CITY OF CRAIG COUNCIL AGENDA APRIL 5, 2018 COUNCIL CHAMBERS 7:00 PM

ROLL CALL Mayor Tim O’Connor, Dave Creighton, Don Pierce, Jim See, Julie McDonald, Mike Douville, Jan Trojan CONSENT AGENDA Items listed below will be enacted by one motion. If separate discussion is desired on an item, that item may be removed and placed on the regular meeting agenda. • City Council Meeting Minutes of March 01, 2018 • City Council Meeting Minutes of March 15, 2018 HEARING FROM THE PUBLIC • Open for public comment • Resolution 18-05, Slope Easement on Brandi Court-Anchor Baptist Church REPORTS FROM CITY OFFICIALS Mayor/Fire Chief Administrator Treasurer Aquatic Manager City Clerk City Planner EMS Coordinator Harbormaster Library Police Chief Public Works Parks and Rec Parks and Public Facilities READING OF CORRESPONDENCE

• •

APCM February Report 2018 Post Fieldwork Letter from Horan & Co.

CONSIDERATION OF RESOLUTIONS AND ORDINANCES • Resolution 18-05, Slope Easement on Brandi Court-Anchor Baptist Church UNFINISHED BUSINESS • Review of Proposed Ordinance regarding Port St. Nicholas Road Maintenance NEW BUSINESS • Consider approval of the FY 2017 financial audit • Discussion on National Forest Land Uses ADJOURNMENT

Aquatic Manager- Jessica provided a written report. Julie asked whether it would be possible to pull revenue from other communities that utilize the pool. Jessica mentioned that at one point there had been an agreement with other communities to contribute more. The previous pool manager raised rates with a discount for Craig residents to help with the cost. City Clerk- Kassi provided a written report and noted that the next meeting is March 15th. City Planner- Brian provided a written report and noted that there has been a request from council members to set up a council email through the city. If any members are interested in a city email, please contact Brian. EMS Coordinator- Chaundell reported that the department has been working on training. Chaundell is looking into a cadet program for the Fire Department like the Youth First Responders program. The Fire Department was awarded four flare cameras for fighting fires. Two will stay in the Fire Dept, and two will go to the Police Department. Harbormaster- Hans provided a written report. Library- Kim provided a written report, and also noted that the library will receive an etched gift from Ballard Hadman’s estate. Police Chief- RJ provided a written report, and has a new officer working as of Monday. Public Works- Russell provided a written report. Parks and Rec- Victoria provided a written report and commented that on Saturday the ballet students will be performing at the Island Grind. Jose Cervera’s team won the volleyball tournament. The Spring Carnival, Whalefest and Easter will be the weekend of April 1st. Parks and Public Facilities- Doug provided a report. Julie McDonald commented that the Parks and Public Facilities shop was immaculate, and Doug and Terry are doing a great job. READING OF CORRESPONDENCE • • •

APCM December Report PSN FY18 Q2 Reimbursement Request 2018 Legislative Bulletin

CONSIDERATION OF RESOLUTIONS AND ORDINANCES Resolution 18-04, Authorizing a loan application to the Alaska Department of Environmental Conservation, Drinking Water Fund Program DOUVILLE/TROJAN moved to approve Resolution 18-04 MOTION CARRIED UNANIMOUSLY

March 1, 2018 Council Meeting

2

UNFINISHED BUSINESS NEW BUSINESS Discussion of US Forest Service Tongass Land Use Policy Mike Douville led the discussion of the Tongass Plan and Roadless Rule. Mike would like to see the city makes some comments regarding both. The council agreed to have staff look into the Land Use Policy and Roadless Rule, and draft comments to review at the next meeting. ADJOURNMENT DOUVILLE/TROJAN

moved to adjourn at 7:39 p.m. MOTION CARRIED

APPROVED

MAYOR TIMOTHY O’CONNOR

March 1, 2018 Council Meeting

ATTEST KASSI MACKIE, CITY CLERK

3

CITY OF CRAIG COUNCIL MEETING THURSDAY MARCH 15, 2018

ROLL CALL Mayor Tim O’Connor called the meeting to order at 7:02 p.m. and the roll was taken. Present were Mike Douville, Jan Trojan, Jim See, and Don Pierce. Absent excused was Julie McDonald and Dave Creighton. Staff present: Jon Bolling, City Administrator; Kassi Mackie, City Clerk; Joyce Mason, Treasurer; Brian Templin, City Planner Audience present: Michael Kampnich, Jodi Garza, Jamie Schinker CONSENT AGENDA None HEARING FROM THE PUBLIC Michael Kampnich was present to discuss the Tongass agenda item. Michael requested that the council and public think seriously about the implications of the bills being reviewed. One of the bills would allow for Anchorage corporations to select land on the island. Michael explained that these bills could change what we see as a way of life on Prince of Wales, citing the San Juan Islands as an example. READING OF CORRESPONDENCE None CONSIDERATION OF RESOLUTIONS AND ORDINANCES None UNFINISHED BUSINESS None

NEW BUSINESS Consider assignment of lease at JT Brown Industrial Park Jim See is concerned that the council isn’t charging enough for the lot use. Brian explained that the lots will be appraised by Horan and Co upcoming, and the appraisal will be provided to the council for review. PIERCE/TROJAN moved to approve the assignment of the lease of Lot 2A, JT Brown Subdivision to Seaborn Seafood, and set the lease terms for ten years, beginning January 1, 2018. MOTION CARRIED UNANIMOUSLY

March 15, 2018 Council Meeting

1

Review of legislation in Congress re: Tongass National Forest Michael Kampnich explained the roadless rule, and roaded roadless rule. Jim expressed displeasure in considering allowing any other entities to acquire property on Prince of Wales. Mike Douville commented that there is a lot of information in this bill, and as to the proposed changes to the Native Allotment program, there are some people who have strong ties to the island, which may be allowable when receiving land here, but not 160 acres a piece. Mike Douville also mentioned that the rural priority is lost when land is removed from the national forest. Michael Kampnich urged the council to consider using the boundary of Unit 2 for the comments. The council directed staff to prepare comments for the Alaska Congressional Delegation regarding Tongass-related bills pending in Congress. ADJOURNMENT SEE/TROJAN

moved to adjourn at 7:38 p.m. MOTION CARRIED

APPROVED

MAYOR TIMOTHY O’CONNOR

March 15, 2018 Council Meeting

ATTEST KASSI MACKIE, CITY CLERK

2

CITY OF CRAIG MEMORANDUM To: From: Date: RE:

Craig Mayor and City Council Brian Templin, City Planner March 28, 2018 Slope Easement on Brandi Court – Anchor Baptist Church

Anchor Baptist Church owns Lot 6A, Tract 16, USS 2611 located at Water Street and Brandi Court. Anchor has requested a slope easement to allow them to fill a portion of the area in the Brandi Court right-of-way to allow them additional off-street parking. The majority of the parking area will be situated on Lot 6A, with a portion (encompassed by this easement) occupying the area between the Lot 6A property line and the drivable surface of Brandi Court. The actual dimensions and size of the easement will be determined by a survey if the council approves the easement. It is estimated that the area of the easement will be less than 275 square feet. The slope easement will allow parking on the property from Brandi Court. I have attached a copy of the application letter showing the proposed easement area. Craig Municipal Code 16.04.010 allows for the city council to grant easements when requested. Craig Public Works reviewed the easement request and will work with Anchor Baptist to ensure that drainage structures are constructed or placed as needed to ensure good stormwater runoff. Anchor Baptist will be responsible for maintenance of these structures. Anchor Baptist will also be responsible for construction and maintenance of all fill on the proposed easement area at no cost to the city. Other than the fill and drainage structures, Anchor Baptist will not be allowed to make other improvements to the easement area without approval by the city administrator. Anchor Baptist Church will be required to submit a survey of the easement area prior to execution of the easement. The survey will be attached to the proposed easement as Exhibit A. In addition to the survey of the proposed easement area, Anchor Baptist will be required to submit a completed as-built survey of the improvements after construction is complete. Since Anchor Baptist is a non-profit the council may exempt them from paying for an appraisal and paying market value for the lease area. Recommendation: Approve Craig Resolution 18-05 , allowing the Craig City Administrator to negotiate and execute a below market value easement of right-of-way along Brandi Court to Anchor Baptist Church.

Brian Templin, Anchor Baptist Church (ABC) is seeking a slope easement on the southeast corner of 601 Brandi Court. The easement will be in a section of existing utility easement. The purpose of easement is to increase our off street parking. Although we have adequate parking in regards to city code, we would like to increase the convenience and minimize the congestion that might be a result of special events. The work we have planned will have a minimal effect on existing infrastructure. We plan on filling the shoulder of the road with gravel and add an approach. The result would give us 6 additional parking spaces. Attached are some pictures showing the slight elevation change between the road surface and the lot elevation. The pictures also shows the lack of developed drainage in the area. If found necessary by planning a zoning, ABC would put a french drain in under the affected area of the slope. The area developed for the slope will be maintained by ABC. Before any construction is performed, ABC will have a locate performed on all utilities in the affected area. When construction is completed the street view will be similar to the other side of the street, with street approached parking.

CITY OF CRAIG RESOLUTION 18-05 A RESOLUTION GRANTING AN EASEMENT TO ANCHOR BAPTIST CHURCH TO PLACE FILL ALONG A PUBLIC RIGHT-OF-WAY ALONG BRANDI COURT WHEREAS, pursuant to Craig Municipal Code 16.04.010, Anchor Baptist Church has requested an easement to place fill on City owned right of way adjacent to Anchor Baptist Church’s property (Lot 6A, Tract 16, USS 2611) along Brandi Court WHEREAS, the proposed construction would be similar in design and size to the existing fill; and, WHEREAS, there are no marketable materials that shall be harvested or removed from the site and this application has been referred to the appropriate City departments for comment and all affected departments concur with the granting of this easement; and, WHEREAS, this easement is for an exclusive use of the right-of-way; and, WHEREAS, Anchor Baptist Church agrees to perform all installation, maintenance, operation and if required, removal of the rock fill at no cost to the City; and, WHEREAS, this easement and the conditions contained herein shall be attached to the above described property for the purpose of sale or transfer; and, WHEREAS, Section 16.04.010 of the Craig Municipal Code provides for approval of easements by City Council Resolution. NOW, THEREFORE, BE IT RESOLVED that the City of Craig hereby directs the City Administrator to enter into negotiations for the exact location and execute an agreement with Anchor Baptist Church for the aforementioned easement. The City Administrator shall ensure that all applicable sections of CMC 16.04.010 are met. Adopted this 5th day of April, 2018.

________________________________ Mayor Tim O’Connor

ATTEST_________________________ Kassi Mackie, City Clerk

City of Craig Memorandum To:

City Mayor & City Council

From: Joyce Mason, Treasurer Date: March 28, 2018 RE:

Monthly Report

The February budget to actual report is attached to this memo. The department managers, Jon and myself are monitoring the actual to budget as actual should be at approximately 67% of the budget. The large maintenance repair for the harbor was the dock repair after the fire. The City’s insurance has a $25,000 deductible so the city was unable to recoup any costs of this repair. The Sewer Capital line item has the $53,140 repair cost to the sewer plant building. The finance department continues to process harbor accounts receivable, utility billing, and collections of the many city’s fees. The property tax assessment notices have been mailed and appeal forms are available at the front counter of city hall. Home owners have till April 27 to appeal their assessment. If you have any questions please contact me at [email protected]

City of Craig Cash Balances 2/28/2018 General Fund Deposit Clearing Account Checking - First Bank Checking - Wells Fargo Petty Cash Petty Cash-Harbors Petty Cash- Aquatic Center Petty Cash - Police Petty Cash- Library Specail Recreation Savings

14,176.41 2,668,070.68 110,217.15 300.00 200.00 250.00 150.00 50.00 1,940.37

Total

2,795,354.61

Restricted Fund Cash, , Police Fund Cash Evidence, Police Police Petty Cash Cash Equipment Fund Cash Hatchery Salmon Derby MM Hatchery Funds MM Park Funds Fish Quota Funds MM POW Clinic Funds MM Invest Muni Land Saving Account Total

434.67 4,397.65 721.17 342,696.85 23,093.89 26.87 12,587.47 15,490.97 42,779.92 818,490.91 79,987.85 1,340,708.22

Enterprise Fund Debt Service Savings Water & Wastewater Cash DNR Performance CD

14,983.52 4,466.83 8,500.00

Total

27,950.35

City of Craig 04. Craig Gov Revenue

620,000 1,497,000 2,000 120,000 2,000 0 2,241,000

18,575 12,460 200 (12,040) (4,000) 1,000 375 16,570

6,016 (214,111) (1,855) (25,695) 3,951 1,314 (230,380)

177 7 55 86 105 23 0 83 115 100

107 114 104 76 0 0 0 104

101 86 7 79 298 0 90

% of Budget

626,016 1,282,889 145 94,305 5,951 1,314 2,010,620

265,500 89,842 5,000 50,000 4,000 0 0 414,342

22,987 (935) (22,347) (143) 568 (770) (100) (175) 1,045 130

46 0 0 0 71

Variance

0 69,708 94 826 5,951 824 77,403 284,075 102,302 5,200 37,961 0 1,000 375 430,913

30,000 1,000 50,000 1,000 12,000 1,000 100 1,000 7,000 103,100

(38,558) (1,000) 9,589 8,870 (21,099)

Budget

01 00.4000.00 000 Property Tax 01 00.4050.00 000 Sales Tax 01 00.4055.00 000 Delinquent Sales Tax 01 00.4060.00 000 Liquor Sales Tax 01 00.4070.00 000 Property Tax Penalties 01 00.4080.00 000 Sales Tax Penalties Total Local Taxes 0 0 5,200 0 0 0 375 5,575

52,987 65 27,653 857 12,568 230 0 825 8,045 103,230

72,000 1,000 0 0 73,000

Y-T-D Actual

01 00.4100.00 000 Property PILT Funding 01 00.4110.00 000 State Revenue Sharing 01 00.4111.00 000 Liquor Revenue Sharing 01 00.4112.00 000 Fish Bus Tax - DOR 01 00.4120.00 000 Shared Fish Tax - DCED 01 00.4142.00 000 Revenue, Library Grant 01 00.4143.00 000 Revenue, State Grant Total State Revenue 4,065 0 5,402 47 (66) 0 0 120 545 10,113

33,442 0 9,589 8,870 51,901

M-T-D Actual

01 00.4220.00 000 EMS Service Fees 01 00.4250.00 000 EMS Training Fees 01 00.4260.00 000 Aquatic Center Revenue 01 00.4270.00 000 Library Fees 01 00.4275.00 000 Recreation Revenue 01 00.4280.00 000 Senior Card Fees 01 00.4620.00 000 Taxi Permit Fees 01 00.4640.00 000 Building Permit Fees 01 00.4644.00 000 Access Permit Fees Total Permits & Fees

4,266 0 2,089 0 6,355

February 28, 2018

01 00.4300.00 000 Property Lease/Rentals 01 00.4400.00 000 Material Sales 01 00.4410.00 000 Equipment Sales 01 00.4450.00 000 K Salmon Hatchery Support Total Local Revenue

87 0 65 33 60 71 100 62

88

(1,259) 30 (20,932) (6,750) (114,911) (14,608) 0 (158,430)

$

10,000 0 60,000 10,000 286,584 50,000 3,000 419,584

(392,411)

8,741 30 39,068 3,250 171,673 35,392 3,000 261,154

$

360 0 3,069 0 0 4,424 3,000 10,853

3,257,026

01 00.4700.00 000 Police-Fines,Citation 01 00.4701.00 000 Aminal Impound Fees 01 00.4703.00 000 Motor Vehicle Commision 01 00.4650.00 000 State Trooper Dispatch 01 00.4660.00 000 State Jail Contract Revenue 01 00.4665.00 000 Klawock Dispatch 01 00.4670.00 000 Forest Service Dispatch Total Public Safety Funds

$

246 0 0 0 113

2,864,616

1,459 (5,000) 2,339 2,000 798

$

1,000 5,000 0 0 6,000

112,210

2,459 0 2,339 2,000 6,798

$

544 0 1,367 0 1,911

01 00.4820.00 000 Interest Income (A/R) 01 00.4830.00 000 Misc Revenue Convenience Fees 01 00.4900.00 000 Misc Revenue 01 00.4910.00 000 Donations Received Total Other Revenue

Total Revenues

City of Craig Revenue and Expense MTD and YTD February 28, 2018

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

Total Expenditures

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

2,811

612 1,910 0 0 262 0 0 27 0

50,739

29,718 10,558 5,345 592 1,065 2,067 0 1,394 0

39,325 13,955 414 0 1,273 0 0 672 0

65,972

8,596 46,294 645 7,313 1,232 9 0 241 1,642

497,551

236,860 82,410 118,958 9,770 9,768 12,560 664 21,495 5,066

0

0 0 0 0 0 0 0 0 0

773

0 0 0 683 90 0 0 0 0

794

0 0 0 1,099 (305) 0 0 0 0

85,664 62,321 6,357 0 16,990 11,361 2,258 7,651 26,200

55,639

39,325 13,955 414 0 1,273 0 0 672 0

66,745

8,596 46,294 645 7,996 1,322 9 0 241 1,642

498,345

236,860 82,410 118,958 10,869 9,463 12,560 664 21,495 5,066

Total

116,985 96,022 7,200 0 7,500 12,200 5,000 8,025 0

84,792

41,619 40,389 0 0 1,000 0 0 1,784 0

100,741

14,700 83,241 2,500 0 0 0 0 300 0

668,859

311,555 167,349 126,500 10,745 12,500 16,850 2,308 19,052 2,000

Budget

31,321 33,701 843 0 (9,490) 839 2,742 374 (26,200)

29,154

2,294 26,434 (414) 0 (273) 0 0 1,113 0

33,996

6,104 36,947 1,855 (7,996) (1,322) (9) 0 59 (1,642)

170,515

74,695 84,939 7,543 (124) 3,037 4,290 1,644 (2,443) (3,066)

Variance

73.23 64.90 88.29 0.00 (225.53) 93.12 45.16 95.34 0.00

65.62

94.49 34.55 0.00 0.00 (126.30) 0.00 0.00 37.67 0.00

66.25

58.48 55.61 25.80 0.00 0.00 0.00 0.00 80.33 0.00

74.51

76.03 49.24 94.04 (100.15) 75.70 74.54 28.77 (111.82) (252.30)

% of Budget

Y-T-D Y-T-D Month to Date Current Year Encumbrance

Total Expenditures

5,472 1,506 0 0 0 0 0 23 0

55,639

0 0 345 0 1,071 0 924 0 0

11 Administration

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

7,001

85,664 62,321 6,012 0 15,919 11,361 1,334 7,651 26,200

14 Parks &Facilities

13 Planning

12 Council

Total Expenditures

7,893 7,149 300 0 696 2,236 40 915 0

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

City of Craig Revenue and Expense MTD and YTD February 28, 2018

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

62,359

34,777 21,214 289 0 3,477 1,911 0 691 0

30,226

13,263 9,460 0 299 2,488 1,384 2,760 572 0

19,229

68,014 43,172 3,313 1,279 10,815 3,628 461 3,176 839

598,043

334,481 193,225 4,196 5,171 35,502 17,161 0 5,977 2,330

201,198

93,415 52,488 747 4,250 16,917 9,688 10,474 12,538 681

216,462

1,595

0 0 0 130 1,275 0 190 0 0

3,115

0 135 4,045 1,672 (3,139) 0 0 402 0

8,864

0 0 0 (299) 4,068 0 448 0 4,647

2,340

0 180 0 291 909 3,401 0

136,292

68,014 43,172 3,313 1,409 12,090 3,628 651 3,176 839

601,156

334,481 193,360 8,241 6,842 32,362 17,161 0 6,379 2,330

210,063

93,415 52,488 747 3,951 20,985 9,688 10,923 12,538 5,328

218,802

Total

0 4,186 3,500 2,700 1,379 2,410 5,000

172,932

85,622 49,900 3,950 3,240 18,400 4,300 1,000 4,520 2,000

899,301

482,577 339,153 1,800 0 37,250 27,000 0 10,271 1,250

282,246

111,054 89,389 500 0 12,600 18,600 45,000 5,103 0

252,932

Budget

0 4,006 3,500 2,409 470 (991) 5,000

36,640

17,608 6,728 637 1,831 6,310 672 349 1,344 1,161

298,145

148,096 145,793 (6,441) (6,842) 4,888 9,839 0 3,892 (1,080)

72,183

17,639 36,901 (247) (3,951) (8,385) 8,912 34,077 (7,435) (5,328)

34,130

Variance

0.00 4.30 0.00 10.78 65.92 (140.12) 0.00

78.81

79.44 86.52 83.87 43.49 65.71 84.37 65.10 70.27 41.95

66.85

69.31 57.01 (456.83) 0.00 86.88 63.56 0.00 62.11 (185.40)

74.43

84.12 58.72 (148.40) 0.00 (165.55) 52.09 24.27 (244.70) 0.00

86.51

% of Budget

Y-T-D Y-T-D Month to Date Current Year Encumbrance

Total Expenditures

9,211 7,196 60 0 1,290 473 0 397 0

134,697

0 0 0 0 399 0 0

Total Expenditures

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

18,627

0 180 0 291 510 3,401 0

18 Fire Department

Total Expenditures

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

17 EMS

16 Police

15 Public Works

Total Expenditures

0 66 0 0 0 651 0

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses

City of Craig Revenue and Expense MTD and YTD February 28, 2018

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

Total Expenditures

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

6,552

3,662 1,905 0 0 118 552 7 308 0

9,175

4,511 3,486 328 0 125 622 0 103 0

1,101

86,828 50,481 1,758 2,218 8,714 83,017 213 6,220 99,003

63,778

31,295 17,134 3,785 0 1,935 7,158 7 2,464 0

83,731

40,715 31,052 1,483 448 5,186 4,023 0 824 0

7,854

16,971

0 0 1,190 (313) 1,094 15,000 0 0 0

0

0 0 0 0 0 0 0 0 0

1,196

0 0 0 0 1,196 0 0 0 0

399

0 0 28,548 0 0

355,425

86,828 50,481 2,948 1,905 9,810 98,017 213 6,220 99,003

63,778

31,295 17,134 3,785 0 1,935 7,158 7 2,464 0

84,927

40,715 31,052 1,483 448 6,382 4,023 0 824 0

8,253

Total 3,072 400

0 0 0 0 0

498,091

128,567 96,855 4,000 2,525 20,760 98,500 4,820 6,550 135,514

99,366

44,720 32,406 4,900 0 1,000 13,000 0 3,340 0

125,293

56,685 47,098 3,847 0 6,920 8,940 1,000 803 0

29,195

Budget 4,020 6,000

0 0 (28,548) 0 0

142,666

41,739 46,374 1,052 620 10,950 483 4,607 330 36,511

35,588

13,425 15,272 1,115 0 (935) 5,842 (7) 876 0

40,366

15,970 16,046 2,364 (448) 538 4,917 1,000 (21) 0

20,942

Variance 948 5,600

0.00 0.00 0.00 0.00 0.00

71.36

67.54 52.12 73.70 75.45 47.25 99.51 4.42 94.96 73.06

64.18

69.98 52.87 77.24 0.00 (192.50) 55.06 0.00 73.77 0.00

67.78

71.83 65.93 38.55 0.00 92.23 45.00 0.00 (101.62) 0.00

28.27

% of Budget 76.42 6.67

Y-T-D Y-T-D Month to Date Current Year Encumbrance 384 3,072 0 0 400 0

Total Expenditures

10,483 6,467 300 0 1,992 5,005 0 772 0

338,452

0 0 0 0 0

Total Misc Expenses TotalCapital Expenses

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

25,019

0 0 28,548 0 0

31 PSN Hatchery

25 Aquatic Center

24 Recreation

19 Library

Total Expenditures

Total Expenditures

0 0 0 0 0

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses

City of Craig Revenue and Expense MTD and YTD February 28, 2018

28,692

0 0 0 0 0 0 0 0 0

0

11,710

0 0 0 0 0 0 0 0 11,710

28,692

Total 0 0 144 0

0

0 0 0 0 0 0 0 0 0

0

Budget 0 0 0 0

(11,710)

0 0 0 0 0 0 0 0 (11,710)

(28,692)

Variance 0 0 (144) 0

0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.00

99 Inter Governmental Transfers

% of Budget 0.00 0.00 0.00 0.00

18

0 0 0 0 0 0 0 0 11,710

0

Y-T-D Y-T-D Month to Date Current Year Encumbrance 0 0 0 0 0 0 18 144 0 0 0 0

0 0 0 0 0 0 0 0 304 11,710

Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses

Total Personnel Expenses Total Personnel Benefits Expenses TotalContract Expenses TotalPersonnel Misc Expenses Total Material & Supplies Expenses Total Utlities Expenses Total Maintenance Expenses Total Misc Expenses TotalCapital Expenses 304

Total Expenditures

Total Expenditures

City of Craig Revenue and Expense MTD and YTD February 28, 2018 Sewer Total Revenues Total Personnel Expenditures Total Benefits Expeditures Total Contract Expenditures Total Travel & Expenditures Total Materials Expenditures Total Utilties Expenditures Total Repairs & Maint Expenditures Total Other Expenditures Total Capital & Debt Expenditures

Total Expenditures Excess Revenue Over (Under) Expenditures Water Total Revenues Total Personnel Expenditures Total Benefits Expeditures Total Contract Expenditures Total Travel & Expenditures Total Materials Expenditures Total Utilties Expenditures Total Repairs & Maint Expenditures Total Other Expenditures Total Capital & Debt Expenditures

Total Expenditures Excess Revenue Over (Under) Expenditures Garbage Total Revenues Total Personnel Expenditures Total Benefits Expeditures Total Contract Expenditures Total Travel & Expenditures Total Materials Expenditures Total Utilties Expenditures Total Repairs & Maint Expenditures Total Other Expenditures Total Capital & Debt Expenditures

Total Expenditures

$

60,891.46

25,308.36 6,188.47 3,642.89 267.30 0.00 1,587.06 5,192.60 0.00 397.00 43,616.14

M-T-D Actual

$

$

40,515.56

24,094.27 9,323.55 5,036.13 592.09 325.15 16,579.19 5,545.10 0.00 658.00 2,456.35

(35,583.10)

$

$

18,577.31

24,368.00 2,990.80 2,660.67 11,343.20 0.00 516.96 0.00 789.68 276.00 0.00

(16,421.29)

$

$

267,562.13

193,611.90 51,864.12 26,380.94 6,614.83 300.00 6,176.23 31,742.40 2,997.99 3,285.55 138,200.07

Y-T-D Actual

$

$

237,215.48

192,593.41 84,455.43 42,403.28 4,975.09 925.15 52,414.93 35,797.65 2,446.99 5,462.00 8,334.96

(73,950.23)

$

$

183,834.01

200,366.52 28,500.61 22,815.79 122,855.48 0.00 4,084.17 0.00 3,369.96 2,208.00 0.00

(44,622.07)

$

$

171.17

0.00 0.00 0.00 0.00 0.00 106.23 0.00 64.94 0.00 0.00

Y-T-D Encumbrance

$

$

33,127.42

0.00 0.00 0.00 1,600.00 0.00 2,000.42 0.00 56.00 0.00 29,471.00

(171.17)

$

$

0.12

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.12 0.00 0.00

(33,127.42)

$

193,611.90 $ 51,864.12 26,380.94 6,614.83 300.00 6,282.46 31,742.40 3,062.93 3,285.55 138,200.07

278,601.00

276,000.00 86,802.00 52,289.00 6,000.00 825.00 8,400.00 44,700.00 12,000.00 7,588.00 59,997.00

(93,255.80)

Variance

267,733.30 $

(2,601.00)

$ (108,706.59) 88,442.57 54,764.72 (575.09) 264.85 (19,265.35) 25,302.35 2,497.01 973.00 (13,972.96)

Y-T-D Budget

(74,121.40)

301,300.00 172,898.00 97,168.00 6,000.00 1,190.00 35,150.00 61,100.00 5,000.00 6,435.00 23,833.00

$

Total

$

192,593.41 $ 84,455.43 42,403.28 6,575.09 925.15 54,415.35 35,797.65 2,502.99 5,462.00 37,805.96

408,774.00

(247,137.69)

$

$

270,342.90 $

(107,474.00)

$ (102,633.48) 7,452.39 10,930.21 93,644.52 0.00 3,415.83 0.00 (2,370.08) 1,336.00 0.00

(82,388.10) 34,937.88 25,908.06 (614.83) 525.00 2,117.54 12,957.60 8,937.07 4,302.45 (78,203.07)

$

(77,749.49)

303,000.00 35,953.00 33,746.00 216,500.00 0.00 7,500.00 0.00 1,000.00 3,544.00 0.00

$

10,867.70

$

200,366.52 $ 28,500.61 22,815.79 122,855.48 0.00 4,084.17 0.00 3,370.08 2,208.00 0.00

298,243.00

$

$

183,834.13 $

114,408.87

138,431.10

$

$

96.10

(70.15) 59.75 50.45 (109.25) 36.36 74.79 71.01 25.52 43.30 (229.34)

% Budget

$

$

66.14

(63.92) 48.85 43.64 (108.58) 77.74 (153.81) 58.59 50.06 84.88 (157.63)

(2,849.73)

$

$

61.64

(66.13) 79.27 67.61 56.75 0.00 54.46 0.00 (336.01) 62.30 0.00

(72.34)

$

City of Craig Revenue and Expense MTD and YTD February 28, 2018

Excess Revenue Over (Under) Expenditures Harbor Total Revenues Total Personnel Expenditures Total Benefits Expeditures Total Contract Expenditures Total Travel & Expenditures Total Materials Expenditures Total Utilties Expenditures Total Repairs & Maint Expenditures Total Other Expenditures Total Capital & Debt Expenditures

Total Expenditures Excess Revenue Over (Under) Expenditures JTB Industrail Park Total Revenues Total Personnel Expenditures Total Benefits Expeditures Total Contract Expenditures Total Travel & Expenditures Total Materials Expenditures Total Utilties Expenditures Total Repairs & Maint Expenditures Total Other Expenditures Total Capital & Debt Expenditures

Total Expenditures Excess Revenue Over (Under) Expenditures Ward Cove Cannery Total Revenues Total Personnel Expenditures Total Benefits Expeditures Total Contract Expenditures Total Travel & Expenditures Total Materials Expenditures Total Utilties Expenditures Total Repairs & Maint Expenditures Total Other Expenditures Total Capital & Debt Expenditures

M-T-D Actual

$

21,728.18

9,397.72 10,405.79 5,636.51 0.00 0.00 848.93 3,799.47 265.48 772.00 0.00

5,790.69

$

12,547.64 3,954.59 1,980.51 0.00 0.00 144.08 2,750.10 2,029.99 926.00 327.72

(12,330.46)

$

12,112.99 434.65

$

$

442.40 0.00 0.00 0.00 0.00 0.00 188.06 14.99 80.00 0.00

Y-T-D Actual

$

234,901.45

184,653.60 80,996.88 45,073.12 357.00 3,649.51 12,019.91 21,482.03 23,231.78 19,904.44 28,186.78

16,532.51

$

558,883.96 75,365.82 21,034.12 1,020.00 0.00 5,391.90 34,466.50 5,203.48 7,733.00 56,404.63

(50,247.85)

$

206,619.45 352,264.51

$

$

5,240.00 0.00 0.00 0.00 0.00 9.98 1,016.28 135.98 640.00 0.00

Y-T-D Encumbrance

$

6,149.03

0.00 0.00 0.00 3,180.00 0.00 160.00 0.00 2,809.03 0.00 0.00

(0.12)

$

0.00 0.00 0.00 0.00 0.00 460.42 0.00 1,004.01 0.00 60.25

(6,149.03)

$

1,524.68 (1,524.68)

$

$

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

241,050.48 $

184,653.60 $ 80,996.88 45,073.12 3,537.00 3,649.51 12,179.91 21,482.03 26,040.81 19,904.44 28,186.78

(36,867.00)

261,867.00

225,000.00 121,894.00 76,468.00 0.00 2,000.00 7,000.00 22,100.00 10,000.00 22,405.00 0.00

Y-T-D Budget

$

(56,396.88)

433,031.00 76,692.00 48,631.00 1,800.00 0.00 9,100.00 55,000.00 5,000.00 9,581.00 54,000.00

Total

$

558,883.96 $ 75,365.82 21,034.12 1,020.00 0.00 5,852.32 34,466.50 6,207.49 7,733.00 56,464.88

259,804.00

4,757.00

$

208,144.13 $

16,532.39

$

173,227.00

6,000.00 0.00 0.00 0.00 0.00 0.00 2,100.00 2,750.00 31.00 2,000.00

350,739.83

$

5,240.00 $ 0.00 0.00 0.00 0.00 9.98 1,016.28 135.98 640.00 0.00

Variance

$

20,816.52

(40,346.40) 40,897.12 31,394.88 (3,537.00) (1,649.51) (5,179.91) 617.97 (16,040.81) 2,500.56 (28,186.78)

(217,042.35)

$

125,852.96 1,326.18 27,596.88 780.00 0.00 3,247.68 20,533.50 (1,207.49) 1,848.00 (2,464.88)

(61,162.92)

$

51,659.87

74,193.09

$

$

(760.00) 0.00 0.00 0.00 0.00 (9.98) 1,083.72 2,614.02 (609.00) 2,000.00

% Budget

$

92.05

(82.07) 66.45 58.94 0.00 (181.48) (173.00) 97.20 (259.41) 88.84 0.00

(347.54)

$

128.06 98.27 43.25 56.67 0.00 64.31 62.67 (123.15) 80.71 (103.56)

(152.97)

$

80.12

201.47

$

$

(87.33) 0.00 0.00 0.00 0.00 0.00 48.39 4.94 (2,063.52) 0.00

City of Craig Revenue and Expense MTD and YTD February 28, 2018

Total Expenditures Excess Revenue Over (Under) Expenditures

$

M-T-D Actual

283.05 159.35

$

Y-T-D Actual

1,802.24 3,437.76

$

Y-T-D Encumbrance

0.00 0.00

$

6,881.00

Y-T-D Budget

1,802.24 $

(881.00)

Total

3,437.76

$

Variance

5,078.76

(5,838.76)

$

% Budget

26.19

390.21

City Of Craig Memorandum To: Mayor O’Connor, and Craig City Council From: Jessica Holloway, Aquatic Manager RE: March Report Date: March 28, 2018

We have been busy! And will continue to stay busy up until the last day of school. School swim lessons have been entertaining to say the least this year. I tried a different schedule with Klawock School in order to accommodate the Craig School 6th grade P.E. Normally I would schedule each grade for two weeks strait. This year we did only Monday and Wed. The Craig 6th grade has P.E Tuesdays and Thursdays. Cancelling them is normally not an issue but there are so many 6th grades this year that the school separated them into two groups. Each getting a semester of swim P.E. I was trying to keep the school in there P.E. class. SO far it seems that it has worked. We have had motor issues with the big pool this week. Doug and I currently working on trouble shooting what the issue is but right now it is still up in the air. The lap pool was closed on Thursday March 29th because of flooding in the pump pit. Our annual Easter Egg Swim is still currently planned to happen on Saturday the 31st . In the event that the pool is not up and running we will reschedule it . I have finished the High School Lifeguarding course. There were some bumps along the way but I think all in all it was successful. In my budget paperwork I presented a rental rate change that I would like to be approved. If you have any questions please feel free to e mail me or call . [email protected] or 826-2794

City of Craig Memorandum Date: March 29, 2018 To: Mayor O’Connor and Craig City Council From: Kassi Mackie, City Clerk Re: Clerk’s Report Safety The Premium Credit Application is due the end of April, so my primary focus will be getting information from all the departments to include. This provides the city a large credit on insurance and is a benefit to employees as well. Newsletter There will be a newsletter mailing the middle of April. This newsletter will include admin updates and department projects/schedules for the summer, as well as information on Clean-up week and the pool closure. Please let me know if you have an item that should be included. Elections Would you believe that it is time to start thinking about Elections again? I am working with Karen Coffey, Election Guru to find new election workers for the Primary and General, and Municipal Elections. Training will be provided via videoconference with the State of Alaska Division of Elections in July. Next Meeting is set for April 19th.

Travel Personal Leave- April 02-15 Training- June 11-15

CITY OF CRAIG MEMORANDUM To: From: Date: RE: 1.

2.

3.

4.

5.

Craig Mayor and City Council Brian Templin, City Planner March 28, 2018 Planning Department Staff Report – April 2018 Access Road on Tract P, USS 2327. The city council approved a preferred alternative at the December 7, 2017 meeting. Staff has reviewed a 100% design for the project and has made last comments and questions to CTA staff. Staff is waiting on CTA for discussions regarding construction. Sidewalk Development. CTA has been working on a project to provide funding for design and construction of pedestrian improvements (sidewalks) on several streets in Craig. CTA has submitted draft designs for city staff to review. Staff will continue to work with CTA on the project. Leases a. Richard Trojan, Portion of Tract H, ATS 1410/Tract P, USS2327. Richard Trojan has applied to lease a portion of upland and a portion of tideland adjacent to the public works shop. Recently I met with a surveyor who is preparing a drawing and staking out the potential lease location. Richard has had an appraisal completed on the property. I will continue to work with Richard as the drawing is completed and bring final terms of a lease to the council for approval. b. JT Brown Industrial Park. Most of the leases at the industrial park are up for renewal or have expired and require new leases. I have given Horan and Company a notice to proceed to provide new appraisals for the lots. I will be completing all required public notices and will bring all necessary approvals to the council before starting negotiations on the leases. When all approvals and the appraisals are complete I will work with each lessee on terms of renewed or new leases. c. Craig Seaplane Facility. New/renewed leases are required for both of the occupants of the seaplane facility. I have asked Horan and Company to begin the process of appraising the property. I will be completing all required public notices and will bring all necessary approvals to the council before starting negotiations on the leases. When all approvals and the appraisals are complete I will work with each lessee on terms of renewed or new leases. Volunteer Firefighter Assistance Grant. The city was notified that it was awarded $7,500 through the State of Alaska DNR/Division of Forestry for firefighting equipment. The grant will be used to purchase some self contained breathing apparatus equipment and gas detectors. The city will provide a match of about 15%. Marijuana Retail Establishments. Staff is continuing to monitor the progress of the applications to the state for the two conditional permits that have been issued for commercial marijuana retail establishments. At this time the permit for Thee Treasure Chest LLC (Kit Kraft and John Wright) has been initiated and is being reviewed for completeness by the marijuana control office staff. Jaqie

Weatherbee has not initiated an application with the state at this time. Staff will continue to monitor the state website for progress on these applications. 6. Craig to determine if any change in assessment values is warranted. 7. Travel and leave schedule. I will be attending the State of Alaska Spring Preparedness conference in Anchorage from April 9th – 14th. Mayor O’Connor, Chief RJ Ely and Gary Lawton (local Red Cross volunteer) will also be attending the conference. All travel for the conference is either state sponsored or grant funded. I will be heading to Sitka April 24th – 26th to attend a regional Tsunami Operations Workshop sponsored by the State of Alaska. This travel is being funded by the State of Alaska.

Submitted by Kimberly Baxter

Craig Public Library 2018

3/1/18-3/26/18 Volunteer Hours: 66 Patron Visits: 1295 Circulation: 2547 Computer Usage: 341 Tests Proctored: 2 Meetings: 9 OWL Video Conferences: 0 Alaska Digital Library Usage: 81 Story Times: 9, attendance: 159 Library Programs:

• • • • • • • • •

Every other Wednesday, 10:00 am, story time with Klawock Head Start. Every Thursday, 10:00 am, story time with Craig Head Start. Every Friday, 10:00 am, preschool story time. Dolly Parton Imagination Library, continuous registrations. April 3rd-5th, 9:00-12:00- State Testing for IDEA Homeschool Program. April 4th, 1:00-2:00– OWL video conference Owls from the Inside Out Craig Elementary 3rd grade. April 7th, 9:30am- Strategic Planning meeting. April 27th VISTA Volunteer Meagan Harris’ last day. April 28th, 10:00 am - Book Club. Title: Driving Mr. Albert.

Ballard Hadman Painting: Author Mary Ida Henrikson presented the Library with an illustration from the estate of Ballard Hadman, author of As the Sailor Loves the Sea. The oil painting is titled Age of Reason, named for the boat in the picture. It was painted in 1944. VISTA Volunteer Meagan Harris Meagan will be completing her term of service for the Library on April 27th. Meagan has been a valuable asset for the Library. She has worked on strategic planning, program evaluation tools, expanding early learning opportunities, grant writing, and assisted with volunteer outreach. She will be missed. Please stop by for a treat and to wish her well on April 27th, 10:00-5:00.

CITY OF CRAIG MEMORANDUM Date: March 29, 2018 To: Honorable Tim O’Connor, Craig City Council Fr: RJ Ely, Police Chief Re:

Staff Report

/

March 2018

ACTIVITY Activity for February 23, 2018 through March 28, 2018. Dispatch Center took the following amount of calls for service: Craig Klawock AST

918 245 14

DEPARTMENT OF MOTOR VEHICLES Picking up, with onset of summer approaching. Drop offs are still utilized daily. DISPATCHER(S) Arletha Melton has resigned, accepted position with Island Air Express. She had close to seven years with the department and will be missed. Rebecca “Becky” Bateman has moved to dayshift and has started DMV Training. She will also go through TWIC / Hazmat Prints / TSA Training. Rebecca Glandon, part time – fill in dispatcher will be covering shifts, until Melton’s position can be refilled. OFFICER(S) Ofc. Nunnally has completed F.T.O. and is covering shifts solo. OTHER Sometime in April, Crossmatch should arrive to complete the new Digital Fingerprinting System. Once completed, it will replace our older system. One of the departments older radio Consolette quit working. Thanks to Chaundell Piburn, EMS for securing grant last year, that allows for replacing this Consolette. In April, ProComm should arrive to install the new. Electronic Monitoring is up and running and being used currently. Officers attending 4 hours of DUI FST’s (Field Sobriety Testing), APSC Certified Training; which was held locally here on POW.

I.

II.

III.

IV. V.

VI.

Public works Report

Streets and Alleys: a. Continue brushing and grubbing in listed areas in City limits on 2018 brushing and grubbing list as required b. Pot hole repairs as required c. Culvert work/ repair as required on PSN Road d. Continued brushing and grubbing around valves and air eliminators on Port Saint Nicholas Road in preparation for brushing and grubbing bid. e. Pre-Bid conference scheduled for the 28th of March at 10:00am. f. Sealed bids for grubbing and brushing of the Port Saint Nicholas Road will be received by the City of Craig until 3:00 pm on April 2nd, 2018. Sewer: a. Daily and Monthly General maintenance and sampling at the wastewater treatment plant as required. b. Floor drain system piping scheduled to be repaired in the next month. Water: a. Daily and Monthly General maintenance and sampling at the water treatment plant as required. b. Continue clean up and prep work for council walk thru scheduled for beginning of May. c. Aluminum Sulfate pump is ready to release for fabrication from Charles P. Crowley Company as of 03.22.18. Lead time is approximately 8 weeks. d. Meeting with SSRAA on the 22nd to discuss maximum process water available to the hatchery. Based upon group discussion, it was determined that 1200 gpm would be sufficient for processing without going above maximum flow rate of 1800 gpm through the pressure reducing valve. e. Water main valve and fire hydrant exercising and flushing to begin the first week of May. Tentatively Equipment: 450c dozer back to the PW shop from the Klawock landfill. Service to be performed. Solid Waste: a. Weekly pick-up process as required. Additional route added on the afternoons of Fridays for decorative, and parks trash cans to be picked-up. b. Annual spring clean-up scheduled for the week of May 7th. Requests:

Parks & Public Facilities

3/30/2018

Staff Report – March 2018 To:

Craig Mayor and City Council

From: Douglas Ward

We continue to address all day to day issues that arise, in a timely manner. Fire alarm and sprinkler inspections were completed. Fire extinguisher inspections will be done in June 2018. Projects completed: • • • • • •

Cut down alders along West side of walking trail between Elementary and Aquatic center. Replace main pool pump motor. Replace 5 way valve on spa filter. Repair drinking fountain at city gym. Install cameras and light at burn pit. Repair AHU3 supply air motor.

. Projects currently in progress: - Installation of security cameras throughout Harbor Facilities. - Repair of upper fascia on Seaplane building. First section completed 1-25-18.

Work Orders Completed Since Last Report:

Parks & Public Facilities

3/30/2018

CITY OF CRAIG

Year to Date -0.83 -0.94

Latest 1 Year 8.57 8.03

Inception to Date 5.59 5.21

10,292,939

0 -2,658 -342,626 6,119 0

10,632,103

Account Statement - Period Ending February 28, 2018

ACCOUNT ACTIVITY Portfolio Value on 01-31-18 Contributions Withdrawals Change in Market Value Interest Dividends Portfolio Value on 02-28-18

Current Quarter -0.83 -0.94

Current Account Benchmark: Equity Blend

INVESTMENT PERFORMANCE 10.00

8.00

6.00

4.00

2.00

0.00

-2.00

-4.00

Current Month -3.17 -3.09

Clients are encouraged to compare this report with the official statement from their custodian.

Performance is Annualized for Periods Greater than One Year

Portfolio Benchmark

Percent Total Return (Gross)

MANAGEMENT TEAM

Amber Frizzell, AIF® [email protected]

Bill Lierman, CFA®

Client Relationship Manager:

Your Portfolio Manager:

907/272 -7575

Fixed Income 33%

Contact Phone Number:

Real Estate 8%

PORTFOLIO COMPOSITION

Int'l 13%

US Md Cap 6%

US Lg Cap 40%

Alaska Permanent Capital Management Co.

PORTFOLIO SUMMARY AND TARGET CITY OF CRAIG February 28, 2018

Asset Class & Target FIXED INCOME (34%) US Fixed Income (34.0%) Cash (0.0%) Subtotal:

EQUITY (66%) US Large Cap (40.0%) US Mid Cap (6.0%) Developed International Equity (10.0%) Real Estate (10.0%) Subtotal:

TOTAL PORTFOLIO

Market Value

% Assets

Range

3,395,738

33.0

20% to 45%

32,965

0.3

na

3,428,703

33.3

4,081,541

39.7

30% to 50%

610,656

5.9

0% to 10%

1,337,681

13.0

5% to 15%

834,356

8.1

5% to 15%

6,864,235

66.7

10,292,939

100

Quantity

5,643

FNMA & FHLMC FHLMC POOL G14203 4.000% Due 04-01-26 Accrued Interest

Security

PORTFOLIO APPRAISAL February 28, 2018

CITY OF CRAIG

101.83

102.56

96.28

99.92

109.20

99.61

100.48

53,016

50,917

51,279

48,141

49,962

54,602

99,608

50,239

32,965

5,901

94.62

101.72

98.62

99.37

95.82

97.58

104.23

99.28

99.75

50,998

47,312

50,859

49,310

49,686

47,908

48,791

52,117

99,278

49,874

32,965

19 5,879

5,860

0.49

0.50

0.46

0.49

0.48

0.48

0.47

0.47

0.51

0.96

0.48

0.32

0.00 0.06

0.06

Pct. Assets

1,650

1,800

1,937

1,100

1,812

1,425

1,437

975

1,125

2,187

2,375

1,050

226

Annual Income

812

788

705

161

46

383

182

663

487

362

911

712

128

3.80

3.47

3.57

3.55

3.50

3.28

3.27

3.16

3.04

3.07

3.05

2.93

2.81

2.39

Yield Accrued to Interest Maturity

106.03

48,916

102.00

50,145

0.48

1,950

152

3.53

Price

97.83

52,590

100.29

49,232

0.50

1,825

472

3.66

Total Average Cost

105.18

52,732

98.46

51,422

0.48

1,250

508

Average Cost

105.46

49,941

102.84

49,491

0.45

1,550

19

1.43

99.88

53,978

98.98

46,397

0.46

19

107.96

51,506

92.79

47,840

103.84

103.01

48,223

95.68

5,901

96.45

50,039

104.56

100.08

Market Value

Alaska Permanent Capital Management Co.

CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT

CASH AND EQUIVALENTS

50,000

TOYOTA MOTOR CREDIT CORP 2.100% Due 01-17-19 HSBC USA INC 2.375% Due 11-13-19 NBC UNIVERSAL MEDIA LLC 4.375% Due 04-01-21 AMERICAN EXPRESS CREDIT 2.250% Due 05-05-21 GILEAD SCIENCES INC 1.950% Due 03-01-22 UNITEDHEALTH GROUP INC 2.875% Due 03-15-22 COMCAST CORP 2.850% Due 01-15-23 AFLAC INC 3.625% Due 06-15-23 BANK OF NEW YORK MELLON 2.200% Due 08-16-23 JPMORGAN CHASE & CO 3.875% Due 02-01-24 METLIFE INC 3.600% Due 04-10-24 WELLS FARGO & COMPANY 3.300% Due 09-09-24 APPLIED MATERIALS INC 3.900% Due 10-01-25 ANHEUSER-BUSCH INBEV FIN 3.650% Due 02-01-26 TARGET CORP 2.500% Due 04-15-26 LOWE'S COS INC 3.100% Due 05-03-27

CORPORATE BONDS 100,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000 50,000

1

Quantity

15,025

Accrued Interest

SPDR S&P 500 ETF

Security

DOMESTIC LARGE CAP EQUITY FUNDS/ETF

3,275

ISHARES CORE S&P MIDCAP 400 ETF

DOMESTIC MID CAP EQUITY FUNDS/ETF

20,225

ISHARES ETF CORE MSCI EAFE

INTERNATIONAL EQUITY FUNDS/ETF

11,375

VANGUARD REIT ETF

REAL ESTATE U.S. TREASURY 200,000 US TREASURY NOTES 1.500% Due 12-31-18 50,000 US TREASURY NOTES 1.500% Due 10-31-19 225,000 US TREASURY NOTES 1.250% Due 10-31-19 100,000 US TREASURY NOTES 3.500% Due 05-15-20 150,000 US TREASURY NOTES 1.750% Due 10-31-20 175,000 US TREASURY NOTES 1.875% Due 12-15-20 100,000 US TREASURY NOTES 2.125% Due 08-15-21 75,000 US TREASURY NOTES 2.000% Due 10-31-21 100,000 US TREASURY NOTES 2.000% Due 11-15-21 150,000 US TREASURY NOTES 1.625% Due 11-15-22 125,000 US TREASURY NOTES 2.500% Due 08-15-23 200,000 US TREASURY NOTES 1.375% Due 08-31-23 100,000 US TREASURY NOTES 2.375% Due 08-15-24 100,000 US TREASURY NOTES 2.000% Due 08-15-25

Alaska Permanent Capital Management Co.

PORTFOLIO APPRAISAL February 28, 2018

CITY OF CRAIG

99.91

104.04

99.42

99.40

100.64

61.15

56.65

96.95

141.17

173,549

149,866

104,039

223,689

49,701

201,281

695,525

1,145,800

317,517

2,121,026

98.72

98.59

98.34

102.52

98.40

98.82

99.53

73.35

66.14

186.46

271.65

73,576

98,719

172,532

147,516

102,523

221,404

49,408

199,070

834,356

1,337,681

610,656

4,081,541

7,475 848,138

0.95

0.71

0.96

1.68

1.43

1.00

2.15

0.48

1.93

8.11

13.00

5.93

39.65

0.07 8.24

2,437

2,000

1,500

2,125

3,281

2,625

3,500

2,812

750

3,000

NA

NA

NA

NA

121

714

586

503

82

685

877

1,025

940

251

503

2.71

2.70

2.63

2.53

2.54

2.51

2.40

2.39

2.32

2.23

2.23

2.06

Yield Accrued to Interest Maturity

99.17

99,291

98.10

98,141

1.39

3,125

7

2.78

Annual Income

99.29

74,943

98.14

143,332

1.20

2,750

92

2.83

Pct. Assets

99.92

99,762

95.55

123,750

1.81

2,375

77

Market Value

99.76

146,686

99.00

186,476

0.95

2,000

Price

97.79

123,590

93.24

97,613

0.92

Total Average Cost

98.87

199,844

97.61

94,453

Average Cost

99.92

100,227

94.45

7,475

100.23

98,807

865,693

98.81

2

Quantity 100,000 US TREASURY NOTES 1.625% Due 05-15-26 150,000 US TREASURY NOTES 2.000% Due 11-15-26 100,000 US TREASURY NOTES 2.250% Due 11-15-27 Accrued Interest

AGENCIES

Security

PORTFOLIO APPRAISAL February 28, 2018

CITY OF CRAIG

90,988

1.36

0.88

Pct. Assets

2,250

3,000

1,625

Annual Income

659

878

476

2.89

2.88

2.86

Yield Accrued to Interest Maturity

90.99

139,875

0.92

Price

101,055

93.25

94,609

Total Average Cost

101.05 145,717

94.61

Average Cost

97.14 95,304

99.73

101.41

99,865

99,730

101,410

98.31

98.01

101.73

98,307

98,008

101,726

8,476 2,142,462

0.96

0.95

0.99

0.08 20.81

2,000

1,700

3,750

1,005

594

718

1,604

3.28

2.38

2.50

2.12

19,892

3,922

8,476

99.86

2,850

77,132

0.95

100

0.04 3.88

97,296 3,922 399,259

97.30

10,292,939

100,000

401,005

100.00

7,772,783

2,187,351

95.30

Market Value

Alaska Permanent Capital Management Co.

100,000 FHLMC 3.750% Due 03-27-19 100,000 FHLMC 1.700% Due 09-29-20 100,000 FEDERAL HOME LOAN BANK - STEP UP 2.000% Due 11-14-22 100,000 FEDERAL FARM CREDIT BANK 2.850% Due 04-24-25 Accrued Interest

TOTAL PORTFOLIO

3

Trade Date

Settle Date

PURCHASES

Alaska Permanent Capital Management Co.

CITY OF CRAIG

TRANSACTION SUMMARY

95,304.00

Trade Amount

100,000

123,735.62

968.75

912.50

10.90

2,573.23 2,573.23

0.00

0.00

219,039.62 219,039.62

125,000

Quantity

From 02-01-18 To 02-28-18

Security

U.S. TREASURY 02-05-18 02-06-18 US TREASURY NOTES 2.250% Due 11-15-27 02-05-18 02-06-18 US TREASURY NOTES 1.875% Due 12-15-20

TRANSFERS IN CASH AND EQUIVALENTS 02-28-18 FEDERATED GOVERNMENT OBLIGATION

DEPOSITS AND EXPENSES MANAGEMENT FEES 02-28-18 02-28-18 MANAGEMENT FEES

Interest CASH AND EQUIVALENTS 02-15-18 02-15-18 CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT CORPORATE BONDS 02-01-18 02-01-18 ANHEUSER-BUSCH INBEV FIN 3.650% Due 02-01-26 02-01-18 02-01-18 JPMORGAN CHASE & CO 3.875% Due 02-01-24

1

Trade Date

Settle Date

Alaska Permanent Capital Management Co.

CITY OF CRAIG

TRANSACTION SUMMARY

99.60

Quantity

From 02-01-18 To 02-28-18

Security

02-16-18 02-16-18 BANK OF NEW YORK MELLON 2.200% Due 08-16-23

FNMA & FHLMC 02-15-18 02-15-18 FHLMC POOL G14203 4.000% Due 04-01-26 U.S. TREASURY 02-15-18 02-15-18 US TREASURY NOTES 2.000% Due 08-15-25 02-15-18 02-15-18 US TREASURY NOTES 2.125% Due 08-15-21 02-15-18 02-15-18 US TREASURY NOTES 2.375% Due 08-15-24 02-15-18 02-15-18 US TREASURY NOTES 2.500% Due 08-15-23 02-28-18 02-28-18 US TREASURY NOTES 1.375% Due 08-31-23

PRINCIPAL PAYDOWNS FNMA & FHLMC 02-15-18 02-15-18 FHLMC POOL G14203 4.000% Due 04-01-26

Purchased Accrued Interest U.S. TREASURY 02-05-18 02-06-18 US TREASURY NOTES 2.250% Due 11-15-27

2

Trade Amount 550.00

2,431.25

19.14

1,000.00 1,062.50 1,187.50 1,562.50 1,375.00 6,187.50 8,648.79

99.60 99.60

515.88

Trade Date

Settle Date

Alaska Permanent Capital Management Co.

CITY OF CRAIG

TRANSACTION SUMMARY

Quantity

From 02-01-18 To 02-28-18

Security

02-05-18 02-06-18 US TREASURY NOTES 1.875% Due 12-15-20

Withdraw CASH AND EQUIVALENTS 02-23-18 02-23-18 CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT

3

Trade Amount 341.26 857.14 857.14

2,658.03

2,658.03

Date 02-15-18

Alaska Permanent Capital Management Co.

REALIZED GAINS AND LOSSES CITY OF CRAIG

99.60

0.00 -4.54 -4.54

-4.54

Gain Or Loss

104.14

99.60

Proceeds

104.14

Avg. Cost Basis

From 02-01-18 Through 02-28-18

Security

99.60 FHLMC POOL G14203 4.000% Due 04-01-26

Quantity

TOTAL GAINS TOTAL LOSSES

Trade Date

Settle Date

Tran Code

Alaska Permanent Capital Management Co.

CITY OF CRAIG

CASH LEDGER

02-15-18 02-15-18

02-15-18 02-15-18

02-15-18 02-15-18

02-15-18 02-15-18

02-15-18 02-15-18

02-05-18 02-06-18

02-05-18 02-06-18

02-05-18 02-06-18

02-05-18 02-06-18

02-01-18 02-01-18

dp

dp

dp

dp

dp

dp

wd

wd

wd

wd

dp

Interest

Interest

Interest

Interest

Interest

Interest

Paydown

Accrued Interest

Purchase

Accrued Interest

Purchase

Interest

ANHEUSER-BUSCH INBEV FIN 3.650% Due 02-01-26 JPMORGAN CHASE & CO 3.875% Due 02-01-24 US TREASURY NOTES 2.250% Due 11-15-27 US TREASURY NOTES 2.250% Due 11-15-27 US TREASURY NOTES 1.875% Due 12-15-20 US TREASURY NOTES 1.875% Due 12-15-20 FHLMC POOL G14203 4.000% Due 04-01-26 FHLMC POOL G14203 4.000% Due 04-01-26 US TREASURY NOTES 2.000% Due 08-15-25 US TREASURY NOTES 2.125% Due 08-15-21 US TREASURY NOTES 2.375% Due 08-15-24 US TREASURY NOTES 2.500% Due 08-15-23 CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT

Security

From 02-01-18 To 02-28-18

Activity

02-15-18 02-15-18

dp

CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT 02-01-18 Beginning Balance 02-01-18 02-01-18 dp Interest

02-15-18 02-15-18

1

Amount

246,771.08 912.50

968.75

-95,304.00

-515.88

-123,735.62

-341.26

99.60

19.14

1,000.00

1,062.50

1,187.50

1,562.50

10.90

Tran Code

Alaska Permanent Capital Management Co.

CITY OF CRAIG

CASH LEDGER

to Portfolio

BANK OF NEW YORK MELLON 2.200% Due 08-16-23 from Portfolio US TREASURY NOTES 1.375% Due 08-31-23

Security

From 02-01-18 To 02-28-18

Activity Interest

Settle Date dp Withdrawal Interest

Trade Date 02-16-18 02-16-18 wd dp Ending Balance

02-23-18 02-23-18 02-28-18 02-28-18 02-28-18

FEDERATED GOVERNMENT OBLIGATION 02-01-18 Beginning Balance 02-28-18 02-28-18 li Addition 02-28-18 Ending Balance

2

Amount

550.00

-2,658.03 1,375.00

32,964.68

0.00 0.00 0.00

CITY OF CRAIG - SCHOOL FUNDS

Year to Date 0.13 0.22

Latest 1 Year N/A N/A

Inception to Date 0.23 0.41

2,004,596

0 0 -363 1,480 0

2,003,478

Account Statement - Period Ending February 28, 2018

ACCOUNT ACTIVITY Portfolio Value on 01-31-18 Contributions Withdrawals Change in Market Value Interest Dividends Portfolio Value on 02-28-18

Current Quarter 0.13 0.22

Current Account Benchmark: T-Bill shown for reference

INVESTMENT PERFORMANCE

0.45

0.40

0.35

0.30

0.25

0.20

0.15

0.10

0.05

0.00

Current Month 0.06 0.11

Performance is Annualized for Periods Greater than One Year

Portfolio Benchmark

Clients are encouraged to compare this report with the official statement from their custodian.

Percent Total Return (Gross)

MANAGEMENT TEAM

Bill LIerman, CFA®

Amber Frizzell, AIF® [email protected]

Your Portfolio Manager:

907/272-7575

Client Relationship Manager:

Contact Phone Number:

PORTFOLIO COMPOSITION Cash and TBills 1%

US Treas 99%

Fixed Income Portfolio Statistics

Average Quality: AAA Yield to Maturity: 1.81% Average Maturity: 0.61 Yrs

Quantity CASH AND EQUIVALENTS

Security

PORTFOLIO APPRAISAL February 28, 2018

CITY OF CRAIG - SCHOOL FUNDS

0.54

5,500

810

2,537

2.07

1.73

1.26

Yield Accrued to Interest Maturity

10,837

27.43

3,881

769

Annual Income

549,939

17.18

6,187

Pct. Assets

99.99

344,382

27.21

Price

549,564

99.82

545,512

Total Average Cost

99.92

344,607

99.18

Average Cost

99.89

547,415

10,837

99.53

2.13

7,104

7,104

2,987

24,506

8,937

100

0.35 99.46

27.28 7,104 1,993,758

546,820

2,004,596

99.42

1,988,521

546,936

1,999,358

99.44

Market Value

Alaska Permanent Capital Management Co.

CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT

U.S. TREASURY 550,000 US TREASURY NOTES 1.000% Due 03-15-18 345,000 US TREASURY NOTES 1.125% Due 06-15-18 550,000 US TREASURY NOTES 1.125% Due 01-15-19 550,000 US TREASURY NOTES 1.625% Due 04-30-19 Accrued Interest

TOTAL PORTFOLIO

Trade Date

Settle Date

PURCHASES

Alaska Permanent Capital Management Co.

TRANSACTION SUMMARY

550,000

Quantity

From 02-01-18 To 02-28-18

CITY OF CRAIG - SCHOOL FUNDS

Security

U.S. TREASURY 02-16-18 02-20-18 US TREASURY NOTES 1.625% Due 04-30-19

Interest CASH AND EQUIVALENTS 02-15-18 02-15-18 CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT

Purchased Accrued Interest U.S. TREASURY 02-16-18 02-20-18 US TREASURY NOTES 1.625% Due 04-30-19

Trade Amount

546,935.81 546,935.81

55.30

55.30

2,765.19 2,765.19

Date

Quantity

TOTAL GAINS TOTAL LOSSES

Alaska Permanent Capital Management Co.

0.00

Proceeds

REALIZED GAINS AND LOSSES

Avg. Cost Basis

From 02-01-18 Through 02-28-18

CITY OF CRAIG - SCHOOL FUNDS

Security

0.00

Gain Or Loss

0.00 0.00 0.00

Trade Date

Settle Date

Tran Code

Alaska Permanent Capital Management Co.

CASH LEDGER

Purchase

Security

From 02-01-18 To 02-28-18

CITY OF CRAIG - SCHOOL FUNDS

Activity

wd Accrued Interest

CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT US TREASURY NOTES 1.625% Due 04-30-19 US TREASURY NOTES 1.625% Due 04-30-19

CHARLES SCHWAB LIQUID BANK DEPOSIT ACCOUNT 02-01-18 Beginning Balance 02-15-18 02-15-18 dp Interest 02-16-18 02-20-18 wd Ending Balance

02-16-18 02-20-18 02-28-18

Amount

560,482.80 55.30

-546,935.81

-2,765.19

10,837.10

H ORAN & C OMPANY REAL ESTATE APPRAISERS/CONSULTANTS C HARLES E. H ORAN MAI / W ILLIAM G. F ERGUSON , J OSHUA C. H ORAN / S LATER F ERGUSON 403 L IN C O LN S TR E E T , S U ITE 210, S ITK A , A LA S K A 99835 PHONE NUMBER: (907)747-6666

FAX NUMBER: (907)747-7417

[email protected]

March 12, 2018 Jon Bolling, City Manager Joyce Mason, City Treasurer City of Craig P.O. Box 725 Craig, AK 99921

Sent via email: [email protected] [email protected]

RE: 2018 Assessment Fieldwork Dear Mr. Bolling and Ms. Mason: We have completed the fieldwork and made adjustments to the real property assessed values for the 2018 assessment roll based on our review of the real property records and market trending information. There’s little movement in the commercial or industrial real estate segment. Residential values are remaining strong and appear to be on the rise. Trailers remain a mixed bag, but overall it appears their values are diminishing as inventory continues to age. Land There are few residential land sales other than the bids received on the city’s Ptarmigan Subdivision at the end of January 2017. One residential sale on Port Saint Nick Road shows we are over 10% low. A consistent trend with the 2017 sales suggests overall residential values may be somewhat low. Sales of waterfront home suggests that we are especially low in this area. As a result of the statistical observations, we raised the land values in the following neighborhoods 5%: Residential Uplands, Harbor Tidelands, Residential Waterfront East Craig, Residential Tidelands West Craig and other residential areas. We raised the waterfront lots in the west Craig Block 204 & 205 by 10%. As a result the assessment to sales ratio for lands is 103%. In other words, statistically it appears the land is a little overvalued. However, considering the lack of recent sales and the strength of the residential market, we do not believe this is the case. Residential Houses The residential market remains active with a fair amount of activity in new construction and upgrades. We confirmed nine market sales in 2016, which on average sold for about 5% over the 2017 assessment. Of the nine market sales confirmed for the 2017 year, it appears on average that we are under assessed by 16%. In our opinion, this suggests the market is increasing. We increased the land and improvements by a conservative 5% for

the 2018 assessed values. After this adjustment, the 2018 values indicate we are about 10% low as compared to the 2017 sales. When adding the 2016 sales into the statistical inventory, however, it shows the assessments are 100% of the average market sales. We will continue to watch this number, and I suspect residential values may experience another increase next year. Mobile Homes The mobile home market sales continue to be statistically inconsistent relative to the prices paid. One consistency, however, is that it appears they are over-assessed. Of the 10 sales observed over the last two years, three sold over assessment and 7 sold significantly under assessment. On average, assessments were 36% high based on the four 2016 sales and 10% high based on the six 2017 sales. While it appears the assessments are on average closer to the sales prices, as time moves forward they are still significantly higher. Therefore, we decreased mobile home values 10% for those units assessed for over $3,000. After making these trending changes to the 2017 values, the 2018 assessments statistically indicate an assessment to sales ratio of 115%. We will continue to watch this trend. Please see the attached statistical summaries of our assessment to sales ratio study which will accompany the State Assessor’s Alaska Taxable Report later in the year. There was one commercial building sale which sold for 75 % of the assessed value. This was not sufficient to reflect an overall change in the market. We will continue monitoring this market segment. It appears that while the overall island economy is stable, retail sales and the commercial fishing industry remain stagnant in Craig. Therefore, no adjustments were made for commercial or industrial properties. The Field Work There are several new residences in Craig this year. We looked at new properties which had building permits for additions and deletions and made appropriate corrections to the assessment records. Possessory Interests were recalculated for the new tax year. We did not add any new Possessory Interest. Value Changes This year’s review of the assessment records resulted in value increases. The 2017 assessment roll of taxable properties compared to our 2018 assessments are contrasted in the table below. LAND IMPROVEMENTS TOTAL

2017 $36,969,000 $74,141,900 $111,112,917

2018 DIFFERENCE $38,094,300 $1,125,300 $77,805,500 $3,663,600 $115,901,818 $4,788,901

Our new values do not consider senior citizen or other exemptions which may be calculated later. 2

Henry will coordinate getting the 2018 revised MARS records to Joyce for downloading the 2018 Assessment Roll. Please feel free to encourage staff to ask questions so we may continually improve the functionality of MARS for the staff and the public. As you know Joshua Horan and Henry Robinson did the field work this year. Let us know if you have any questions or comments. Thank you once again for the opportunity to be of service. Sincerely,

Charles Horan, MAI Horan and Company, LLC Attachment Craig Sales Analysis for 2018; Land, Residential and Mobile Homes

3

TABLE 1 - 2018 LAND ASSESSMENT TO SALES RATIO ANALYSIS Parcel Number EC-211-090 EC-211-060 EC-211-070 EC-211-080 EC-211-100 EC-211-110 PS-401-080

Address Physical

Sale Date

Sale Price

100 Willow Ct. 602 Ptarmigan St. 103 Willow Ct. 102 Willow Ct. 700 Ptarmigan St. 702 Ptarmigan St. 9475 Port St. Nick Rd.

01/31/17 01/31/17 01/31/17 01/31/17 01/31/17 01/31/17 08/19/17

$60,000 $55,000 $50,000 $52,501 $60,001 $72,386 $202,000 $551,888

Assessed Land $61,600 $58,400 $55,600 $56,400 $63,400 $79,900 $191,900 $567,200

Assessment to Sales Ratio 103% 106% 111% 107% 106% 110% 95% 103%

TABLE 3 - 2018 MOBILE HOME ASSESSMENT TO SALES RATIO ANALYSIS CONTRASTING 2016 SALES AND 2017 SALES TO THE 2018 ASSESSMENT Parcel Sale Assessed Assessment Address Physical Sale Date Number Price Total to Sales Ratio PS-410-101 Shaan Seet 101 1/01/16 $3,000 $3,600 120% PS-410-736 Shaan Seet 736 7/01/16 $4,000 $5,300.00 133% WC-106-042 503 Beach Rd 3 7/05/16 $1,800 $2,000 111% WC-123-071 Harborview 0 6/06/16 $500 $2,200 440% PS-410-215 Shaan Seet 215 4/25/17 $17,000 $14,000 82% PS-410-319 Shaan Seet 319 4/19/17 $9,500 $15,600 164% PS-410-603 Shaan Seet 603 5/17/17 $17,500 $15,100 86% PS-410-718 Shaan Seet 718 1/18/17 $3,300 $5,900 179% PS-410-718 Shaan Seet 718 12/12/17 $5,000 $5,900 118% WC-123-071 Harborview 0 6/16/17 $750 $2,200 293% Year 2016 Year 2017 Combined Years

$9,300 $53,050 $62,350

$13,100 $58,700 $71,800

141% 111% 115%

4

1

Sale Date 2/25/16 5/06/16 9/14/16 2/01/16 12/05/16 05/27/16 07/27/16 11/11/16 03/22/16 10/26/17 03/17/17 12/30/16 05/31/17 06/27/17 05/19/17 12/11/17 01/10/18 07/18/17 Sale Price $260,000 $325,000 $195,000 $270,000 $325,000 $219,000 $228,500 $430,000 $175,000 $315,957 $485,000 $387,000 $355,000 $260,000 $185,000 $250,000 $377,045 $300,000 $2,427,500 $2,915,002 $5,342,502

Assessed Land $69,700 $76,300 $60,000 $60,700 $59,100 $53,000 $55,100 $54,900 $44,100 $55,200 $205,000 $136,700 $52,600 $32,500 $42,600 $41,500 $46,800 $38,500

Assessed Improv. $248,700 $301,700 $154,900 $216,500 $336,800 $154,600 $170,900 $395,100 $166,900 $241,500 $237,100 $206,100 $269,400 $235,500 $128,400 $193,100 $283,700 $203,100

Assessed Total $318,400 $378,000 $214,900 $277,200 $395,900 $207,600 $226,000 $450,000 $211,000 $296,700 $442,100 $342,800 $322,000 $268,000 $171,000 $234,600 $330,500 $241,600 $2,679,000 $2,649,300 $5,328,30

A/S* Ratio 122% 116% 110% 103% 122% 95% 99% 105% 121% 94% 91% 89% 91% 103% 92% 94% 88% 81% 110% 91% 100%

TABLE 2 - 2018 RESIDENTIAL ASSESSMENT TO SALES RATIO ANALYSIS CONTRAST AND 2016 SALES TO 2017 SALES 1 Parcel Address Physical Number EC-207-110 605 Oceanview Drive EC-208-020 708 Oceanview Drive EC-210-070 1205 Water Tower Road EC-212-020 1401 Kelsey Court EC-218-020 510 Thomas Court EC-218-040 508 Thomas Court EC-225-010 1611 Sunnahae Court WC-119-070 107 Main Street WC-131-080 807 Water Street EC-201-080 501 Hamilton Drive EC-204-040 1411 Hamilton Drive EC-205-030 1605 Hamilton Drive EC-210-040 101 Eagle Tree Court EC-218-070 505 Thomas Court EC-224-100 400 T & H Street WC-114-060 205 2nd Street WC-117-080 507 Spruce Street WC-127-042 406 3rd Street Year 2016 Year 2017 Combined Years *A/S = Assessment to Sales Ratio.

Note included in the 2017 sales are a 2016 sales occurred (12/30/16) one day before the new year and the 2018 sale occurred (1/10/18) 10 days after the new year.

CITY OF CRAIG MEMORANDUM To: From: Date: RE:

Craig City Council Jon Bolling, City Administrator February 9, 2017 Review of Proposed Ordinance regarding Port St. Nicholas Road Maintenance

Attached you will find two draft ordinances. One implements a fee to be collected from property owners along the Port St. Nicholas Road. The other implements a process for the city to regulate driveways inside and outside the Craig city limits. The draft documents are presented here for discussion, and not as the first reading of either ordinance. If the council is satisfied with the structure and terms of the ordinances, staff will schedule the documents for first reading at the council’s April 19 meeting. Port St. Nicholas Road Attached is a draft document that adds to Section 12.10 of the Craig Municipal Code, implementing a method to collect a fee from property owners at Port St. Nicholas to defray costs of maintaining the PSN Road. As the council is aware, it authorized city staff to begin an effort in October 2016 to determine methods available to the city to collect revenue from property owners at Port St. Nicholas to help offset the cost to the city to maintain the Port St. Nicholas Road. Since that time city staff met on several occasions with PSN residents, and I have provided the council with memos and staff reports summarizing those meetings. A summary of steps taken on this matter since October 2016 is below: 1. Met with PSN residents on the following dates: a. November 10, 2016 b. November 30, 2016 c. January 10, 2017 d. February 21, 2018 2. Developed, implemented, and made available results of an on-line survey seeking input from PSN residents on maintenance and financing or PSN Road maintenance. 3. Researched toll road options for the PSN Road. 4. Provided documentation to PSN residents regarding estimates of recent PSN Road maintenance costs, PSN Road ownership documentation, a copy of the PSN Road maintenance agreement with the State of Alaska, and information on low volume toll roads around the United States. Much of the discussion at the public meetings revolved around the nature of the city’s property interest in the PSN Road, the authority of the city to perform services outside the city limits and collect fees for those services, and the merits of setting up a toll system for PSN Road users, or implementation of a fee for a windshield sticker demonstrating the vehicle owner has paid the requisite road maintenance fee. I cannot say that any sort of consensus or agreement was reached on any of those topics, but I think the exchange of information between staff and PSN residents was useful.

Based on my reading of Alaska Statutes, the city may conduct road maintenance activities outside the city limits. Managing the use and operation of the PSN Road outside the city limits requires the adoption of what statute calls a regulation. The word “regulation” in this context means adoption of an ordinance. The attached draft ordinance includes the following terms: 1. a public process to adopt a maintenance fee 2. a mechanism to collect the maintenance fee from PSN property owners; 3. establishment of a report to track revenue and expenses related to PSN Road maintenance. As reported in my October 17, 2016 memo to the council on this subject, assessing and collecting a fee from PSN property owners to help meet the cost of maintaining the PSN Road will require no small amount of staff time to set up. The effort will require establishing an owner’s name and valid U.S. Mail address for each PSN lot, and setting up a repetitive billing account for those property owners for whom the city has no current account, name, or billing information. Staff estimates that there are about 185 lots in the subdivision between the city limits and the water treatment plant. The city already possesses some of the account information it would need, perhaps half. The rest would have to be compiled. Driveway Permitting The second of the two draft ordinances (adding section 12.03 to the municipal code) addresses driveway construction. I have concerns about the construction of some driveways at in and around Craig, and the impact those driveways may have on the city roads and utilities. The city has few mechanisms in place to oversee driveway construction to ensure that the public roads and utilities are not negatively adversely affected by driveway drainage or driveway structures. As drafted, the ordinance would apply both within the city limits, and outside the city’s municipal boundaries. In short, the ordinance provides a process to apply for a driveway permit when a driveway intersects a city street. Within the city limits, the existing building permit process applies the driveway standards. Outside the city limits, the proposed driveway permit process defined in the draft ordinance applies. Recommendation Review the attached documents and then provide direction to staff on what course to take regarding implementation of a PSN Road maintenance fee, and a permitting process for driveways.

CITY OF CRAIG ORDINANCE NO. _____ ADDING SECTION 12.10 TO THE CRAIG MUNICIPAL CODE PROVIDING FOR STREET MAINTENANCE AND CAPITAL IMPROVEMENTS ALONG THE PORT ST. NICHOLAS ROAD AND ESTABLISHING A FEE FOR MAINTENANCE AND IMPROVEMENTS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CRAIG, ALASKA: WHEREAS, the City of Craig provides maintenance and capital improvements to the Port St. Nicholas Road and to water services within the Port St. Nicholas Road, outside the Craig city limits; and, WHEREAS, the City of Craig is authorized to provide water services and provide facilities for utility services and streets outside its boundaries per Alaska Statutes 29.35.020, and may regulate their use and operation outside its boundaries to the extent that the jurisdiction in which they are located does not regulate them; and, WHEREAS, there is no jurisdictional entity within the Port St. Nicholas Road as defined in this ordinance that regulates facilities for water services and streets in the manner proposed in this ordinance; and, WHEREAS, the City of Craig has a property interest in the Port St. Nicholas Road and certain maintenance responsibilities related to the Port St. Nicholas Road; and, WHEREAS, maintenance, repair, and improvement of the Port St. Nicholas Road is a significant cost to the City of Craig; and WHEREAS, the installation of water service, water lines, and the maintenance and repair of water related infrastructure is a significant cost to the City of Craig; WHEREAS, the installation of a driveway or similar access from the Port St. Nicholas Road to any property intersecting with or abutting the Road could damage and/or otherwise interfere with the City of Craig’s maintenance of the Port St. Nicholas Road, water lines, infrastructure and services, at potentially considerable expense to the City of Craig to repair or replace; and WHEREAS, by adoption of this ordinance, the Craig City Council authorizes the delivery, outside of the city’s municipal boundaries, of street operation, repair, maintenance, construction and all other necessary street services and facilities as described in this ordinance; the council further authorizes the exercise of the powers necessary for the provision of those services. Section 1. Classification. This ordinance is of a general and permanent nature and the code sections adopted hereby shall become a part of the code of the City of Craig, Alaska.

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Section 2. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of this ordinance and the application to other persons or circumstances shall not be affected thereby. Section 3.

Effective Date.

This ordinance shall be effective July 1, 2018.

Section 4. Code.

Action. This ordinance establishes a new section at 12.10 of the Craig Municipal

12.10 Port St. Nicholas Road Maintenance and Improvement Fee - Extraterritorial 12.10.010 Road Maintenance and Improvement Fee A. The owner of record of any lot intersecting with the Port St. Nicholas Road, or any lot where the Port St. Nicholas Road is the primary or only means of overland motor vehicle access to a lot, shall pay to the City of Craig a street maintenance and improvement fee. B. Road maintenance and improvement fee bills shall be mailed to property owners of record on a regular basis. C. Each bill rendered shall be due when mailed. All bills not paid by the twentieth day of the month following the mailing shall be considered delinquent. D. At any time after the account becomes delinquent, a notice of delinquency may be sent to the owner. E. Upon delinquency, the city may lien the delinquent property per Section 1.20 of the Craig Municipal Code and seek to recover the delinquent fee and costs of collection by any manner provided by law. F. Section 12.10 applies to areas outside the municipality. 12.10.020 Setting of Fee The city council shall from time to time set, by resolution, the road maintenance and improvement fee. 12.10.030 Use of Fee Road maintenance and improvement fees collected will be appropriated from time to time by the city council to meet maintenance, repair, capital and operational costs of the Port St. Nicholas Road, utilities, and structures within the road. For the purposes of this subsection, the Port St. Nicholas Road includes the road as it is defined in 12.10.100, and the portion of the road that lies within the municipal boundaries of the City of Craig. 12.10.040 Plan of Work A. The Public Works Department of the city shall prepare an annual plan of work and budget estimating the work tasks and the capital and operational costs for the road, water utility and structures within the Port St. Nicholas Road. The annual plan of work may include street brushing, plowing, sanding, striping, surfacing, grading, excavation, repair and replacement of water main, valves, water meters, water service lines, culverts and drainage structures, repair and maintenance of asphalt and concrete, and all other costs reasonably related to operation, maintenance, and improvement of the road and water

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utility. For the purposes of this subsection, the Port St. Nicholas Road includes the area identified in 12.10.030. B. Upon request, the Public Works Department shall prepare a maintenance report. The report shall include a description of all capital and maintenance activities performed within the road corridor during the course of the prior calendar or fiscal year. The report shall also include an accounting of all fees collected and all expenses incurred during the reporting period. 12.10.050 Setting of Fee The City Council shall set the fee from time to time by resolution. 12.10.060 Driveway Permit Required The City of Craig may regulate the design, grade, retaining structure, angle of intersection, or any other driveway feature where the driveway intersects with or abuts the Port St. Nicholas Road. Any driveway established or that remains under construction after July 1, 2018 must apply for and obtain a City of Craig driveway permit. Where a driveway has been terminated for any reason, no person may modify city managed road to re-establish the driveway without the express written consent of the city. 12.10.070 Prohibition Applied to Delinquent Properties A new water service or driveway shall not be installed to any property where the fees required by this section are delinquent, or where a driveway permit has not been issued. 12.10.080 Notices to Owner Notices from the City of Craig to the owner of record will normally be given in writing and either mailed to or delivered to the owner’s last known address. Where conditions warrant and in emergencies, the city may notify the owner verbally by telephone or messenger. 12.10.090 Notices from Owner Notices from owners to the city may be given, in writing, at the office of the city clerk at Craig City Hall or to an authorized agent of the city. 12.10.100 Definition Except where otherwise defined in this section, “Port St. Nicholas Road” is defined as the 60 foot wide road corridor beginning at the intersection of the City of Craig municipal boundary with the Port St. Nicholas Road, and ending at Station 278+89.57, a point 29.57’ bearing S88°32’W of Point of Curvature No. 37 of the Port St. Nicholas Road, as shown on Sheet 11 of 14 of Plat 95-57, Ketchikan Recording District.

CITY OF CRAIG ORDINANCE NO. _____ ADDING SECTION 12.03 TO THE CRAIG MUNICIPAL CODE ESTABLISHING A PERMITTING PROCESS FOR CONSTRUCTION OF DRIVEWAYS INTERSECTING CITY STREETS AND EASEMENTS BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CRAIG, ALASKA: WHEREAS, the City of Craig provides maintenance and capital improvements to streets, easements, and other public access routes inside and outside the Craig municipal boundaries; and, WHEREAS, city owned or maintained streets, easements, and other public access routes inside and outside the Craig municipal boundaries typically include water, wastewater, and storm water utility lines; and, WHERERAS, driveways and approach roads intersecting city owned or city maintained streets, easements, and other public access routes must not preempt the safe and proper functioning of streets, easements, and other public access routes, and the water, wastewater and storm water utilities within those routes; and, WHEREAS, some city owned or maintained streets, easements, and other public access routes are located outside the Craig municipal boundaries; and, WHEREAS, the City of Craig is authorized to provide certain services outside its boundaries per Alaska Statutes 29.35.020, and may regulate their use and operation outside its boundaries to the extent that the jurisdiction in which they are located does not regulate them; and, WHEREAS, the City of Craig finds that establishing standards for the construction of driveways and approach roads intersecting city owned or maintained streets, easements, and other public access routes can provide for safe and efficient operation of public ways and utilities. Section 1. Classification. This ordinance is of a general and permanent nature and the code sections adopted hereby shall become a part of the code of the City of Craig, Alaska. Section 2. Severability. If any provision of this ordinance or its application to any person or circumstance is held invalid, the remainder of this ordinance and the application to other persons or circumstances shall not be affected thereby. Section 3.

Effective Date.

This ordinance shall be effective July 1, 2018.

Section 4. Code.

Action. This ordinance establishes a new section at 12.03 of the Craig Municipal

Driveway permit ordinance draft Page 2

12.03.010 - Permit Required. A. No person shall construct a driveway or approach road on a public right-of-way or public access easement owned by the City without first obtaining a Driveway Permit from the City, which permit shall be displayed on the job site. Any installation of driveways, approach roads, culverts and other structures placed on a public right-of-way or public access easement subject to this section shall be a type approved by the City. B. Per AS 29.35.020, this section also applies to driveways that access city maintained roads and easements outside the boundaries of the city. C. Property owner shall submit a completed permit application (on a form prescribed by the City), a site plan, and the required filing fee to the Craig Building Official. D. Site Plan shall at a minimum show: 1. The actual shape, location, and dimensions of the lot; 2. Location, shape and dimensions of proposed driveway/approach road and drainage structures; 3. Existing edge of all Rights-of-Way/Public Access Easements that abut the property and edge of improvements (drivable surface, curb and gutter, sidewalk, etc.) 4. Location and identification of all utility, public use and access easements, rightsof-way, alleys, streets, and roads on, adjacent to, or providing utilities or access to the site; 5. Major topographic features including but not limited to water bodies, drainage patterns, and slope elevations; special attention shall be given to proper site drainage so that the removal of surface waters will not adversely affect neighboring properties or the public road system; 6. Proposed traffic control (if necessary); 7. Location, design, and traffic circulation patterns of all driveways, entrances, offstreet parking areas, and designated pedestrian ways, sidewalks, and bicycle pathways; and 8. Dimensions showing the following distances: i. Distance from each edge of the proposed driveway/approach road to the side lines of the property ii. Distance from the edge of road/street improvements to the property line iii. Width of the proposed driveway/approach road iv. Percent slope of the proposed driveway v. Length and percent slope of the landing area adjacent to the edge of road improvements E. Cost of the permit shall be set by the Craig City Council by resolution. Permit cost may include reimbursement to the city for the cost of surveying to establish the edge of rightof-way or city owned public access easement as required.

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F. The issuance of a City of Craig Building Permit that includes the driveway improvements satisfies the requirement for a permit under this section. 12.03.020 - Protection of City Facilities. A. A permittee under this section shall construct and maintain a driveway or approach road in such a manner that the existing city streets and all of the street’s appurtenances or facilities, including drainage facilities, pipes, culverts, ditches, traffic control devices, pathways, and sidewalks are not impaired or endangered in any way by the construction or maintenance. B. A permittee under this section shall construct and maintain a driveway or approach road in such a manner that all utilities contained within the right-of-way or public access easement are not impaired or endangered in any way by the construction or maintenance. C. No retaining walls shall be constructed within city rights-of-way or city owned public access easements unless approved by the city. The city shall review the proximity of any proposed retaining walls to city appurtenances and buried utilities to ensure safe operation and maintenance of city appurtenances and utilities. Unless otherwise approved by the city, there shall be a minimum horizontal separation between the toe of any retaining wall and existing waterline equal to or greater twenty feet (20’). 12.03.030 - Ownership and Maintenance. A. A driveway or approach road constructed under a permit within a City right-of-way or City owned public access easement is the property of the City, but all cost and liability arising from the construction, operation, or maintenance of a driveway or approach road is at the sole expense of those lands served. The city is not obligated to change its maintenance practices to accommodate a driveway or approach road constructed under a permit, or to incur any additional expense removing snow berms or other obstructions from a driveway or approach road within a right-of-way resulting from the city’s activities. B. The burden and cost of maintaining a driveway or approach road within a City right-ofway or City owned public access easement is upon the lands served by a driveway or approach road. The City is not obligated to remove snow berms plowed into a driveway or approach road during its street snow removal activities. A permittee may not plow snow from a driveway or approach road onto a street, or interfere with drainage structures. 12.03.040 – City Road Construction. If a driveway or approach road that provides ingress to or egress from adjoining land is replaced during a project to construct or reconstruct a city street, the city, as a cost of construction, will, in its discretion, replace the driveway or approach road in a manner and location consistent with the driveway as it existed prior to construction or reconstruction of the city street.

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12.03.050 – Minimum Design Standards A. All points of access shall be constructed to provide for proper drainage of property and public streets. B. There shall be a maximum of two points of access to a public street for each 400 feet of lot frontage or fraction thereof along that street. There shall be only one point of access to a public street for lots with less than 100 feet of frontage along that street. C. No point of access shall be allowed within 25 feet of the right-of-way (or City owned public access easement) line of any public intersection. D. No access to a public street, right-of-way, or City owned access easement shall be installed or altered without an approved permit from the City. E. Where two driveways are provided for on lot frontage, the clear distance between the driveways shall not be less than 25 feet. F. No access onto major or collector streets (including the Port Saint Nicholas Road), as defined at Craig Municipal Code Section 18.11.003, shall be permitted that require vehicles to back directly onto the roadway. G. Cases requiring variances relative to the above provisions due to topographic limitations shall be heard and acted upon by the planning and zoning commission in accordance with Craig Municipal Code Section 18.06.

March 28, 2018 To: City Mayor and City Council From: Joyce Mason

Our auditor, Christine Harrington has completed the fiscal year 2017 financial audit. I have included a copy of the audit for your review. The net cash position increased this year by $72,706. The governmental fund continues to subsidize the enterprise fund as the governmental fund net position increased by $922,583 and the enterprise fund decreased by $849,877. The city had no reportable issues this year as to the financial reporting or the city operations. The best section and the easiest to understand, is the Management Discussion and Analysis section. This section summaries the activity for the year. If you have any questions as you review the audit please contact me.

Recommendation: A motion to accept the City of Craig fiscal year 2017 audit as presented by Christine Harrington, CPA.

CITY OF CRAIG MEMORANDUM To: From: Date: RE:

Craig City Council Jon Bolling, City Administrator March 29, 2018 Discussion on National Forest Land Uses

Attached you will find a draft letter commenting on S 1481, the Alaska Native Claims Settlement Act of 2017. At its March 15 meeting the council directed staff to prepare comments on the legislation. The attached letter identifies the sections of S 1481 most likely to result in additional land selections in Game Unit 2, which includes Prince of Wales Island, and the islands to the west. The text of the letter is based on input from the council from the March 15 meeting. Please review the attached letter, and be prepared to discuss its contents at the April 5 council meeting.

March 29, 2018

-DRAFT-

Senator ________________ United States Senate Washington, DC 20510 Dear Senator ______________: The City of Craig offers the following comments regarding S 1481, the Alaska Native claims Settlement Act of 2017. Several sections of the bill (Sections 5, 6, 7, 10, 11, 12, and 13) have the potential to result in additional land selections in the Prince of Wales Island area (for the purposes of our comments, we will use the Alaska Department of Fish and Game designation of Game Management Unit 2—or “Unit 2”—to refer to Prince of Wales Island and surrounding islands), reducing the amount of national forest lands in Unit 2. The city’s concerns regarding S 1481 are summarized below. 1. When land is selected or exchanged out of the national forest system to a recipient such as an ANCSA corporation or a state entity, the subject land loses its status under Title VIII of ANILCA. That change reduces the amount of land on POW managed for rural subsistence uses, and potentially also loss of the use of public roads, landings, and other features now available to subsistence users. 2. Prior conveyances away from the national forest have not included easements sufficient to assure continued access to longstanding recreation and subsistence sites, including access to rivers, lakes, campsites, trails, and other areas used by rural residents. 3. With regard to Native Allotment selection, the wholesale change to the qualifying criteria is very problematic. The allotment program has always required a specific historical tie to a discreet property as measured by regular use. The proposed change to the allotment program removes the requirement for a meaningful nexus, including customary use, frequency of the use, and area of property used, to a proposed allotment site. All three criteria are essential to a meaningful allotment program. 4. Unit 2 has been the focus of a number of new and large land selections over the past five years, most notably selections made by Sealaska and the Alaska Mental Health Trust. These selections have made federal land management decisions on the island difficult due to the changing ownership patterns on the forest. While the land selections broadly identified in S 1481 can take place in any number of areas in Alaska, the potential for the volume of additional land selections in Unit 2 resulting from S 1481 is both remarkable and troubling. The potential impact to Unit 2 is simply too great an amount of land selected in too short a period of time: too much, too fast.

The City of Craig asks that you to make modifications to the bill to address the concerns cited in this letter. Sincerely,