,472
511,297
512,127
512,632
553,193
72,274
63,620
64,435
1,340
(11,774)
-
-
19,981
5,000
21,036
Adjusted (Deficit)/Surplus
72,274
63,620
84,416
6,340
9,262
Beginning Fund Balance
67,662
139,936
149,066
203,556
209,896
$ 139,936
$ 203,556
$ 233,482
$ 209,896
Expenditures Public Safety
Parks, Recreation & Beautification Total Expenditures Transfers - General Fund Total Expenditures & Transfers Contribution To/(From) Fund Balance: Projected Lapse
Ending Fund Balance
$
219,158
261
City of Kenai Fiscal Year 2019 Operating Budget Budget Projection Fund: 010 - Water and Sewer Fund
Actual FY2016
Revenues PERS Grant
$
Original Budget FY2018
Actual FY2017
30,836
$
23,142
$
17,228
Manager Proposed FY2019
Projection FY2018
$
17,228
$
33,668
Usage Fees Service Hook-up Residential Water Commercial Water Residential Sewer Commercial Sewer
4,001 716,095 283,168 1,136,029 430,949
2,205 791,580 315,494 1,170,897 445,805
3,927 832,279 350,141 1,182,299 494,807
3,918 830,339 349,325 1,179,542 493,654
3,927 832,279 350,141 1,182,299 494,807
Total Usage Fees
2,570,242
2,725,981
2,863,453
2,856,778
2,863,453
39,679 10,896 2,812
35,839 5,117 4,361
43,250 16,000 3,000
43,250 16,000 23,000
43,250 16,000 3,000
53,387
45,317
62,250
82,250
62,250
2,654,465
2,794,440
2,942,931
2,956,256
2,959,371
Water Department
829,080
719,328
864,277
914,259
950,581
Sewer Department
384,963
723,136
513,830
520,147
499,660
Wastewater Treatment Plant Department
923,883
987,096
1,075,372
1,086,894
1,209,576
2,137,926
2,429,560
2,453,479
2,521,300
2,659,817
516,539
364,880
489,452
434,956
299,554
-
-
126,260
127,709
137,047
615,712
562,665
436,601
Miscellaneous Revenues Penalty and Interest Interest Earnings Other Total Miscellaneous Revenues Total Revenues Expenditures
Total Expenditures Contribution To/(From) Fund Balance: Projected Lapse (6%) Adjusted (Deficit)/Surplus Beginning Fund Balance Ending Fund Balance
1,189,013
1,705,552
1,614,533
2,070,432
2,633,097
$ 1,705,552
$ 2,070,432
$ 2,230,245
$ 2,633,097
$ 3,069,698
262
City of Kenai Fiscal Year 2019 Operating Budget Fund: 008 - Airport Fund Department: Airport Fund Summary
Actual FY2016
Revenues State & Federal Grants
$
Original Budget FY2018
Actual FY2017
30,048
$
29,726
$
23,552
Manager Proposed FY2019
Projection FY2018
$
23,552
$
36,385
Usage Fees Fuel Sales Fuel Flowage Float Plane Tie Down Landing Plane Parking
1,372 27,772 812 5,576 418,644 5,526
7,621 29,207 620 7,403 529,132 5,725
10,000 35,000 1,500 7,500 375,000 5,000
10,000 35,000 1,500 7,500 375,000 5,000
10,000 35,000 1,500 7,500 425,000 5,000
Total Usage Fees
459,702
579,708
434,000
434,000
484,000
687,256
674,781
650,117
650,117
547,610
687,256
674,781
650,117
650,117
547,610
5,886 33,213 9,627
8,321 15,598 12,666
5,000 25,000 25,000
5,000 25,000 25,000
5,000 25,000 10,000
48,726
36,585
55,000
55,000
40,000
261,036 283,525 1,957 226,130 10,315 608
233,284 308,275 1,728 156,497 7,421 1,145
300,000 317,723 4,500 195,000 9,000 1,500
300,000 317,723 4,500 195,000 9,000 1,500
250,000 334,648 4,500 175,000 9,000 1,500
783,571
708,350
827,723
827,723
774,648
Transfers In Airport Land Trust Fund
1,142,714
1,175,414
1,191,711
1,210,348
1,230,025
Total Transfers In
1,142,714
1,175,414
1,191,711
1,210,348
1,230,025
3,152,017
3,204,564
3,182,103
3,200,740
3,112,668
548,308
578,256
645,425
645,425
630,617 1,732,358
Rents and Leases Land Total Rents and Leases Miscellaneous Penalty and Interest Interest on Investments Other Total Miscellaneous Terminal Revenue Parking Fees Rents and Leases Penalty and Interest Car Rental Commissions Advertising Commissions Miscellaneous Total Terminal Revenue
Total Revenues Expenditures Airport Terminal
1,522,298
1,640,517
1,697,523
1,697,643
Airport Administration
Airport Airfield
287,087
411,745
336,914
384,728
650,221
Airport Other Buildings and Areas
313,741
139,947
167,211
248,458
165,025
32,620
40,295
38,326
38,326
38,474
2,704,054
2,810,760
2,885,399
3,014,580
3,216,695
447,963
393,804
296,704
186,160
(104,027)
-
-
116,940
117,731
116,314
413,644
303,891
12,287
Airport Training Facility Total Expenditures Contribution To/(From) Fund Balance: Projected Lapse (6%) Adjusted (Deficit)/Surplus Beginning Fund Balance Ending Fund Balance
4,234,539
4,682,502
5,073,483
5,076,306
5,380,197
$ 4,682,502
$ 5,076,306
$ 5,487,127
$ 5,380,197
$ 5,392,484
263
City of Kenai Fiscal Year 2019 Operating Budget Fund: 019 - Senior Citizens Fund Department: Title III Summary
Actual FY2016
Revenues State Grants USDA Grant Choice Waiver KPB Grant United Way Rents and Leases Donations Donation - Senior Connection Meal Donations Transfer from General Fund - Operations Transfer from General Fund - Capital Other
Original Budget FY2018
Actual FY2017
$ 196,978 $ 208,654 15,780 22,415 252,604 220,419 126,207 126,207 9,582 5,977 12,971 8,260 13,497 6,975 10,000 7,677 61,066 75,321 88,339 183,291 (621) 306
Total Revenue
786,403
$ 198,299 15,000 225,000 126,207 5,977 13,000 30,000 50,000 75,000 196,730 300
865,502
Manager Proposed FY2019
Projection FY2018
$
935,513
198,299 15,000 200,000 126,207 15,000 13,000 65,605 50,000 75,000 185,184 300
$
943,595
203,626 27,000 200,000 126,207 3,000 13,000 32,000 50,000 82,500 171,274 45,670 300 954,577
Expenditures Senior Citizen Access
175,262
153,905
166,319
166,319
157,288
Congregate Meals
179,434
218,035
236,396
239,021
285,511
Home Meals
148,048
176,509
195,103
226,583
210,000
Senior Transportation
108,562
67,803
80,523
80,523
81,346
Choice Waiver
331,888
249,525
281,213
281,213
244,799
Total Expenditures
943,194
865,777
959,554
993,659
978,944
(24,041)
(50,064)
(24,367)
24,041
50,064
24,367
Contribution To/(From) Fund Balance:
(156,791)
(275)
-
Projected Lapse (3%)
-
Adjusted (Deficit)/Surplus
(156,791)
(275)
-
-
-
Beginning Fund Balance
157,066
275
-
-
-
Ending Fund Balance
$
275
$
-
$
-
$
-
$
-
264
City of Kenai Fiscal Year 2019 Operating Budget Budget Projection Fund: 009 - Congregate Housing Fund
Actual FY2016
Revenues PERS Grant
$
Rents and Leases Interest on Investments Miscellaneous
Original Budget FY2018
Actual FY2017
2,077
$
1,780
$
Manager Proposed FY2019
Projection FY2018
1,192
$
1,192
$
1,866
382,253 3,880 77
386,613 1,822 95
388,345 4,000 -
388,345 4,000 -
390,515 4,000 -
388,287
390,310
393,537
393,537
396,381
Expenses
425,986
498,181
452,133
500,333
503,551
Net Income (loss)
(37,699)
(107,871)
(58,596)
(106,796)
(107,170)
Beginning Retained Earnings
418,765
474,257
496,442
506,832
539,893
-
-
-
-
-
-
-
-
139,857
140,446
139,857
139,857
140,446
Total Revenues
Capital Asset Acquistions
(46,666)
Allocated to Capital Projects Credit for Depreciation Available Retained Earnings
$
474,257
$
506,832
$
577,703
$
539,893
(121,000)
$
452,169
265
City of Kenai Fiscal Year 2019 Operating Budget Fund: 011 - Employee Health Care Fund Department: 18 - Health Care Fund Summary
Actual FY2016
Revenues Charge for Services Participant premiums Transfer from Other Funds Interest Earnings
$
Total Revenues
Original Budget FY2018
Actual FY2017
-
$
117,637 -
$
1,916,987 226,296 1,000
Manager Proposed FY2019
Projection FY2018
$
1,916,987 226,296 1,000
$
2,148,495 243,552 1,000
-
117,637
2,144,283
2,144,283
2,393,047
Expenses
-
-
2,143,283
2,143,283
2,391,806
Net Income (loss)
-
117,637
1,000
1,000
1,241
Beginning Retained Earnings
-
-
100,000
117,637
118,637
Available Retained Earnings
$
-
$
117,637
$
101,000
$
118,637
$
119,878
266
City of Kenai Fiscal Year 2019 Operating Budget Budget Projection Land Sales Permanent Funds
Actual FY2016
Original Budget FY2018
Actual FY2017
Manager Proposed FY2019
FY2018 Projection
FUND 082-52 Airport Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings Acct. 36645 Interest on Land Sale Contracts Acct. 33640 Land Sales
$
Total Revenue
$
2,055,039 362,731
$
1,445,101 10,000 -
$
1,520,536 10,000 -
$
1,520,536 10,000 -
469,344
2,417,770
1,455,101
1,530,536
1,530,536
1,142,714
1,175,414
1,191,711
1,210,348
1,230,025
1,242,356
263,390
320,188
300,511
23,711,029
23,037,659
23,295,554
24,280,015
24,600,203
$ 23,037,659
$ 24,280,015
$ 23,558,944
$ 24,600,203
$ 24,900,714
$
$
$
$
Expenses Transfer to Airport Land System Fund Contributions To/(From) Fund Balance
(673,370)
Beginning Fund Balance Ending Fund Balance
447,392 14,238 7,714
FUND 081-52 General Land Sales Permanent Fund Revenues Acct. 36610 Investments Earnings Acct. 36645 Interest on Land Sale Contracts Acct. 33640 Land Sales
$
Total Revenue Expenses Transfer to General Fund Contributions To/(From) Fund Balance Beginning Fund Balance Ending Fund Balance
$
54,331 -
256,966 -
173,620 -
173,620 -
189,844 -
54,331
256,966
173,620
173,620
189,844
-
149,802
150,993
161,561
162,999
54,331
107,164
22,627
12,059
26,845
2,888,444
2,942,775
2,965,790
3,049,939
3,061,998
2,942,775
$
3,049,939
$
2,988,417
$
3,061,998
$
3,088,843
267
City of Kenai Fiscal Year 2019 Operating Budget Fund 048 - Debt Service Original
Manager
Actual
Actual
Budget
Projection
Proposed
FY2016
FY2017
FY2018
FY2018
FY2019
Revenues Bond Interest Subsidy Transfer from General Fund
34,884 143,914
34,959 140,439
34,940 142,058
34,996 142,002
34,996 143,402
Total Revenue
178,798
175,398
176,998
176,998
178,398
Expenditures Parks, Recreation & Culture
178,798
175,398
176,998
176,998
178,398
Contributions To/From Fund Balance
-
-
-
-
-
Beginning Fund Balance
-
-
-
-
-
Ending Fund Balance
$
-
$
-
$
-
$
-
$
-
268
Sponsored by: Administration
CITY OF KENAI ORDINANCE NO. 3023-2018 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING FY2018 GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $13,747 AND FY2019 GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $35,996 IN THE GENERAL FUND PARKS, RECREATION AND BEAUTIFICATION DEPARTMENT FOR THE RECEIPT OF A GRANT FROM THE UNITED STATES ENVIRONMENTAL PROTECTION AGENCY PASSED THROUGH THE STATE OF ALASKA DEPARTMENT OF ENVIRONMENTAL CONSERVATION FOR BACTERIA LEVEL MONITORING ON THE CITY’S BEACHES DURING THE 2018-2019 PERSONAL USE FISHERY.
WHEREAS, the State of Alaska Department of Environmental Conservation has issued a grant to the City for bacteria level monitoring during the 2018-2019 Personal Use Fishery; and, WHEREAS, monitoring will be provided through a cooperative agreement with the Kenai Watershed Forum; and, WHEREAS, it is in the best interest of the City to monitor the bacteria level on its beaches to protect public health; and, NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1.
That FY2018 estimated revenues and appropriations be increased as follows:
General Fund: Increase Estimated Revenues: Federal Grants - Other Increase Appropriations: Parks, Recreation & Beautification – Professional Services Section 2.
$13,747
$13,747
That FY2019 estimated revenues and appropriations be increased as follows:
General Fund: Increase Estimated Revenues: Federal Grants - Other Increase Appropriations: Parks, Recreation & Beautification – Professional Services
$35,996
$35,996
_____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED]
269
Ordinance No. 3023-2018 Page 2 of 2 Section 3. That the City Manager is authorized to accept a grant and expend the funds to fulfill the purpose of this Ordinance. Section 4. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 5. Effective Date: That pursuant to KMC 1.15.070(f), Section 1 of this ordinance shall take effect upon adoption. Section 2 of this ordinance shall take effect July 1, 2018. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of June, 2018.
BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, City Clerk
Introduced: May 16, 2018 Enacted: June 6, 2018 Effective: June 6, 2018 & July 1, 2018
_____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED]
270
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Robert J. Frates, Parks & Recreation Director
DATE:
May 7, 2018
SUBJECT:
Ordinance 3023-2018 – DEC Grant for Bacteria Level Monitoring in the Kenai River ______________________________________________________________________ The purpose of this correspondence is to recommend Council approval of the above referenced ordinance. This action provides for the appropriation of funds to support testing for coliform and enterococci bacteria in the Kenai River during the Personal Use Fishery by the Kenai Watershed Forum (KWF). This work will be accomplished through a cooperative agreement with funding being passed through to the KWF. This mirrors a previous process utilized in 2011-2014.
Thank you for your attention in this matter.
271
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Mary L. Bondurant
DATE:
May 11, 2018
SUBJECT:
Action/Approval – Special Use Permit to HDL Engineering Consultants, LLC
HDL Engineering Consultants, LLC, is requesting renewal of the special use permit for a soils test lab and equipment storage. They have been leasing this area since April 2016. This special use permit will be effective for three months from April 1, 2018 to June 30, 2018 with a new permit issued effective July 1, 2018 to June 30, 2019 so as to be calendared with the fiscal year. HDL is current in all fees owed to the Airport and a current Certificate of Insurance is on file. Airport Commission reviewed the request at the May 10, 2018 Commission meeting and recommends Council approval. Thank you for your consideration.
Does Council recommend the City Manager enter into a Special Use Permit with HDL Engineering Consultants, LLC, for a building and ground lease?
272
SPECIAL USE PERMIT 2018 THE CITY OF KENAI (City) for the considerations and pursuant to the conditions and requirements set forth below, hereby grants to HDL ENGINEERING CONSULTANTS, LLC (Permittee), whose address is 10735 Kenai Spur Highway, Suite lB, Kenai, AK 99611 , the non-exclusive right to use that area described below: Tract A FBO Subdivision consisting of approximately 8,040 square feet in the northwest corner (the Premises), including the approximately 930 square feet building located thereon. and as further shown in the attached Exhibit A.
1. TERM. This special use permit shall commence on April 1, 2018 and terminate June 30, 2018. 2. PERMIT FEES. The Permittee shall pay a permit fee of $543.00 plus applicable sales tax per month ($418.00 for building and land rent and $125.00 for electricity for the term of this Permit). In addition, the Permittee shall be charged $76.10 per month for water and sewer until June 30,2018 .. Permittee shall pay the City the monthly fee on or before the first day of each month beginning April 2018. Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, 210 Fidalgo A venue, Kenai, Alaska 99611 on or before the first of each month. In addition to the permit fee specified above, Permittee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: A.
Sales tax now enforced, or levied in the future, computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis;
B.
All necessary licenses and permits, pay all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Permittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Permit, 273
Special Use Permit- HDL Engineering Consultants, LLC
Page 1of6
provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided for by law. C.
Interest at the rate of 8% per annum and penalties of 10% of any amount of money owed under this Special Use Permit, which money or fee not paid on or before the date it becomes due.
D.
Costs and expenses incident to this Special Use Permit including, but not limited to, recording costs.
3. USE. The use of the Premises by Permittee is limited to the purposes specified herein: Permittee shall use the Premises only for a Soils test lab and equipment storage. Any and all needed building or site modifications must be separately approved in writing by the Airport Manager and the site and existing improvements must be restored to as good or better condition than the site and improvements were in prior to modification by Permittee. This use is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities . 4. INSURANCE. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including Premises, all operations, property damage, personal injury and death, broad-form contractual, with a peroccurrence limit of not less than $1 ,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and nonowned motor vehicles the Permittee uses on the Airport. The policy must name the Special Use Permit-HDL Engineering Consultants, LLC
Page 2of6
274
City as an additional insured. D.
All insurance required must meet the following additional requirements: I.
All policies will be by a company/corporation currently rated "A-" or better by A.M. Best.
11.
Pennittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf.
ui.
Permittee shall request a waiver of subrogation against City from Pennittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City.
1v.
Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder.
v.
Evidence of insurance coverage must be submitted to City by April, 2018. The effective date of the insurance shall be no later than April, 2018.
City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City.
5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with its use of the Premises. The Permittee shall not be required to indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers for the independent negligence of the City of Kenai. If there are Liabilities for the joint negligent act, or omission, or willful misconduct of the 275
Special Use Permit-HDL Engineering Consultants, LLC
Page 3of6
Permittee and the City of Kenai, the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis.
6. PERMITTEE'S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not permit any liens including, but not limited to, mechanics', laborers', material men's, or mining liens or any other liens obtainable or available under existing law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed to have been furnished to Permittee or to the Permittee' s agents, contractors, or related entities, in connection with materials supplied to Permittee for its activities on the Premises and/or in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Permittee. Provided, however, the Permittee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Perrnittee's own expense. 7. PERSONALITY. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 8. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions, and/or any requirement herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions or requirements. 9. TERMINATION; DEFAULT. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach.
276
Special Use Permit- HDL Engineering Consultants, LLC
Page 4of6
10. NO DISCRIMINATION. Perrnittee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 11. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole or any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Perrnittee responsible for performing any obligation under this Permit which an assignee fails to perform. 12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its use of the Premises. 13. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises. 14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this permit shall survive the cancellation, termination or expiration of this permit. 15. AUTHORITY. By signing this Permit, Permittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the company to bind the company hereunder.
CITY OF KENAI
HDL ENGINEERING CONSULTANTS, LLC
By:~~~~~~~~~~
By:
Paul Ostrander City Manager
~~~~~~~~~~
Dennis Linnell Principal Civil Engineer
277
Special Use Permit-HDL Engineering Consultants, LLC
Page 5of6
ACKNOWLEDGMENTS STATE OF ALASKA
)
THIRD JUDICIAL DISTRICT
)
) SS.
THIS IS TO CERTIFY that on the __ day of 2018, Paul Ostrander, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska My Commission Expires: _ _ _ __ STATE OF ALASKA
)
THIRD JUDICIAL DISTRICT
)
) SS.
THIS IS TO CERTIFY that on this __ day of , 2018, the foregoing instrument was acknowledged before me by Dennis Linnell, Principal Civil Engineer, HDL Engineering Consultants, LLC, on behalf of the Company.
Notary Public for Alaska My Commission Expires:_ _ _ __ ATTEST:
Jamie Heinz, City Clerk SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
278
Special Use Permit-HDL Engineering Consultants, LLC
Page 6of6
·~ ' ' '~ 14
..
' •,J•
·-
Tract A FBO Subdivision
0
75
150
City of Kenai Shop Yard HDL Engineering Special Use Permit Area 300 Feet
Exhibit A
' )I ..
I
279
The information depicted here on is for graphic representation only of the best available sources. The City of Kenai assumes no responsibility for errors on this map.
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Mary L. Bondurant
DATE:
May 11, 2018
SUBJECT:
Action/Approval – Special Use Permit to Redding Towing & Salvage, LLC
Charles Rediski, is requesting to renew the special use permit for Lot 4, Block 5, Cook Inlet Industrial Park, which is being used as an impound lot. Mr. Rediske has used this as an impound lot since 2007. This permit is effective for June 2018 with a new permit issued effective July 1, 2018 to June 30, 2019 so as to be calendared with the fiscal year. Mr. Rediski is current in all fees owed to the Airport and a current Certificate of Insurance is on file. Airport Commission reviewed the request at the May 10, 2018 Commission meeting and recommends Council approval. Thank you for your consideration.
Does Council recommend the City Manager enter into a Special Use Permit with Redding Towing & Salvage, LLC for an impound lot?
280
SPECIAL USE PERMIT 2018 THE CITY OF KENAI (City) for the considerations and pursuant to the conditions and requirements set forth below, hereby grants to REDDI TOWING & SALVAGE, LLC (Permittee), whose address is P.O. Box 7079, Nikiski, AK 99635, the non-exclusive right to use that area described below: Lot 4, Block 5, Cook Inlet Industrial Park and adjacent 50' wide right-of-way, according to Plat No. 1448 (the Premises), and as further shown in the attached Exhibit A. 1. TERM. This special use permit shall commence on June 1, 2018, and terminate June 30, 2018.
2. PERMIT FEES. The Pennittee shall be charged a pemut fee of $404 plus applicable sales tax per month this Permit is in effect. Permittee shall pay the City the monthly fee on or before the first day of each month beginning June 1, 2018. Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, 210 Fidalgo Avenue, Kenai, Alaska 99611 on or before the first of each month. In addition to the permit fee specified above, Permittee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: A.
Sales tax now enforced, or levied in the future, computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis;
B.
All necessary licenses and permits, pay all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Permittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Pennit, provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided for by law.
Special Use Pennit- Reddi Towing & Salvage, LLC
Page I of 6
281
C.
Interest at the rate of 8% per annum and penalties of 10% of any amount of money owed under this Special Use Permit, which money or fee not paid on or before the date it becomes due.
D.
Costs and expenses incident to this Special Use Permit including, but not limited to, recording costs.
3. USE. The use of the Premises by Permittee is limited to the purpose specified: Impound Lot. This use is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Use of the Premises is subject to the following conditions: A.
Permittee shall maintain the fence on the Premises in good repair. Any fence repair and/or maintenance shall be completed from inside the fence.
B.
Permittee shall use the Premises only for the storage of impounded vehicles (no wrecked or junk vehicles).
4. INSURANCE. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Pe1mittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A.
Garage Liability or Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broadform contractual, with a per-occun-ence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee's fuel handling activities. The policy must name the City as an additional insured.
B.
Worker's compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit.
C.
Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occun-ence. This insurance must cover all owned, hired, and non-owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured.
Special Use Permit-Reddi Towing & Salvage, LLC
Page 2of6
282
All insurance required must meet the following additional requirements:
D.
i.
All policies will be by a company/corporation currently rated "A-" or better by A.M. Best.
IL
Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf.
111 .
Permittee shall request a waiver of subrogation against City from Pemuttee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City.
1v.
Provide the City with notification at least 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder.
v.
Evidence of insurance coverage must be submitted to City by June 1, 2018. The effective date of the insurance shall be no later than June 1, 2018.
vi.
This insurance shall be primary and exclusive of any other insurance carried by the City of Kenai. This insurance shall be without limitation on the time within which the resulting loss, damage, or injury is actually sustained.
5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City' s staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with its use of the Premises. This shall be a continuing release and shall remain in effect after termination of this Special Use Permit. 6. PERMITTEE'S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not permit any liens including, but not limited to, mechanics', laborers', material men' s, or mining liens or any other liens obtainable or available under existing Special Use Permit-Reddi Towing & Salvage, LLC
Page 3of6
283
law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed to have been furnished to Permittee or to the Permittee's agents, contractors, or related entities, in connection with materials supplied to Pe1mittee for its activities on the Premises and/or in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Permittee. Provided, however, the Permittee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee' s own expense.
7. PERSONALITY. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Pennit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 8. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions, and/or any requirement herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such tern1s, conditions or requirements. 9. TERMINATION; DEFAULT. This Permit may be terminated by either party hereto by giving 60 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 60 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 10. NO DISCRIMINATION. Pemuttee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Perrnittee recognizes the right of the City to take any action necessary to enforce this requirement.
11.
ASSIGNMENT. Permittee may not assign, by grant or implication, the whole or
Special Use Permit- Reddi Towing & Salvage, LLC
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any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this Permit which an assignee fails to perform. 12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its use of the Premises. 13. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint venturer of Pen:nittee in the conduct of its business or activities on the Premises. 14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this permit shall survive the cancellation, termination or expiration of this permit. 15. AUTHORITY. By signing this Permit, Permittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the company to bind the company hereunder. CITY OF KENAI
REDDI TOWING & SALVAGE LLC
By:
By:
---------~
Paul Ostrander City Manager
- -- -- - - - - Charles Rediske Member
ACKNOWLEDGMENTS STATE OF ALASKA
)
THIRD JUDICIAL DISTRICT
)
) SS.
THIS IS TO CERTIFY that on the _ _ day of , 2018, Paul Ostrander, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska My Commission Expires: _ _ _ __
Special Use Permit- Reddi Towing & Salvage, LLC
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STATE OF ALASKA
) ) SS.
THIRD JUDICIAL DISTRICT
)
THIS IS TO CERTIFY that on this __ day of 2018, the foregoing instrument was acknowledged before me by Charles Rediske, Member of Reddi Towing & Salvage, LLC, and Alaska limited liability company, on behalf of the Company.
Notary Public for Alaska My Commission Expires: _ _ __ _ ATTEST:
Jamie Heinz, City Clerk SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Y:\Airport\SUP\Reddi Towing\2017 0317 Reddi To\ving SUP.docx
Special Use Permit-Reddi Towing & Salvage, LLC
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Ir\
__
\.
TR.A
2
TR. A-1
287
Exhibit A
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
FROM:
Jamie Heinz, City Clerk
DATE:
May 8, 2018
SUBJECT:
Dipnet Vendors
At their meeting on 12/06/2017, Council asked Administration to address mobile vendors during the dipnet fishery. While the City has always allowed vendors to operate in the parking areas during the fishery, treating them the same as any other vehicle parking in the area, we decided the dipnet vendors could be addressed by providing consistency to the dipnet fishery users while at the same time providing an opportunity for local businesses to expand their business. Feedback from the industry showed that most vendors felt the venue could be better, wanted to see some sort of exclusivity, easier access, a specific vendor area, and suggested on-site electric and potable/grey water dumping and refill site nearby. While the electricity and dumping/refilling site will need to be accomplished in future years, we felt that we could accomplish some of the suggestions in the near term and, combined with more consistency the fishery users could depend on, the venue would improve for them. To accomplish our goal and requests from the industry, we’ll be developing a simple application for the vendors to complete and will encourage local businesses to apply. The applications will ask for brief information about what the vendor offers, days and hours they will operate, where they are based out of, and their facilities, which will then be ranked. Additional points will be given to applicants that currently operate in the City of Kenai. We have outlined what we feel to be the safest area, facing the beach, where two food vendors, one specialty coffee vendor, and one ice vendor will be situated and the highest ranking applications of each type will be the vendors chosen to operate. The outlined area has enough space for the vendor’s ‘facility’ and at least one support vehicle; we will be giving the vendors vendor specific parking passes to come and go as they need. With this plan, we’ve provided an opportunity for local businesses to expand their business, exclusivity, easier access, and a specific vendor area. By also selecting vendors that will commit to operating for the most amount of time, we hope that over time, the fishery users see this consistency and will utilize these vendors instead of bringing loaded coolers from their hometowns.
288
Page 2 of 2 Dipnet Vendors In the case that we did not have enough of the specific vendors apply, we would allow another vendor to come in by the day. For instance, if we did not have a specialty coffee vendor apply to operate the entire time, we would allow a specialty coffee vendor to operate on a day by day basis or, if we only had one food vendor apply, we would allow another food vendor to operate on a day by day basis but we would never allow a third food vendor operate in a specialty coffee vendor slot or visa versa. We are doing this as a pilot project for this season and once we have more insight in how well it works we will make changes to the code as necessary. As requested, we took the plan to the Parks and Recreation Commission and the Harbor Commission; both commissions felt the plan was well thought out. If there are any questions, I am happy to answer them.
289
290
South Spruce Street Vendor 2A
Vendor 3A
Vendor 4A
VAN ACCESSABLE
Protected Dunes Pedestrian Trail
VAN ACCESSABLE
Vendor 1A
KENAI HARBOR COMMISSION MAY 7, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR CHRISTINE HUTCHINSON, PRESIDING MEETING SUMMARY
1.
CALL TO ORDER
Chair Hutchinson called the meeting to order at 6:00 p.m. a. Pledge of Allegiance Chair Hutchinson led those assembled in the Pledge of Allegiance. b. Roll Call Roll was confirmed as follows: Commissioners present:
Chair C. Hutchison, Vice-Chair N. DuPerron, M. Dunn, G. Greenberg, B. Peters, C. Crandall
Commissioners absent:
J. Desimone
Staff/Council Liaison present:
City Manager P. Ostrander, City Clerk J. Heinz, Public Works Assistant K. Feltman, Council Member B. Molloy
A quorum was present. c. Agenda Approval MOTION: Commissioner DuPerron MOVED to approve the agenda as presented. Commissioner Crandall SECONDED the motion. There were no objections; SO ORDERED. 2.
SCHEDULED PUBLIC COMMENTS – None.
3.
UNSCHEDULED PUBLIC COMMENT – None.
4.
APPROVAL OF MEETING SUMMARY a. April 9, 2018
MOTION: Commissioner DuPerron MOVED to approve the meeting summary of April 9, 2018; and Commissioner Crandall SECONDED the motion. There were no objections; SO ORDERED.
____________________________________________________________________________________ Harbor Commission Meeting May 7, 2018
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5.
UNFINISHED BUSINESS – None.
6.
NEW BUSINESS a. Discussion – Dip Net Vendor Operation
City Clerk Heinz informed the Commission that the City of Kenai wanted to provide consistency to dipnet fishery users while at the same time providing an opportunity for local businesses to expand their business. Heinz presented an outline used for gathering vendor information, which led to the development of a more streamlined approach including specific vendor location and ease of access, size of space, and exclusivity for certain items. The proposed vendor operations would consist of two food vendors, one specialty coffee vendor, and an ice vendor. City Clerk Heinz addressed questions concerning size, costs, and areas of operation. 7.
REPORTS a. Public Works Director – City Manager Ostrander discussed the feasibility study for the Bluff Erosion project and the request for an extension; and noted that there was a joint work session with the Kenai Peninsula Borough, City of Kenai, Soldotna, Seldovia and Homer, and discussed an increase in Borough sales tax. Ostrander further reported that the requested sub-committee was approved by Council to review/determine the Harbor Commission’s roles and responsibilities; and he provided an update on the No Wake sign that would be posted June 1. b. Commission Chair – None. c. City Council Liaison – Council Member Molloy reported on the May 2 Council Meeting actions, as provided in the packet, and noted that the formation of a Harbor Commission sub-committee was unanimously approved and that Council Member Glendening would be the Liaison for it. Molloy further noted the joint work session was a success and there was thorough discussion.
8.
NEXT MEETING ATTENDANCE NOTIFICATION – June 11, 2018
9.
COMMISSIONER COMMENTS AND QUESTIONS
Commissioners expressed support of the No Wake sign wording and having it up year-round. Commissioner DuPerron noted interest in the sub-committee providing a monthly update to the Commission on the progress of determining the roles and responsibilities. 10.
ADDITIONAL PUBLIC COMMENT
Council Member Glendening thanked City Manager Ostrander for his leadership, specifically in Harbor Commission recommendations to Council and follow-up. 11.
INFORMATION ITEMS – None.
____________________________________________________________________________________ Harbor Commission Meeting May 7, 2018
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12.
ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 6:49 p.m.
Meeting summary prepared and submitted by:
_____________________________________ Jacquelyn Kennedy Deputy City Clerk
____________________________________________________________________________________ Harbor Commission Meeting May 7, 2018
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KENAI PARKS & RECREATION COMMISSION MAY 3, 2018 – 7:00 PM KENAI CITY COUNCIL CHAMBERS CHAIR CHARLIE STEPHENS, PRESIDING MEETING SUMMARY 1.
CALL TO ORDER
Chair Stephens called the meeting to order at 7:05 p.m. a. Pledge of Allegiance Chair Stephens led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners present:
C. Stephens, T. Wisniewski, J. Joanis, S. Kisena, F. Perez
Commissioners absent:
J. Halstead, N. Widmayer
Staff/Council Liaison present:
Parks & Rec Director B. Frates, City Clerk J. Heinz
A quorum was present. c. Agenda Approval MOTION: Commissioner Kisena MOVED to approve the agenda as presented; Commissioner Wisniewski SECONDED the motion. There were no objections; SO ORDERED. 2.
SCHEDULED PUBLIC COMMENTS a.
Bike Friendly Community Representative
Matt Pyhala introduced himself as being part of a local bike group working towards promoting biking in Kenai and Soldotna. Mr. Pyhala explained that the group consisted of approximately ten members and their goal was to get both communities designated as bike friendly communities through the League of American cyclists. He added that getting this designation would help the marketing and tourism industry, and provide great opportunities. Mr. Pyhala noted that the group was currently coordinating with both Kenai and Soldotna Parks and Recreation Departments on getting a couple bike repair stations built and assisting with a bike safety event in collaboration with Wal-Mart. He clarified that both would be small actionable steps to promote biking and safety in the communities. Mr. Pyhala reported that the next group meeting would be on May 21 at Kenai River Brewing and welcomed additional attendance. 3.
UNSCHEDULED PUBLIC COMMENT – None.
294
4.
APPROVAL OF MEETING SUMMARY a. February 1, 2018
MOTION: Commissioner Kisena MOVED to approve the meeting summary of February 1, 2018 and Commissioner Perez SECONDED the motion. There were no objections; SO ORDERED. b. March 1, 2018 MOTION: Commissioner Kisena MOVED to approve the meeting summary of March 1, 2018 and Commissioner Wisniewski SECONDED the motion. There were no objections; SO ORDERED. 5.
UNFINISHED BUSINESS – None.
6.
NEW BUSINESS a. Discussion – 2018 Dip Net Vendor Operation
City Clerk Heinz informed the Commission that during the personal use fishery, vendors had always been allowed, but the City of Kenai was interested in providing more consistency and better opportunities. Heinz presented an outline used for gathering vendor information, which led to the development of a more streamlined approach including location, size of space, and exclusivity for certain items. Several questions concerning size, costs, and possibility for local preference were addressed by Heinz. 7.
REPORTS a. Parks and Recreation Director – Frates reported on the following: • Temporary Hire interviews were complete and the Department was looking forward to a busy summer season; and • The Department would be working with the bike group on the May 12 Bike Safety Day and anticipated a bike repair station would be complete and used for a static display. b. Commission Chair – Stephens thanked everyone for their hard work, including members of the bike group for promoting biking. c. City Council Liaison – None.
8.
NEXT MEETING ATTENDANCE NOTIFICATION – June 7, 2018
9.
COMMISSION QUESTIONS & COMMENTS
Commissioner Perez inquired if the playground equipment at 4th Avenue Park would be replaced this summer. Director Frates clarified that funds were not allocated for replacement of playground Parks and Recreation Commission Meeting May 3, 2018 Page 2
295
equipment for FY2019. 10.
ADDITIONAL PUBLIC COMMENT – None.
11.
INFORMATION a. 2018 Flower List
12.
ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 7:45 p.m. Meeting summary prepared and submitted by:
_____________________________________ Jacquelyn Kennedy Deputy City Clerk
Parks and Recreation Commission Meeting May 3, 2018 Page 3
296
KENAI PLANNING & ZONING COMMISSION REGULAR MEETING APRIL 25, 2018 - 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVENUE, KENAI, ALASKA http://www.kenai.city MINUTES 1. CALL TO ORDER Commission Chair Twait called the meeting to order at 7:00 p.m. a. Pledge of Allegiance Commission Chair Twait led those assembled in the Pledge of the Allegiance. b. Roll Call Commissioners present:
Chair J. Twait, Vice-Chair R. Springer, J. Halstead, K. Peterson, V. Askin, D. Fikes
Commissioners absent:
G. Greenberg
Staff/Council Liaison present:
City Manager P. Ostrander, City Planner E. Appleby, Deputy City Clerk J. Kennedy, Planning Assistant W. Anderson, Council Liaison J. Glendening
A quorum was present. c. Agenda Approval MOTION: Commissioner Halstead MOVED to approve the agenda and Commissioner Peterson SECONDED the motion. There were no objections; SO ORDERED. d. Consent Agenda MOTION: Commissioner Halstead MOVED to approve the consent agenda and Commissioner Peterson SECONDED the motion. There were no objections; SO ORDERED. *All items listed with an asterisk (*) are considered to be routine and non-controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. e. *Excused absences – G. Greenberg
297
2.
*APPROVAL OF MINUTES: April 11, 2018
The minutes were approved by the Consent Agenda. 3.
SCHEDULED PUBLIC COMMENT: (10 minutes) None scheduled.
4.
UNSCHEDULED PUBLIC COMMENT: (3 minutes) None.
5.
CONSIDERATION OF PLATS: a. Resolution PZ2018-07 Original Preliminary Plat of Beluga Subdivision 2015 Replat Right-of-Way Vacation, submitted by Integrity Surveys, 820 Set Net Dr., Kenai, AK 99611, on behalf of Kenai New Life Assembly of God, 209 Princess Lane, Kenai, AK 99611
COMMISSIONER FIKES ARRIVED AT 7:03 PM City Manager Ostrander reviewed the staff report, as provided in the packet, noting that the purpose of this plat is to vacate the Right-of-Way of Beluga Drive West; vacate a fifteen foot (15’) utility easement; and dedicate a thirty foot (30’) utility easement which encompasses the existing underground water line. He further noted that the property owner would also like to vacate the fifteen foot (15’) utility easement along the southern boundary of Tract 5, Beluga Subdivision 2015 Replat & Right-of-Way vacation. Ostrander added that the City of Kenai does not object to the vacation of the utility easement because the property owner was dedicating a thirty foot (30’) utility easement which will be centered on the existing underground water line, allowing the City access to it. Planning and Zoning Staff recommended approval of the preliminary plat of Beluga Subdivision 2015 Replat Right-of-Way Vacation, subject to the following conditions: • • •
Further development of the property shall conform to all Federal, State and local Regulations; The City Council for the City of Kenai must approve the vacation of the sixty foot (60’) Right-of-Way for Beluga Drive West, pursuant to Kenai Municipal Code 22.05.110; and The City Council for the City of Kenai must approve the vacation of the fifteen foot (15’) utility easement as shown on the proposed plat, pursuant to Kenai Municipal Code 22.05.110.
MOTION: Commissioner Askin MOVED to approve Resolution No. PZ2018-07 with staff recommendations and Commissioner Springer SECONDED the motion. Chairman Twait opened the floor for public testimony; there being no one wishing to be heard, public comment was closed. VOTE: YEA: Twait, Springer, Halstead, Peterson, Askin, Fikes NAY: ____________________________________________________________________________________ Planning and Zoning Commission Meeting April 25, 2018
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MOTION PASSED. 6.
PUBLIC HEARINGS: a. Resolution PZ2018-08 – Application for a Conditional Use Permit to Construct a Residential Six-Family Dwelling Unit for Seniors Age 55 and Older, located at 2392 Redoubt Avenue, Kenai, Alaska, 99611, and further described as Lot 1, Kenai Meadows. The application was submitted by Kenai Peninsula Housing Initiatives, P.O. Box 1869, Homer, Alaska 99603
City Manager Ostrander reviewed the staff report, as provided in the packet, noting that the City of Kenai conveyed Lot 2, Kenai Meadows, to Kenai Peninsula Housing Initiatives Inc. in May 2017 and Lot 1, Kenai Meadows, to Kenai Peninsula Housing Initiatives Inc. in March 2018. He further noted the Quitclaim Deeds conveying Lots 1 and 2, Kenai Meadows, from the City of Kenai to Kenai Peninsula Housing Initiatives Inc. contained the following restriction: Per City of Kenai Ordinance 2899-2016, in the event of a land sale, to a for Profit entity, the value of the property shall be reimbursed to the City, if the Sale occurs within twenty (20) years after transfer to Kenai Peninsula Housing Initiatives, Inc. This application was specifically for Lot 1. Based on the application and a review of the criteria required to approve the permit, the application met the intent of the zone and complied with the Comprehensive Plan. Staff recommended approval with the following conditions: • • • • •
Further development of the property shall conform to all Federal, State, and local regulations; Prior to issuance of a Building Permit, a Landscape/Site plan must be reviewed and approved by the City Planner; Prior to beginning construction of the project, a building permit must be issued by the Building Official for the City of Kenai; A biennial fire inspection must be completed by the Fire Marshall for the City of Kenai; and A yearly Conditional Use Permit report must be submitted to the City of Kenai prior to the 31st day of December of each year.
MOTION: Commissioner Springer MOVED to approve Resolution No. recommendations and Commissioner Askin SECONDED the motion.
PZ2018-08
with
staff
Chairman Twait opened the floor for public testimony; there being no one wishing to be heard, public comment was closed. Commissioner Peterson noted he would be voting in support but wondered about the existing structure and if it would be sharing the paved common parking area. Representative of the Petitioner, Connie Van clarified that this residential unit would have its own entrance and parking area, it would not be shared with the common parking lot.
____________________________________________________________________________________ Planning and Zoning Commission Meeting April 25, 2018
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VOTE: YEA: Twait, Springer, Halstead, Peterson, Askin, Fikes NAY: MOTION PASSED. Chairman Twait noted there was a 15-day appeal period. 7.
UNFINISHED BUSINESS: None.
8.
NEW BUSINESS: None.
9.
PENDING ITEMS: None.
10.
REPORTS: a. City Council – Council Member Glendening reviewed the action agenda from the April 18 City Council Meeting; noted that he was invited to sit in on the Mineral Extraction Committee and nominated by the Borough Mayor to be part of the committee for the Gas Project on North Road in the interest of the City of Kenai; and he offered to sponsor an Ordinance for the Commission regarding limiting cultivation facilities in the City of Kenai. b. Borough Planning – Commissioner Fikes noted that the Borough Planning Committee met on April 24 and conditionally approved five plats, and recommended approval on an Ordinance regarding the foreclosed properties on a Cooper Landing homestead, to be sold back to the family by the Borough. c. Administration – City Manager Ostrander reported on the following: • On April 5 there was a City Managers meeting at Kenai Peninsula Economic Development District; • On May 7 there will be a joint work session with the Borough Assembly to discuss the fiscal gap and how it could affect the local cities; • The Harbor Commission meeting on April 9 recommended that No Wake signs be at the mouth of the Kenai River and it was on the City Council agenda for review next week; • Received full funding for the Bluff Erosion feasibility study and the City of Kenai will be requesting an extension from the current deadline of May 15; and • The new City Planner, Elizabeth Appleby will be taking over at the Commission meetings beginning next month.
11.
ADDITIONAL PUBLIC COMMENT – None.
12.
INFORMATIONAL ITEMS a. b. c. d.
Planning & Zoning Resolutions – First Quarter 2018 Code Enforcement – First Quarter 2018 Building Permits – First Quarter 2018 Revised Plat of Aleyeska Subdivision 2017 Replat
____________________________________________________________________________________ Planning and Zoning Commission Meeting April 25, 2018
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City Manager Ostrander noted Item 12(d) was on the agenda because of a change with the utilities easement from what was previously presented, the phone line would be re-routed. 13.
NEXT MEETING ATTENDANCE NOTIFICATION: May 9, 2018
14.
COMMISSION COMMENTS & QUESTIONS
Commissioner Peterson thanked Ostrander for filling in as City Planner during the interim period and transition; and thanked Glendening for his report. 15.
ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 7:26 p.m. Minutes prepared and submitted by: _____________________________ Jacquelyn Kennedy Deputy City Clerk
____________________________________________________________________________________ Planning and Zoning Commission Meeting April 25, 2018
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MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Mary Bondurant – Airport Manager
DATE:
May 7, 2018
SUBJECT:
May Mid-month Report
2016 Fencing Rehabilitation – This project received final approval through the FAA OEAAA and we are waiting FAA approval to advertise. 2017 Terminal Rehabilitation Project – Design Grant – WCB will provide City Administration with a 35% plan set around May 15th for review and comment. In-house Activities – April 23-25, 2018 – The FAA Certification Inspection and the Airport’s Project Engineer visited for three days. They also toured the Regional Fire Training Facility to actually see real time training exercises. The Airport inspection went very well! May 4-6, 2018 Great Alaska Gathering – The Airport Manager and Administrative Assistant attended this three day event. This was a great opportunity to showcase the airport and advertise the 18th Kenai Peninsula Air Fair. May 21, 2018 – The night before the RSAT meeting, there will be a GA pilot meeting to promote pilot participation in surface safety discussions. More information to be available. May 22, 2018 Runway Safety Action Team – This meeting will be held in Kenai City Council Chambers at 2:30pm. Invitations will be mailed to Air Traffic Control Tower and Flight Service Station personnel along with local pilots and other airport users. The team consists of FAA officials who inspect the airfield and review operating procedures to enhance safety at a towered airport.
302
Page 2 of 2 May Mid-month June 6-7, 2018 - The bi-annual Alaskan Region Airports Division Workshop will be held in Anchorage. Anticipated topics include the AIP program, guidance, compliance, environmental, planning, lessons learned, regional and national perspectives, and more! June 9, 2018 – it’s coming!! The 18th Annual Kenai Peninsula Air Fair! Airport staff is busy working on the poster, activities, and vendors. If you would like to volunteer, please contact my office.
303
MEMORANDUM TO:
Paul Ostrander, City Manager
THROUGH:
Dave Ross, Police Chief
FROM:
Jessica “JJ” Hendrickson, Animal Control Chief
DATE:
05/07/18
SUBJECT:
April 2018 Animal Control Monthly Report
This month the Kenai Animal Shelter took in 69 animals. Animal intake and disposition: DOGS: INTAKE Waiver Stray Impound Protective Custody Quarantine Other Intakes CATS: INTAKE Waiver Stray Impound Protective Custody Quarantine Other Intakes OTHER ANIMALS: INTAKE DOA: Dog Cat
40 DISPOSITION 10 Adopted 24 Euthanized 0 Claimed 1 Field Release 1 Transferred to Rescue 4 Other Dispositions
11 1 12 0 3 0
29 DISPOSITION Adopted Euthanized Claimed Field Release Transferred to Rescue Other Dispositions
10 5 4 0 16 0
0
0
8 21 0 0 0 0
DISPOSITION
2 OTHER STATISTICS: 2 Licenses (City of Kenai Dog Licenses) 0
Microchips (Dog and Cat)
Rabies Clinic
27
35
10 53
343 304
Page 2 of 2
5 5 59.10 32 34
Citations Animal dropped with After Hours (days we are closed but cleaning and with KPD) Volunteer Hours Logged Animals are known borough animals Field Investigations & patrols
Statistical Data: 206 2016 YTD Intakes 223 2017 YTD Intakes 228 2018 YTD Intakes
305
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Terry Eubank, Finance Director
DATE:
May 9, 2018
SUBJECT:
Finance Department, May 2018 Mid-month Report
The past month has been a busy one with much of the department’s focus on the preparation of the City’s FY2019 Budget. Budget Ordinance introduction is scheduled for the May 16th Council meeting and adoption on June 6th. The budget work session is scheduled for May 19th for which every department is preparing. City code requires adoption by June 10th. The Resolution establishing the 2018 mill rate will be included in the packet for adoption June 6th to coincide with adoption of the FY2019 Budget Ordinance. The department is working on a renewal plan with PREMERA Blue Cross Blue Shield of Alaska for employee health care insurance. A resolution authorizing renewal will be before Council for passage at the June 6th Council meeting. The City is negotiating with PREMERA through our broker, USI Insurance Services, to get the best renewal rate and coverage for the City and its employees. Renewal plans include representative from USE Insurance, and PREMERA meeting with employees in early June. The department submitted its property, liability and workers’ compensaton insurance premium credit application for the upcoming renewal year. This is a large document that takes cooperation from all departments. Special thanks is owed to Ms. Feltman of Public Works for her assistance in putting the document together. This document is a bit time consuming but has reduced the City’s insurance costs by an average of $40,000 per year. The document shows the commitment to safety, training and education by the City and its employees. A resolution authorizing renewal of coverage for FY2019 will be before Council for passage at the June 6th Council meeting. The department is preparing for the upcoming Personal Use Fishery. Preparation includes updates to the Dip Net App, updates to our point of sale software, and installation of utlities to our Main Street camera.
306
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Terry Eubank, Finance Director
DATE:
May 9, 2018
SUBJECT:
Quarterly Financial Report
Attached is a relatively easily produced quarterly financial report for the General Fund, Personal Use Fishery Fund, Airport Fund, Water/Sewer Fund, and Senior Fund as of March 31, 2018. This report is essentially on a cash basis, so there are accounts that may not look reasonable. In the General Fund for example, sales and property tax revenue only includes payments made to the City by the Borough through February. The first calendar quarter 2018 sales tax filings and tax payments are not in at this point and we will not be received for this quarter until the end of April or early May. State and Federal is below budget in all funds because of PERS aid. The State doesn’t actually give us any money. Instead they make an ‘on-behalf’ payment to the pension system. Similarly we have not booked expenditures for the PERS the State is covering, so the Non-Departmental department is way under budget. At year-end we will record revenue and expenditures for these items.
307
Quarterly General Fund Expenditure Report For Quarter Ended March 31, 2018 7/1/2016 6/30/2017 FY2017 Actual REVENUES Appropriation of Fund Balance Taxes Licenses/Permits and Ambulance State/Federal Dock/Multipurpose/Miscellaneous Fines and Forfeitures Interest and Miscellaneous Transfers/Central Admin Fees
$
Total Revenues EXPENDITURES & TRANSFERS General Government 01 City Clerk 11 Legislative 12 Legal 13 City Manager 15 Finance 16 Land Administration 18 Non-Departmental 19 Planning and Zoning 20 Safety Total General Government
10,635,298 500,653 866,746 131,686 83,094 350,884 1,802,305
$
14,370,666
$
269,306 164,434 302,161 350,859 603,313 26,620 581,874 203,539 2,420 2,504,526
$
7/1/2017 7/1/2017 Original * FY2018 Budget
Amended Budget
881,115 10,837,263 528,000 651,238 119,500 89,500 404,595 2,082,393
$ 908,287 10,837,263 528,000 672,673 119,500 95,651 410,745 2,082,393
15,593,604
15,654,512
298,355 169,955 354,743 350,254 685,410 17,740 655,125 231,455 21,150 2,784,187
7/1/2017 6/30/2018
$
299,905 169,955 354,743 350,254 685,410 17,740 656,725 231,455 21,150 2,787,337
7/1/2017 3/31/2018 YTD Actual
Variance
%
7,794,736 407,146 457,550 138,353 67,729 424,861 1,176,675
$ (908,287) (3,042,527) (120,854) (215,123) 18,853 (27,922) 14,116 (905,718)
0.00% 71.93% 77.11% 68.02% 115.78% 70.81% 103.44% 56.51%
10,467,050
(5,187,462)
66.86%
118,752 34,385 139,283 109,607 213,941 17,392 266,233 85,064 17,830 1,002,487
39.60% 20.23% 39.26% 31.29% 31.21% 98.04% 40.54% 36.75% 84.30% 35.97%
$
$
181,153 135,570 215,460 240,647 471,469 348 390,492 146,391 3,320 1,784,850
$
Public Safety 21 Police 22 Fire 23 Communications 29 Animal Control Total Public Safety
2,640,497 2,935,855 726,457 376,981 6,679,790
2,921,899 3,103,846 854,200 419,777 7,299,722
2,932,485 3,111,346 854,200 419,777 7,317,808
2,069,410 2,171,853 575,341 284,342 5,100,946
863,075 939,493 278,859 135,435 2,216,862
29.43% 30.20% 32.65% 32.26% 30.29%
Public Works 31 Public Works Administration 32 Shop 33 Streets 34 Buildings 35 Street Lighting 60 Dock Total Public Works
215,606 627,020 846,987 304,240 154,579 66,018 2,214,450
233,669 647,332 985,460 341,444 167,409 93,348 2,468,662
233,669 647,332 985,460 341,444 167,409 93,348 2,468,662
150,564 396,298 553,660 212,861 106,554 24,036 1,443,973
83,105 251,034 431,800 128,583 60,855 69,312 1,024,689
35.57% 38.78% 43.82% 37.66% 36.35% 74.25% 41.51%
Parks and Recreation & Culture 03 Visitor Center 40 Library 45 Parks, Recreation & Beautification Total Parks and Recreation & Culture
177,795 839,714 1,079,155 2,096,664
182,404 912,585 1,119,256 2,214,245
182,404 922,085 1,122,256 2,226,745
131,046 629,109 717,553 1,477,708
51,358 292,976 404,703 749,037
28.16% 31.77% 36.06% 33.64%
13,495,430
14,766,816
14,800,552
9,807,477
4,993,075
33.74%
78,000 208,400 35,000 100,000 183,291 140,439 745,130
48,000 35,000 120,000 35,000 250,000 196,730 142,058 826,788
75,172 35,000 120,000 35,000 250,000 196,730 142,058 853,960
48,000 35,000 120,000 35,000 250,000 49,182 142,002 679,184
27,172 147,548 56 174,776
14,240,560
15,593,604
15,654,512
10,486,661
5,167,851
Total Operating Expenditures Transfer to other funds Street Improvement Capital Project Fund Senior Center Impr. Capital Projects City Dock Capital Project Fund New City Shop Capital Project Fund Public Safety Building Capital Proj. Fund Kenai Animal Shelter Capital Proj. Fund Cemetery Improvements Capital Proj. Fund Employee Health Care Internal Svc. Fund Senior Citizen Special Revenue Fund Debt Service Total Transfer to other funds Total Expenditures & Transfers Net Revenues over(under) Expenditures
$
130,106
$
-
* Note: The original budget includes outstanding encumbrances at 6/30/2017.
$
-
$
(19,611)
$
(19,611)
36.15% 0.00%
75.00% 0.04% 20.47% 33.01%
308
Quarterly Personal Use Fishery Fund Expenditure Report For Quarter Ended March 31, 2018 7/1/2016 6/30/2017 FY2017 Actual REVENUES Beach Parking Beach Camping Dock Launch & Park Dock Parking Only Participant Drop-off Fee Interest Earnings PERS Grant Credit Card Fees Total Revenue EXPENDITURES Public Safety Streets Boating Facility Parks, Recreation & Beautification Total Expenditures Net Revenues over Expenditures
7/1/2017 7/1/2017 Original * FY2018 Budget
7/1/2017 6/30/2018
7/1/2017 3/31/2018
Amended Budget
YTD Actual
Variance
$
182,853 238,752 128,109 14,807 10,717 671 2,688 (3,680) 574,917
$
183,000 239,000 130,000 15,000 11,000 750 2,312 (4,500) 576,562
$
170,429 210,269 111,848 12,009 7,481 750 2,312 (3,291) 511,807
$ 170,429 210,269 111,648 12,009 7,481 4,184 (1,251) 514,769
$
(200) 3,434 (2,312) 2,040 2,962
$
116,874 53,068 72,669 268,686 511,297
$
109,195 51,506 72,347 279,584 512,632
$
115,585 36,377 62,843 233,072 447,877
$
97,304 25,191 49,110 205,960 377,565
$
18,281 11,186 13,733 27,112 70,312
$
63,620
$
63,930
$
63,930
$ 137,204
$
73,274
%
0.00% 0.00% -0.18% 0.00% 0.00% 0.00% -100.00% -61.99% 0.58%
15.82% 30.75% 21.85% 11.63% 15.70%
* Note: The original budget includes outstanding encumbrances at 6/30/2017.
309
Quarterly Airport Fund Expenditure Report For Quarter Ended March 31, 2018 7/1/2016 6/30/2017 FY2017 Actual REVENUES Appropriation of Fund Balance State/Federal Interest , Leases & Fees Terminal Revenues Landing Fees Transfers In
$
29,725 786,527 683,766 529,132 1,175,414
7/1/2017 7/1/2017 Original * FY2018 Budget $
7/1/2017 6/30/2018
7/1/2017 3/31/2018
Amended Budget
23,552 805,326 786,514 375,000 1,191,711
$ 118,765 23,552 805,326 786,514 375,000 1,191,711
YTD Actual $
Variance
%
689,069 497,720 277,947 -
$ (118,765) (23,552) (116,257) (288,794) (97,053) (1,191,711)
0.00% 0.00% 85.56% 63.28% 74.12% 0.00%
3,300,868
1,464,736
(1,836,132)
44.37%
$ 645,425 1,697,943 670,716 (153,811) 38,326 2,898,599
$ 382,981 1,110,018 250,726 111,884 21,341 1,876,950
$ 262,444 587,925 419,990 (265,695) 16,985 1,021,649
40.66% 34.63% 62.62% 172.74% 44.32% 35.25%
Total Revenues
3,204,564
3,182,103
EXPENDITURES & TRANSFERS Terminal Area Airfield Administration Other Buildings & Areas Training Facility Total Expenditures
$ 578,256 1,640,517 411,745 12,510 40,295 2,683,323
$ 645,425 1,697,523 336,914 180,411 38,326 2,898,599
127,437 127,437
-
402,269 402,269
115,981 115,981
286,288 286,288
0.00% 71.17%
Total Expenditures & Transfers
2,810,760
2,898,599
3,300,868
1,992,931
1,307,937
39.62%
Net Revenues over Expenditures
$ 393,804
$ 283,504
$(528,195)
$ (528,195)
Transfer to other funds Airport Improvement Capital Projects Total Transfer to other funds
$
-
* Note: The original budget includes outstanding encumbrances at 6/30/2017.
310
Quarterly Water Sewer Fund Expenditure Report For Quarter Ended March 31, 2018 7/1/2016 6/30/2017 FY2017 Actual REVENUES Appropriation of Fund Balance State/Federal Water/Sewer Fees Penalty and Interest Interest and Miscellaneous Total Revenues EXPENDITURES & TRANSFERS Water Sewer Wastewater Treatment Plant Total Expenditures Transfer to other funds Water & Sewer Capital Projects Employee Health Care Fund Total Transfer to other funds Total Expenditures & Transfers Net Revenues over Expenditures
$
23,142 2,725,982 35,838 9,478
7/1/2017 7/1/2017 Original * FY2018 Budget
Amended Budget
$
$
17,228 2,863,453 43,250 19,000
7/1/2017 6/30/2018
7/1/2017 3/31/2018 YTD Actual
17,228 2,863,453 43,250 19,000
$
Variance
2,107,157 27,391 22,605
$
%
(17,228) (756,296) (15,859) 3,605
#DIV/0! 0.00% 73.59% 63.33% 118.97%
(785,778)
73.30%
399,217 177,181 313,253 889,651
41.89% 34.06% 28.82% 34.75%
2,794,440
2,942,931
2,942,931
2,157,153
$ 715,077 365,094 987,096 2,067,267
$ 864,277 513,830 1,075,372 2,453,479
$ 952,937 520,147 1,086,894 2,559,978
$ 553,720 342,966 773,641 1,670,327
353,792 8,501 362,293
-
-
-
-
2,429,560
2,453,479
2,559,978
1,670,327
889,651
$ 364,880
$ 489,452
$ 382,953
$ 486,826
$
$
34.75%
103,873
* Note: The original budget includes outstanding encumbrances at 6/30/2017.
311
Quarterly Senior Fund Expenditure Report For Quarter Ended March 31, 2018 7/1/2016 6/30/2017 FY2017 Actual REVENUES Appropriation of Fund Balance State Grants USDA Grant Choice Waiver KPB Grant United Way Rents & Leases Donations Meal Donations Transfer from General Fund Other
$
Total Revenues EXPENDITURES & TRANSFERS Senior Citizen Access Congregate Meals Home Meals Senior Transportation Choice Waiver Total Expenditures
208,654 22,415 220,419 126,207 5,977 8,260 14,717 75,321 183,291 241
7/1/2017 7/1/2017 Original * FY2018 Budget $
24,041 198,299 15,000 225,000 126,207 5,977 13,000 80,000 75,000 196,730 300
7/1/2017 6/30/2018
7/1/2017 3/31/2018
Amended Budget $
24,040 198,299 15,000 225,000 126,207 5,977 13,000 114,105 75,000 196,730 300
YTD Actual $
Variance
143,135 10,036 130,427 126,207 9,404 6,177 68,451 62,024 49,183 (48)
$
%
(24,040) (55,164) (4,964) (94,573) 3,427 (6,823) (45,654) (12,976) (147,547) (348)
0.00% 72.18% 66.91% 57.97% 100.00% 157.34% 47.52% 59.99% 82.70% 25.00% -
(388,662)
60.89%
57,060 83,740 100,985 26,649 99,739 368,173
34.29% 35.06% 44.59% 31.79% 35.86% 37.05%
865,502
959,554
993,658
604,996
$ 153,905 218,035 176,509 67,803 249,525 865,777
$ 166,319 236,396 195,103 80,523 281,213 959,554
$ 166,412 238,834 226,450 83,824 278,138 993,658
$ 109,352 155,094 125,465 57,175 178,399 625,485
-
-
-
-
-
865,777
959,554
993,658
625,485
368,173
$
Transfer to other funds Total Transfer to other funds Total Expenditures & Transfers Net Revenues over Expenditures
$
(275)
$
-
$
-
$ (20,489)
$
37.05%
(20,489)
* Note: The original budget includes outstanding encumbrances at 6/30/2017.
312
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Terry Eubank, Finance Director
DATE:
April 30, 2018
SUBJECT:
March 2018 Quarterly Investment Report
City of Kenai Investment Portfolio At March 31, 2018 the City had investments with a market value of $21,063,871 that is down from $22,510,121 at December 31, 2017. The City’s portfolio is yielding 1.53% that is up from 1.31% at December 31, 2017. The Federal Reserve raised the Federal Funds Rate in December and again in March, which increased the portfolios yield but devalued many of the assets held in the portfolio. There is an inverse relationship between bond values and interest rates meaning when interest rates increase, bond values decrease. Fair market value adjustments to the portfolio through March 31, 2018 are a negative $222,699. The relative short duration of the portfolio has limited the negative adjustment and rising interest rates are a welcome event and should increase the City’s investment revenues in years to come. City’s Investment Portfolio US Agency Securities AML Investment Pool Wells Fargo Money Market FDIC Insured Certificates of Deposit Bank Balance Total
$ 5,943,615 492,038 1,814,535 11,929,565 884,118 $ 21,063,871
Permanent Fund Investments The first quarter 2018 saw significant volatility, a bit of a market pullback in the equity markets, and another Federal Funds Rate change. Short term interest rate increases are projected to increase more in 2018 depending upon the performance of the nation’s economy. Equities were a drag on the portfolio which had a return of negative 0.90% for the first quarter 2018. Since inception the portfolio has returned 8.44%. As of March 31, 2018 the portfolio value was $28,864,705, comprised of $25,520,119 (88.41%) Airport Land Sale Permanent Fund, $3,202,031 (11.09%) General Land Sale Permanent Fund monies, and $142,554 (0.50%) Kenai Community Foundation holdings.
313
CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY March 31, 2018 March 31, 2018 Fair Market Value
Current Yield
Cash & Cash Equivalents Wells Fargo Checking
$
884,118
0.00%
Wells Fargo Secured Money Market
1,814,535
1.17%
FDIC Insured Certificates of Deposit
11,929,565
1.81%
492,038
1.27%
15,120,256
1.61%
Alaska Municipal League Investment Pool Total Cash & Cash Equivalents
Average Yield Government Securities Maturities Less than 1 Year
2,988,475
1.17%
482,350
1.50%
Maturities Greater than 2 Years
2,472,790
1.47%
Total Government Securities
5,943,615
1.32%
21,063,871
1.53%
Maturities 1 to 2 Years
Total Portfolio Investment Portfolio - Purchase Price
$
Portfolio Liquidity
$ 20,200,064 20,134,606
Investment Portfolio - Fair Value 06/30/17
$16,000,000
$12,000,000
Fair Value Adjustment - 06/30/17
(65,458) $8,000,000
(157,241)
Fair Value Adjustment thru -03/31/18
$4,000,000
Cummulative Change in Fair Value
$
(222,699)
$0 Liquidity 20% Minimum
Maturity 1 - 2 years
Policy Minimum/Maximum
Maturity over 2 years 30% Maximum
Actual
314
CITY OF KENAI Investments 03-31-18 COK CITY OF KENAI INVESTMENTS 3/31/2018
Expected Call or Maturity
SECURITY FFCB 1.0 08/23/18 FHLMC 0.875 6/26/18 FHLMC 1.35 12/17/18 FHLMC 1.70 8/24/20
FNMA 1.375 3/30/21
FNMA 1.50 5/25/21 TVA 3.875 2/15/21
w/5days after 11/23/16 Bullet 1 TIME 12/17/15 1 TIME 5/24/18 w/ 5 days 9/30/2016 Quarterly w/10 days. Step 3/17 1.50, 3/18 1.75, 3/19 2.0, 3/20 3.25 11/25/2016 Quarterly w/10 days. Bullet
CUSIP
EFFECT. RATE
996,900.00 498,835.00 1,492,740.00
590.00 875.00 (5,730.00)
1,055.56 1,154.51 5,850.00
1.000 0.910 1.380
3134GBMD1
1,000,000
996,460.00
980,730.00
(15,730.00)
1,747.22
1.700
3136G3DV4
1,000,000
988,220.00
972,830.00
(15,390.00)
38.19
1.375
502,479 555,678
489,710.00 537,005.00
482,350.00 519,230.00
(7,360.00) (17,775.00)
2,625.00 2,475.69
1.500 1.370
6,057,648.07
6,004,135.00
5,943,615.00
(60,520.00) 14,946.17
1.097
245,000 247,106 247,000 245,000 247,000 248,095 245,000 245,000 245,000 247,000 247,000 245,000 245,000 245,000 247,000 247,000 245,000 247,000 245,000 245,000 247,000 247,000 247,000 245,000 245,000 245,000 245,000 245,000 245,030 247,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000 247,000 247,000 245,000 245,000 247,000 245,000 245,000 245,000 245,000 245,000 245,000 245,000
244,279.70 248,857.44 248,726.53 244,279.70 246,342.98 246,539.28 245,000.00 245,000.00 245,000.00 246,518.35 249,158.78 245,000.00 245,000.00 245,000.00 246,666.55 247,125.97 245,000.00 246,365.21 245,000.00 244,448.75 246,444.25 247,708.89 246,498.59 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00 245,030.21 246,757.94 245,000.00 244,289.50 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00 247,727.20 248,620.32 245,000.00 245,000.00 246,518.35 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00 245,000.00
244,688.85 247,212.42 247,135.85 244,688.85 246,283.70 246,980.72 242,165.35 239,764.35 242,366.25 245,947.78 243,816.17 241,084.90 242,354.00 243,066.95 243,709.96 246,849.33 243,539.80 243,500.01 244,113.10 244,933.85 244,907.91 246,614.68 246,352.86 240,577.75 240,394.00 242,329.50 243,365.85 242,393.20 243,939.15 246,760.41 242,581.85 244,703.55 243,049.80 243,909.75 243,189.45 237,512.80 238,149.80 246,760.41 247,091.39 243,863.20 240,955.05 245,952.72 243,926.90 240,271.50 238,113.05 239,619.80 242,165.35 242,645.55 243,265.40
12,038,230.90
12,038,904.49
11,929,564.82
1,814,534.67 492,038.30
1,814,534.67 492,038.30
1,814,534.67 492,038.30
20,402,451.94
20,349,612.46
20,179,752.79
884,118.24
884,118.24
884,118.24
21,286,570.18
21,233,730.70
3136G3MW2 880591EL2
CD - 12/31/10 57803 35328 27471 35141 4033 26610 58513 57203 23621 17798 33954 34221 18503 57570 57176 5649 57293 4365 5452 18508 21805 58564 14079 4297 57890 33708 17897 17534 3628 14816 5766 22953 34519 32992 34221 18734 28710 33539 58177 58463 4801 15146 33682 27314 34775 30012 18487 34697 3511
02006LE33 02587CCV0 02587DWJ3 05580AEU4 05890NAF8 062683AF4 064520AH2 06740KLD7 084601KU6 11373QCQ9 1404202E9 14042RHS3 149159LK9 20033AWB8 20084TJW4 254672X78 29278TAK6 32082BEL9 332135HH8 336386AR8 336460CC2 34387ABA6 36198JCK8 38148PNS2 40434YLE5 45906ABU0 489265AZ1 49306SZA7 55266CYJ9 55275FKL1 56062HAD1 58733ACV9 59013JA25 61747MK83 61760ADR7 634116CM7 66612ABX5 740367FJ1 795450VE2 83172HDR8 845182BA1 856191AY7 856285HZ7 87164WTC2 87270LAV5 88413QBT4 89210PBL6 92937CGA0 94986T2N6
Agreed to Amlip
Agreed to WF
TOTAL MONTHS TOTAL CURRENT YIELD Maturity over 2 years 30% Maximum Liquidity 20% Minimum Maturity 1 - 2 years
Accrued Interest
996,310.00 497,960.00 1,498,470.00
Agreed to GL WF Cash
Unrealized Gain or Loss
1,000,000 500,991 1,498,500
TOTAL FDIC Insured CD's
WELLS MONEY MKT AML POOL - City ACCT
Current year cost or 06/30/17 03/31/18 Market Value Market Value
3133EGBG9 3134G32U3 3134G6S95
TOTAL FDIC Insured CD's 1.00 GMATBK 06/18/18 1.95 AXP 11/20/18 2.00 AXP 11/28/18 1.00 BMW 6/18/18 1.20 BNCCTL 9/28/18 1.0 BBDNBK 9/24/18 1.60 BPRN 10/28/19 2.30 BACR 10/18/22 1.65 BHLB 10/28/19 1.35 BRKL 12/28/18 2.4 COF 4/19/22 2.4 COF 8/30/22 1.65 CATY 10/28/19 1.70 ADS 8/28/19 1.65 CWBKNA 12/30/19 1.40 DFS 6/29/18 2.55 CMS 1/18/22 1.60 FRME 12/30/19 2.30 FINN 02/21/20 0.90 FSBSIA 4/20/18 1.50 FSBDQN 6/28/19 1.80 FFIC 12/10/18 1.25 GRBKIW 9/27/18 2.35 GS 8/30/22 2.30 HSBC 7/14/22 1.65 ILBKIL 10/31/19 2.30 KENNEB 08/24/20 1.65 KEY 10/25/19 2.25 MBFI 2/14/20 1.25 MFNC 6/29/18 1.70 MSBKGR 10/24/19 1.00 MVZAVC 6/18/18 1.70 MERICK 8/30/19 2.60 MS 2/15/22 1.75 MS 9/30/19 2.05 NTLNYC 8/30/22 2.15 NRTHFL 10/25/22 1.25 PFBC 6/29/18 2.00 SALLMA 2 11/26/18 2.10 SMARTB 11/27/19 1.75 SOWNAT 5/8/20 1.35 STBFLO 12/28/18 2.75 SBIIN 02/16/23 2.35 SYF 10/20/22 2.15 EVER 10/28/22 2.05 THFDSL 10/27/21 1.60 TWNBNK 10/28/19 1.70 WEX 10/18/19 2.00 WFC 10/27/22
original cost
409.15 (1,645.02) (1,590.68) 409.15 (59.28) 441.44 (2,834.65) (5,235.65) (2,633.75) (570.57) (5,342.61) (3,915.10) (2,646.00) (1,933.05) (2,956.59) (276.64) (1,460.20) (2,865.20) (886.90) 485.10 (1,536.34) (1,094.21) (145.73) (4,422.25) (4,606.00) (2,670.50) (1,634.15) (2,606.80) (1,091.06) 2.47 (2,418.15) 414.05 (1,950.20) (1,090.25) (1,810.55) (7,487.20) (6,850.20) (966.79) (1,528.93) (1,136.80) (4,044.95) (565.63) (1,073.10) (4,728.50) (6,886.95) (5,380.20) (2,834.65) (2,354.45) (1,734.60)
711.51 1,741.86 1,678.25 704.79 24.36 61.15 53.70 2,547.33 1,738.83 36.54 2,663.54 483.29 1,727.75 45.64 22.33 881.08 273.86 21.65 169.82 72.49 20.30 207.07 42.29 473.22 1,188.75 354.41 586.66 1,749.90 271.85 16.92 91.29 704.79 22.82 785.34 375.89 27.52 2,280.18 16.92 1,705.32 56.38 281.92 18.27 812.19 2,571.16 2,208.02 2,146.60 53.70 1,882.81 2,094.25
1.000 1.950 2.000 1.000 1.200 1.000 1.600 2.300 1.650 1.350 2.400 2.400 1.650 1.700 1.650 1.400 2.550 1.600 2.300 0.900 1.500 1.800 1.250 2.350 2.300 1.650 2.300 1.650 2.250 1.250 1.700 1.000 1.700 2.600 1.700 2.050 2.150 1.250 2.000 2.100 1.750 1.350 2.750 2.350 2.150 2.050 1.600 1.700 2.000
(109,339.67) 38,706.51
1.809
-
1,384.50 777.63
1.174 1.270
(169,859.67) 55,814.81 -
-
0.000
21,063,871.03 (169,859.67) 55,814.81 (222,699.15) 1.5223%
Max/Min 6,319,161.31 4,212,774.21
Return 1.9850% 1.1475% 1.7229%
Actual 6,090,102 10,118,124 4,855,646
1.5223%
21,063,871 -
Difference 229,059.49 OK (5,905,349.38) OK
315
CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY March 31, 2018
Fair Market Value
Current or Average
Current Portfolio
Target
Portfolio
Yield
Weight
Weight
Maximum
31-Mar-17
30-Jun-17
30-Sep-17
31-Dec-17
31-Mar-18
1,676,898 1,676,898
1,686,861 1,686,861
1,477,048 1,477,048
1,800,796 1,800,796
2,100,230 2,100,230
0.81%
6.05%
4,872,143 5,438,448 10,310,591
4,074,384 6,085,153 10,159,537
4,757,095 5,738,396 10,495,491
4,868,584 5,851,724 10,720,308
4,902,429 5,661,962 10,564,391
2.28% 3.15% 2.64%
17.59% 19.63% 37.22%
11,987,489
11,846,398
11,972,539
12,521,104
12,664,621
2.58%
43.27%
45.00%
65.00%
5,555,087 1,616,615 2,992,070 10,163,772
5,486,353 1,638,821 3,039,776 10,164,950
5,692,088 1,734,893 3,126,278 10,553,259
5,813,002 1,795,434 3,264,216 10,872,652
5,529,449 1,459,340 2,879,200 9,867,989
20.06% 5.83% 10.80% 36.69%
20.00% 5.00% 10.00% 35.00%
25.00% 10.00% 15.00% 50.00%
International Equities Vanguard Europe Pacific ETF Vanguard Emerging Market ETF Total International Equities
2,791,741 1,420,558 4,212,299
3,020,144 1,351,080 4,371,224
3,182,832 1,458,540 4,641,372
3,192,147 1,462,330 4,654,477
3,335,175 1,940,340 5,275,515
10.08% 5.13% 15.20%
10.00% 5.00% 15.00%
15.00% 10.00% 25.00%
Real Estate Vanguard REIT ETF Total Real Estate
1,342,088 1,342,088
1,081,990 1,081,990
1,080,170 1,080,170
1,078,740 1,078,740
1,056,580 1,056,580
4.84% 4.84%
5.00% 5.00%
10.00% 10.00%
Total Equities
15,718,159
15,618,164
16,274,801
16,605,869
16,200,084
Total Portfolio
27,705,648
27,464,562
28,247,340
29,126,973
28,864,705
100.00%
100.00%
150.00%
Total ALSPF Balance Total GLSPF Balance Total Kenai Community Foundation
24,477,380 3,095,588 132,680
24,282,141 3,046,800 135,621
24,974,224 3,133,627 139,488
25,751,998 3,231,125 143,850
25,520,119 3,202,031 142,554
Fixed Income Cash & Cash Equivalents Total Cash & Cash Equivalents Government & Corporate Securities Government Securities Corporate Securities Total Government & Corporate Securities Total Fixed Income Equities Domestic Equities Standard & Poor's 500 Index Standard & Poor's 600 Small-Cap Index Standard & Poor's 400 Mid-Cap Index Total Domestic Equities
-0.90%
Portfolio Composition
75.00%
50.00%
25.00%
0.00% Fixed Income
Standard & Poor's 500 Index
Standard & Poor's 600 Small-Cap Index
Current Portfolio Weight
Standard & Poor's 400 Mid-Cap Index
Vanguard Europe Pacific ETF
Target Portfolio Weight
Vanguard Emerging Market ETF
Vanguard REIT ETF
Maximum Portfolio Weight
Portfolio Performance
15.00%
10.00%
5.00%
0.00%
-5.00%
Current Month
Current Quarter
Year to Date
Last 1 Year
Inception to Date
Portfolio
-0.02%
-0.90%
-0.90%
7.45%
8.44%
Benchmark
-0.25%
-0.99%
-0.99%
7.11%
8.49%
316
Total ALSPF Balance
$27,000,000
$25,000,000
$23,000,000
Transfer of $1,158,473 to Airport Operations.
$21,000,000
$19,000,000
Transfer of $1,075,123 to Airport Operations.
Transfer of $1,195,313 to Airport Operations.
Transfer of $1,184,356 to Airport Operations.
Transfer of $1,147,714 to Airport Operations.
$17,000,000
$15,000,000
Total GLSPF Balance
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
Transfer of $154,172 to General Fund Operations. Transfer of $135,668 to General Fund Operations.
Transfer of $153,493 to General Fund Operations.
Transfer of $149,802 to General Fund Operations.
$1,000,000
$500,000
$-
$160,000
Total Kenai Community Foundation Balance
$140,000
$50,000 investment.
$120,000 $100,000
Initial investment of $66,143.
$5,000 investment.
$80,000 $60,000 $40,000 $20,000 $-
317
CITY OF KENAI PERMANENT FUNDS Account Statement - Period Ending March 31, 2018
ACCOUNT ACTIVITY
MANAGEMENT TEAM
Portfolio Value on 02-28-18
28,871,906
Contributions Withdrawals Change in Market Value Interest Dividends
0 -359 -82,570 26,064 49,686
Portfolio Value on 03-31-18
28,864,727
Client Relationship Manager:
Amber Frizzell, AIF®
[email protected]
Your Portfolio Manager:
Bill Lierman, CFA®
Contact Phone Number:
907/272 -7575
PORTFOLIO COMPOSITION
INVESTMENT PERFORMANCE Current Account Benchmark: Equity Blend
Emer Mkts 7%
Real Estate 4%
10.00
Int'l 11%
Percent Total Return (Gross)
8.00
6.00
Fixed Income 44%
US Sm Cap 5% 4.00
US Md Cap 10%
2.00
0.00
US Lg Cap 19% -2.00
Portfolio Benchmark
Current Month -0.02 -0.25
Current Quarter -0.90 -0.99
Year to Date -0.90 -0.99
Latest 1 Year 7.45 7.11
Inception to Date 8.44 8.49
Performance is Annualized for Periods Greater than One Year
Clients are encouraged to compare this report with the official statement from their custodian.
318
Alaska Permanent Capital Management Co.
PORTFOLIO SUMMARY AND TARGET CITY OF KENAI PERMANENT FUNDS March 31, 2018
Asset Class & Target FIXED INCOME (45%) US Fixed Income (40.0%)
Market Value
% Assets
Range
10,564,414
36.6
35% to 65%
2,117,449
7.3
0% to 10%
12,681,863
43.9
EQUITY (55%) US Large Cap (20.0%)
5,512,230
19.1
15% to 25%
US Mid Cap (10.0%)
2,879,199
10.0
5% to 15%
US Small Cap (5.0%)
1,459,339
5.1
0% to 10%
Developed International Equity (10.0%)
3,335,175
11.6
5% to 15%
Emerging Markets (5.0%)
1,940,340
6.7
0% to 10%
Real Estate (5.0%)
1,056,580
3.7
0% to 10%
16,182,864
56.1
28,864,727
100
Cash (5.0%) Subtotal:
Subtotal:
TOTAL PORTFOLIO
319
Alaska Permanent Capital Management Co.
PORTFOLIO APPRAISAL CITY OF KENAI PERMANENT FUNDS March 31, 2018
Quantity
Security
Average Cost
Total Average Cost
Pct. Assets
Annual Income
28,461
0.10
1,104
28,862
92 28,553
0.00 0.10
2,749 17,219 1,097,581 1,117,549
2,749 17,219 1,097,581 1,117,549
0.01 0.06 3.80 3.87
Price
Market Value
Yield Accrued to Interest Maturity
FNMA & FHLMC 27,603
FHLMC POOL G14203 4.000% Due 04-01-26 Accrued Interest
104.56
28,862
103.11
92
1.43
92
CASH AND EQUIVALENTS CASH RECEIVABLE DIVIDEND ACCRUAL WF ADV GOVT MM FD-INSTL #1751
CORPORATE BONDS 200,000 200,000 200,000 200,000 200,000 200,000 250,000 200,000 250,000 200,000 200,000 200,000 200,000 200,000 200,000
COMMONWEALTH EDISON 6.950% Due 07-15-18 SOUTHERN CAL EDISON 5.500% Due 08-15-18 TOYOTA MOTOR CREDIT CORP 2.100% Due 01-17-19 MICROSOFT CORP 4.200% Due 06-01-19 TORONTO-DOMINION BANK 2.250% Due 09-25-19 HSBC USA INC 2.375% Due 11-13-19 CAPITAL ONE 2.350% Due 01-31-20 ENTERPRISE PRODUCTS OPER 5.200% Due 09-01-20 PNC BANK NA 2.450% Due 11-05-20 NBC UNIVERSAL MEDIA LLC 4.375% Due 04-01-21 AMERICAN EXPRESS CREDIT 2.250% Due 05-05-21 MORGAN STANLEY 5.500% Due 07-28-21 GILEAD SCIENCES INC 1.950% Due 03-01-22 BANK AMER CORP 3.300% Due 01-11-23 AVALONBAY COMMUNITIES 2.850% Due 03-15-23
123.20
246,400
101.08
202,162
0.70
13,900
2,934
3.10
122.07
244,134
101.07
202,146
0.70
11,000
1,406
2.55
100.48
200,958
99.51
199,024
0.69
4,200
863
2.71
117.24
234,472
102.40
204,796
0.71
8,400
2,800
2.10
101.89
203,782
99.45
198,898
0.69
4,500
75
2.63
99.61
199,216
99.09
198,182
0.69
4,750
1,821
2.95
99.94
249,850
98.38
245,950
0.85
5,875
995
3.27
112.75
225,494
104.67
209,332
0.73
10,400
867
3.17
99.72
249,300
98.45
246,137
0.85
6,125
2,484
3.07
109.20
218,408
103.89
207,788
0.72
8,750
4,375
3.00
99.92
199,850
97.41
194,822
0.67
4,500
1,825
3.13
114.98
229,964
106.81
213,612
0.74
11,000
1,925
3.32
96.28
192,564
95.70
191,396
0.66
3,900
325
3.12
99.34
198,686
99.71
199,416
0.69
6,600
1,467
3.36
100.82
201,632
97.70
195,398
0.68
5,700
253
3.36
320
1
Alaska Permanent Capital Management Co.
PORTFOLIO APPRAISAL CITY OF KENAI PERMANENT FUNDS March 31, 2018
Quantity
Security
150,000 DISCOVERY COMMUNICATIONS 3.250% Due 04-01-23 150,000 NEWELL BRANDS INC 3.850% Due 04-01-23 200,000 Waste Management Inc 2.400% Due 05-15-23 200,000 AFLAC INC 3.625% Due 06-15-23 200,000 BANK OF NEW YORK MELLON 2.200% Due 08-16-23 200,000 JPMORGAN CHASE & CO 3.875% Due 02-01-24 200,000 METLIFE INC 3.600% Due 04-10-24 175,000 PRUDENTIAL FINANCIAL INC 3.500% Due 05-15-24 200,000 WELLS FARGO & COMPANY 3.300% Due 09-09-24 150,000 REYNOLDS AMERICAN INC 4.450% Due 06-12-25 200,000 APPLIED MATERIALS INC 3.900% Due 10-01-25 150,000 CITIGROUP INC 3.700% Due 01-12-26 150,000 ANHEUSER-BUSCH INBEV FIN 3.650% Due 02-01-26 200,000 LOWE'S COS INC 3.100% Due 05-03-27 Accrued Interest
Average Cost
Total Average Cost
Price
Market Value
Pct. Assets
Annual Income
98.88
148,320
97.72
146,578
0.51
4,875
2,437
3.75
106.01
159,022
99.80
149,707
0.52
5,775
2,887
3.89
100.24
200,478
95.39
190,782
0.66
4,800
1,813
3.39
104.97
209,950
101.47
202,936
0.70
7,250
2,135
3.31
97.83
195,666
94.01
188,022
0.65
4,400
550
3.43
105.18
210,362
101.50
203,000
0.70
7,750
1,292
3.59
105.46
210,930
100.16
200,314
0.69
7,200
3,420
3.57
103.15
180,505
99.73
174,534
0.60
6,125
2,314
3.55
99.88
199,764
97.57
195,140
0.68
6,600
403
3.73
108.47
162,700
102.87
154,300
0.53
6,675
2,021
3.99
107.96
215,912
102.71
205,424
0.71
7,800
3,900
3.48
101.65
152,470
98.75
148,126
0.51
5,550
1,218
3.89
103.01
154,519
99.40
149,107
0.52
5,475
912
3.74
100.05
200,098
96.33
192,662
0.67
6,200
2,549
3.57
52,268 5,661,962
0.18 19.62
5,895,408
52,268
DOMESTIC FIXED INCOME FUNDS/ETF 999,900
GOLDMAN SACHS PRIME OBLIGATIONS FUND
1.00
1,000,067
1.00
999,900
3.46
NA
40.67 110.49
1,284,029 1,734,645 3,018,674
43.73 263.15
1,380,775 4,131,455 5,512,230
4.78 14.31 19.10
NA NA
66.27
1,017,251
187.57
2,879,199
9.97
NA
DOMESTIC LARGE CAP EQUITY FUNDS/ETF 31,575 15,700
FLEXSHARES QUAL DIV ETF SPDR S&P 500 ETF
DOMESTIC MID CAP EQUITY FUNDS/ETF 15,350
ISHARES CORE S&P MIDCAP 400 ETF
Yield Accrued to Interest Maturity
321
2
Alaska Permanent Capital Management Co.
PORTFOLIO APPRAISAL CITY OF KENAI PERMANENT FUNDS March 31, 2018
Quantity
Security
Average Cost
Total Average Cost
Price
Market Value
Pct. Assets
Annual Income
Yield Accrued to Interest Maturity
DOMESTIC SMALL CAP EQUITY FUNDS/ETF 18,950
ISHARES S&P SMALLCAP 600 INDEX ETF
31.00
587,456
77.01
1,459,339
5.06
NA
51.54
2,609,459
65.88
3,335,175
11.55
NA
42.08
1,398,057
58.40
1,940,340
6.72
NA
38.58
540,100
75.47
1,056,580
3.66
NA
99.94
24,984
99.53
24,882
0.09
312
118
2.02
99.64
199,281
98.46
196,930
0.68
2,500
1,050
2.24
99.53
522,519
98.51
517,167
1.79
7,219
2,122
2.27
99.85
124,807
98.07
122,587
0.42
1,562
138
2.28
100.06
150,094
95.93
143,895
0.50
1,687
424
2.43
99.34
372,510
99.02
371,325
1.29
7,969
2,003
2.44
100.59
754,414
98.39
737,932
2.56
15,000
6,305
2.47
101.31
531,879
98.23
515,713
1.79
10,500
2,654
2.50
98.24
294,727
99.53
298,593
1.03
7,500
932
2.59
100.23
501,133
98.31
491,545
1.70
11,875
1,476
2.66
100.65
25,162
91.98
22,995
0.08
406
154
2.73
95.26
238,145
94.31
235,782
0.82
5,000
1,892
2.74
95.29
181,049
95.79
181,999
0.63
4,275
1,618
2.75
20,887 3,882,233
0.07 13.45
INTERNATIONAL EQUITY FUNDS/ETF 50,625
ISHARES ETF CORE MSCI EAFE
EMERGING MARKET FUNDS/ETF 33,225
ISHARES ETF CORE MSCI EMERGING MKTS
REAL ESTATE 14,000
VANGUARD REIT ETF
U.S. TREASURY 25,000 200,000 525,000 125,000 150,000 375,000 750,000 525,000 300,000 500,000 25,000 250,000 190,000
US TREASURY NOTES 1.250% Due 11-15-18 US TREASURY NOTES 1.250% Due 10-31-19 US TREASURY NOTES 1.375% Due 12-15-19 US TREASURY NOTES 1.250% Due 02-29-20 US TREASURY NOTES 1.125% Due 06-30-21 US TREASURY NOTES 2.125% Due 06-30-21 US TREASURY NOTES 2.000% Due 10-31-21 US TREASURY NOTES 2.000% Due 12-31-21 US TREASURY NOTES 2.500% Due 08-15-23 US TREASURY NOTES 2.375% Due 08-15-24 US TREASURY NOTES 1.625% Due 05-15-26 US TREASURY NOTES 2.000% Due 11-15-26 US TREASURY NOTES 2.250% Due 11-15-27 Accrued Interest
3,920,703
322
3
20,887
Alaska Permanent Capital Management Co.
PORTFOLIO APPRAISAL CITY OF KENAI PERMANENT FUNDS March 31, 2018
Quantity
Security
Average Cost
Total Average Cost
Price
Market Value
Pct. Assets
Annual Income
Yield Accrued to Interest Maturity
AGENCIES 250,000 FHLMC 1.700% Due 09-29-20 250,000 FEDERAL HOME LOAN BANK - STEP UP 2.000% Due 11-14-22 300,000 FEDERAL FARM CREDIT BANK 2.850% Due 04-24-25 200,000 FHLB 3.625% Due 03-19-27 Accrued Interest
99.73
249,325
98.11
245,272
0.85
4,250
24
2.48
99.85
249,625
98.66
246,645
0.85
5,000
1,903
2.31
100.00
300,000
98.10
294,288
1.02
8,550
3,729
3.15
99.79
199,580
99.78
199,564
0.69
7,250
242
3.65
998,530
5,897 991,666
0.02 3.44
22,132,116
28,864,727
100
298,035
79,143
TOTAL PORTFOLIO
323
4
5,897
Alaska Permanent Capital Management Co.
TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDS From 03-01-18 To 03-31-18
Trade Date
Settle Date
Security
Quantity
Trade Amount
PURCHASES AGENCIES 03-16-18 03-19-18 FHLB 3.625% Due 03-19-27
200,000
199,580.00 199,580.00
DEPOSITS AND EXPENSES MANAGEMENT FEES 03-31-18 03-31-18 MANAGEMENT FEES
4,072.06 4,072.06
Dividend DOMESTIC FIXED INCOME FUNDS/ETF 03-29-18 04-03-18 GOLDMAN SACHS PRIME OBLIGATIONS FUND
1,485.31
DOMESTIC LARGE CAP EQUITY FUNDS/ETF 03-16-18 04-30-18 SPDR S&P 500 ETF 03-19-18 03-23-18 FLEXSHARES QUAL DIV ETF
17,219.37 5,819.08 23,038.45
DOMESTIC MID CAP EQUITY FUNDS/ETF 03-22-18 03-28-18 ISHARES CORE S&P MIDCAP 400 ETF DOMESTIC SMALL CAP EQUITY FUNDS/ETF 03-22-18 03-28-18 ISHARES S&P SMALLCAP 600 INDEX ETF REAL ESTATE 03-26-18 03-29-18 VANGUARD REIT ETF
324
1
10,749.67
4,525.37
9,886.80 49,685.60
Alaska Permanent Capital Management Co.
TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDS From 03-01-18 To 03-31-18
Trade Date
Settle Date
Security
Quantity
Trade Amount
Interest AGENCIES 03-29-18 03-29-18 FHLMC 1.700% Due 09-29-20
2,125.00
CASH AND EQUIVALENTS 03-31-18 04-02-18 WF ADV GOVT MM FD-INSTL #1751
1,263.26
CORPORATE BONDS 03-01-18 03-01-18 ENTERPRISE PRODUCTS OPER 5.200% Due 09-01-20 03-01-18 03-01-18 GILEAD SCIENCES INC 1.950% Due 03-01-22 03-01-18 03-01-18 MCDONALDS CORP M/T/N 5.350% Due 03-01-18 03-09-18 03-09-18 WELLS FARGO & COMPANY 3.300% Due 09-09-24 03-15-18 03-15-18 AVALONBAY COMMUNITIES 2.850% Due 03-15-23 03-23-18 03-25-18 TORONTO-DOMINION BANK 2.250% Due 09-25-19
5,200.00
1,950.00 5,350.00 3,300.00
2,850.00
2,250.00
20,900.00 FNMA & FHLMC 03-15-18 03-15-18 FHLMC POOL G14203 4.000% Due 04-01-26
94.06 24,382.32
325
2
Alaska Permanent Capital Management Co.
TRANSACTION SUMMARY CITY OF KENAI PERMANENT FUNDS From 03-01-18 To 03-31-18
Trade Date
Settle Date
Security
Quantity
Trade Amount
PRINCIPAL PAYDOWNS FNMA & FHLMC 03-15-18 03-15-18 FHLMC POOL G14203 4.000% Due 04-01-26
614.16
614.16 614.16
SALES, MATURITIES, AND CALLS CORPORATE BONDS 03-01-18 03-01-18 MCDONALDS CORP M/T/N 5.350% Due 03-01-18
200,000
200,000.00
U.S. TREASURY 03-16-18 03-19-18 US TREASURY NOTES 2.250% Due 02-15-27
150,000
142,892.58 342,892.58
Sold Accrued Interest U.S. TREASURY 03-16-18 03-19-18 US TREASURY NOTES 2.250% Due 02-15-27
298.34 298.34
Withdraw CASH AND EQUIVALENTS 03-01-18 03-01-18 CASH RECEIVABLE 03-02-18 03-02-18 CASH RECEIVABLE 03-20-18 03-20-18 WF ADV GOVT MM FD-INSTL #1751
846.67 1,201.03 358.68 2,406.38 2,406.38
326
3
Alaska Permanent Capital Management Co.
REALIZED GAINS AND LOSSES CITY OF KENAI PERMANENT FUNDS From 03-01-18 Through 03-31-18
Date 03-01-18
Quantity
Security
200,000 MCDONALDS CORP M/T/N 5.350% Due 03-01-18 03-15-18 614.16 FHLMC POOL G14203 4.000% Due 04-01-26 03-16-18 150,000 US TREASURY NOTES 2.250% Due 02-15-27 TOTAL GAINS TOTAL LOSSES
Avg. Cost Basis
Proceeds
Gain Or Loss
208,698.00
200,000.00
-8,698.00
642.18
614.16
-28.02
150,363.28
142,892.58
-7,470.70
343,506.74
0.00 -16,196.72 -16,196.72
359,703.46
327
Alaska Permanent Capital Management Co.
CASH LEDGER CITY OF KENAI PERMANENT FUNDS From 03-01-18 To 03-31-18 Trade Date
Settle Date
Tran Code
Activity
CASH RECEIVABLE 03-01-18 03-01-18 03-01-18 wd
Beginning Balance Transfer to
03-02-18 03-02-18
wd
Transfer to
03-29-18 04-03-18
dp
Dividend
03-31-18 04-02-18
dp
Interest
03-31-18
Security
WF ADV GOVT MM FD-INSTL #1751 WF ADV GOVT MM FD-INSTL #1751 GOLDMAN SACHS PRIME OBLIGATIONS FUND WF ADV GOVT MM FD-INSTL #1751
Ending Balance
WF ADV GOVT MM FD-INSTL #1751 03-01-18 Beginning Balance 03-01-18 03-01-18 dp Interest 03-01-18 03-01-18
dp
Interest
03-01-18 03-01-18
dp
Interest
03-01-18 03-01-18
dp
Sale
03-01-18 03-01-18 03-02-18 03-02-18 03-09-18 03-09-18
dp dp dp
Transfer from Transfer from Interest
03-15-18 03-15-18
dp
Interest
Amount
2,047.70 -846.67 -1,201.03 1,485.31 1,263.26 2,748.57
ENTERPRISE PRODUCTS OPER 5.200% Due 09-01-20 GILEAD SCIENCES INC 1.950% Due 03-01-22 MCDONALDS CORP M/T/N 5.350% Due 03-01-18 MCDONALDS CORP M/T/N 5.350% Due 03-01-18 CASH RECEIVABLE CASH RECEIVABLE WELLS FARGO & COMPANY 3.300% Due 09-09-24 AVALONBAY COMMUNITIES 2.850% Due 03-15-23
1
897,566.93 5,200.00 1,950.00 5,350.00 200,000.00 846.67 1,201.03 3,300.00 2,850.00
328
Alaska Permanent Capital Management Co.
CASH LEDGER CITY OF KENAI PERMANENT FUNDS From 03-01-18 To 03-31-18 Trade Date
Settle Date
Tran Code
Activity
03-15-18 03-15-18
dp
Interest
03-15-18 03-15-18
dp
Paydown
03-16-18 03-19-18
wd
Purchase
03-16-18 03-19-18
dp
Sale
03-16-18 03-19-18
dp
Accrued Interest
03-19-18 03-23-18 03-20-18 03-20-18 03-22-18 03-28-18
dp wd dp
Dividend Withdrawal Dividend
03-22-18 03-28-18
dp
Dividend
03-23-18 03-25-18
dp
Interest
03-26-18 03-29-18 03-29-18 03-29-18
dp dp
Dividend Interest
03-31-18
Ending Balance
DIVIDEND ACCRUAL 03-01-18 03-16-18 04-30-18 dp 03-31-18
Beginning Balance Dividend Ending Balance
Security FHLMC POOL G14203 4.000% Due 04-01-26 FHLMC POOL G14203 4.000% Due 04-01-26 FHLB 3.625% Due 03-19-27 US TREASURY NOTES 2.250% Due 02-15-27 US TREASURY NOTES 2.250% Due 02-15-27 FLEXSHARES QUAL DIV ETF from Portfolio ISHARES CORE S&P MIDCAP 400 ETF ISHARES S&P SMALLCAP 600 INDEX ETF TORONTO-DOMINION BANK 2.250% Due 09-25-19 VANGUARD REIT ETF FHLMC 1.700% Due 09-29-20
Amount 94.06 614.16 -199,580.00 142,892.58 298.34 5,819.08 -358.68 10,749.67 4,525.37 2,250.00 9,886.80 2,125.00 1,097,581.01
SPDR S&P 500 ETF
2
0.00 17,219.37 17,219.37
329
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Jeff Tucker, Fire Chief
DATE:
May 9, 2018
SUBJECT:
May 2018 Mid-Month Report – City of Kenai Fire Department
First the first quarter of 2018 our call volume is up slightly as compared to 2017. 478 calls for service in 2018 as compared to 471 in 2017. This past month has seen the announcement of the retirement of our Fire Marshal Tommy Carver. Tommy will be retiring with over 22 years of service with the City, and his retirement party will be held on June 5th. With the retirement of our Fire Marshal, an internal posting was done to fill the position, and Firefighter Jeremy Hamilton was selected to fill the open position. Jeremy is currently shadowing Fire Marshal Carver on his shift as he prepares to transition into his new position. He also attended the Alaska Fire and Arson Investigators Conference in Anchorage in April and at the conclusion of the conference took the State Arson Investigators test. Jeremy’s first official day in his new position will be June 4th, 2018. With the promotion of Jeremy Hamilton to Fire Marshal, the department will have a vacant firefighter position. The City Manager authorized the department to hire off of our last testing list and the department. The department has offered Colin Morse a position with the department. Colin is from Kenai and will begin on May 21st, 2018. In April Firefighter Jesse Tauriainen attended the Advanced Aircraft Rescue Firefighting course at the Beacon Training Center. The department has completed its annual forestry refresher course for all of our members. The department participated in the FAA part 139 certification inspection of the airport. Chief Tucker attended the annual Congressional Fire Service Institute Symposium in Washington DC. In addition to the symposium, Chief Tucker and a delegation of other Alaska Fire Chiefs met with the Alaska Congressional delegation.
330
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Mary Jo Joiner
DATE:
May 3, 2018
SUBJECT: Library Mid-Month Report ______________________________________________________________________ April Circulation Figures Adult Fiction Adult Non-Fiction Young Adult Fiction Periodicals Juvenile Fiction Juvenile Non-Fiction Easy Fiction Easy Non-Fiction Interlibrary Loan Books – Consortium Total Print
1,256 890 210 94 399 339 1,035 166 3 233 4,625
Internet Access iPad use Video Room Booking Music DVDs Audio books Miscellaneous Computer Programs Media – Consortium Total Non-Print
931 200 0 193 23 2,139 85 143 116 3,830
Total Circulation 4/18
8,455 Downloadable Audio
556
Total Circulation 4/17
8,637 Downloadable EBooks
444
% change
-2%
237
In-House circulation
331
Page 2 of 2 Library Mid-Month Report Library Door Count…….
Not available
Income Fines
$ 666.75
Xerox
222.00
Lost/Damaged
10.00
Test Proctoring Fee
40.00
Printing Other Total income
534.50 0.00 $ 1,473.25
Library Cards Issued Homer ILL Kenai Nikiski Non-Resident Other Peninsula Soldotna Sterling Total
April 2 2 37 1 0 1 5 1 49
In April 1 volunteer worked about 17 hours. There were 14 children’s programs with 423 total in attendance, and 12 adult and family programs with 88 attendees. Two school groups toured the library with 74 children. In April we ordered 6 interlibrary loan items not available through the consortium and received 4 items, we returned 4 items and loaned 21 items to other libraries who are out of state or not in the consortium.
332
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Robert J. Frates, Parks & Recreation Director
DATE:
May 7, 2018
SUBJECT: Mid-month Report - May ______________________________________________________________________ The department has been busy with pre-season maintenance activities, including ballfields, cleaning shelters, delivering trash receptacles, sand removal, and delivering equipment to City Shop for routine servicing. Staff member Ed Brusven completed constructing frames to accept the new interpretive display signs for the Kenai River Flats Boardwalk. Signs will be installed before end of May. KCHS students completed the first bike repair station. The department had the station powder coated and staff will attach the tools this week. The plan is to introduce this as a static display during the Community Bike Safety event held May 12 at the Walmart parking lot. This event is a collaborative effort between several organizations, departments and community volunteers. The community-wide clean-up is scheduled for May 11-19. Other events/activities include the Kenai Rotary Club Soap Box Derby (May 12), Kenai Little League Opening Ceremonies (May 19), and the Annual Torch Run (May 19). The department set up a Facebook page and so many of the upcoming and future events and activities will be posted on this site. KCHS softball and baseball are in full swing and both programs have done a good job assisting with field maintenance. The new bleachers serving the adult softball field #3 have been placed. The Kenai Rotary Club is working on getting a couple plaques made to recognize them as donors. The director has been busy assembling our Temporary hires for the upcoming summer season. Additionally, Jacob Hart has been hired as a Full-time Laborer. Mr. Hart will begin his service to his community on May 14.
333
MEMORANDUM TO:
Paul Ostrander, City Manager
FROM:
David Ross, Police Chief
DATE:
5/7/2018
SUBJECT:
Police & Communications Department Activity – Month of April 2018
Police handled 730 calls for service (year to date the police call volume is up 10.5% over the same period last year and 18% over the same period in 2016). Dispatch received 259 9-1-1 calls, 193 of which came from cell phones. Officers made 43 arrests. Traffic enforcement resulted in 135 warnings, 10 citations for speeding, 2 for seatbelt violations, 3 citations for equipment violations, and 46 citations for “other.” There were 10 DUI arrests (0 felony). Officers investigated 10 motor vehicle crashes. There was one collision involving a moose, and there was 1 involving alcohol or drugs. April training included: One officer attended two days of crime scene processing training in Kenai. One officer attended three days of Drug Recognition Expert (DRE) training in Anchorage. Five officers attended a half day of wildlife hazing training in Kenai. One officer participated in the DPS academy in Sitka as a TAC officer for two weeks. One officer attended a week long boat operator course in Kenai. The KPD officer on the SERT team started a week long in-service training in Anchorage. Eight officers attended a class on strangulation investigation procedures in Kenai. An officer and a dispatcher attended AFLA/FMLA/Worker’s Comp training in Soldotna. All dispatchers attended some computer training at Kenai Peninsula College. Two dispatchers attended Navigator Emergency Medical Dispatching training in Las Vegas. Along with assisting school administrators and handling multiple calls in the Kenai schools, the School Resource Officer attended prom, participated in an intruder drill, and taught alcohol education classes at KCHS.
334
Page 2 of 2
3000 2000
2671
2417
2266
1000 0
997 Total Police Service Calls
2018(Jan 1 - Apr 30)
1090
1142
911 Calls Received
2017(Jan1 - Apr 30)
2016(Jan 1 - Apr 30)
335
MEMORANDUM TO:
Mayor Brian Gabriel and Kenai City Council
THROUGH:
Paul Ostrander, City Manager
FROM:
Kathy Romain, Senior Center Director
DATE:
May 7, 2018
SUBJECT:
April Monthly Report
April 2018 Home Meals 60+ Service Area 60+ Outside Service Area Under 60 + Service Area Under 60+ Outside Service Area Subtotals Total
NTS
Choice
Clients 43 1 1 0
Meals 789 28 9 0
45
826
Clients 9 1 4 1 15
Meals 294 28 112 27 461 1287
• During the month of April, 56 volunteers donated 782 hours of their time; 41 individuals used the Social Security Video Service; and 1,188 congregate meals were served in the dining room. The Director and the Administrative Assistant had 25 appointments for various senior related issues in the month of April. The Administrative Assistant attended the APEI Training in Soldotna on a variety of supervisory topics. • The Senior Center hosted the Area Wide Care Coordinator’s Luncheon on April 17. This group meets monthly to discuss various care topics related to Medicaid Waiver and partnerships resolving issues for our mutual clients. • The monthly No-Host Dinner was at Sunrise Inn in Cooper Landing with 12 in attendance. April 13 was Scrabble Day and at lunch, each table participated to solve a giant crossword puzzle. April 27 was National Tell-a-Story Day with various seniors sharing their stories during the noon hour. We finished out the month celebrating Hairstyle Appreciation Day with a picture quiz related to different hairstyles and their names based on popular culture in the last 100 years. • The State of Alaska/DHSS announced an increase in our Nutrition Services Incentive Program (NSIP) from .75 per meal to $1.00 per meal. This is a reimbursement given each month based on meals served under the Nutrition, Transportation and Services Grant.
336
PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: MAY 16, 2018 AMOUNT
VENDOR
DESCRIPTION
DEPT.
ACCOUNT
COOL AIR MECHANICAL
REPAIR TO LIBRARY BOILERS
BUILDINGS
REPAIRS & MAINTENANCE
8,887.60
LEGACY ELECTRIC
MAIN STREET ELECTRICALWORK
PUF
CONSTRUCTION
6,800.00
PENINSULA PUMPING
PORTA POTTIE RENTAL
RECREATION
RENTALS
3,500.00
ALASKA RESCUE
BOAT RESCUE CLASS
PUF
PROFESSIONAL SERVICES
8,700.00
FERGUSON ENTERPRSES
VACTOR RODDER HOSE
SEWER
OPERATING SUPPLIES
3,000.00
MUNICIPAL EMERGENCY SERVICES
FIRE HOSE
FIRE
SMALL TOOLS
4,596.40
BAILEY'S FURNITURE
OFFICE FURNITURE
POLICE
SMALL TOOLS
, 2,689.91
337
~ril 2018 Ne" slctter
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Kenai Historical Society P.O. Box 1348
Kenai, Alaska 99611
Board of Directors:
Officers: President- June Harris Vice President-Virginia Walters Secretary-Sbaron Fisher Treasurer-Katherine Thompson
,Joe I lnrris
Betty Idlemnn
Bill Nelson
Dave Thompson Frosty Walters
Preserving History Jackie Benson Pels, speaker for the Kenai Peninsula Historical Association conference on May 5, was born in Seward and graduated from high school in Kenai. Beginning with the memoirs of her late stepfather, Ralph Soberg, who was general foreman for construction of the Sterling Highway, she and her designer partner, David Johnson, have published more than 30 books of personal and community history, including her own Unga Island Girl: Ruth's Book; Any Tonnage, Any Ocean, a biography of Capt. Walter Jackinsky of Ninilchik; Family After All: Alaska's Jesse Lee HomeVol. II, Seward, 1925-1965; and Framed by Sea & Sky: Community Art in Seward, mural capital of Alaska. Focusing on Kenai Peninsula histories, she'll talk about the work of an editor and varying ways to tell a story, and introduce the newest memoir from Hardscratch Press, David Leuthe's The 50-Year Summer. I would like to talce this opportunity to say an advance thank you to Jackiefor h elping in the fdfort to preserve our local history. Sharon Fisher
KENAl HISTORICAL SOCIETY NEWSLETTER
INSIDE THIS ISSUE: •
PRJ'.Sl·:RVING HISTORY
• Kenni Municipal Airport by llrian Evans from Narratives 011
the Kenai-Soldotna Community ANNOUNCE.\lENIS
IF YOU llAVE NOT,
Pll~ASH
HP.NEW YOUR S10 MEMBl!.H-
SHIP TO CONTINUE RECEIV1NG THE NEWSLETTER.
WE
NEED COMMITM ENTS HWM MEMBERS TO l'RO· VIOi!. BAKED GOODS TO nm
MAY 5th EVENT- WE ARE HOSTING THE KENAI PENINSUl.A lllSTORICAL .\SSOC'I.\· TIOS Sf'J.11· .\NNUAl. :Otl\ETI NG. C.Al .l . JUS E AT 283-1q40.
Minutes of the April Meeting will be printed in the August 2018 issue of the Newsletter
•••••••••••••••
Written by Sharon Fisher I ( you would like to contribute ideas and information to the ncwiilcller, please contact me at 776-8254. I welcome and would entertain any ideas you may have for articles, and would appreciate being contacted if you see CJTOrs in the information contained in the newsletter.
338
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KENAI MUllCIPAL AIRPORT I
by Brian Evans
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The Kenai Municipal Airport 1s 60 air miles from Anchor11
age, in a central location, has an elevation of 93 feet wfth
1..1
an average temperature of 61 degrees.
It consists of one
terminal, one control tower, a 7.211 feet fn length and 150 I
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feet fn wfdth runway. and an industrial park. It has an allweat~er runway that offers flatter appl'Oathes. better flying weather, less congestion, lower atrport fees. rental
u
abflfty to. accomodate the operator than any
L
fty tp Alaska.
local taxes, more parking and development space, and a greater
Anchorage. fn : '
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ra~es.
comparab~e
fac11-
The airport f s also used as an alternate for
It lfes equf-dfstant from any_ mineral exploration
the state. Before there was an airfield, planes had to land on the
beach.
In the winter be.cause of snow and tee on the beachi
the area south of the present runway would be cleared for planes to land on skis. Sometime in 1941 an airport was constructed by the U.S. I;
Afr Force on 'ublic domain under Afr Navigation Site Withdrawal No. 156.
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The new
s.ooo
feet long runway was completed
by the Cfvf 1 Aeronautics Admfnistratfon fn 1942 •• At times someone with a vehicle had to chase moose, caribou. and bears off the runway. In the wf nter, snow on the runway was p-cked down by a huge roller. The first a1rlfnes to use the airport were Alaska Afrlfnes and Pacfffc Northern Airways, both arrfvfng fn 1946. 339
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Both airlines brought in people, supplies, and mail, wtth Pacific Northern
Air11n~s bein~
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the chief supplier.
Because of the private plane boom, the Kenai airstrip was lengthened by 1,000 feet w1th steel pierced plank landing mats, 150 feet wide, at both ends. runway was surfaced with gravel. the Air Force.
The center of the
Thfs project was funded by
The runway was then lighted with medium
intensity lights and a 24-inch duplex rotating beacon with clear and green lenses, mounted on a 51-foot tower adjacent to the then flight service station on the east side of the runway. There were three different apron areas adjacent to the runway, one of which was constructed for the Air . Force. Other F.A.A. facilities· were a low frequencies radio range (SBRA), a very hfgh frequencies omni-directional radio range (UDRTAC), a communications transmitter sfte, and a living quarters area for F.A.A. personnel which ts now owned by the City of Kenai. · The ff rst airport terminal buf ldfng was buf lt in the summer of 1952 and was located north of the spur highway near the cemetery. ou~tng
the Korean War, the Air Force based single engine
Jet fighters at the Kenaf airport.
The airport facilities
were maintained by the F.A.A. by an agreement.
This mainten-
ance agreement was cancelled by the Air Force on June 30, 1962. However, the Air Force still retained four tracts of various sizes adjacent to the airport under F.A.A. permit. In 1959 the F.A.A. was directed to transfer certain airports that were being operated as intermediate fields to the 106
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new State of Alaska. Airport.
Included in this group was the Kenai
The airport was originally built to provide a
landing field for small aircraft, such as the DC-3 and smaller. The planes were used to haul in material for the construction,
u
operation and llHlintenance of the airways communications sta-
I .
tion and nav1gat1onal aids built at Kenai as part of the Alaska
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Airways System.
Since there was no high-way, heavy equipment
and supplies were transported during the open navigation season by barge.
When the highway system between Anchorage,
Seward, and the Peninsula was completed, the Kenai airport was i
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no longer a F.A.A. requirement in operating the airways station and navigational aids. Trans1t1ona1 grant funds in the amount of $21,000.00 per year for the fiscal years of 1960 through 1962 were allocated to take care of maintenance of the airport.
Some of these
funds were used f n the Av1atton Services Buf ldf ng, which was completed fn November, 1960, becoming the largest commercial structure in Kenai at that time. In May, 1963, the Kenai City Council established the Kenai
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Airport Commission, which was formed to establish policies,
!
operations until September 1, 1965, when the Commission was
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eules and regulations for the airport.
The Airport Commission
was a vital factor in the development of the airport and its abolished.
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In 1965 an airport improvement project got under way_ with a cost of approximately $1,146,667.00. Plans were also developed
i..!
for use and leasing of land tn the small aircraft apron;
!I
Small Aircraft Apron Use Plan, and (2) Small Aircraft Apron
u
Leasing Program.
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107
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....
There were numerous improvements in 1967, such as 2,500 feet of additional runway whf ch was paved f n the sprf ng of 1968, the completion of storage parking for 80 more vehicles, an addftfonal 1,870 feet of oaved taxiways, and conversion of
..
medium intensity runway lighting to hfgh intensity. On January 26, 1967, Pacific Northern Airlines moved to the newly completed Kenai Afr Terminal. At 12:35 p.m. that day a constellation flight landed and the first passengers passed through the new facility.
In February the contractor
of the terminal, J. B. Narrack Co. 1 turned over the akeys" to the city •. On Saturday nfghtl March 11. an offtcfal open house celebration was held. Prfor to this celebration ft was believed that the passenger space was inadequate for the amount of traffic already usfng the building.
Because of this,
the front porch area was glassed fn to give more room. In June of 1967 Pacific Northern Airlines and Western Airlines negotiated a merger.
On July 1, 1967, Pacific
·Northern Airlines, known also as •Alaska Flag Line• wfth 0
Stars of Golda made way for the 0 Red, White, and Black Chfef,a
Western Airlines. Kenai owns 1,600 acres of airport lands, of which 10.2 acres was offered for rampsfde operatfons:bordertng on the main taxiway. fn
Eighteen and eight-tenths acres were available
an undeveloped state for operatton adjacent to the rampstta. In the industrial park. 6.8 acres of lots were avatlable for construction and 16.6 acres for an industrial commercial subd1v1sfon. 108
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It was safd that •the greatest thing that the ctty ever
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dfd . was . to take over the airport from the state.a* Most of the enterprises fn the fndustrf al air park were new business-
·-
es or branches of large companies.
The entire project was
I:
financed by an Economic Development Adminf stratfon matching
u
fund.
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EDA declared that the project had been one of the most
successful they had ever partfcf pated f n. Because of the building of the industrial air park, the Cfty of Kenai completed fnstallatfons of water. sewers. paved
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streets. and underground •lectrfc lfnes.
Other commercial
utf littes installed natural gas lfnes and underground tele·
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phone ltnes to the area.
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1970 Western Afrlfnes moved out of Kenaf and Wten Afr
Alaska took over. movfng out tn 1973, but Jtfll retafnfng landing rights to the present tfme. service is being operated by Alaska
Presently commercfal Aerona~ttcal
Industries
(A.A.I.) wtth dafly co11111uter service to Anchorage, Cordova.·
-.
Valdez. and Homer.
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for addtttonal safety and more equipment.
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In 1973 an F.A.A. atr traffic control tower was added The flfght ser-
vices station ts open 24 hours every day,· whf le the control tower ts used from 6:00 a.m. to 10:00 p.m. from Aprf 1 to September and fn winter months from 7:00 a.m. to 7:00 p.m. The flight services station wtth a total of 9 people working, takes offfcfal weather reports. and navfgat1ona1 aids being continually operated. When the tower 1s closed, the pilots
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*As quoted by Frank Adams of the ftrm of Adams, Corthell, Lee, and lfnce and Associates, who participated as project engineers fn the Cook Inlet Industrial Afr Park Project.
109
343
u do their own controlling of landings and take-offs. The . . control tower •. with a total of five people working. controls a five mfle radius of the airport, and the F.A.A. flight service station assists in a 400 mile radius. Other improvements in 1973 were addft1ona1 paved taxiways, loading ramp, and a paved access road to the control tower, all totaling $507.627.00.
Security regulations re-
quired a complete surrounding security fence which was completed in 1974 with a cost of $463,429.00. Plans for the airport now include studies of airport
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lands and development of a comprehensive land use plan, fnstallatfon of a radio-controlled lighting system, and an instrument landing system. In all the years the Kenai airport has been in use there have been only a total of six accidents resulting in two fatalities.
The two fatalities occurred in 1971 when two
private planes collided fn mid-air over the afrffeld, killing The intensive use of the airport in prior years by the military resulted in only two separate accidents, one a C-119 There were no
serious injuries to either crew. Use of the Kenai airport as an alternate to Anchorage International Airport has been nominal in the past, due prfmar1 ly to the extensive instrument landing system at the Anchorage field, and due also to the lack of a U.S. Customs Office and personnel at the Kenai airport. According to F.A.A. flight service station employees, once a Northwest Orfet DC-7 flight from Tokyo to Anchorage lW
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one pilot and one student pilot trainee.
Flying Boxcar and one a C-47 cargo plane.
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mide an emergency landing at Kenaf after losing power f n three of its.four engines. •
r
The passengers and the crew had to re-
main aboard the disabled craft untfl another plane, accompanied by U.S. custom officials, was brought fn from Anchorage.
The
lack of a customs office at Kenai prevented the passengers from d1sembarkfng the disabled plane. The largest plane to land at the airport was a C-141 Star11fter.
The total number of planes (landings and take-
offs) ustng the Kenaf airport fn 1974 was 48,814 wtth the number of 1975 estimated to be around 52,000, making Kenai the thfrd &qstest airport in Alaska.
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The airport is currently being operated without a fulltime a'rport manager. The current City Manager is designated as the Acting Airport Manager. was George L.
0
The ff rst airport manager
Red• Jaynes, who served from 1963 to 1969.
Gilbert StaffoPd was appointed in 1969 for a· short period. Many persons credit the late 6eorge·L. Jaynes as the driving
u
force behind many of the airport improv•ments and past operations.
Among other achievements, he is credited wfth
single-handedly digging the water well to serve the newly
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constructed airport terminal bufldfng, which was built prior to the extension of the city water lfnes that presently serve the ter11fnal building and surrounding area.
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- -···-
AIRPORT - LA YOUT - - -- - - - -·
----
Civilian olrcrolt
NOTE :
In Air For e
not p1rmltt e d • porltlno or eo.
mf • 1000' Stoo l Mot
Po rk I n o
Area
R ! V ER
Gradient·. 36 -1 8:+0.11010
1600
R1.1nwo y not morkod
1600
0
.,
-~ ·-·-
3200
..
Scal e In Feet
11 2
TAKEN Ala s ka,FR OM A'irport • Federa l Av1. at ion Agency, ion,a i 1962. Reg·Ken
346
KENAI HISTORIC SOCIETY OurOrgani1.ation T here has been a Historic Socicly since the days beforo Kcnoi bccom· ing a city. ·111c Sociely Wll8 fanned 11 few years before Statehood in 1959, and then went inactive in the early 6o's. It restarted in the latter pan of the 6o"s and has met regularly since. The Society had a museum in Fon Kenny for some )"e3l'S, and t hen continued lo meet nftcr that closcd. The non-profit Society implemented and operates the Kenai Historic Cubins Parle, open for tours in the summer months. We have office space at the Moosemcat John cabin, but are not open to the public in that building. Our member meetings are Sept., Nov., Dec., Jan., Feb., Mar., and April at the Kenai Visitor Center. For Oct. and Moy, "'C meet with the Kenai Peninwla Historiail Association. Please check the Meet· ings and Announcements SCdion on this page for date information.
MEETINGS AND ANNOUNCEMENTS Kenai Peninsula Historical Association Semi-Annual Meeting - May 5 , 2018 Open to the Public 9 :00 a .m. - Doors Open Coffee and Breakfast Treats Provided by Kenai Historical Society Members 10:00 a.m.- Business Meeting 12:00-Lunch Provided by Kenai His torical Society and KPHA Members 1:00 p.m.-Guest Speaker Jackie Benson Pcls Publishing and Editing Books of Pers onal and Community His tory
Kenai Historic Society P.O. Box 1348 Kenai, AK 99611
Ill 'ii l'I \l I !-.T\MI Ill UI
Phone: 283-1946 Phone: 776-8254
E-mail:
[email protected] www.fucebook.com/KenaiH istorical-society
347
