HomeMy WebLinkAboutResolution No. 2017-20Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2017-20
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI , ALASKA, APPROV ING A
SPECIAL USE PERMIT FOR PRL LOGISTICS INC., FOR THE CONTINGENT USE OF AN
AIRSTRIP ON CITY OWNED PROPERTY ADJACENT TO THE SOUTH BEACH .
WHEREAS , the City is in the process of selling PRL Logistics Inc., (PRL) a parcel of property as
provided in Ordinance No . 2957-2017; and,
WHEREAS, one condition of the sale is that PRL also be able to purchase adjacent City land that
contains an airstrip for airship and fixed wing operations; and,
WHEREAS , the airstrip is on several parcels of City land and the sale of the 'airstrip' property
cannot be completed until a future subdivision occurs; and ,
WHEREAS, the Special Use Permit authorized by this Resolution is intended to allow PRL
authority to occupy the airstrip prior to the future subdivision and sale of the property; and ,
WHEREAS, while the Special Use Permit authorizes PRL to occupy the property for purposes of
aircraft operations, the limitations of zoning on the parcels on which the airstrip sits, additionally
requires the Planning and Zoning Commission to approve airport uses as a conditional use before
any aircraft operations can occur; and
WHEREAS, as provi ded in Ordinance No . 2957-2017, the City Council finds that it is in the best
interest of the City to approve this Special Use Permit as PRL 's business plans will provide a
unique economic benefit to the City by bringing new industry and business to the area.
NOW , THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. That the attached Special Use Permit authorizing PRL to occupy the airstrip
identified in the Special Use Permit for aircraft operations is approved . The City Manager is
authorized to execute the Special Use Permit, with the condition that actual aircraft uses of the
property cannot actually begin until and unless additional separate Conditional Use Perm its are
obtained by PRL from the City's Planning and Zoning Commission.
Section 2. That this Resolution takes effect immediately upon passage.
ATTE
"(!;ff~ a1/t~ a Pa~t, Ct'tj a1/t~ a ratfl.l"e 11
210 Fidalgo Ave, Kenai, Alaska 99611-7794
Telephone: (907) 283-75351 Fax: (907) 283-3014
www.kenai.city
MEMORANDUM
TO:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
May10,2017
Resolution 2017-20 Approving A Special Use Permit For PRL Logistics
The City of Kenai is currently considering the sale of Tract A, Dragseth Subdivision, 2016 Addition
to PRL Logistics . One condition of that sale is that PRL Logistics also be able to purchase the
adjacent City land that contains an airstrip . This resolution approves the issuance of a Special
Use Permit (SUP) that authorizes non-exclusive use of that airstrip and surrounding area of
approximately 3 acres as shown on the attached Exhibit A.
Eventually, PRL Logistics intends on using the airstrip for aircraft operations, including utilization
by both fixed wing aircraft and an airship. However, during the term of the SUP, only fixed wing
aircraft will be using the airstrip , therefore only approximately 3 acres of the area will be utilized.
While this SUP authorizes PRL Logistics to occupy this area for these purposes, separate
Conditional Use Permits issued by the Planning and Zoning Commission will also be required
before those activities may be conducted .
If PRL Logistics is successful in obtaining this SUP as well as the necessary associated
Conditional Use Permits , the intent of Administration is to begin the process of creating a saleable
parcel of approximately 25 .32 acres through subdivision as depicted on Exhibit A pursuant to the
proposed purchase agreement for Tract A. Once the subdivision is recorded , an ordinance
authorizing the sale of the new parcel would be presented to Council for their consideration. The
sales price of the parcel would be fair market value as determined by a fee appraisal.
SPECIAL USE PERMIT -2017
The CITY OF KENAI (City) grants to PRL LOGISTIC, INC. (Permittee), whose address
is c/o RE/MAX of the Peninsula, 10672 Kenai Spur Hwy, #109 , Kenai, Alaska, 99611, a
Special Use Permit for the purpose of Aircraft Landing, Take Off, Parking and Loading
subject to the requirements and the conditions set forth below.
1. Premises. Pennittee shall have the non-exclusive right to use approximately 3 acres
as described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The tenn of this Permit shall be for not more than one year commencing on
May 18 , 2017 and ending on May 18 , 2018, or when Permittee obtains fee simple interest in
the property, whichever is sooner.
3. Permit Fees. Pennittee shall pay the following fees for the privileges extended to
Pennittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of $867 plus applicable sales tax.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of ten percent ( 10%) per annum, and penalty of ten percent
(10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the
date paid in full. Failure to timely make payments is grounds for termination of thi s Permit.
(See ii 22, Termination)
4. Use. Subject to conditions in Conditional Use Permits obtained separately by
Permittee from City, City auth ori zes Permittee 's non-exclusive use of the Premises for the
following purpose(s):
Aircraft Landing, Take Off, Parking and Loading. NOTE: This permit do es not gu,arant ee
the exclusive use of the area identified in Exhibit A. Th ese uses require separate
authoriz ations by Conditional Use Permits and no Aircraft Landing, Take Oft Parking and
Loading may occur until Conditional Use Permits authorizing the same are approved b y
th e City.
Use of the Pre1nise s by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Special Use Permit-PRL Logistic , Inc. Page 1 of 7
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
as those laws may be amended from time to time.
5. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
6. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
7. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below , to protect City and Permittee. Where specific limits are stated , the limits are the
minimum acceptable limits. If Permittee 's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations ,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1 ,000 ,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured .
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Pennittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Pennit.
C. 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 the Permittee uses on the Premises . The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated "A-" or
better by A.M . Best.
11. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements ,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
Special Use Permit-PRL Logistic , Inc. Page 2 of7
u1. Permittee shall request a waiver of subrogation against City from
Permittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2017. The effective date of the insurance shall be no later than July
1, 2017.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Pennit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
8. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Pennittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Subject
Property. Permittee shall provide all proper safeguards and shall assume all risks incurred
in its activities on and access to the Subject Property and its exercise of the privileges
granted in this Permit.
9. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai , its officers , agents, employees ,
and volunteers from and against all actions, damages, costs, liability, claims , losses,
judgments, penalties , and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City 's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected , to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee 's activities on or use of
the Premises . This shall be a continuing obligation and shall remain in effect after
termination of this Permit.
10. Fuel Spill Prevention and Response Plan . The City requires that Pennittee provide
adequate absorbent materials and tools available on the Premises in order to maintain a fuel
spill and response capability. Permittee shall be liable for any damage caused by and costs
associated with any spill , the cleanup of any spill , or the discharge of petrolewn products or
Special Use Pennit-PRL Logistic, Inc. Page 3of7
hazardous materials due to Permittee's use of the Premises.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times .
Permittee shall not store any solid waste, petroleum products , Hazardous Material as
defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or
any hazardous substance on any portion of the Premises. Permittee is aware that there are
significant penalties for improperly disposing of the Hazardous Materials and other waste
and for submitting false information regarding Hazardous Materials , including the
possibility of fine and imprisonment for knowing violations.
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
Premises.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Premises.
Permittee is subject to the National Fire Protection Associations' "Standard for Aircraft
Fueling Servicing" in NFPA 407 (1996 version), and the current version of the
International Fire Codes. All inspections of fuel faci liti es , by City or other regulating
entities to which Permittee is subject, shall be conducted to assure compliance with the fire
safety practices li sted in these referenced documents.
11. Hazardous Substances and Materials . Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials .
12. No Discrimination. Permittee shall not discriminate against any person because of
the person 's race, creed , color national origin, sex, age , or handicap. Permittee recogniz es
the right of City to take any action necessary to enforce this requirement of the Permit.
Pennittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
13 . Licenses and Permits. Permittee shall obtain and maintain all required federal ,
state, and local li censes , certificates, and other documents required for its operations under
the Permit. Pennittee shall provide proof of compli ance to C ity upon request by the City.
Special Use Permit-PRL Logistic, Inc. Page 4 of7
14. Compliance with Law. This Permit, and Permittee 's activities conducted under
this Pennit, is subject to all executive orders, policies and operational guidelines and all
applicable requirements of federal, state, and City statutes, ordinances, and regulations in
effect during the term of this Permit.
15. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee.
16. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee without prior written consent of the City.
17. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises.
18. No Waiver. Failure to insist upon a strict compliance with the terms, conditions ,
and requirements herein contained, or referred to, shall not constitute or be construed as a
wa iver or relinquishment of the right to exercise such terms, conditions, or requirements.
19. Personalty. Permittee shall remove any and all personal property, including all
vehicles , from the Premises at the termination of this Pennit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai
is not responsible for any damage to or theft of any personalty of Permittee or of its
customers.
20. Te rmination; Default. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. City may tenninate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
to a failure of Permittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
21. Definitions. As used in this Permit, "Permittee" means PRL Logistic , Inc. and
where the context reasonably indicates , its officers, agents , and employees .
CITY OF KENAI PRL LOGISTIC , INC.
Pau l Ostrander
City Manager
Date
Special Use Permit-PRL Logistic, Inc .
Date
Page 5 of7
ACKNOWLEDGMENTS
STA TE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of 2017, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
ST ATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of -----~ 2017, the foregoing
instrument was acknowledged before me by ______________ _
of PRL Logistic, Inc., on behalf of the State of Alaska.
Notary Public for Alaska
My Commiss ion Expires: ____ _
ATTEST:
City Clerk
SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Special Use Permit-PRL Logistic , Inc. Page 6 of7
Y:\Land Management\Dragseth Property\2017 0508 Dragseth SUP.docx
Special Use Permit-PRL Logistic, Inc . Page 7 of7
1 :2,400 ~ 1 inch= 200 feet 0 100 200
LOG IST ICS, IN C.
May 17 , 2017
Paul Ostrander
City Manager, City of Kenai
210 Fidalgo Ave
Kenai , Alaska 99611
Subject: PRL Logistics, Inc -Airstrip Operations
Dear Mr. Ostrander,
First of all , I would like to thank you for providing comments regarding the airstrip operations from Mr.
Tarbox in a letter dated, May 2 , 2017 . Since receipt of these questions , I contacted Mr. Tarbox and he
was gracious enough to meet with me at the proposed site and our Kenai facility for several hours. We
sincerely appreciate the opportunity to provide clarity on Mr. Tarbox 's concerns and will do so to the best
of our know ledge .
Secondly, it is with great regret that I cannot be in attendance at the City Council meeting today, May 1 ?'h,
2017 , as it is in direct conflict with my daughter's high school graduation events . If necessary, I will be
available to call into the meeting, as we discussed earlier.
Please see my address to Mr. Tarbox's concerns below, which in summary, appear to be in the areas of
safety and the environment.
Successful operations for PRL would be defined as the airship on "extended charter" contracts
serving remote project sites and villages throughout the state , as the airship does not produce
revenue when at the Kenai base. Consequently , the projected utilization of the airstrip by the airship
would be light, sporadic use for ancillary support activities , not key to our daily operations. The
airship's primary use is to be located and operating out of remote sites throughout Alaska . However
for Cook Inlet based project, it could potentially operate out of our Kenai Facility. The flight path from
the airstrip to the hangar is intended to be "po int to point"; depart the airfield vertically, reach an
altitude to avoid obstacles, then descend vertically onto the current PRL property. Our approach and
departure on the airstrip is planned to be over Cook Inlet, avoiding the estuary.
The intended use for fixed-wing operations is to allow clients and my associated fixed wing aircraft
the ability to fly directly into our property, utilizing tie downs and the existing hangar as done
historically, on an ad hoc basis. We do not expect th is to occur regularly or frequently. Additionally
fixed wing flights may take place in support of missions for the airship in emergency or extreme
situations where timeliness is key. Aircrafts of any kind will not land or take off in unsafe conditions
(e.g . flooding , adverse weather conditions , ect.)
To our knowledge, there are no plans to implement exclusion zones outside of our property
boundaries . Our expectation is that hunters will not shoot at or endanger aircraft and personnel
arriving and departing the airstrip, per existing federal , state, and municipal regulations . The airstrip is
lo cated within the currently established flight path of the Kenai Municipal Airport and it is our opinion
that operations of this airstrip would not incur any more risk than aircraft operating out of the Kenai
Airport. PRL does not intend to seek hazing permits and will not be implementing any seasonal
restrictions on the use of the airstrip. It does not appear that the Kenai Airport or this historically used
airstrip has had any impact on the migratory bird population or personal use fisheries in Kenai. Our
operations would not require the closure of the access road and it is our intent work openly and to
PRL Logistics, In c . 421 W . I " Avenue, Suite 250, Anchorage, AK 9950 I (907) 261 -9440 o r (907) 223 -1242
coordinate with the City of Kenai on access during operations. The intent is to keep and maintain the
existing runway as a grass airstrip and adhere to all federal , state , and municipal regulations . We
currently do not intend to utilize the property beyond its defined zoning of heavy industrial use and/or
conditions of the City of Kenai.
If you have further questions , please feel free to contact me anytime . PRL Logistics , Inc. is proud of our
reputation for safety, transparency , and successful project execution and we will continue to work
enthusiastically and in good faith with the City of Kenai. We anticipate that this operation will bring
significant benefits to the community of Kenai and surrounding areas.
Sincerely ,
Ron Hyde , President & CEO
PRL Log istics , Inc . 421 W . I " Aven ue, Suite 250 , A nc horage, AK 9950 I (907) 261-9440 or (907) 223-1242