HomeMy WebLinkAbout2016-09-21 Council PacketKENAI CITY COUNCIL – REGULAR MEETING
SEPTEMBER 21, 2016 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
http://www.kenai.city
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-
controversial by the council and will be approved by one motion. There will be
no separate discussion of these items unless a council member so requests,
in which case the item will be removed from the consent agenda and
considered in its normal sequence on the agenda as part of the General
Orders.
B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes
per speaker)
C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3)
minutes per speaker; thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. Ordinance No. 2917-2016 – Amending Kenai Municipal Code Section
3.10.020 – Control and Confinement of Animals, to Require Cats in the City to
be Restrained at all Times. ..................................................................... Pg. 5
2. Ordinance No. 2918-2016 – Waiving Certain Lease Provisions Imposed by
Kenai Municipal Code Chapter 21.10 – Leasing of Airport Reserve Lands, and
Approving a Non-Standard Form of Lease for the Lease of Lot 5, FBO
Subdivision No. 8, According to Plat No. 2004-85, Located within the Airport
Reserve, to Soar International Ministries, Inc. ......................................... Pg. 9
3. Ordinance No. 2919-2016 – Determining that Lot 3A, Block 1, Spur
Subdivision No. 1, 1983 Addition, City-Owned Airport Property Located
Outside the Airport Reserve, is Not Needed for a Public Purpose and
Authorizing the Sale of the Property to Dean You, or His Assignee. ...... Pg. 63
4. Ordinance No. 2920-2016 – Increasing Estimated Revenues and
Appropriations by $4,206 in the Airport Fund, by $62,981 in the General Fund,
and Amending KMC 23.50.010 for the Creation of a Fulltime Human Resource
Director Position. ................................................................................. Pg. 69
Kenai City Council Meeting Page 2 of 3
September 21, 2016
5. Ordinance No. 2921-2016 – Appropriating Funds in the General and City Dock
Capital Project Funds for Engineering and Design Services to Repair Damage
to the Kenai City Dock Caused by Age and the January 2016, 7.1 Magnitude
Earthquake that Shook the Cook Inlet Region. ...................................... Pg. 77
6. Ordinance No. 2922-2016 – Accepting and Appropriating a Grant from the
Rasmuson Foundation for Restoration of a Historic City of Kenai Fire Truck.
.............................................................................................................. Pg. 81
7. Ordinance No. 2923-2016 – Amending Kenai Municipal Code Section
21.05.020 – Airport Reserve Boundary Map, to Relocate the Airport Reserve
Boundary from the Kenai Spur Highway to the North Side of Cohoe Avenue
and to Replace the Airport Reserve Boundary Map in Appendix I of Chapter
21.05 – Airport Administration and Operation with a New Updated Map.
.............................................................................................................. Pg. 85
E. MINUTES
1. *Special Meeting of September 6, 2016
2. *Special Meeting of September 14, 2016 ................................................. Pg. 95
F. UNFINISHED BUSINESS
1. Ordinance No. 2915-2016 – Amending KMC Section 4.32.15-Local
Amendments to the 2012 International Residential Code, by Making Local
Amendments to the 2012 Edition of the International Residential Code
Regarding Smoke Alarms in Crawl Spaces. [Clerk’s Note: At its meeting on
September 7, 2016, Council approved a motion to postpone the enactment of
this ordinance; a motion to enact is on the floor.] ................................... Pg. 99
G. NEW BUSINESS
1. *Action/Approval – Bills to be Ratified. ............................................. Pg. 109
2. *Action/Approval – Purchase Orders Exceeding $15,000. ................ Pg. 111
3. *Ordinance No. 2924-2016 – Accepting and Appropriating Additional Funds
from the Federal Aviation Administration for the Small Taxiways and Aircraft
Tie-Down Rehabilitation 2015-2016 Project. ..................................... Pg. 113
4. *Ordinance No. 2925-2016 – Appropriating Funds in the Vintage Pointe
Enterprise Funds for Unbudgeted Repairs to the Facility’s Elevator. ... Pg. 117
5. Action/approval – Approving a Special Use Permit to Empire Airlines, Inc. for
Aircraft Loading and Parking on the Apron. ........................................ Pg. 121
6. Action/Approval – Approving a Special Use Permit to Evert’s Air Fuel, Inc. for
Aircraft Loading and Parking on the Apron. ........................................ Pg. 131
Kenai City Council Meeting Page 3 of 3
September 21, 2016
7. Action/Approval – Approving a Special Use Permit to Evert’s Air Fuel, Inc. to
Purchase and Take Delivery of Bulk Fuel Delivered to Aircraft on the Apron.
............................................................................................................. Pg. 141
8. Action/Approval – Authorizing Notification of Non-Objection to the Alaska
Alcohol and Marijuana Control Office for the Issuance of a Retail Marihuana
Store License Application to Red Run Cannabis Company, LLC. ....... Pg. 151
9. Action/Approval – City Manager Recruitment. .................................. Pg. 231
H. COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
1. City Manager ...................................................................................... Pg. 233
2. City Attorney
3. City Clerk
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
L. EXECUTIVE SESSION – None Scheduled.
M. PENDING ITEMS – None.
N. ADJOURNMENT
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INFORMATION ITEMS
1. Purchase Orders between $2,500 and $15,000 for Council Review.
The agenda and supporting documents are posted on the City’s website at
www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk’s
Office or outside the Council Chamber prior to the meeting. For additional information,
please contact the City Clerk’s Office at 907-283-8231.
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Sponsored by: Mayor Porter and Council Member Navarre
CITY OF KENAI
ORDINANCE NO. 2917-2016
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING
KENAI MUNICIPAL CODE SECTION 3.10.020 – CONTROL AND CONFINEMENT OF
ANIMALS, TO REQUIRE CATS IN THE CITY TO BE RESTRAINED AT ALL TIMES.
WHEREAS, the Kenai Municipal Code does not generally prohibit cats from roaming at
large in the City; and,
WHEREAS, the City’s Animal Shelter has received an increase in the number of
complaints of cats roaming at large, damaging private property and disturbing the peace
and quiet of neighborhoods; and,
WHEREAS, the number of cats roaming at large and complaints of the same has begun
to tax the available resources of the Animal Shelter; and,
WHEREAS, many other Alaskan municipalities prohibit cats from roaming at large and
also restrict the number of cats allowed to be kept in each household; and,
WHEREAS, residents of the City should not be disturbed by the pets of others, whether
dogs or cats; and,
WHEREAS, it is in the best interest of the City to require cats be contained on the
owner’s property or otherwise restrained from roaming at large.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. Form: That this is a code ordinance.
Section 2. Amendment of Section 3.10.020 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 3.10.020 – Control and Confinement of Animals, is hereby
amended as follows:
3.10.020 Control and [C]Confinement of [A]Animals.
(a) A person who owns a dog or cat shall keep the dog or cat under restraint
at all times.
(b) A person who owns an animal other than a dog or cat that is capable of
annoying or endangering other persons or damaging their property shall keep the
animal under restraint at all times.
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(c) A person who owns a vicious or dangerous animal shall at all times either
confine the animal in a building or a secure enclosure, or otherwise secure the
animal, as with a muzzle, so it cannot injure other persons or their property.
(d) A person who owns a female dog or cat in heat or during ovulation shall
keep the dog or cat under restraint in such a manner that it cannot come into
contact with a male of its species except for planned breeding purposes, provided
that a female sled dog in heat shall be confined unless it is restrained by proper
harnessing in a team in such a manner that it cannot come in contact with a
male dog except for planned breeding purposes.
(e) No person other than an officer performing his duties under this title may
release an animal from restraint without its owner’s consent, except to preserve
the animal’s life.
Section 3. Severability: That if any part or provision of this ordinance or application
thereof to any person or circumstances is adjudged invalid by any court of competent
jurisdiction, such judgment shall be confined in its operation to the part, provision, or
application directly involved in all controversy in which this judgment shall have been
rendered, and shall not affect or impair the validity of the remainder of this title or
application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part,
provision, or application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall
take effect 30 days after adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of
September, 2016.
______________________________________
PAT PORTER, MAYOR
ATTEST:
___________________________________
Sandra Modigh, City Clerk
Introduced: September 7, 2016
Enacted: September 21, 2016
Effective: October 21, 2016
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Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 2918-2016
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, WAIVING
CERTAIN LEASE PROVISIONS IMPOSED BY KENAI MUNICIPAL CODE CHAPTER 21.10
– LEASING OF AIRPORT RESERVE LANDS, AND APPROVING A NON-STANDARD FORM
OF LEASE FOR THE LEASE OF LOT 5, FBO SUBDIVISION NO. 8, ACCORDING TO
PLAT NO. 2004-85, LOCATED WITHIN THE AIRPORT RESERVE, TO SOAR
INTERNATIONAL MINISTRIES, INC.
WHEREAS, SOAR International Ministries (SOAR) applied to lease Lot 5, FBO
Subdivision No. 8 (the Property) for the proposed use of an aircraft hangar, office and
parking space, aircraft tie down and fixed base operations; and,
WHEREAS, Kenai Municipal Code Chapter 21.10 – Leasing of Airport Reserve Lands,
governs the lease of airport reserve lands and imposes certain mandatory lease terms;
and,
WHEREAS, administration has been unable to secure new leases of airport reserve lands
without deviating from the current code provisions and lease form; and,
WHEREAS, it is in the best interest of the Kenai Municipal Airport to promote
development through the application of lease incentives that recent experience has
shown requires deviation from lease terms imposed by KMC Chapter 21.10 and
standard lease form; and,
WHEREAS, the proposed lease lot requires clearing and grubbing, unclassified
excavation, classified fill and backfill, a crushed aggregate base course and utility
extensions prior to further development; and,
WHEREAS, instead of the City preparing the lot for development, it is in the Airport’s
best interest to provide a lease credit to SOAR for a maximum period of up to five years
of the lease for improvements to the property by SOAR in preparing the lot for
development; and,
WHEREAS, SOAR desires a lease of fifty-five years consisting of an initial thirty-five year
lease term and a twenty year lease renewal at its sole option in order to adequately re-
coup its investment in the property, which is initially estimated at $1.25 million; and,
WHEREAS, SOAR intends additional investment phases and the Council may entertain
an additional lease term upon significant greater investment.
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WHEREAS, pursuant to KMC 21.10.090, initial lease terms and renewals are based on
the amount of investment of permanent improvements on the property with a maximum
initial term of thirty-five years; and,
WHEREAS, KMC 21.10.080 allows for council to approve a contractual right for a lease
renewal under terms and conditions in the City’s best interest; and,
WHEREAS, the Council finds that in this instance waiving the provisions of KMC
21.10.090 is in the best interests of the City; and,
WHEREAS, pursuant to KMC 21.10.150(b), the City Manager may deviate from the
standard lease form adopted under Code, if the Manager believes the action is in the
best interest of the City and the form is approved by the City Attorney; and,
WHEREAS, the City Manager believes it is in the best interest of the City to deviate from
the current lease form to allow for reasonable costs for work performed by SOAR or its
contractors for site development, including utility service extensions, to be applied as
lease credits to the lease for a maximum period of five years; and,
WHEREAS, the City Manager further believes it is in the best interest of the City to
deviate from the current lease form to provide that SOAR may remove, sell or have the
City sell any permanent improvements on the property left after the expiration of the
lease term consistent with State of Alaska rural airport leasing procedures; and,
WHEREAS, the City Attorney has approved the new lease form.
WHEREAS, on July 27, 2016 the Planning and Zoning Commission recommended
Council approve a lease to SOAR for the Property; and
WHEREAS, on September 8, 2016, the Airport Commission recommended Council
__________________ a lease to SOAR for the Property.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA:
Section 1. Form: That this is a non-code ordinance.
Section 2. Waiver of Ordinance Requirements: That the Council of the City of Kenai
waives the lease provisions of the Kenai Municipal Code as it applies to the lease of Lot
5, FBO Subdivision No. 8, located within the Airport Reserve, to SOAR International
Ministries Inc., for the use of an aircraft hangar, office and parking space, aircraft tie
down, storage for airport based operations and fixed base operations: KMC 21.10.090
with respect to length of lease term.
Section 3. Determination of Lease Term: That the Council of the City of Kenai
determines that a thirty-five year lease term and the contractual right for a twenty year
lease renewal for Lot 5, FBO Subdivision No. 8, located within the Airport Reserve, is in
the best interests of the City.
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Section 4. Approval of Lease Form: That the Council of the City of Kenai approves the
Lease form for Lot 5, FBO Subdivision No. 8, located within the Airport Reserve,
including, but not limited to the disposition of improvements and provision for a
maximum five year lease payment credit for the completion of site preparation work.
Section 5. Severability: That if any part or provision of this ordinance or application
thereof to any person or circumstances is adjudged invalid by any court of competent
jurisdiction, such judgment shall be confined in its operation to the part, provision, or
application directly involved in all controversy in which this judgment shall have been
rendered, and shall not affect or impair the validity of the remainder of this title or
application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part,
provision, or application.
Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall
take effect 30 days after adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of
September, 2016.
______________________________________
PAT PORTER, MAYOR
ATTEST:
___________________________________
Sandra Modigh, City Clerk
Introduced: September 7, 2016
Enacted: September 21, 2016
Effective: October 21, 2016
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KENAI MUNICIPAL AIRPORT
LEASE OF AIRPORT RESERVE LANDS
THIS LEASE AGREEMENT entered into this ________ day of ___________, 2016,
by and between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794, and
SOAR INTERNATIONAL MINISTRIES, INC., whose address is 135 Granite Point Court,
Kenai, Alaska 99611 (“Lessee”).
DEFINITIONS
For the purposes of this Lease the following terms are defined as follows:
1. Airport – the Kenai Municipal Airport, including all the runways, taxiways, aprons,
water lanes, water taxiways, and all City-owned real estate located within the boundaries
of the Airport Reserve as defined in KMC Chapter 21.05, Airport Administration and
Operation.
2. Airport Manager – the official to whom the City Manager of the City has delegated the
authority and responsibility of managing and directing the activities of the Airport.
“Airport Manager” includes that person’s authorized representative.
3. City – the City of Kenai, Alaska, a home rule municipal corporation of Alaska.
4. City Manager – the official to whom the Kenai City Council has delegated the
responsibility of managing and directing all activities of the City.
5. Contamination – the unpermitted presence of any released Hazardous Substance.
6. Environmental Law – any applicable federal, state, or local statute, law, regulation,
ordinance, code, permit, order, decision, judgment of any governmental entity relating
to environmental matters, including littering and dumping.
7. FAA – the abbreviation for the Federal Aviation Administration.
8. Hazardous Substance – any substance that is defined under an Environmental Law as
hazardous waste, Hazardous Substance, hazardous material, toxic, pollutant,
contaminant, petroleum, petroleum product, or oil.
9. KMC – the abbreviation for the Kenai Municipal Code.
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10. Permanent Improvement – a fixed addition or change to land that is not temporary or
portable, including a building, building addition, gravel fill, paving, retaining wall,
storage tank, and well.
ARTICLE I
PREMISES LEASED
A. PREMISES: In consideration of Lessee’s payment of the rents and performance of all
the covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the City,
the following described property (“Premises”) in the Kenai Recording District, Third Judicial
District, State of Alaska and located on the Airport; to wit:
Lot 5, FBO Subdivision No. 8, according to Plat No. 2004-85
B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific
warranties, expressed or implied, concerning the condition of the Premises including, survey,
soils, wetlands, access, and suitability or profitability for any use including those authorized by
this Lease, its environmental condition, or the presence or absence of Hazardous Substances in,
on, and under the surface. The Lessee takes the Premises on an “as is” basis and without
warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title
to the Premises.
ARTICLE II
RIGHTS AND USES
A. AUTHORIZED USES:
1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the
following purposes only:
Airport Hangar; Offices and Parking (for Lessee’s employees,
staff, volunteers, guests and customers only, not for general
public or airport terminal users); Aircraft Tie Downs; Storage of
Materials for Airport Based Operations; and Fixed Based
Operator
2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing,
the Lessee will operate its business on the Premises on a continuous basis,
uninterrupted by any period of closure over 15 consecutive days or 30 aggregate
days within any 12-month period of the term of this lease. The Lessee will give
the City written notice before closing the Lessee’s business on the Premises for
more than 10 consecutive days. The notice must state the reason for the closure
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and the date on which the Lessee will re-open for business. This provision does
not apply to any period during which the Lessee is unable to operate its business
as a result of an act or directive of the City, or as a result of a closure of the
Airport or loss of the Lessee’s buildings on the Premises due to fire or natural
disaster.
B. RIGHTS RESERVED TO THE CITY:
1. RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others
any rights and privileges not specifically granted to the Lessee on an exclusive
basis. The rights and privileges granted to the Lessee in this Lease are the only
rights and privileges granted to the Lessee by this Lease.
2. EASEMENTS: The City reserves the right to make grants to third parties or
reserve to the City easements or rights of way through, on, or above the
Premises. The City will not grant or reserve any easement or right of way that
unreasonably interferes with the Lessee’s authorized uses of the Premises.
3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of
ingress to and egress from the Premises and the right to enter any part of the
Premises, including buildings, for the purpose of inspection or environmental
testing at any time. Except in the case of an emergency, all inspections and
environmental testing will be coordinated with the Lessee to minimize
interference with the Lessee’s authorized uses of the Premises.
4. RIGHT OF FLIGHT: There is hereby reserved to the City, its successors and
assigns, for the use and benefit of the public, a right of flight for the passage of
aircraft in the airspace above the surface of the Premises. This public right of
flight will include the right to cause in the airspace any noise inherent in the
operation of any aircraft used for navigation or flight through the airspace or
landing at, taking off from, or operation on the Airport.
C. PROHIBITED USES: Unless specifically authorized by this Lease or an amendment
to this Lease, the following are prohibited:
1. Any use of the Premises other than those authorized in this Lease.
2. Any use of the Premises that is in violation of a City Ordinance or an Airport
regulation.
3. The outside storage on the Premises of junk, salvage aircraft or vehicle parts,
non-operational support equipment, unused or damaged equipment or material,
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or solid waste or debris unless allowed pursuant to a conditional use permit
under KMC 14.20.
4. The disposal on the Premises or the Airport of waste materials generated by the
Lessee, including any Hazardous Substance, slash, overburden, and construction
waste.
5. The stripping, wasting, or removing any material from the Premises without the
prior written approval of the City.
6. Erecting structures or allowing growth of natural objects that would constitute
an obstruction to air navigation, or allowing any activity on the Premises that
would interfere with or be a hazard to the flight of aircraft, or interfere with air
navigation or communication facilities, serving the Airport.
7. Any use or activity that is prohibited by applicable law or regulation.
ARTICLE III
TERM & HOLDOVER
A. TERM: The initial term of this Lease is for thirty-five years, from the 1st day of
________________, 2016 to the 30th day of _______________, 2051. As long as Lessee is in
compliance with all terms and conditions of this Lease (including any amendments), City
ordinances, and is current on all City tax liabilities, Lessee may at Lessee’s sole option extend
the lease for an additional twenty year term.
B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after
the expiration, cancellation or termination of this Lease, the holding over will not operate as an
extension of the term of this Lease, but only creates a month-to-month tenancy, regardless of
any rent payments accepted by the City. The Lessee's obligations for performance under this
Lease will continue during the month-to-month tenancy. The City or Lessee may terminate the
Lessee’s holdover with ten days’ advance written notice.
ARTICLE IV
RENTS AND FEES
A. RENT: The rent for the Premises is $9,408.96 per year, as established by the City
pursuant KMC 21.10.100 and as subject to adjustment under Article V of this Lease, plus
applicable sales tax. The rent shall be payable annually in advance of the first day of each year
of the term of this Lease. All payments required by this Lease must be made in U.S. dollars. If
the annual rent exceeds $2,400, the Lessee may, upon written notice to the City, choose to pay
the rent in equal monthly installments, payable in advance on or before the anniversary date of
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the term of this Lease and thereafter at monthly intervals. No conversion of the payment
schedule from annual to monthly shall result in the City receiving less rent than it would have
received had the conversion not taken place.
1. Rent Credit: A rent credit may be applied for a maximum of five years of lease
payments. The credit may only include the value of site preparation work on the
leased premises to include clearing and grubbing, unclassified excavation,
classified fill and back fill, a crushed aggregate base course and utility
extensions. For the credit to be applied, all site preparation must be completed.
An engineer’s estimate of value of the site work must be provided to the City
and accepted prior to work being done. An engineer’s as-built drawing must be
provided to the City and accepted at the completion of the site work. Once the
work is completed and value determined, a credit will be applied to the lease
payments, prorated as necessary for the successive five years.
B. RENT PRORATED: Rental for any period less than one year shall be prorated on the
basis of the rent payable under this Lease in last full year previous to the prorating.
C. ADDITIONAL RENT: In addition to the rent specified in (a) of this Article, Lessee
agrees to pay to the appropriate parties all levies, assessments, and charges as follows:
1. Taxes pertaining to the leasehold interest of the Lessee.
2. Sales tax now enforced or levied in the future, computed upon rent payable in
monthly installments whether the Lessee pays rent under this Lease on a monthly
or annual basis.
3. All taxes and assessments levied in the future by the City, as if Lessee was the
legal owner of record of the Premises.
4. Reimbursement for City constructed improvements under Article XV.
D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders
payable to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210
Fidalgo Avenue, Suit 200, Kenai, Alaska 99611-7794 or any other address the City may
designate in writing to the Lessee.
E. INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and fees
required under this Lease will accrue interest at the rate of eight percent (8.0%) per annum.
Interest on disputed amounts will not be charged to the Lessee if the dispute is resolved in the
Lessee’s favor.
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F. LATE PAYMENT PENALTY: In addition to any interest payable under Provision (E)
of this Article, each time the Lessee fails to pay any rent or fee by the date required in this
Lease, the City will charge, and the Lessee shall pay, an administrative penalty of ten percent
(10.0%) of the amount due and unpaid.
G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by
the City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when
due, regardless of whether or not the Lessee receives a billing statement from the City.
H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due
and unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the
Lessee’s property, real or personal.
I. PAYMENT OF CITY’S COSTS: The Lessee will pay all reasonable actual expenses,
costs, and attorney fees City may incur, with or without formal action, to enforce, defend, or
protect this Lease or City's rights under this Lease, including any expense incurred with respect
to environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease,
the Premises, or improvements or personal property on the Premises. The Lessee will make
payment within 30 days of the date of each notice from City of any amounts payable under this
provision.
J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable
fee for any special services or facilities the City agrees to perform, which the City is not
otherwise obligated by this Lease to provide and which the Lessee requests from the City in
writing.
ARTICLE V
ADJUSTMENT OF RENT AND FEES
A. RENT OR FEE ADJUSTMENT: At intervals of approximately five years, the City
shall, in its sole discretion, adjust the rent or a fee payable by the Lessee under Article IV or
other provision of this lease. The amount to which the City increases or decreases any rent or
fee shall be established in accordance with KMC 21.10.100 and 21.10.160. Any rent change
by the City shall be based on the fair market value of
1. The Premises in its condition on the term beginning date stated in Article III;
plus
2. Any improvements made by the City subsequent to that date, the cost of which
is not reimbursed by the Lessee.
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No rent or fee change shall be effective until 30 days after the date of the City’s written
notice to the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent
for the Premises, the Lessee may appeal the rent change to the City under KMC 21.10.160.
B. CITY -CONSTRUCTED IMPROVEMENTS: Improvements constructed by the City
on, or in connection with, the Premises shall not be considered a part of the Premises for the
purpose of establishing the rent under (a) of this Article, if the Lessee, as a condition of this
lease, reimburses the City for the City’s construction costs pursuant to KMC 21.10.110.
ARTICLE VI
ASSIGNMENT & SUBLETTING
A. INVALID WITHOUT CITY’S CONSENT: The Lessee may not assign, sublet, or grant
a security interest in, by grant or implication, the whole or any part of this Lease, the Premises,
or any improvement on the Premises without the written consent of the City. Any proposed
assignment, sublease, or security interest must be written and must be submitted to the City
bearing the original, notarized signature of all parties. The Lessee may submit unsigned draft
documents for the City’s conceptual review. However, the City’s conceptual approval of a draft
document may not be construed as the City’s consent to any assignment, sublease, or security
interest. All provisions in this Lease extend to and bind the assignees and sublessees of the
Lessee.
B. NO WAIVER OF CONSENT: The City’s consent to one assignment, sublease, or
security interest will not waive the requirement for the Lessee to obtain the City’s consent to
any other assignment, sublease, or security interest.
C. ASSIGNEE / LESSEE OBLIGATIONS: An assignment must include a provision
stating that the assignee accepts responsibility for all of the assignor’s (Lessee’s) obligations
under this Lease, including environmental liability and responsibility. However, unless the City
specifically releases the Lessee in writing, the City may hold the Lessee responsible for
performing any obligation under this lease which an assignee fails to perform.
D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sublessee may not occupy
the Premises before the City consents to the assignment or sublease in writing.
E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an
assignment or a sublease, the terms of this Lease control.
F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City’s consent to any sublease
does not relieve or otherwise alter the Lessee’s obligations under this Lease.
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G. SECURITY ASSIGNMENTS AND FINANCING:
1. Subject to the requirements of (A) of this Article VI, the Lessee may assign a
security interest in this Lease. The security interest may be in the form of a
mortgage, deed of trust, assignment or other appropriate instrument, provided
a. the security interest pertains only to the Lessee’s leasehold interest;
b. the security interest does not pertain to or create any interest in City's title to
the Premises; and
c. the documents providing for the security interest are acceptable to the City.
2. If the assignment of a security interest to which the City has consented shall be
held by an established lending or financial institution, including a bank, an
established insurance company and qualified pension or profit sharing trust, and
the lending institution acquires the Lessee's interest in this Lease as a result of a
foreclosure action or other remedy of the secured party, or through any transfer
in lieu of foreclosure, or through settlement of or arising out of any pending or
contemplated foreclosure action, the lending institution may transfer its interest
in this Lease to a nominee or a wholly owned subsidiary corporation with the
prior written consent of the City, provided, the transferee assumes all of the
covenants and conditions required to be performed by the Lessee (including
payment of any monies owed by Lessee to the City under the lease). In the event
of such a transfer, the lending institution shall be relieved of any further liability
under this Lessee.
3. A holder of a security interest in this Lease consented to by the City shall have,
and be subrogated to, any and all rights of the Lessee with respect to the curing
of any default of this Lease by Lessee.
4. If, before any default has occurred in the Lease, the holder of a security interest
in this Lease consented to by the City gives the City a written notice of the
holder’s post office address, the City shall thereafter
a. by regular U.S. mail, send to the holder a copy of each notice of default at the
same time as the City gives notice of default to the Lessee; and
b. not accept any surrender or enter into any modification of this Lease without
the prior written consent of the holder, which the holder shall not unreasonably
delay or withhold.
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5. The City will enter into a new lease of the Premises with the holder of a security
interest consented to by the City, if the City terminates this Lease prior to its
normal expiration due to a default by the Lessee. The new lease shall be for the
remainder of the term of this Lease and shall be effective as of the termination
of this Lease. The City’s grant of the new lease shall be subject to the following
conditions:
a. The new lease shall be effective on the date this Lease is terminated;
b. The new lease shall be for the same rent, additional rent, and covenants as this
Lease;
c. By no later than the twentieth day following the termination of this Lease, the
security holder must submit a written request to the City for the new lease,
together with payment of all rent, additional rent and other sums then due to the
City under this Lease.
d. The security holder shall pay to the City, at the time of the execution and
delivery of such new lease any and all sums due thereunder in addition to
those which would at the time of the execution and delivery thereof be due
under this Lease but for such termination, and in addition thereto, any
reasonable expenses, including legal and attorneys’ fees, to which the City shall
have been subjected by reason of such default.
e. The security holder shall, on or before the execution of the new lease, perform
all the other obligations of the Lessee under this Lease to the extent the Lessee
failed to perform them prior to the termination of this Lease.
6. A holder of a security interest consented to by the City that takes possession of
this Lease or enters into a new lease with the City shall not be released from the
obligations and liabilities of this Lease or the new lease unless the holder assigns
its leasehold estate to an assignee who is financially capable and otherwise
qualified to undertake to perform and observe the conditions of this Lease or the
new lease and the City consents to the assignment. The City’s consent will not
be unreasonably withheld. If the security holder asserts that the City is
unreasonably withholding its consent to a proposed assignment, the dispute shall
be resolved by arbitration.
ARTICLE VII
MAINTENANCE, SNOW REMOVAL & UTILITIES
A. MAINTENANCE:
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1. At no cost to the City, the Lessee will keep the Premises and all improvements
on the Premises clean, neat and presentable, as reasonably determined by the
City.
2. At no cost to the City, the Lessee will provide for all maintenance and services
at the Premises as may be necessary to facilitate the Lessee's compliance with
this Lease and the Lessee’s use of the Premises.
3. The Lessee shall comply with all regulations or ordinances of the City that are
promulgated for the promotion of sanitation. At no cost to the City, the Lessee
shall keep the Premises in a clean and sanitary condition, and control activities
on the Premises to prevent the pollution of water.
4. The Lessee agrees to comply with all decisions and directions of the City's
Airport Manager regarding maintenance and operation of the Airport, and the
use of the Airport by the Lessee.
B. SNOW REMOVAL:
1. At no cost to the City, the Lessee is responsible for snow removal on the Premises. The
Lessee shall dispose of snow in an off-Premises location approved in writing by the
City or provide suitable snow storage within the boundaries of the Premises in
accordance with all applicable federal and state laws. At the request of the Airport
Manager, the Lessee shall submit a snow removal plan for the Premises to the Manager
for review. Upon approval of the Lessee’s plan by the Airport Manager, the
Lessee shall conduct all snow removal operations on the Premises in accordance with
the approved plan.
2. Lessee shall not deposit snow on an apron, taxiway, safety area, or other aircraft-
maneuvering surface provided for common use by others without the prior written of
the Airport Manager.
3. Lessee agrees to not allow an accumulation of snow on the Premises that would cause
interference with adjoining leaseholders or other users of the Airport.
C. UTILITIES: Unless specifically provided otherwise in this Lease, the Lessee shall, at
no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's
use of the Premises.
ARTICLE VIII
OPERATIONS
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A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its
employees, guests, contractors, sublessees, and vendors that perform any activity or function
authorized under this Lease shall do so in a manner that ensures the safety of people, the
protection of public health and the environment, and the safety and integrity of the Airport and
the Premises.
B. LESSEE'S CONTROL AND RESPONSIBILITY:
1. The Lessee will assume full control and sole responsibility as between Lessee
and City for the activities of the Lessee, the Lessee's personnel and employees,
and anyone else acting by, on behalf of, or under the authority of the Lessee on
the Airport, including the Premises.
2. The Lessee will immediately notify the City of any condition, problem,
malfunction or other occurrence that threatens the safety of people or the
Airport, harm to public health or the environment, or the safety or integrity of
the Premises.
C. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or
device that interferes with any government-operated transmitter, receiver, or navigation aid
until the cause of the interference is eliminated.
D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife
on an airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep
the Premises clean of fish slime, fish waste, or any other material that might attract birds or
other wildlife. The Lessee accepts full responsibility to maintain the Premises, control
operations, and take all reasonable measures to prevent a concentration of birds or other wildlife
on the Premises.
E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking
space on the Premises for Lessee’s business or activities, or confine parking to such other places
on the Airport as may be approved or designated in writing by the Airport Manager.
ARTICLE IX
ENVIRONMENTAL PROVISIONS
A. HAZARDOUS SUBSTANCE:
1. The lessee will conduct it business and/or operation on the Premises in
compliance with all environmental laws and permits. If hazardous substances
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are handled on the Premises, the Lessee agrees to have properly trained
personnel and adequate procedures for safely storing, dispensing, and otherwise
handling Hazardous Substances in accordance with all applicable federal, state
and local laws.
2. Lessee will promptly give the City notice of proceeding to abate or settle matters
relating to the presence of a Hazardous Substance on the Premises or from
Lessee’s operations on the Airport. The Lessee will allow the City to participate
in any such proceedings.
B. ENVIRONMENTAL INDEMNIFICATION: If Contamination of the Premises or other
property by a Hazardous Substance occurs from the Lessee’s operations on the Premises the
Lessee will indemnify, defend, and hold the City harmless from any and all claims, judgments,
damages, penalties, fines, costs, liabilities, or losses, including, but not limited to, sums paid in
settlement of claims, attorney’s fees, consultant fees, and expert fees, which arise during or
after the term of this Lease as a result of such Contamination. This indemnification of the City
by Lessee includes, but is not limited to, costs incurred in connection with any investigation of
site conditions or any cleanup, remediation, removal, or restorative work required by any
federal, state, or local governmental agency because of a Hazardous Substance being present in
the soil or groundwater or under the Premises or other properties affected by the Contamination.
C. REMEDIATION:
1. In the event of a Hazardous Substance spill on the Premises, the Lessee will
immediately notify the City and the Alaska Department of Environmental
Conversation and act, promptly, at its sole expense, to contain the spill, repair,
any damage, absorb and clean up the spill area, and restore the Premises to a
condition satisfactory to the City and otherwise comply with the applicable
portions of any environmental law.
2. In addition to any notices required by this Lease, the Lessee will immediately
notify and copy the City in writing of any of the following:
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a. Any permit, enforcement, clean up, lien, removal or other governmental or
regulatory action instituted, completed, or threatened pursuant to an
Environmental Law.
b. Any claim made or threatened by any person against the Lessee or arising from
the Lessee’s operations authorized by this Lease, relating to damage,
contribution, compensation, loss or injury resulting, from, or claimed to result
from any Hazardous Substances in, on, or under the Airport; or
c. Any report made by, or on behalf of, the Lessee to any environmental agency
arising out of or in connection with any Hazardous Substances in, on, or
removed from the Premises, including any complaints, notices, warnings, or
asserted violations.
3. Remediation and restoration of the contaminated area must meet all applicable
state and federal regulations and must meet the requirements of all governing
regulatory authorities.
D. ENVIRONMENTAL AUDIT: The Lessee will provide the City with all investigative
data, test results, reports, and any other information gathered or analyzed as part of or in relation
to any Environmental Assessment, characterization or audit on the Premises or the Airport that
Lessee performs or causes to be performed after the starting date of this Lease. The Lessee will
submit the data, result, report or information to the City within 60 days following the date on
which it becomes available to the Lessee.
E. RELEASE OF LESSEE: The City releases the Lessee from liability to the City for
Contamination and the presence of Hazardous Substances that existed prior to the
commencement date of this lease unless caused or materially contributed to by the Lessee.
F. SURVIVAL OF OBLIGATIONS: The obligations and duties of the City and Lessee
under Article IX of this lease shall survive the cancellation, termination or expiration of this
lease.
ARTICLE X
INDEMNIFICATION & INSURANCE
A. INDEMNIFICATION:
1. The Lessee will indemnify, save harmless, and defend the City, its officers,
agents, and employees from and against any and all liabilities, losses, suits,
administrative actions, claims, awards, judgments, fines, demands, damages,
injunctive relief or penalties of any nature or kind to the full extent of the loss or
obligation for property damage, personal injury, death, violation of any
regulation or grant agreement, or any other injury or harm resulting from or
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arising out of any acts or commission of or omission by the Lessee, his agents,
employees, customers, invitees or arising out of the Lessee’s occupation or use
of the premises demised or privileges granted, and to pay all costs connected
therewith. This indemnification of the City by the Lessee shall include sums
paid in settlement of claims, attorney fees, consultant fees, expert fees, or other
costs and expenses, directly or indirectly arising from, connected to or on
account of this Lease as it relates to the Lessee, the Lessee’s activities at or
relating to the Airport, or any act or omission by the Lessee, or by any of its
officers, employees, agents, contractors or sublessees. These indemnity
obligations are in addition to, and not limited by, the Lessee’s obligation to
provide insurance, and shall survive the expiration or earlier termination of this
Lease.
2. The Lessee shall give the City prompt notice of any suit, claim, action or other
matter affecting the City to which Paragraph 1, above, may apply, together with
a copy of any letter by an attorney on behalf of a complainant, any complaint
filed in court, and any notice or complaint by any regulatory agency. The City
shall have the right, at its option, to participate cooperatively in the defense of,
and settlement negotiations regarding, any such matter, without relieving the
Lessee of any of its obligations under this provision.
3. As to any amount paid to others for personal injury or property damage with
respect to which an act or omission of the City is a legal cause, notwithstanding
Paragraph 1 of this section, the Lessee and the City shall reimburse each other
according to the principles of comparative fault. If liability to a third party is
subject to apportionment according to comparative fault under this provision,
the Lessee and the City shall seek in good faith to achieve non-judicial
agreement as to apportionment of fault as between themselves. This
apportionment of liability between the City and the Lessee shall not be construed
to affect the rights of any person who is not a party to this Lease.
B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force
during the term of this Lease, insurance of the type and limits required by this provision. Where
specific limits are set, they will be the minimum acceptable limits. If the Lessee’s policy
contains higher limits, the City will be entitled to coverage to the extent of the higher limits. At
the time insurance in obtained by the Lessee, all insurance shall be by a company/corporation
rated “A-” or better by A.M. Best. The following policies of insurance are required with the
following minimum amounts:
1. Commercial General Liability, including Premises, all operations, property damage,
products and completed operations, and personal injury and death, broad-form
contractual, with a per-occurrence limit of not less than $1,000,000 combined single
limit. If this lease authorizes the Lessee to engage in the sale or the commercial
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dispensing or storage of aviation fuel, the policy must not exclude of the Lessee’s fuel
handling activities. This policy must name the City as an additional insured.
2. Commercial Automobile Coverage with not less than $1,000,000 combined single limit
per occurrence. This insurance must cover all owned, hired, and non-owned motor
vehicles used by the Lessee.
3. Workers Compensation Insurance. The Lessee will provide and maintain, for all
employees, coverage as required under AS 23.30.045, and, where applicable, any other
statutory obligations. The policy must waive subrogation against the City.
4. The Lessee will provide the City with proof of insurance coverage in the form of an
insurance policy or a certificate of insurance, together with proof that the premiums
have been paid, showing the types and monetary limits of coverage secured. All
insurance required by this provision must provide that the City be notified at least 30
days prior to any termination, cancellation, or material change in the insurance
coverage.
5. If the Lessee's insurance coverage lapses or is canceled, Lessee will immediately, upon
written notice by the City, halt all operations on the Airport, including the Premises.
The Lessee will not resume operations until the City receives evidence that the Lessee
has obtained current insurance coverage meeting the requirements of this Lease.
6. The City may, at intervals of not less than five years from the beginning date of the term
of this Lease and upon written notice to Lessee, revise the insurance requirements
required under this Lease. City’s determination to revise the insurance requirements
will be based on the risks relative to the Lessee's operations, any insurance guidelines
adopted by the City, and any applicable law.
7. If the Lessee subleases all or any portion of the Premises under the provisions of this
Lease, the Lessee will require the sublessee to provide to the insurance coverage
required of the Lessee under this Article X.
ARTICLE XI
LAWS & TAXES
A. COMPLIANCE WITH LAW: Lessee shall comply with all applicable laws,
ordinances, and regulations of public authorities now or hereafter in any manner affecting the
Airport, the Premises or the sidewalks, alleys, streets, and ways adjacent to the Premises, or any
buildings, structures, fixtures and improvements or the use thereof, whether or not any such
laws, ordinances, and regulations which may be hereafter enacted involve a change of policy
on the part of the governmental body enacting the same. Lessee agrees to hold City financially
harmless:
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1. From the consequences of any violation of such laws, ordinances, and/or regulations;
and
2. From all claims for damages on account of injuries, death, or property damage resulting
from such violation.
B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation,
business, or trade to be conducted on the Premises contrary to any law, ordinance, or regulation,
including zoning ordinances, rules and regulations.
C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits,
pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees
and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from
challenging any taxes or special assessments to the appropriate authority.
D. LITIGATION: The Kenai municipal code, including regulations promulgated
thereunder, and the laws of the State of Alaska will govern in any dispute between the Lessee
and City. If a dispute continues after exhaustion of administration remedies, any lawsuit must
be brought in the courts of the State of Alaska, in Kenai, Alaska.
E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term of this Lease may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee
may have in or to the Premises or improvements on the Premises by reason of its use or
occupancy or the terms of this Lease provided, however, that nothing in this provision shall
prevent Lessee from contesting any increase in a tax or assessment under any applicable law,
ordinance, or regulation.
F. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining
terms, provisions, conditions, or parts shall continue in full force and effect as though the
declaration had not been made.
ARTICLE XII
LEASE TERMINATION
A. CANCELLATION: The City may, after 30 days’ written notice to the Lessee, cancel
this Lease and recover possession of the Premises if any of the following violations occur,
unless the violation is cured within the 30 days:
1. The Lessee fails to pay when due the rents, additional rents, charges, or other sums
specified in this Lease, including any increases made under this Lease.
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2. The Lessee's check for payment of any sum due under this Lease is returned for
insufficient funds.
3. The Lessee uses or authorizes the use of the Premises for any purpose not
authorized by this Lease.
4. The Lessee fails to fully perform and comply with any provision in this Lease.
5. The court enters a judgment of insolvency against the Lessee.
6. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought
by or against the Lessee, or the Lessee files a voluntary petition in bankruptcy.
7. Failure by the Lessee to comply with any land development or permanent
improvement construction required by this Lease.
B. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated in
accordance with this Article XII, or by summary proceedings or otherwise, or upon the Lessee’s
abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or
representatives may, immediately or any time thereafter, re-enter, and resume possession of the
Premises or portion thereof, and remove all persons and property therefrom, without being
liable for any damages therefore. No re-entry by the City shall be deemed an acceptance of a
surrender of the Lease.
C. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will
continue to pay City rent after the expiration, termination, or cancellation of this lease and to
abide by the lease obligations, including providing proof of insurance coverage, through the
date Lessee relinquishes possession of and completely vacates the Premises. City will consider
the Premises completely vacated if the Lessee has
1. Remediated any environmental contamination for which the Lessee is
responsible;
2. Restored the Premises to a neat and clean physical condition acceptable to the
City.
D. REASONABLE CURE:
1. In the case of a violation that cannot be reasonably cured within 30 days, a notice
of cancellation issued by the City to the Lessee under this Article is stayed if,
within the 30-day notice period, the Lessee begins and continues expeditious
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action to cure the violation. The City will determine if a violation cannot be
reasonably cured within 30 days and what constitutes expeditious action.
2. In the case where, in City’s sole determination, Lessee’s violation is considered
an imminent threat to the airport, public health or safety, or the environment,
City will direct the Lessee to stop the activity immediately and may reduce the
period to cure the violation, or the City may correct the violation pursuant to (E)
of this Article.
E. RIGHT OF CITY TO PERFORM:
1. If, after 30 days following notice the Lessee fails or refuses to perform any action
required by this Lease, the City will have the right, but not the obligation, to
perform any or all such actions required by this Lease at the sole expense of the
Lessee. The City will not take action if the Lessee begins and continues
expeditious action to perform any action required by this Lease that cannot be
reasonably completed within 30 days. The City will, at its sole discretion,
determine what constitutes expeditious action and if an action cannot be
reasonably performed in 30 days. The City will submit to the Lessee an invoice
for the expenses incurred by the City in the performance by the City of any
required action. The Lessee will pay the amount of each invoice within 30 days
from issuance.
2. If Lessee fails or refuses to perform any action that has been deemed an
imminent threat the City will have the right, but not the obligation, to perform
any or all such actions required to expeditiously correct the imminent threat.
Lessee shall reimburse the City for any cost, including legal fees and
administrative costs reasonably incurred by the City in acting to correct the
imminent threat violation.
F. WAIVER: A waiver by the City of any default by the Lessee of any provision of this
Lease will not operate as a waiver of any subsequent default. If the City waives a default, the
City is not required to provide notice to the Lessee to restore or revive any term or condition
under this Lease. The waiver by the City of any provision in this Lease cannot be enforced or
relied upon unless the waiver is in writing and signed on behalf of the City. The City's failure
to insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver
or relinquishment for the future, and the provision will continue in full force.
G. AIRPORT CLOSURE:
1. If the City closes the airport to aircraft operations for sixty days or less, this
Lease will remain in full force and effect without adjustment
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2. If the City closes the Airport to aircraft operations for more than sixty days, but
not permanently, and this Lease is for aviation or direct aviation support uses,
the Lessee may, upon written notice to the City, either terminate the Lease or
retain the Lease and receive a fifty (50%) percent rent reduction or credit for that
portion of the closure that exceeds sixty days.
3. If the City permanently closes the Airport to aircraft operations and
a. this Lease is for aviation or direct aviation support uses, the Lessee may
terminate this agreement by written notice to the City; or
b. this Lease is for non-aviation uses, the Lessee may request in writing to
have the Lease terminated. The City will consider the Lessee’s request
in light of the City’s best interest and either terminate the Lease, or deny
the Lessee’s request in writing.
H. DISASTERS: The Lessee or City may cancel this lease upon written notice to the other
party if:
1. the Premises becomes unusable through no fault of either party and performance
under this lease becomes impossible; or
2. the Airport becomes unusable through no fault of either party and the
performance under this lease becomes impossible.
If the Lessee elects in writing that it will continue to operate after notice from City to Lessee
that the Airport has become unusable, the Lessee’s obligations under the Lease will continue,
but City shall be under no obligation to continue to perform.
Causes for termination of the lease under this provision (G) include acts of God, the public
enemy, and the United States.
I. NATIONAL EMERGENCY: If the federal government declares a national emergency,
neither party may hold the other liable for any inability to perform any part of this Lease as a
result of the national emergency.
J. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII,
Lessee shall, on the last day of the term of this Lease (including any extension or renewal
thereof) or upon any earlier termination of this Lease, surrender and deliver up the premises
into the possession and use of City without fraud or delay in good order, condition, and repair,
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except for reasonable wear and tear since the last necessary repair, replacement, restoration or
renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in
writing, and free and clear of all liens and encumbrances other than those created by and for
loans to City.
K. OWNERSHIP AND DISPOSITION OF IMPROVEMENTS:
1. Ownership of Permanent Improvements: Permanent improvements on the
Premises, excluding Site Development Materials, constructed, placed, or
purchased by the Lessee remain the Lessee’s property as long as this Lease
remains in effect, including any period of extension or holdover with the
consent of the Lessor.
2. Disposition of Site Development Materials: The Lessee acknowledges that,
once placed by the Lessee, the removal from the Premises of Site
Development Materials can damage the Premises, adversely affect surface
water drainage patterns, and destabilize adjacent structures. When placed on
the Premises by the Lessee, Site Development Materials, including building
pads, parking areas, driveways, and similar structures:
a. become a part of the realty and the property of the City of Kenai;
b. unless otherwise directed by the Lessor, must be maintained by the
Lessee throughout the term of this Lease, including any extensions and
periods of holdover; and
c. may not be removed by the Lessee without the prior written approval of
the Lessor.
3. Disposition of Personal Property and Permanent Improvements Other Than
Site Development Materials:
a. Unless the Lessor otherwise directs as provided below, when this Lease
expires, terminates, or is cancelled and is neither extended nor followed
by a successive lease, the departing Lessee may do one or more of the
following:
i. remove Lessee-owned Permanent Improvements from the
Premises, remediate any Contamination for which the Lessee
is responsible, and restore the Premises to a clean and neat
physical condition acceptable to the Lessor within 60 days after
the expiration, cancellation, or termination date of this Lease;
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ii. with written approval from the Lessor, sell Lessee-owned
Permanent Improvements to the succeeding lessee, remove all
personal property, remediate, any Contamination for which the
Lessee is responsible and leave the Premises in a clean and
neat physical condition acceptable to the Lessor within 60 days
after notice from the Lessor that the Lessor has approved an
application for a lease of the Premises by another person or
such longer period specified in the notice, but in no event more
than 180 days after the expiration, termination, or cancellation
date of this Lease;
iii. elect to have the Lessor sell Lessee-owned Permanent
Improvements at public auction as provided below, remediate
any Contamination for which the Lessee is responsible, and
restore the premises to a clean and neat physical condition
acceptable to the Lessor. If the Lessor sells Permanent
Improvements under this Paragraph for removal from the
Premises, the departing Lessee's obligation under this
Paragraph continues until the Premises are remediated and
restored to a clean and neat physical condition acceptable to
the Lessor after the improvements have been removed.
b. If the departing Lessee elects to have the Lessor sell Lessee-owned
Permanent Improvements at public auction per this Section, the Lessee
shall, within 30days after the expiration, cancellation, or termination of
this Lease:
i. submit to the Lessor a written request and authorization to sell
the Permanent Improvements by public auction;
ii. provide to the Lessor an executed conveyance document
transferring clear title to the Permanent Improvements to the
successful bidder at the public auction, along with
authorization to the Lessor, as agent for the Lessee for purposes
of the sale only, to endorse the name of the successful bidder
on the conveyance document upon receipt of payment of the
successful bid price; and
iii. before the date of the public auction, remove all personal
property, remediate any Contamination for which the Lessee
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is responsible and leave the Premises in a neat and clean
physical condition acceptable to the Lessor.
c. When selling Lessee-owned Permanent Improvements at public auction
for the departing Lessee, the Lessor will establish the terms and
conditions of the sale. The Lessor shall pay the Lessee any proceeds of
the sale of the Permanent Improvements, less the administrative costs of
the public auction and any financial obligation the Lessee owes to the
Lessor under this Lease. Payment will be made within a reasonable time
after the Lessor completes the sale transaction and receives the proceeds,
but not to exceed 60 days. If all or a portion of the Permanent
Improvements do not sell at public auction, the Lessee will remove those
Permanent Improvements, remediate any Contamination for which the
Lessee is responsible and restore the Premises to a clean and neat physical
condition acceptable to the Lessor within 60 days after the auction.
d. If the Lessee shows good cause to the Lessor and if it is not inconsistent
with the best interest of the City of Kenai, the Lessor will grant an
extension of time that is sufficient to allow the Lessee to remove or sell
Lessee-owned Permanent Improvements, remediate any Contamination
for which the Lessee is responsible and to restore the Premises to a clean
and neat physical condition acceptable to the Lessor.
e. The Lessor will, by written notice, direct the departing Lessee to remove
Lessee-owned Permanent Improvements from the Premises, to
remediate, consistent with applicable law, any Contamination for which
the Lessee is responsible and to restore the Premises to a clean and neat
physical condition acceptable to the Lessor if the Lessor determines in
writing:
i. that the continued presence of the Permanent
Improvements on the Premises are not consistent with any
written Airport program or plan required for compliance
with applicable federal, state, or local law;
ii. that the continued presence of the Permanent Improvements
on the Premises is not in the best interest of the City of Kenai;
or
iii. that the Permanent Improvements present a hazard to public
health or safety.
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f. The departing Lessee to whom the Lessor has issued direction under
Paragraph 5 of this Section shall comply with the Lessor's direction
within 60 days after issuance of the direction and at no cost to the Lessor.
If the departing Lessee shows good cause to the Lessor, continues to
work diligently to comply with Lessor’s direction, and if it is not
inconsistent with the best interest of the City of Kenai, the Lessor will
allow in writing a longer period that is sufficient to allow the Lessee to
comply with the Lessor’s direction. A departing Lessee who fails to
comply with a direction issued by the Lessor under Paragraph 5 of this
Section, shall, within 30 days of being billed by the Lessor, reimburse
the Lessor for any costs reasonably incurred by the Lessor, including
legal fees and administrative costs, to enforce the Lessor’s direction or to
remove and dispose of unremoved Lessee-owned improvements,
remediate any Contamination for which the Lessee is responsible and
restore the Premises.
g. If the departing Lessee does not timely remove or sell the Lessee-owned
Permanent Improvements on the Premises in accordance with the
requirements of this Section, any remaining Permanent Improvements
and any remaining personal property of the departing Lessee will be
considered permanently abandoned. The Lessor may sell, lease,
demolish, dispose of, remove, or retain the abandoned property for
Airport use as the Lessor determines is in the best interest of the City of
Kenai. The departing Lessee shall, within 30 days after being billed by
the Lessor, reimburse the Lessor for any costs reasonably incurred by the
Lessor, including legal and administrative costs, to demolish, remove,
dispose, clear title to, or sell the abandoned property and to remediate and
restore the Premises.
h. After the expiration, termination, or cancellation of the Lease, including
any holdover, the departing Lessee loses all right to occupy or use the
premises without the express or implied consent of the Lessor. Except
as the Lessor notifies the departing Lessee otherwise in writing, the
Lessor consents to the departing Lessee's continued use and occupancy
of the Premises to diligently accomplish the requirements of this
Section. Until the departing Lessee relinquishes possession of and
completely vacates the Premises under Paragraph 9 of this Section and
notifies the Lessor in writing that it has relinquished and vacated the
Premises, the departing Lessee shall perform the following as if the lease
were still in effect,
i. pay rent to the Lessor;
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ii. maintain the premises;
iii. provide the Lessor with evidence of each insurance coverage,
if any, required under the Lease; and
iv. cease using the premises other than to diligently accomplish the
requirements of this Section, and to comply with the other
requirements of the Lease.
i. A departing Lessee will not be considered to have relinquished
possession and completely vacated the Premises until
i. the departing Lessee has:
(a) remediated, consistent with applicable law, any
Contamination for which the Lessee is
responsible; and
(b) restored the Premises to a clean and neat physical
condition acceptable to the Lessor; and
ii. either
(a) removed all of the Lessee's Permanent Improvements and
personal property from the premises or sold the
Permanent Improvements and personal property to a
succeeding Lessee under the provisions of this Lease; or
(b) transferred title to the Lessee's Permanent Improvements
and personal property that remain on the premises to the
Lessor.
ARTICLE XIII
GENERAL COVENANTS
A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands
or facilities without the written consent of the City is prohibited. This prohibition shall not
apply to use of areas designated by the City for specified public uses, such as passenger
terminals, automobile parking areas, and streets.
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B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not
limited to recording costs, shall be paid by Lessee.
C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good
order at the Lessee’s own expense, allowing no damage, waste, nor destruction thereof, nor
removing any material therefrom, without written permission of the City. At the expiration of
the term fixed, or any earlier termination of the Lease, the Lessee will peaceably and quietly
quit and surrender the premises to the City.
D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on
the Premises by the Lessee must be compatible with its surroundings and consistent with the
uses authorized under this Lease, as determined by the City. The Lessee must obtain the City’s
written approval before placing fill material, beginning any land development, or constructing
or demolishing any improvements on the Premises, and before beginning any alterations,
modifications, or renovation of existing structures on the Premises. The Lessee must submit to
the City detailed drawings of the proposed development, alteration, modification, or renovation,
together with specifications or any other information the City reasonably requires. Further, the
Lessee will submit to City evidence of the Lessee’s compliance with Federal Aviation
Administration regulation 14 CFR Part 77.
E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS: Lessee
agrees that City may modify this Lease to meet revised requirements for Federal or State grants,
or to conform to the requirements of any revenue bond covenant. However, the modification
shall not act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause
the Lessee financial loss.
F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees
and covenants that the Lessee, upon paying rent and performing other covenants, terms, and
conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and
enjoy the Premises, except that the following shall not construed as a denial of the right of quiet
or peaceable possession:
1. Any inconvenience caused by public works projects in or about the Premises; and
2. Any other entries by the City on the Premises reserved or authorized under other
provisions of this Lease.
G. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood
that the City shall not be construed or held to be a partner or joint venture of Lessee in the
conduct of the Lessee’s activities or business on the Premises. The relationship between the
City and the Lessee is, and shall at all times remain, strictly that of landlord and tenant,
respectively.
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H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or state
law. The Lessee recognizes the right of the City to take any action necessary to enforce this
provision, including actions required pursuant to any federal or state law.
I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will
undertake an affirmative action program to insure that no person will be excluded from
participating in any employment activities offered by the Lessee on the grounds of race, creed,
color, national origin, or sex. No person may be excluded on these grounds from participating
in or receiving the services or benefits of any program or activity covered by subpart E. The
Lessee further agrees that it will require its sub-organization(s) provide assurance to the City to
the same effect that they will also undertake affirmative action programs and require assurances
from their sub-organization(s) as required by 14 CFR, Part 152, subpart E.
Tenant shall use the premises in compliance with all other requirements imposed by or pursuant
to title 49, code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21,
Nondiscrimination in Federally-Assisted programs of the Department of Transportation-
Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulation may be amended.
J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the
terms, conditions, and agreements of the parties and supersedes any previous understandings or
agreements regarding the Premises whether oral or written. No modification or amendment of
this Lease is effective unless in writing and signed on behalf of the City and the Lessee.
K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the Airport, including the Premises. The City shall
not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights
under this Lease, on account of the exercise of the City’s authority reserved under this
provision. Furthermore, the Lessee shall not be entitled to terminate the whole or any portion
of the leasehold estate created under this Lease, by reason of the exercise of the City’s authority
reserved under this provision, unless the exercise thereof so interferes with Lessee's use and
occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease by
operation of law under the laws of the State of Alaska and of the United States made applicable
to the states.
L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not
permit any liens including, but not limited to, mechanics', laborers', or materialmen's liens
obtainable or available under the then existing laws, to stand against the Premises or
improvements on the Premises for any labor or material furnished to Lessee or claimed to have
been furnished to Lessee or to the Lessee's agents, contractors, or sublessees, in connection with
work of any character performed or claimed to have been performed on the Premises or
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improvements by or at the direction or sufferance of Lessee. Provided, however, the Lessee
shall have the right to provide a bond as contemplated by Alaska law and contest the validity
or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for
lien, the Lessee will immediately pay any judgment rendered with all proper costs and charges
and shall have such lien released or judgment satisfied at Lessee's own expense.
M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned
and taken for a public or a quasi-public use, then upon payment of any award or compensation
arising from the condemnation or taking, the City and the Lessee shall make a good faith effort
to agree upon
1. the division of the proceeds;
2. the abatement in rent payable during the term or any extension of the term of
this Lease; and
3. other adjustments as the parties may agree upon as being just and equitable under
all the circumstances.
If, within thirty days after the award has been paid into Court, the City and Lessee are unable
to agree upon what division, abatement in rent, and other adjustments as are just and equitable,
the dispute shall be determined by arbitration.
N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the
benefit of the respective successors and assigns of the parties hereto, subject to such specific
limitations on assignment as are provided for in this Lease.
O. NOTICES:
1. Any notices required by this Lease must be in writing and must be delivered personally
or mailed by certified or registered mail in a prepaid envelope. A mailed notice
a. must be addressed to the respective party at the address written on the
first page of this Lease or to the latest address designated in accordance
with (2) of this Provision (O); and
b. shall be deemed delivered on the date it is deposited in a U.S. general or
branch post office.
2. The City or the Lessee may, from time to time, designate a new address at which
they will receive notices by providing the other party with written notice at least
15 days prior to the effective date of the change. An address change notice must
be delivered according to the procedure set out in (1) of this Provision (O).
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P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any
breach by the Lessee, the City shall retain any unused balance of the rental payment last made
by the Lessee City as partial or total liquidated damages for the breach.
Q. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and
take all necessary action to suppress destructive or uncontrolled fires and comply with all laws,
regulations, and rules promulgated and enforced by the City for fire protection on the Airport.
R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral,
or in any deposit of stone or gravel valuable for extraction or utilization is included in the
Premises or in the rights granted by this lease.. The Lessee shall not sell or remove from the
Premises for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material
valuable for building or commercial purposes.
S. APPROVAL OF OTHER AUTHORITIES: The granting of this lease by the City does
not relieve the Lessee of the responsibility to obtain any license or permit as may be required
by federal, state, or local law.
T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the
Lessee, or a duly authorized representative of Lessee, and an authorized representative of the
City.
U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and
do not necessarily define, limit, describe, or construe the contents of any provision.
V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property
available for private use, while at all times protecting the public interest to the greatest extent
possible. Following the rule that transfers of interest in public property are to be strictly
construed in favor of the public property landlord, all rights granted to the Lessee under this
Lease will be strictly construed, and all rights of the City and the protections of the public
interest will be liberally construed.
W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read
this Lease and fully understands its terms, that the Lessee has been fully advised or has had the
opportunity of advice by separate legal counsel, and voluntarily executes this Lease. Lessee
also acknowledges and agrees that the rule of interpretation under which a document is
construed against the drafter will not apply to this Lease.
X. APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will not
be unreasonably withheld. The Lessor’s approval does not waive the Lessee's legal
responsibility or liability to comply with all applicable federal and state laws and regulations.
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ARTICLE XIV
SURVEY, IMPROVEMENTS AND PERFORMANCE BOND
A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish
the physical location of the boundaries of the Premises prior to beginning any construction
thereon, including clearing grubbing, back-filling and environmental sampling. Any survey of
the Premises shall be performed by a Land Surveyor registered in the State of Alaska. The
Lessee shall furnish the City with a copy of the plat of any survey performed on the Premises
by, or on behalf of, the Lessee.
B. IMPROVEMENTS:
1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to
complete land development and construction of Permanent Improvements
including ____________________________________________________, by
no later than ____________________________, with an aggregate cost of at
least $__________________, excluding financing costs. In addition to the as-
built drawings required by this Lease, the Lessee must submit to the City written
evidence that the Lessee has completed the land development and constructed
improvements on the Premises with an aggregate cost or investment of not
less than $_____________.
The evidence of cost must be submitted to the City within sixty days of the
completion of the development and improvements, but by no later than
________________.
a. Costs considered toward the aggregate cost of permanent improvements
include building construction, design, labor, materials, materials
shipping, permits, equipment, soil testing, environmental baseline report,
and environmental assessment directly related to the construction;
premises and as-built surveys; site preparation, including excavation,
geotextile fabric, filling, grading, fill material, gravel, and pavement,
remediation of environmental contamination (unless Lessee caused or
Materially Contributed To the Contamination); and utility connection
costs.
b. The cost of Permanent Improvements excludes:
1. work performed by the City and not reimbursed by the Lessee;
and
2. work performed by the Lessee and reimbursed by the City.
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2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete
the required construction within the time allowed under (b)(1) of this Article,
including any extensions granted, the City will execute against and the Lessee
will forfeit, any bond or other guarantee given by the Lessee and, as applicable,
City will:
a. initiate cancellation of the lease; or
b. reduce the term of the lease to a period that is consistent with the portion
of the required construction timely completed; or
3. APPEARANCE: When completed, all improvements on the Premises must be
neat, presentable, and compatible with the authorized use of the Premises under
this Lease, as determined by the City.
4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City’s
written approval before beginning any land development, construction or
demolition of any improvements on the Premises, or before beginning any
alterations, modifications, or renovation of existing structures on the Premises.
The Lessee must submit to the City detailed drawings of the proposed
development, alteration, modification, or renovation. Further, the Lessee will
submit to City evidence of the Lessee’s compliance with the FAA regulation 14
CFR Part 77.
5. CITY APPROVAL WITHHELD: The City’s approval of any construction,
alteration, modification, or renovation will not be withheld unless
a. the Lessee fails to demonstrate adequate financial resources to complete
the project;
b. the project plans, specifications, and agency approvals are incomplete;
c. the proposed project would result in a violation of an applicable
ordinance, regulation, or law;
d. the proposed project would interfere with or is incompatible with the
safety, security, maintenance, or operation of the airport;
e. the proposed project is inconsistent with the Airport Master Plan;
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f. the proposed project is inconsistent with the terms of the lease, zoning
ordinances, or the City’s Comprehensive Plan;
g. the project plans do not make sufficient provision for drainage, aircraft,
vehicle, and equipment parking, or for snow storage; or
h. the proposed project does not conform to generally recognized
engineering principles or applicable fire or building codes.
6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises,
Lessee will deliver to City a written scope of work that, at a minimum, lists the
structure(s) that are to be demolished and the timeframe for demolition and
removal of the debris from the Airport. City will review Lessee’s scope for
demolition and issue Lessee written approval for the work to be done.
7. BUILDING SETBACK: No building or other permanent structure may be
constructed or placed within twenty feet of any lot of the Premises without City’s
prior written approval. In addition, no building or other permanent structure
may be constructed or placed within fifty feet of any boundary line of the
Premises which fronts on a landing strip, taxiway, or apron.
8. AS-BUILT DRAWINGS: Within sixty days after completion of construction
or placement of improvements upon the Premises, the Lessee will deliver to the
City a copy of an as-built drawing, acceptable to the City, showing the location
and dimensions of the improvements, giving distances to all Premises’
boundaries. If the Lessee constructs underground improvements, the Lessee will
appropriately mark the surface of the land with adequate surface markers. The
type, quantity, and distance between such markers will be subject to approval of
the City.
9. AIRPORT SECURITY FENCING: If any construction by the Lessee requires
a realignment or alteration of an existing security fence on the Premises or
boundary of the Premises, the Lessee agrees to realign or alter the fence in a
manner approved in writing by the Airport Manager. Anytime the fence must
be breached to allow the Lessee to complete improvement construction or fence
modifications, the Lessee shall, at the Lessee’s sole expense place temporary
barriers to maintain the security of the Airport, as determined by the Airport
Manager. If damage occurs to a security fence on the Premises or boundary of
the Premises in connection with the Lessee’s use or occupation of the Premises,
the Lessee shall promptly repair the fence to the satisfaction of the Airport
Manager.
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10. DAMAGE TO IMPROVEMENTS: If Lessee’s improvements on the Premises
are damaged or destroyed, Lessee will cause the improvements to be repaired or
rebuilt, and restored to normal function within two years following the damage
or destruction. If the Lessee fails to timely rebuild or restore the improvements,
the City may, at its sole discretion, either reduce the term of this Lease
commensurate with the estimated value of the Lessee’s remaining, fully
functional improvements on the Premises, or cancel this Lease.
11. DAMAGE NEAR EXPIRATION: If Lessee’s improvements are damaged to
the extent that more than 50% of the space is unusable and the damage
occurs within five years of the expiration of the term of this Lease, Lessee may
remove the damaged improvements, restore the Premises and terminate this
Lease.
C. PERFORMANCE BOND (Optional): N/A Prior to beginning the construction of
permanent improvements required under (b)(1) of this Article, the Lessee shall submit to the
City a performance bond, deposit, or other security in the amount of $_______________. The
form of the bond or other security shall be subject to the City’s approval.
D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises
into the possession and use of City without fraud or delay in good order, condition, and repair,
except for reasonable wear and tear since the last necessary repair, replacement, restoration or
renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in
writing, and free and clear of all liens and encumbrances other than those created by and for
loans to City. Upon the end of the term of this Lease, including any extension or renewal, or
any earlier termination thereof, title to the buildings, improvements and building equipment
shall automatically vest in City without requirement of any deed, conveyance, or bill of sale
thereon. However, if City should require any such document in confirmation hereof, Lessee
shall execute, acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted
or imposed by any and all governmental unites in connection herewith.
E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three
days prior to commencing any construction project valued in excess of $1,000.00 on the
Premises. The Lessee agrees to assist in the posting of a notice of non-responsibility and
maintenance of the notice on the Premises during construction. Lessee agrees that in the event
the Lessee fails to notify the City as required by this Provision (f), the Lessee shall indemnify
the City against any materialmen's liens as defined in AS 34.35.050 which arise as a result of
construction on the premises.
ARTICLE XV
SPECIAL PROVISIONS
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A. CITY CONSTRUCTED IMPROVEMENTS. N/A
1. ALTERNATIVE ONE – The City commits to construct improvements after the
lease is signed.
a. As part of the exchange of consideration of this lease, the City will, at
the City’s expense, cause the following improvements to be constructed
on or in connection with the Premises:
i. ;
ii. ;
iii. .
b. The City’s total cost of the improvement construction shall not exceed
$_______________ without the Lessee’s written concurrence.
c. The Lessee shall reimburse the City for the City’s cost of constructing
the improvements. The reimbursement shall be made in ten (10) equal
annual payments, plus interest at eight percent (8%) per year on the
unpaid balance. The Lessee may pay the entire remaining balance to the
City earlier than due.
d. After completing the improvements, the City will give the Lessee written
notice of the City’s total cost of constructing the improvements and the
date on which the Lessee’s reimbursement payments shall begin, which
date shall be no earlier than 60 days after the date of the City’s notice.
The Lessee’s annual reimbursement payment for each succeeding year
shall be made to the City by no later than the anniversary of date on
which the first payment was due.
e. Failure by the Lessee to timely reimburse the City as required under (b)
through (d) of this provision shall be grounds for termination of this lease
by the City.
2. ALTERNATIVE TWO – The City builds improvements before the lease is
signed. N/A
a. The Lessee acknowledges that prior to the execution of this lease, the
City constructed the following improvements on or in connection with
the Premises:
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i. ;
ii. ;
iii. .
b. The City’s total cost to construct the improvements was
$_______________.
c. As part of the consideration of this lease, the Lessee shall reimburse the
City for the City’s cost of constructing the improvements. The
reimbursement shall be made in ten (10) equal annual payments, plus
interest at eight percent (8%) per year on the unpaid balance. The Lessee
may pay the entire remaining balance to the City earlier than due.
d. The Lessee shall make the first reimbursement payment to the City by
no later than the first anniversary of the lease term beginning date given
in Article III of this lease. The Lessee’s annual reimbursement payment
for each succeeding year shall be made to the City by no later than the
anniversary of date on which the first payment was due.
e. Failure by the Lessee to timely reimburse the City as required under (c)
and (d) of this provision shall be grounds for termination of this Lease
by the City.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and
year stated in the individual acknowledgments below.
LESSEE: LESSOR:
Soar International Ministries, LLC City of Kenai
By: By:
Richard L. Page Date Rick Koch Date
Its: Director Its: City Manager
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ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _________, 2016, Name: Richard L.
Page, Director, of SOAR INTERNATIONAL MINISTRIES, INC., being personally known to
me or having produced satisfactory evidence of identification, appeared before me and
acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of
said corporation.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _________, 2016, Rick R. Koch, City
Manager of the City of Kenai, Alaska, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and acknowledged the voluntary
and authorized execution of the foregoing instrument on behalf of said City.
Notary Public for Alaska
My Commission Expires:
ATTEST:
____________________________
Sandra Modigh, City Clerk
SEAL:
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Approved as to Lease Form:
_________________________
Scott Bloom, City Attorney
AFTER RECORDING RETURN TO:
City of Kenai
210 Fidalgo Avenue
Kenai, AK 99611
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AGENDA
KENAI CITY COUNCIL – SPECIAL MEETING
SEPTEMBER 14, 2016 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS,
210 FIDALGO AVENUE, KENAI, ALASKA, 99611
http://www.kenai.city
MINUTES
CALL TO ORDER
Vice Mayor Gabriel called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Vice Mayor Gabriel led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Pat Porter, Mayor (telephonic) Bob Molloy
Henry Knackstedt Terry Bookey (telephonic)
Brian Gabriel Tim Navarre (telephonic)
comprising a quorum of the Council.
Also in attendance were:
Rick Koch, City Manager
Sandra Modigh, City Clerk
3. Agenda Approval
MOTION:
Council Member Knackstedt MOVED to approve the agenda. Councilor Molloy
SECONDED the motion and requested UNANIMOUS CONSENT.
There being no objections, SO ORDERED.
PUBLIC COMMENTS – None.
NEW BUSINESS
1. Action/Approval – Approve City Manager Candidate Questionnaire and
Background Check Matrix.
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[Council may enter into executive session on the aforementioned agenda
item pursuant to AS 44.62.310(C)(2) a subject that tends to prejudice the
reputation and character of an applicant]
City Manager Koch advised that the second page of the packet with questions 1-7
should be removed as page 5-6 was its replacement.
It was noted that the background matrix criteria wouldn’t eliminate candidates, but would
provide reason for further questioning.
It was discussed whether a suspended imposition sentence would show for a felony or
misdemeanor during a criminal background check.
MOTION:
Council Member Molloy MOVED to approve the background report matrix as presented
and requested UNANIMOUS CONSENT. Councilor Knackstedt SECONDED the
motion.
There being no objections, SO ORDERED.
Council moved on to review the city manager recruitment questions and discussions;
discussed whether the first question related to the charter requirement of the city
manager residing within city limits was redundant.
The following questions were proposed:
1. The Kenai Municipal Charter, Section 3-1, states in part, “…during the City
Manager’s tenure of office, the City Manager shall reside within the City.”
• Is it your intent to live within the City of Kenai?
2. Discuss your experience in local and State Government. Do you have in-place
relationships that would be beneficial for the City of Kenai?
3. Discuss a state of affairs where council needs to be apprised of a critical situation
that will require a difficult decision that could result in a 4 – 3 vote.
i. Describe how you prepare for the discussion.
ii. Assume the administration has a strong opinion. Knowing that the
issue is very controversial, do you think that the administration
should make a recommendation?
iii. If no, why not?
iv. If yes, who presents the Administration’s recommendation?
v. How do you respond in situations where the Council does not
follow your recommendation?
4. Discuss your philosophy of the roles of a City Manager and a Council in the
Council-Manager form of Government. Include a discussion of what you believe
are the Manager’s responsibilities to Council, as well as the Council’s
responsibilities to the Manager.
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5. Discuss your areas of strengths and weaknesses as a manager. Copies of
performance evaluations may be submitted as part of this discussion.
Other Submitted Questions
1. How will you relate to employees, department heads, advisory
committee/commission members, council and the general public?
2. Should you be selected for the position, what would you expect to accomplish
during the first three months?
3. What do you think you bring to this job that others might not?
4. Do you consider your management style to be most like a commander or a
coach? Please explain your response.
5. What do you see as the threats and opportunities facing Kenai?
6. Please tell us about a time when you made a snap decision that did not turn out
well. Follow up: How did you correct the situation?
7. Do you have any questions of us?
MOTION:
Council Member Molloy MOVED to approve the city manager recruitment questions and
discussions as presented. Councilor Knackstedt SECONDED the motion.
There being no objections, SO ORDERED.
MOTION TO AMEND:
Council Member Molloy MOVED to delete the first proposed question related to the
requirement of the city manager residing within city limits. Councilor Knackstedt
SECONDED the motion.
There being no objections, SO ORDERED.
Knackstedt noted that these were good questions; however, would like to have a
question on how the proposed city manager would work with staff and other individuals.
MOTION TO AMEND:
Council Member Molloy MOVED to amend question number one on the second by
inserting the words “as City Manager” after the words, “How will you”. Councilor
Knackstedt SECONDED the motion.
There being no objections, SO ORDERED.
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MOTION TO AMEND:
Council Member Molloy MOVED to delete the remaining 2-7 questions on page 2.
Councilor Knackstedt SECONDED the motion.
There being no objections, SO ORDERED.
VOTE ON MAIN AS AMENDED: There being no objections, SO ORDERED.
Direction was provided to the City Clerk to draft a letter to accompany the questions
requesting all material be submitted to the Clerk no later than September 23, 2016.
ADJOURNMENT
There being no further business before the Council, the meeting was adjourned at
approximately 6:50 p.m.
Minutes prepared and submitted by:
____________________________
Sandra Modigh, CMC, City Clerk
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Sponsored by: Administration
CITY OF KENAI
ORDINANCE NO. 2915-2016
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC
SECTION 4.32.15-LOCAL AMENDMENTS TO THE 2012 INTERNATIONAL
RESIDENTIAL CODE, BY MAKING LOCAL AMENDMENTS TO THE 2012 EDITION OF
THE INTERNATIONAL RESIDENTIAL CODE REGARDING SMOKE ALARMS IN CRAWL
SPACES.
WHEREAS, the City previously adopted the International Residential Code, 2012
Edition, of the International Code Council, including the appendices with certain local
amendments on June 15, 2016 via Ordinance No. 2902-2016; and,
WHEREAS, the City’s Building Official recommends an additional amendment to the
2012 Edition of the International Residential Code; and,
WHEREAS, requiring a fire alarm in crawl spaces as opposed to fire rated floors above
crawl spaces, as required by the 2012 Edition of the International Residential Code, is
a reasonable cost effective method of protecting health life and safety supported by the
Fire Department and other jurisdictions; and,
WHEREAS, it is in the best interest of the City to amend the 2012 Edition of the
International Residential Code for the City, in order to protect the health, safety, and
welfare of its citizens.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, as follows:
Section 1. Form: That this is a code ordinance.
Section 2. Amendment of Section 4.32.015 of the Kenai Municipal Code: That Kenai
Municipal Code, Section 4.32.015, Local Amendments to the 2012 International
Residential Code, is hereby amended as follows:
4.32.015 Local Amendments to the 2012 International Residential Code.
The International Residential Code (2012 Edition) is adopted by reference with
the following revisions:
R105.2 Work Exempt from Permit.
Amend #1 to read:
One story accessory structures used as tool and storage sheds, playhouses and
similar uses, provided the floor area does not exceed 120 square feet. Permits are
required for any electrical, mechanical or plumbing provided.
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Amend #10 to read:
Freestanding decks not structurally attached to another building and not
exceeding 30 inches above grade.
R105.5 Expiration.
Amend by adding a new sentence to read:
A building permit shall expire two (2) years after the date of issuance unless an
extension has been granted as provided in this subsection.
R107.3 Temporary Power.
Amend by deleting the reference “NFPA 70” and replacing it with “Electrical Code
adopted by KMC.”
R108.2 Schedule of Permit Fees.
Delete and replace with:
The fees for construction of Group R-3 and Group U-1 occupancies, or portions
thereof, are as set forth in the City’s schedule of rates, charges and fees adopted by the
City Council. Plan review fees shall be fifty percent (50%) of the building permit fee for
Group R-3 and Group U-1. Plan review fees shall be paid at the time applications for
building permits are submitted.
R108.3 Building Permit Valuations.
Amend by inserting a new sentence after the first sentence to read:
The Building Valuation Data Table shown in the latest edition of the Building
Safety Journal published by the International Code Council shall be used to determine
value.
R108.4 Related Fees.
Amend by inserting a new sentence after the first sentence to read:
Any person who commences any work on a building before obtaining the
necessary permits shall be subject to an additional fee, equal to the cost of the building
permit.
Section R112 Board of Appeals.
Delete the entire section. Refer to KMC Chapter 4.40.
Section R-113.4 Violation Penalties.
Delete the entire section. Refer to KMC Chapter 4.40.
R301.1.3 Engineered Design.
Delete the entire section.
R301.2.1.1 Design Criteria.
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Delete the entire section.
Table R301.2(1) Climatic and Geographic Design Criteria.
Add the following information to the table:
Ground Snow Load 70 PSF
Wind Speed 100 mph
Seismic Design Category D2
Subject to Damage from:
Weathering Yes, severe
Frost Line Depth 42″
Termite No
Decay No
Winter Design
Temperature
-18 deg F
Flood Hazards No
Ice Shield Underlayment
Required
Yes
Air Freezing Index 3000
Mean Annual
Temperature
35 degrees
R301.2.2.1.1 Alternate Determination of Seismic Design Category.
Amend by deleting paragraphs R301.2.2.1.l, R301.2.2.1.2, R301.2.2.2, and Table
R301.2.2.1.1 and replacing them with the following:
The seismic design category for the City of Kenai shall be D2.
R301.2.4 Flood Plain Construction.
Delete entire section.
R302.1 Exterior Wall Location.
Amend by deleting Exceptions #3 and #4.
R302.2 Exception.
Amend by deleting the phrase “one-hour fire resistance rated wall” and replacing
it with “two-hour fire resistance rated wall unless sprinklered per NFPA 13D.”
R302.2.4 Structural Independence.
Delete Exception #5 and replace with:
5. Townhouses separated by a common 2-hour fire resistance rated wall as
provided in Section R302.2 or a 1-hour wall as provided in Section R302.2 and
sprinklered per NFPA 13D.
R302.5.1 Opening Protection.
Amend the second sentence by adding the words “self closing” before the words
“solid wood doors.”
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Table R302.6 Dwelling/Garage Separation.
Amend by replacing all references to 1/2-inch material to 5/8-inch material.
R313 Automatic Fire Sprinkler Systems.
Delete the entire section.
R314.3 Location.
Amend the first sentence of #3 to read:
3. On each additional story of the dwelling, including basements, habitable
attics and crawl spaces but not including uninhabitable attics.
R315.1, 315.2 and 315.3.
Delete and replace as follows:
R315.1. At least one carbon monoxide detector or alarm shall be installed on each floor
level. If a floor level contains bedrooms or sleeping rooms, at least one detector shall be
located in the immediate vicinity of the sleeping area, outside of the bedrooms or
sleeping rooms. Carbon monoxide detectors and alarms shall be installed in accordance
with their listing. The alarm shall be clearly audible in all sleeping rooms, even if the
intervening doors are closed.
Exceptions:
1. Carbon monoxide detectors and alarms are not required in dwelling units
that have all of the following:
a. No combustion appliances;
b. No attached garage;
c. No vehicle parking within 25 feet of any direct air intake opening.
315.2 Interconnection. In new construction, all carbon monoxide detectors and
alarms located within a single dwelling unit shall be interconnected in such a manner
that actuation of one alarm shall activate all of the alarms within the individual dwelling
unit.
315.3 Power Source. In new construction, carbon monoxide detectors and alarms shall
receive their primary power from the building wiring if the wiring is served from a
commercial source, and shall be equipped with a battery backup. Wiring shall be
permanent and without a disconnecting switch other than what is required for
overcurrent protection. In existing construction, carbon monoxide detectors and alarms
may be powered by battery or a cord-and-plug with battery backup.
R315.4 Alterations, Repairs, and Additions.
Add a new section as follows:
R315.4 Alterations, Repairs, and Additions. When interior alterations, repairs, or
additions requiring a permit occur, or when one or more sleeping rooms are added or
created in existing dwellings, the individual dwelling unit shall be provided with carbon
monoxide detectors as required in Section R315.1. Carbon monoxide detectors shall be
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permitted to be electrical outlet type with battery back up when installed in existing
buildings that undergo alterations, repairs, or additions that do not result in the removal
of the interior wall or ceiling finishes exposing the structure.
R316.5.4 Crawl Spaces.
Add the following:
Exception: Foam plastics used in crawl space areas do not require thermal barrier
provided the following conditions are met:
1. Entry to crawl space is only to serve utilities.
2. There are no interconnected basement areas.
3. Air to the crawl space is not circulated to other parts of the building.
4. Foam plastic does not exceed a 2-inch thickness and a 2.5 pounds
per cubic foot nominal density.
5. Ventilation complying with section R408 is provided.
6. No gas-fired equipment is located in crawl space.
R322 Flood Resistant Construction.
Delete entire section.
R401.1 Application.
Add the following exception 3:
Wood foundations shall have a minimum 16-inch x 10-inch reinforced concrete
footing.
R402.1.3 Restraint for Wood Foundations.
Add a new subsection, R402.1.3 Restraint for Wood Foundations, to read:
Basement. A 4-inch thick concrete slab poured against the studs. If a wooden
screed is used, it shall be pressure treated Douglas fir or hem fir.
Crawlspace.
Option 1: A minimum 5-inch wide by 4-inch deep concrete curb poured against
the inside face of the studs. The kicker shall be reinforced with a continuous horizontal
No. 3 reinforcing bar. If the kicker is not poured with the continuous concrete footing,
it may be poured later provided vertical #3 reinforcing bars x 10 inches long shall be
cast into the footing at 2 feet on center. They shall extend 2 inches above the top of the
footing. The continuous #3 bar shall be secured to the vertical #3 bars.
Option 2: Installation of preservative treated 4″ x 4″s with a minimum 1/2″ x 12″
galvanized anchor bolts at 24″ O.C. installed in footing against the inside face of studs
along the entire perimeter.
Exception: The above need not apply if a suitable alternate design is prepared by
an engineer registered in the State of Alaska and is approved by the Building Official.
R402.1.4 Dampproofing for Wood Foundation Walls.
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Add a new subsection, R402.1.4 Dampproofing for Wood Foundation Walls, to
read:
Approved dampproofing shall be applied over the below-grade portion of exterior
basement and crawlspace walls prior to backfilling. A treated lumber or plywood strip
shall be attached to the wall to cover the top edge of the approved dampproofing. The
wood strip shall extend at least two (2) inches above and five (5) inches below finish
grade level to protect the approved dampproofing from exposure to light and from
mechanical damage at or near grade. The joint between the strip and the wall shall be
caulked full length prior to fastening the strip to the wall. Alternatively, brick, stucco,
or other covering appropriate to the architectural treatment may be used in place of the
wood strip. The approved dampproofing shall extend down to the bottom of the concrete
footing.
R403.1.1 Minimum Size.
Amend the third sentence to read:
All footings shall be at least 10 inches in thickness.
R403.1.3 Seismic Reinforcing.
Revise the second paragraph first sentence by changing “4 feet” to “24 inches.”
Revise the third paragraph first sentence by changing the number “4” to “5” and
the words “4 feet” to “32 inches.”
Revise the exception by deleting the words “Plain” and add the following to the
end of the sentence: “Provided wood framing is mechanically tied to isolated footings.”
R403.1.3.1 Foundations with Stemwalls.
Delete and replace with:
Foundations with stemwalls shall be provided with a minimum of one No. 4 bar
at the top of the wall for concrete masonry unit stemwalls, one No. 4 bar at the top of
the wall for poured concrete stemwalls, and two No. 5 bars at the bottom of all footings.
R403.1.3.2 Slabs-on-Ground with Turned-Down Footings.
Amend the first sentence by changing the number “4” to “5.”
Amend the exception by deleting the phrase “one No. 5 bar” and replacing it with
“two No. 5 bars.” Further amend the exception by deleting the phrase “or two No. 4
bars.”
R403.1.6 Foundation Anchorage.
Amend by deleting the phrase “6 feet on center” and replacing it with “four feet
on center.” Further amend by deleting the measure of “½ inch” and replacing it with
“5/8 inch.”
R404.1.4 Seismic Design Category[-IES] D0, D1 AND D2.
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Add Subsection 5 to read “minimum reinforcement shall consist of No. 4
horizontal bar placed at 24” on center for poured concrete walls and No. 5 horizontal
bar placed at 48” on center for CMU walls.”
Revise Subsection 3 by deleting the word “plain.”
Revise Subsection 4 by changing the changing the number “3” to “5” and the
words “4 feet” to “32 inches” and adding to the end of the paragraph “and minimum
vertical reinforcement of one No. 4 bar located a maximum of 24 inches on center in
poured concrete walls.”
R404.2 Wood Foundation Walls.
Delete the following from the first sentence: “and with the details shown in figures
R403.1(2) and R403.1(3).
R404.3 Wood Sill Plates.
Delete the paragraph and substitute with the following:
Wood sill plates shall be minimum 2-inch x 6-inch and shall be bolted to the
foundation or foundation wall with not less than ten (10) inch-long by five-eights (5/8)
inch nominal diameter galvanized steel bolts embedded at least seven (7) inches into the
concrete or in fully grouted cells of reinforced masonry and spaced not more than four
(4) feet zero (0) inches apart. There shall be a minimum of two bolts per piece with one
bolt located within 12 inches of each end of each piece. Wood sill plates must be treated
material specified in Section R323.1.
4.32.015
R501.3 Fire Protection of Floors.
Delete the entire section.
R702.3.5 Table Minimum Thickness and Application of Gypsum Board.
Delete the column for nails as a fastener.
R702.3.6 Fastening.
Amend by adding the following sentence at the end of the paragraph:
Gypsum board shall be attached with screws. Nails are not allowed.
R806.1 Ventilation Required.
Amend by adding the following sentence to the end of the paragraph:
A non-ventilated roof system may be allowed as an alternate method when its
design is approved by the Building Official.
Chapters 11 through 42.
Amend by deleting Chapters 11 through 42 in their entirety. Instead, refer to
other applicable codes as adopted in KMC.
Section 3. Severability: That if any part or provision of this ordinance or application
thereof to any person or circumstances is adjudged invalid by any court of competent
jurisdiction, such judgment shall be confined in its operation to the part, provision, or
Page 105 of 244
application directly involved in all controversy in which this judgment shall have been
rendered, and shall not affect or impair the validity of the remainder of this title or
application thereof to other persons or circumstances. The City Council hereby declares
that it would have enacted the remainder of this ordinance even without such part,
provision, or application.
Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall
take effect 30 days after adoption.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of
September, 2016.
______________________________________
PAT PORTER, MAYOR
ATTEST:
___________________________________
Sandra Modigh, City Clerk
Introduced: August 17, 2016
Enacted: September 21, 2016
Effective: October 21, 2016
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Alcohol & Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350Alaska Marijuana Control Board
Cover Sheet for Marijuana Establishment Applications
What is this form?
This cover sheet must be completed and submitted any time a document, payment, or other marijuana establishment application item is
emailed, mailed, or hand-delivered to AMCO's main office.
Items that are submitted without this page will be returned in the manner in which they were received.
Section 1 – Establishment Information
Enter information for the business seeking to be licensed, as identified on the license application.
Licensee:Red Run Cannabis Company, LLC License Number:10056
License Type:Retail Marijuana Store
Doing Business As:RED RUN CANNABIS COMPANY, LLC
Physical Address:5455 Kenai Spur Highway
City:Kenai State:AK Zip Code:99611
Designated
Licensee:
Email Address:eric@trialguy.com
Section 2 – Attached Items
List all documents, payments, and other items that are being submitted along with this page.
Attached Items:
OFFICE USE ONLY
Received Date:Payment Submitted Y/N:Transaction #:
Entity Documents
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Alcohol & Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350Alaska Marijuana Control Board
Cover Sheet for Marijuana Establishment Applications
What is this form?
This cover sheet must be completed and submitted any time a document, payment, or other marijuana establishment application item is
emailed, mailed, or hand-delivered to AMCO's main office.
Items that are submitted without this page will be returned in the manner in which they were received.
Section 1 – Establishment Information
Enter information for the business seeking to be licensed, as identified on the license application.
Licensee:Red Run Cannabis Company, LLC License Number:10056
License Type:Marijuana Retail EStablishment
Doing Business As:RED RUN CANNABIS COMPANY, LLC
Physical Address:5455 Kenai Spur Highway
City:Kenai State:AK Zip Code:99611
Designated
Licensee:
Email Address:eric@trialguy.com
Section 2 – Attached Items
List all documents, payments, and other items that are being submitted along with this page.
Attached Items:
OFFICE USE ONLY
Received Date:Payment Submitted Y/N:Transaction #:
1.Biennial Report Filing
2.LLC Operating Agreement
Suite B
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Alcohol & Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350Alaska Marijuana Control Board
Cover Sheet for Marijuana Establishment Applications
What is this form?
This cover sheet must be completed and submitted any time a document, payment, or other marijuana establishment application item is
emailed, mailed, or hand-delivered to AMCO's main office.
Items that are submitted without this page will be returned in the manner in which they were received.
Section 1 – Establishment Information
Enter information for the business seeking to be licensed, as identified on the license application.
Licensee:Red Run Cannabis Company, LLC License Number:10056
License Type:Marijuana Retail Establishment
Doing Business As:RED RUN CANNABIS COMPANY, LLC
Physical Address:5455 Kenai Spur Highway
City:Kenai State:AK Zip Code:99611
Designated
Licensee:
Email Address:eric@trialguy.com
Section 2 – Attached Items
List all documents, payments, and other items that are being submitted along with this page.
Attached Items:
OFFICE USE ONLY
Received Date:Payment Submitted Y/N:Transaction #:
1.Food Safety Permit (ADEC, Received July 25, 2016)
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Department of Commerce, Community, and Economic Development
ALCOHOL & MARIJUANA CONTROL OFFICE
550 West 7th Avenue, Suite 1600
Anchorage, AK 99501
Main: 907.269.0350
August 31, 2016
City of Kenai
Attn: Sandra Modigh, City Clerk
VIA Email: smodigh@kenai.city
☒ New Application ☐ Transfer of Ownership Application ☐ Renewal Application
☐ Onsite Consumption Endorsement
We have received a completed application for the above listed license (see attached application
documents) within your jurisdiction. This is the notice required under 3 AAC 306.025(d)(2).
A local government may protest the approval of an application(s) pursuant to 3 AAC 306.060 by
furnishing the director and the applicant with a clear and concise written statement of reasons for the
protest within 60 days of the date of this notice. If a protest is filed, the board will deny the application
unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the
application referenced above, please submit your protest within 60 days and show proof of service upon
the applicant.
3 AAC 306.010, 3 AAC 306.080, and 3 AAC 306.250 provide that the board will deny an application for a
new license if the board finds that the license is prohibited under AS 17.38 as a result of an ordinance or
election conducted under AS 17.38 and 3 AAC 306.200.
3 AAC 306.010(c) provides that the board will not issue a license when a local government protests an
application on the grounds that the applicant’s proposed licensed premises are located in a place within
the local government where a local zoning ordinance prohibits the marijuana establishment, unless the
local government has approved a variance from the local ordinance.
License Number: 10056
License Type: Retail Marijuana Store
Licensee: Red Run Cannabis Company, LLC
Doing Business As: RED RUN CANNABIS COMPANY, LLC
Physical Address: 5455 Kenai Spur Highway
Suite B
Kenai, AK 99611
Designated Licensee: Eric Derleth
Phone Number: 907-398-6690
Email Address: eric@trialguy.com
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At this time, the fingerprints submitted by the applicant cannot be submitted for a criminal history
report until a date to be determined by the Department of Public Safety and the Federal Bureau of
Investigation based upon the effective date of the act containing enabling statutory language for such
criminal history report. On April 27, 2016, the Marijuana Control Board directed me to determine
applications complete based solely upon the representations made by the applicant in Form MJ-00.
Sincerely,
Cynthia Franklin, Director
amco.localgovernmentonly@alaska.gov
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Alcohol & Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350Alaska Marijuana Control Board
Cover Sheet for Marijuana Establishment Applications
What is this form?
This cover sheet must be completed and submitted any time a document, payment, or other marijuana establishment application item is
emailed, mailed, or hand-delivered to AMCO's main office.
Items that are submitted without this page will be returned in the manner in which they were received.
Section 1 – Establishment Information
Enter information for the business seeking to be licensed, as identified on the license application.
Licensee:Red Run Cannabis Company, LLC License Number:10056
License Type:Retail Marijuana Store
Doing Business As:RED RUN CANNABIS COMPANY, LLC
Physical Address:5455 Kenai Spur Highway
City:Kenai State:AK Zip Code:99611
Designated
Licensee:
Email Address:eric@trialguy.com
Section 2 – Attached Items
List all documents, payments, and other items that are being submitted along with this page.
Attached Items:
OFFICE USE ONLY
Received Date:Payment Submitted Y/N:Transaction #:
Form MJ-02 Premises Diagram
Page 211 of 244
Alaska Marijuana Control Board
Form MJ-02: Premises Diagram
[Form MJ-02] (rev 02/02/2016) Page 1 of 2
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
☐ ☐
What is this form?
A detailed diagram of the proposed licensed premises is required for all marijuana establishment license applications, per
3 AAC 306.020(b)(8). Your diagram must show all entrances and boundaries of the premises, restricted access areas, and storage
areas, and dimensions. For those applying for a limited marijuana cultivation license, the proposed area(s) for cultivation must be
clearly delineated.
The second page of this form is not required. Blueprints, CAD drawings, or other clearly drawn and marked diagrams may be
submitted in lieu of the second page of this form. The first page must still be completed, attached, and submitted to any supplemental
premises diagrams. An AMCO employee may require you to complete the second page of this form if additional documentation for
your premises diagram is needed.
This form must be submitted to AMCO’s main office before any license application will be considered complete.
Yes No
I have attached blueprints, CAD drawings, or other supporting documents in addition to, or in lieu of, the second
page of this form.
Enter information for the business seeking to be licensed, as identified on the license application.
Licensee: License Number:
License Type:
Doing Business As:
Premises Address:
City: State: ZIP:
Section 1 – Establishment Information
Page 212 of 244
[Form MJ-02] (rev 02/02/2016) Page 2 of 2
Alaska Marijuana Control Board
Form MJ-02: Premises Diagram
Alcohol and Marijuana Control Office
550 W 7th Avenue, Suite 1600
Anchorage, AK 99501
marijuana.licensing@alaska.gov
https://www.commerce.alaska.gov/web/amco
Phone: 907.269.0350
Clearly indicate the boundaries of the premises and the proposed licensed area within that property. Clearly indicate the interior
layout of any enclosed areas on the proposed premises. Clearly identify all entrances, walls, partitions, counters, windows, areas of
ingress and egress, restricted access areas, and storage areas. Include dimensions in your drawing. Use additional copies of this
form or attached additional documents as needed.
Section 2 – Detailed Premises Diagram
Page 213 of 244
30
6
8
RETAIL
[Floor Room]
RETAIL
[Processing, Printing
& General Use Room]
1 Floor Plan 1/8” = 1’
8/25/16
RR
OFFICE/SECURE ROOM
[Retail & Cultivation]
Handicap Ramp
BATH
5’
20’-4”
18’
16’-7”
9’-8”
6’-10”
36’
8’
12’9’-6”5’-6”33’
4’-6”
9’
60’
Re
d
R
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C
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a
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C
o
m
p
a
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y
Li
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n
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e
#
10
0
5
6
DATE
Fence Line
Closed Area
[Back Exterior]
Fence
Parking
Parking
Parking
The same partner-owners of Red Run Cannabis Company
are also applying for a Cultivation establishment license as
Red Run Cannabis Cultivators. Both licensees will operate out
of the same facility; the Red Run Cannabis Company retail
establishment will operate from location, 5455 Kenai Spur Hwy, Ste B.
The Cultivation establishment will grow and purchase Cannabis, then
sell these products to Red Run Cannabis Company.
The retail establishment’s proposed licensed area is demarked by red lines.
The boundary area of the premises is approximately outlined with a dotted-line.
StorageStorage
Safe Restricted
Access
Restricted
Access
2025301520201015102014201520160102030
POS
POS Glass Display
SECURED STORAGE [INVENTORY]
Restricted
Access
Restricted
Access
Shelving
Restricted
Access
Swing Door
Fence
EntranceNo under 21
Pa
g
e
21
4
of
24
4
Pa
g
e
21
5
of
24
4
Pa
g
e
21
6
of
24
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Pa
g
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24
4
Pa
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9
of
24
4
Pa
g
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0
of
24
4
Pa
g
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1
of
24
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Pa
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2
of
24
4
Pa
g
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3
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24
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4
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4
Department of Commerce, Community, and Economic Development
Alcohol & Marijuana Control Office
License #10056
Initiating License Application
2/24/2016 2:21:19 PM
Owner #1
Owner Type: Entity
Alaska Entity Number: 10035362
Alaska Entity Name: Red Run Cannabis Company, LL
C
Phone Number: 9073986690
Email Address: eric@trialguy.com
Mailing Address: 386 Heath Place
Soldotna, AK 99669
UNITED STATES
Affiliate #1
Owner Type: Individual
Name: Roger Boyd
SSN:
Date of Birth: 07/21/1949
Phone Number: 9073987848
Email Address: redrunak@gmail.com
Mailing Address: 37095 K-Beach Road
Kenai, AK 99611
UNITED STATES
Affiliate #2
Owner Type: Individual
Name: Marc Theiler
SSN:
Date of Birth: 06/11/1976
Phone Number: 9079539453
Email Address: marc@kenaiattorney.com
Mailing Address: 105 Trading Bay Road, Ste 103
Kenai, AK 99611
UNITED STATES
Affiliate #3
Owner Type: Individual
Name: Eric Derleth
SSN:
Date of Birth: 01/05/1970
Phone Number: 9073986690
Email Address: eric@trialguy.com
Mailing Address: 386 Heath Place
Soldotna, AK 99669
UNITED STATES
License Number: 10056
License Status: New
License Type: Retail Marijuana Store
Doing Business As: RED RUN CANNABIS COMPANY, LLC
Business License Number: 1032472
Designated Owner: Eric Derleth
Email Address: eric@trialguy.com
Latitude, Longitude: 60.332000, -151.063600
Physical Address: 5455 Kenai Spur Highway
Kenai, AK 99611
UNITED STATES
Page 229 of 244
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