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02/10/2005 Work SessionASSEMBLY WORK SESSION February 10, 2004 - 7:30 p.m. Borough Conference Room AGENDA CITIZENS' COMMENTS (limited to three minutes per speaker) ITEMS FOR DISCUSSION 1. AADC 2. VFW Lodge Facility 3. Investment Policy/Facilities Fund - Mary Lou Pratt PACKET REVIEW MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS ASSEMBLYMEMBER COMMENTS ASSEMBLY CALENDAR February 2005 10- Assembly Work Session - CR City Council Regular Meeting 16- Planning and Zoning Commission Regular Meeting - AC 17- Assembly Regular Meeting - AC - (Assembly pictures at 6:45 p.m.) 21- Borough Offices Closed in Observance of Presidents' Day School Board Budget Work Session - SD /CR School Board Regular Meeting - AC 21- Fire Protection Area No.1 Board Budget Public Hearing & Regular Meeting - BFH 22- Parks and Recreation Committee Meeting - CR City Council Work Session - SD /CR 23- Monashka Bay Road Service Area Board Budget Public Hearing & Regular Meeting - BFH 24- Assembly Work Session - CR (Fee Schedule - Parks & Kee Committee) City Council Regular Meeting - AC 25- Boards and Committees Reception - KFRC 28- School Board Budget Work Session - SD /CR March 2005 3- Local Emergency Planning Committee - AC Assembly Regular Meeting - AC 7- School Board Budget Work Session - SD /CR School Board Work Session - SD /CR 8- Parks and Recreation Committee Meeting - CR City Council Work Session 9- Planning and Zoning Commission Work Session - CR 11 -15 Washington D.C. Lobby Trip 10- Assembly Work Session - CR City Council Regular Meeting 16- Planning and Zoning Commission Regular Meeting - AC 17- Assembly Regular Meeting - AC 21- School Board Budget Work Session - SD /CR 22- Parks and Recreation Committee Meeting - CR City Council Work Session - SD /CR 24- City Council Regular Meeting - AC 28- Borough Offices Closed in Obersvance of Seward's Day School Board Budget Work Session - SD /CR School Regular Meeting - AC 31- Assembly Work Session - CR (Planning and Zoning Commission) April 2005 4- 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Work Session - SD /CR 11- 5:15 pm School Board Budget Work Session - SD /CR 12- 7:00 pm Parks and Recreation Committee Meeting - CR 7:30 pm City Council Work Session - SD /CR 13- 7:30 pm Planning and Zoning Commission Work Session - CR 14- 7:30 pm Assembly Work Session - CR 7:30 pm City Council Regular Meeting - AC 18- 5:15 pm School Board Budget Work Session - SD /CR 7:00 pm School Board Regular Meeting - AC 20- 7:30 pm Planning and Zoning Commission Regular Meeting - AC 21- 7:30 pm Assembly Regular Meeting - AC 26- 7:00 pm Parks and Recreation Committee Meeting - CR 7:30 pm City Council Work Session - SD /CR 28- 7:30 pm Assembly Work Session - CR 7:30 pm City Council Regular Meeting - AC 7:30 pm CANCELED 7:30 pm 7:30 pm CLOSED 5:15 pm 7:00 pm 7:30 pm 7:00 pm 7:30 pm 7:00 pm 7:30 pm 7:30 pm 7 -9 pm 5:15 pm 1:30 pm 7:30 pm 5:15 pm 7:00 pm 7:00 pm CANCELED 7:30 pm Travel 7:30 pm CANCELED 7:30 pm 7:30 pm 5:15 pm 7:00 pm 7:30 pm 7:30 pm CLOSED 5:15 pm 7:00 pm 7:30 pm ASSEMBLY WORK SESSION February 10, 2004 - 7:30 p.m. Borough Conference Room AGENDA CITIZENS' COMMENTS (limited to three minutes per speaker) ITEMS FOR DISCUSSION 1. AADC 2. VFW Lodge Facility 3. Investment Policy/Facilities Fund - Mary Lou Pratt PACKET REVIEW MANAGER'S COMMENTS CLERK'S COMMENTS MAYOR'S COMMENTS ASSEMBLYMEMBER COMMENTS ON LEAVE Williams - February 2 -14 Wells - February 16 -21 Branson - February 20 -24; March 4 -13 Anderson - March 22 -30 *1829 2180 �QGutl �I 1a9r SAFETY NOTICE The US Coast Guard anticipates establishing 3 Safety nes near Narrow Cape and east of Sitkinak Island on February 18, 2005, between 4:00 P.M. and 11:00 P.M each day, due to operations at the Kodiak Launch Facility. The USCG Captain of the Port will terminate the safety zones once launch operations are complete. As per 33 CFR part 165, entry into or through these zones is strictly prohibited. Unauthorized entry may result in civil and /or criminal penalties, including fines of up to $32,500. Safety Zone boundaries are indicated on the charts below. Narrow w Cane 1: Defined by the points 57 °27.5' N, 152° 25.0' W; 57° 22.75' N, 152° 15.0' W; 57° 11.0' N, 152° 36.0' West; 57° 15.75' N, 152° 46.5' W Narrow 2: The area within a circle centered at 57° 26.1' North, 152° 20.49' West, with a radius of 5 Nautical Miles. Sitkin ak_land: Defined by the points 56 °40.5' N, 153° 42.5' W; 56° 34.0' N, 153 °29.5' W; °12 .5'N,154 °2.5' W; 56° 19.0' N, 154° 16.5' W EASEMENTS RS2477 (with RST #), Omnibus Roads (with FA #), other roads 'Along' navigable and anadromous waterbodies (AS 38.05.127) Prepared by: DNR Source USGS Kodiak B -1, B -2 Date: 12/2004 Kodiak Rocket Range one mile MA.KR.1001 4 4 . Meridian Township Range CRM 31 -32S 19W Spotlight: Governor and University Craft Land Bill Recreation Divisions/Offices Resource Information General Interest in the Spot Alaska Department of Natural Resources State of Alaska > Natural Resources Governor and University Craft Land Bill February 7, 2005 Natural Re sources (Fairbanks) - On Friday February 4, 2005 Governor Frank H. Murkowski announced he will introduce legislation that transfers 260,000 acres of state land to the University of Alaska system. "This land transfer will help fulfill the promise of a true land grant university. It provides a portfolio of income and educational properties to deliver to the University of Alaska both a steady and strong funding stream and the tools to expand its research capabilities," Murk( said. The legislation creates a streamlined transfer of lands that have been selected by the Univ of Alaska over the course of the last year. It would supplant Senate Bill 7, passed in 2000, which created a complicated land transfer process estimated to last ten years and cost $1. million. Governor Murkowski's proposal is expected to take three years to complete and cc less than five percent of the previous estimate. "This land transfer strengthens the University of Alaska's ability to prepare its students for jobs of the future," Murkowski said. Governor Murkowski announced the legislation during a press conference at the University Alaska Fairbanks campus. In attendance were several University Regents along with DNR Commissioner Tom Irwin, UAF Chancellor Steve Jones and University President Mark Hami "We appreciate the commitment, cooperation and support from the Governor and the Department of Natural Resources for its help in developing this proposal," Hamilton said, In conjunction with the state efforts, Sen. Lisa Murkowski introduced legislation to grant 250,000 acres of federal land to the University of Alaska with provisions to match addition acreage with the state land grant on a one -to -one ratio. Overall, these efforts will help the University achieve the goal of being one of the premier land grant universities in the natio For more information contact: Bob Loeffler (907) 269 -8600. Maps identifying the individuE parcels can be viewed, at www .dnr.state.ak.us /mlw /ualands /. Last updated on Tuesday, October 7, 2003. Site optimized for Netscape 7, IE 6 or above. Not sure who to contact? Have a question about DNR? Visit the Public Information Center. Report technical problems with this page to the Webmaster. http: / /www.dnr.state. ak.us /standard/dsp_article. cfm ?id =17& title= Governorr%20and %20Uni... 2/7/2005 Page 1 of 2 Overview of The Land List This section provides a general description of the Land List and a table containing specific information related to the parcels in the Land List. Geographic Distribution. Most of the land proposed for transfer to the University of Alaska is in the Northern and Interior area of the state. This is primarily because two large parcels — the University Research Forest and the Nenana Oil and Gas Basin are in the Interior. Both South - central and Southeast have considerably smaller amounts of state land. • Northern/Interior. Most state land on the Land List occurs in the Northern region, which comprises 202,776 acres or 78.0% of the total acreage. Most of this land is associated with oil and gas (90,000 acres) and coal (16,000 acres) resource values, or are intended for educational/research functions (87,784 acres). The oil and gas tract is situated west of Nenana and the coal tract, within an area known as `Jarvis Creek', which is situated south of Delta Junction. Tracts with an intended education function are associated either with forestry research in the proposed University Research Forest (a part of today's Tanana Valley State Forest) and the Tok Research Forests (55,835 acres) or with watershed research in the Caribou and Poker creeks watersheds north of Fairbanks (24,250 acres). There is a small amount of investment properties in the Northern region, which are primarily intended for residential, commercial, or industrial development. • Southcentral. South - central tracts total 17,110 acres (6.6% of the total) and consists of mostly of investment properties near the Willow- Houston (1,730 acres) and McCarthy (12,500 acres) areas and some educational properties (2,880 acres at the Kodiak Launch Facility). • Southeast. Southeast, with 40,114 acres or 15.4% of the total, consists largely of remote tracts and areas around communities, which have mostly settlement, general recreation, and some limited forestry values. These tracts are scattered throughout Southeast Alaska, extending from the Lynn Canal north of Juneau to Duke and Kelp Islands south of Ketchikan. Most of these tracts are situated within Prince of Wales Island or near the communities of Wrangell, Pelican, Sitka, and Tenakee Springs. Only a small amount (12 acres) of education properties occur in the Southeast (a research facility in Juneau and the Sitka Campus of the University). Parcel Description The table that follows gives a brief description of the each parcel proposed for transfer. It describes Investment and Oil and Gas tracts geographically by the three regions of Northern/Interior, South - central, and Southeast. A description of Educational Properties follow this listing. The table contains the following information: parcel number, parcel Page 1 of 4 • Southeast Alaska (40,114 acres) 40,114 acres of state land in Southeast Alaska are to be conveyed. Because the state owns only a small amount of land scattered throughout Southeast, these tracts are comparatively small in size and are distributed throughout Southeast. Most of these tracts were acquired by the state for community and recreational development and may be developed by the University for community or remote recreational settlement; examples include state land at Hollis, Ketchikan, or Edna Bay. There are also a few that have commercial potential; examples include Harris Road Junction, Ward Cove, El Capitan South, and Idaho Inlet, although most of these could also be used for residential purposes. A limited number of tracts have commercial timber potential. The latter are not considered essential to the existing DNR Southeast Alaska value -added forestry program. • Educational Properties (90,676 acres) This category includes twelve properties that are either important to current University educational or research programs or that can be developed for such programs. Their primary purpose is educational, not for revenue - generation. These state land tracts occur in the Northern Region, except for the Sitka Campus, Auke Weir tracts in Juneau, and the Kodiak Launch Facility. Two tracts constitute the bulk of the acreage in this category: the Caribou -Poker creeks watershed and the proposed University Research Forest. The former, consisting of about 24,250 acres is located north of Fairbanks and is used exclusively by the University for hydrologic research. The University Research Forest includes land currently within the Tanana Valley State forest. It is 51,820 acres and is situated southwest of Fairbanks. This acreage of this parcel constitutes the bulk of the Educational Property acreage. The University Research Forest will be retained and managed by DNR for a period of 50 years, after which it will be conveyed to the University. This will allow DNR to continue to manage the public uses such as recreation and hunting, and to continue the commercial timber harvest operation for this period of time. However, all management activities are to be consistent with the research needs for the Forest. This Forest will be one of the country's largest university- related forests and may be an important asset for University forest - related research. Public Access Public access is retained across the state land conveyed to the University. DNR has identified known access routes, including Omnibus Roads, existing state or federal rights - of -way, and RS2477 trails). These routes are depicted on the parcel maps. Public access is also been retained along coastlines, navigable rivers and lakes, routes traditionally used by the public for access, and along section -line easements. Except for section line easements, these access routes are depicted on the parcel maps Page 3 of4 0 0 N z (0 Y o a 0 4Z a 2 8_ a S 0 N v N o 0) c - C 3 O O N a�f — N v' 2 LO 0) LO 2 a a o 0 c O m a o s (2, m_ "E o °w c g a ,s 3 B a w co 0 0 X • o g fi g) m .0 T 1 m 4) • E E. y � To L [lS N C � `o £ g m .o C E d To g § LL 2 F- @ o u- ga C a a m E y F- 3 2 a 0 0 c m w z 80 u _ E E el" 83 ce ta fa $;s 2 a ( a m I 1 N LLO . co co' 0 0 a 2 M N 0 0 N co E E y � E y 0 d a s LL m o M 6 g N 0 LL Ni 0 LL N 0 U 4) c4 4 icrs pa r a 0 A 4 m L _L _L g. - 8 x 2 1 ti 4 1 x s T T T Attachment 1 .§ N b U e � Al) 0 0 0.1 T T 8 o w c c E E 00 U 2 kl - v-c_ t S - l - Roc_ Pct 11—ca) -i t_)-P Q b (), (2 y ` ALaISLCi A ‘ PLC) 1 6L., Et) iIAK ISLAND BOROUGH C'LERK'S OFFICE ropy) TO: ASSEMBIA MAYOR jZ...— MANAGEt_/ OMER Dear Mr. Ladner: 31M DEPARTMENT OF NATURAL RESOURCES OFFICE OF THE COMMISSIONER Mr. Pat Ladner, President & CEO Alaska Aerospace Development Corporation 4300 B Street, Suite 101 Anchorage, AK 99503 December 28, 2004 FRANKH. MURKOWSKI, GOVERNOR ❑ 400 WILLOUGHBY AVENUE JUNEAU, ALASKA 99801 -1796 PHONE: (907) 465 -2400 FAX: (907) 465 -3886 El 550 WEST 7 AVENUE, SUITE 1400 ANCHORAGE, ALASKA 99501 -3650 PHONE: (907) 269 -8431 FAX: (907) 269 -8918 Governor Murkowski has asked me to respond to your letter dated December 3, 2004 regarding concerns you have with the Department of Natural Resources (DNR) over the handling of your request to add additional land to your existing Interagency Land Management Assignment (ILMA) on Kodiak Island. Further you request an urgent meeting with me, the Deputy Chief of Staff Mr. Nizich, General Campbell, and yourself to discuss the process and agree upon an acceptable solution. Since your request to add additional land to your existing ILMA is still being adjudicated, I cannot comment on its merits. However, I have reviewed the process followed and assumptions made by the South Central Regional Manager and can offer the following observations. Your fundamental, point seems to be that DNR is responding to "a small clique of anti - development, anti- defense, and anti -KLC residents." While that number is described in your letter as between 20 and 30 individuals, your letter asserts that DNR responded to this "small clique" in holding the August meeting and other procedural decisions it has made along the way. Unfortunately, I do not believe this to accurately represent the situation.. We received concerns from the two local legislators, two unanimous resolutions from the Kodiak Borough assembly, a well- attended public meeting (52 people) and numerous letters. Specifically, the two local legislators asking DNR to hold a public meeting, and the Kodiak Island Borough passed two unanimous resolutions concerning your application. The Borough's first resolution called for DNR to hold the August public meeting The second resolution, passed after the meeting, requested that DNR delay any further review and consideration of Alaska Aerospace Development Corporation's (AADC's) current management authority request until a third party supplemental Environmental Impact Statement is prepared and reviewed by appropriate entities including the public. At the early August meeting out of the 52 people, only 18 spoke or provided written comments that were read into the record. Of the 18 comments, only 3 were supportive. In addition, we received a number of letters, some from the same people. "Develop, Conserve, and Enhance Natural Resources for Present and Future Alaskans." rf Y 1 NINSKN NENNSPflCE �I I OEVE U?MENJ OORPORATION Honorable Frank Murkowskt State of Alaska P, 0. Box 110001 Third Floor, State Capitol Juneau, Alaska 99811 -0001 December 3, 2004 4300 6 Street • Suite 101 • Anehonge, Alaska 99503 • (907) 561 -3333 ♦ FAX (907) 561-3339 Cornnnis^ic Office .1(:rl ii DEC 0 7 2004 Dcoatttncnt of N:tiu) jl f;c F.:nurces Dear Governor Murkowski, The following details'a needlessly drawn out permit process undertaken by ADNR on AADC's request for additional land to insure safety and security at the Kodiak Launch Complex. In January of this year AADC requested additional land be added to its existing Interagency Land Management Assignment (ILMA) to allow AADC to restrict access to certain lands surrounding the Kodiak Launch Complex for limited periods to better meet its safety and security obligations in the post 9/11 world. Access restrictions on the additional lands would be identical to those outlined in the current ILMA. Access would be restricted only during hazardous operations and during launch operations, During the last 10 years (78,482 hours) and six Iaunches, access has only`been restricted for a total of 30 hours, )importantly. over the course of the operational history of KLC nei r ADNR nor AADC has received a single complaint regarding access restrictions. Ample notice is provided to the public prior to limiting access. Because no complaints have been registered in the past, AADC antldpated the application process begun in January 2004 would be quick and without controversy. This has not proved to be the case. From the beginning, AADC's request has been opposed by a small clique of anti - development, anti- defense, and anti -KLC residents. ADNR repeatedly questioned our motivations and need for the additional land, In fact, ADNR did not issue the public notice of AADC's request until 2 June 20041 The public notice issued at that time allowed for a 30-day public comment period and it produced about 20 opposition statements; many of these inputs were from the same individuals. So, the total number of respondents was less than 20. When the 20 or fewer opponents realized that they didn't have an overwhelming number of negative written comments in opposition, they sought and received a resolution from the Kodiak Island Borough requesting a public hearing. They were also successful in getting letters from the local legislators supporting a public hearing. ADNR decided to hold ur - Uq WtU UU ;lb FIN UNK UUNfIIJti JUNKHU on board, and had $113M in revenues this year alone. There are also issues associated with the current proposed solution that requires AADC to request launch campaign- specific permit authority to close off this area each time a launch is scheduled. If this tact is adopted, it will create potential for the decision becoming a political pawn. To further compound the issue ADNR has issued an interim one time only authority to dose off the lands in question. However, the community is not aware of this interim authority. I would not be surprised to see protests when AADC moves to enforce the interim authority —thero could be sit -ins at the launch and possible law suits associated with the removal of protesters, and all because ADNR did not process AADC's application in a timely manner and did not let the community know about the interim authority for this launch, Lastly, AADC was created as a state agency by statute and charged with the responsibility to develop a spaceport in Alaska. The legislation also directs AADC to establish an adequate safety program The events of 9/11 changed the original AADC safety plan and spawned the subsequent request for additional land. The request is being made by a state organization with statute direction. This is not a request from a commercial company like Lockheed, Boeing, IBM, etc It is a request by a state agency to the state for the tools necessary to carry out the statute. The KLC Is 48 miles from the city of Kodiak, 0 the Kodiak Island Borough and 30 opponents are going to drivel the needs of the state and the decisions on state lands use, then all of the state lands on Kodiak should be given to the Kodiak Island Borough. I could see them having a major input if the KLC was located within the major population area of ICodiak or if AADC planned on dosing a golf course or blocking access to a hospital. None of this is true, A serious discussion is required regarding the best way to handle the original request for the additional property. I an not convinced that the current proposed solution provides the long -term method needed to assure that AADC can meet its customers' safety and security needs, 1 request an urgent meeting in Anchorage with the Deputy Chief of Mr, Nizich; the Commissioner of ADNR, Mr. Torn Irwin; General Campbell in his role as head of Homeland Security in the state; and me to review the entire AADC ILMA request process and agree on an acceptable solution I would like to keep this meeting at the executive level; we are well beyond the "fault stage." Since we are in an active launch campaign, I suggest that Mr. Nizch take the lead to set up this meeting. Further, I suggest the meeting be held in the AADC conference room, Attachment: 8 July 2004 ADNR letter Sincerely, Pat Ladner President Sr CEO 4300 a Shael o Suite 101 •Anehumge Mask• 99503 • (907) 361.3338 ♦ FAX (907) 56) -3339 min HU d1.11 410000 r UV uCU — LSO — u4 Ww Uy lkf HN UNK UUNNIJH JUNCHU IMO MIEN OMYM(OPMENI CORP ORATIO N Jcff Ginalias Natural Resource Manager Alaska Department of Natural Resources 550 W 7 Avenue Anchorage, AK 99504 8 July 2004 rNA NU, aU14CD0o00 r, VI Dear Jeff: Sal Cuccarese shared your last email with me where you asked if we could identify the time for the next launch so that your agency could process an interim authority to preclude public access to the lands under discussion for limited periods of time. Due to the 9/11 incident and the guidelines established by the Department of' Defense, the date of the launch is not releasable. Launch dates are contained within a launch window that may span 30 days. The launch date is provided at the last minute to allow for public notice, which is usually 48 hours prior to the launch. I asked Sal to prepare specific authorization language for the next mission as shown below: "ADNR is issuing a temporary (permit, ram expansion, etc.) to AADC to provide authority to preclude public access from (describe lands) for limited periods of time during hazardous operations associated with preparing the IFT 13C vehicle for flight and during- launch operations. Based on experience at KLC over the course of several launches, ADNR believes that the referenced lands will be off limits for approximately jive hours total during the launch Campaign. In issuing this authorization, ADNR has accepted a pledge from AADC that it will limit public inconvenience to the extent practical just as it has done over the course of the past nine years". However, as 1 read the proposed interim authorization, it dawned on me that there is no difference between the interim authorization, the current request for additional acreage and tho current ILMA— Limited authority to keep people off certain lands for very limited periods of time to assure the safety and security of all. So, I am puzzled as to why we need an interim agreement at all. 1 would guess that you probably received less than 20 Letters from the public. Said more pointedly, the hand full of comments you have received represent a miniscule portion of Kodiak's 15,000 -plus citizens. If more Kodiak residents were concerned, you can bet they would have responded. Kodiak is a proud and involved community and is not shy about making its views known. The Low number 43000 Street • Suite 101 •Mchonge,Naska 99503 • (907) 501-3238 0 FAX(907)561 -3339 uCU — U8 — U4 WED 09:2U AM VNR UUNfl15H JUNt:HU 11'1 sound annoyed, I am. AADC has made a legitimate request to ADNR to fulfill responsibilities required by the AADC Statutes, common sense, the changed world situation following 9/11, and national security obligations, So far, ADNR has exercised its responsibilities to the fullest by conducting the public process. ADNR opened a. 30- day public comment period and received a relatively small number of comments from residents, who in large measure are long -term opponents of the KLC, These same KLC opponents convinced the Kodiak Island Borough Parks and Recreation Committee to request a public hearing when it became apparent that they could not muster the support needed to stay AADC's request. J£ it can show that there are a significant number of members and participants within the Parks and Recreation Committee who could not submit a response because they could not read or write, then ADNR should hold a hearing in Kodiak. However, this is not the case. This hearing request presents nothing more than another hopeful opportunity for KLC opponents to engage In a public bashing of AADC and another opportunity to bring out their old agenda, Further, within days after ADNR published the public notice for comment in the Kodiak Daily Mirror, AADC published a full -page letter in the Mirror explaining the reasons and the rationale for this request. So, between the AADC letter and the ADNR public notice, there has been ample opportunity for the public to comprehend the nature of our request and to provide responses to ADNR. The bottom line is that the overwhelming majority of the Kodiak residents don't have a problem with the AADC request. AADC takes its safety and national security responsibilities very seriously. The Defense Department, who is charged with the protection of our country, is the current long term KLC customer. There are foreign agents and some US citizens who want to impede and inhibit the Defense Department's work. AADC's customer has many launches scheduled at the KLC. AADC is obliged to provide the customer and the community with the confidence that safety and security concerns at the KLC for customer personnel, as well as the public, have been mitigated. The public process was initiated, adequate time was allowed for comments and the comment period has ended 'with very few responses. There is no legitimate reason to continue the public process, Jeff, I think that you have done a great job in conducting a fair and open public process. However, as I have stated above, it is time to move on to the next step in the process. Please take the necessary action to revise the current ILMA with the inclusion of the additional acreage requested by AADC. Cc: Commissioner Tom Irwin Deputy Commissioner Dick Lefebvre Deputy Chief of Staff Mike Nizich Sincerely, Pat Ladner President & CEO 4300 a Street le State 101 • Anchomgc, Alaska 99503 • (907) 561.3338 • FAX (907) 5613339 rem NV, au 1400Joov 1r vo Attachment 3 Alaska Aerospace Development Corporation FY06 Proposed Capital Budget The Kodiak Launch Complex requires expansion and modification to continue to adequately support its anchor tenant, the U.S. Department of Defense, Missile Defense Agency testing program. Funding will be provided by the U.S. Department of Defense. State match is not required. Specific components include: Infrastructure: $17,000,000 Range Safety and Telemetry: $12,000,000 Logistics and Transportation Support: $ 7,000,000 Total $36,000,000 AADC Board of Directors' Meeting September 17, 2004 Revenues Corporate Receipts MDA 0 Interest Earnings/Misc. Launch 1 Launch 2 Narrow Cape Lodge CIP Receipts Total Revenws Expenditures : ....... ......................... .:: AADC Personal Services Travel Contract Supplies Equipment AADC Depredation on MDA Contract Accrued Vacation AADC Subtotal NLC Facility Maintenance 71000 Personal Services 72000 Travel 73000 Contractual Sere, 73100 Professional Serv. Engineering Support Managers Other Site Labor Support Security Services 73300 Communications 73400 Transportation 73500 Adv/PdnUBinding 73800 Public Utilities 73700 Minor Maintenance 73800 Rentals,Leases 73900 Other Exp/Sves. 74000 Supplies 75000 Equipment KLC Depredation on MDA Contract is Accrued Vacation Facility Ops subtotal ... Launch Operations 71000 Personal Services 72000 Travel 73000 Contractual Serv. 73100 Professional Serv. Engineering Secretarial Support t`! Support Managers f; Other Site Labor Support : b Security Services Narrow Cape Lodge 73300 Communications 73400 Transportation 73500 My/Print/Binding 73600 Public Utilities 73700 Minor Maintenance 73800 Rentals/Leases • 73900 Other Exp/Svcs. 74000 Supples 75000 Equipment • • . • . • • • • .. • • Launch,Operetiona Subtota T otal Expansas : ............ t Income bero n a Deprecl8on •:.::� :::::::: 5•::.:.. :.:. :.........:. Estimated Deprecladon i i • '" " " "" Alaska Aerospace Development Corporation Proposed FY 06 Budget Attachment 2 (Unaudited) Nst In September 17 2004 Board Meeting 7,402,300 250,000 7,800,000 7,800,000 975,000 300 000 24 527,300 FY 2008 Budost 1,450,700 188,000 543,000 11,000 82,000 28,095 107.300 408 ,095 1,287,600 185,000 2,217,000 785,000 288,000 389,000 30,000 43,000 17,000 58,000 81,000 5,000 288,000 943,000 18,000 81,000 98,000 174,000 439,874 71 4452974 1,039,200 1,595,000 11,042,000 8,509,000 2,754,000 1,810,200 388,000 119.000 540,000 919,800 1,938,000 1,948,000 253,000 77,000 319,000 2,843,000 229.000 00 • . 1,120,03 1784703 1 !i •• -8113,999 `'`iij Alaska Aerospace Development Corp. PROPRIETARY Official Minutes Board of Directors' Meeting September 17, 2004 LADNER reported on the status of the land management request. LADNER said staff discussed with DNR (Department of Natural Resources) the requirement needs of AADC and DNR suggested an ILMA be issued. The opponents along with the borough of Kodiak and a few more individuals were involved in the public hearing and unfortunately they did not want to listen to the real story. LADNER explained the issue would be resolved in a manner that is acceptable to almost everybody. OGG asked for a date when DNR would have a decision. LADNER said DNR does not have a date at this time, but it should be soon. LADNER said the governor signed HB 494, which exempts AADC from the Financial Management Act. LADNER will make arrangements to have an individual come into the Anchorage office and develop written internal working procedures. OMB decided LB &A should insure AADC has the proper controls, etc. Staff will work with these individuals and make it happen. LADNER received inputs from four different banking institutions. UBS (Paine Webber) was rated and selected as AADC's depository bank after an evaluation was completed. LADNER informed the Board that AADC is in the yearly audit closed -out and explained that every time AADC has a time extension on the launch, as well as the proposal for the next year's contract, it requires a DCAA audit. Jodie Andres, with local DCAA is in AADC's Anchorage office regularly. AADC had to negotiate the AADC O &M contract with MDA; who pays the operation and maintenance of AADC. Therefore, everybody appreciates that the key to any contract today with the government is the "Finances." How does the company track, administer, keep count of the finances, the hours, the ODCs (other direct costs), etc? LADNER said AADC should have 30% more finance people working for the company. Monica JAMES and the three employees, which work for her ... work a full 8 -hours and a lot of overtime. They have to take care of the contract and the money. LADNER and SCHOENTHAL monitor and oversee the work. When AADC has an audit, the accounting department's comp time increases. AADC's accounting people are doing a great job LADNER said. LESTENKOF asked if AADC is going to be a stand -alone financial management of the company in the new legislation, not completely removed from the state, but separate from the state. LADNER said AADC would have its own checkbook and its own accounting system. However, AADC will be required to submit a budget to the state. The money will go in and out of the state's bank account and then will be deposited into AADC's bank account. LESTENKOF asked if the legislation formalizes the process. LADNER said there have been some roadblocks. AADC is working with administration. LADNER notified the Board that AADC does not have the manpower to maintain two accounting systems any longer. LADNER said 13 years ago administrative services DCED would ask for $5,000 to $6,000 every year to help. The annual event went from asking to a demand and last year they simply took the money! LADNER said that was not right. If you are under the Executive 8 Kodiak Island Borough Community Development Department 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9363 Fax (907) 486 -9396 www.kib.co.kodiak.ak.us l ECEIVE FEB 2 2005 KIB MANAGER Memorandum Date: February 2 2005. To: Kodiak Island Borough Assembly Thru: Nancy E. Galstad, Interim Borough Manager From: Community Development Department RE: Application for Zoning Compliance related to a request to expand the Veterans of Foreign Wars Building located at 8625 Monashka Bay Rd., Tract A of BLM Tract D (ADL 36049). The applicant, VFW Post 7056, proposes to enlarge the existing facility with a two - storey addition totaling one thousand fifty six (1,056) square feet. The addition will provide additional meeting floor -area, a mechanical room & restroom, and elevator shaft on the ground floor. The addition will provide handicap access (via elevator), new handicap accessible bathrooms, and a new kitchen facility on the top floor. The second floor addition will result in increased occupancy of the second floor by allowing the relocation of existing bathroom and kitchen facilities to the addition. The principal use of the building is for lounge and restaurant purposes. The current use, however, is not a Permitted or Conditional use within the C — Conservation Zoning District. The current use is by definition a non - conforming use, regulated under KIBC 1 7.36. Kodiak Island Borough Code 17.36.050 (D) provides that "Structures containing non- conforming non - residential uses may not be expanded." The proposed addition is clearly an expansion of a non - conforming use. A conforming alternative is available to the lessee in the form of remodeling the existing building, i.e., retrofitting the elevator assembly and providing for the expanded areas within the existing footprint of the building. In addition, the applicant could potentially request a rezone to a zoning district that might allow the easting /drinking establishment use; however, this would require the owner of record (Kodiak Island Borough) to sign an application request. \ \dove\ Departments\ CD\ ENF \Miscellaneous■2005 \VFW_Assembly Memo.doc Page 1 of 2 Two issues have been identified as requiring the attention of the assembly. [1] As a matter of zoning the Lessor, i.e., Borough's, signature is required on the application for zoning compliance approving the addition; in which case a rezone of the property would be required for the proposal to move forward. [2] As a matter of land management the property owner, i.e., Borough, should consider the .public policy implications of allowing the expansion of use on property occupied by terms of a lease due to expire in 2027. Because the Kodiak Island Borough inherited this agreement from the State of Alaska, it may be necessary to review the document to determine whether the agreement provides the Lessee with the legal right to expand the facility without express Lessor approval. Attachments: Lease No. K332_Kodiak Island Borough / VFW Addendum: The applicant has requested that email correspondence (dated 2/01/05) to this department providing background for their request, supplemented by letter from former Kodiak Island Borough Manager Mr. Dave Jensen (dated 1/05/00) be forwarded with this memo. In turn, we have provided a copy of the decision rendered by the Planning and Zoning Commission in Land Disposal Case No. 94 -024 for the purpose of placing in context the Jensen letter. Ps attachments: Email, K. Smith to Duane Dvorak, 2/01/05 Letter, D. Jensen to K. Smith, 1/05/00 Letter, R. Scholze to K. Smith, 12/17/99 \\ dove\ Departments \CD \ENF\MIscellaneous \2005 \VFW_Assembly Memo.doc Page 2 of 2 STATE OF ALASKA DEPARTMENT OF NATURAL RESOUR DIVISION OF I -ANDS 323 East Fourth Avenue Anchorage, Alaska 99501 LEASE AGREEMENT ADL No. 36049 THIS INDENTURE made and entered into this 21st day of April , 19 1 by and between the STATE OF ALASKA, through the Director of the Division of Lands, with the consent and approval of the Commissioner of the Department of Natural Resources, acting for and on its behalf under and pursuant to AS 38.05, as amended, and the regulations promulgated thereunder, as amended or hereafter amended, hereinafter referred to as the LESSOR: and VETERANS OF FOREIGN WARS, KATMAI POST* of P. 0. Box 404, Kodiak, Alaska 99615 hereinafter referred to as the LESSEE: *No. 7056 WITNESSETH, that whereas the Lessor has classified the lands herein demised as: Private Recreation .lands on March 11 19 70 pursuant to AS 38.05, as amended; and WHEREAS, the Lessor has caused the lands herein demised to be appraised and such appraisal was made and approved on or after April 17, , 19 72 ; and WHEREAS, the Lessor has caused a notice of intent to lease the lands herein demised to be published as required by law or caused notices of intent to lease to be posted as re- , nuired by law; and WHEREAS, an auction of the herein demised property was held at the time and place :signated by notice and said sale was approved by the Director of the Division of Lands, Department of Natural Resources, State of Alaska: NOW THEREFOR, the Lessor has agreed to let and does hereby let and demise to the Lessee, and the Lessee has agreed to take and does hereby take from the Lessor all that lot, piece, or parcel of land more particularly bounded and described, as follows: Survey of State Land Creating Tract "A ", Located in sections 19 & 30, Township 27 South, Range 19 West, Seward Meridian, Containing 110.78 acres according to plat filed in the Kodiak Recording District on January 29, 1970. Subject to the Special Stipulation that the Director may terminate all or part of the subject lease if the land has not been used by the Lessee for the purpose specified in the lease for a period of two (2) years. TO HAVE AND TO HOLD the said demised premises for a term of Fifty -five (55) years commencing on the 21st day of April , 19 72 and ending at 12 o'clock midnight on the 20th day of April , 342027 unless sooner terminated as hereinafter provided. The Lessee shall pay to the Lessor rental as follows: Equal annual payments, in advance, on or before the 21st day of April of every year during said term at the rate of Four hundred and No /100 Dollars ($ 400.00 ) per year ; such payments to be subject to adjustment at each five - year interval from the effective date hereof, if the lease term hereof exceeds five years, such adjustment to be based primarily upon a reappraised annual rental value of . land in a -ate of improvement similar to that of the land described herein at the time this lease entered into. It is agreed that the covenants, terms and agreements herein contained shall be ' binding upon the successors and assigns of the respective parties hereto. -t. 7-c ‘Cd 4 ;nto, has caused these e" -sents to be executed at Anchoi re, Alaska, in duplicate,_and the said Lessee has hereunto set his hand, agreeing to keep, observe and perform the rules and regulations promulgated under AS 38.05, as amended, the terms, conditions and provision - herein contained, on the Lessee's part to be kept, observed and performed. APPROVED: COMMISSIONER, DEPARTMENT OF NATURAL STATE OF ALASKA UNITED STATES OF AMERICA ) State of Alaska ) ss. THIS IS TO CERTIFY that on the /1 day of Wi t , 19 2 , before me, the undersigned Notary Public, personally appeare• KENNETH H. HALLBACK known to me and known by me to be the CHIEF, LANDB .SECTIO . of the Division of Lands of the Department of Natural Resources, and acknowledged to me that he executed the foregoing lease for and on behalf of said State, freely and voluntarily and for the use and purposes therein set forth. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. UNITED STATES OF AMERICA State of Alaska ) ss. • THIS IS TO CERTIFY that on this 614 day of he 17 , 19 7- , before me, the undersi ed, a Notary Public in and for Alaska duly commissioned and sworn, personally appeared /1, 0 /1 c ,vC- V to me personally known to be one ofithe persons described in and,who executed the within instrument and the said C acknowledged to me that he signed and executed the same freely and voluntarily for the uses and purposes therein mentioned. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal, the day and year in this certificate first above written. 4.0 .%9 4 ()iiK t,1 i- Lli�v APPROVED AS TO FORM: Ut REN C. COLVER ATTORNEY GEWERAL B 74 Deputy Attorney General Chief, Lands Section Aiige'dt'o& Division of Lands . !' v aC. . , 12' s r ' 6 7f "3-4 6 ; A, k„," RESOURCES �� il• f7 LESSEE (sf Notary My co s is in and for the State of Alaska fission expires 9/, /7 V Notary Public in and for the State of Alaska My commission expires« ..r,.r.."D at It is hereby 1A,-1111y covenanted and agreed that , .`ha ilia . a indenture is made upon Loregoing, and upon the f..iowing agreements, conditions, C 'enants, and terms, VIZ: 1. The word "'sctr" es and wherever used in the lease, shell be construed to include, and shall ircluda, bind and inure to the benefit of the State of Altaic., its successors and assigns, at any time during the term of this lease or any renewal thereof; and the word "Lessee" as and wherever used in this lease shall be construed to include and shall include and bind and inure to the benefit of the Lessee, his successors and assigns. 2. It shall be the responsibility of the Lessee to properly locate himself and his improvements within the confines of the property leased herein. 3. The Lessor, hereby expressly saves, excepts and reserves out of the grant hereby made,unto itself, its 1 , successors, and assigns forever, all oils, gases, coal, ores, minerals, fissionable materials, and fossils of every name, kind or descrip- tion, and which may be in or upon said lands above - described, or any part thereof, and the right to explore the same for such oils, gases, coal, ores, minerals, fissionable materials, and fossils, and it also hereby expressly saves and reserves out of the grant hereby made, unto itself, its lessees, successors, and assigns forever, the right to enter by itself, its or their agents, attorneys, and servants upon said lands, or any part or parts thereof, at any and all times, for the purpose of opening, developing, drilling,and working mines or yells on these or other lands and taking out and removing therefrom all such oils, gases, coal, ores, minerals, fissionable materials and fossils, and to that end it further expressly reserves out of the grant hereby made, unto Itself, its lessees, successors, and assigns forever, the right by its or their agents, servants and attorneys at any and all times to erect, construct, maintain, and use all such buildings, machinery, roads, pipe- lines, powerlines, and railroads, sink such shafts, drill such wells, remove such soil, and to remain on said lands or any part thereof for the foregoing purposes and to occupy as such of said lands as may be necessary or convenient for such purposes hereby expressly - •eserving to itself, its 1 , successors, and assigns, as aforesaid, generally all .ghts and power in, to,and over said land, whether herein expressed or not, reasonably ..ecessary or convenient to render beneficial and efficient the complete enjoyment of the property and rights hereby expressly reserved. Provided, however, no rights shall be exercised by the Lessor or its Lessees, until provision has been made by the Lessor or its Lessees, to pay to the Lessee of the land, upon which the rights herein reserved to the Lessor or its Lessees, are sought to be exercised, full payment for all damages sustained - by said Lessee, by reason of entering upon said land; provided, that if said Lessee for any cause whatever refuses or neglects to settle said damages, the Lessor or its Lessees, or any applicant for a lease or contract from the Lessor or its Lessees for the purpose of prospecting for valuable minerals, or option contract or lease for mining coal or lease for extracting petroleum or natural gas, shall have the right, after posting a surety bond with the Director issued by a corporation qualified to do business in Alaska and licensed to sell insurance in Alaska or a bond exe- cuted by one or more individual sureties approved by the Director, after due notice and opportunity to be heard, to be sufficient in amount and security to secure the said Lessee full payment for all such damages, to enter upon the land in the exercise of said reserved rights, and shall have the rignt to institute such legal proceedings in a court of competent jurisdiction wherein the land is situated, as may be necessary to determine the damages which the surface lessee of such lands may suffer. 4. The lands leased herein have been classified as shown on Page 1 of this agreement and in accordance with the Classification Regulations, Title 11, Division 1, Chapter 1, Subchapter 1, Alaska Administrative Code and any use thereof which shall be in material conflict with said classification shall, if not remedied after due notice there - has been served on the Lessee, constitute a breach of this lease and the Lessor may :reupon terminate same in accordance with provisions herein contained. The Lessor does not warrant that by such classification the land is ideally suited for the use authorized thereunder and the Lessor gives no guaranty, actual or implied, that the utilization under said classification will be profitable. 5. Under this lease the Lessee acquires no interest whatsoever in any coal, oil, gas and other minerals or any deposits of stone or gravel valuable for extraction or utili- zation or any materials subject to Title 11, Division 1, Chapters Four (4), Five (5) and Six (6), Alaska Administrative Code, as amended or as shall hereafter be amended. The Lessee shall nor sell or remove or attempt to sell or remove any timber, stone, gravel, peatmoss, or any other naterial valuable for building or commercial purposes; provided, however, that material required in the enjoyment of this lease may be used after a written permit therefor has been obtained from the Lessor. E. The Lessor expressly reserves the right to grant easements or rights-of -way across the land herein leased if it is determined by the Director to be in the best interests of the State to do so; provided, however, that the Lessee shall be entitled to compensation for all improvements or crops which are damaged or destroyed as a direct result of the utilization of such easement or right -of -way. 7. The Lessee shall not commit waste or injury upon the property leased herein. 8. If the lands leased herein are classified and leased as grazing or agri- cultural lands the Lessee shall not prevent or deny the lawful pursuit or the hunting of game or the taking of fish; provided. however, the Director, upon request in writing, may allow the lands leased herein, or portions thereof, to he posted to prohibit hunting and fishing when it appears necessary in order to properly protect the Lessee and his property. 9. Should the lands herein leased lie within the jurisdiction of any authorized building or zoning authority they shall be utilized in accordance with the rules and regu- tlons promulgated by said authority. 10. The Lessee shall take all reasonable precaution to prevent, and take all reasonable action to suppress grass, brush and forest fires on the land herein leased. 11. The Lessee shall allow the Lessor, through its duly authorized representa- tive, to enter upon the leased premises, at any reasonable time, for the purpose of an inspection thereof. 12. ,:hen the Lessee shall use the lands leased herein to construct any form of hydraulic project or employ any equipment or engage in any activity which will use, divert, obstruct, pollute or change the natural flaw or bed of any river. lake or stream or that will utilize any of the waters of the .itate or materials from any river, lake or stream beds, the Lessee shall, prior to the commencement of any such operations, procure the approval of the Commissioner of the Department of Fish and Came and the original or an image cony thereof shall be filed with the Lessor prior to the commencement of such activity. 13. The Lessee may assign the lands, or portion :hereof, herein demised, pro- vided, he first makes application to the Lessor for a permit. The Director, in his discretion, may Issue such nernit if he tinds it to be to :`.e best interest of Alaska. No assignment shall be pernittdd until the assignee thereunuer agrees to become subject to and be governed by the provisions of this lease in the same manner as though he were the origi- nal Lessee. No such assignment will be effective until t ^.e Director signs and issues a written permit therefor. 1 • 1"" 24 cr 14. This lease may not be modified orally or to any manner other than by an , ment in writing signed by all parties hereto or their respective successors in interest. 15. The Lessee's rights under this lease may be terminated by the Director, in whole or in part, if the leased premises are being used for an unlawful puipose. 16. If the Lessee should default in the performance of any of the terms, cove- nants or stipulations herein contained or of the regulations promulgated pursuant to AS 38.05, as amended, and said default shall not be remedied within 30 days after written notice of such default has been served upon the Lessee by the Lessor, the Lessee shall be subjected to such legal action as the Lessor shall deem appropriate including but not limited to, the forfeiture of this lease. No improvements may be removed by the Lessee during any period in which this lease is in default. In the event that this lease shall be terminated because of a breach of any of the terms, covenants, or stipulations contained herein the annual rental payment last made by the Lessee shall be retained by the Lessor as liquidated damages. 17. Any notice or demand which must be given or made by the parties hereto shall be in writing, and shall be complete by sending such notice or demand by United States registered or certified mail to the address shown on the lease or to such other address as the parties shall designate in writing from time to time. A copy of any such notice shall be forwarded by the Lessor to any lienholder who has properly recorded his interest in the lease with the Lessor. 18. In the event that this lease is terminated as herein provided, by summary proceedings or otherwise, or in the event that .the demised lands, or any part thereof, ;;,,_ 'uld be abandoned by the Lessee during the term of this lease, the Lessor may .immedi- iy, or at any time thereafter, enter or re -enter and take possession of said lands, or _,.y part thereof, and without liability for any damage therefor, remove all persons and property therefrom either by summary proceedings or by a suitable action or proceeding at law; provided, however, that the words "entry" and "re- entry" as used herein, are not restricted to their technical legal meaning. Any entry or re- entry, possession, repossession, dispossess, and /or dispossession by the Lessor, whether had or taken by summary proceedings, or otherwise, shall not be deemed to absolve, relieve, release or discharge the Lessee, either in whole or in part,_from any liability hereunder. 19. Upon the expiration, termination or cancellation of this lease, unless the same has been renewed, the Lessee shall quietly and peaceably leave, surrender and yield up unto the Lessor all of the leased land on the last day of the term of the lease. 20. The receipt of rent by the Lessor, with or without knowledge of any breach of the lease by the Lessee or of any default on the part of the Lessee in observance or performance of any of the conditions or covenants of this lease, shall not be deemed to be a waiver of any provision of this lease. No failure on the part of the Lessor to en- force any covenant or provision herein contained,nor any waiver of any right hereunder by the Lessor, unless in writing, shall discharge or invalidate such terms or covenants or affect the right of the Lessor to enforce the same in the event of any subsequent breach or default. The receipt by the Lessor of rent or any other sum of money or the termination, in any manner, of the term therein demised, or after giving by the Lessor of any notice hereunder to affect such termination, shall not reinstate. continue, or extend the resultant term herein demised, or destroy, or in any manner impair the efficacy of any such notice of termination as may have been given hereunder by the Lessor to the Lessee pr to the receipt of any such sum of money or other consideration, unless expressed in -tang and signed by the Lessor. r '' 21. The Lessee''vfter written request therefor ..s been filed with the Lessor and prior to the comment. went of such work, may receive credit toward current or future rentals, provided the contemplated work, to be accomplished on or off the area leased herein, in the discretion of the Lessor, shall result in increased valuation to other state -owned lands. The Lessor's authorization to proceed with the work for rental credit, if granted, shall stipulate the type and extent of improvements, standards of construction to be followed and the maximum allowable rental credit therefor; provided further that no rental credit shall inure to the Lessee until the work has been completed and the Lessor. has inspected same to determine compliance with the provisions of said authorization. 22. If, upon the expiration of this lease, the Lessee desires a renewal lease on the lands, properties or interests covered herein, he shall within 30 days before the expiration of this lease, make application to the Lessor on Form DL -74 entitled "Application for Renewal of Lease ", in which he must certify under oath as to the character and value of all the improvements existing upon the land, the purpose for which he desires a renewal and such other information as the Director of the Division of Lands may require. Along with the application the applicant shall deposit a sum equal to 507, of the current annual rental, as provided herein, but in no event to exceed the sum of $50.00. The Lessor may thereupon lease said lands in compliance with the provisions herein enumerated, AS 38.05, as amended, and the rules and regulations promulgated thereunder, allowing a preference right to the Lessee herein. 23. The Lessee hereunder shall, upon the expiration of this lease or the prior termination thereof by mutual agreement, be allowed a preference right to re -lease the lands leased herein if all other pertinent factors are substantially equivalent. If the renewal lease does not require public auction, the preference right holder shall exercise his right within 30 days before the expiration of this lease by written notice directed to the Lessor and failure to do so shall result in forfeiture and termination of such prefer- ence right. In the event that the lease is subject to and is offered at public auction the preference right holder, shall, at the close of bidding, indicate his desire to :xerctse his preference right and meet the highest hid. In the event. the preference right holder does not elect to exercise his right and fails to do so at this time his preference right shall be forfeited and forever lost. 24. Improvements owned by a Lessee on Alaska lands shall within 60 days after termination of the lease be removed by him; provided, such removal will not cause injury or damage to the lands; and further provided, that the Lessor may extend the time for removing such improvements in cases where hardship is proven. The retiring Lessee or permittee may, with the consent of the Lessor, sell his improvements to the succeeding lessee or permitter. If any improvements and /or chattels having an appraised value in excess of $10,000.00 as determined by the Lessor are not removed within the time allowed, such improvements and /or chattels shall upon due notice to the Lessee, be sold at public sale under the direction of the Lessor. The proceeds of sale shall inure to the Lessee who placed such improvements and /or chattels on the lands after paying to the Lessor all rents due and owing and expenses incurred in making such sale. In case there are no other bidders at any such sales, the Lessor is authorized to bid on such improvements and /or chattels. The Lessor shall acquire all the rights, both legal and equitable, that any other purchaser could acquire by reason of said purchase. If any improvements and /or chattels having an appraised value of $L0,0U0.00 or less, as determined by the Lessor, are not removed within the time allowed, such improve- ments and /or chattels shall revert to and absolute title shall vest in the Lessor. 25. If any clause, or provision, herein contained, shall be adjudged to be _nvalid, it shall not affect the validity of any ocher clause or provision of this lease or constitcte any cause of action in tavor of either party as against the other. 26. The Lessee agrees to pay all taxes that may be levied against the prem- ises during the term of this Lease. ■ .......;: -tea f Rac Kodiak m'dlai DJb� KOOIAK ISLAND BOROUGH AMENDMENT TO LEASE WITH VETERANS OF FOREIGN WARS, KATMAI POST NO. 7056 WHEREAS, by agreement dated April 21, 1972, numbered K322 (ADL 36049), hereinafter referred to as the lease, Veterans of Foreign Wars, Katmai Post No. 7056, leased from the State of Alaska, as agent for the Kodiak Island Borough unaer a. _ .. management agreement dated June 17, 1965, certain real property described in the lease; WHEREAS, the Kodiak Island Borough has assumed the management of the land described in the lease by terminating the management agreement with the State of Alaska effective November 1, 1978; and WHEREAS, Kodiak Island Borough Ordinance No. 79 -19 -0 provides that the Borough may negotiate leases to non - profit organizations on terms approved by the Borough Assembly; ano WHEREAS, Veterans-of Foreign Wars, Katmai' Post No. 7056 qualifies for a negotiated lease under Ordinance No. 79 -19 -0. and the terms of this lease amendment were approved by the Kodiak Island Borough Assembly on February 2, 1980; NOW, therefore, the Kodiak Island Borough, and Veterans of Foreign__Wars, Katma Post No. 7056 enter into the following agreement this day of 1980. In consideration of the mutual covenants herein the parties agree as follows: 1. The lease is amended by deleting the eighth paragraph, pertaining to rent, on the first page, and replacing it with the following: The lessee shall pay the lessor an annual rental fee ' of $1.00 on or before the 21st day of April of every year during term. 2. This agreement does not change any or condition of the lease not specifically amended herein. IN WITNESS WHEREOF THE PARTIES HAVE EXECUTED THIS. AGREEMENT. VETERANS OF FOREIGN WARS KATMAI POST NO. 7056 By Tit �Qar i,LCee STATE OF ALASKA )ss. • THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that this /, day of LydNK 1980, before me appeared eyi Ti i / r T to me known, and acknowledged that he was he Qiwud/iIGi/ of Veterans of Foreign Wars, Katmai Post No. 7056 ano t he voluntarily signed and sealed the foregoing instrument on behalf of said organization and was authorized so`2o i po: "• " ��:,;,, "�•' WITNESS my hand and official seal the day and `- hereinabove written. s • a- • ....It.' d � tary in and tor A;a6Ya � , ; ' My Commission Expiri #1.4,• g �) j ow 9 ) �- y-.inw+.... C i 'G i� ! i r,.l' F C4 STATE OF ALASKA ) )as. THIRD JUDICIAL DISTRICT ) SOUK 4 7 7 PAC' Q Q'f?f Kodiak Recordist Dbtriat . . KODIAK ISLAND BOROUGH THIS IS TO CERTIFY THAT ON THIS 7� day of 1980, before the undersigned, a NOTARY P BLIC i�n� do for the State of Alaska, personally appeared fA5, D r.., known to me to be the �fj>'A A-,e o� a t� YAK ISLAND BOROUGH, and acknoG(,11edged that he executed said instrument on behalf of said BOROUGH by authority of its! ordinances, as its free and voluntary act and deed for the uses and purposes therein mentioned. WITNESS my hand and official seal on the day and year in r;T ;; f ..,;..,this certificate first above written. BLt. NOTARY PU: IC IN AND FO O R L IRS A C My coamission expires: 80000 X t 17'AOY W I1.00 RECOR_En_:""' KCOI A!( RECORDING; DISTRICT MRr 21 4 Da P REQUESTED ?T C ADDRESS�IO Kof tAt Amu uuuW ttATE Duane Dvorak From: K. Smith [ksmith @ak.net] Sent: Tuesday, February 01, 2005 1:17 PM To: Duane Dvorak Cc: 'Ron Eller'; Tom Saunders; Rick Baker Subject: VFW Permit Application Duane, ragc1U11 Please find the attached.letter from previous KIB Manager Dave Jensen dated 1/5/2000 encouraging us to pursue our goal of expanding the VFW. We have continued our fund raising efforts over the years in pursuit of the elevator project. We did not anticipate that the KIB would delay our progress over the zoning issue. The VFW has been existence at its present location dating back to the original lease with the State of Alaska dated 4/21/1972 and the amended lease agreement with the KIB dated 2/2/1980. The use of the property and facility has not changed. The goal of this project is to provide handicap access to our disabled veterans and guests. This addition of the elevator and new handicapped accessible restrooms occupies 350 of the 528 sq ft on the second floor. The remaining 178 sq ft is utilized in the remodel of the kitchen. The elevator, mechanical room, and restroom occupy 230 sq ft of the 528 sq ft on the lower floor. The remaining 298 sq ft is available for use as a secondary meeting room for the Ladies Auxiliary so that they can hold their meeting at the same time and location as the VFW. This is not a major expansion or a change in use of the facility As I stated in our conversation earlier, we have footings poured, framing materials are purchased and on site. The elevator has been purchased and is ready to be delivered. The contractor is standing by to perform the construction. His services are in jeopardy if we can not come to an early resolution. We are at a standstill and can proceed no further until this matter is resolved. I understand that it is to come before the Assembly at their 2/17/05 meeting as it was too late to be included on the agenda for the 2/3/05 Assembly meeting. The VFW would appreciate your help in getting a timely resolution so that we may proceed. Thanks, Ken 2/1/2005 Ken Smith, Post Commander Veterans of Foreign Wars Robert Lee Spencer Memorial Post No. 7056 PO Box 404 Kodiak, AK 99615 Dear Mr. Smith: Kodiak Island Borough 710 MILL BAY ROAD KODIAK, ALASKA 99615-6398 DEC 1 7 199• December 17, 1999 RE: Case 94 -024. Planning and Zoning Commission review of a disposal, in accordance with Section 18.20.030.A and 18.20.100.B of the Borough Code, for less than fair market value, of the south (front) portion of ADL 36049 (Tract A of BLM Tract D), comprising approximately fifty (50) acres of land to the VFW, generally located in the vicinity of the Veterans of Foreign Wars facilities. 8625 Monashka Bay Road. (Postponed from the June 15, July 20, and September 21, 1994 regular meetings). The Kodiak Island Borough Planning and Zoning Commission at their meeting on December 15, 1999 adopted the following resolution, which contains a recommendation for denial to the Borough Assembly, regarding the VFW's land disposal request. Now therefore, be it resolved by the Kodiak Island Borough Planning and Zoning Commission, That, the disposal for less that fair market value by deed transfer to the Veterans of Foreign Wars Post #7056 of a portion (approximately 50 acres) of Tract A of BLM Tract D, ADL 36049 (Plat #70- 1), located in Monashka Bay, is hereby recommended for denial by the Kodiak Island Borough Assembly, based on the following findings offact: 1. There is no compelling reason to dispose by deed transfer now of public land located immediately between the only active landfill serving a population center of more than 10,000 people and the watershed serving that same population. If as the lease draws near to its term in twenty-seven years, it is obvious that Borough land within the lease area is not needed for landfill expansion or buffer, a better informed and more knowledgeable determination can be tnade regarding land disposal, whether by sale, lease renewal or by deed transfer. The landfill is expanding and will continue to expand. The need for a viable landfill meeting increasingly strict Federal and State regulations is essential to the public good and health of the community. 2. The greatest benefit to the Borough of this public land is for it to be retained as a site for possible future landfill expansion that may be necessary in the long term (50 year period). In addition, there continually will be a need for a rock source as landfill cover material even prior to expansion. Therefore, it cannot reasonably be found that this "..disposal will allow the use of Mr. Ken Smith/Case #94 -024 December 17, 1999 Page 2 of 2 the land for a public purpose beneficial to the borough." It would be not only irresponsible, to put a future Assembly in the position o having value land given away now. alternative, of f g pto ay repurchase for public high f having to pay a pr in publi recreation benefit to offset that public cost. From a facility. It would take considerable public is simply nothing to be gained by disposal now and pani land management perspective, there potentially, much to be lost. A copy of this letter is being provided to the Kodiak Island Borough Assembly in order to inform them of the Commission's recommendation as required by KIBC 18.20.030.A. If you have any questions about the action of the Commission, please feel free to contact the Community Development Department at 486 -9362. Sincerely, 7 1 Bob Scholze, Associate Planner Community Development Department CC: Cliff Stone Jim Peotter Roy Ecklund Kodiak Island Borough Assembly and Mayor t/ Dave Jensen, Borough Manager Pat Carlson, Assessor, Kodiak Island Borough KODIAK ISLAND BOROUGH OFFICE OF THE BOROUGH CLERK COPIED TO: ASSEMBLY MAYOR MANAGER ORIGINALS TO: CLERK FILE Mr. Ken Smith, Commander Veterans of Foreign Wars PO Box 404 Kodiak, AK 99615 Dear Commander Smith: I have presented your letter and press release dated January 4. 2000 to the Borough Assembly. As you know, I have assured you and the members of the VFW that the Borough will not infringe on the VFW leasehold or your right to quiet enjoyment. You have the premises rights through April 20, 2027. Additionally, pursuant to Article 23 of the lease covenants, you have a preference right to re - lease the property upon expiration. It is not evident to me that a problem exists here. However, in the event the Borough were to consider a buyout, as you suggest, the Borough would by law be required to use the Dunagan appraisal as the purchase price. The Borough has no need for the VFW property for public use and a buyout is not contemp lated. With respect to an additional term on the lease, there is no justification for extending the term at this time. You have assurances of peaceful and quiet enjoyment of your leasehold. You have 27 years remaining on the lease with preferential rights to re -lease upon-expiration. .The VFW has a good deal. Accordingly, I can, as you request, reaffirm and acknowledge the intent of the original lease and confirm Borough adherence to the lease, and the VFW's absolute right to quiet enjoyment. Under the ideal conditions you will be operating under for the next 27 years, I encourage you and the members of the VFW to pursue your goal of expanding your facility so that you may continue to serve America's veterans. Best Wishes. Sincerely, KODIAK ISLAND BOROUGH r 1\ �kv David A. Jenst,tiJ Borough Manager Cc: Borough Mayor and Assembly Kodiak Island Borough Managers Office 710 Mill Bay Road Kodiak, Alaska 99615 Phone (907) 486 -9301 Fax (907) 486 -9390 January 5. 2000 8625 Monashka Bay Rd VFW Lodge Facility 02/03/05 I M G_0665 I MG_0666 Please print your name 1. 1v ►d t tii 2. (,jks H4 4. { 5v� Q. MC 5. UQ J; � L. S IC m; A 6. 0 h1 ✓fr day 6-u y dcty ✓ c c� 8. ^ HI 1 4) E - j 9. Ge je kI io.:1J /) E 11. /.W -/ yr 71 12. 1-17Th vat& .id-'e //r 13..1 /hE 7 ifiE1 14. Crr; // /ern o- KODIAK ISLAND BOROUGH WORK SESSION MEETING Work Session Meeting of: P UV I {,i'l;l 1 a 2ajs please print your name 1. C H ele freltmni✓ 2. L €a,t,,d // lf� t/ KODIAK ISLAND BOROUGH WORK SESSION MEETING Work Session Meeting of: 4. igeRI OM 'P/ 5., 71 /7/ 2 t5 6. nl f31 )1 7. bob DU ' 8. ci M 14)C 9. ' ti� N #(P.Q.fb 4 10. Vela (evve cte 1< 11. Fuss 1 f-eft est"._ 12. /vt ©LL y t �ic.�� Mac 13. 'liL ItI ` o C t' S 14. la 9 15. 6/2M/V Ot (nom I '2 v, Cas i• please print your name 1. G°w /V!iLS Work Session Meeting of: ) 3. ` .C rf 4. kiL\P 1 S cl.ers i 5. 1 `c-KL I Ll dW j SITS/\ 6. Mtge- SyIG„a 7. r—VC V dff9Lcjyj 8, )456449- X ern - 9. Nat) 1O. ES 1_ Ki PPEy 11 12. R ,)Au- 13. 14. 15. KODIAK ISLAND BOROUGH WORK SESSION MEE ING Z /e/oS Kodiak Branding and Marketing Committee Funding Request to KIB February 10, 2005 In August of 2003 The KBMC requested support from the KIB to provide matching funds for two grants that were being applied for at that time. The Borough Assembly unanimously supported the community's salmon revitalization effort by pledging $20,000 to be administered through the Chamber / KBMC. Of the two grants applied for (NOAA/S -K and USDA/VADG), neither were awarded, and the $20,000 was never used. In January of this year, KBMC was awarded a grant from the Alaska DCED/UAF Salmon Mini- marketing program to continue its growing Star of Kodiak regional marketing effort. The budget for this grant included a $25,000 line item for project management/staff, a new position needed to assist with the expanded activities of the project. This item was not allowed by DCED, and the 25K was removed from the grant total. At this time KBMC would like to request that the Borough recommit the 20K match to make up for the shortfall in the current grant award. The funds will be used for a seasonal (6 month) position to plan, develop and oversee the quality assurance component of the regional marketing effort. Duties will include a ground -up development of the "Star of Kodiak" quality assurance program (Budget item 7) to be ready for the 2005 Salmon season. A successful quality assurance program is central to the entire regional branding concept, and one of the most challenging to address. We need to begin the search for a qualified and dedicated individual as soon as possible in order to meet the objectives outlined in the project timetable. Star of Kodiak Quality Program Manager Position: April 1- Sept 15 @$26.25/hr for 22 weeks $23,000 Chamber of Commerce / admin $ 2.000 $25,000 Funding sources: MB $20,000 AFMB/USA grant $ 4,400 Total $24,400 ITEM description Budget request Match 1. Star of Kodiak brand promo & training videos/DVDs a. Wholesale b. Retail c. Training $25,000 May 2. Still photography database/ library (for ongoing web and mkt materials development) $10,000 AFMB Website $2,000 3. Promotional folder /press kit, marketing materials Design and Production $6,000 AFMB $12,000 4. Promotions 3 promotions, (retail and restaurant) @3,600 /promo $10,800 X 5. Samples, shipping, storage $4,000 6. Customer visits to fishing, processing sites, @1,200 /trip $2,400 7. Quality program development a. Consulting for program design and setup b. Trainings, travel, recruitment, c. Third Party oversight (ISIS), equipment $8,000 $3,200 $6,000 AFMB $4,400 8. Project management /staff $25,000 Market material Design/production 9. Travel (meetings with processors — program development) $5,000 X 10. Project administration Accounting, reporting, communications @600 /month (x12) X Kodiak Chamber in -kind $7,200 11. Office, computer, communications support USA in -kind $8,000 TOTAL BUDGET REQUEST $105,400 - $37,600 ACTUAL GRANT AWARDED $ 80,000 2005 Jan Feb Mar April May June July Aug Sept Oct Nov Dec Promotions X X X (X) Market material Design/production X X X X X (X) Quality planning X _ Quality training X X X Quality oversight X X X X Video/Photography X X X X Customer visits X X X Marketing Travel X X X X X X X X Samples, shipping X (X X X) Budget and Timetable from the 2005 DCED/UAF Salmon Mini- Marketing Grant Budget Timetable including milestones taRzed to expenditures PRESENTATION KODIAK ISLAND BOROUGH February 10, 2005 ALASKA IPIEIIAN LENT CAPITAL MANAGEMENT COMPANY 2 Table of Contents • Introducing APCMC 3 Organization 4 Growth 5 • Investment Philosophy and Process 6 Investment Philosophy 7 Institutional Approach 8 Investment Process 9 Portfolio Management 10 • Importance of Asset Allocation 11 Fixed- Income Indices 12 -15 Duration vs. Return 16 -17 Equities 18 -20 Balanced View 21 -22 Asset Allocations.. 23 -24 $ ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY 3 Introducing ALASKA P E RM A \\ 1E \ T CAPITAL MANAGEMENT COMPANY To Kodiak Island Borough 0ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY 4 • Organization • Founded by Dave Rose July 7, 1992 • An Alaska Corporation • Located in Anchorage, Alaska • Dedicated solely to investment management • Serving Alaska institutions exclusively • Independent • Employee owned and operated • No "soft money" arrangements • Use multiple broker /dealers for trades • No referral, ownership, or debt affiliations with banks or brokerages �� ALASKA PERMANENT �� CAPITAL MANAGEMENT COMPANY $2,000 $1,750 $1,500 $1,250 Mfilions $1,000 $750 $500 $250 $ - 5 Consistent, Stable Growth Over $1.97 billion in assets under management 1 III 1 11111 1 I- I u IuIIII I I1 uuuIIIIuuIIIII 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 As of December 31, 2004. Includes supervisory management of the Alaska Municipal League Investment Pool. *ALASKA ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY 6 Investment Philosophy And Process ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY 7 Investment Philosophy • Emphasis • Preservation of principal is paramount • Liquidity to meet client cash flows • Diversification for safety • Yield is subordinated to safety • Design portfolios to meet specific client needs • Adhere to client investment and asset allocation policy • Performance continuously measured against client selected benchmarks • Professional, full -time portfolio management ALASKA PERMANENT • CAPITAL MANAGEMENT COMPANY 8 Institutional Approach • Checks and balances built -in • Reports from both custodian and manager Controls custodian Custodian •Holds and values assets independently •Settles trades with broker - dealers Trade instructions Controls manager Alaska Permanent Capital Management •Manages investments •Additional reporting *Reconciles *Economic ut fa tes ALASKA PERMANENT * CAPITAL MANAGEMENT COMPANY 9 Investment Policy Monthly Reports Client Cash Flow Needs Client Risk Tolerance Asset Allocation Investment Process Benchmark Selected • Target Portfolio • Duration Range Economic Research • Economic Projections • Inflationary Expectations • Federal Reserve Policy • Technical Market Conditions • National Political Atmosphere • International Situations 4 \ Monthly \ Review Portfolio Construction & Management Sector Analysis Duration Analysis Yield Curve Analysis Individual Security Selection Client Portfolio 1 *ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY Research • Credit Sights • Argus Research • Access to Wall Street Analyst • In House Credit Analyst 10 Investment Committee • Principal Investment Officers • Formal Monthly Meeting • Discussions • Economy and Markets • Relative Value Portfolio Management Client Portfolio *Security & portfolio analysis •Portfolio accounting systems •Redundant systems •Live quotes •Analytic & modeling software •Current characteristics Management Team •Portfolio Manager •Associate Portfolio Manager •Jointly Managed *Account Strategies *Strategy Notes •Client Relations Coordinator CMS Bondedge Information Systems ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY 11 Importance of Asset Allocation AALASKA PERMANENT U CAPITAL MANAGEMENT COMPANY 12 The Details • The most significant decision which will determine the return on a portfolio will be that of asset allocation. - The two most common asset classes are: Fixed - Income Equities • An immense universe of other asset classes and sub - groups exist. International Equity Real Estate Emerging Market — Debt and Equity � PERMANENT `� CAPITAL MANAGEMENT COMPANY 13 Fixed - Income Indices • Government • US Treasury and Agency securities • Government /Credit • US Treasury, Agency, and Corporate securities • Aggregate • All the above plus Mortgage and Asset backed securities *A ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY • What are they? An unmanaged accumulation of all debt issues which meet the criteria of the particular index Criteria: Term: 1 -3 years /1 -5 years /1- 10years Size: Rating: Category: US Treasury /Agency /Corporates • What are they used for? To evaluate the performance of ones own portfolio against a standard To set the parameters of investments in a portfolio 14 Fixed - Income Indices ` � $ PERMANENT CAPITAL MANAGEMENT COMPANY 15 Fixed - Income Indices • What securities are in an index? 1 -3 Gov 1 -5 Gov Inter. Gov /Credit Aggregate US Treasury 63% 68% 39% 25% Agency 37% 32% 21% 11% Corporates 40% 24% MBS 36% Other 4% Max Final Maturity 3 years 5 years 10 years 30 years *ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY Duration vs. Return 16 8.50% - 8.00% - 7.50% - 7.00% - 6.50% - 6.00% - 5.50% - 5.00% 5.12% Lehman 1 - 3 Year 5.81% Five Year History Retum as of 1/31/05 6.67% 7.33% 7.92% Lehman 1 - 5 Year Lehman Intermediate Lehman Intermediate Lehman Aggregate Go'.emment Gov/ Credit 4.75 - 4.25 - 3.75 - 3.25 - 2.75 - 2.25 - 1.75 - 1.25 1.74 Lehman 1 - 3 Year 2.39 Duration (Risk) 3.39 3.72 4.22 Lehman 1 - 5 Year Lehman Intermediate Lehman Intermediate Lehman Aggregate Goeemment GS Credit ALASKA PERMANENT e CAPITAL MANAGEMENT COMPANY Duration vs. Return 17 8.00% 7.50% 7.00% 6.50% 6.00% 5.50% 5.00% 5.65% 6.09% Ten Year History Retum as of 1/31/05 6.59% 7. 7.58% Lehman 1 - 3 Year Lehman 1 - 5 Year Lehman Intermediate Lehman Intermediate Lehman Aggregate Goeemment Gov/ Credit 4.75 4.25 3.75 3.25 2.75 2.25 1.75 1.25 1.74 Lehman 1 - 3 Year 2.39 Duration (Risk) 3.39 3.72 4.22 Lehman 1 - 5 Year Lehman Intermediate Lehman Intermediate Lehman Aggregate Govemment Gov/ Credit *ALASKA KA PERMANENT MANAGEMENT COMPANY 18 Equities • Domestic /International • Growth vs Value • Large Cap vs Small Cap • Sub Categories of all the above • For general equity exposure an S &P Index Fund is an efficient way to gain such exposure *ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY 19 29% One Year Periods Five Year Periods CID Source: Ibbotson Associates Risk of Stock Market Loss 1926 -2003 Ten Year Periods 3% 12% $ ALASKA PERMANENT d I CAPITAL MANAGEMENT COMPANY 20 -5.00% S &P 500 Annualized Total Returns -1.77% 10Yr 0.00% 5.00% 10.00% 1149% 15.00% 4 ALASKA PERMANENT IS CAPITAL MANAGEMENT COMPANY 21 • A Mix of Fixed - Income and Equity • Balance of 85% Fixed and 15% Equity Portfolio Lehman Intermediate Gov /Credit S &P 500 Balanced Account Return Balanced View 5yr l 0yr 7.33% 7.00% -1.77% 11.49% 5.97% 7.67% $ALASKA PE 100 %Stocks /0 %Bonds 70/30 30/70 0 %Stocks /100 %Bonds Annual Returns 10.4% 9.3% 7.3% 5.4% Best Returns 28.5% 22.8% 21.3% 21.6% Worst Returns -12.5% -6.3% 0.1% -2.1% % Positive Return 88% 93% 100% 92% 22 •Long Government Bonds: Intermediate Governments worst ten year period was +1.0% annualized and 100% positive returns. •US T -bill annualized returns over period was 3.7% Source: Ibbotson Associates Stock/Bond Allocation Five Year Rolling Periods 1926 -2003 1 ALASKA PERMANENT • CAPITAL MANAGEMENT COMPANY 23 • Alaska Permanent Fund • AEB U.S. Fixed Income 28% Non U.S. Fixed Income 4% Real Estate 10% Alternative 3% Domestic Equity 37% Non Domestic Equity 18% Fixed Income 78% Domestic Equity 20% International Equity 2% • City of Fairbanks Permanent Fund U.S. Fixed Income 75% Equity 25% Asset Allocations ALASKA PERMANENT CAPITAL MANAGEMENT COMPANY 24 Asset Allocation • Diversification to improve risk/reward tradeoff • Prefer intermediates vs longer bonds • Consider modest equity exposure • Risk of loss shrinks as time horizon extends ALAS MANAGEMENT KA PERMANENT e CAPITAL 25 Kodiak Island Borough Determinations • Investment Objective • Investment Goals • Investment Policy Commensurate • Asset Allocation • Implementation A CAPITAL MANAGEMENT ALASKA PERMANENT AILASKA 1ERMA\ IE\ T CAPITAL MANAGEMENT COMPANY is relationship driven and views itself as a long -term partner with its clients. YOUR BUSINESS IS IMPORTANT TO US! ALASKA PERMANENT COMPANY RMANENT I