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HomeMy WebLinkAbout2018-05-10 Airport Commission Packet KENAI AIRPORT COMMISSION REGULAR MEETING MAY 10, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city 1. CALL TO ORDER a. Pledge of Allegiance b. Roll Call c. Agenda Approval 2. SCHEDULED PUBLIC COMMENT (Public comment limited to ten (10) minutes per speaker) 3. UNSCHEDULED PUBLIC COMMENT (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) 4. APPROVAL OF MEETING SUMMARY a. April 12, 2018 ...............................................................................................Pg. 3 5. UNFINISHED BUSINESS a. Field of Flowers Sign Update b. Terminal Rehabilitation Project Update ........................................................Pg. 7 6. NEW BUSINESS a. Action/Approval – Special Use Permit to Empire Airlines, Inc. ...................Pg. 11 b. Action/Approval – Special Use Permit to CPD Alaska, LLC .......................... Pg. 21 c. Action/Approval – Special Use Permit to Everts Air Fuel, LLC ...................Pg. 31 d. Action/Approval – Special Use Permit to United Parcel Service, Inc .........Pg. 41 e. Action/Approval – Special Use Permit to HDL Engineering Consultants, LLC ....................................................................................................................Pg. 51 f. Action/Approval – Special Use Permit to Reddi Towing & Salvage, LLC ...Pg. 59 g. Action/Approval – Land Lease Application for the lease of lands within the Airport Reserve for property located at 413 N. Willow Street, and 421 N. Willow Street, Kenai, Alaska, 99611; and further described as Lots 5 and 6, Block 1, FBO Subdivision, submitted by Hilcorp Alaska, 3800 Centerpoint Dr., Suite 1400, Anchorage, Alaska 99503 ............................................................................Pg. 67 7. REPORTS a. Airport Manager b. City Council Liaison .....................................................................................Pg. 79 8. NEXT MEETING ATTENDANCE NOTIFICATION – June 14, 2018 9. COMMISSIONER COMMENTS AND QUESTIONS 10. ADDITIONAL PUBLIC COMMENT 11. INFORMATION ITEMS a. April 2018 Airport Managers Report ...........................................................Pg. 83 b. March 2018 Enplanements ..........................................................................Pg. 85 c. Kenai Historical Society April 2018 Newsletter .............................................Pg. 91 d. Recreational Use of Airport Land - September 2017 ....................................Pg. 101 12. ADJOURNMENT PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING: JACQUELYN -- 283-8231 OR, MARY -- 283-8281 KENAI AIRPORT COMMISSION REGULAR MEETING APRIL 12, 2018 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Feeken called the meeting to order at 6:06 p.m. a. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners Present: Commissioners Absent: G. Feeken, D. Pitts, P. Minelga, J. Bielefeld, K. Dodge J. Zirul, C. Henry Staff/Council Liaison Present: Airport Manager M. Bondurant, Admin. Assistant E. Shinn, Council Member Navarre A quorum was present. c. Agenda Approval MOTION: Commissioner Bielefeld MOVED to approve the agenda and Commissioner Minelga SECONDED the motion. There were no objections; SO ORDERED. 2. SCHEDULED PUBLIC COMMENT – None. 3. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. February 8, 2018 MOTION: Commissioner Minelga MOVED to approve the meeting summary from February 8, 2018 and Commissioner Dodge SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS a. Action/Approval – Field of Flowers Sign Page 3 of 115 Airport Commission April 12, 2018 Page 2 of 3 Seven designs were presented to the Commission. Commissioners expressed support in the Kenai Airport logo on the signs and focus on local aircrafts. There was discussion regarding the pros and cons of all the colors; concern expressed regarding potential color fading. Commissioners requested more accurate representation on the signs and have something prepared for further discussion at the next Commission meeting. 6. NEW BUSINESS a. Action/Approval – Special Use Permit to State of Alaska, Division of Forestry for Aircraft Loading and Parking It was clarified that this item was regarding the annual renewal of the Special Use Permit for operation at the Kenai Airport. MOTION: Commissioner Bielefeld MOVED to approve the Special Use Permit to the State of Alaska, Division of Forestry and Commissioner Pitts SECONDED. There were no objections, SO ORDERED. b. Action/Approval – Alaska Realty Group, LLC – Assignment of Lease to Mossy Oak Properties MOTION: Commissioner Bielefeld MOVED to approve assignment of lease to Mossy Oak Properties, and Commissioner Dodge SECONDED. There were no objections, SO ORDERED. c. Action/Approval – Recommending Approval to Lease Amendment Extending the Timeframe for Legacy Electric LLC, Lessee, to Complete Improvements as Set Forth in the Original Lease of Airport Reserve Lands for Property Located at 115 FBO Road, Kenai, Alaska 99611; Further Described as Lot 2, Block 1, General Aviation Apron MOTION: It was MOVED and SECONDED to approve first amendment to Legacy Electric for lease of airport reserve lands. There were no objections, SO ORDERED. 7. REPORTS a. Airport Manager – Bondurant reported the following: • Continuing to advertise available City property in the Petroleum News; • She attended the Alaska Public Employee Insurance Manager Training on April 2; • On April 13 at the Airport there would be the launch party for the Read on the Fly Program; • The post winter snow and ice control meeting was scheduled for April 18; • On April 23-25 the annual FAA Certification inspection would be conducted; Page 4 of 115 Airport Commission April 12, 2018 Page 3 of 3 • Assistant E. Shinn scheduled to attend the Great Alaska Aviation Gathering on May 4-6; • The Runway Safety Action Team Meeting scheduled for May 22; • She would be attending the Bi-Annual Alaska Region Division Workshop on June 6-7; • The Annual Kenai Peninsula Air Fair scheduled for June 9-18; • She met with the new City Planner, Elizabeth Appleby on April 12 and provided her a tour; and • She reminded members about the Volunteer Appreciation Dinner on April 19. b. City Council Liaison – Council Member Navarre had nothing to report but offered to take the sign design for immediate Council approval, if interested. 8. NEXT MEETING ATTENDANCE NOTIFICATION – May 10, 2018 9. COMMISSIONER COMMENTS AND QUESTIONS Commissioner Minelga requested Council Member Navarre to continue thinking about the need of rehabilitation of Willow Street, past the Airport, to Marathon Road. 10. ADDITIONAL PUBLIC COMMENT – None. 11. INFORMATION ITEMS a. February 2018 Airport Manager’s Report b. March 2018 Airport Manager’s Report c. February 2018 Enplanements d. January 2018 Airports Division News e. Civil Rights Thank You f. March 16, 2018 Email by Arctic Barnabas Ministries g. Volunteer Appreciation Dinner – April 19 12. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 6:55 p.m. Meeting summary prepared and submitted by: _____________________________________ Jacquelyn Kennedy Deputy City Clerk Page 5 of 115 (This page was intentionally left blank) Page 6 of 115 Municipal Airport 305 N. WILLOW ST. SURE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907.aB3737 Memo To: Airport Commission From: Mary Bondurant -Airport Manag Date: May1 ,2018 Subject: Update -Terminal Rehabilitation Project The City is moving forward with the complete design for the terminal rehabilitation project. Attached are two exhibits that show the existing terminal floor plan and the "preferred option " for the rehabilitation project that the design team approved . Please contact me if you have any questions. Attachments www.KenaiAirport.com Page 7 of 115 Com Room 142 S.F. SECOND FLOOR PLAN C'J r-R- UllOU ii ~./ \lend 12• S.F. !l!O l.f Wlli11ng Aree 485 S F r I I •ltfWtl .212S.F. A d d1l10N1I St<>rtge /Vea 300 S.F Ba99e91 &-ea~down Area 960 SF ai -~~ ila99"94 Clown 1.200 S .f I I I I [ ___________ ~;;--- D Addlleon8' DePMUfe Area ;1 17 S.F I I ~ I I C>ei>•r1l.lf• : Alea I it O 740 S.F : I I I I I I I ------------------~ : I I ------' Worttng ArH 400Sf '"0 ---0 D r D LEGEND ~~ ----- TENA!<T SPACES ----- AIRPORT A OMIN S~".__ _ j P UBLIC SPACE SUPPORT SPACES Additional StOftge A1ea 582 S.F. ----8agpage M1k..upArH 2.22• S.F , Airt.ne Tenant 1 1.463 S.F. \AirMM Tenant 2 \ 1.172 SF >, 0 r--------------, I lobby I A OOITIONAL 2' ADDED BEHIND TICKET COUNTERS 0 : 550 S.F : ) M-JJl ! '1ES 1 I -I I I ~~-~.:~_5!&---t ------11_ iii ii I Confer enc. Room >1 0 S .F TERMINAL FLOOR PLAN -PREFERRED OPTION ,, II I I I I I ·' I I I KENAI MUNICIPAL AIRPORT TERMINAL RENOVATION PROJECT ~N I FtestroorM 570 SF @eetA1 1 I~~ ,.. ""'c 0115201 • designstudios 130~8AYAC»0 SUllJ.30 l((JW~llllSl1 I'll to7.2ai.'MM h 1Wl7.ltS.!OJ3 ("'""..,_ ....... ~··«- Airport Admon . 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KENAI MUNICIPAL AIRPORT TERMINAL RENOVATION PROJECT =-= .. ----~: our. 01.1~.201& des ignstudios IJOfRM)fK;8AY AOit.D ~ll;S3CI llEMM.M."5AA M11 f'tl· 907.81.MM "' fl07."9S.toa Ell" ~~a .,._.,Q..__ ... ~ Page 9 of 115 (This page was intentionally left blank) Page 10 of 115 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. WU.OW ST. SUnE 200 KENAI, ALASKA 99611 'IB.EPHONE 907~7'951 FAX907~ Airport Commission ~ "'-~ Mary Bondurant -Airport Mana~~ Erica Shinn -Assistant ~ April 18 , 2018 Empire Airlines, Inc. -Special Use Permit The Empires Airlines, Inc., is requesting renewal of the special use permit for aircraft parking on approximately 11 ,2 50 square feet on the commercial apron. The special use permit will be effective for one year from Jul y 1, 2018 to June 30, 2019 . The rate is based on the table below passed by City Council at the May 18 , 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0 .3 57 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The Airport has a valid certificate of insurance on file and Empire Airlines, Inc. is current in all fees owed to the Airport. Does Commission recommend Council approve tlte Special Use Permit to EMPIRE AIRLINES, INC.? Attachment www.KenaiAirport.com Page 11 of 115 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to EMPIRE AIRLINES , INC . (Permittee), whose address is 11559 N . Atlas Road, Hayden, ID 83835, a Special Use Permit for the purpose of aircraft parking at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 11 ,250 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for I year commencing on July 1, 2017 and ending on June 30, 2018 . Regardless of the date of signature, this Permit shall be effective as of July 1, 2017. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $655.31 plus applicable sales tax . B. Proximity Card for Gate Access: In addition to the general permit fee , Permittee shall pay a deposit of one hundred dollars ($100 .00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo A venue, 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 often percent (10%) per annum, and penalty often 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 this Permit. (See ~ 22 , Termination) Special Use Permit-Empire Airlines, Inc. (Parking) Page I of 8 Page 12 of 115 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Aircraft Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re -assign Permittee, upon reasonable notice. to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises 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: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision . The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport , the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. Special Use Permit-Empire Airlines, Inc. (Parking) Page 2of8 Page 13 of 115 6. 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. 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. 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. 9. 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. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C . Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired , and non- owned motor vehicles the Permittee uses on the Airport. 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 , Special Use Permit-Empire Airlines , Inc. (Parking) Page 3of8 Page 14 of 115 or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. m. 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 Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand , Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee 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 Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. 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, Permittee 's access to the Kenai Municipal Airport, an d/or Permittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. Special Use Permit-Empire Airlines , Inc. (Parking) Page 4 of 8 Page 15 of 115 12 . Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport 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 petroleum products or hazardous materials due to Pennittee's use of the Apron and/or use of the Airport. 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 Pennittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Pennittee's activities. Permittee shall not store any personal property, 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 Airport. Pennittee 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 pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within fifty feet (50') of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 ( 1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Perrnittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents . 13. Hazardous Substances and Materials. Permittee shall confonn and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. Special Use Permit-Empire Airlines, Inc. (Parking) Page 5 of 8 Page 16 of 115 14. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Pem1ittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee 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. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee 's activities conducted under this Permit, 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. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City 's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. 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 or elsewhere at the Kenai Municipal Airport. 20. 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 waiver or relinquishment of the right to exercise such terms , conditions , or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles , from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. Special Use Permit-Empire Airlines, Inc. (Parking) Page 6of8 Page 17 of 115 22. Termination; Default. This Permit may be terminated by either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than thirty (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. 23 . Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Permittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten (10) days foJlowing the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200 , Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement wiJl be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded . In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shalJ be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Empire Airlines, Inc . and where the context reasonably indicates, its officers, agents , and employees. "Airport" means the Kenai Municipal Airport. Special Use Permit-Empire Airlines , Inc. (Parking) Page 7of8 Page 18 of 115 CITY OF KENAI Paul Ostrander City Manager Date EMPIRE AIRLINES, INC. Randy Lanfell Date Director of Flight Operations ACKNOWLEDGMENTS 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 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: ____ _ 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 RANDY LANFELL, Director of Flight Operations , Empire Airlines, Inc., on behalf of the State of Alaska. Approved as to Form: Scott Bloom City Attorney Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-Empire Airlines , Inc. (Parking) Page 8of8 Page 19 of 115 Empire Special Use Permit 3A Special Use Permit Approx. 12,000 sq. ft. 4 2A1 FedEx 7 8 3 7A-1 3A-1 Page 20 of 115 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. WU.OW ST. sum: 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX907~ Airport Commission .~ \ h Mary Bondurant -Airport Man~~ Erica Shinn -Assistant U April 18, 2017 CPD Alaska, LLC -Special Use Permit CPD Alaska, LLC. is requesting renewal of the special u se permit for aviation fueling on an apron fueling area consisting of approximately 35 ,00 0 square feet. The special use perm it wi ll be effective for one ye ar from Jul y 1, 2018 to June 30, 2019. The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The Airport has a valid certificate of insurance on file and CPD Alaska, LLC, is current in all fees owed to the Airport. Does Commission recommend Council approve the Special Use Permit to CPD ALASKA, LLC? Attachment www.KenaiAirport.com Page 21 of 115 SPECIAL USE PERMIT -2018 The CITY OF KENAI (City) grants to CROWLEY FUELS LLC (Permittee), whose address is 201 Arctic Slope Ave., Anchorage, AK 99518 , a Special Use Permit for the fueling area on the apron at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 35,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2018 and ending on June 30, 2019. Regardless of the date of signature , this Permit shall be effective as of July 1, 2018 . 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $2,537.50 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN : Finance Department, 210 Fidalgo A venue , 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 I 0% per annum, and penalty of 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 this Permit. (See ii 22 , Termination) 4. Use. City authorizes Permittee 's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-Crowley (Apron Fueling Area) Page 1of8 Page 22 of 115 Aviation Fueling on Apron Fueling Area. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. Citv reserves the right to re -assign Permittee, upon reasonable notice. to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned. Use of the Premises 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: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft. aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests , and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. 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 b y the Permittee under this Permit. Special Use Permit-Crowley (Apron Fueling Area) Page 2of8 Page 23 of 115 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonab le decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. 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. 9. 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. Permittee is further responsible to provide worker 's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on th e Airport. 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. 1i. 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 authori zed by the insurer to bind coverage on its behalf. Special Use Permit-Crowley (Apron Fueling Area) Page 3of8 Page 24 of 115 111. 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, 2018 . The effective date of the insurance shall be no later than July 1,2018. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand , Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel , employees, and persons acting on behalf of or under the au thority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. 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, Permittee 's access to the Kenai Municipal Airport, and/or Permittee 's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12 . Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for Special Use Permit-Crowley (Apron Fueling Area) Page 4of8 Page 25 of 115 any damage caused by and costs associated with any spill , the cleanup of any spill , or the discharge of petroleum products or hazardous materials due to Permittee's use of the Apron and/or use of the Airport. 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 must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities. Permittee shall not store any personal property, 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 Airport. 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 pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or d ispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp , inside an aircraft hangar, or within 50' of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230 -4 Aircraft Fuel Storage, Handling, and Dispensing on Airports , the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the current version of the International Fire Codes . All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. 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 . 14. No Discrimination. Permittee shall not discriminate against any person because of the person's race , creed, color national origin, sex , age, or handicap . Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable , and not unjustly Special Use Pemlit-Crowley (Apron Fueling Area) Page 5 of 8 Page 26 of 115 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. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses , certificates , and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, 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. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. 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 or elsewhere at the Kenai Municipal Airport. 20. 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 waiver or relinquishment of the right to exercise such terms, conditions , or requirements. 21. Personalty . Permittee shall remove any and all personal property, including all vehicles , from the Premises at the termination of this Permit (or any re newal 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. 22. Termination; Default. Thi s Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City ma y terminate the Permit immediately, or upon notice shorter than 30 days , to protect public health and safety or due Special Use Permit-Crowley (Apron Fueling Area) Page 6of8 Page 27 of 115 to a fa ilure 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 . 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing , Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates , charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month . Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200 , Kenai , AK 99611. 24 . Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes . Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published . Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Crowley Fuels LLC ., and where the context reasonably indicates , its officers, agents , and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander City Manager Date CROWLEY F UELS LLC R. Desmond Mayo Vice President Special Use Permit-Crowley (Apron Fueling Area) Date Page 7 of 8 Page 28 of 115 ACKNOWLEDGMENTS ST ATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018 , 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 , 2018, the foregoing instrument was acknowledged before me by R. Desmond Mayo , Vi ce President, Crowley Fuels LLC, on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: City Clerk SEAL: APPROVED AS TO FORM: Scott M. Bloom, City Attorney Special Use Permit-Crowley (Apron Fueling Area) Page 8of8 Page 29 of 115 EXHIBIT A ...... - Crowley I I EXHIBIT A Page 30 of 115 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. WILLOW ST. SUrrE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX907~ Airport Commission \) ~ ~ Mary Bondurant -Airpo~ Mart~'\JV Erica Shinn -Assistant ~ April 18, 2018 Everts Air Fuel, Inc. -Special Use Permit Everts Air Fuel, Inc., is requesting renewal of the special use permit for aircraft loading and parking on an area consisting of approximately 30,000 square feet. The special use permit will be effective for one year from July 1, 2018 to June 30, 2019. The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The Airport has a valid certificate of insurance on file and Everts Air Fuel, Inc. is current in all fees owed to the Airport. Does Commission recommend Council approve the Special Use Permit to Everts Air Fuel, Inc.? Attachment www.KenaiAirport.com Page 31 of 115 SPECIAL USE PERMIT -2018 The CITY OF KENAI (City) grants to EVERTS AIR FUEL, INC. (Permittee), whose address is P.O. Box 60908, Fairbanks, AK 99706, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2018 and ending on June 30, 2019. Regardless of the date of signature , this Permit shall be effective as of July 1, 2018. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $2,175.00 plus applicable sales tax. B. Proximity Card fo r Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100 .00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo A venue, 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 I 0% per annum, and penalty of 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 ofthis Permit. (See~ 22 , Termination) 4. Use. City authorizes Pennittee's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 1of8 Page 32 of 115 Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee. upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee 's use only and may not be transferred or assigned. Use of the Premises 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: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests , and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem , malfunction, or other occurrence that threatens the safety of the Airport , the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. 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. Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 2of8 Page 33 of 115 7. Coordin ati on wi th Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the A irport by Permittee . 8. 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. 9. 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. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence . This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. 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. 1i. 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. m. Permittee shall request a waiver of subrogation against City from Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 3of8 Page 34 of 115 Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. 1v . Provide the City with notification at least 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v . Evidence of insurance coverage must be submitted to City by July 1, 2018. The effective date of the insurance shall be no later than July 1, 2018. City may increase the amount or revise the type of required insw·ance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City . 10. Assumption of Risk . Permittee assumes full control and sole responsibility as between Permittee 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 Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. I ndemnity, 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, Permittee's access to the Kenai Municipal Airport, and/or Permittee 's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Spill Prevention and Response Plan . Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Perrnittee prov ide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and respons e capability. Permittee shall be liable for an y damage cau sed by and costs as sociated with any spill, the cleanup of any spill, or the Special Use Pennit-Everts Air Fuel , Inc . (Ramp Aircraft Loading & Parking) Page 4 o f 8 Page 35 of 115 discharge of petroleum products or hazardous materials due to Pennittee's use of the Apron and/or use of the Airport. 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 must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities. Permittee shall not store any personal property, 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 Airport. 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 pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50' of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. 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. 14. No Discrimination. Permittee shall not discriminate against any person because of the person 's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 5of8 Page 36 of 115 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. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances . This Permit, and Permittee 's activities conducted under this Permit, 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. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport 's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations . 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. 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 or elsewhere at the Kenai Municipal Airport. 20. 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 waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles , from the Premises at the tennination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded , such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers . 22 . Termination; Default. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice sh01ier than 30 days , to protect public health and safety or due Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 6of8 Page 37 of 115 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. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such , failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee . An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Everts Air Fuel , Inc. and where the context reasonably indicates, its officers, agents, and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander City Manager Date EVERTS AIR FUEL, INC. Dave Miller President Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Date Page7of8 Page 38 of 115 ACKNOWLEDGMENTS ST ATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018, 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 , 2018, the foregoing instrument was acknowledged before me by Dave Miller, President, Everts Air Fuel, Inc ., on behalf of the State of Alaska . Notary Public for Alaska My Commission Expires: ____ _ ATTEST: Jamie Heinz, City Clerk SEAL: APPROVED AS TO FORM: -~ Scott M . Bloom, City Attorney Special Use Permit-Everts Air Fue l, Inc. (Ramp Aircraft Loading & Parking) Page 8of8 Page 39 of 115 Everts Air Fuel 30 ,000 sqft --- EXHIBIT A I I EXHIBIT A Page 40 of 115 Municipal Airport: Memo To: Through: From: Date: Subject: 305 N. WIU.OW ST. SUITE 200 KENAI, ALASKA 99611 TEIS'HONE 907-283-7951 FAX 907..2833737 Airport Commission \\ ("\. ~ Mary Bondurant -Airport Mana~} Erica Shinn -Assistant ~ April 18, 2018 UPSCO United Parcel Service Co., Inc. -Special Use Permit UPSCO United Parcel Services CO., Inc. is requesting renewal of the special use permit of 4,000 square feet for aircraft loading and parking. The special use permit will be effective for one year from July 1, 2018 to June 30, 2019. The Airport has a valid certificate of insurance on file and UPSCO United Parcel Service Co., Inc., is current in all fees owed to the Airport. Does Commission recommend Council approve the Special Use Permit to UPSCO United Parcel Services Co., Inc.? Attachment www.KenaiAirport.com Page 41 of 115 SPECIAL USE PERMIT 2018 The CITY OF KENAI (City) grants to UPSCO United Parcel Service Co., Inc. (Permittee), whose address is 6200 Lock.heed Ave., Anchorage, AK 99502, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 4,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2018 and ending on June 30, 2019. Regardless of the date of signature, this Permit shall be effective as of July 1, 2018 . 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of$233 .00 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Pennittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Pennittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. 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 often percent (10%) per annum, and penalty often 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 this Permit. (See if 22, Termination) 4. Use. City authorizes Permittee 's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 1of8 Page 42 of 115 Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Pennittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Pennittee's use only and may not be transferred or assigned. Use of the Premises by Pennittee 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: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft. aircraft engine. propeller. or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Pennittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the env ironment, or the safety or integrity of any premises on the Airport. 6. 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 b y the Permittee under this Permit. Special Use Permit-UPSCO (A ircraft Loading & Parking) Page 2of8 Page 43 of 115 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. 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. 9. 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. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired , and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: t. All policies will be by a company/corporation currently rated "A-" or better by A .M. Best. IL Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. m . Pemlittee shall request a waiver of subrogation against City from Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 3of8 Page 44 of 115 Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. 1v. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2018. The effective date of the insurance shall be no later than July 1, 2018. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee 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 Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. 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, Permittee's access to the Kenai Municipal Airport, and/or Permittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12 . Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport 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 Special Use Pe1mit-UPSCO (Aircraft Loading & Parking) Page 4of8 Page 45 of 115 discharge of petroleum products or hazardous materials due to Permittee 's use of the Apron and/or use of the Airport. 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 must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities. Permittee shall not store any personal property, 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 Airport. 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 pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within fifty feet (50') of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 ( 1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities , by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13 . 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 . 14. No Discrimination. Pennittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a rea s onable, and not unjustly Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 5of8 Page 46 of 115 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. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses , certificates, and other documents required for its operations under the Permit. Permittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, 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. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport 's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17 . No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 19. 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 or elsewhere at the Kenai Municipal Airport. 20. 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 waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles , from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The C ity of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 22. Termination; Default. This Permit may be terminated b y either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice sh01ter than thirty (30) days , to protect public health Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 6of8 Page 47 of 115 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. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Perrnittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten (I 0) days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai , AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may resu lt from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means UPSCO , United Parcel Service Co., Inc. and where the context reasonably indicates , its officers , agents , and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander City Manager Date UPSCO Doug Berry Date Extended Centers Manager Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 7 of8 Page 48 of 115 ACKNOWLEDGMENTS ST ATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018, 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: ____ _ STATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2018, the foregoing instrument was acknowledged before me by Doug Berry, the Extended Centers Manager, on behalf ofUPSCO, United Parcel Service Co ., Inc. Approved as to Form: / Scott Bloom City Attorney Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 8of8 Page 49 of 115 Exhibit A Page 50 of 115 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. WU.OW ST. SUR'E 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX907~ Airport Commission \) "~ Mary Bondurant -Airport Man ~~ Erica Shinn -Assistant 0 April 18 , 2018 HDL Engineering Consultants, LLC. -Special Use Permit HDL Engineering Consultants , LLC is requesting renewal of the special use permit for soils test lab and equipment storage. The specia l use permit will be effective for three months from April 1, 2018 to June 30, 2018. The Airport has a valid certificate of insurance on file and HDL Engineering Consultants, LLC is current in all fees owed to the Airport. Does Commission recommend Council approve the Special Use Permit to HDL Engineering Consultants, LLC? Attachment www.KenaiAirport.com Page 51 of 115 SPECIAL USE PERMIT 2018 THE CITY OF KENAI (City) for the considerations and pursuant to the conditions and requirements set forth below, hereby grants to HDL ENGINEERING CONSULTANTS, LLC (Permittee), whose address is 10735 Kenai Spur Highway, Suite IB , Kenai, AK 99611, the non-exclusive right to use that area described below: Tract A FBO Subdivision consisting of approximately 8,040 square feet in the northwest comer (the Premises), including the approximately 930 square feet building located thereon. and as further shown in the attached Exhibit A. 1. TERM. This special use permit shall commence on April 1, 2018 and terminate June 30, 2018. 2. PERMIT FEES. The Permittee shall pay a permit fee of $543.00 plus applicable sales tax per month ($418.00 for building and land rent and $125.00 for electricity for the term of this Permit). In addition, the Permittee shall be charged $76 .10 per month for water and sewer until June 30, 2018 .. Permittee shall pay the City the monthly fee on or before the first day of each month beginning April 2018 . Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, 210 Fidalgo Avenue, Kenai, Alaska 99611 on or before the first of each month. In addition to the permit fee specified above , Pennittee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: A. Sales tax now enforced, or levied in the future , computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis ; B. All necessary licenses and permits , pay all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Permittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Permit, Special Use Permit-HDL Engineering Consultants, LLC Page I of 6 Page 52 of 115 provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided for by law. C. Interest at the rate of 8% per annum and penalties of I 0% of any amount of money owed under this Special Use Permit, which money or fee not paid on or before the date it becomes due. D. Costs and expenses incident to this Special Use Permit including, but not limited to, recording costs . 3. USE. The use of the Premises by Permittee is limited to the purposes specified herein: Permittee shall use the Premises only for a Soils test lab and equipment storage. Any and all needed building or site modifications must be separately approved in writing by the Airport Manager and the site and existing improvements must be restored to as good or better condition than the si te and improvements were in prior to modification by Permittee. This use is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. 4. INSURANCE. Permittee shall secure and keep in force adequate insurance, as stated below , to protect City and Permittee . Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits . A. Commercial General Liability insurance, including Premises, all operations, property damage, personal injury and death, broad-form contractual, with a 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. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the Special Use Permit-HDL Engineering Consultants, LLC Page 2of6 Page 53 of 115 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. 111. 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. 1v. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to Ci ty by April, 2018. The effective date of the insurance shall be no later than April, 2018. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submjt to City evidence of insurance coverage that meets the requirements of the City. 5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions , damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description , including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with its use of the Premises. The Permittee shall not be required to indemnify, defend, and hold harmless , the City of Kenai, its officers, agents , employees, and volunteers for the independent negligence of the City of Kenai. If there are Liabilities for the joint negligent act, or omission, or willful misconduct of the Special Use Permit-HDL Engineering Consultants, LLC Page 3of6 Page 54 of 115 Permittee and the City of Kenai, the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis. 6. PERMITTEE'S OBLIGATION TO PREVENT AND REMOVE LIENS. Perrnittee will not permit any liens including, but not limited to , mechanics', laborers', material men's, or mining liens or any other liens obtainable or available under existing law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed to have been furnished to Permittee or to the Permittee 's agents, contractors, or related entities, in connection with materials supplied to Permittee for its activities on the Premises and/or in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Permittee. Provided, however, the Perrnittee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee's own expense. 7. PERSONALITY. Permittee shall remove any and all personal prope1ty, including all vehicles , from the Premises at the termination of this Permit (or any renewal thereof). Personal prope1ty placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers . 8. FORBEARANCE. Failure to insist upon a strict compliance with the terms , conditions, and/or any requirement herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions or requirements. 9. TERMINATION; DEFAULT. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 30 days , to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. Special Use Perrnit-HDL Engineering Consultants, LLC Page 4of6 Page 55 of 115 10. NO DISCRIMINATION. Pennittee will not discriminate on the grounds of race, color, religion , national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 11. ASSIGNMENT. Pennittee may not assign, by grant or implication, the whole or any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Pennittee responsible for performing any obligation under this Permit which an assignee fails to perform. 12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its use of the Premises. 13. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint venturer of Pennittee in the conduct of its business or activities on the Premises. 14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this permit shall survive th.e cancellation, termination or expiration of this permit. 15. AUTHORITY. By signing this Permit, Permittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing thi s Permit is duly authorized by the company to bind the company hereunder. CITY OF KENAI By:~~~~~~~~~~ Paul Ostrander City Manager HDL ENGINEERING CONSULT ANTS, LLC By:_~~~~~~~~~ Dennis Linnell Principal Civil Engineer Special Use Perrnit-HDL Eng ineerin g Consultants , LLC Page 5of6 Page 56 of 115 ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the __ day of 2018, Paul Ostrander, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: ____ _ STATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2018 , the foregoing instrument was acknowledged before me by Dennis Linnell, Principal Civil Engineer, HDL Engineering Consultants, LLC, on behalf of the Company. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: Jamie Heinz, City Clerk SEAL: APPROVED AS TO FORM: ./ ,-..--__,,,,,~~- '------ Scott M. Bloom, City Attorney Special Use Permit-HDL Engineering Consultants , LLC Page 6of6 Page 57 of 115 '$_· Tract A FBO Subdivision 0 75 150 300 Feet ~~3 • • Cit ..,. r.k.ot,i, -~ '· . ~!/ ~*~ • .. , i11 ·c.-. . 't.k.s iY • ~ ~'et? . "I> ~0,o .,, -, . :,,-,reil').. ,. ~ ~t'~ l!it..,. ·~~ : . 'ii ~J· ')<!. I City of Kenai Shop Yard HDL Engineering Special Use Permit Area Exhibit A The information depicted here on is for graphic representation only of the best available sources. The City of Kenai assu mes no re sponsibility for errors on this map. Page 58 of 115 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. WU.OW ST. SUITE 200 KENAI, ALASKA 99611 lELEPHONE 907-283-7951 FAX 907-2833737 Airport Commission \\ "' (), Mary Bondurant -Airport Manag~ Erica Shinn -Assistant ~ April 24, 2018 Reddi Towing & Salvage, LLC -Special Use Permit Charles Rediski, is requesting a special use permit for Lot 4, Block 5, Cook Inlet Industrial Park, for the period of June 1, 2018 through May 31 , 2019. Mr. Rediske has used this as an impound lot since 2007. The rate each month is $405 plus applicable sales tax. Mr. Rediski is current in all fees owed to the Airport and has a valid certificate of insurance. Does Commission recommend Council approve the Special Use Permit to Reddi Towing & Salvage, LLC? Attachment www.KenaiAirport.com Page 59 of 115 SPECIAL USE PERMIT 2018 THE CITY OF KENAI (City) for the considerations and pursuant to the conditions and requirements set forth below, hereby grants to REDDI TOWING & SALVAGE, LLC (Permittee), whose address is P.O. Box 7079, Nikiski , AK 99635, the non-exclusive right to use that area described below: Lot 4, Block 5, Cook Inlet Industrial Park and adjacent 50 ' wide right-of-way, according to Plat No. 1448 (the Premises), and as further shown in the attached Exhibit A . 1. TERM. This special use permit shall commence on June 1, 2018 , and terminate May 31 , 2019. 2. PERMIT FEES. The Permittee shall be charged a permit fee of$405 plus applicable sales tax per month this Permit is in effect. Permittee shall pay the City the monthly fee on or before the first day of each month beginning June 1, 2018. Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, 210 Fidalgo Avenue, Kenai , Alaska 99611 on or before the first of each month. In addition to the permit fee specified above, Permittee agrees to pay to the appropriate parties all levies, assessments , and charges as hereinafter provided : A . Sales tax now enforced, or levied in the future, computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis; B. All necessary licenses and pennits, pay all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Permittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Permit, provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided for by law. Special Use Permit-Reddi Towing & Salvage, LLC Page I of 6 Page 60 of 115 C. Interest at the rate of 8% per annum and penalties of 10% of any amount of money owed under this Special Use Permit, which money or fee not paid on or before the date it becomes due . D. Costs and expenses incident to this Special Use Permit including, but not limited to , recording costs . 3. U SE . The use of the Premises by Permittee is limited to the purpose specified: Impound Lot. This use is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Use of the Premises is subject to the following conditions: A. Permittee shall maintain the fence on the Premises in good repair. Any fence repair and/or maintenance shall be completed from insi de the fence. B. Permittee shall use the Premises only for the storage of impounded vehicles (no wrecked or junk vehicles). 4. INSURANCE . Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Garage Liability or Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, 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. Permittee is fu 1ther responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000 ,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non-owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. Special Use Permit-Reddi Towing & Salvage, LLC Page 2of6 Page 61 of 115 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. IL Pennittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. 111. Pennittee 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 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by June 1, 2018. The effective date of the insurance shall be no later than June 1,2018. VJ. This insurance shall be primary and exclusive of any other insurance carried by the City of Kenai. This insurance shall be without limitation on the time within which the resulting loss , damage, or injury is actually sustained. 5. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend , and hold harmless , the City of Kenai , its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses , judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incmTed by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with its use of the Premises. This shall be a continuing release and shall remain in effect after termination of this Special Use Permit. 6. PERMITTEE'S OBLIGATION TO PREVENT AND REMOVE LIENS. Pennittee will not permit any liens including, but not limited to , mechanics', laborers', material men's, or mining liens or any other liens obtainable or available under existing Special Use Pennit-Reddi Towing & Salvage, LLC Page 3of6 Page 62 of 115 law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed to have been furnished to Permittee or to the Permittee's agents, contractors, or related entities , in connection with materials supplied to Permittee for its activities on the Premises and/or in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Permittee. Provided, however, the Permittee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee's own expense. 7. PERSONALITY. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or u sed upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 8. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions, and/or any requirement herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions or requirements. 9. TERMINATION; DEFAULT. This Permit may be terminated by either party hereto by giving 60 days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than 60 days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 10. NO DISCRIMINATION. Pem1ittee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law . Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 11. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole or Special Use Permit-Reddi Towing & Salvage, LLC Page 4of6 Page 63 of 115 any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this Permit which an assignee fails to perform. 12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its use of the Premises. 13. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises. 14. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this permit shall survive the cancellati on, termination or expiration of this permit. 15. AUTHORITY. By signing this Permit, Permittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the company to bind the company hereunder. CITY OF KENAI REDDI TOWING & SALVAGE LLC By: ---------~ By: ~---~~~-~~ Paul Ostrander Charles Rediske City Manager Member ACKNOWLEDGMENTS STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on the __ day of , 2018 , Paul Ostrander, City Manager, of the City of Kenai , an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-Reddi Towing & Salvage, LLC Page 5of6 Page 64 of 115 ST ATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2018 , the foregoing instrument was acknowledged before me by Charles Rediske, Member of Reddi Towing & Salvage, LLC , and Alaska limited liability company, on behalf of the Company. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: Jamie Heinz, City Clerk SEAL: APPROVED AS TO FORM: >-------- Sc'ott M. Bloom, City Attorney Y:\A.irpo rt\SUP\Reddi Towing\20 17 03 17 Reddi Towing SUP.docx Special Use Permit-Reddi To wing & Salvage, LLC Page 6of6 Page 65 of 115 Ir\ I \ . .._, TR.A TR. A-1 Exhibit A ND . Page 66 of 115 Municipal A irport MEMO 305 N. WR.LOW ST. SUITT: 200 KENAI, ALASKA 99611 TB.EPHONE 907..283-7951 FAX907~ To: Airport Commission Thru: Paul Ostrander -City Manage From: Mary Bondurant -Airport Manag Date: April 25 , 2018 Subject: Lease Application-Lots 5 & 6, Block, FBO Subdivision This lease application was reviewed in conjunction with the FAA approved February 28 , 2018 Airport Layout Plan based on the August 2017 Master Plan. I have reviewed the above lease application in accordance with KMC 21.10.060: ./ Airport Layout Plan : Sheet 13 of 19, Existing Land Use -designates land as undeveloped subdivided lots; Sheet 14 of 16 , Future Land Use -designates land as commercial and non -commercial aviation; areas used for aviation activities requiring taxiway access such as air cargo facilities, aircraft parking aprons, corporate jet support facilities, fueling facilities, airline and air taxi hangar/office facilities, government and military aviation facilities and primarily for large aircraft (more than 12,500 pounds) .. The proposed use is Aeronautical -private use by Hilcorp for passenger and cargo transportation . This use complies with the land use defin ition abo ve . Page 1 Page 67 of 115 Sheet 15 of 19, Existing Zoning -Airport Light Industrial; The ALI Zone is established by Ordinance No. 2884-2016 to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses, densities and reducing hazards that may endanger the lives and property of the public and aviation users. Industrial and Commercial uses which are usually compatible with av iation users are permitted which have no nuisance effects upon surrounding property, or which may be controlled to prevent nuisance effects upon surrounding property. New residential uses are not permitted in this zone because it is intended that lots classified in the ALI Zone are reserved for aviation-related commercial and industria l uses . Meets the requirements for KMC 14.20.065 Airport Light Industrial Zone . Sheet 16 of 19, Future Zoning -Airport Light Industrial; ALI defined above . Meets the requirements for KMC 14.20 .065 Airport Light Industrial Zone . ../ Airport Master Plan: Defines the land as commercial and non-commercial aviation; areas used for aviation activities requiring taxiway access such as air cargo facilities, aircraft parking aprons, corporate jet support facilities, fueling facilities , airline and air taxi hangar/office facilities, government and military aviation facilities and primarily for large aircraft (more than 12,500 pounds) . ../ FAA Regulations: o Airport perimeter fence - 8 ' security fence that meets FAA and TSA Security requirements . All perimeter gates must remain closed at all times . 49 CFR 139.335 o Vehicle parking lot to be contained to prevent unauthorized access to airfield. All public is restricted from all air operations areas and all other areas except the terminal or loading area or such other areas as may be designated by the Airport Manager or designated representative. 49 CFR 139.335 Illustration shows an 8' security fence around the vehicle parking lot preventing unauthorized access to the airfield . ../ Al P Grant Assurances : No conflict appears . Page 2 Page 68 of 115 ./ Airport Operations: o Use by the Lessee of the commercial apron in front of the lease lot (west side) will be deemed "exclusive use" and subject to the rates and fees established by the City. o Site plan with setbacks and the location of the ramp/hangar to the Building Restriction Line (BRL) adjacent to the commercial apron appears to reflect no conflict. The BRL line is 100 feet back to the east of the commercial apron . o Lessee must comply with sector-specific requirements of the Kenai Airport 's Multi Sector General Permit #AKR06AD35 if conducting an industrial activity with a SIC code in the range 451 2 -458 1 (Air Transportation Fa c ility). Removing the lot line will provide the square footage required to accommodate Hilcorp 's proposed construction project. This project will create new land lease revenue , employment opportunities, and be an asset to the Kenai Airport and the City of Kenai. Please contact me if you have any questions. Cc: Elizabeth Appleby, Planner Wilma Anderson , Planning Assistant Page 3 Page 69 of 115 'V/ff a;-e «1/th a Pa.s'~ e~ «1/th a Fat~ JJ 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283 -3014 www. kenai. city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT : Planning and Zoning Commission Paul Ostrander, City Manager ?· O · Elizabeth Appleby, City Planner 6A May 2, 2018 Kenai Municipal Airport Reserve Lease Application-413 and 421 North Willow St., Lots 5 and 6, Block 1, FBO Subdivision I have reviewed t he attached lease application submitted by Hilcorp Alaska , LLC (Hilcorp) for compliance with Kenai Municipal Code (KMC) for zoning , the Imagine Kenai 2030 Comprehens ive Plan, and the Airport Layout Plan . Hi lcorp plans for lot improvements to be completed at the end of 2019 to support o il and gas operations in Cook Inlet. The lease term would be 35 years, with a start date in fall 2018 . Improvements include a ramp , fuel farm , office spaces, hangar, gravel parking for 50 vehicles, and an eight (8) -foot high security fence around the vehicle parking lot. Hilcorp has submitted the application filing fee and is in compliance with obligations due to the City and Kenai Peninsula Borough. The site plan shows the proposed hangar will cross the property line between the two lots. The. property line would be vacated prior to construction of the proposed hangar, requiring recommendation from the Planning and Zoning Commission to the Kenai Peninsula Borough for approval of the p lat. Pursuant to KMC 14.20 .065 , the parcel is within the Airport Light Industri al (ALI) Zone . The purpose of the ALI Zone is to protect the viability of the Kenai Mun icipa l Airport as a significant reso urce to the commun ity by encouraging compatible land uses and reducing hazards that may endanger the li ves and property of the public and aviation users. The proposed aeronautical use by Hilcorp for passenger and cargo transportation would be a permitted use in the ALI Zone. The Imagine Kenai 2030 Comprehens ive Plan outlines goals, objectives , and action items for the C ity, including some pertaining to the Kenai Municipal Airport: Page 70 of 115 Page 2 of 2 Lease Appl ication -Lots 5 and 6 , Block 1, FBO Subdivision • Objective T-1 : Support future development near or adjacent to the airport when such development is in alignment with the Kenai Municipal Airport's primary mission, "To be the commercial air transportation gateway to the Kenai Peninsula Borough and Cook Inlet." • Action Item: Support the Airport's marketing strategy to actively recruit development on Airport Industrial Park leases. The proposed use by Hilcorp complies with the Imagine Kenai 2030 Comprehensive Plan in that it supports development on lease lots and the development is in alignment with the Kenai Municipal Airport mission . The Airport Land Use Plan was developed to identify the highest and best uses of Kenai Municipal Airport land . The Airport Land Use Plan discusses the need for more hangar facilities , promoting use of the Kenai Municipal Airport by service providers and the traveling public, leasing land , and enhancing the opportunities for local economic development. The proposed use by Hilcorp complies with the Airport Land Use Plan . It would enhance local economic development and provide more hangar space. Mary Bondurant, Airport Manager, recommended approval of the lease application by the Airport Commission after review for compliance with the Airport Land Use Plan, Airport Layout Plan, Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program grant assurances, and Airport operations . I recommend approval of the lease application at the May gth meeting of the Planning and Zoning Commission , contingent upon Hilcorp submitting a plat to the Planning and Zoning Commission showing a vacation of the property line the proposed hangar would cross . Thank you for your consideration . Cc : Mary Bondurant, Airport Manager Page 71 of 115 ff Hilcorp Alaska, LLC April 16,2018 Wilma E. Anderson C ity of Kenai 210 Fidalgo Avenue Kenai, Alaska 99611 via: Email and USPS Re: Kenai Municipal Airport Re serve Lease Application ResubmittaJ Dear Willie: Kevin A. Tabler Land Manager, Alaska Post Office Box 244027 Ancho rage , AK 99524-4027 3800 Centerpolnt Drive Sui te 1400 Anchorage, AK 99503 Phone : 907/777-8379 Fax : 907/777-8580 ktabler@hllcorp.com Hilcorp Alaska, LLC (Hilcorp) is in receipt of your March 19, 2018, letter advising of a change in Kenai Municipal Code 21.10. (Leasing of Airport Reserve Lands) by Ordinance 2998-2018. The effect of such action has rendered Hilcorp 's original August 18, 2016, Kenai Municipal Airpoti Reserve Lease Application expired. Attached for your consideration and approval is a new lease application filed pmsuant to the revised Kenai Municipal Code for Lots 5 and 6, FBO Subdivision. As part of this application, I have incorporated two (2) new plats; one (1) depicting an aerial view of Lots 5 and 6 in relation to the Kenai Municipal Airpott and two (2), a specific site plan depicting our proposed improvements as they relate to Lots 5 and 6. Additionally, I have attached a copy of our original August 18, 2016, Lease Application submittal. The contents of which are detailed below and provide supportive information for your review . The only deviation from the original Lease Application and this proposed new application , is the application fo1m itself, staiting date for property improvements and the submittal of the abovementioned updated and revised plats. Contents of original August 18, 2016 Lease Application: Letter to the city of Kenai stating our intent to develop the site Completed lease application Completed development plan checklist Site plan, which is no t filled in because it doesn't app ly Simplified fac ility drawing Kenai airpmt FBO Subdivision survey -for reference FAA Form 7460-1 Hilcorp Check Number #008204938 in the required amount of$4,100.000 Kenai Peninsu la Borough Tax Compliance Ce1iificat ion Page 72 of 115 Wilma E. Anderson Letter Kenai Municipal Airpmt Reserve Lease App lication April 16, 2018 Page 2 of2 It is our belief, with what Hilcorp has submitted herein, this submittal constitutes a complete Kenai Municipal Airport Reserve Lease Application package. We look forward to your accelerated review of same as much discussion and review has already taken place regarding the merits of our proposed lease application. Attachments cc: Josh Goodwin/HAK Marc Bond/HAK Page 73 of 115 Mailing Address : Phone Number(s): E-mail : (Optional) kt Name to Appear on Lease: Mailing Address: City of Kenai Kenai Municipal Airport Land Lease Application Application for: 0 New Lea se 0Amendme nt Extension/Ren ewal q State: A''-Zip Code : Cj.,- Phone Number(s): Home Phone: ( Work/ Message Phone : (,07) 177 _ 'O' 79 E-mail : (Optional) Type of Applicant: Dindividual (at least 18 years o ~Limited Liability Company (LLC) D Government Description of Property and Term Requested D Corporation Oother _____ _ Legal Description of Property: !<"~~.,., ,.,tu"' 1""'4.Nli't1,... /4•raP"fLc suia.v "-Y 8J.o£.k5 ~fl--<l J.."<-H r-~p D .I M,.._ AIOa.T~ o f.7 ntS.... ;'f l lf..P1ra.:r T~l"\Jrt'- Does the Property Require Subdivision? (if Yes, answer next two questions) ~Y ES D NO Are you prepared to be responsible for all costs associated with subdivision ? ).. YES D NO Do you believe the proposed subdivision would serve other Airport purposes ? 0 YES NO Do you have or have you ever had a Lease with the City of Kenai? DYES ~N O If Yes , please provide description of property leased (e.g. legal or physical description): Is this application for renewal or term extension of an existing lease? DYES ~N O If Yes, please provide a description of the property leased: Proposed Use (check one): ~Aeronautical D Non-Aeronautical Do you plan to construct new or additional improvements? ~Y ES ONO Page 74 of 115 If yes, will the improvement change or alter the use under an existing lease? If yes, what is the new proposed use? If yes, what is the type of improvement? (e .g. building improvement. land improvement) ~ >J ,,..~ &&) Alop.."1') If yes, what is the nature of the improvements? (e .g. maintenance , landscaping, new construction) List of proposed use and business activities: ~tvtt4TL "'' e'r H''-'4"'"' Pea.. PrA-.sc.A.J''"-6-'"'l'l-•c 7~.,.""~,..~r.,.r1e>.._; Lease Extensi on or Renewal Method to determ ine value of improvements/term for a lease renewal or expiring lease : 0Professional estimate of the remaining useful life of the principle improvement on the property 0Market value appraisal of the principle improvement on the property D Purchase price of improvements Submitting an application for a lease does not give the applicant a right to lease or use the l and requested in the application . The application shall expire twelve (12) months after the date the application has been made if the City and the applicant have not, by that time , entered into a lease, unless the City Council for good cause grants an extension for a period not to exceed six (6) months. The City has no obligation to amend, renew or extend a lease and may decline to do so upon making specific findings as to why a lease renewal , extension , or amendment is not in the best interest of the City Signature: YY~ck -Date : 0 ~/1 -./-:aQI 6 ?/ v Print Name: ..:ro~tw."" 'll. ~o]) <.>•-' Title: 1)1n~1~ 'Or AU I A"f 10 £.._,, Page 75 of 115 ---. ~ ...... ·-~ _...:_ ~ ~·~ .. . .:- .~ ~ #' ':,, ,,, •• .(:)..... ~:· "~ .# ~ ~ --~ '. -t..::., . ~-·'l I, ( ,,. ..... $ i §• " & ... '!' .. ~ ... ~" ,.,. "'..:>' .. ... ' ' r, ' ~!qp ·"t -~ ~ . •Jt' ~~ , ( ~ ~- ,.),,. ... ·.~ ~ 1i 1RVP.l 1 inch • 300 feet N A Page 76 of 115 . {:) . . ;:. (/ f/~e..y •• /;) ~· . "'v. -.Vi.ff,o Page 77 of 115 U Hilcorp Alaska, LLC August 18 , 2016 Willie Anderson City of Kenai 210 Fidalgo A venue Kenai, Alaska 99611 Re: Kenai Municipal Airport Reserve Lease Application Dear Willie: Ke vin A. Tabler Land Manager, Alaska Pos t Office Bo x 244027 Anch orage, AK 99524-4027 3800 Centerpolnt Drive Su ite 1400 Anchorage, AK 99503 Phone : 907/777-8379 Fax: 907/777-8580 k t abler@hllcorp.com Attached and detailed below for you review and acceptance is what Hilcorp Alaska, LLC (Hilcorp) believes to be a complete Kenai Municipal Airp01t Reserve Lease Application package. Letter to the city of Kenai stating our intent to develop the site Completed lease application Completed development plan checklist Site plan, which is not filled in because it doesn't apply Simplified facility drawing Kenai airport FBO Subdivision survey -for reference FAA F01m 7460-1 Hilcorp Check Number #008204938 in the required amount of $4, 100 .000 Kenai Peninsula Borough Tax Compliance Ce1tification Please advise if you require additiona l inf01mation to deem this application complete. cc: Keith Nickles/HAK Bill Swenson/HEC Marc Bond/RAK Page 78 of 115 Kenai City Council Meeting Page 1 of 4 April 18, 2018 ACTION AGENDA KENAI CITY COUNCIL – REGULAR MEETING APRIL 18, 2018 – 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) 1. Chelsea Plagge, KPBSD Student – Overview of Skills USA Competition, an Opportunity for Students to Learn Hands on Skills. 2. Mayzie Potton and Leah Johnson, KPBSD Students – Overview of their “T-Books” Organization that fundraises to provide literature to schools and students in several communities. C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY. Ordinance No. 3013-2018 - Increasing Estimated Revenues and Appropriations by $286,288 in the Airport Special Revenue and Airport Terminal Improvements Capital Project Funds for Increased Costs Associated with Phase II of the Project to Design the Airport Terminal Rehabilitation Project and Authorizing a Contract Amendment with Wince-Corthell-Bryson for Completion of Phase II of the Project’s Design. (Administration) 2. ENACTED UNANIMOUSLY. Ordinance No. 3014-2018 – Making Housekeeping Amendments to KMC Section 3.25.060- Adoption Procedure, 3.25.090- Protective Custody, 3.30.030-Quarantine of Individual Animal, 4.25.020- Fee Schedule, 12.25.030- Leaving of Junk or Illegally Parked Vehicles, 13.30.090-Sign Bearing the Page 79 of 115 Kenai City Council Meeting Page 2 of 4 April 18, 2018 Legend, 18.25.030 – Inspection Fee, and 23.50.010- Employee Classification. (Legal and City Clerk) E. MINUTES 1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of April 4, 2018 F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Bills to be Ratified. 2. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Purchase Orders Exceeding $15,000. 3. APPROVED BY THE CONSENT AGENDA. *Action/Approval – Non-Objection to Liquor License Renewal for: • George’s Casino Lounge • Pizza Hut • Wal-Mart Supercenter #4474 4. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 05/02/2018. *Ordinance No. 3015-2018 – Accepting and Appropriating a Volunteer Fire Assistance (VFA) Grant From the United States Department of Agriculture Forest Service Passed Through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. (Administration) 5. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 05/02/2018. *Ordinance No. 3016-2018 – Increasing Estimated Revenues and Appropriations by $4,434.88 in the General Fund – Police Department for State Traffic Grant Overtime Expenditures. (Administration) 6. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 05/02/2018. *Ordinance No. 3017-2018 – Accepting Drug Seizure Funds Forfeited to the City in the Amount of $4,709.63 and Appropriating the Funds for the Purchase of Police Department Small Tools. (Administration) 7. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 05/02/2018. *Ordinance No. 3018-2018 – Amending Kenai Municipal Code Title 23-Personnel Regulations, to Create a New Class of Employees Defined as “Department Head Service” that Includes Employees who Work at Will and are Compensated within A Salary Range Approved by the Council, and Making other Housekeeping Changes. (Council Member Navarre) 8. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 05/02/2018. *Ordinance No. 3019-2018 – Increasing Estimated Revenues and Appropriation in the General and Municipal Roadway Improvements Capital Project Funds and Page 80 of 115 Kenai City Council Meeting Page 3 of 4 April 18, 2018 Awarding A Contract To Complete The Ryan’s Creek Outfall Repair Project To Foster Construction, Inc. (Administration) 9. INTRODUCED BY CONSENT AGENDA/PUBLIC HEARING 05/02/2018. *Ordinance No. 3020-2018 – Increasing Estimated Revenues and Appropriations in the Water & Sewer Special Revenue and Water & Sewer Improvements Capital Project Funds and Authorizing a Change Order to the Contract with the State of Alaska Department of Transportation for the Project Entitled “Spur Highway Water Main Replacement – Spur Highway and Shotgun Drive”. (Administration) 10. SPECIAL USE PERMIT APPROVED UNANIMOUSLY. Action/Approval – Approving a Special Use Permit to the State of Alaska, Department of Natural Resources, Division of Forestry, for Aircraft Parking and Loading on the Apron. (Administration) 11. CONSENT TO ASSIGNMENT OF LEASE APPROVED UNANIMOUSLY. Action/Approval – Consenting to Assignment of Kenai Municipal Airport Lease from Alaska Realty Group, Inc. to Mossy Oak Properties (Administration) 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 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. M. PENDING ITEMS – None. N. ADJOURNMENT **************************************************************************************************** Page 81 of 115 Kenai City Council Meeting Page 4 of 4 April 18, 2018 INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review 2. Kenai Historical Society – March Newsletter 3. Frontier Community Services World Series of Baseball 4. Certificate and Award of Financial Reporting Achievement 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. Page 82 of 115 'Viti'~ «1/t/z, a PaJ'~ Ot'tj «1/t/z, a Fatu.re 11 210 Fidalgo Ave, Kenai, Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai .city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Mary Bondurant -Airport Manager April 6, 2018 April Mid-month Report 2016 Fencing Rehabilitation -Wince-Corthell-Bryson submitted the plans and specs along with the Construction Safety and Phasing Plan through the FAA OEAAA website for final review and comment. 2017 Terminal Rehabilitation Project-Design Grant-City and Airport Administration met with the FAA on March 29, 2018 to discuss the funding, bidding process and timeline for this project. 2017 Snow Removal Equipment -The new multipurpose unit was received the week of March 5th. Oshkosh training is complete. The closeout process with begin on this grant. In-house Activities - Marketing of City Lands -The full-page color ad for the Petroleum News' annual Explorers magazine is complete . This magazine has a shelf life of 12 months. In addition to a distribution list of 8,000 subscribers, the magazine will also be displayed at oil and gas conferences in Alaska and the Lower 48. We will also have the ad in a PDF file for our use. April 2-3, 2018 -The Airport Manager attended the APEi Manager training at Soldotna City Hall. The training included supervisor's training on performance evaluations, coaching and mentoring, employee discrimination and harassment awareness, along with documentation guidelines. Page 83 of 115 Page 2 of 2 April Mid-month April 13, 2018 -The Kenai Airport is excited to be the 8th airport to participate in the Read on the Fly literacy program. Partnering with AKonthe GO and the Kenai Library, children will be able to pick up a book and read while traveling within and through Alaska. Special thank you to Mary Jo Joiner, Kenai City Librarian for providing the books, and Mr. Gordon and the Soldotna High School Shop Classes for building the bookshelf to the specifications. April 18, 2018 -There will be a post-winter snow and ice control meeting at 9am in the Kenai City Council Chambers. Airport staff, tenants and contractors will meet to discuss how snow and ice control, sanding, and de-icing operations went this season. April 23-25, 2018 -The annual FAA Certification Inspection will be conducted this week. The Airport's project engineer will also be in attendance. The inspector will be reviewing ARFF training curriculum, inspection records of all fueling agent facilities, Airport Emergency Plan, 49 CFR 139 Certification Manual, self-inspections, NOTAM log, runway safety areas, ground vehicle driving records, airport master record, Wildlife Hazard Management Plan, etc. May 4-6, 2018 Great Alaska Gathering -The Airport Manager and Administrative Assistant will be attending this trade show in Anchorage at the Fed Ex Hangar. This is a great opportunity to network with aviation enthusiasts to promote the airport, its lands, future developments, and the Kenai Peninsula Air Fair. Stop by and visit us at booth 191 ! May 22, 2018 Runway Safety Action Team -This meeting will be held in Kenai City Council Chambers at 2:30pm. Invitations will be mailed to Air Traffic Control Tower and Flight Service Station personnel along with local pilots and other airport users . The team consists of FAA officials who inspect the airfield and review operating procedures to enhance safety at a towered airport. June 6-7, 2018 -The bi-annual Alaskan Region Airports Division Workshop will be held in Anchorage. Anticipated topics include the AIP program, guidance, compliance, environmental, planning , lessons learned, regional and national perspectives, and more! June 9, 2018 -it's coming!! The 18th Annual Kenai Peninsula Air Fair! Airport staff is busy working on the poster, activities, and vendors. Page 84 of 115 March Enplanement Report Grant 1,726 26.82% Nlunlclpal Airport Month RAVN GRANT Total 2017 ALASKA AVIATION 2018 January 4 ,498 1,650 6,148 7,160 Februa rv 4,336 1,315 5,651 6 ,615 March 4 ,710 1,726 6 ,436 7,206 Aoril 6,893 May 7,104 June 7,998 July 10,852 Aug ust 10,783 September 8,014 October 7,5 46 November 6 ,986 December 6,687 Totals 13,544 4 ,691 18,235 93,844 Terminal -Vehicle Parking Revenues March FY17 $20 ,013 FY17 Total $236,886 FY18 $19,876 FY18 YTD $175,543 March 2018 5,651 RAVN 4,710 73.18% Change from 2017 -1 ,012 -964 -770 -2 ,746 Vehicle Parking Revenues 27500 25000 22500 20000 17500 15000 I-1- 12500 ,__ 1- 10000 7500 5000 2500 l- -- >---- >---- >---- >----·--- >---- ~ I-I--- I- I- I-I-I-- I->-- ~ o ~ Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun •FY17 • FY18 Page 85 of 115 Mary Bondurant From: Sent: To: Cc: Subject: Attachments: Mary, matthew.stearns@faa.gov Frida y, April 27, 2018 9:38 AM Mary Bondurant Erica Shinn ; Jim La ckey; Jeff Tu cker; krisjon.tab isola@faa .g ov FW: (AK) ENA Inspection Subm ittal ENA LOC 0418.pdf Attached is the Compliance Lette r from the periodic inspection. A hard copy will be mailed to you. I was ab le to make all of the documented chan ges to th e 5010, except the rema rk concerning the ramp area that is not closed. Yo u w ill have to submit that change req u est. Thank you and you r entire t eam for an outstand ing in sp ection. It is very evident you are operating a safe, effective, and efficie nt airport. KUDOS to you and your team! Cheers, Matt V/R Matthew K. St earn s Lead Ai rport Certification Safety In spector FAA -A l aska Division (907)-27 1-5444 Recommendation: In regards t o the ghost in g of the 19 o n the runway, yo u may wan t to look at a sealan t over top of the 9 this summer and see if t hat la st s until proper block marking remova l ca n be acco m plished n ext ye ar. 1 Page 86 of 115 U.S. Department of Transportation Federal Aviation Administration April 27, 2018 Ms. Mary Bondurant Manager, Kenai Municipal Airport 305 N. Willow , Suite 200 Kenai. AK 99611 Dear Ms. Bondurant Alaskan Region Kenai Municipal Airport Kenai , Alaska Compliance Letter 222 W . 71h Avenue #14 Anchorage , Alaska 99513-7587 From April 23-25 , 2018, the Federal Aviation Administration inspected yo ur airpo11 's organization . systems, facilities, and procedures for compliance with 14 C.F.R. Part 139 . At th e end of that inspection , we advised you of the following findings: J. 139.31 J(al) -RUNWAY MARKINGS The runway designator removal during the 20 17 MAGV AR change was not completed IA W AC 150/5340-1. T he 19 designation is still visible with th e current 20 designation. The correction may requi re a new marking project. Correc t ion Date: September 1, 20 19 1 Page 87 of 115 2. 139.32UO -FUEL TRAINING CONFIRMATION LETTER The FBO (Crowley) failed to provide the 12 CCM required written confirmation that training has been accomplished. The letter was provided and the FBO was instructed accordingly prior to the inspection out brief. Correction Date: April 25 , 2018 3. 139. 7-COMPLIANCE WITH ADVISORY CIRCLULARS There were several locations along the airport fence line that had significant gaps that could allow wildlife or intruders to gain access to the airport. Some of the locations could use barbed wire or extra fence skirting along the bottom and other locations could use some soil/dirt and grading to eliminate the gaps. The gate on the north side of the field needs to be lowered to lessen the gap. 2 Page 88 of 115 Conection Date: June 30, 2018 We have considered all available facts and concluded this matter does not warrant legal enforcement action. In lieu of such action , we are issuing this letter. which will be bade a matter of record. Please advise me at FAA Airports Division. Alaskan Region. 222 W 7th Ave. # 14. Anchorage, AK 99513 by return of this letter when the discrepancies are corrected no later than I 5 days after the correction date. If you are unable to meet these dates, please notify me as soon as possible . Sincerely , Matthew K. Stearns Lead Airport Cert i fication Safety Inspector Alaska Airports Division Federal Aviation Administration 3 Page 89 of 115 (This page was intentionally left blank) Page 90 of 115 April 2 018 Nt•"s le tter Kenai Historical Society P.O. Box i348 Kenai , Al aska 99611 Board of Directors: Officers: l'rcsi <l c nt-Junc Harris Vi ce Presid ent-Virginia Walte rs Secre tary-Sharon Fisher Treasure r-Kathe rine Thompson .Jo e 1 la rri s Betty Idl eman 13ill Nelson Da ve Thompso n Fros ty Walte rs Pr eserving History Jackie Benson Pels, speaker for the Kenai Peninsula Historical Association conference on May 5 , was born in Seward and graduated from high school in Kenai. Be- ginning with the memoirs of her late stepfathe r , Ralph Sobe rg, who was general foreman for construction of th e Sterling Highway, she and her designe r partner, Da- vid Johnson, have published more than 30 books of personal and community history, including her own Unga Island Girl : Ruth's Book; Any Tonnag e, Any Ocean, a biography of Capt. Walter Jackinsk)' of Ninilchik; Family .After All: Alaska's J esse Lee Hom e- Vol. JI, Seward, 1925-1965; and Fram ed by S ea & Sky: Co mmunity Art in Seward, mural capital of A laska . Focusing on Kenai Peninsula histories, she'll talk about the work of a n editor and varying wa ys t o t ell a s tory , a nd introduce the n e west memoir from Hardscratch Press, David Leuthe's The 50-Year Summer. I would like to take this opportunity lo say an a d vance thank you lo Jackie for helping in the crffo r t lo p 'N!Se rve our local history. Sharon Fishe r • • KENA I 1 llSTO RI CA J,SOCIETY NEWSLITTTER Wrill c n hy Shuron Fis her INSIDE THlS ISSUE : • PRES ERVI NG HISTOR Y • Kenai Muni ci Jl.11 Airpo rt h~ llrian E\'a ns from Narrnlives on the Ken ai-Soldotna Co mmunity ANNOl!NCEMI~ rs H YOU llAVl; NOi, l'l.b\.<;H RENEW YOUR ~·o MEMUlcl« StllP TO C'ONTINUF. RH'EIV- 1NC11-ffi NEWSU~TTF.R . \\'E NEEi> COMMI f"l~U.NTS FROM M£1\1Rl!t<.S ro l'ltO· Vll>l:. IL\Klill llOOl>S ro "I Ill. MA) 5th EVENT-WE .\Rf HOSTING THE KENAI l'li.NIN - S\11.A lllSTORIC"AI. .\SSO<"IA · nos SF.'\11-ANNIJ.\I. ~11· l :l"· INC.. CAU . JU~I' Ar :dl;i-111411 . Minutes of the April Meet- ing will be printed i n tl1 c Augu.on 2018 issu e o f the News l e tter •• If you would like t o contribut e id ros and infornwtion lo the ncwi;lc ttcr, pl ease cont act me at 776-8254. I welcome and wou ld entertain a ny id e.'ls you m ay ha ve for a rticles, a nd wo uld a p precia te bei ng contact ed if yo u sec errors in th e infonna ti on con - ta ine d in t he news le tt e r . Page 91 of 115 I '. - . ; : I .... 11 """"' I . ' - u l ' ' • I . ' I . - u 1 : - I ; u ! l LJ KENAI MUIICIPAL AIRPORT by Brian Evans The Kenai Mun1c1pa1 Airport is 60 air miles from Anchor- age. tn a central location. has an elevation of 93 feet wtth an average te•perature of 61 degrees. It consists of one terminal. one control tower. a 7.211 feet fn length and 150 feet tn width runway. and an tndustrtal park. It has an 111- weat~er rawway that offers flatter approaches. better flying weather, less congestion, lower af rport fees, rental r1~e1, local taxes, more parking and develop•ent space. and a greater abt11ty to. accomodate tbe operator than any comparabie factl- tty t~ Alaska. The airport ts also used as an alternate for Anchorage. It ltes equt-dtstant fro• any .•tneral exploration tn the state. Before there was an a1rf1eld. planes hid to land on t•• beach. In the wtnter b•rause of snow and tee on the beach1 the area south of the present runway would be cleared for planes to land on stts. So••tfme fn 1941 an airport was constructed by the U.S. Afr Force on 'ublfc domain under Afr Navtgatton Site With- drawal No. 156. Th• new 5,000 feet long runway was co•pleted by the Cfv11 Aeron1utfcs Adm1nfstratfon fn 1942 •• ~t times someone wf th a vebf cle had to chase moose, caribou, and bears off the runway. In the winter, snow on the runway was P•cked . down by a huge roller. The first airlines to use the airport were Alaska Atr- lfnes and Pac1f1c Nort~ern Airways. both arr1vfng fn 1946. 105 Page 92 of 115 106 Both airlines brought in people, supplies, and mail, with Pacific Northern Atrlin~s beint the chfef supplier. Because of the private plane boom, the Kenai airstrip was lengthened by 1,000 feet wtth steal pferced plank land- fng mats, 150 feet wfde, at both ends. The center of the runwa1 was surfaced wfth gravel. Thts project was funded by the A1r Force. The runway was then lighted with medium fntensity lights and a 24-tnch duplex rotating beacon with clear and green lenses. mounted on a 51-foot tower adjacent to the then flfght service statton on the east sfde of the runway. There were three different apron areas adjacent to the runway, one of which was constructed for the Afr Force • . Other F.A.A. facf11tfes·were a low frequ1nctes radfo range (SBRA), a very high frequencies omni-directional radio range (UDRTAC). a communications trans•ttter sfte, and a ltvtng quarters area for F.A.A. personnel whfch fs now owned by the Cfty of Kenai. · Th1 first airport terminal buf ldtng was built tn the su11111er of 1952 and was located north of the spur highway near the cemetery. Du~ing the Korean War, the Afr Force based single engfae Jet fighters at the Kenat airport. The airport facilities were mafntafned by the F.A.A. by an agreement. Thfs mainten- ance agreement was cancelled by the Afr Force on June 30. 1962. However, the Air Force st111 retained four tracts of various stzes 1dJ1cent to the atrport under F.A.A. permft. In 1959 the F.A.A. was directed to transfer certain air· ports that were betng operated as tntermedf ate fields to the ~ I - I I I! :.J u J u u u u J u J u J J u· Page 93 of 115 u I . I I - I . I - I: - i . I w i I I • ' . - . I ...: I ! ' ' I o - J ! I o I - ; i ; I - . j ! I - I • ; I I ' i..I i I - u oew State of Alaska. Included in this group was the Kenai Atrpor.t. The airport was ortgtnally bu11t to provtde a landing fteld for small aircraft, such as the DC-3 and smaller. The planes were used to haul in material for the construction, operation and aetntenance of the airways communfcatfons sta- tton and navtgattonal aids butlt at Kenai as part of the Alaska Airways System. Since there was no high-way, heavy equipment and supplies were transported during the open navtgatton sea- son by barge. When the highway system between Anchorage, Seward, and the Peninsula was completed, the Kenai afrport was no longer a F.A.A. requirement fn operating the airways station and navtgat1onal atds. Transftfonal grant funds tn the amount of $21,000.00 per year for the fiscal years of 1960 through 1962 were allocated to take care of maintenance of the airport. Some of these funds were used tn the Avtatton Services Buildtng, whtch was completed tn November, 1960, becoming the largest co111111ercial structure f n Kenai at that time. In May, 1963, the Kena1 Ctty Council established the Kenai Airport Co11111tssfon, whfch was formed to establfsh polfcies, •ules and regulations for the airport. The Airport Commfsston was a vital factor in the development of the af rport and fts . operations until September 1, 1965, when the Commtsston was abolished. In 1965 an airport improvement project got under wa1. wtth a cost of approximately $1,146,667.00. Plans were also developed for use and leasfng of land tn the small aircraft apron; (1) Small Aircraft Apron Use Plan, and (2) Small Aircraft Apron Leasing Program. 107 Page 94 of 115 108 There were numerous improvements tn 1967. such as 2,500 feet of addf t1ona1 runway which was paved tn the spring of 1968. the completfon of storage parting for 80 more vehicles, an addttfonal 1,870 feet of Daved taxiways, and conversion of .. medtun intensity runway lighting to htgh intensity. On danuary 26, 1967, Pacific Northern Airlines moved to the newly completed Kenat Afr Terminal. At 12:35 p.m. that day a constellation flight landed and the ffrst passengers passed through the new facflfty. In February the contractor of the terminal, J. a. Narrack Co •• turned over the •teys 0 to the cfty •. On Saturday nfghtl March 11. an official open house celebration was held. Prior to thfs celebration tt was believed that the passenger space was inadequate for the amount of traffic already usfng the bufldfng. Because of thts, the front porch area was glassed tn to gtve more room. In dune of 1967 Pac1ftc Northern Atrlfnes and Western Afrlfnes negotiated a merger. On duly 1, 1967, Pacfftc ·Northern Afrlfnes, known also as •Alaska Flag Lfne• wtth asters of Golda aade way for the •Red. Nhfte, and Black Chtef ,• Western Afrlfnes. Kenat owns 1.600 acres of airport lands, of whfch 10.2 acres was offered for rampstde oper1ttons :bordertng on the matn taxtway. Eighteen and eight-tenths acres were available tn an undeveloped state for operation adjacent to the ramps1te. In the 1ndustrf1l park, 6.8 acres of lots were avatl1ble for constructton end 16.6 acres for an fndustrt1l commercfal subdf vf ston. I 1 •I .. J LI u u u u u u u u u u u u u J u LI Page 95 of 115 I: • I ' "- I ; u .... i : - u I - I . I • ... I i • I Li : I u ' i -. 1 l .... . i - 11 - I I - u I I ' -.. ... It was safd that •the greatest thing that the cf ty ever d1.d wa.s to take over the a1rpott from the state. a* Most of the enterprises 1n the industrial a1r park were new business- es or branches of large companies. The entire project was financed by an Economic Development Administration matching fund. EDA declared that the project had been one of the most successful they had ever parttcfpated fn. Because of the buttdfng of the industrial air park, the City of Kenai co•p1eted tnstallattons of water. sewers. paved streets. and underground electric lfnes. Other com1ercfal ut11ftfes installed natural gas lfnes and underground tele- phone ltnes to the area. I~ 1970 Western Afrlfnes moved out of kenat and Vfen Afr Alaska took over. moving out tn 1973, but ~ttll ret1fntn9 landtng rights to the present tfme. Presently co .. ercf al servtce f s betng operated by Alaska Aerona•tteal Indu1trte1 (A.A.I.) wfth daily co11111uter service to Anc•orage, Cordova.· Valdez. and Homer. In 1973 an F.A.A. atr trafftc control tower was added for addftfonal safety and more equtpment. The flight ser~ vfces statfon ts open 24 hours every day,"whtle the control tower ts used from &:00 a.m. to 10:00 p.m. from Aprtl to September and tn wfnter months from 7:00 a.m. to 7:90 p.m. The fltght servtces station wtth 1 total of 9 people worttng. takes offfctal weather reports. and navtgattonal atds betng continually operated. When the tower ts closed, the pilots •As quoted by Frank Adams of the ft ... of Ada•s, Corthell, Lee, and lfnce and Associates, who participated as project engineers in the Coot Inlet Industrial Afr Park Project. 109 Page 96 of 115 1~ do their own ~on~rolling of landings and take-offs. The control tower,. with a total of five people worktng, controls a ftve mfle radtus of the atrport, and the F.A.A. flight servtce statton assists tn a 400 mile radius . Other improvements fn 1973 were addft1ona1 paved taxi· ways, loading ramp, and a paved access road to the control tower, all totaling $507,627.00. Security regulations re- quired a complete surrounding security fence whfch was com- pleted fn 1974 with a cost of $463,429.00. Plans for the airport now include studies of airport lands and development of a comprehensive land use plan, tn· stallation of a radto-controlled lighting system, and an tnstrument landing system. In all the years the Kenai afrport has been tn use there have been only a total of stx accidents resultf n9 tn two fatalftfes. The two fatalities occurred in 1971 when two private planes collided in mid-atr over the afrffeld, k1111ng one pilot and one student pf lot trainee. The intensive use of the airport 1n prior years by the m111tary resulted in only two separate accfdents, one a C-119 Flying Boxcar and one a C-47 cargo plane. There were no serious injuries to either crew. Use of the kenaf airport as an alternate to Anchorave Internattonal Atrport has been nomtnal in the past, due prt- mar11y to the extensive instrument landing system at the Anchorage field, and due also to the lack of a U.S. Customs Office and personnel at the Kenai airport. According to F.A.A. fltght service statton employees. once 1 Northwest Or1et DC-7 fltght from Tokyo to Anchorage u j J J j J J Li u u u J LI u j u u u Page 97 of 115 I . "- ·u u u I... ; . I ~ I i... u . t - !J u I . - J : I I : made an emergency landing at Kenaf after losing power f n three of its.four engines. The passengers and the crew had to re-. . •afn aboard the disabled craft until another plane. accompanied by U.S. custom officials, was brought tn from Anchorage. The lack of a customs offfce at Kenaf prevented the passengers from df sembartfng the disabled plane. The largest plane to land at the airport was a C-141 Starltfter. The total number of planes (landings and take- offs) using the Kenaf afrport tn 1974 was 48,814 wfth the number of 1975 estimated to be around 52,000. matfng Kenaf the thfrd &~sfest afrport f n Alaska. The atrport ts currently betng operated wfthout a full- ttme a~rport manager. The current City Manager f s designated as the Acting Af rport Manager. The ff rst airport manager was 6eorge L. 0 Red• daynes, who served from 1963 to 1969. &tlbert Stafford was appotnted tn 1969 for •·short perfod. Many persons credft the late 6eorge·L. daynes as the drivtng force behfnd many of the airport tmprov .. ents and past operations. A•ong other achievements, he fs credited with single-handedly df ggtng the water well to serve the newly constructed airport terminal building. which was built prfor to the extenston of the city water lines that presently serve the ter11tn1l butldfng and surrounding area. 11l: Page 98 of 115 ---------------·----·-------------------------------. AIRPORT LAYOUT Parking ·oradlant: 36-18a+0.11% Rllnwoy not morkod !---1 ! U.SAr i L_~ 1600 NOTE : 0 Civilian olrcrofl not p1rmltted In Air Foree porll.lno ono. V£LOPMfNT 1600 3200 Scole In Feet 112 TAKEN FROM Kena i Airport, Federal Aviation Agency, Alaska, Region, 19 62. Page 99 of 115 KENAI HfS'l'ORJCSOCIITTY Our Orgnni%3tion There has been a Historic Society i.ince the dayll before Kenai becom- ing a city. 111c Society was fom1cd n few years before Statehood in 1959, and then went inactive in the early 6o's. It restaned in the latter part of the 6o's and has met regttlnrly since. The Society hnd a museum In Fort Kenoy for some )"eal'll, and then continued to meet after that closed 11ic non-profit Society implemented and operates the Kenai Historic Cabins l'llrk, open for tours in the summtt months. We have office space at the Moosemeat John cabin. but are not open to the public in that building. Our member meetings arc Sc:pt., Nov., Dec., Jan., Feb •• Mar., and April at the Kenai Vasitor Center. For Oct. nnd May, ~ meet with the Kenai Peninsula HistoriCill Association. Please check the Meet- ings aod Announcements section on this page for date information. Kenai Historic Society P.O. Box 1348 Kenai, AK 99611 Phone: 283-1946 Pho ne:7]6-8254 E-mail: ak.kyaker@yahoo.com www.faccbook.rom/Kcnai - Historical-Socicty MEETINGS AND ANNOUNCEMENTS Kenai Peninsula Historical Association Semi-Annual Meeting -May 5, 2018 Open to the Public 9:00 a.m. -Doors Open Coffee and Breakfast Treats Provided by Kenai Historical Society Members to:oo a.m.-Business Meeting 12:00-Lunch Provided by Kenai Historical Society and KPHA Members 1:00 p.m.-Guest Speaker Jackie Benson Pe)s Publishing and Editing Books of Persona) and Community History J'l 1 \'I l'l.\l'I ..;1 \ 111 111111 Page 100 of 115 Page 101 of 115 OWNERSHIP • State of Alaska owned Airport • Operated by the Department of Transportation and Public Facilities • Located within Municipality of Anchorage {MOA) Page 102 of 115 THE DILEMMA • Several hundred acres are used for recreational purposes by MOA Parks and Recreation Department • 22 acres have been used for years by the MOA for a snow disposal site for maintenance of off-airport streets • Use for these purposes with no consideration is not allowed by FAA per Grant Assurance 24 • Ownership of the airport is not a relevant consideration ----------- 4123!201s Integrity · Enterprising · Excellence · Respect 3 Page 103 of 115 J ...... I ' I Page 104 of 115 THE HISTORY • Uses were allowed rent free under "Maintenance Agreements" between the MOA and the Airport • Agreements dating back to the Mid 80's • All agreements but one expired in 1998 and are in month to month hold over • Airport was working with the MOA to trade these lands in exchange for land needed for a future runway. New MOA administration nixed that plan 41231201s Integrity · Enterprising · Excellence · Respect s Page 105 of 115 WHAT DOES FAA SAY ABOUT NON-AERONAUTICAL USE FAA Order 5190.6b, Airport Compliance Manual This handbook [FAA Order 5190.6b] provides guidance to FAA personnel on interpreting and administering the various continuing commitments airport sponsors make to the U.S. Government [Grant Assurances] when they accept grants of federal funds or federal property for airport purposes. Page 106 of 115 WHAT DOES FAA SAY ABOUT NON-AERONAUTICAL USE Grant Assurance 24 reads, in part: 24. FEE AND RENTAL STRUCTURE. It will maintain a fee and rental structure for the facilities and services at the airport which will make the airport as SELF- S USTAINING as possible under the circumstances existing at the particular airport, taking into account such factors as the volume of traffic and economy of collection. No part ... 4/2J1201a Integrity · Enterprising · Excellence · Respect 1 Page 107 of 115 CHAPTER 17, SELF-SUSTAINABILITY 17.5 Self-sustaining Principle Airports must maintain a fee and rental structure that makes the airport as financially self-sustaining as possible under the particular circumstances at that airport. The requirement recognizes that individual airports will differ in their ability to be fully self- sustaining, given differences in conditions at each airport. The purpose of the self-sustaining rule is to maintain the utility of the federal investment in the airport. Page 108 of 115 CHAPTER 17, SELF-SUSTAINABILITY 17.11 Nonaeronautical Rates Rates charged for nonaeronautical use (e.g., concessions) of the airport must be based on fair market value (e.g., lease of land at fair market rent subject to the specific exceptions listed in this chapter). 4123 120 1a Integrity · Enterprising · Excellence · Respect 9 Page 109 of 115 CHAPTER 17, SELF-SUSTAINABILITY 17. 15 Exception for Community Use: a. Acceptance. The local community must use the land in a way that enhances the community's acceptance of the airport; the use may not adversely affect the airport's capacity, security, safety, or operations. Acceptable uses include public parks and recreation facilities, including bike or jogging paths. When the use does not directly support the airport's operations ... accordingly the airport must be reimbursed at fair market rent for airport land used for road __ maintenance or equipment storage_y_@rd~ __ -__ , ____ - 412J1201a Integrity · Enterprising · Excellence · Respect 1 1 Page 110 of 115 CHAPTER 17, SELF-SUSTAINABILITY 17. 13 Exceptions to the Self-sustaining Rule: While the general rule requires market rates for nonaeronautical uses of the airport, several limited exceptions to the general rule have been defined by congressional direction and agency policy based on longstanding airport practices and public benefit. These limited exceptions include (a) property for community purposes and (b) not-for-profit aviation organizations, (c) transit projects and systems, and (d) military aeronautical units ... 4 23120 1s Integrity · Enterprising · Excellence · Respect 10 Page 111 of 115 CHAPTER 17, SELF-SUSTAINABILITY 17.15 Exception for Community Use: b. Minimum Revenue Potential. . .. When a sponsor finds that the land may earn more than minimum revenue but still below fair market value, the sponsor may still .permit community use ... provided the rental rate approximates the revenue that the airport could otherwise earn. Page 112 of 115 CHAPTER 17, SELF-SUSTAINABILITY Community Use Conclusions • Use as a snow dump for municipal street maintenance does not meet the exception to the self-sustainability rule and must be charged FMV rent. • Use for recreational purposes does meet the exception to the self-sustainability rule and may be charged less that FMV rent provided the rental rate approximates the revenue that the airport could otherwise earn. 4123 1201s Integrity · Enterpris i ng · Excellence · Respect 13 Page 113 of 115 WHAT ARE WE DOING NOW? • Snow Dump • Put the MOA on notice that they cannot use the snow dump without FMV rent of $250,000 • Recreational Properties • Appraised the property being used • Notified MOA that we need to be receiving some consideration for recreational uses · • What is meant by provided the rental rate approximates the revenue that the airport could otherwise earn? • Working with FAA to determine what percent of FMV rent is reasonable Page 114 of 115 HOW ARE WE FEELING? BEWILDERED? PERPLEXED? CONFUSED? There is not a lot of clarity in the guidance. Page 115 of 115