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HomeMy WebLinkAbout2019-02-20 Council Packet KENAI CITY COUNCIL - REGULAR MEETING FEBRUARY 20, 2019 - 6:00 PM KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A.CALL TO ORDER PLEDGE OF ALLEGIANCE ROLL CALL AGENDA APPROVAL CONSENT AGENDA (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) C.UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.PUBLIC HEARINGS D.1.Ordinance No. 3050-2019 – Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services Passed through the Alaska State Library for Employee Travel and Training. (Administration) Ordinance No. 3050-2019.pdf D.2.Ordinance No. 3051-2019 – Accepting and Appropriating Private Donations to the Kenai Animal Shelter for the Humane Capture and Treatment of Animals. (Administration) Ordinance No. 3051-2019.pdf D.3.Ordinance No. 3052-2019 – Amending Provisions in Kenai Municipal Code Title 3-Animal Control, Including the Definition of “Vicious Animal” in Kenai Municipal Code 3.05.010-Definitions, Mandatory Court Appearance Requirements in Kenai Municipal Code 3.05.070-Citation Procedure, Including a New Offense in Kenai Municipal Code 3.10.020 - Control and Confinement of Animals, and Making Corresponding Changes to Kenai Municipal Code 13.10.015 – Minor Offense Fine Schedule and the City’s Uniform Minor Offense Table. (Legal) Ordinance No. 3052-2019.pdf D.4.Resolution No. 2019-13 – Consenting to the Declaration of Peninsula Hangar Association (a Common Interest Ownership Cooperative) and Sublease between Legacy Electric, LLC and the Peninsula Hangar Association for Lot 2, Block 1, General Aviation Apron within the Airport Reserve. (Legal) 1 Kenai City Council Meeting Page 2 February 20, 2019 Resolution No. 2019-13.pdf E.MINUTES E.1.*Regular Meeting of February 6, 2019 02-06-19 Council Minutes - DRAFT.pdf F.UNFINISHED BUSINESS F.1.Ordinance No. 3049-2019 – Increasing Estimated Revenues and Appropriations in the Airport Improvements Capital Project Fund for Tenant Requested Improvements to the Automated Flight Service Station. (Administration) [Clerk’s Note: This Item was Postponed to this Meeting from the February 6, 2019 Meeting; A Motion to Enact is on the Floor.] Ordinance No. 3049-2019.pdf G.NEW BUSINESS G.1.*Action/Approval – Bills to be Ratified. (Administration) Payments over $15,000.pdf G.2.*Action/Approval – Purchase Orders Exceeding $15,000. (Administration) Purchase Orders over $15,000.pdf G.3.*Action/Approval – Non-Objection to Liquor License Renewal for Pizza Paradisos. (City Clerk) Liquor License Renewal.pdf G.4.*Action/Approval – Non-Objection to New Marijuana Product Manufacturing License for Red Run Cannabis Cultivators, LLC. (City Clerk) New Marijuana License.pdf G.5.*Ordinance No. 3053-2019 – Increasing Estimated Revenues and Appropriations in the General Fund for the Donation of a Bush Doctor’s Historic Cabin from Doctor Peter Hansen and Kenai Community Foundation and Supporting the Placement of the Cabin Adjacent to the Kenai Visitor Center. (Legal) Ordinance No. 3053-2019.pdf G.6.Discussion – Amazon Tax Collection in the 99611 Zip Code. (Vice Mayor Navarre) Online Sales Tax Discussion.pdf H.COMMISSION/COMMITTEE REPORTS H.1.Council on Aging H.2.Airport Commission H.3.Harbor Commission H.4.Parks and Recreation Commission 2 Kenai City Council Meeting Page 3 February 20, 2019 H.5.Planning and Zoning Commission H.6.Beautification Committee H.7.Mini-Grant Steering Committee I.REPORT OF THE MAYOR J.ADMINISTRATION REPORTS J.1.City Manager Mid-Month Reports.pdf J.2.City Attorney J.3.City Clerk K.ADDITIONAL PUBLIC COMMENT K.1.Citizens Comments (Public comment limited to five (5) minutes per speaker) K.2.Council Comments L.EXECUTIVE SESSION - None. M.PENDING ITEMS M.1.Ordinance No. 3048-2019 – Amending Kenai Municipal Code Chapter 5.25, Mobile Food Vendors, to Revise Application Requirements, License Terms, and Business Conduct Requirements and Make Other Housekeeping Amendments. (City Clerk) [Clerk’s Note: During the 02/06/19 Meeting, this Item was Postponed to the 03/06/19 Meeting; a Motion to Enact is On the Floor.] INFORMATION ITEMS Purchase Orders between $2,500 and $15,000 for Council Review Purchase Orders between $2,500 - $15,000.pdf Kenai Historical Society Newsletter – January 2019 KHS Newsletter 1.2019.pdf N.ADJOURNMENT 3 Kenai City Council Meeting Page 4 February 20, 2019 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. 4 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3050-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A FEDERAL GRANT FROM THE INSTITUTE OF MUSEUM AND LIBRARY SERVICES PASSED THROUGH THE ALASKA STATE LIBRARY FOR EMPLOYEE TRAVEL AND TRAINING. WHEREAS, the Kenai Community Library has received a $1,250 grant from the Institute of Museum and Library Services passed through the Alaska State Library for travel expenses of a staff member to attend the 2019 Alaska Library Association Conference to be held in Juneau; and, WHEREAS, the total estimated cost of the trip is $1,350 and the Kenai Community Library has sufficient funds in its budget to cover the excess; and, WHEREAS, it is in the best interest of the City of Kenai to accept and appropriate these grant funds for the purpose intended. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to accept a grant in the amount of $ 1,250 from IMLS passed through Alaska State Library for travel expenses of a staff member to attend the 2019 Alaska Library Association Conference and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 2. That estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Federal Grants - Library $1,250 Increase Appropriations: Library – Travel & Transportation $1,250 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. 5 Ordinance No. 3050-2018 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of February, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________________ Introduced: February 6, 2019 Enacted: February 20, 2019 Effective: February 20, 2019 6 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Jo Joiner, Library Director DATE: January 10, 2019 SUBJECT: Ordinance 3050-2019 – Continuing Education Grant for Library The Alaska State Library receives funds from the Institute of Museum and Library Services to pay for continuing education grants. These travel funds allow staff members to attend a continuing education workshop or conference. These funds can be spent on travel, lodging, per diem and registration expenses. This year Janina Efta has been awarded funds ($1,250) to attend the Alaska Library Association Conference to be held in Juneau, Alaska from February 28, 2019 through March 3, 2019. This ordinance will appropriate the $1,250 grant to allow Ms. Efta to attend the conference. Estimated expense for the trip is $1,350. The library has sufficient funds in the travel budget to cover the additional expense. Your consideration is appreciated. 7 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3051-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING PRIVATE DONATIONS TO THE KENAI ANIMAL SHELTER FOR THE HUMANE CAPTURE AND TREATMENT OF ANIMALS. WHEREAS, Kenai Spine donated $500 and Anna Bereziewicz donated $1,000 to the Kenai Animal Shelter with the intention of furthering the mission of the Animal Shelter in the humane capture and treatment of animals; and, WHEREAS, the Animal Control Chief has identified equipment needs, including items that will assist staff in safely handling difficult animals; and, WHEREAS, the acceptance of these donations to further the mission of the Animal Shelter is in the best interest on the City and its residents. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the City Manager is authorized to accept these donated funds and to expend them as authorized by this ordinance and in line with the intentions of the donors. Section 2. That the estimated revenues and appropriations be increased as follows: General Fund: Increase Estimated Revenues- Donations – Animal Control $1,500 Increase Appropriations – Animal Control – Small Tools $1,500 Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon adoption. 8 Ordinance No. 3051-2019 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of February, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Approved by Finance: _________________ Introduced: February 6, 2019 Enacted: February 20, 2019 Effective: February 20, 2019 9 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross – Police Chief DATE: January 25, 2019 SUBJECT: Ordinance No. 3051-2019 - Ordinance Accepting and Appropriating Private Donations to the Kenai Animal Shelter ______________________________________________________________________ The Kenai Animal Shelter received unsolicited donations from two separate donors in January. Kenai Spine donated $500 and Anna Bereqiewicz donated $1,000. The intention of the donations was to assist the Kenai Animal Control officers in the humane capture and treatment of animals. The Animal Control Chief has identified equipment needs to be purchased with the donations, including items that will assist in handling difficult animals. I am respectfully requesting consideration of the ordinance accepting and appropriating those donated funds for the purpose the donors intended. 10 Sponsored by: Legal CITY OF KENAI ORDINANCE NO. 3052-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING PROVISIONS IN KENAI MUNICIPAL CODE TITLE 3-ANIMAL CONTROL, INCLUDING THE DEFINITION OF “VICIOUS ANIMAL” IN KENAI MUNICIPAL CODE 3.05.010-DEFINITIONS, MANDATORY COURT APPEARANCE REQUIREMENTS IN KENAI MUNICIPAL CODE 3.05.070-CITATION PROCEDURE, INCLUDING A NEW OFFENSE IN KENAI MUNICIPAL CODE 3.10.020- CONTROL AND CONFINEMENT OF ANIMALS, AND MAKING CORRESPONDING CHANGES TO KENAI MUNICIPAL CODE 13.10.015 – MINOR OFFENSE FINE SCHEDULE AND THE CITY’S UNIFORM MINOR OFFENSE TABLE. WHEREAS, amendments in this Ordinance to Title 3 of the Kenai Municipal Code are intended to provide clarification and additional means for animal control officers to address inadequate control of animals; and, WHEREAS, it is important to the public welfare, health and safety of residents that animal owner’s in the City properly control and treat their pets in a reasonable and responsible manner; and, WHEREAS, the proposed amendment to the definition of “vicious animal” in KMC 3.05.010- Definitions, clarifies that an animal is considered a vicious animal if it has done unreasonable harm to a human or other animal in a hostile manner or has twice been found to be a dangerous animal by a court ; and, WHEREAS, the amendment to KMC 3.05.070-Citation Procedure, requires that an animal owner that violates a provision of KMC Chapter 3.10-Control and Treatment of Animals, three times within a 12 month period have a mandatory arraignment before a judge rather than just pay a fine; and, WHEREAS, requiring an animal owner to go to court and address the owner’s control and treatment of their animal that is frequently not being controlled or treated properly is intended to curb the conduct that the City’s fine provisions have been unsuccessful in addressing; and, WHEREAS, Kenai Municipal Code 3.10.020-Control and Confinement of Animals, currently prohibits a person from letting an animal be unrestrained and provides an increased fine for an animal that is not confined and is either vicious or dangerous, but does not specifically address an animal that has not previously been deemed vicious or dangerous and causes harm or injury to a person or other animal; and, WHEREAS, adding a provision that carries a citation amount of $100 for an animal that is not reasonably confined or restrained and harms or injuries a person or other animal is reasonable and intended to recognize the poor conduct of the animal and owner in relation to the $50 citation for an animal that is merely unrestrained and causes no harm; and, 11 WHEREAS, amendments to KMC 13.10.015 – Minor Offense Fine Schedule and the City’s Uniform Minor Offense Table are necessary to effectuate the changes to the City’s Ordinances. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Amendment of Section 3.05.010 of the Kenai Municipal Code: That Kenai Municipal Code, Section 3.05.010- Definitions, is hereby amended as follows: 3.05.010 Definitions. As used in Title 3: (1) “Animal” means all domestic or domesticated members of the Kingdom Animalia. (2) “At large” means not under restraint. (3) “Cat” means a domestic or domesticated member of the family Felidae. (4) “Current rabies vaccination” means a vaccination: (A) As specified in the “compendium of animal rabies vaccines” prepared by the Rabies Subcommittee of the National Academy of Sciences and by the National Association of State Public Health Veterinarians, Inc. (1978); (B) Administered in accordance with State law; and (C) Evidenced by a rabies vaccination certificate in a form approved by the State Division of Public Health. (5) “Dangerous animal” means any animal which due to improper or inadequate supervision or control has done an act harmful in its character to human beings or animals, regardless of whether the act is done in a playful or hostile manner. (6) “Dog” means a domestic or domesticated member of the family Canidae. (7) “Kennel.” (A) “Kennel, commercial” means premises where four (4) or more dogs over four (4) months of age are owned, kept, boarded, bred and/or offered for sale. (B) “Kennel, private” means premises where four (4) or more dogs over four (4) months of age are owned or kept for private enjoyment. (8) “Impoundment” means: 12 (A) The seizure of animals by the methods set forth in KMC 3.25.010(d). (B) Seizure of a vicious animal. (9) “Officer” means a person charged by law with the duty to enforce provisions of this title. (10) “To own” an animal includes having title, keeping, harboring, and having custody or control of an animal. (11) “Person” includes individual, joint venture, partnership, corporation, or unincorporated association. (12) “Restrain” means: (A) Physical confinement, as by leash, chain, fence, or building; or (B) Under competent voice control when an animal is engaged in an activity or form of training requiring that it not be physically confined; or (C) Under competent voice control when an animal is on the property of its owner. (13) “Sterile” means rendered incapable of reproduction by surgical operation. (14) “Vicious animal” means an animal that has done an unreasonable act harmful to human beings or animals which act is done in a hostile manner[.] or [A]any animal which has been twice adjudged a dangerous animal by a court of competent jurisdiction, whether by a plea of no contest or guilty or by trial, shall be considered vicious for purposes of penalties imposed by KMC 3.05.060(d). Section 2. Amendment of Section 3.05.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 3.05.020- Citation Procedure, is hereby amended as follows: 3.05.070 Citation [P]Procedure. (a) An officer may serve a summons and complaint in the form of a citation upon a person for violating a provision of this chapter, or a term, condition, or limitation of a license issued hereunder, or a City regulation promulgated under this title. (b) A summons and complaint issued under this section shall contain a notice directing the person to whom it is issued to appear in the Court for the Third Judicial District of the State of Alaska at Kenai, or pay a fine to the City of Kenai. (c) An officer who issues a summons and complaint under this section shall deposit the original and a copy of the citation with the officer’s immediate superior who shall forward the citation to the City of Kenai Legal Department. 13 (d) Mandatory court appearance shall be required: (1) For a violation of KMC 3.10.020(c). (2) For a violation of KMC 3.10.070(g). (3) For all cruelty charges under this code. (4) Upon third citation of all other provisions of Chapter 3.10 in a twelve month period. Section 3. Amendment of Section 3.10.020 of the Kenai Municipal Code: That Kenai Municipal Code, Section 3.10.020- Control and Confinement of Animals, is hereby amended as follows: 3.10.020 Control and [C]Confinement of [A]Animals. (a) A person who owns a dog shall keep the dog under restraint at all times. (b) A person who owns an animal other than a dog that is capable of annoying or endangering other persons or damaging their property shall keep the animal under restraint at all times. (c) A person who owns a dog or other animal shall use reasonable means, including restraint or confinement, to prevent that dog or other animal from causing harm or injury to another person or animal unless the animal is on the private property of the owner. ([C]d) A person who owns a vicious or dangerous animal shall at all times either confine the animal in a building or a secure enclosure, or otherwise secure the animal, as with a muzzle, so it cannot injure other persons or their property. ((D)e) A person who owns a female dog or cat in heat or during ovulation shall keep the dog or cat under restraint in such a manner that it cannot come into contact with a male of its species except for planned breeding purposes, provided that a female sled dog in heat shall be confined unless it is restrained by proper harnessing in a team in such a manner that it cannot come in contact with a male dog except for planned breeding purposes. ([E]f) No person other than an officer performing his duties under this title may release an animal from restraint without its owner’s consent, except to preserve the animal’s life. Section 4. Amendment of Section 3.10.015 of the Kenai Municipal Code: That Kenai Municipal Code, Section 3.10.015- Minor offense fine schedule, is hereby amended as follows: 14 13.10.015 Minor [O]Offense [F]Fine [S]Schedule. In accordance with AS 29.25.070(a), citations for the following offenses may be disposed of as provided in AS 12.25.195 through 12.25.230, without a court appearance, upon payment of the fine amounts listed below or on the State of Alaska Uniform Minor Offense Tables for Titles 28 and 13 AAC offenses plus the state surcharge required by AS 12.55.039 and 29.25.074. Fines must be paid to the City of Kenai. The Rules of Minor Offense Procedure in the Alaska Rules of Court apply to all offenses listed below. Citations charging these offenses must meet the requirements of Minor Offense Rule 3. If a person charged with one (1) of these offenses appears in court and is found guilty, the penalty imposed for the offense may not exceed the fine amount for that offense. If an offense is not listed on this fine schedule or another fine schedule the defendant must appear in court to answer to the charges. The fine amounts are doubled for motor vehicle or traffic offenses committed in a highway work zone, as those terms are defined in AS 28.90.990 and 13 AAC 40.010(b). An offense may not be disposed of without a court appearance if the offense is in connection with a motor vehicle accident that results in a death of a person. MINOR OFFENSE FINE SCHEDULE CITE RULE/OFFENSE FINE [RULES OF ROAD] OFF-ROAD VEHICLE OPERATION 1 KMC 13.40.020(a) On public or private property without the express or Implied consent of the owner, authorized agent, or representative. 100.00 2 KMC 13.40.020(b) On municipal park lands, except where specifically authorized, municipal playgrounds and school playground areas except by special authorization or in a specially designated area. Notwithstanding, wheelchairs may be operated on park lands and playgrounds by persons with mobility disabilities, subject to the other provisions of this chapter. 100.00 3 KMC 13.40.020(c) On a City or State maintained roadway, sidewalk, or on a path or trail designated for bicycles or pedestrians, unless such travel is necessary to go around an obstruction or hazard. 100.00 4 KMC 13.40.020(d) On any City or State road right-of-way that has been landscaped, seeded, or otherwise improved. 100.00 5 KMC 13.40.020(e) In such a manner as to produce sufficient noise to disturb the peace and quiet of another. 100.00 15 CITE RULE/OFFENSE FINE 6 KMC 13.40.020(f) In such a manner as to cause damage to improved property or destruction to the terrain. 100.00 7 KMC 13.40.030 Special stops required 90.00 8 KMC 13.40.050 Helmet required 100.00 9 KMC 13.30.080 Operating vehicle in a prohibited area 100.00 ANIMALS 10 KMC 3.10.010 No person may permit an animal which he owns to interfere with another person’s reasonable right to peace or privacy by making repeated or continued noise. (1st offense) 50.00 11 KMC 3.10.010 No person may permit an animal which he owns to interfere with another person’s reasonable right to peace or privacy by making repeated or continued noise. (2nd offense) 100.00 12 KMC 3.10.020(b) A person who owns an animal other than a dog that is capable of annoying or endangering other persons or damaging their property shall keep the animal under restraint at all times. (1st offense) 50.00 13 KMC 3.10.020(b) A person who owns an animal other than a dog that is capable of annoying or endangering other persons or damaging their property shall keep the animal under restraint at all times. (2nd offense) 100.00 14 KMC 3.10.020(c) A person who owns a dog or other animal shall use reasonable means, including restraint or confinement, to prevent that dog or other animal from causing harm or injury to another person or animal unless the animal is on the private property of the owner. 100.00 [14]15 KMC 3.10.020[(c)]d A person who owns a vicious or dangerous animal shall at all times either confine the animal in a building or a secure enclosure, or otherwise secure the animal, as with a muzzle, so it cannot injure other persons or their property. (1st offense) 50.00 [15]16 KMC 3.10.020[(c)]d A person who owns a vicious or dangerous animal shall at all times either confine the animal in a building or a secure enclosure, or otherwise secure the animal, as with a muzzle, so it cannot injure other persons or their property. (2nd offense) 100.00 [16]17 KMC 3.10.020[(d)]e A person who owns a female dog or cat in heat or during ovulation shall keep the dog or cat under restraint in such a manner that it cannot come into contact with a male of its species except for planned breeding purposes; 50.00 16 CITE RULE/OFFENSE FINE provided, that a female sled dog in heat shall be confined unless it is restrained by proper harnessing in a team in such a manner that it cannot come in contact with a male dog except for planned breeding purposes. (1st offense) [17]18 KMC 3.10.020[(d)]e A person who owns a female dog or cat in heat or during ovulation shall keep the dog or cat under restraint in such a manner that it cannot come into contact with a male of its species except for planned breeding purposes; provided, that a female sled dog in heat shall be confined unless it is restrained by proper harnessing in a team in such a manner that it cannot come in contact with a male dog except for planned breeding purposes. (2nd offense) 100.00 [18]19 KMC 3.10.020(e) No person other than an officer performing his duties under this title may release an animal from restraint without its owner’s consent, except to preserve the animal’s life. (1st offense) 50.00 [19]20 KMC 3.10.020(e) No person other than an officer performing his duties under this title may release an animal from restraint without its owner’s consent, except to preserve the animal’s life. (2nd offense) 100.00 [20]21 KMC 3.20.010 Failure to license a dog 25.00 [21]22 KMC 3.10.080 Failure to properly dispose of dog waste 50.00 [2223] KMC 3.15.050(a) Standards for operating facilities up to 500.00 PARKING [23]24 KMC 13.10.060 Camping on private property 50.00 [24]25 KMC 13.30.030 Night parking prohibited 50.00 [25]26 KMC 13.30.035 Paid parking 50.00 [26]27 KMC 13.30.095 Parking prohibited on Kenai Avenue 50.00 [27]28 KMC 18.35.010 Overnight camping 50.00 [28]29 AR 6.05.010-030 Parking at airport (1st offense) 25.00 [29]30 AR 6.05.010-030 Parking at airport (2nd offense) 50.00 ABANDONED / JUNK VEHICLES / LITTERING [30]31 KMC 12.20.010 Deposit of refuse (littering) 500.00 [31]32 KMC 12.20.010 No fish, fish carcasses, fish parts or offal may be deposited in dumpsters or receptacles unless marked specifically to allow for fish or fish parts. 150.00 [32]33 KMC 12.25.020 Abandonment of vehicle 100.00 17 CITE RULE/OFFENSE FINE [33]34 KMC 12.25.030 Junk vehicle 100.00 OFFENSES AGAINST PROPERTY [34]35 KMC 13.20.030 Protection of North and South Shore—No physical damage 150.00 [35]36 KMC 13.20.030 Protection of North and South Shore—Physical damage 500.00 [36]37 KMC 13.20.035 Burning of pallets and other wood materials containing metal fasteners 50.00 Section 5. That the City of Kenai’s Kenai Offenses in Uniform Minor Offense Table (UMOT) is amended as attached to conform with the amendments enacted above. Section 6. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of February, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Introduced: February 6, 2019 Enacted: February 20, 2019 Effective: March 22, 2019 18 Ordinance Number Ordinance Description Offense Appearance type: Mandatory Optional or Correctable Fine Schedule Amount for Optional / Correctable Maximum Fine Permitted for Mandatory KNMC2.25.010 Intoxicating Liquor Prohibited In Certain Places Without A Permit Mandatory $500.00 KNMC3.05.070 Third violation of all other Provisions of Chapter 3.10 in a twelve month period Mandatory $500.00 KNMC3.10.010 Animal Interfere Peace Or Privacy-1st Offense Optional $50.00 KNMC3.10.010 Animal Interfere Peace Or Privacy-2nd Offense Optional $100.00 KNMC3.10.020(a)Keep The Dog Under Restraint At All Times-1st Offense Optional $50.00 KNMC3.10.020(a)Keep The Dog Under Restraint At All Times-2nd Offense Optional $100.00 KNMC3.10.020(b)Shall Keep The Animal Other Than A Dog Under Restraint-1st Offense Optional $50.00 KNMC3.10.020(b)Shall Keep The Animal Other Than A Dog Under Restraint-2nd Offense Optional $100.00 KNMC3.10.020(c)Shall Keep Animal From Injuring Persons or Property Optional $100.00 KNMC3.10.020[(C)](d)Vicious Or Dangerous Animal Shall At All Times Be Confined Mandatory $500.00 KNMC3.10.020[(D)](e)Keep The Dog Or Cat Under Restraint When In Heat-1st Offense Optional $50.00 KNMC3.10.020[(D)](e)Keep The Dog Or Cat Under Restraint When In Heat-2nd Offense Optional $100.00 KNMC3.10.020[(E)](f)Release An Animal From Restraint Without Its Owner's Consent Mandatory $500.00 KNMC3.10.030 Maintain All Structures/Pens/Yards In A Clean/Sanitary Condition/Free From Oder Mandatory $500.00 KNMC3.10.040 Sell A Diseased/Injured/Otherwise Physically Defective Animal Without Disclosing Mandatory $500.00 KNMC3.10.050 Confine An Animal By A Street/Sidewalk/Alley/Public Place Mandatory $500.00 KNMC3.10.060(a)(1)No Person May Intentionally Kill An Animal Mandatory $500.00 KNMC3.10.060(a)(2)No Person May Intentionally Injure/Torment/Poison/Provoke/Abuse An Animal Mandatory $500.00 KNMC3.10.060(a)(3)No Person May Maintain An Animal Without Providing Food/Water/Shelter Mandatory $500.00 KNMC3.10.060(c)(1)No Person May Cause An Animal To Fight Another Animal Or Human Being Mandatory $500.00 KNMC3.10.060(c)(2)No Person May Train/Keep For The Purpose Of Training A Combat Animal Mandatory $500.00 KNMC3.10.060(c)(3)Permit Premises Be Used For Exhibition Animal Fighting/Present As A Spectator Mandatory $500.00 KNMC3.10.060(d)(1)Accident Involving Injury To Animal: Driver To Stop And Inform Owner/Animal Cont Mandatory $500.00 KNMC3.10.060(d)(2)Accident Involving Injury Animal: Inform Time, Location Of Accident, Description Mandatory $500.00 KNMC3.10.060(e)(1)No Person May Use A Trap Within The City Limits That Can Kill/Mangle An Animal Mandatory $500.00 KNMC3.10.060(f)(1)Allow Any Animal To Molest Or Harass Wild Or Domesticated Animals Mandatory $500.00 KNMC3.10.080 Dog Owners Required To Immediately Dispose Of Dogs Solid Waste Optional $50.00 KNMC3.15.010 License Required Mandatory $500.00 KNMC3.20.010 Failure To License Dog Optional $25.00 KENAI OFFENSES IN UNIFORM MINOR OFFENSE TABLE (UMOT) INSTRUCTIONS The following offenses are currently listed in the court's Uniform Minor Offense Table. To update this list, contact the city attorney or city official authorized to notify the Alaska Court System's Administrative Office of all needed updates to the table by using the 'Request to Update UMOT' form (TR-550): https://public.courts.alaska.gov/web/forms/docs/TR-550.pdf 19 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Scott Bloom, City Attorney DATE: January 31, 2019 SUBJECT: Ordinance No. 3052-2019 – Amending Title 3-Animal Control Including the Definition of “Vicious Animal” and Mandatory Court Appearance Requirements ____________________________________________________________________________ Ordinance 3052-2019 makes three changes to the City’s Animal Control code and corresponding changes to KMC 13.10.015 – Minor Offense Fine Schedule and the City’s Uniform Minor Offense Table necessary to effectuate the changes. 1. The first change amends the definition of “vicious animal” in KMC 3.05.010. This change is for clarification purposes, ensuring that an animal is defined as vicious if it has done an unreasonable harmful act in a hostile manner, or has twice been found as dangerous by a court. (A dangerous animal is defined as an animal which due to improper or inadequate supervision or control has done a harmful act regardless of whether the act was done in a playful or hostile manner.) Whether an animal is defined as “vicious” is significant when it comes to future control and confinement of the animal, penalties for failure to confine and control the animal, and for impounding and adoption procedures. 2. The second change, to KMC 3.05.070- Citation procedures, adds a new provision that animal owners that have been cited for an animal control violation three times in a 12 month period must have an arraignment, that is go before a judge as opposed to just paying a fine. The intent of this is to impart on animal owners a more serious message to try and gain compliance with the assistance of a judge. 3. The third change adds a new offense to KMC 3.10.020, which requires responsible control and confinement of animals. Currently, it is an offense not to have an animal in the City under restraint. Essentially if an owner lets their dog run loose in the City the owner can be cited, generally after several warnings, for failure to restrain their animal. This carries a citation amount of $50. Additionally if an animal is vicious or dangerous by definition, 20 Page 2 of 2 Ordinance 3052-2019 and is loose, a citation can be imposed of up to $500. However, situations occur when an animal has not yet been found to be vicious or dangerous, but is not responsibly restrained and causes injury to another person or animal. Due to the seriousness of the consequences, Animal Control would like to be able to issue a citation that is more serious than the $50 citation, but because the owner may not have had prior warning that their animal would cause harm is less than the $500 maximum citation. For this reason a new citable offense for failure to reasonably restrain or control an animal that causes harm to another person or animal for $100 is proposed to be added. Your Consideration is appreciated. 21 _____________________________________________________________________________________ Sponsored by: Administration CITY OF KENAI RESOLUTION NO. 2019 – 13 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, CONSENTING TO THE DECLARATION OF PENINSULA HANGAR ASSOCIATION (A COMMON INTEREST OWNERSHIP COOPERATIVE) AND SUBLEASE BETWEEN LEGACY ELECTRIC, LLC AND THE PENINSULA HANGAR ASSOCIATION FOR LOT 2, BLOCK 1, GENERAL AVIATION APRON WITHIN THE AIRPORT RESERVE. WHEREAS, Legacy Electric, LLC executed a lease with the City on January 12, 2015 to operate a T-hangar complex on the airport with an initial term of 35 years; and, WHEREAS, Legacy Electric has requested the City consent to a sublease to the Peninsula Hangar Association to operate the T-hangar complex as a common interest ownership cooperative pursuant to Alaska Statute Title 34 Chapter 8; and, WHEREAS, Alaska Statute 34.08.140 requires the City’s consent to the common ownership interest cooperative as the lessor; and, WHEREAS, it is in the best interest of the City to consent to the sublease and creation of the common interest ownership subject to the terms of the City’s Lease with Legacy Electric, LLC in order to support the business plans of the City’s Lessee on the airport reserve and encourage use and development of the Airport. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City Manager is authorize to execute the attached Consent to Sublease between Legacy Electric, LLC and The Peninsula Hangar Association and the Consent to Establishment of a Leasehold Common Interest Community subject to the terms of the Lease between the City of Kenai and Legacy Electric, LLC. Section 2. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of February, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ______________________________________ Jamie Heinz, CMC, City Clerk 22 Consent to Sublease – Legacy Electric, LLC Page 1 of 2 CITY OF KENAI CONSENT TO SUBLEASE The City of Kenai leased certain Airport Reserve Lands recorded on January 12, 2015, under document number 2015-002299-0, Kenai Recording District, to Legacy Electric, LLC. The Sublease Agreement between Legacy Electric, LLC, and Peninsula Hangar Association, whose address is 46113 Sather Court, Soldotna, AK 99669, covering the following-described property: Lot 2, Block 1, General Aviation Apron, located in the Kenai Recording District, Third Judicial District, State of Alaska Is hereby ACKNOWLEDGED AND CONSENTED TO, subject to the same terms and conditions as contained in the original lease and any amendments thereto as described above. This Consent is given by the City of Kenai without waiving any right or action, or releasing the Assignor from any liability or responsibility under the aforementioned Lease, and does not relieve the Assignee from the condition requiring the City's approval for any subsequent sublease or assignment. Dated this _____ day of ______________, 2019. _____________________________ Paul Ostrander City Manager 23 Consent to Sublease – Legacy Electric, LLC Page 2 of 2 STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2019, the foregoing instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of said City. ______________________________ Notary Public for Alaska My Commission Expires: _________ APPROVED AS TO FORM: ________________________________ Scott Bloom City Attorney 24 DECLARATION OF PENINSULA HANGAR ASSOCIATION (A Common Interest Ownership Cooperative) THIS DECLARATION is made on the __ day of , 2019 by LEGACY ELECTRIC, LLC, "Declarant" herein. It is also executed by PENINSULA HANGAR ASSOCIATION as sublessee of LEGACY ELECTRIC, LLC and by the CITY OF KENAI as owner of the real property. PREAMBLE (A) Declarant is the lessee of real property in the Third Judicial District, State of Alaska, located on the airport, described as: Lot 2, Block 1, General Aviation Apron, as shown on Exhibit A attached hereto. The City of Kenai is the owner of the above property, leased to Legacy Electric under a lease described more particularly in Article III of the Declaration. The rights of Declarant (and of any sub lessees , successors, assigns, grantees, and owners of hangar units under proprietary leases) to ownership and utilization of any improvements constructed by Declarant on the leased property shall be subject to rights of the City of Kenai as set forth in the lease referred to above. (B) It is the desire and intention of Declarant to submit the lease hold estate to the provisions of AS 34.08 to create a cooperative. Pursuant to AS 34.08.070, Title 34, Chapter 8 of the Alaska Statutes shall apply to thi s Common Interest Community even though it is restricted exclusively to non-residential use. (C) Declarant hereby declares that all of the leasehold property is , and shall be, held, conveyed, hypothecated, encumbered, leased, rented, used , occupied and improved subject to the following limitations, restrictions, easements, conditions and covenants, all of which are declared and agreed to in furtherance of a plan for the protection, maintenance, improvement and sale of the property for the purpose of enhancing th e value and desirability of the property. All 1 DECLARATION OF PENINSULA HANGAR ASSOCIATION 25 provisions of this Declaration are hereby imposed as equitable servitudes upon the leasehold property. All of the limitations, restrictions, easements, conditions and covenants herein shall run with the land for the term of the lease and shall be binding upon and for the benefit of all of the property and all parties having or acquiring any right, title or interest in the property or any part thereof; subject to the rights of the City of Kenai as set forth herein. ARTICLE I DEFINITIONS Section 1. PROPERTY The "Property" shall mean all the real property interest of the leasehold estate described above. Section 2. "Unit" shall mean and include the elements of a unit not owned in common with the owners of other units in the property; each of the units in the airplane hangar structures, each separately described and designated in Exhibit A which is attached and incorporated here in by the reference, shall be a separate estate consisting of the space bounded by and contained within the interior surfaces of the perimeter walls , floors, roof, windows and doors of each unit. In interpreting deeds, proprietary leases, declarations and plans, the existing physical boundaries of the unit, or a unit constructed in substantial accordance with the original plans thereof, shall be conclusively presumed to be its boundaries rather than the description expressed in the deed, proprietary lease, plan or declaration, regardless of settling or lateral movement of the building, and regardless of minor variances between boundaries as shown on the plan or in the deed and declaration and those of the building as constructed. A survey map and floor plan of the project are attached to this Declaration as Exhibit A . -Section 3. UNIT OWNER "Unit Owner" shall mean the person or person holding an effective Proprietary Lease to a unit. "Project" shall mean the entire property divided into units, including all structures thereon, the common areas, the limited common areas and the units within the property. Section 5. COMMON AREAS "Common areas" or "common elements" shall mean and include all areas on the property, except the units and shall further include, for maintenance purposes of the Association, all gas, water and sewer main lines, all ducts, chutes, conduits, wires and other utility installation of the 2 DEC LARATION OF PENINSULA HANGAR ASSOCIATION 26 hangar structures wherever located (except the outlets thereof when located within the units), the leasehold interest in the lot upon which the structure is located and the airspace above the structure, all baring walls, columns, floors, the roof, slab, foundation, walkways, and stairways. Section 6. HANGAR "Hangar" shall mean and include a unit and any corresponding limited common areas over which the unit owner has an exclusive easement as provided for herein. Section 7. COMMON ASSESSMENT "Common Assessment" shall mean the charge against an owner for his proportionate share of the cost of maintaining, improving, repairing and managing the project and all other common expenses, including reserves, lease costs, and operational costs for the common areas, which are to be paid by each unit owner to the Association for common expenses and charged to his unit. Section 8. 'SPECIAL ASSESSMENT "Special Assessment" shall mean a charge against a particular unit owner and his unit, directly attributable to the unit owner, equal to the cost incurred by the Association for corrective action performed pursuant to the provisions of this Declaration, plus interest thereon as provided for in this Declaration. Section 9. CAPITAL IMPROVEMENT ASSESSMENT "Capital Improvement Assessment" shall mean a charge against each unit owner and his unit, representing a portion of the cost to the Association for installation or construction of any capital improvements on any of the common areas or the limited common areas which the Association may from time to time authorize. Section 10. ASSOCIATION "Association" shall mean Peninsula Hangar Association. Section 11. COMMON EXPENSES "Common expenses" shall mean the actual and estimated costs of maintenance, management, operation, repair and replacement of the common areas and limited common areas (to the extent not paid by the unit owner responsible for payment), including matters set forth in Article VIII, Section I , and the co sts of any other item or items so designated by the Association for any reason whatsoever. Section 12. MORTGATE-MORTGAGEE-MORTGAGOR DECLARATION OF PENINSULA HANGAR ASSOCIATION 3 27 Reference in this Declaration to a mortgage shall be deemed to include a deed of trust; reference to a mortgagee shall be deemed to include the beneficiary of a deed of trust; and reference to a mortgago r shall be deemed to include the trustor of the deed of trust. All third party liens must be approved by the City of Kenai or be in a second position to the City of Kenai. Section 13. BOARD OF DIRECTORS "Board of Directors" shall mean the Board of Directors of the Association. Section 14. VOTES Each unit shall have one (1) vote on each matter brought to a vote. Section 15. OCCUPANCY AGREEMENT PROPRIETARY LEASE An agreement with the Association pursuant to which a member is entitled to exclusive possession of a unit in the cooperative, also termed a "Proprietary Lease." Section 16. COMMON INTEREST COMMUNITY The Peninsula Hangar Association Section 17. COOPERATIVE A common interest community as set forth in AS 34.08 , in which the real property is leased by an association, of whose members are entitled, by virtue of an ownership interest in the association, to exclusive possession of a unit. The term "cooperative" is not intended to mean a cooperative as s·et forth in AS 10.15 . Section 18. DECLARANT Legacy Electric, LLC, or its' successor as defined in AS 34.08.990 (12). Section 19. DECLARATION This instrument, including any amendments. Section 20. SECURITY INTEREST An interest in real estate or personal property, created by contract or conveyance, that secures payment or performance of an obligation. The term includes a lien created by a mortgage, deed of trust, trust deed, security agreement, contract for deed, land sales contract, lease intended as security, assignment of lease or rents intended as security, pledge of an ownership interest in an Association, and any other consensual lien or title retention contract intended as security for an obligation. Third party liens or security interests affecting City of Kenai property must be individually consented to by the City of Kenai. DECLARATION OF PENINSULA HANGAR ASSOCIATION 4 28 ARTICLE II Section 1. STATEMENT OF MATTERS REQUIRED BYLAW COMMON INTEREST OWNERSHIP ACT Pursuant to AS 34.08.070, the Common Interest Ownership Act of Alaska, Title 34, Chapter 8, shall apply to this cooperative project. Section 2. MATTERS REQUIRED TO BE STATED BY LAW The matters required to be set out by AS 34.08.130 are as follows: AS 34.08.130(a)(l) AS 34.08.130 (a)(2) A S 34.08.130 (a)(3) AS 34.08.130(a)(4) AS 34.08 .130(a)(5) AS 34.08 .130 (a)(6) AS 34.08.130 (a)(7) AS 34.08.130(a)(l 1) 'AS 34.08.130 (a)(12) This is a cooperative project, named Peninsula Hangar Association. The project i s located solely in the Kenai Recording District, Third Judicial District, State of Alaska. The legal description is set forth in the Preamble. The Declarant has created twelve units in Phase I, The boundaries of each unit are as defined in Article I, "Unit " and as delineated on the attached Exhibit B and as described in the attached Exhibit C. There are a present no limited common elements, except provided by statute. No additional real estate will be allocated as limited common elements. Each unit shall be allocated an equal interest in ownership and responsibility for common expenses , and shall have one vote in the Association. This formula shall apply notwithstanding any differences in the square feet of floor space in each unit as set forth in the attached Exhibit C. Units shall be used only for the private storage of aircraft, or such other related uses as may be allowed by the City of Kenai under the Lease described in Article III, or under Article IV, Section 1, of this Declaration. DECLARATION OF PENINSULA HANGAR ASSOCIATION 5 29 AS 34.08.130 (a)(13) Units shall not be subject to any easements and licenses, except as set forth in this Declaration and the City of Kenai leasehold . AS 34.08.130 (a)(14) Plats and plans are attached as Exhibits A and B. No additional improvements will be located on the property as part of Phase I. Declarant shall have sole control over the Association until thirty (30) days after conveyance of the first five units, as provided in AS 34.08.330(d). The leasehold and subleasehold to which the common interest community is subject is described in the following Article III. ARTICLE III LEASEHOLD AND SUBLEASEHOLD TO WHICH THE COOPERATIVE IS SUBJECT Section 1. LEASEHOLD Pursuant to AS 34.08.140, this common interest community is subject to a leasehold and a subleasehold. Expiration or termination of the lease or sublease would terminate the common interest community. Additional information required to be stated by AS 34.0 8.140 (a) is as follows: A. The lease is with City of Kenai, Kenai Municipal Airport, Lease of Airport Reserve Lands, executed by the Manager of the City of Kenai, Rick R. Koch on January 12, 2015. 'B. The lease is scheduled to expire on August 30, 2049 unless terminated earlier in accordance with its terms , and has options to extend for an additional 20 years. A renewal thereafter may be made as agreeable to the City of Kenai and Lessee. C . A copy of the lease is attached to this Declaration as Exhibit D. A legally sufficient description of the real estate subject to the lease is as set forth on Page 2 of the lease. D . The unit owners do not have a right to rede em the reversion of the lease . E . The unit owners do not have the right to remove improvements after the expiration or termination of the lease. 6 DECLARATION OF PENINSULA HANGAR AS SOCIATI ON 30 F. The unit owners' rights to renew the lease are subject to renewal rights of Legacy Electric, LLC as set forth in the lease referred to above. Section 2 SUBLEASEHOLD The common interest community is also subject to the following sublease. A. The sublease is of the City of Kenai Municipal Airport lease referenced in Section 1 above. Legacy Electric LLC is the sublessor and Association is the sublessee. The sublease, together with the City's consent to the Sublease, was recorded in the Kenai Recording District on the __ day of , 2019. B. The sublease is schedule to expire on termination of the City of Kenai lease to Legacy Electric, LLC. C. A copy of the sublease, together with the City of Kenai's Consent, is attached hereto as Exhibit E. A legally sufficient description of the real estate subject to the lease is set forth on Page 2 of the sublease. D. The unit owners do not have a right to redeem the reversion of the sublease. E. The unit owners do not have the right to remove improvements after termination or expiration of the sublease. F. The unit owners do not have the right to renew the sublease, but if the sub lessor extends or renews its lease from the City of Kenai, it shall offer to extend or renew the lease to the Association on terms intended to be similar to the initial sublease, with the same ratio of sublease rate to lease rate, and which may take into account any other new terms in any lease extension or renewal from the City of Kenai. G. The sublessee Association shall have the right to assume all interests of Legacy Electric LLC under the lease from the City of Kenai, by obtaining the City of Kenai's written consent to become the successor lessee, and provided that the City of Kenai releases Legacy Electric LLC from any liability under the lease. Upon any default by the Association to pay the annual sublease payment or fulfill any other obligations of the sublease, the sub lessor may notify the Association in writing and demand compliance with the sublease within thirty (30) days. The DECLARATION OF PENINSULA HANGAR ASSOCIATION 7 31 sub lessor shall mail a copy of the notice to each unit owner. If the default is not cured within the thirty-day period, the sublessor may terminate the sublease pursuant to Alaska law. Section 3. NOTICE AND RESERVATION CONCERNING CITY OF KENAI Nothing in this Declaration alters or diminishes the rights of the City of Kenai under its Lease described above. Allocation of interests in the hangar units and common areas is a matter between the Association and unit owners, and is not a subdivision of the leasehold as against the City of Kenai. Purchase of a unit shall constitute agreement by each unit owner to be bound by and comply with all terms of the City of Kenai Lease as if a Lessee thereunder (provided, however, a unit owner does not personally assume or guarantee any amounts owed to the City of Kenai under its Lease, except that the Member agrees to indemnify, defend, and hold harmless the City of Kenai with respect to matters arising out the Member's use of the Member's unit). Each unit owner acknowledges that a violation of the City of Kenai Lease by the Association, or Declarant, or any unit owner may result in the termination of all rights under the City of Kenai Lease and of all unit owners' rights under this Declaration and any deed or proprietary lease. In the event of any default alleged by the City of Kenai under its Lease, the Association may take whatever action is necessary or appropriate to cure the alleged default and avoid termination of the City of Kenai Lease, consistent with the terms and conditions of the lease. The sale, assignment, or sublease of any unit is subject to consent by the City of Kenai, which shall not unreasonably withhold consent. The City of Kenai shall not be obligated to consent if the City of Kenai Lease is in default. Declarant's rights and reservations contained in this Declaration are subject to consent of the City of Kenai. ARTICLE IV HANGAR AND USE RESTRICTIONS Section 1. HANGAR USE (a) The use of the Peninsula Hangar Association hangars is exclusively for the non- commercial storage of light aircraft (defined as up to by not including 42 foot wingspan) and respective aircraft parts. All other uses incidental to an airport such as car rental agencies, limousine service, restaurants, insurance sales, and other such incidental services not directly related to the maintenance and operation of aircraft are prohibited. DECLARATION OF PENINSULA HANGAR ASSOCIATION 8 32 (b) Only light maintenance will be performed (i.e., parts replacement, annual inspections). (c) No fueling or defueling will be conducted in the hangars. ( d) No spray applications of any materials in connection with recovering or painting will be permitted in the units. (e) All flammable and combustible liquids shall be store in approved containers and shall be stored in compliance with the quantity and manner of storage regulations of the Fire Code. (f) Contaminants spilled or dripped on the floors shall be minimized by the use of drip pans or other containment devices that intercept contaminants before they are allowed to hit the floor. (g) All spills of flammable or combustible liquids shall be cleaned up immediately by using absorb pads or other material approved for the use intended. Such materials shall be disposed of in a manner approved by the State Department of Environmental Conservation. (h) There shall be no cleaning of engines, parts, floors or other materials in the hangar units unless in an approved solvent tank or other containment vessel designed to prevent spills to the floor. (i) There shall be no welding allowed in any unit. (j) No aircraft, vehicles, or other personal property may be stored permanently outside of the hangars without the Airport Manager's approval in writing. Vehicles will be parked in designated locations, or when aircraft is gone vehicles may be temporarily stored in the hangars. (k) The units shall not be used for any unlawful purpose of or for any purpose or use that may constitute a nuisance or hazard to health, safety, or property. The units shall not be used or occupied for any purpose in violation of any law, lawful order, or rule or regulation concerning the operation or use of Kenai Municipal Airport. Section 2. DESCRIPTION OF COOPERATIVE BUILING There are two buildings in the project which is on the aforementioned survey map and floor plan. They are one-level buildings which contain twelve (12) units. (six units each) Section 3. PARKING AND VEHICULAR RESTRICTIONS No vehicle shall be left on the property subject to this Declaration, except for incidental parking by unit owners in connection with use of their units which shall not interfere with the DECLARATION OF PENINSULA HANGAR ASSOCIATION 9 33 access to or use of any other unit. There shall be no exposed storage deposited, accumulated or preserved anywhere on the property;. Section 4. NUISANCES No noxious or offensive activities (including, but not limited to, the repair of airplanes other than as approved by the Board of Directors) shall be carried on upon the project. The Board of Directors of the Association shall have the right to determine if any noise or activity constitutes a nuisance (but such determination shall not be binding on the City of Kenai). No unit owner shall permit or cause anything to be done or kept upon the property which will increase the rate of insurance thereon or which will obstruct or interfere with the rights of other unit owners, nor will he commit or permit any nuisance on the premises or commit or cause any illegal act to be committed thereon. Each unit owner shall comply with all of the requirements of the local or state authorities and with all other governmental authorities with respect to the occupancy and use of a hangar. Section 5. SIGNS No signs, posters, displays or other advertising devices of any character shall be erected or maintained on, or shown or displayed from, the hangars without prior written approval having been obtained from the Board of Directors of the Association; provided, however, that the restrictions of this paragraph shall not apply to any sign or notice of customary and reasonable dimension which states that the premises are for rent or sale. Address and identification signs shall be maintained by the Association. The Board of Directors may summari ly cause all unauthorized signs to be removed and destroyed. This section shall not apply to any signs used by Declarant or its agents in connection with the original construction and sale of the units. Section 6. HOLD HARMLESS AND INDEMNIFICATION Each unit owner shall be liable to the Association for any damage to the common areas or any equipment thereon which may be sustained by reason of the negligence of said unit owner or of his guests or invitees, to the extent that any such damage shall be removed within a reasonable time upon completion of construction of the project. Section 11 . RUBBISH REMOVAL No owner of a unit shall permit or cause any trash or refuse to be disposed of on any portion of the project subject to this Declaration. No portion of the project shall be used for the storage of building materials, refuse or any other materials other than in connection with approved construction. Section 12. LEASE OF UNITS 10 DECLARATION OF PENINSULA HANGAR ASSOCIATION 34 Any unit owner may lease his unit to a third party, with prior written notice to the Association and consent by the City of Kenai, which consent shall not be unreasonably withheld. Such a lease must be in writing and shall provide that the failure to comply in all respects with the provisions of this Declaration, the Association By laws, the City of Kenai Lease, or the unit owner's Proprietary Lease shall be a default under the terms of the lease. A lessee of such a unit shall not have any rights in the Association, and the unit owner shall retain all rights as owner, unless the owner sells all his interest in the unit to the renter as allowed by this Declaration, and the renter becomes a unit owner as defined in Article I, Section 3. ARTICLEV ARCHITECTURAL PROVISIONS Excepting the interior of units, no replacement, addition or alterat ion of the building, structure, fence , drainage facility, common or limited common area landscaping or planting shall be effected on any hangar other than by Declarant until the plans, specifications and plat plan showing the location and nature of such replacement, addition, alteration or removal have been submitted to , and approved in writing by the Board of D irectors and, as may be applicable pursuant to the City of Kenai Lease, the City of Kenai, nor shall any exterior painting or decorative alteration be commenced until the board has approved the plans therefore, including the proposed color schemes, design thereof, and the quality of materials to be used. All such plans and specifications shall be prepared by an architect or landscape architect or licensed building designer, said person to be employed by the init owner making applications at his sole expense. Plans and resubmittals thereof shall be approved or disapproved within thirty (30) days . The approval of the plans and specifications may be withheld not only because of noncompliance with any of the specific conditions, covenants and restrictions contained in this Declaration but also by reason of reasonable dissatisfaction of the Board with the location of the structure, the elevation, color scheme, finish , design, proportions, architecture, shape, height, style and appropriateness of the proposed structure or altered structure, the materials used therein, or because of its reasonable dissatisfaction with any or all other matters or things which, in the reasonable judgment of the Board, will render the proposed investment inharmonious or out of keeping with the general plan of improvement of the property or with the improvements erected on other hangars. If, after such plans and specifications have been approved, the improvements are altered, erected or maintained upon the hangar other than as approved by the Board such alteration, erection and maintenance shall be deemed to have been undertaken without the approval of the Board having been obtained as required by this Declaration. After the expiration of one (1) year from the date of completion of any improvement, said improvement shall, in favor of purchasers and encumbranc ers, in good faith and for value, be deemed to comply with all of the provisions hereof, unless a notice of such noncompliance or non-completion, executed by one member of the Board, shall appear of record in the Office of the Recorder, Kenai Recording District, or legal proceedings shall have been instituted to enforce compliance with these provisions. (Any such improvements shall not waive any rights of the 11 DECLARATION OF PENINSULA HANGAR ASSOCIATION 35 Municipality under its lease of the property.) The approval of the Board of any plans or specifications submitted for approval as herein specified for use on any hangar shall not be deemed to be a waiver by the Board of its right to object to any of the features or elements embodied in such plans and specifications, if or when the same features or elements are embodied in any subsequent plans and specifications submitted for approval as herein provided for use on other hangars. No member of the Board shall be liable to any person for his decisions or failure to act in making decisions as a member of said Board. The members of the Board shall receive no compensation for their services performed pursuant to this Declaration. Upon approval of the Board, it shall be conclusively presumed that the location and height of any improvement does not violate the provisions of this Declaration. ARTICLE VI REPAIR AND MAINTENANCE Section 1. REP AIR AND MAINTENANCE DUTIES OF ASSOCIATION The Association shall maintain, repair and make necessary improvements to, and pay for out of the maintenance fund to be provided, all common areas and the building thereon; all corrective architectural, landscaping and repair work within hangars, if the unit owner fails to repair the areas subject to his control and duty to maintain. all metered utilities in common areas; and all common parking areas , ramps , walks and other means of ingress and egress within the project. To the extent not assessed to or paid by the unit owners , the Association shall pay all real and personal property taxes and assessments levied upon the Cooperative's property, including any portion of the units, common areas, or limited common areas. It shall further be the affirmative duty of the Association to require strict compliance with all provi sions of this Declaration and to inspect the property for any violations thereof. Section 2. REPAIR AND MAINTENACE BY UNIT OWNERS Each unit owner shall maintain, repair, replace and restore all portions of his hangar, including the interior walls, ceilings, windows, floors, doors and permanent fixtures and limited common areas subject to his exclusive control, in a safe, clean, sanitary and attractive condition. ACTICLE VII DESTRUCTION OF IMPROVEMENTS Section 1. DUTY TO RESTORE A portion of the common interest community for which insurance is required under AS 34.08.440 of the Act or for which insurance carried by the Association is in effect, whichever is more extensive, that is damaged or destroyed must be repaired or replaced promptly by the Association unless : 12 DECLARATION OF PENINSULA HANGAR ASSOCIATION 36 (a) The common interest community is terminated and AS 34.08.260 applies; (b) Repair or replacement would be illegal under a state statute or municipal ordinance governing health or safety; ( c) Eighty percent (80%) of the unit owners, including every owner of an unit or assigned limited common elements that will be rebuilt, vote not to rebuild Section 2. The cost or repair or replacement in excess of insurance proceeds shall be a common expense, but subject to a unit owner's obligations under Article IV, Section 6 of this Declaration. Section 3. PLANS The common interest community must be repaired and restored in accordance with either the original plans and specifications or other plans and specifications which have been approved by the Board of Directors and a majority of the unit owners. Section 4. REPLACEMENT OF LESS THAN ENTIRE COMMON INTEREST COMMUNITY (a) The insurance proceeds attributable to the damaged common elements shall be used to restore the damaged area to a condition compatible with the remainder of the common interest community. (b) Except to the extent that other persons will be distributees: 1. The insurance proceeds attributable to units and limit ed common elements that are not rebuilt shall be distributed to the owners of those units and the owners of the units which those limited common elements were allocated, or to lien holders, as their interest may appear; and 2. The remainder of the proceeds shall be distributed to all the unit owners or lien holders, as their interest may appear, in proportion to the common expense liabilities of all the units. ( c) If the unit owners vote not to rebuild any unit, that unit's interest shall be automatically reallocated as if the unit has been condemned under AS 34.08.740 (a), and the Association shall promptly prepare, execute and record an amendment to the Declaration reflecting the reallocation. Section 5. INSURANCE PROCEEDS The Board of Directors of the Association shall hold any insurance proceeds in trust for the Association, unit owners and lien holders as their interests may appear. Subject to the DECLARATION OF PE NIN SU LA HANGAR ASSOCIATION 13 37 provisions set forth above, the proceeds shall be disbursed first for the repair or res toration of the damaged property, and the Ass ociation, unit owners and lien holders are not entitled to receive payment of any portion of the proceeds unless there is a surplus of proceeds after the common interest community has been completely repaired or restored, or the common interest community is terminated. Section 6. NOTICE TO MORGAGEE Upon request , the Board of Directors shall give any institutional holder of a first mortgage on any unit, who is listed in the records of the A ssociation, notice of any substantial damage or destruction to a unit or the common elements. In any event, notice will be given whenever the damage to the common elements exceeds $10,1000 or the damage to the individual unit exceeds $1 ,000. ARTICLE VIII ASSESSMENT AND COLLECTION OF COMMON EXPENSES Section 1. DEFINITIONS OF COMMON EXPENSES Common expenses shall include: (a) Expenses of administration, maintenance, utilities, and repair or replacement of the common elements; (b) Expenses declared to be common expenses by the Declaration, Bylaws of the Association, or Alaska law, ( c) Expenses agreed upon as common expenses by the Association; ( d) Expenses to m eet any City of Kenai or Kenai Peninsula Borough tax liability on all the property constituting the common interest community; ( e) Expenses for the amortization of any security interest or interest encumbering the common interest community as a whole ; (f) Any expenses with respect to insurance coverage on units and common elements, including the deductible; and (g) Such reserves as may be established by the Association, whether held in trust or by the Association, for lease payments; for repair, replacement or addition to the common el em ents or any other r e al or p e rs onal property acquired or held by the Association; for blanket mortgage shortfalls; and for a working capital fund, established as part of the operating reserve account. Section 2. APPORTIONMENT OF COMMON EXPENSES 14 DECLARATION OF PENINSULA HANGAR AS SOCIATION 38 Except as provided in this Article, all common expenses shall be assessed against all units equally. Section 3. (a) COMMON EXPENSES ATTRIBUTABLE TO FEWER THAN ALL UNITS Any common expense for services provided by the Association to an individual unit at the request of the unit owner shall be assessed against the unit which benefits from such service. (b) Any insurance premium increase attributable to a particular unit shall be assessed against the unit. ( c) Assessments to pay a judgment against the Association may be made only against the units in the common interest community at the time the judgment was entered, in proportion to their common expense liabilities. ( d) If a common expense is caused by the misconduct of a unit owner, the Association may assess that expense exclusively against the unit. (e) Section 4. (a) (b) Fees, charges, late charges, fines, and interest charged against a unit owner by the Association pursuant to this Declaration and the Act are enforceable as common expense assessments against the unit. The association has a statutory lien on a unit for an assessment levied against that unit or fines imposed against its unit owner from the time the assessment or fine becomes due. Fees, charges, late charges, fines and interest charged pursuant to Alaska Statutes are enforceable as assessments under this section. If an assessment is payable in installments, the full amount of the assessment is a lien from the time the first installment becomes due. A lien under this section is prior to all other liens and encumbrances on a unit except (1) a lien and encumbrances which the Association creates, assumes, or takes subject to; (2) a first security interest encumbering only the interest of the unit owner and perfected before the date on which the assessment sought to be enforced became delinquent; and (3) liens for real property taxes and other governmental assessments or charges against the unit. A lien, under this section, is also prior to all security interests described in (2) of this subsection if the common expense assessments based on the periodic budget adopted by the Association would have become due in the absence of acceleration during the six months immediately preceding institution of an action to enforce the lien. This subsection does not affect the priority of mechanics or materialmen's liens, or the 15 DECLARATION OF PENINSULA HANGAR ASSOCIATION 39 priority of liens for other assessments made by the Association. A lien under this is not subject to AS 09.38.010 (Homestead Exemption). ( c) The recording of the Declaration constitutes record notice and perfection of the lien. Further recordation of any claim of lien for assessment under this section is not required. ( d) A lien for unpaid assessments is extinguished unless proceedings to enforce the lien are instituted within three years after the full amount of the assessment becomes due; provided that if an owner of a unit subject to a lien under this section files a petition for relief under the United States Bankruptcy Code, the period of time for instituting proceedings to enforce the Association's lien shall be tolled until thirty days after the automatic stay of the proceeding under Section 362 of the Bankruptcy Code is lifted. (e) This section does not prohibit actions to recover sums for which subsection 9(a) of this section creates a lien or prohibit the Association from taking a deed in lieu of foreclosure. (f) A judgment or decree in an action brought under this section is enforceable by execution under AS 9-35-010. It shall include costs and reasonable attorney's fees for the prevailing party. (g) The Association upon written request shall furnish to a unit owner a statement setting out the amount of unpaid assessments against the unit. The statement must be furnished within ten business days after receipt of the request and is binding on the Association, the Board of Directors, and every unit owner. (h) Upon nonpayment of an assessment on a unit, a unit owner may be evicted in the same manner as provided by law in the case of an unlawful holdover by a commercial tenant, and the lien may be foreclosed under this section. (i) The Association's lien may be foreclosed as a mortgage or as a deed of trust on real estate is foreclosed or as a lien is foreclosed under AS 34.35.005. (j) The unit may also be so ld as, subject to the consent of the City of Kenai as described in Article III, Section 3, above, as follows : 1. The Association, upon nonpayment of an assessment and compliance with this subsection, may sell the unit at public sale or by private negotiation, and at any time and place; each aspect of the sale, including the method, advertising, time, place, and terms must be reasonable; the Association shall give reasonable written notice to the unit owner and a lessee of the unit owner of the time and place of the public sale or, if a private sale is 16 DECLARATION OF PENINSULA HANGAR ASSOCIATION 40 intended, of the intention of entering into a contract to sell and of the time after which a private disposition may be made; the same notice must also be sent to any other person who has a recorded interest in the unit that would be cut off by the sale, but only if the recorded interest was on record seven weeks before the date specified in the notice as the date after which a private sale may be made; the notices required by this subsection may be sent to any address reasonable in the circumstances; sale may not be held until five weeks after the sending of the notice; the Association may buy at a public sale and, if the sale is conducted by a fiduciary or other person not related to the Association, at a private sale. 2. Unless otherwise agreed, the debtor is liable for any deficiency in a foreclosure sale under AS 09.45.170. 3. The proceeds of a foreclosure sale must be applied in the following order: i. The reasonable expenses of sale; 11. The reasonable expenses of securing possession before sale including holding, maintaining, and preparing the unit for sale, payment of taxes and other governmental charges, premiums on hazard and liability insurance; m. Satisfaction of the lien of the Association; 1v. Satisfaction in the order of priority of a subordinate claim of record; and v. Remittance of any excess to the unit owner. 4. A good faith purchaser for value acquires the unit free of the Association's debt that gave rise to the lien under which the foreclosure sale occurred and any subordinate interest, even though the Association or other person conducting the sale failed to comply with the requirements of this section. the person conducting the sale shall execute a conveyance or other appropriate documents to the purchaser sufficient to convey the unit and stating that it is executed after a foreclosure of the Association's lien by power of sale and that the person conducting the sale was empowered to make the sale;-signature and title or authority of the person signing the conveyance as grantor and a recital of the facts of non-payment of the assessment and of the giving of the notices required by this subsection are authority of the person to sign; further proof of authority is not required even if the Association is named as grantee in the conveyance. 17 DECLARATION OF PENINSULA HANGAR ASSOCIATION 41 Section 5. 5. At any time before the Association has disposed of a unit in a cooperative or entered into a contract for its disposition under the power of sale, the unit owner or the holder of a subordinate security interest may cure the default of the unit owner and prevent sale or other disposition by tendering the performance due under the security agreement, including an amount due because of exercise of a right to accelerate, plus the reasonable expenses of proceeding to foreclosure incurred to the time of tender. BUDGET ADOPTION AND IMPLEMENTATION Not later than thirty (30) days prior to the beginning of each calendar year, the Board of Directors shall estimate the total charges to be assessed against each unit. Written notice of the annual assessments shall be sent to every unit owner subject thereto. Each owner thereof shall thereafter pay to the Association his ass essment in monthly, quarterly, or other installments as established by the Board of Directors. In the event the Board of Directors shall determine that the estimate of to tal charges for the current year is or will become inadequate to meet all expenses of the property for any reason,, it shall immediately determine the approximate amount of such inadequacy and issue a supplemental estimate of the total charges to be assessed against each unit. Each installment of an assessment shall become delinquent if not paid on or before thirty (30) days from the date upon which it becomes due. All annual common assessments shall be paid according to the percentage of ownership in the common areas as set forth in Exhibit C. All excess funds remaining in the general operating reserve fund over and above the amounts used for the operation of the project shall be returned to the unit owners in a proportion equal to their individual contributions or may be retained by the Association and applied to the following year's assessments. In a voluntary conveyance of a unit, the grantee of the same shall be jointly and severally liable with the grantor for all unpaid assessments by the Association against the latter for his share of the common expenses up to the time of the grant or conveyance, without prejudice to the grantee's right to recover from the grantor the amounts paid by the grantee therefore. From and after the date of recordation of a Proprietary Lease to the first owner of each unit in the project, the unit owner may be required by the Board to establish an assessment reserve fund with the Association, in the amount of $1,000. In addition, the unit owner shall pay to the Association the regular assessments as provided herein, the purpose being to have avai lable at all times for the Association an assessment reserve fund equal to two months' assessments. This assessment reserve fund may be maintained at all times, just as a reserve for taxes and insurance is so maintained, and, in the event of a subsequent transfer of the unit owner's interest in the project, the subsequent purchaser shall be responsible for establishing and maintaining this reserve fund. 18 DECLARATION OF PENINSULA HANGAR ASSOCIATION 42 Section 6. DELINQUENCIES There shall accrue with each delinquent assessment a late charge of Ten Dollars ($10), together with interest at the maximum rate permitted by law on such delinquent sums, calculated from the date of delinquency to and including the date full payment is received by the Association. ARTICLE IX THE ASSOCIATION Section 1. FORMATION AND MEMBERSHIP The association shall be incorporated under the name of Peninsula Hangar Association, as a Nonprofit corporation under the laws of the State of Alaska. Every unit owner who is subject to assessment shall automatically, upon becoming the owner of a unit, be a member of the Association and shall remain a member thereof until such time as his ownership ceases for any reason, at which time his membership in the Association shall automatically cease. A person shall be deemed an owner of a unit only upon execution and recordation of a Proprietary Lease conveying the unit to him, and the membership shall be appurtenant to the unit conveyed. Each member shall be issued a Certificate of Ownership by the Association, which shall be evidence of hi s rights in the Association. (a} Bylaws. The Association shall adopt Bylaws for the administration of the property and the Association and other purposes not inconsistent with this Declaration and the Act. These Bylaws shall be adopted by the Board of Directors of the Association after their election at the Association's organizational meeting. The Bylaws may thereafter be amended or modified by the vote of a majority of the unit owners. Any proposed modifications or amendments to the Bylaws shall be proposed by Association members at any duly constituted annual or special meeting of the Association. A copy of the propo sed amendment shall be included in the notice of any meeting in which action is to be taken. (b) Proprietary Lease. Each member, as a condition of owning a unit, must execute a Proprietary Lease with the Association. The Board of Directors shall adopt a form of Proprietary Lease, in a recordable form, to be used by the Association. The Proprietary Lease shall contain such restrictions, limitations, and provisions with respect to the amendment thereof, the subletting of the unit, and other terms, provisions, conditions and covenants, as the Board of Directors may determine. After a Proprietary Lease in the form so ado pted by the Board of Directors shall have been executed and delivered by the Association, further Proprietary Leases subsequently executed and delivered shall be in the same form, except with respect to the date of commencement and the monthly charges payable there under, or except as the Association deems a modification or amendment to the form is reasonable and appropriate. 19 DECLARATION OF PENINSULA HANGAR ASSOCIATION 43 (c) Assignment of Proprietary Lease. The Proprietary Lease shall be assigned or transferred only in compliance with terms, conditions, and provisions of this Declaration, such Proprietary Lease, and the Lease with the City of Kenai. Without limiting the foregoing and except for rentals as provided in Article IV, Section 12, no assignment of any Proprietary Lease shall take place except in conjunction with the sale or transfer of a membership in the Association, nor shall the assignment be effective unless and until all sums required to be paid by the assignor to the Association have been so paid and the assignee has executed a new Proprietary Lease with the Association. Until the Association has accepted and executed a new Proprietary Lease with an assignee, the assignor shall remain a member for purposes of remaining responsible for all expenses associated with his unit. Upon completion of an assignment to an assignee, the assignor shall be released from all liabilities to the Association accruing in the future, arising from membership in the cooperative. Section 2. GENERAL POWERS OF THE ASSOCIATION The Association shall have all of the powers set forth in its Articles of Incorporation, together with its general powers as a nonprofit corporation, generally to do any and all things that a corporation organized under the laws of the State of Alaska may lawfully do in operating for the benefit of its members, subject only to the limitations upon the exercise of such powers as are expressly set forth in the Articles of Incorporation, the Bylaws and in this Declaration and to do any and all acts which may be necessary or proper for or incidental to the exercise of any of the express powers of the Association or for the peace, health, comfort, safety and general welfare of the unit owners and their guests. The association shall have a lien (as such term is defined in AS 34.08.470) on each outstanding unit in order to secure payment of any sums which shall be due or become due to the Association for any reason whatsoever, including any sums due under an Proprietary Lease appurtenant thereto. Section 3 SPECIAL POWERS OF BOARD OF DIRECTORS Without in any way limiting the generality of the foregoing, in the event that the Board of Directors determines that an improvement is in need of repair, restoration or painting, or that landscaping is in need of installation, repair or restoration, or that an improvement is in existence without proper approval of the Board or that there is a violation of any provision of this Declaration, then the Board of Directors shall give written notice to the unit owner of the condition or violation complained of, and unless the Board has approved in writing corrective plans proposed by the unit owner to remedy the condition complained of within such period of time as may be determined reasonable by the Board of Directors after it has completed thereafter within the time allotted by the Board of Directors, the Board of Directors shall undertake to remedy such condition or violation complained of, and the cost thereof shall be charged to the unit owner and his unit whose hangar is the subject matter of the corrective work, and such cost 20 DECLARATION OF PENINSULA HANGAR ASSOCIATION 44 shall be deemed to be a special assessment to such unit owner and his unit and subject to levy, enforcement and collection by the Board of Directors in accordance with the assessment lien procedure provided for in this Declaration. Section 4. RIGHTS OF ENTRY The Association shall have a limited right of entry in and upon all limited common areas and the exterior of all units for the purpose of taking whatever corrective action may be deemed necessary or proper by the Association, Nothing in this Article shall in any manner limit the right of the unit owner to exclusive control over the interior of his unit , subject to the terms and conditions of the Lease with the City of Kenai, provided, however, that an owner shall grant a right of entry to the Association, or any other person authorized by the Association, in case of any emergency originating in or threatening his unit, whether the owner is present or not. Provided, further, that an owner shall permit other owners, or their representatives, to enter his unit for the purpose of performing required installation, alterations or repair of the mechanical or electrical services to a hangar, provided that requests for entry are made in advance and that such entry is at a time convenient to the owner whose unit is to be entered. In case of an emergency, such right of entry shall be immediate. Section 5 MISCELLANEOUS DUTIES AND POWERS The Association shall have the right to install or construct capital improvements on any of the common areas. The Association may, at any time and from time to time, reconstruct, replace or refinish any improvement or portion thereof upon the common areas in accordance with the original design, finish or standard of construction of such improvement; construct, reconstruct, replace or refinish any surface upon any portion of common areas; replace destroyed trees or other vegetation and plant trees, shrubs and ground cover upon any portion of the common areas, and place and maintain upon the common areas such signs as the Association may deem necess ary for their identification, for regulation of traffic, including parking, the regulation and use of the common areas and for the health, welfare and safety of unit owners and their guests. The Association may delegate all of the powers contained in this Declaration to any management organization or individual, and the Association may employ personnel necessary for the effective operation and maintenance of the building and common areas of any type described herein, including the employment of legal and accounting services. Section 6. PRIORITIES AND INCONSISTENCIES If there are conflicts or inconsistencies between this Declaration and either any Proprietary Lease or the Bylaws, the terms and provisions of this Declaration shall prevail. Notwithstanding the foregoing the City of Kenai Lease and any laws, regulations, or ordinances governing the Kenai Airport shall prevail and control over all other agreements, leases, sublease Bylaws and this Declaration. 21 DECLARATION OF PENINSULA HANGAR ASSOCIATION 45 Section 7. MANAGING AGENT The Association may enter into a written contract with a professional, corporate or individual manager to conduct and perform the business , obligations and duties of the Association. Section 8. SHARES AND VOTING At any meeting of the Association, each unit owner, including Declarant as to those units not sold, shall be entitled to one vote for each unit owned. Where there is more than one record owner of a unit, any or all of such persons may attend any meeting of the Association, but it shall be necessary of those owners present to act unanimously in order to cast the vote to which the unit entitled. All agreements and determinations lawfully made by the Association in accordance with the voting procedures and rights established herein shall be deemed to be binding on all owners of units, their successors and assigns. ARTICLE X RIGHTS OF MORTGAGEE AND CITY OF KENAI Section 1. PRIORITY Where the mortgagee of a mortgage of record or other purchaser of a unit obtains title to the same as a result of foreclosure of any such mortgage, or other purchaser of a unit obtains title to the same as a result of a deed taken in lieu of foreclosure, the acquirer of title shall be required to execute a Proprietary Lease with the Association and to pay any delinquent portion of the share of the common expenses or assessments by the Association chargeable to such unit which became due prior to the acquisition of title to such unit by such acquirer and shall be subject to any future assessments which become due subsequent to his acquisition of title. Such unpaid share of common expenses or assessments shall be deemed to be expenses collectible from such acquirer, successors and assigns. Section 2. DEFAULT A breach of any of the provisions, covenants, restrictions or limitations hereof, the recordation of any lien or assessment hereunder, or the pursuit of any remedy hereunder shall not defeat or render invalid the lien of any mortgage made by a unit owner in good faith and for value upon the interest of a unit owner. All of the provisions herein shall be binding upon and effective against any owner whose title to said property is hereafter acquired through foreclosure or trustee's sale. The holder of a first mortgage of record is also, upon request, entitled to written notification from the Association of any default in the performance by the individual unit owner of any obligation under this Declaration, Association Bylaws or other Association documents , which default is not cured within sixty (60) days. 22 DEC LARATION OF PENINSULA HANGAR ASSOCIATION 46 Section 3. RIGHT TO INSPECT ASSOCIATION RECORDS AND NOTICE The holder of a first mortgage of record, its successors and assigns, shall have the right to inspect the Association's books of account and other financial records and shall also be able to require the Association to provide to it such additional financial data as may be reasonably requested to protect its interests, including annual financial statements, within ninety (90) days following the end of the fiscal or calendar year of the Association. Written notice of all Association meetings shall be sent to first mortgagees of record upon their written request who may designate an agent to attend such meetings. Section 4. PRIOR APPROVAL Nothing in this Declaration or the Bylaws of the Association of unit owners provided for herein to the contrary, and except as to reserved rights of the Declarant, or as to the rights of the City of Kenai pursuant to the City of Kenai Lease described in Article III, prior written approval of one hundred percent ( 100%) of the holders of the first mortgages or deeds of trust covering all or any portion of the project shall be a condition precedent to the effectiveness of any of the following actions: (a) Removal of all or any portion of the property or project from the provisions of the Common Interest Ownership Act pursuant to Alaska Statute 34.08 or as said statute may be amended from time to time. (b) A change in the pro rata interest or obligation of any unit for purposes of levying assessments or charges or allocating distributions of hazard insurance proceeds of condemnation awards. (c) A change in the percentage interests of the unit owners in the common elements. ( d) The aban donment of the cooperative status of the project, except for abandonment provided under the provisions of the Common Interest Ownership Act in case of substantial loss to the units and common elements. (e) The use of hazard insurance proceeds for losses to any cooperative property, whether to a unit or to the common elements, for other than the repair, replacement or reconstruction of such improvements, except as provided in the Common Interest Ownership Act in the case of substantial loss to the units and common elements. (f) Any amendment to this Declaration affecting the validity or priority of the rights of any mortgagee . Section 5. RIGHTS OF CITY OF KENAI Prior written approval by the City of Kenai shall be required for any amendment to this Declaration. DECLARATION OF PENINSULA HANGAR ASSOCIATION 23 47 ARTICLE XI INSURANCE Section l . TYPES The Association shall obtain and continue in effect all insurances as required by the City of Kenai and adequate blanket public liability insurance for the common areas and fire insurance with extended coverage for the full replacement value of the project. Such insurance shall be maintained by the Association for the benefit of the Association, the unit owners, the Declarant, the City of Kenai, and the encumbrancers upon the property, or any part thereof, as their interests may appear, with underlying coverage on the individual units. The Association may purchase such other insurance as it may deem necessary including but not limited to, fidelity bonds and worker's compensation. Each owner shall provide insurance on his personal property. Nothing herein shall preclude any individual owner from carrying any public liability insurance as he may deem advisable to cover his individual liability for damages to person or property occurring inside his individual unit or elsewhere upon the premises. Section 2. PREMIUMS AND PROCEEDS Insurance premiums for any such blanket insurance coverage obtained by the Association and any other insurance deemed necessary by the Association may become a common expense, at the discretion of the Board of "Directors, to be included in the regular assessments levied by the Association for the repair or replacement of the property for which the insurance was carried or otherwise disposed of as provided in this Declaration. The Association is hereby granted the authority to negotiate loss settlements with the appropriate insurance carriers. Any two Directors of the Association may sign a loss claim form and release form in connection with the settlement of a loss claim, and such signature shall be binding on all the unit owners. ARTICLE XII DURATION AND AMENDMENT Section 1. DURATION This Declaration shall be perpetual and continue in full force until terminated by law or as otherwise provided herein, or until termination of the leasehold or sub leasehold referred to in Article III. Section 2 . AMENDMENT Except for reserved rights of the Declarant, notice of the subject matter of a proposed amendment to this Declaration in reasonably detailed form shall be included in the notice of any meeting of the Association at which a proposed amendment is to be considered. Notice of a proposed amendment shall be given to the City of Kenai not less than thirty (30) days prior to the 24 DECLARATION OF PENINSULA HANGAR ASSOCIATION 48 effective date of any amendment, and the City of Kenai shall have the right to consent to or oppose amendments as provided in Article X, Section 5. A resolution adopting a proposed amendment may be proposed by a unit owner at a meeting of members of the Association. The resolution shall be adopted by approval of unit owners owning in the aggregate not less than fifty percent (50%) of the voting power, subject to the consent of the City of Kenai as described above. A copy of each amendment shall be certified by at least two (2) officers of the Association, and the amendment shall be effective when recorded in the public records, Kenai Recording District, State of Alaska; provided, however, that any of the following amendments to be effective must be approved in writing by the record holders of all encumbrances on any units at the time of such amendment: (a) Any amendment which affects or purports to affect the validity or priority of encumbrances or the rights or protection granted to encumbrancers as provided herein. (b) Any amendment which would or could result in an encumbrance being cancelled by forfeiture. ( c) Any amendment relating to the insurance provisions as set out herein, to the application of insurance proceeds as set out herein, or to the disposition of any money received in any takin g under condemnation proceedings . Section 3. AMENDMENT BY DECLARANT Notwithstanding the foregoing, until the close of any escrow for the sale of a unit in the project, Declarant shall have the right to terminate or, with the consent of the City of Kenai, modify this Declaration by recordation of a supplement thereto setting forth such termination or modification. For purposes of this Declaration, the close of escrow shall be deemed to be the date upon which a Proprietary Lease for a unit is recorded. AR TI CLE XIII CONDEMNATION Section 1. CONSEQUENCES OF CONDEMNATION If at any time or times during the continuance of the cooperative ownership, pursuant to this Declaration, all or any part of the project shall be taken or condemned by any public authority or sold or otherwise disposed of in lieu of or in advance thereof, the provisions of this Article shall apply. Section 2. PROCEEDS All compensation, damages, or other proceeds therefrom the sum of which is hereinafter called the "condemnation award," shall be payable to the Association, in trust, for the purposes set forth herein. 25 DECLARATION OF PENINSULA HANGAR ASSOCIATION 49 Section 3. COMPLETE TAKING In the event that the entire project is taken or condemned, sold or otherwise disposed of in lieu of or in avoidance thereof, the cooperative ownership pursuant thereto shall terminate. The condemnation award shall be apportioned among the unit owners in proportion to the respective undivided interests in the common elements, provided that if a standard different from the value of the project as a whole is employed to measure the condemnation award in the negotiation, judicial decree or otherwise, then, in determining such shares, the same standard shall be employed to the extent it is relevant and applicable. On the basis of the principle set forth in the last preceding paragraph, the Association shall, as soon as practicable, determine the share of the condemnation award to which each owner is entitled and make payment accordingly. Section 4. PARTIAL TAKING In the event that less than the entire project is taken or condemned, or sold or otherwise disposed of in lieu of or in avoidance thereof, the cooperative ownership hereunder shall not terminate. "Each owner shall be entitled to a share of the condemnation award to be determined in the following manner: (a) as soon as practicable, the Association shall reasonably and in good faith, allocate the condemnation award between compensation damages and other proceeds and shall apportion the amounts so allocated to taking of or injury to the common elements among the owners in proportion to their respective undivided interests in the common elements; (b) the total amount allocated to severance damages shall be apportioned to those units which were not taken of condemned; ( c) the respective amounts allocated to the taking of or injury to a particular unit and/or improvements an owner had made within his own unit shall be apportioned to the particular unit involved; and ( d) the amount allocated to consequential damages and any other takings or injuries shall be apportioned as the Association determines to be equitable in the circumstances. If an allocation of the condemnation award is already established in negotiation, judicial decree or otherwise, then in allocating the condemnation award, the Association shall employ such allocation to the extent it is relevant and applicable. Distribution of apportioned proceeds shall be made by check payable jointly to the respective owners and their respective mortgagees . Section 5. REORGANIZATION In the event a partial taking results in the taking of a complete unit, the owner thereof automatically shall cease to be a member of the Association, Thereafter, the Association shall DECLARATION OF PENINSULA HANGAR ASSOCIATION 26 50 reallocate the ownership, voting rights and assessments ratio determined in accordance with this Declaration according to the same principles employed in this Declaration at its inception and shall submit such reallocation to the owners of remaining units for amendment of this Declaration as provided in this Declaration. Section 6. NOTICE TO MORTGAGEE The institutional holder of a first mortgage on any unit shall be given written notice of any condemnation proceeding described herein, and nothing herein shall entitle a unit owner, or any other party, to priority over the holder of a first mortgage with respect to the distribution of the proceeds of any award or settlement. ARTICELXIV MISCELLANEOUS Section 1. LEGAL PROCEEDINGS Failure to comply with any of the terms of the Declaration, Bylaws, and regulations adopted pursuant thereto shall be grounds for relief which may include without limiting same, an action to recover sums due for damages, injunctive relief, foreclosure of lien, or any combination thereof, which relief may be sought by the Association or, if appropriate, by an aggrieved unit owner. The provisions of this D e claration shall be liberally construed to effectuate its purpose of creating a uniform plan for the development and operation of the project, and any violation of this Declaration shall be deemed to be a nuisance. Failure to enforce any provision hereof shall not constitute a waiver of the right to enforce said provision or any other provision hereof. Any unit owner not, at the time, in default hereunder or Declarant shall be entitled to bring an action for damages against any defaulting unit owner and in addition, may enjoin any violation of this Declaration. Any judgment rendered in any action or proceeding pursuant hereto shall include a sum for attorney's fees, in such amount as the court may deem reasonable, in favor of the prevailing party. Each remedy provided for in this Declaration shall be cumulative and not exclusive or exhaustive. Section 2. SEVERABILITY The provisions hereof shall be deemed independent and severable, and the invalidity or partial invalidity or enforceability of any one provision or portion hereof shall not affect the validity or enforceability of any other provisions hereof. Section 3. CONSTRUCTION BY DECLARANT Nothing in this Declaration shall limit the right of Declarant to complete construction of improvements to the common areas and to units owned by Declarant or to construct such 27 DECLARATION OF PENINSULA HANGAR ASSOCIATION 51 additional improvements as Declarant deems advisable prior to completion and sale of the entire project. Such right shall include but shall not be limited to erecting, constructing and maintaining on the project such structures and displays as may be reasonably necessary for the conduct o f its business of completing the work. This Declaration shall not limit the right of Declarant, at any time prior to acquisition oftitle by a purchaser from Declarant, to establish on the project additional easements, reservations and rights-of-way to itself, to utility companies or to others as may, from time to time, be reasonably necessary to the proper development and disposal of the project. Prospective purchasers and Declarant shall have the right to use all common areas and limited common areas for access to the sales facilities of Declarant. The rights of Declarant hereunder may be assigned by Declarant to any successor to all or part of Declarant's interest in the project by an express assignment incorporated in a recorded d eed transferring such interest to such successor. Section 4. EASEMENTS Declarant expressly reserves for the benefit of owners in the project reciprocal easement of access, ingress and egress over all of the common areas. Such easements may be used by Declarant's successors, purchasers and all unit owners, their guests, tenants and invitees, residing or temporarily visiting the project, for pedestrian walkways, access, and such other purposes reasonably necessary to use and enjoyment of a unit in the project. Such easements shall be appurtenant to and shall pass with the title to every unit conveyed. The Declarant expressly reserves for the benefit of each unit owner an exclusive easement for use of those areas depicted on the cooperative plan as limited common areas as assigned to each unit owner for his numbered unit. All building walls shall be considered to adjoin and abut the wall of the contiguous hangar against the surface from the bottom of the foundation of the building. Such right of use shall be as not to interfere with the use and enjoyment of the owners of adjoining hangars, and, in the event that any such contiguous wall is damaged or injured from any cause other than the act or negligence of one of the owners, the same shall be repaired or rebuilt at their joint expense. In the event any portion of the common elements encroaches upon any unit or any unit encroaches upon the common elements as a result of the construction, reconstruction, repair, shifting, settlement of movement of any portion of the project, a valid easement for the encroachment and for the maintenance of the same shall exist so long as the encroachment exists. Section 5. VALUATION OF UNIT AND PROPERTY AND VOTING RIGHTS Each unit described herein is valued as set forth in Exhibit C, the total value of such units being the value of property comprising the project. The owner of each unit shall have an undivided interest in the common areas and facilities appertaining to eac h unit for all purposes, except as provided in this Declaration, as set forth in Exhibit C. Section 6. SERVICE OF PROCESS 28 DECLARATION OF PENINSULA HANGAR ASSOCIATION 52 The name and address of the person to receive service of process in the cases provided for in the Common Interest Ownership Act of the State of Alaska is: Law Office of Sonja Redmond Sonja Redmond PO Box 3529 Soldotna, Alaska 99669 ARTICLE XV SUBSEQUENT PHASES Section 1. AMENDMENTS TO ESTABLISH SUBSEQUENT PHASES Until such time as all construction in all phases is complete and all units sold, Declarant shall have the right to use any common areas and facilities for the purpose of showing and sales, and to display signs and advertising as deemed required by Declarant. Section 2. FORMULA TO BE USED IN ESTABLISHING AND AMENDING PERCENTAGES OF UNDIVIDED INTEREST AND VOTE IN THE EVENT SUBSEQUENT PHASES ARE ESTABLISHED In the event phases other than Phase I become part of this cooperative, the percentage of undivided interes t for all units shall be determined by the following formula: Each unit shall have one vote, and an equal percentage allocation of ownership and responsibility for common expenses, notwithstanding difference in the square feet of floor areas. State of Alaska Third Judicial District ) ) ) SS . LEGACY ELECTRIC, LLC Derek Leichliter Its: President THIS IS TO CERTIFY that on this __ day of , 2019, before me, the undersigned, a Notary Public in and for the State of Alaska duly commissioned and sworn as such, personally appeared Derek Leichliter known to me to be the President 29 DECLARATION OF PENINSULA HANGAR ASSOCIATION 53 of LEGACY ELECTRIC, LLC a corporation named above, and know to me to be the person named in and who executed the foregoing instrument for and on behalf of said corporation by authority duly vested in him, and he acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and year first hereinabove written. Notary Public in and for the State of Alaska My Commission Expires: _____ _ 30 DECLARATION OF PENINSULA HANGAR ASSOCIATION 54 CONSENT TO ESTABLISHMENT OF LEASEHOLD COMMON INTEREST COMMUNITY The City of Kenai hereby consents to Legacy Electric, LLC submitting its leasehold estate to the provisions of AS 34.08 and establishing a common interest community. The leasehold estate is that created by Lease between the City of Kenai and Legacy Electric, LLC, signed by the Kenai City Manager on January 12, 2015, pertaining to the following described real property located in the Kenai Recording District, Third Judicial District, State of Alaska: Lot 2, Block 1, General Aviation Apron, (Located on the Airport) The City of Kenai hereby consents to Legacy Electric, LLC recording the Declaration of Peninsula Hangar Association (A Common Interest Ownership Cooperative). The consent of the City of Kenai indicates only the non-objection and consent of the City of Kenai to the matters stated herein and is not intended nor should it be construed as an endorsement or guarantee of the efficacy of the Declaration of Peninsula Hangar Association or of the legal rights to be assigned, transferred or held pursuant to the Declaration of Peninsula Hangar Association or any other documents. CITY OF KENAI ATTEST: City Manager City Clerk RECOMMENDED FOR APPROVAL Airport Manger 31 DECLARATION OF PENINSULA HANGAR ASSOCIATION 55 State of Alaska Third Judicial District ) ) ) SS. THIS IS TO CERTIFY that on this __ day of , 2019, before me, the undersigned, a Notary Public in and for the State of Alaska duly commissioned and sworn as such, personally appeared _______________ _ known to me to be the City Manager of the City of Kenai known to me to be the person named in and who executed the foregoing instrument for and on behalf of said City of Kenai by authority duly vested in him, and he acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and year first hereinabove written. Notary Public in and for the State of Alaska My Commission Expires: _____ _ State of Alaska Third Judicial District ) ) ) SS . THIS IS TO CERTIFY that on this __ day of , 2019, before me, the undersigned, a Notary Public in and for the State of Alaska duly commissioned and sworn as such , personally appeared known to me to be the Airport Manager of the Kenai Municipal Airport and known to me to be the person named in and who executed the foregoing instrument for and on behalf of Kenai Municipal Airport by authority duly vested in him, and he acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and year first hereinabove written. Notary Public in and for the State of Alaska My Commission Expires : _____ _ 32 DECLARAT ION OF PENINSULA HANGAR ASSOCIA TION 56 Exhibit A : Exhibit B: Exhibit C : Exhibit D: Exhibit E: INDEX TO EXHIBITS TO DECLARATION Horizontal Plan Description of Units Value of Units Lease Agreement with City of Kenai Sublease Index of Exhibits to Declaration 57 EXHIBIT A \ \ \ / '· °-' fi > t:1 +t :'i rn () )> r m .. 0 i f , . ' ; I ,'.•" / . ., / 'I j ./ " / : I ·. J· ' .... ~~ t ~ '• '~.~' " i ~ '~ /.' ii ,, I I ~! designstudios 'I /. ,'r '.1 ..... , ,. 58 .. ~ I )~ ~ E-c "'"""" ~ "'"""" ~ ;>< ~ A "' •B c D ' <1 • 2 l 3 ~· 5 · 'J ,. 6 ' 4;. 7 8 I ·~· ~ .... 10 f1t™<El -" 1 ; i 11 · _<*"'3 I I 12 ·13 I ,( •,. r / / 1 I I • 1 1 , ~ / 'I- 4 ... 1 • , ~-~~r.c··-·· '.::, I r-· I I --=·=-r :.:.:01>.f 1-- ' --=-·--=.-.... I I I I I """ ~ j ~ i2!i:ISr. l I ""'I -~ I l IOlll !.r. .J ~ U'fT S .. I ,,""~.F i I "' ,. ,. / / / / ./ l / .! / tT CD TYP~A~OR PLAN .. ~ ..... ...... 14 15 11 ' :::.± ·:...=_" ---·· ri I .. -·~. -.;:.: -.--: ' c 8''\i I llOQ,J I • , .. (\, I t: ....... . i { j r-. i 11 ' ~ I :1 J ! l r-------·---·-· 1 I KENAI AIRPORT TAXI WAY I I .fe ··-----;·-I !·i.. B:~lY I ~-~L_J 'PRO?~~~ O o --, .. ---, ----I I ··-....-t.' ._,.-.:..:i-----.. ---• , •.. ,--~---· '~'lt"' i .. lt!1 . ·-~· ··.!';-'<-'Ii. I '·<o ·, n : -.;_o,.,, j I J .'\\-·-· I ~.\ 0 ~~~~--·-··-··---s(~"'"" 0 ENLARGED ~LOOR PLAN -TYP ICAL """"" ........... 14 15 I ; !-t \HT > uso sJ:- d " ., . / . / "" / t ~ t .I I "' ' '\ ' I I'~ • •f If I•· I• .. ,,:_"' .... I- (.) w ., 0 0:: 0. 0::: < C) z < :c I I- <( z w ::t ReviilioniJ.: (/) I-z w :e :::> u 0 0 z 0 ~ u :::> a:: I- (/) z 0 u "~ I· u ~! ~ ~ a ~ ~i ~~ >a 2 • u !: ~ fl) < ...J < <C z w ~ .... """'(,;?~ .. f'J"" "!_.,~ y <:> ........ ~ ~ l~....i;:<-A--. 1~-·-··IJg i , ··~ q' °'":~ -----'· ~·· ·~-SltMt TilM: I S i'!Mt A1.1 59 :A m -< "O ~ z .o I· I / / i LJ··· : I i I I , ·-----~-t----:-------------------~--~~-----------T--;--J l I t I •. l : f.. . { 1 ' -{ : • 1 AUTOMATEOACCESS GATE I ! : I : I } + ; --; ---;---~j I I I I I I ' I ' ,._ I i . "-~ " I -. I ...o ~ (. i. VJ ~-iv -I ! i~;;l i~H i I -··-·· mi~i ·····~Hi • I i , Q -.~~ ~ l l .. · . ~~~ ~ ~ i ~, ~ ..... <i : • ' ~J.'! ·~ ~:':: ~ .. ·.·····--.~~·',,,:,:,:,, ... ; ~· -l ~ ::1 J :1 :-~ : -:I .} ! ~ ·-···--·f: I I / i I t-'1! -+------~-,..,----:-4:;..:_~ .i ___ ~ I • 1 I f • ·--------1 -+-----·-.. ~ ---___ J .1 -·-1 I ' I i . j KENAI T-HANGAR PROJECT f " CONSTRUCTION DOCUMENTS KENAI, ALASKA (~! designstudios l..OTl\ACI HGIAVRO. &UiTFno l(EM,1.1 ,Al,k.:U,tM P 901 l&J.>fft f 901.HUOU E· AOM~i;Jl(A.Of$1GN$T\OOI CC 60 Exhibit C UNIT VALUE AND UNDIVIDED INTERESTS IN COMMON AREA AND FACILITIES Each unit varies in size of area from 1080 square feet to 14 70 square feet, and will be allocated an equal eight and one third (8.33%) interest in ownership and responsibility for common expenses . Unit Square feet Undivided Interest 1 1250 8.33 2 1080 8.33 3 1470 8.33 4 1250 8.33 5 1080 8.33 6 1470 8.33 7 1250 8.33 8 1080 8.33 9 1470 8.33 10 1250 8.33 11 1080 8.33 12 1470 8.33 Total 7600 100% Unit Value and undivided interests 61 EXHIBITE SUBLEASE LEGACY ELECTRIC, LLC, an Alaska limited liability company, hereinafter Sublessor , of 46113 Sather Court, Soldotna, Alaska 99669, enters into the following sublease agreement with PENINSULA HANGAR ASSOCIATION, an Alaska non-profit corporation, of 46113 Sather Court, Soldotna, Alaska 99669. 1. Sublease Property. This is a sublease of City of Kenai Municipal Airport lease for Lot 2, Block 1, General Aviation Apron, executed by the Kenai City Manager on January 12, 2015, in which the City of Kenai is the Lessor and Legacy Electric, LLC is the Lessee, and which covers the following described real property: Lot 2, Block 1, General Aviation Apron, at the Kenai Municipal Airport, Kenai Recording District, Third Judicial District, State of Alaska. 2 . Sublease Term. The Sublease shall commence on the date of execution of this sublease agreement and shall terminate upon expiration of the City of Kenai Leasehold, on August 30, 2049. A renewal may be made thereafter as may be agreed by both the City of Kenai and Lessee . 3. Compliance with City of Kenai Lease. Except as expressly modified in this sublease, sub lessee agrees to perform and abide by all terms of the City of Kenai Lease referred to above , the terms of which are incorporated herein by reference . Sublessee is responsible to Sublessor in all ways as the Sublessor is to the City of Kenai under the City of Kenai lease, and the sub lessee shall comply with all provisions of the lessee under the City of Kenai lease, including provisions requiring insurance. Any default by sublessee in provisions of the City of Kenai lease shall constitute a default under this sublease. 4. Rent. The rent shall be 100% of the rent charged by the City of Kenai under its lease, including any rent adjustments or increases or other charges by the City of Kenai . 5. Indemnification and Liability. Sublessee shall indemnify, defend, and hold sublessor harmless, to the same extent as is provided for by the lessee in the Ci t y of Kenai lease. Subl eas e 62 6. Renewal. In The event sub lessor renews its lease with the City of Kenai , it shall offer to extend or renew the sublease to sublessee on terms intended to be similar to this sublease but which may take into account any other new terms in any lease extension or renewal from the City of Kenai. 7. Assignment and Assumption Sublessee may assume sub lessor's lease from the City of Kenai, upon obtaining approval from the City of Kenai. 8. Common Interest Community. The above real estate is subject to a Declaration 9 . creating a common interest community, the Peninsula Hangar Association, created pursuant to AS 34.08.090. This sublease is a conveyance of the real estate to the sublessee as the Association formed pursuant to the Common Interest Community and is made pursuant to AS 34.08.090(a). 10. Default. Any default in payment more than thirty (30) days, or any other default of this sublease, shall allow sub lessor to terminate this sublease pursuant to Alaska law. 11. Assignment or Sublease. Sub lessee may assign, sell, or convey any interest in the subject property, subject to the provisions of the Declaration referred to in the common interest community referred to above, and the consent of the City of Kenai. 12. Consent by City of Kenai . This sublease is conditioned on , and subject to , consent by the City of Kenai as set forth above. SUB LESSOR: Legacy Electric, LLC Dated: -------By: ______________ _ Its: --------------~ Subl e ase 63 Dated: ------- State of Alaska Third Judicial District ) ) ) SUBLESSEE: Peninsula Hangar Association By: ______________ ~ Its: --------------~ SS. THIS IS TO CERTIFY that on this __ day of , 2019 , before me, the undersigned, a Notary Public in and for the State of Alaska duly commissioned and sworn as such, personally appeared Derek Leichliter known to me to be the President of LEGACY ELECTRIC, LLC a corporation named above, and know to me to be the person named in and who executed the foregoing instrument for and on behalf of said corporation by authority duly vested in him, and he acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and year first hereinabove written. State of Alaska Third Judicial District ) ) ) Notary Public in and for the State of Alaska My Commission Expires: _____ _ SS. THIS IS TO CERTIFY that on this __ day of , 2019, before me, the undersigned, a Notary Public in and for the State of Alaska duly commissioned and sworn as such, personally appeared Derek Leichliter known to me to be the President of Peninsula Hangar Association a corporation named above, and know to me to be the person named in and who executed the foregoing instrument for and on behalf of said corporation by authority duly vested in him, and he acknowledged to me that he signed the same freely and voluntarily for the uses and purposes therein set forth. Sublease 64 IN WITNESS WHEREOF, I have hereunto set my hand and seal the day and year first hereinabove written. Notary Public in and for the State of Alaska My Commission Expires: _____ _ Sublease 65 E XHI B IT D A L A s K A 2015-002299-0 Rec ord in g Di strict 302 Kenai 03/25/2015 09:26 AM Page 1 of 3 3 II lllllll ll lllllll llllllllllll ll /1111 Ill lllllllll ll lllll llll lllllllllllll ll llll ll 11111 11 f I/ KENAI MUNICIPAL AIRPORT LEASE OF AIRPORT RESERVE LANDS /)_ /(.k. ..rj -,-5 THIS LEASE AGREEMENT entered into this /)/ day of Jtttt~ , 201/, by and between the CITY OF KENAI, ("City") 210 Fidalgo Avenue, Kenai, Alask~ 611-7794, and LEGACY ELECTRlC, LLC. ("Lessee") whose address is 46113 Sather Court, Soldotna, AK 99669 . DEFINITIONS For the purposes of this Lease the following terms are defined as follows: l. Airport-the Kenai Municipal Airport, including all the runways, taxiways, aprons, water lanes, water taxiways , and all City-owned real estate located within the boundaries of the Airport Reserve as defined in KMC 21.05 .010-020. 2. Airport Manager -the official to whom the City Manager of the.Cify has delegated the authority and responsibility of man~ging and direct_ing the activities of the Airport. "Airport Manager" includes that person's authorized representative. 3. City-the City of Kenai, Alaska, a home rule municipal corporation of Alaska. 4. City Manager -the official to whom the Kenai City Council has delegated the responsibility of managing and directing all activities of the City. 5 . Contamination -the unpermitted presence of any released Hazardous Substance. 6. Environmental Law -any applicable federal~ state, or local statute, law, r.egulation, ordinance , code, permit, order, decision, judgment of any gov ernmental ent ity relating t o environmental matters, including littering and dumping. 7 . FAA -the abbreviation for the Federal Aviation Administration. 8 . Hazardous Substance -any substance that is defined under an Environmental Law as hazardou s waste, H az ardous Sub stance , hazardous material, tox ic, pollutant, contaminant, petroleum, petroleum product, or oil. LEASE OF AIRPORT LANDS Page 1 of33 ·~ City: Lessee: 66 9. KMC-the abbreviation for the Kenai Municipal Code. 1 O. permanent Improvement -a fixed addition or change to land that is not temporary or portable, including a building, building addition, gravel fill, paving, retaining wall, storage tank, and well. ARTICLE I PREMISES LEASED A. PREMISES: In consideration of Lessee's payment of the rents and performance of all the covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the City, the following described property ("Premises") in the Kenai Recording District, Third Judicial District, State of Alaska and located on the Airport; to wit: Lot 2, Block 1, General Aviation Apron B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific warranties, expressed or implied, concerning the condition of the Premises including, survey, soils, wetlands, access, and suitability or profitability for any use including those authorized by this Lease, its environmental condition, or the presence or absence of Hazardous Substances in, on, and under the surface. The Lessee takes the Premises on an "as is" basis and without warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title to the Premises. A. AUTHORIZED USES ARTICLE II RIGHTS AND USES 1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the following purposes only: T-Hangar Heated Complex 2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing, the Lessee will operate its business on the Premises on a continuous basis, uninterrupted by any period of closure over 15 consecutive days or 30 aggregate days within any 12-month period of the term of this lease. The Lessee will give the City written notice before closing the Lessee's business on the Premises for more than 10 consecutive days. The notice must state the reason for the closure LEASE OF AIRPORT LANDS Page 2 of33 67 not apply to any period during which the Lessee is unable to operate its business as a result of an act or directive of the City, or as a result of a closure of the Airport or loss of the Lessee 's buildings on the Premises due to fire or natural disaster or order of public authority. B . RJGHTS RESERVED TO THE CITY. 1. RJGHT TO GRANT TO OTHERS : The City'reserves the right to grant to others any rights and privileges not specifically granted to the Lessee on an exclusive basis. The rights and privileges granted to the Lessee in this Lease are the only rights and privileges granted to the Lessee by this Lease. 2. EASEMENTS: The City reserves the right to make grants to third parties or reserve to the City easements or rights of way through, on, or above the Premises. The City will not grant or reserve any easement or right of way that unreasonably interferes with the Lessee's authorized uses of the Premises. 3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress to and egress from the Premises and the right to enter any part of the Premises, including buildings, for the purpose of inspection or environmental testing at any time. Except in the case of an emergency, all inspections and environmental testing will be coordinated with the Lessee to minimize interference with the Lessee's authorized uses of the Premises. 4. RJGHT OF FLIGHT: There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises. This public right of flight will include the right to cause in the airspace any noise inherent in the operation of any aircraft used for navigation or flight through the airspace or landing at, taking off from, or operation on the Airport. C. PROHIBITED USES Unless specifically authorized by this Lease or an amendment to this Lease, the following are prohibited : 1. Any use of the Premises other than those authorized in this Lease. 2. Any use of the Premises that is in violation of a City Ordinance or an Airport regulation. LEASE OF AIRPORT LANDS Page 3 of33 Page 3 of 33 2015 -002299-0 68 3 . The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non- operational support equipment, unused or damaged equipment or material, or solid waste or debris unless allowed pursuant to a conditional use permit under KMC 14.20. 4. The disposal on the Premises or the Airport of waste materials generated by the Lessee, including any Hazardous Substance, slash, overburden, and construction waste. 5. The stripping, wasting, or removing any natural material from the Premises without the prior written approval of the City. 6. Erectmg structures or allowing growth of natural objects that would constitute an obstruction to air navigation, or allowing any activity on the Premises that would interfere with or be a hazard to the flight of aircraft, or interfere with air navigation or communication facilities, serving the Airport. 7. Any use or activity that is prohibited by applicable law or regulation. ARTICLE ill TERM & HOLDOVER A. TERM: The initial term of this Lease is for thirty-five (35) years, beginning the 1st day of September, 2014 and ending on the 30th day of August, 2049. As long as Lessee is in compliance with all terms and conditions of this Lease (including any amendments), City ordinances, and is current on all City tax liabilities, Lessee may at Lessee's sole option extend the lease for an additional twenty (20) year term. B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after the expiration, cancellation or termination of this Lease, the holding over will not operate as an extension of the term of this Lease, but only creates a month-to-month tenancy, regardless of any rent payments accepted by the City. The Lessee's obligationS for performance under this Lease will continue during the month-to-month tenancy. The City or Lessee may terminate the Lessee's holdover with ten (10) days' advance written notice. ARTICLE IV RENTS AND FEES A. RENT: The reasonable market value of work approved by Lessor and performed by Lessee with regard to clearing and grubbing, unclassified excavation, placement of classified fill LEASE OF AIRPORT LANDS Page 4 of33 Page 4 of 33 20 15-0 0??0o n 69 and utility service extensions on the Premises, shall be applied as a credit against rent owed for a maximum period of ten (10) years from the date clearing and grubbing, unclassified excavation, placement of classified fill and utility service extensions are completed. The rent for the Premises is $11,400 .00 per year, as established by the City pursuant KMC 21.10.100 and as subject to adjustment under Article V of this Lease, plus applicable sales tax. The rent shall be payable annually in advance of the first day of each year of the term of this Lease. All payments required by this Lease must be made in U.S. dollars. If the annual rent exceeds $2,400, the Lessee may, upon written notice to the City, choose to pay the rent in equal monthly installments, payable in advance on or before the anniversary date of the term of this Lease and · thereafter at monthly intervals. No conversion of the payment schedule from annual to monthly shall result in the City receiving less rent than it would have received had the conversion not taken place. B. RENT PRORATED: Rental for any period less than one (1) year shall be prorated on the basis of the rent payable under this Lease in the last full year previous to the prorating. C . ADDITIONAL RENT : In addition to the rent specified in (A) of this Article, Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as follows: 1. Taxes p ertaining to the leasehold interest of the Lessee. 2. Sales tax now enforced or levied in the future, computed upon rent payable in monthly installments whether the Lessee pays rent under this Lease on a monthl y or annual basis. 3. All taxes and assessments levied in the future by the City, as if Lessee was the legal owner of record of the Premises. 4. Reimbursement for City constructed improvements under Article XV . D . PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders payable to the City of Kenai and deliver payments to City of Kenai, Finance Department, 2 10 Fidalgo A venue, Kenai, Alaska 99611-7794 or any other address the City may designate in writing to the Lessee. E . INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and fees required under this Lease will accrue interest at the rate of eight percent (8.0%) per annum. Interest on di sputed amounts will not be charged to the Lessee if the dispute is resolved in th e Lessee's favor. F. LATE PAYMENT PENALTY: In addition to any interest payable under Provi sion (E) LE ASE OF AIRPORT LANDS · P age 5 of33 11111 ~111 1~11~~11111 1~1 Pa ge 5 of 33 ?n1i;_n f"\')')nn n 70 of this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease, the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%) of the amount due and unpaid. G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due, regardless of whether or not the Lessee receives a billing statement from the City. H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due and unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the Lessee's property, real or personal. r. PA Y1\1.ENT OF CITY'S COSTS: The Lessee will pay all reasonable actual expenses, costs, and attorney fees City may incur, with or without formal action, to enforce, defend, or protect this Lease or City's rights under this Lease, including any expense incurred with respect to environmental compliance, banlauptcy or any proceeding that involves the Lessee, the Lease, the Premises, or improvements or personal property on the Premises. The Lessee will make payment within 30 days of the date of each notice from City of any amounts payable under this provision. J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee for any special services or facilities the City agrees to perform, which the City is not otherwise obligated b y this Lease to provide and which the Lessee requests from the City in writing. ARTICLEV ADJUSTMENT OF RENT AND FEES A. RENT OR FEE ADJUSTMENT: At intervals of approximately five (5) years, the City shall, in its sole discretion, adjust the rent or a fee payable by the Lessee under Article IV or other provision of this lease. The first rent adjustment shall be made in2015. The amount to which the City increases or decreases any rent or fee shall be established in accordance with K.MC 21.1O.100 and 21.10 .160. Any rent change by the City shall be based on the fair market value of: 1. The Premises in its condition on the term beginning date stated in Article III or in the case of a lease renewal or extension, the beginning date for the original lease; plus 2 . Any improvements made by the City subsequent to that date, the cost of which i s not reimbursed by the Lessee. LEASE OF AIRPORT LANDS Page 6 of33 r m1111 Page 6 of 33 71 No rent or fee change shall be effective until 30 days after the date of the City's written notice to the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent for the Premises, the Lessee may appeal the rent change to the City under KMC 21. l 0.160. B. CITY-CONSTRUCTED IMPROVEMENTS: Improvements constructed by the City on, or in connection with, the Premises shall not be considered a part of the Premises for the purpose of establishing the rent under (a) of this Article, if the Lessee, as a condition of this lease, reimburses the City for the City's construction costs pursuant to KMC 21.10 .110. ARTICLE VI ASSIGNMENT & SUBLETTING A. INVALID WITHOUT CITY'S CONSENT: The Lessee may not assign, sublet, or grant a security interest in, by grant or implication, the whole or any part of this Lease, the Premises, or any improvement on the Premises without the written consent of the City. Any proposed assignment, sublease, or security interest must be written and must be submitted to the City bearing the original, notarized signature of all parties. The Lessee may submit unsigned draft documents for the City's conceptual review. However, the City's conceptual approval of a draft docwnent may not be construed as the City's consent to any assignment, sublease, or security interest. All provisions in this Lease extend to and bind the assignees and sublessees of the Lessee. B. NO W AIYER OF CONSENT: The City's consent to one assignment, sublease, or security interest will not waive the requirement for the Lessee to obtain the City's consent to any other assignment, sublease, or security interest. C. ASSIGNEE I LESSEE OBLIGATIONS: An assignment must include a provision stating that the assignee accepts responsibility for all of the assignor's (Lessee 's) obligations under this Lease, including environmental liability and responsibility. However, unless the City specifically releases the Lessee in writing, the City may hold the Lessee resp onsible for performing any obligation under this lease which an assignee fails to perform. D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sublessee may not occupy the Premises before the City consents to the assignment or sublease in writing. E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an assignment or a sublease, the terms of this Lease control. F . LESSEE NOT RELIEVED OF OBLIGATIONS: The City's consent to any sublease does not relieve or otherwise alter the Lessee's obligations under this Lease. LEASE OF AIRPORT LANDS Page 7 of33 72 G. SECURITY ASSIGNMENTS AND FINANCING: I. Subject to the requirements of (A) of this Article VI, the Lessee may assign a security interest in this Lease. The security interest may be in the form of a mortgage, deed of trust, assignment or other appropriate instrument, provided: a. the security interest pertains only to the Lessee's leasehold interest; b. the security interest does not pertain to or create any interest in City's title to the Premises; and c . the documents providing for the security interest are acceptable to the City. 2. If the assignment of a security interest to which the City has consented shall be held by an established lending or financial institution, including a bank, an established insurance company and qualified pension or profit sharing trust, and the lending institution acquires the Lessee's interest in this Lease as a result of a foreclosure action or other remedy of the secured party, or through any transfer in lieu of foreclosure, or through settlement of or arising out of any pending or contemplated foreclosure action, the lending institution may transfer its interest in this Lease to a nominee or a wholly owned subsidiar)r corporation with the prior written consent of the City, provided, the transferee assumes all of the covenants and conditions required to be performed by the Lessee (including payment of any monies owed by Lessee to the City under the lease). In the event of such a ~ansfer, the lending institution shall be relieved of any further liability under this Lessee. 3. A holder of a security interest in this Lease consented to by the City shall have, and be subrogated to, any and all rights of the Lessee with respect to the curing of any default of this Lease by Lessee. 4 . If, before any default has occurred in the Lease, the holder of a security interest in this Lease consented to by the City gives the City a written notice of the holder's post office address, the City shall thereafter a. by regular U.S. mail, send to the holder a copy of each notice of default at the same time as the City gives notice of default to the Lessee; and LEASE OF AIR.PORT LANDS Page 8 of33 73 b not accept any surrender or enter into any modification of this Lease without the prior written consent of the holder, which the holder shall not unreasonably delay or withhold .. 5. The City will enter into a new lease of the Premises with the holder of a security interest consented to by the City, if the City terminates this Lease prior to its normal expiration due to a default by the Lessee. The new lease shall be for the remainder of the term of this Lease and shall be effective as of the termination of this Lease. The City's grant of the new lease shall be subject to the following conditions: a. the new lease shall be effective on the date this Lease is terminated; b. the new lease shall be for the same rent, additional rent, and covenants as this Lease; c. By no later than the twentieth (20th) day following the termination of this Lease, the security holder must submit a written request to the City for the new lease, together with payment of all rent, additional rent and other sums then due to the City under this Lease. d. The security holder shall pay to the City, at the time of the execution and delivery of such new lease any and all sums due thereunder in addition to those which would at the time of the execution and delivery thereof be due under this Lease but for such termination, and in addition thereto, any reasonable expenses, including legal and attorneys' fees, to which the City shall have been subjected by reason of such default. e. The security holder shall, on or before the execution of the new lease, perform all the other obligations of the Lessee under this Lease to the extent the Lessee failed to perform them prior to the termination of this Lease. 6. A holder of a security interest consented to by the City that takes possession of this Lease or enters into a new lease with the City shall not be released from the obligations and liabilities ofthis Lease or the new lease unless the holder assigns · its leasehold estate to an assignee who is financially capable and otherwise qualified to undertake to perform and observe the conditions of this Lease or the new lease and .the City consents to the assignment. The City's consent will not be unreasonably withheld. If the security holder asserts that the City is unreasonably LEASE OF AIRPORT LANDS Page 9 of33 74 withholding its consent to a proposed assignment, the dispute shall be resolved by arbitration. ARTICLE VII MAINTENANCE, SNOW REMOVAL & UTILITIES A. MAINTENANCE 1. At no cost to the City, the Lessee will keep the Premises and all improvements on the Premises clean, neat and presentable, as reasonably determined by the City. 2. At no cost to the City, the Lessee will provide for all maintenance and services at the Premises as may be necessary to facilitate the Lessee's compliance with this Lease and the Lessee's use of the Premises. 3 . The Lessee shall comply with all regulations or ordinances of the City that are · promulgated for the promotion of sanitation. At no cost to the City, the Lessee shall keep the Premises in a clean and sanitary condition, and control activities on the Premises to prevent the pollution of water. 4. The Lessee agrees to comply with all decisions and directions of the City's Airport Manager regarding maintenance and operation of the Airport, and the use of the Airport by the Lessee. B. SNOW REMOVAL I . At no cost to the City, the Lessee is responsible for snow removal on the Premises. The Lessee shall dispose of snow in an off-Premises location approved in writing by the City or provide suitable snow storage within the boundaries of the Premises in accordance with all applicable federal and state laws. At the request of the Airport Manager, the Lessee shall submit a snow removal plan for the Premises to the Manager for review. Upon approval of the Lessee's plan by the Airport Manager, the Lessee shall conduct all snow removal operations on the Premises in accordance with the approved plan. 2. Lessee shall not deposit snow on an apron, taxiway, safety area, or other aircraft- maneuvering surface provided for common use by others without the prior written approval of the Airport Manager. LEASE OF AIRPORT LANDS Page 10 of33 City: h Lessee :~ Page 10 of 33 I ~ 75 3. Lessee agrees to not allow an accumulation of snow on the Premises that would cause interference with adjoining leaseholders or other users of the Airport. C. UTILITIES. Unless specifically provided otherwise in _this Lease, the Lessee shall, at no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's use of the Premises. ARTICLE VIII OPERATIONS A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its employees, guests, contractors, sublessees, and vendors that perform any activity or function authorized under this Lease shall do so in a manner that ensures the safety of people, the protection of public health and the environment, and the safety and integrity of the Airport and the Premises. B . LESSEE'S CONTROL AND RESPONSIBILITY 1. The Lessee will assume full control and sole responsibility as between Lessee and City for the activities of the Lessee, the Lessee's personnel and employees, and anyone else acting by, on behalf of, or under the authority of the Lessee on the Airport, including the Premises. 2 . The Lessee will immediately notify the City of any condition, problem, malfunction or other occurrence that threatens the safety of people or the Airport, harm to public health or the environment, or the safety or integrity of the Premises. c. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or device that interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife on an airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep the Premises clean of fish slime, fish waste, or any other material that might attract birds or other wildlife. The Lessee accepts full responsibility to maintain the Premises, control operations, and take all reasonable measures to prevent a concentration of birds or other wildlife on the Premise s. E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking space on the Premises for Lessee's business or activities, or confine parking to such other places LEASE OF AIRPORT LANDS Page 11 of33 76 on the Airport as may be approved or designated in writing by the Airport Manager. ARTICLE IX ENVIRONMENTAL PROVISIONS A. HAZARDOUS SUBSTANCE 1. The Lessee will conduct it business and/or operation on the Premises in compliance with all environmental laws and permits. If hazardous substances are handled on the Premises, the Lessee agrees to have properly trained personnel and adequate procedures for safely storing, dispensing, and otherwise handling Hazardous Substances in accordance with all applicable federal, state and local laws. 2. Lessee will promptly give the City notice of proceeding to abate or settle matters relating to the presence of a Hazardous Substance on the Premises or from Lessee's operations on the Airport. The Lessee will allow the City to participate in any such proceeding$. · B. ENVIRONMENT AL INDEMNIFICATION If Contamination of the Premises or other property by a Hazardous Substance occurs from the Lessee's operations on the Premises the Lessee will indemnify, defend, and hold the City harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses, including, but not limited to, sums paid in settlement of claims, attorney's fees, consultant fees, and expert fees, which arise during or after the term of this Lease as a result of such Contamination. This indemnification of the City by Lessee includes, but is not limited to, costs incurred in connection with any investigation of site conditions or any cleanup, remediation, removal, or restorative work required by any federal, state, or local governmental agency because of a Hazardous Substance b~ing present in the soil or groundwater or under the Premises or other properties affected by the Contamination. C. REMEDIATION 1. In the event of a Hazardous Substance spill on the Premises, the Lessee will immediately notify the City and the Alaska Department of Environmental Conversation and act, promptly, at its sole expense, to contain the spill, repair, any damage, absorb and clean up the spill area, and restore the Premises to a condition satisfactory to the City and otherwise comply with the applicable portions of any environmental law. LEASE OF AIRPORT LANDS Page 12 of 33 77 2. In addition to any notices required by this Lease, the Lessee will immediately notify and copy the City in writing of any of the following: A. Any permit, enforcement, clean up, lien, removal or other governmental or regulatory action instituted, completed, or threatened pursuant to an Environmental Law. B. Any claim made or threatened by any person against the Lessee or arising from the Lessee's operations authorized by this Lease, relating to damage, contribution, compensation, loss or injury resulting, from, or claimed to result from any Hazardous Substances in, on, or under the Airport; or C. Any report made by, or on behalf of, the Lessee to any environmental agency arising out of or in connection with any Hazardous Substances in, on, or removed from the Premises, including any complaints, notices, warnings, or asserted violations. 3. Remediation and restoration of the contaminated area must meet all applicable state and federal regulations and must meet the requirements of all governing regulatory authorities. D. ENVIRONMENTALAUDIT The Lessee will provide the City with all investigative data, test results, reports , and any other information gathered or analyzed as part of or in relation to any Environmental Assessment, characterization or audit on the Premises or the Airport that Lessee performs or causes to be performed after the starting date of this Lease. The Lessee will submit the data, result, report or information to the City within 60 days following the date on which it becomes available to the Lessee. E. RELEASE OF LESSEE The City releases the Lessee from liability to the City for Contamination and the presence of Hazardous Substances that existed prior to the commencement date of this lease unless caused or materially contributed to by the Lessee. F. SURVIVAL OF OBLIGATIONS The obligations and duties of the City and Lessee under Article IX of this lease shall survive the cancellation, termination or expiration of this lease . LEASE OF AIRPORT LANDS Page 13 of 33 City: Jl Lessee:~ Page 13 of 33 Ii~ 78 ARTICLEX INDEMNIFICATION & INSURANCE A. INDEMNIFICATION 1. The Lessee will indemnify, save harmless, and defend the City, its officers, agents, and employees from and against any and all liabilities, losses, suits, administrative actions, claims, awards, judgments, fines, demands, damages, injunctive relief or penalties of any nature or kind to the full extent of the loss or obligation for property damage, personal injury, death, violation of any regulation or grant agreement, or any other injury or harm resulting from or arising out of any acts or commission of or omission by the Lessee, his agents, employees, customers, invitees or arising out of the Lessee's occupation or use of the premises demised or privileges granted, and to pay all costs connected therewith. This indemnification of the City by the Lessee shall include sums paid in settlement of claims, attorney fees, consultant fees, expert fees, or other costs and expenses, directly or indirectly arising from, connected to or on account of this Lease as it relates to the Lessee, the Lessee's activities at or relating to the Airport, or any act or omission by the Lessee, or by any of its officers, employees, agents, contractors or sublessees. These indemnity obligations are in addition to, and not limited by, the Lessee's obligation to provide insurance, and shall survive the expiration or earlier termination of this Lease. 2. The Lessee shall give the City prompt notice of any suit, claim, action or other matter affecting the City to which Paragraph 1, above, may apply, together with a copy of any letter by an attorney on behalf of a complainant, any complaint filed in court, and any notice or complaint by any regulatory agency. The City shall have the right, at its option, to participate cooperatively in the defense of, and settlement negotiations regarding, any such matter, without relieving the Lessee of any of its obligations under this provision. 3. As to any amount paid to others for personal injury or property damage with respect to which an act or omission of the City is a legal cause, notwithstanding Paragraph 1 of this section, the Lessee and the City shall reimburse each other according to the principles of comparative fault. If liability to a third party is subject to apportionment according to comparative fault under this provision, the Lessee and the City shall seek in good faith to achieve non-judicial agreement as to apportionment of fault as between themselves. This apportionment of liability between the City and the Lessee shall not be construed to affect the rights of any person who is not a party to this Lease. LEASE OF AIRPORT LANDS Page 14 of33 201 S-nn??OOJ1 79 B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during the term of this Lease, insurance of the type and limits required by this provision. Where specific limits are set, they will be the minimum acceptable limits. If the Lessee's policy contains .higher limits, the City will be entitled to coverage to the extent of the higher limits. At the time insurance is obtained by the Lessee, all insurance shall be by a company/corporation rated "A-" or better by A .M . Best. The following policies of insurance are required with the following minimum amounts: I. Commercial General Liability, including Premises, all operations, property · damage, products and completed operations, and personal injury and death, broad-form contractual, with a per-occurrence limit of not less than $1,000,000 combined single limit. If this lease authorizes the Lessee to engage in the sale or the commercial dispensing or storage of aviation fuel, the policy must not exclude of the Lessee's fuel handling activities. This policy must name the City as an additional insured. · 2. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non-owned motor vehicles used by the Lessee. 3. Workers Compensation Insurance. The Lessee will provide and maint ain, for all employees, coverage as required under AS 23.30.045, and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. 4 . The Lessee will provide the City with proof of insurance coverage in the form of an insurance policy or a certificate of insurance, together with proof that the premiums have been paid, showing the types and monetary limits of coverage secured. All insurance required by this provision must provide that the City be notified at least 30 days prior to any termination, cancellation, or material change in the insurance coverage. 5. If the Lessee's insurance coverage lapses or is cancelled, Lessee will immediately, upon written notice by the City, halt all operations on the Airport, including the Premises . The Lessee will not resume operations until the City receives evidence that the Lessee has obtained current insurance coverage meeting the requirements of this Lease. 6 . The City may , at intervals of not less than fi ve years fro m the begirm ing date of the t e rm of this Lease and upon written notice t o Lessee , re vise the insurance requirements required under this Lease. City's determination to LE ASE OF AIRPORT LANDS Page 15 of33 Page 15 of 33 80 revise the insurance requirements will be based on the risks relative to the Lessee's operations, any insurance guidelines adopted by the City, and any change in applicable law. 7. If the Lessee subleases all or any portion of the Premises under the provisions of this Lease, the Lessee will require the sub lessee to provide to the insurance coverage required of the Lessee under this Article X. ARTICLE XI LAWS&TAXES A. COMPLIANCE WITH LAW: Lessee shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the Airport, the Premises or the sidewalks, alleys, streets, and ways adjacent to the Premises, or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances, and regulations which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the same. Lessee agrees to hold City financially harmless: I. From the consequences of any violation of such laws, ordinances, and/or regulations; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation, business, or trade to be conducted on the Premises contrary to any law, ordinance, or regulation, including zoning ordinances, rules and regulations. c. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits, pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from challenging any taxes or special assessments to the appropriate authority. D. LITIGATION: The KMC, including regulations promulgated thereunder, and the laws of the State of Alaska will govern in any dispute between the Lessee and City. If a dispute continues after exhaustion of administration remedies, any lawsuit must be brought in the courts of the State of Alaska, in Kenai, Alaska. . LEASE OF AIRPORT LANDS Page 16 of33 81 E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which, during the term of this Lease may become a lien upon or which may be levied by the State, Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee may have in or to the Premises or improvements on the Premises by reason of its use or occupancy or the terms of this Lease provided, however, that nothing in this provision shall prevent Lessee from contesting any increase in a tax or assessment under any applicable law, ordinance, or regulation. F. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms, provisions, conditions, or parts shall continue in full force and effect as though the declaration had not been made. ARTICLE XII LEASE TERMINATION A. CANCELLATION: The City may, after 30 days' written notice to the Lessee, cancel this Lease and recover possession of the Premises if any of the following violations occur, unless the violation is cured within the 30 days: 1. The Lessee fails to pay when due the rents, additional rents, charges, or other sums specified in this Lease, including any increases made under this Lease. 2 . The Lessee's check for payment of any sum due under this Lease is returned for insufficient funds. 3. The Lessee uses or authorizes the use of the Premises for any purpose not authorized by this Lease. · 4. The Lessee fails to fully perform and comply with any provision in this Lease. 5. The court enters a judgment of insolvency against the Lessee. 6. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought by or against the Lessee, or the Lessee files a voluntary petition in bankruptcy. 7. Failure by the Lessee to comply with any land development or permanent improvement construction required by this Lease. B. ENTRY AND RE-ENTRY: In the event that the Lease should be termi nated in accordance with this Article XII, or by summary proceedings or otherwise, or upon the Lessee's LEASE OF AIRPORT LANDS Page 17 of33 82 abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or representatives may, immediately or any time thereafter, re-enter, and resume possession of the Premises or portion thereof, and remove all persons and property therefrom, without being liable for any damages therefore. No re-entry by the City shall be deemed .an acceptance of a surrender of the Lease. C. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will continue to pay City rent after the expiration, termination, or cancellation of this lease and to abide by the lease obligations, including providing proof of insurance coverage, through the date Lessee relinquishes possession of and completely vacates the Premises. City will consider the Premises completely vacated if the Lessee has; 1. Remediated any environmental contamination for which the Lessee is responsible; and 2. Restored the Premises to a neat and clean physical condition acceptable to the City. D. REASONABLE CURE 1. In the case of a violation that cannot be reasonably cured within 30 days, a notice of cancellation issued by the City to the Lessee under this Article is stayed if, within the 30-day notice period, the Lessee begins and continues expeditious action to cure the violation. The City will determine if a violation cannot be reasonably cured ·within 30 days and what constitutes expeditious action. 2. In the case where, in City's sole determination, Lessee's violation is considered an imminent threat to the airport, public health or safety, or the environment, City will direct the Lessee to stop the activity immediately and may reduce the period to cure the violation, or the City may correct the violation pursuant to (E) of this Article. E. RIGHT OF CITY TO PERFORM: 1. If, after 30 days following notice the Lessee fails or refuses to perform any action required by this Lease, the City will have the right, but not the obligation, to perform any or all such actions required by this Lease at the sole expense of the Lessee. The City will not take action if the Lessee begins and continues expeditious action to perform any action required by this Lease that cannot be reasonably completed within 30 days. The City will, at its sole discretion, determine what constitutes expeditious action and if an action cannot be LEASE OF AIRPORT LANDS City~ Page 18 of33 Lessee: ( 1 111 1~111 1 11~1 Page 18 of 33 ')("'\"{ C t"ln,...,"'ll"'H''"\ r'\ llj 83 reasonably performed in 30 days. The City will submit to the Lessee an invoice for the expenses incurred by the City in the performance by the City of any required action. The Lessee will pay the amount of each invoice within 30 days from issuance. 2. If Lessee fails or refuses to perform any action that has been deemed an imminent threat the City will have the right, but not the obligation, fo perform any or all such actions required to expeditiously correct the imminent threat. Lessee shall reimburse the City for any cost, including legal fees and administrative costs reasonably incurred by the City in acting to correct the imminent threat violation. F. WAIVER: A waiver by the City of any default by the Lessee of any provision of this Lease will not operate as a waiver of any subsequent default. If the City waives a default, the City is not required to provide notice to the Lessee to restore or revive any term or condition under this Lease. The waiver by the City of any provision in this Lease cannot be enforced or relied upon unless the waiver is in writing and signed on behalf of the City. The City's failure to insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver or relinquislunent for the future, and the provision will continue in full force. G. AIRPORT CLOSURE: I. If the City closes the airport to aircraft operations for sixty ( 60) days or less, this Lease will remain in full force and effect without adjustment 2. If the City closes the Airport to aircraft operations for more than sixty (60) days, but not permanently, and this Lease is for aviation or direct aviation support uses, the Lessee may, upon written notice to the City, either tenninate the Lease or retain the Lease and receive a fifty (50%) percent rent reduction or credit for that portion of the closure that exceeds 60 days. 3. If the City permanently closes the Airport to aircraft operations and (a) this Lease is for aviation or direct aviation support uses, the Lessee may terminate this agreement by written notice to the City; or (b) this Lease is for non-aviation uses, the Lessee may request in writing to have the Lease terminated. The City will consider the Lessee's request in light of the City's best interest and either terminate the Lease, or deny the Lessee's request in writing. LEASE OF AIRPORT LANDS Page 19 of33 84 H. DISASTERS The Lessee or City may cancel this lease upon written notice to the other party if; 1. the Premises becomes unusable through no fault of either party and performance under this lease becomes impossible; or 2. the Airport becomes unusable through no fault of either party and the performance under this lease becomes impossible. If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that the Airport has become unusable, the Lessee's obligations under the Lease will continue, but City shall be under no obligation to continue to perform. Causes for termination of the lease under this provision (H) include acts of God, the public enemy, and the United States. I. NATIONAL EMERGENCY: If the federal government declares a national emergency, neither party may hold the other liable for any inability to perform any part of this Lease as a result of the national emergency. J. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII, Lessee shall, on the last day of the term of this Lease (including any extension or renewal thereof) or upon any earlier termination of this Lease, surrender and deliver up the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. K. Disposition of Improvements Upon Termination. (a) Permanent improvements constructed by Lessee, excluding site development materials and utility lines and connection are the Lessee's property, subject to the terms and provisions of this Lease, as long as Lease remains in effect. (b) Upon, expiration, cancellation or termination of this lease the Lesssee may elect to do one or more of the following: (1) Remove Lessee owned permanent improvements from the premises, remediate any damage, and restore the premises to a clean and neat physical condition acceptable to City within 60 days of termination of the lease. (2) Sell Lessee owned improvements to succeeding lessee, if any, and remediate any damage, and restore the premises to a clean and neat physical condition acceptable to LEASE OF AIRPORT LANDS Page 20 of33 ( 11111 City: flAv-; Lessee:~ 1111 Page 20 of 33 85 City within 60 days of termination of the lease. (3) Request the City sell Lessee-owned permanent improvements at a public auction and remediate any damage, and restore the p remises to a clean and neat physical condition acceptable to City within sixty (60) days of termination of the lease. The City will not unreasonably deny such a request and will pay the Lessee any proceeds of the sale less the administrative costs of the public auction and any financial obligation the Lessee owes the City under the Lease. If all or a portion of the lessee owned permanent improvements do not sell at public auction, the Lessee shall, within sixty (60) days of the public auction, remove those permanent improvements days and remediate any damage, and restore the premises to a clean and neat physical condition acceptable to City. ARTICLE XIII GENERAL COVENANTS A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands or facilities without the written consent of the City is prohibited. This prohibition shall not apply to use of areas designated by the City for specified public uses, such as passenger terminals, automobile parking areas, and streets . B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to recording costs, shall be paid by Lessee. c. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good order at the Lessee's own expense, allowing no damage, waste, nor destruction thereof, nor removing any material therefrom, without written permission of the City. At the expiration of the term fixed, or any earlier termination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction .on the Premises by the Lessee must be compatible with its surroundings and consistent with the uses authorized under this Lease, as determined by the City. The Lessee must obtain the City's written approval before placing fill material, beginning any land development, or constructing or demolishing any improvements on the Premises, and before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation, together with specifications or any other information the City reasonably requires. Further, the Lessee will submit to City evidence of the Lessee's compliance with Federal Aviation Administration regulation 14 CFR Part 77 . LEASE OF AIRPORT LANDS Page 21 of33 86 E. LEASE SUBORDINATE TO AIRPORT FINANCING·REQUIREMENTS: Lessee agrees that City may modify this Lease to meet revised requirements for Federal or State grants, or to conform to the requirements of any revenue bond covenant. However, the modification shall not act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee financial loss. F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and covenants that the Lessee, upon paying rent and performing other covenants , terms, and conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and enjoy the Premises, except that the following shall not construed as a denial of the right of quiet or peaceable possession: I. Any inconvenience caused by public works projects in or about the Premises; and 2. Any other entries by the City on the Premises reserved or authorized under other provisions of this Lease. G. NO PARTNERSHIP OR JOINT VENTURE C~ATED: It is expressly understood that the City shall not be construed or held to be a partner or joint venture of Lessee in the conduct of the Lessee's activities or business on the Premises. The relationship between the City and the Lessee is, and shall at all times remain, strictly that of landlord and tenant, respectively. H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or state law. The Lessee recognizes the right of the City to take any action necessary to enforce this provision, including actions required pursuant to any federal or state law. I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will undertake an affirmative action program to insure that no person will be excluded from participating in any employment activities offered by the Lessee on the grounds of race, creed, color, national origin, or sex. No person may be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by subpart E. The Lessee further agrees that it will require its suborganization(s) provide assurance to the City to the same effect that they will a lso undertake affirmative action programs and require assurances from their suborganization( s) as required by 14 CFR, Part 152, subpart E. Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to title 49, code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted programs of the Department of Transportation- Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulation may be amended. LEASE OF AIRPORT LANDS Page 22 of33 City: !AA Lessee:~ Page 22 of 33 2015-00??QQ_() "l 87 J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms, conditions, and agreements of the parties and supersedes any previous understandings or agreements regarding the Premises whether oral or written. No modification or amendment of this Lease is effective unless in writing and signed on behalf of the City and the Lessee. K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce reasonable rules and regulations governing the Airport, including the Prem,ises. The City shall not be liable to Lessee for any diffi:inution or deprivation of possession, or of Lessee's rights under this Le~se, on account of the exercise of the City's authority reserved under this provision. Furthermore, the Lessee shall not be entitled to terminate the whole or any portion of the leasehold estate created under this Lease, by reason of the exercise of the City's authority reserved under this provision, unless the exercise thereof so interferes with Lessee's use and occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease by operation oflaw under the laws of the State of Alaska and of the United States made applicable to the states. L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not permit any liens including, but not limited to, mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the Premises or improvements on the Premises for any labor or material furnished to Lessee or claimed to have been furnished to Lessee or to the Lessee's agents, contractors, or sublessees, in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Lessee. Provided, however, the Lessee shall have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien .or claimed lien. Upon a final determination of the lien or claim for lien, the Lessee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Lessee's own expense. M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned and taken for a public or a quasi-public use, then upon payment of any award or compensation arising from the condemnation or taking, the City and the Lessee shall make a good faith effort to agree upon 1. the division of the proceeds; 2. the abatement in rent payable during the term or any extension of the term of this Lease; and 3 . other adjustments as the parties may agree upon as beingjust and equitable under all the circumstances. LEASE OF AIRPORT LANDS Page 23 of33 Page 23 of 33 88 If, within thirty (30) days after the award has been paid into Court, the City and Le.ssee are unable to agree upon what division, abatement in rent, and other adjustments as are just and equitable, the dispute shall be determined by arbitration. N . SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations on assignment as are provided for in this Lease. 0. NOTICES: 1. Any notices required by this Lease must be in writing and must be delivered personally or mailed by certified or registered mail in a prepaid envelope. A mailed notice a. must be addressed to the respective party at the address written on the first page of this Lease or to the latest address designated in accordance with (2) of this Provision (O); and b. shall be deemed delivered on the date it is deposited in a U.S . general or branch post office. 2. The City or the Lessee may, from time to time, designate a new address at which they will receive notices by providing the other party with written notice at .least 15 days prior to the effective date of the change. An address change notice must be delivered according to the procedure set out in (1) of this Provision (0). P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any breach by the Lessee, the City shall retain any unused balance of the rental payment last made by the Lessee City as partial or total liquidated damag~s for the breach. Q . FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and take all necessary action to suppress destructive or uncontrolled fires and comply with all laws, regulations, and rules promulgated and enforced by the City for fire protection on the Airport. R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral, or in any deposit of stone or gravel valuable for extraction or utilization is included in the Premises or in the rights granted by this lease.. The Lessee shall not sell or remove from the Premises for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes. LEASE OF AIRPORT LANDS Page 24 of33 89 S. APPROVAL OF OTHER AUTHORITIES: The granting ofthis lease by the City does not relieve the Lessee of the responsibility to obtain any license or permit as may be required by federal, state, or local law. T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the Lessee, or a duly authorized representative of Lessee, and an authorized representative of the City. U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and do not necessarily define, limit, describe, or construe the contents of any provision. V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property available for private use, while at all times protecting the public interest to the greatest extent possible. Following the rule that transfers of interest in public property are to be strictly construed in favor of the public property landlord, all rights granted to the Lessee under this Lease will be strictly construed, and all rights of the City and the protections of the public interest will be liberally construed. W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee.has read this Lease and fully understands its terms, that the Lessee has been fully advised or has had the opportunity of advice by separate legal counsel, and voluntarily executes this Lease. Lessee also acknowledges and agrees that the rule of interpretation under which a document is construed against the drafter will not apply to this Lease. X. APPROVAL BY LESSOR: _Any approval required of the Lessor by this Lease will not be unreasonably withheld. The Lessor's approval does not waive the Lessee's legal responsibility or liability to comply with all applicable federal and state laws and regulations. ARTICLE XIV SURVEY, IMPROVEMENTS AND PERFORMANCE BOND A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish the physical location of the boundaries of the Premises prior to beginning any construction thereon, including clearing grubbing, back-filling and environmental sampling. Any survey of the Premises shall be performed by a Land Surveyor registered in the State of Alaska. The Lessee shall furnish the City with a copy of the plat of any survey performed on the Premises by, or on behalf of, the Lessee. B. IMPROVEMENTS . LEASE OF AIRPORT LANDS Page 25 of33 (IH City:_e_ Lessee:-.f.l:::-- 1111111/lll i~li Page 25 of 33 90 1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including removal of waste material previously buried on the site and construct two 2 6-plex unit t-hangar heated complex , by no later than September 1, 2016 with an appraised value of at least $500,000.00. In addition to the as-built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has co mpleted the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than $500,000.00 . The evidence of cost must be submitted to the City within sixty (60) days of the completion of the development and improvements, but by no later than September 1, 2016. a. Costs considered toward the aggregate cost of permanent improvements include building construction, design, labor, materials, materials shipping, permits, equipment, soil testing, environmental baseline report, and environmental assessment directly related to the construction; premises and as-built surveys; site preparation, including excavation, geotextile fabric, filling, grading, fill material, gravel, and pavement, remediation of environmental contamination (unless Lessee caused or materially contributed to the contamination); and utility connection costs. b. The cost of Permanent Improvements excludes (i) work performed by the City and not reimbursed by the Lessee; and · (ii) work performed by the Lessee and reimbursed by the City. 2. FAILURE TO COMPLETE IMPROVEMENTS : If the Lessee fails to complete the required construction within the time allowed under (B)(l) of this Article, including any extensions granted, the City will execute against and the Lessee will forfeit, any bond or other guarantee given by the Lessee and, as applicable, City will a. initiate cancellation of the lease; or b. reduce the term of the lease to a period that is consistent with the portion of the required construction timely complet~d. LEASE OF AIRPORT LANDS Page 26 of33 ( City :~ Lessee: --Jf,L- Page 26 of 33 m111 91 3 . APPEARANCE: When completed, all improvements on.the Premises must be neat, presentable, and compatible with the authorized use of the Premises under this Lease , as determined by the City. 4 . CITY APPROVAL REQUIRED: The Lessee must first obtain the City's written approval before beginning any land development, construction or demolition of any improvements on the Premises, or before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation. Further, the Lessee will submit to City evidence of the Lessee's compliance with the FAA regulation 14 CFR Part 77. 5. CITY APPROVAL WITHHELD : The City's approval of any construction, alteration, modification, or renovation will not be withheld unless : a. the Lessee fails to demonstrate adequate financial resources to complete the project; b. the project plans, specifications, and agency approvals are incomplete; c. the proposed project would result in a violation of an applicable ordinance, regulation, or law; d . the proposed project would interfere with or is incompatible with the safety, security, maintenance, or operation of the airport; e. the proposed project is inconsistent with the Airport Master Plan; f. the proposed project is inconsistent with the terms of the lease, zoning ordinances, or the City's Comprehensive Plan; g the project plans do not make sufficient provision for drainage, aircraft, vehicle, and equipment parking, or for snow storage; or h. the proposed project does not conform to generally recognized engineering principles or applicable fire or building codes. 6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises, Lessee will deliver to City a written scope of work that, at a minimum, lists the structure(s) that are to be demolished and the timeframe for demolition and removal of the debris from the Airport. City will review Lessee's scope for demolition and issue Lessee written approval for the work to be done . 7. BUILDING SETBACK: No building or other permanent structure may be constructed or placed within twenty (20) feet of any lot line of the Premises without City's prior written approval. In addition, no building or other permanent structure may be constructed or placed within N/ A feet of any boundary line of the Premises which fronts on a landing strip, taxiway, or apron. LEASE OF AIRPORT LANDS Page 27 of33 City: /Jjy Lessee:~ l!J 92 8 . AS-BUILT DRAWINGS: Within sixty (60) days after completion of construction or placement of improvements upon the Premises, the Lessee will deliver to the City a copy of an as-built drawing, acceptable to the City, showing the location and dimensions of the improvements, giving distances to all Premises' boundaries. If the Lessee constructs underground improvements, the Lessee will appropriately mark the surface of the land with adequate surface markers. The type, quantity, and distance between such markers will be subject to approval of the City. 9. AIRPORT SECURITY FENCING: If any construction by the Lessee requires a realignment or alteration of an existing security fence on the Premises or boundary of the Premises, the Lessee agrees to realign or alter the fence in a manner approved in writing by the Airport Manager. Anytime the fence must be breached to allow the Lessee to complete improvement construction or fence modifications, the Lessee shall, at the Lessee's sole expense place temporary barriers to maintain the security of the Airport, as determined by the Airport Manager. If damage occurs to a security fence on the Premises or boundary of the Premises in connection with the Lessee's use or occupation of the Premises, the Lessee shall promptly repair the fence to the satisfaction of the Airport Manager. 10. DAMAGE TO IMPROVEMENTS: If Lessee's improvements on the Premises are damaged or destroyed, Lessee will cause the improvements to be repaired or rebuilt, and restored to normal function within two (2) years following the damage or destruction. If the Lessee fails to timely rebuild or restore the improvements, the City may, at its sole discretion, either reduce the term of this Lease commensurate with the estimated value of the Lessee's remaining, fully functional improvements on the Premises, or cancel this Lease. 11. DAMAGE NEAR EXPIRATION: If Lessee's improvements are damaged to the extent that more than 50% of the space is unusable and the damage occurs within five years of the expiration of the term of this Lease, Lessee may remove the damaged improvements, restore the Premises and terminate this Lease . c. PERFORMANCE BOND : Prior to beginning the construction of permanent improvements required under (B)(l) of this Article, the Lessee shall submit to the City a performance bond, deposit, or other security in the amount of $N/ A. The form of the bond or other security shall be subject to the City's approval. LEASE OF AIRPORT LANDS Page 28 of33 93 D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the tenn of this Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the term of this Lease, including any extension or renewal, or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in City without requirement of any deed, conveyance, or bill of sale thereon. However, if City should require any such document in confirmation hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed by any and all governmental units in connection herewith. E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three days prior to commencing any construction project valued in excess of$1,000.00 on the Premises. The Lessee agrees to assist in the posting of a notice of non-responsibility and maintenance of the notice on the Premises during construction. Lessee agrees that in the event the Lessee fails to notify the City as required by this Provision (f), the Lessee shall indemnify the City against any materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the premises. ARTICLE XV SPECIAL PROVISIONS A. CITY CONSTRUCTED IMPROVEMENTS. 1.. AL TERNATNE ONE -The City commits to construct improvements after the lease is signed. (a) As part of the exchange of consideration of this lease, the City will, at the City's expense, cause the following improvements to be constructed on or in connection with the Premises: (i) NIA; (ii) NIA; (iii) NIA. (b) The City's total cost of the improvement construction shall not exceed $NIA without the Lessee's written concurrence. LEASE OF AIRPORT LANDS Page 29 of33 City:_e_ Lessee: --£=- II Page 29 of 33 ')n1.:; nn"'>"'>nn n I~ 94 (c) The Lessee shall reimburse the City for the City's cost of constructing the improvements. The reimbursement shall be made in ten (10) equal annual payments, plus interest at eight percent (8%) per year on the unpaid balance. The Lessee may pay the entire remaining balance to the City earlier than due. ( d) After completing the improvements, the City will give the Lessee written notice of the City's total cost of constructing the improvements and the date on which the Lessee's reimbursement payments shall begin, which date shall be no earlier than 60 days after the date of the City's notice. The Lessee's annual reimbursement payment for each succeeding year shall be made to the City by no later than the anniversary of date on which the first payment was due. ( e) Failure by the Lessee to timely reimburse the City as required under (b) through ( d) of this provision shall be grounds for termination of this lease by the City. 2. ALTERNATIVE TWO -The City builds improvements before the lease is signed. (a) The Lessee acknowledges that prior to the execution of this lease, the City constructed the following improvements on or in connection with the Premises: (b) (i) NIA; (ii) NIA; (iii) NIA. The City's total cost to construct the improvements was $NIA . ( c) As part of the consideration of this lease, the Lessee shall reimburse the City for the City's cost of constructing the improvements. The reimbursement shall be made in ten (10) equal annual payments, plus interest at eight percent (8%) per year on the unpaid balance. The Lessee may pay the entire remaining balance to the City earlier than due. ( d) The Lessee shall make the first reimbursement payment to the City by no later than the first anniversary of the lease term beginning date given in Article III of this Lease. The Lessee's annual reimbursement payment for LEASE OF AIRPORT LANDS Page 30 of33 City o ~ Lessee : Page 30 of 33 95 each succeeding year shall be made to the City by no later than the anniversary of date on which the first payment was due. (e) Failure by the Lessee to timely reimburse the City as required under (c) and (d) of this provision shall be grounds for termination of this Lease by the City. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. (If Lessee is a Corporation) ATTEST : Name Title LEASE OF AIRPORT LANDS Page 31 of33 CITY OF KENAI By: !/!/flit( City Manager LESSEE: LEGACY ELECTRIC, LLC , B~-Q<--N,C N Title 96 STATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this \ZJ11 day of J ~NVA.Y...'f, 201'. Name: Dfil'f lk\\l\1Ulli~ , Title: OWtJ@?.., , of LEGACY ELECTRIC, LLC, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said corporation. ~ Notary pfufo for Alaska My Commission Expires: W/Offl (+~: • STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this \2.1 1 ' day of JN.JVJ\'¥-{, 201~ RICK R . KOCH, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and . authorized execution of the foregoing instrument on behalf of said City. LEASE OF AIRPORT LANDS Page 32 of33 ~--------~ ?--:~ _.--.....----- Notary fulic for Alaska My Commission Expires :~(J(:: ~ll ll lllllll~llli~illll ll Page 32 of 33 20 15-002299-0 97 Approved as to lease form by City Attorney: S (S Approved by Finance Director : · 1k--- Airport Commission recommended approval on 25 JI L{ h l{ r I Planning & Zonjng Commission recommended approval on "6" Jza-{ IL( San~ty Clerk LEASE OF AIRPORT LANDS Page 33 of33 c1 City~ Lessee: Page 33 of 33 lllf) 2015-002299-0 ) 98 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Paul Ostrander, City Manager DATE: February 14, 2019 SUBJECT: Resolution No. 2019 – 13 Sublease between Legacy Electric, LLC and the Peninsula Hangar Association ____________________________________________________________________________ Legacy Electric, LLC executed a lease with the City on January 12, 2015 to operate a T-hangar complex on the airport with an initial term of 35 years. Legacy Electric, LLC’s plan is to form a common interest ownership community to manage the project. This allows the Lessee to sell units of the common interest ownership property to potential buyers for use of the facility. The buyers essential gain ownership of individual units subject to the City’s Lease. In order to facilitate this, the City must consent to a sublease between Legacy Electric, LLC and the Peninsula Hangar Association that will manage the common interest ownership community, and as the landowner consent to the declaration of the Common Interest Ownership Cooperative. The City Attorney has reviewed the relevant documents and the terms of the declaration and sublease are subject to the terms of the City’s Lease with the Legacy Electric, LLC. These types of projects have been successful at other airports in the State, including Lake Hood, and is needed to allow for successful utilization of the City’s Airport and add to the business community within the Airport Reserve. Your consideration is appreciated. 99 KENAI CITY COUNCIL – REGULAR MEETING FEBRUARY 6, 2019 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR BRIAN GABRIEL, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on February 6, 2019, in City Hall Council Chambers, Kenai, AK. Mayor Gabriel called the meeting to order at approximately 6:00 p.m. 1. Pledge of Allegiance Mayor Gabriel led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Brian Gabriel, Mayor Robert Molloy Henry Knackstedt Tim Navarre Jim Glendening Robert Peterkin Glenese Pettey A quorum was present. Also in attendance were: **Tristan Summers, Student Representative Paul Ostrander, City Manager Scott Bloom, City Attorney Jamie Heinz, City Clerk 3. Agenda Approval Mayor Gabriel noted the following revisions to the agenda: Add to item D.1. Ordinance No. 3048-2019 • KMC 5.25.030 Prohibited Acts • KMC 5.25.060 Revocation or Restriction of License • KMC 7.15.120 Appeal Procedure Add to item D.7. Resolution No. 2019-12 • First Amendment to Deed of Trust Remove item G.2. Purchase Orders Exceeding $15,000 . 100 City of Kenai Council Meeting Page 2 of 10 February 6, 2019 MOTION: Council Member Molloy MOVED to approve the agenda with the requested revisions to the agenda and packet and requested UNANIMOUS CONSENT. Council Member Glendening SECONDED the motion. VOTE: There being no objections, SO ORDERED. 4. Consent Agenda MOTION: Council Member Knackstedt MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. Mayor Gabriel opened for public hearing; there being no one wishing to be heard, the public hearing was closed. VOTE: There being no objections, SO ORDERED. *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 – None. C. UNSCHEDULED PUBLIC COMMENTS – None. D. PUBLIC HEARINGS 1. Ordinance No. 3048-2019 – Amending Kenai Municipal Code Chapter 5.25, Mobile Food Vendors, to Revise Application Requirements, License Terms, and Business Conduct Requirements and Make Other Housekeeping Amendments. (City Clerk) MOTION: Council Member Molloy MOVED to enact Ordinance No. 3048-2018 and Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. It was suggested the appeal procedures not be repealed due to some of the business conduct requirements being added; suggested a simple appeal procedure through the manager be incorporated. MOTION TO POSTPONE: 101 City of Kenai Council Meeting Page 3 of 10 February 6, 2019 Council Member Molloy MOVED to postpone to the March 6, 2019 meeting and Council Member Knackstedt SECONDED the motion. UNANIMOUS CONSENT was requested. VOTE ON POSTPONEMENT: There being no objections, SO ORDERED. 2. Ordinance No. 3049-2019 – Increasing Estimated Revenues and Appropriations in the Airport Improvements Capital Project Fund for Tenant Requested Improvements to the Automated Flight Service Station. (Administration) MOTION: Council Member Knackstedt MOVED to adopt Ordinance No. 3049-2019 and Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. MOTION TO POSTPONE: Council Member Knackstedt MOVED to postpone to the February 20, 2019 meeting. Vice Mayor Navarre SECONDED the motion and requested UNANIMOUS CONSENT. VOTE ON POSTPONEMENT: There being no objections, SO ORDERED. 3. Resolution No. 2019-08 – Authorizing the Purchase of Real Property Described as Lots Two (2) and Three (3), Block 5, East Addition Townsite of Kenai, for the Public Purpose of Including the Property in the Bluff Erosion Restoration Project and Determining that Public Interest will not be Served by an Appraisal. (Administration) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2019-08 and Council Member Molloy SECONDED the motion. UNANIMOUS CONSENT was requested. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 4. Resolution No. 2019-09 – Declaring a Utility Easement 20 Feet Wide and Approximately 242 Feet in Length Along the Northern Boundary of Lot 5, Block 1, and the Southern Boundary of Lot 6, Block 1, FBO Subdivision as Set Forth on the Attached Exhibit “A” is not Needed for a Public Purpose and Consenting to its Vacation. (Administration) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2019-09 and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. 102 City of Kenai Council Meeting Page 4 of 10 February 6, 2019 Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. VOTE: There being no objections, SO ORDERED. 5. Resolution No. 2019-10 – Encouraging the State of Alaska Board of Fisheries to Rescind their January 18, 2019 Decision to Move the Upper Cook Inlet 2020 Finfish Meeting to Anchorage Due to the Lack of Adequate Public Notice and Process. (Council Member Molloy) MOTION: Council Member Molloy MOVED to adopt Resolution No. 2019-10 and Council Member Knackstedt SECONDED the motion. UNANIMOUS CONSENT was requested. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. [Clerk’s Note: Student Representative Summers joined the meeting at 6:30 p.m.] It was noted many members of the community were disappointed with this action by the Alaska Board of Fisheries. A history, beginning in 2014, of the process for getting the Board to agree to hold a meeting on the Peninsula was provided. An overview of what took place on Friday, January 18th was also provided. The point was made that governing bodies needed to operate in a transparent manner. It was also pointed out that it was not unusual for the Board to meet in affected communities when considering policies relating to that region. The authors of the letters provided as backup to the resolution were thanked. VOTE: There being no objections, SO ORDERED. 6. Resolution No. 2019-11 – Awarding a Three Year Agreement, with the Option of Two, One-Year Extensions by Mutual Consent, to Ingram Content Group, for the Purchase of Library Materials and Authorizing Issuance of a Purchase Order in the Amount of $21,000.00 for the Remainder of FY2019. (Administration) MOTION: Council Member Knackstedt MOVED to adopt Resolution No. 2019-11 and requested UNANIMOUS CONSENT. Vice Mayor Navarre SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that Ingram Content Group was a large group purchasing organization and the City chose the materials purchased. An overview of the Request for Proposal process and responses was provided. 103 City of Kenai Council Meeting Page 5 of 10 February 6, 2019 VOTE: There being no objections, SO ORDERED. MOTION: Council Member Glendening MOVED to suspend the rules and take up New Business item 7 at this point in the meeting in the event an executive session was needed for the next item and Vice Mayor Naverre SECONDED the motion. VOTE: There being no objections, SO ORDERED. G.7. Action/Approval – Agreement for Temporary use of Facilities at the Fire Training Facility to the American National Red Cross. (Administration) MOTION: Council Member Molloy MOVED to approve the agreement for temporary use of facilities at the Fire Training Facility to the American National Red Cross and Council Member Glendening SECONDED the motion. UNANIMOUS CONSENT was requested. It was suggested there was an opportunity for shared administrative services. VOTE: There being no objections, SO ORDERED. 7. Resolution No. 2019-12 – Amending Terms of the Deed of Trust for the Bowling Alley Subject to Additional Terms and Conditions. (Legal) [Clerk’s Note: Council May Convene into Executive Session to Discuss this Agenda Item which Pursuant to AS 44.62.310(c)(1)(3) a Matter of Which the Immediate Knowledge may have an Adverse Effect Upon the Finances of the City, and a Matter by which Law, Municipal Charter, or Ordinance are Required to be Confidential)] MOTION: Council Member Glendening MOVED to adopt Resolution No. 2019-12 and Council Member Molloy SECONDED the motion. Mayor Gabriel opened the public hearing; there being no one wishing to be heard, public comment was closed. Clarification was provided that at the last minute the bank recognized it couldn’t use the appraisal from 2016 which was paid for by the City and an extension was needed for a new appraisal to be completed. A reminder was provided regarding the number of people had come to Council in the past speaking supportively of the Bowling Alley. There was discussion regarding the term “one month,” which may conflict with the date provided. MOTION TO AMEND: 104 City of Kenai Council Meeting Page 6 of 10 February 6, 2019 Council Member Molloy MOVED to amend by deleting the term, “a one month,” in the second whereas clause and replacing it with the word, “an.” Vice Mayor Navarre SECONDED the motion and requested UNANIMOUS CONSENT. There was objection to unanimous consent. . VOTE: YEA: Knackstedt, Gabriel, Glendening, Pettey, Molloy, Navarre NAY: Peterkin MOTION PASSED. VOTE ON THE MAIN MOTION AS AMENDED: YEA: Molloy, Gabriel, Navarre, Pettey, Knackstedt, Glendening. NAY: Peterkin MOTION PASSED. E. MINUTES 1.*Regular Meeting of January 16, 2019 Approved by the consent agenda. 2.*Work Session of January 16, 2019 Approved by the consent agenda F. UNFINISHED BUSINESS – None. G. NEW BUSINESS 1. *Action/Approval – Bills to be Ratified. Approved by the consent agenda. 2. *Action/Approval – Purchase Orders Exceeding $15,000. (Administration) [Clerk’s Note: This item was removed from the agenda during approval of the agenda.] 3. *Action/Approval – Non-Objection to Liquor License Renewals for Kenai Joe’s, Peninsula Oilers Baseball Club, and Oaken Keg #1808 (City Clerk) Approved by the consent agenda. 4. *Ordinance No. 3050-2019 – Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services Passed through the Alaska State Library for Employee Travel and Training. (Administration) 105 City of Kenai Council Meeting Page 7 of 10 February 6, 2019 Introduced by the consent agenda and public hearing set for February 20. 5. *Ordinance No. 3051-2019 - Accepting and Appropriating Private Donations to the Kenai Animal Shelter for the Humane Capture and Treatment of Animals. (Administration) Introduced by the consent agenda and public hearing set for February 20. 6. *Ordinance No. 3052-2019 - Amending Provisions in Kenai Municipal Code Title 3-Animal Control, Including the Definition of “Vicious Animal” in Kenai Municipal Code 3.05.010-Definitions, Mandatory Court Appearance Requirements in Kenai Municipal Code 3.05.070-Citation Procedure, Including a New Offense in Kenai Municipal Code 3.10.020 - Control and Confinement of Animals, and Making Corresponding Changes to Kenai Municipal Code 13.10.015 – Minor Offense Fine Schedule and the City’s Uniform Minor Offense Table. (Legal) Introduced by the consent agenda and public hearing set for February 20. 7. Action/Approval – Agreement for Temporary use of Facilities at the Fire Training Facility to the American National Red Cross. (Administration) [Clerk’s Note: This item was taken up prior to Public Hearing item 7 after a motion was approved to suspend the rules.] H. COMMISSION/COMMITTEE REPORTS 1. Council on Aging – It was reported the Council elected Roy Williams as chair and Don Erwin as Vice-Chair. It was also reported that the Council heard an update on capital improvement projects for the Senior Center, the greenhouse project, and a presentation on bluff erosion stabilization project; next meeting February 14. 2. Airport Commission – No report; next meeting February 14. 3. Harbor Commission – February meeting cancelled; next meeting March 11. 4. Parks and Recreation Commission – A report was provided that the Commission discussed goals and objectives for 2019 and 2020 and reforestation plans due to spruce bark beetle kill. It was further reported that City Planner Appleby provided information about the activities of the Biking in Kenai and Soldotna citizen group; next meeting February 7. 5. Planning and Zoning Commission – It was noted a work session was held on January 23rd to debrief the American Planning Conference training and begin sign code discussions; February 13 meeting cancelled; next meeting February 27. 6. Beautification Committee – It was reported the Committee reappointed Lisa Gabriel as Chair and discussed goals and objectives for 2019 and 2020; also heard about reforestation due to spruce bark beetle kill; next meeting April 9. 7. Mini-Grant Steering Committee – No report. 106 City of Kenai Council Meeting Page 8 of 10 February 6, 2019 I. REPORT OF THE MAYOR Mayor Gabriel reported he had recently attended the Governor’s Inauguration Ball. J. ADMINISTRATION REPORTS 1. City Manager – P. Ostrander reported on the following: • Had been working with the Golf Course on permitting to replace a bridge which was an anadromous stream; hoping for construction in March; • Offered kudos to the streets team for their work after the recent snow events; • Noted the Terminal Rehabilitation Project was ongoing and expected to come back to Council for additional contingency due to the asbestos discovery; • Had scheduled a meeting with staff from the Governor’s office regarding the Board of Fisheries decision; • Reported the Director’s Report had not yet been signed for the Bluff Erosion Project. 2. City Attorney – S. Bloom reported that Amazon had recently registered and begun collecting sales tax in the Kenai Peninsula Borough and provided information and processes in place for residents who felt they had been taxed incorrectly. It was suggested the City shouldn’t be placed in a position to be attacked for collecting sales tax from 99611; have a responsibility to the people who shop in our community and should be a good neighbor by putting something in place so people don’t have to go through a process to get the incorrectly charged tax back. Clarification was provided the problems were recognized and the City was working with the Borough, who administered the sales tax code, to determine the best course of action moving forward. MOTION: Vice Mayor Navarre MOVED to direct the City Manager write a letter to the Borough and Amazon with concern that residents in 99611 were being taxed when they don’t live within the boundaries of the City of Kenai and until such time as the boundaries are clearly defined and stated with latitude being given to the City Manager and City Attorney to write the letter but that being the intent. The motion was SECONDED by Council Member Peterkin. It was reiterated that Administration had been working with the Borough Attorney’s office and the concerns would be conveyed. The suggestion was made that a stronger course of action would be for the Borough and all the cities within the Borough to approach the matter in a unified manner. There was discussion regarding waiting to make the decision to provide for adequate public notice, the issue not being isolated to Kenai and Soldotna, the effect of no action on the City’s relationships with those that work and buy in the community, there being an avenue for resolution and outreach to educate the residents, and staff working toward a solution. Clarification was provided that Amazon registered as a quarterly filer and would be remitting payment quarterly. The motion was withdrawn with concurrence of the second. 107 City of Kenai Council Meeting Page 9 of 10 February 6, 2019 3. City Clerk – J. Heinz reported the Deputy Clerk was at training for the Laserfiche Software and provided reminders of upcoming events and meetings. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments Council Member Knackstedt noted an upcoming Kenai Historical Society meeting to discuss the Terminal Rehabilitation Project and the mural that was discovered. Student Representative Summers noted an upcoming regional meet for the cross-country ski team. Council Member Peterkin noted a recent trip to Arizona and a project called Art Space which he toured; had also been in Juneau with the State Chamber of Commerce visiting the Legislature. Council Member Glendening noted he attended the recent Chamber of Commerce luncheon and heard about struggles the AK LNG project was facing; added he believed there was enough funding to finish the Environmental Impact Statement. He also noted that attended a recent Material Extraction Committee meeting. Council Member Pettey provided a reminder of a show opening at the Kenai Fine Arts Center. Vice Mayor Navarre noted upcoming travel to Juneau as President of Alaska Municipal League and offered kudos to the streets crew. L. EXECUTIVE SESSION 1. Discuss Terms Regarding the Sale of Property Located at 10639 Kenai Spur Highway, Kenai, AK, Also Known as Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition (the Bowling Alley Opportunity), Pursuant to AS 44.62.310(c)(1)(3) a Matter of Which the Immediate Knowledge may have an Adverse Effect Upon the Finances of the City, and a Matter by which Law, Municipal Charter, or Ordinance are Required to be Confidential. Action/Approval – Provide Direction to City Administration Regarding the Sale of Property Located at 10639 Kenai Spur Highway, Kenai, AK, also known as Lot 3A, Block 1, Spur Subdivision No. 1, 1983 Addition (the Bowling Alley Opportunity). [Clerk’s Note: An executive session was not needed after the adoption of Resolution No. 2019- 12 in open session.] M. PENDING ITEMS – None. N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 8:09 p.m. 108 City of Kenai Council Meeting Page 10 of 10 February 6, 2019 I certify the above represents accurate minutes of the Kenai City Council meeting of February 6, 2019. _____________________________ Jamie Heinz, CMC City Clerk **The student representative may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast in the rotation of the official council vote and shall not affect the outcome of the official council vote. Advisory votes shall be recorded in the minutes. A student representative may not move or second items during a council meeting. 109 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 3049-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE AIRPORT IMPROVEMENTS CAPITAL PROJECT FUND FOR TENANT REQUESTED IMPROVEMENTS TO THE AUTOMATED FLIGHT SERVICE STATION. WHEREAS, the City of Kenai had a planned Capital Improvement Project for the Automated Flight Service Station Renovations Phase 3; and, WHEREAS, the Federal Aviation Administration (FAA) as tenant, has requested modifications to the original scope of work to improve the services they provide, primarily related to their training facilities; and, WHEREAS, the requested modifications were included within the bid documents released in a formal Invitation to Bid on November 16, 2018, with Bids received on December 14, 2018; and, WHEREAS, Polar North Construction LLC was the lowest responsive bidder at $182,315.00; and, WHEREAS, the estimated additional cost of the requested modifications totals $43,972.26, and the Public Works Department is coordinating with the FAA to receive funds in this amount from the FAA to contribute to the project for its completion; and, WHEREAS, without the additional funding from the FAA the City will not be able to award the project as there is insufficient funds to do so without the additional contribution. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That the estimated revenues and appropriations be increased as follows: Airport Improvements Capital Project Fund: Increase Estimated Revenues – Miscellaneous Income $43,972.26 Increase Appropriations – Construction $43,972.26 Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. 110 Ordinance No. 3049-2019 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 6th day of February, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk _______ Finance Introduced: January 16, 2019 Enacted: February 6, 2019 Effective: February 6, 2019 111 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin – Public Works Director DATE: January 9, 2019 SUBJECT: Ordinance No. 3049-2019 The purpose of this memo is to recommend passage of Ordinance No. 3049-2018 requesting an increase to the estimated revenue and appropriations in the Airport Improvements Capital Project Fund in the amount of $43,972.26, for the completion of the Automated Flight Service Station (AFSS) Renovations Phase 3 project. The Public Works Department, in coordination with the Federal Aviation Administration (FAA) as tenant, has incorporated some facility modification requests into the current scope of work for the Phase 3 renovation project. The modifications were primarily focused on expanding existing training room space to accommodate a greater number of students. The City released a formal Invitation to Bid on November 16, 2018 with bids due on December 14, 2018. Five bids were received and Polar North Construction LLC was found to be the lowest responsive bidder at $182,315.00. The estimated costs of the FAA’s requested modifications total $43,972.26, and the Public Works Department is coordinating with the FAA for the City to receive a contribution from the FAA in that amount. As portions of the Federal Government are currently shutdown the timing of this contribution is unknown at this time. The FAA has communicated its strong desire and preference to see this work completed. Thank you for your consideration. 112 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Scott Curtin – Public Works Director DATE: January 30, 2019 SUBJECT: Ordinance No. 3049-2019 The purpose of this memo is to request postponement of this Ordinance until the February 20, 2019 Council Meeting. Ordinance No. 3049-2019 is requesting an increase to the estimated revenue and appropriations in the Airport Improvements Capital Project Fund in the amount of $43,972.26, for the completion of the Automated Flight Service Station (AFSS) Renovations Phase 3 project. The Public Works Department, in coordination with the Federal Aviation Administration (FAA) as tenant, has incorporated some facility modification requests into the current scope of work for the Phase 3 renovation project. The modifications were primarily focused on expanding existing training room space to accommodate a greater number of students. The City released a formal Invitation to Bid on November 16, 2018 with bids due on December 14, 2018. Five bids were received and Polar North Construction LLC was found to be the lowest responsive bidder at $182,315.00. The estimated costs of the FAA’s requested modifications total $43,972.26, and the Public Works Department is coordinating with the FAA for the City to receive a contribution from the FAA in that amount. The FAA staff involved with this project were furloughed due to the Federal Government shutdown and have just recently returned to work. A phone conference was conducted with the FAA on January 30, 2019 where they agreed to the construction costs as proposed and have begun the process of securing their portion of the funding for the project. Public Works anticipates those funds being secured by February 20, 2019. Thank you for your consideration. 113 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF: FEBRUARY 20, 2019 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT PERS PERS VARIOUS LIABILITY 94,322 .08 INTEGRITY JANITORIAL JAN. SERVICE AT CITY HALL NON-DEPARTMENTAL REPAIR & MAINTENANCE 1,389.00 PRECIOUS JANITORIAL JAN. SERVICE AT LIBRARY LIBRARY REPAIR & MAINTENANCE 2,795.00 PRECIOUS JANITORIAL JAN . SERVICE AT TERMINAL AIRPORT REPAIR & MAINTENANCE 4 ,495.00 PRECIOUS JANITORIAL JAN. SERVICE AT POLICE POLICE REPAIR & MAINTENANCE 978.00 PRECIOUS JANITORIAL JAN. SERVICE AT VISITOR CENTER VISITOR CENTER REPAIR & MAINTENANCE 928.00 ENSTAR NATURAL GAS GAS USAGE VARIOUS UTILITIES 39 ,329 .02 INVESTMENTS VENDOR DESCRIPTION MATURITY DATE AMOUNT Effect. Int. 114 PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: FEBRUARY 20, 2019 VENDOR DESCRIPTION DEPT. STREAKWAVE WIRELESS WIRELESS PARTS VARIOUS INCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION P.O.# -DEPT. ACCOUNT AMOUNT MACHINERY & EQUIPMENT 22 ,370.37 REASON AMOUNT TOTAL PO AMT 115 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager THROUGH: Terry Eubank, Finance Director FROM: Dan Castimore, IT Manager DATE: February 14, 2019 SUBJECT: Licensed Wireless Backhaul Included in the FY17 budget was money to implement an unlicensed wireless backhaul system. Currently, an unlicensed wireless network connects the major City facilities to the datacenter. This unlicensed network has resulted in a decrease of $11,835 to the annual communications budget. Since the unlicensed wireless equipment was installed, a wireless internet service provider has begun operating in the central peninsula. This provider uses the same frequencies and equipment as the City. In an effort to prevent future interference issues a project was included in the FY19 budget to move 6 sites onto licensed wireless equipment. This will guarantee that these links will be interference free in the future. The project has now received FCC licensing and the next step is the purchase of the necessary equipment. I solicited quotes from 4 vendors to purchase this equipment. Of these vendors, 1 submitted a quote and 3 were unable or unwilling to provide quotes. The one responsive vendor was Streakwave Wireless for $22,370.34. Funding for this purchase is available. It is my recommendation that the purchase order to Streakwave Wireless be approved. 116 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: February 15, 2019 SUBJECT: Liquor License Renewal The following establishment submitted an application to the Alcohol and Marijuana Control Office for renewal of their liquor license: • George Pitsilionis D/B/A Pizza Paradisos Pursuant to KMC 2.40, a review of City accounts has been completed on the applicant and they have satisfied all obligations to the City. With the approval of Council, a letter of non-objection to renewing of the liquor license will be forwarded to the ABC Board and the applicant. Your consideration is appreciated. 117 "Vt1/~e with a Pas; City with a Future" 210 Fidalgo Avenue, Kenai , Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 MEMORANDUM TO: FROM: DATE : RE : David Ross, Chief of Police Willie Anderson, Lands Terry Eubank, Finance Department Scott Bloom , Legal Department Elizabeth Appleby, City Planner Jamie Heinz, CMC, City Clerk February 6, 2019 Liquor License Renewal bad rmr 1992 12011 The Alcohol & Marijuana Control Office has sent notification that the following applicant has applied for renewal of their Liquor License #3032: Appli c ant: O/B/A : George Pitsilionis Pizza Paradisos Pursuant to KMC 2.40.010, it is determined to be in the public interest th at holders of or applicants for licenses issued by the Alcoholic Beverage Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review account(s) maintained by your department (i.e. water and sewer bill i ngs , lease/property payment history, citations, etc.) by the a bove refere nce applicant. Initia l whether account(s) and/or payment plan(s) are current or delinquent. If accounts are delinque nt, attach information to this memorandum indicating amounts owed and for which acc ounts . Please let me know if you have any questions. Once you have completed your section , please route to the next department. Thanks! 1. Police Department V .£.. initials cal have reviewed all record s fo r m y departm ent a nd th e applica nt Is cu rrent on obligations or obli gations do not exist. 0 Th e ap pli ca nt has outs tanding obligati ons and an additi ona l page has b een attached. 2. Finance-:ri-> initials I have reviewed all record s for my departm ent and the applicant is c urren t on obligations o r obligations do not exist. 0 Th e apRli cant has outs tanding obligations and an a dditional page has been attached . 3. Legal 4i ':> initials ~ I have reviewed all record s for my department and the app licant is c urren t on o bligations or obligations do not exist. 0 The applica nt has outstan ding obligations and an additional page h as been attached . 4~ds Management ~IA; initials bLJ I have reviewed a ll reco rds for my department and th e a ppli ca nt is c urrent on obligati ons or oblig ations do not exist. Llhe applicant has o utst an di ng obligati ons and an additi onal page has been attac hed. 5~nning and Zoning ~ initials t{J I have reviewed a ll record s for my department and th e a ppli ca nt is c urrent on obligations or obligations do not exist. Uhe applicant has outst an din g obligati ons and a n additional page has been attached . Ret urned to C lerk's office: ;;) • 12> • /t:j ~ 118 Department of Commerce, Community, and Economic Development ALCOHOL & MARIJUANA CONTROL OFFICE 550 West 7th Avenue, Suite 1600 Anchorage, AK 99501 Main: 907.269.0350 February 5, 2019 City of Kenai Attn: Jamie Heinz, City Clerk VIA Email: jheinz@kenai.city Cc: cityclerk@kenai.city joanne@borough.kenai.ak.us jblankenship@borough.kenai.ak.us tshassetz@kpb.us Re: Notice of 2019/2020 Liquor License Renewal Application License Type: Beverage Dispensary License Number: 3032 Licensee: George Pitsilionis Doing Business As: Pizza Paradisos We have received a completed renewal application for the above listed license (see attached application documents) within your jurisdiction. This is the notice required under AS 04.11.480. A local governing body may protest the approval of an application(s) pursuant to AS 04.11.480 by furnishing the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of receipt of this notice, and by allowing the applicant a reasonable opportunity to defend the application before a meeting of the local governing body, as required by 3 AAC 304.145(d). If a protest is filed, the board will deny the application unless the board finds that the protest is arbitrary, capricious, and unreasonable. To protest the application referenced above, please submit your written protest within 60 days, and show proof of service upon the applicant and proof that the applicant has had a reasonable opportunity to defend the application before a meeting of the local governing body. Sincerely, Erika McConnell, Director amco.localgovernmentonly@alaska.gov 119 Alaska Alcoholic Beverage Control Board Alcohol and Marijuana Control Office 550 W 7t1i Avenue, Suite 1600 Anchorage, AK 99501 alcohol.licensing@alaska.gov https://www.commerce.alaska.gov/web/amco Phone: 907.269.0350 Master Checklist: Renewal Liquor License Application Doing Business As: Pizza Paradisos I License Number: 13032 License Type: Beverage Dispensary Examiner: _JoH,.J I Transaction #: 1010311 Document Received Completed Notes AB-17: Renewal Application 12/31 J/3o/1~ App and License Fees 12/31 1z../31/10 Supplemental Document Received Completed Notes Tourism/Rec Site Statement AB-25: Supplier Cert (WS) AB-29: Waiver of Operation AB-30: Minimum Operation AB-33: Restaurant Affidavit COi I COC I 5 Star FP Cards & Fees I AB-08a Late Fee Names on FP Cards: Yes No Selling alcohol in response to written order (package stores)? -~15 / Mailing address and contact information different than in database (if yes, update database)? In "Good Standing" with CBPL (skip this and next question for sole proprietor)? -0 D Officers and stockholders match CBPL and database (if "No", determine if transfer necessary)? LGB 1 Response: LGB 2 Response: D Waive D Protest D Lapsed D Waive D Protest D Lapsed [Master Checklist: Renewal] (rev 09/20/2018) Pagel ofl 120 Alaska Alcoholic Beverage Control Board Alcohol and Mar ij ua na Control Office 550 W 7th Avenue, Suit e 1600 Anchorage, AK 99501 alcohol.licensi ng@alaska .gov https://www.commerce.alaska .gov/web/amco Phone : 907.269.0350 Form AB-17: 2019/2020 Renewal License Application What is this form? This rene wal license application form is r equired for all individua ls or en tities seeking to apply for r enewal of an exi sting liquor license t hat will ex pire on Dec ember 31, 2018 . All field s of this form must be complete and co r r ect , or the app licati on will be returned to you in the mann er in which it was rece ived, per AS 04 .11.270 and 3 AAC 304 .105 . The Com mu nity Cou nci l field only should be verified/completed by license es whose establishments are located w ithin t h e Municipalit y of Anc horage or o utsi d e of city limits w ithin the Matan u sk a-Su sitna Bor ough . Th is form must be completed correctly and submitted to the Alcohol & Marijuana Control Office (AMCO)'s main office, along with all other required documents and fees, before any renewal license application will be considered complete. Receipt and/or processing of renewal payments by AMCO staff neither indicates nor guarantees that an appli cation will be considered complete, or that a license will be renewed. Sec tion 1 -Establis hment and Contact Information Enter informat ion for the busi n ess see king to have its licen se renewed. If any populated infor mation is incorrect, pleas e contact AMCO . Licensee: George Pitsilionis License#: 3032 License Type : Beverage Di spen sary Legal Ref.: AS 04.11.090 Doing Business As: Pizza Paradises Premises Address : 815 Frontage Road Local Governing Body: City of Kenai (Kenai Peninsula Bo rough) Community Council: None Mailing Address: City: State: ZIP : ~I Enter infor mation for the indivi dual who w i ll be d esignated as the primary point of contact regar d ing this appl ication . Th is in dividua l must be a licensee who is req uired to be list ed in an d au t hor ized t o sign this appli cation . Contact Licensee: Contact Phone: l9~~ Contact Email : Optional: If you w ish for AMCO staff t o communicate with individ u al w ho is n ot a licensee n amed on this form (eg: legal coun sel ) about this applicat ion and other matters pertai nin g t o t h e licen se, please pr ovid e that person's contact informat ion in t he fields below . Contact Email : [Form AB -17] (rev09/17 /20 18) Page 1 of 4 DEC 3 1 2018 121 Alaska Alcoholic Beverage Control Board Form AB-17: 2019/2020 Renewal License Application Section 2 -Entity or Community Ownership Information This top subsection must be completed by any licensee that is a corporation or LLC. Corporations and LLCs are required to be in good standing with the Alaska Division of Corporations, Business & Professional Licensing (CBPL). Th is number is neither your EIN/tax ID number, nor your business license number. You may view your entity's status or find your CBPL entity number by vising the following site: https://www.commerce.alaska .gov/cbp/main/search/entities Gene ral partnerships and local governments should skip to the second ha lf of this page . Licensees who directly hold a license as an individual or individuals should skip to Section 3. I Alaska CBPL Entity #: You must ensure that you are able to certify the following statement before signing your initials in the box to the right: I certify that this entity is in good standing with CBPL and that all current entity officials and stakeholders (listed below) are also currently and accurately listed wit h CBPL. Initials D This subsection must be completed by any community or entity, including a corporation, limited liability company, partnership, or limited partnership, that is applying for renewal. If more space is needed, please attach additional comp leted copies of this page. • If the applicant is a corporation. the following information must be comp l eted for each stockholder who owns 10% or more of the stock in the corporation, and for each president, vice-president, secretary, and managing officer. • If the applicant is a limited liability organization, the following information must be completed for each member with an ownership interest of 10% or more, and for each manager. • If the applicant is a partnership, includi ng a limited partnership, the following information must be comp leted for each partner with an interest of 10% or more, and for each general partner. Important Note: The information provided in the below fields (including spelling of name s, specific t itles, and percentages held) must match that which is listed with CBPL. If one individual holds multiple titles mentioned in the bullets above, all titles must be listed for that individual on t his application and with CBPL. Failure to list all required titles constitutes an incomplete appl ication . Name of Official: Title(s): Mailing Address: City: Name of Official: Title(s): Mailing Address: City: Name of Official: Title(s): Mailing Address: City: [For m AB-17] (rev09/17/2018) License #3032 DBA Pizza Paradi sos I Phone: I I %Owned: I I State: I I ZIP: I I Phone: I j %Owned: I I State: I I ZIP: I I Phone: I I %Owned: I I State: I I ZIP: I DEC 3 1 2018 Page2of4 122 .......... ,, tf' .,, AMCO Alaska Alcoholic Beverage Control Board Form AB-17: 2019/2020 Renewal License Application Section 3 -Sole Proprietor Ownership Information This section must be completed by any licensee who directly holds the license as an individual or multiple individuals and is applying for license renewal. If more space is needed, please attach a separate sheet that includes all of the requ ired information. Entities should skip to Section 4. The following information must be completed for each lice nsee and each affiliate (spouse). This individual is an : ~licant D affiliate (spouse) Name: Contact Phone: 7-d-% '7., 2.22 Mailing Address: City: ZIP: 916 11 Email: This individual is an: D applicant D affiliate (spouse) Name: I Contact Phone: I Mailing Address: City: I State: I I ZIP: I Email: Section 4 -Alcohol Server Education This section must be completed only by the holder of a beverage dispensary, club, or pub license or conditional contractor's permit. The holders of all other license types should skip to Section 5. Read the line below, and then sign your initials In the box to the right of the statement: Initials I certify that all licensees, agents, and employees who sell or serve alcoho lic beverages or check identification of a patron lr7i] have completed an alcohol server education course approved by the ABC Board and keep curre nt, valid copies of their L_J course completion cards on the licensed premises during all working hours, as set forth in AS 04.21.025 and 3 AAC 304.465. Section 5 -License Operation Check a single box for each calendar year that best describes how this liquor license was operated: The li cen se was regularly operated continuously throughout each year. The license was regularly operated during a specific season each year. The license wa s only operated to meet the minimum requireme nt of 240 total hours each calendar year. If this box is checked, a complete copy of Form AB-30: Proof of Minimum Operation Checklist, and all necessary documentation must be provided with this application. The license was not operated at all or was not operated for at least the minimum re quirement of 240 total hours each year, during one or both of the calendar years. If this box is checked, a comple t e copy of Form AB -29: Waiver of Operation Application and corresponding fees must be submitted with this application for e ach calendar year during which the license was not operate d for at least the m inimum requirement, unless a complete copy of the form (incl uding fees) has already been submitted for that year. [Form AB-17) (rev 09/17 /2018) License #3032 OBA Pizza Paradisos DEC 3 1 2018 2017 2018 m 13 DD DD DD Page 3 of 4 123 Alaska Alcoholic Beverage Control Board Form AB-17: 2019/2020 Renewal License Application AMCO Section 6 -Violations and Convictions Applicant violations and convictions in calendar years 2017 and 2018: Have any notices of violation (NOVs) been issued to this licensee in the calendar years 2017 or 2018? Has any person or entity named in this application been convicted of a violation of Title 04, of 3 AAC 304, or a local ordinance adopted under AS 04.21 .010 in the calendar years 2017 or 2018? Yes If ''Yes" to either of the previous two questions, attach a separate page to this application listing all NOVs and/or convictions. Section 7 -Certifications No Read each line below, and then sign your initials in the box to the right of each statement: Initials I certify that all current licensees (as defined in AS 04.11.260) and affiliates have been listed on this application, and that in accordance with AS 04.11 .450, no one other than the licensee(s) has a direct or indirect financial interest in the licensed business. I certify that I have not altered the functional floor plan or reduced or expanded the area of the licensed premises, and I have not changed the business name or the ownership (including officers, managers, general partners, or stakeholders) from what is currently approved and on file w ith the Alcoholic Beverage Control Board . I certify on behalf of myself or of the organized entity that I understa nd that providing a false sta tement on this form or any other form provided by AMCO is grounds for reject ion or denial of this application or r evoc ation of any license issued. As an applicant for a liquor license renewal, I declare under penalty of perjury that I have rea d and am fami lia r with AS 04 and 3 AAC 304, and that this application, including all accompanying sched ules and statements, is t r ue, correct, and complete. I agree to provide all information required by-the Alcoholic Beverage Control Board or AMCO staff in support of this application and understand that failure to do so yd line given to me by AMCO staff w ill result in this application being returned to me as incomplete. s;gn.toce of lk s ;g~P,b l ;c Pr inted name of licensee Notary Public in and forthe State of_A'-'-\_c>.S~\::~Ct~----­ My commission expires: 1-.A \.~).ti\ / 2..oJ \ No t ary Public RYAN JOHNSEN State of Alaska Supscribed and sworn to b efor e me this \<..\{'Aday of ~le.M ~ , 20~. My Comm issio n Exp ires July 24. 202 1 ~ LJ If "Yes", write your six-month operating period:------------ License Fee: I $ 2soo.oo I Application Fee: I Miscellaneous Fees: GRAND TOTAL (if different than TOTAL): [Form AB-17) (rev 09/17 /2018) License #3032 OBA Pizza Paradises $ 300.00 I TOTAL: $ 2800.00 Page 4 of4 DEC 3 1 2018 124 Notice of Violation during year 2017 George Pitsilionis was requested to take a Server Education Course Civil Penalty Sign was missing from entrance DBA of Signage for Pizza Paradisos was missing word Pizza on front of building Improper operations of licen se was issued NOV on 1/13/17, which may be included as part of one of the Nov listed above J 0 ] 125 144 North Binkley Street, Soldotna, Alaska 99669  (907) 714-2160  (907) 714-2388 Fax Office of the Borough Clerk Johni Blankenship, MMC Borough Clerk Office of the Borough Clerk 2/6/2019 Ms. Jamie Heinz City of Kenai Kenai City Hall 210 Fidalgo Ave. Kenai, AK 99611 RE: Non-Objection of Application Dear Ms. Heinz, This serves to advise that the Kenai Peninsula Borough has reviewed the above referenced application and has no objection. Should you have any questions, or need additional information, please do not hesitate to let us know. Sincerely, Johni Blankenship, MMC Borough Clerk JB/TS Encl. cc: loriw@acsalaska.net; jheinz@kenai.city; DHenry@kpb.us; JRodgers@kpb.us Licensee/Applicant : PITSILIONIS, GEORGE Business Name : PIZZA PARADISOS License Type : Beverage Dispensary License Location : 815 Frontage Rd, City of Kenai License No. : 3032 Application Type : License Renewal 126 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Jamie Heinz, City Clerk DATE: February 15, 2019 SUBJECT: New Marijuana Product Manufacturing Facility The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a Marijuana Product Manufacturing Facility License: Applicant: Red Run Cannabis Cultivators, LLC Owner: Marc Theiler, Roger Boyd D/B/A: Red Run Cannabis Cultivators, LLC Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. A review of City accounts has been completed and the applicant has satisfied all obligations to the City. With the approval of Council, a letter of non-objection to the request for the Retail Marijuana Store License will be forwarded to the Alcoholic & Marijuana Control Office and the applicant. Your consideration is appreciated. Attachments 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 127 "Vt11tqe with a Past, City with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 I FAX: 907-283-3014 MEMORANDUM TO : FROM: DATE: RE : David Ross, Police Chief Terry Eubank, Finance Department Scott Bloom, Legal Department Willie Anderson, Lands Management Elizabeth Appleby, City Planner Jamie Heinz, City Clerk January 29, 2019 Marijuana Product Manufacturing Facility ~ -Cir ,1111.' 1992 The Alcoholic & Marijuana Control Office has sent notification that the following applicant has requested a new license: Applicant: Owners: D/B/A: Red Run Cannabis Cultivators, LLC Marc Theiler, Roger Boyd Red Run Cannabis Cultivators, LLC Pursuant to KMC 2.40.010, It is determined to be in the public interest that holders of or applicants for licenses issued by the Alcoholic Beverage Control Board or the Marijuana Control Board of the State of Alaska shall have all obligations to the City of Kenai on a satisfactory basis prior to the City Council approval of any activity of said license holder or applicant. Please review records maintained by your department (i.e. water and sewer billings, lease/property payment history, citations, etc.) by the above reference applicant and advise if obligations have been met. Mark the appropriate box below. If obligations have not been met, attach information to this . memorandum indicating what obligations are outstanding and how the obligations can be cured. Please let me know if you have any questions. Thanks. 1. Police Department 1?-e initials G3fhave reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The applicant has outstanding obligations and an additional page has been attached . 2. Finance ";f -. > initials '0 I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist 0 The applicant has outstanding obligations and an additional page has been attached. 3. Legal ~ n. initials 0 I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. 0 The applicant has outstanding obligations and an additional page has been attached. 4~ds Management ~initials lYJ I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe applicant has outa-\ng obl igations and an additional page has been attached. 5. Planning and Zoning initials llJ I have reviewed all records for my department and the applicant is current on obligations or obligations do not exist. Orhe applicant has outstanding obligatio~and an additional page has been attached . Returned to Clerk's office: a . /t>· /"?/ r 128 Department of Commerce, Community, and Economic Development GOVERNOR MICHAEi 1 DLINLEA\l' January 28, 2019 City of Kenai Attn: Jamie Heinz Via Email : jheinz@kenai.city Kenai Peninsula Borough Attn: Borough Clerk Via Email: jblankenship@kpb.us micheleturner@kpb.us tshassetz@kpb.us License Number: 19372 License Type: Marijuana Product Manufacturing Facility Licensee: Red Run Cannabis Cultivators, LLC Doing Business As: RED RUN CANNABIS CULTIVATORS , LLC Physical Address: 12516 Kenai Spur Hwy Suite A Kenai , AK 99611 Designated Licensee: Marc Theiler Phone Number: 907-953-9453 Email Address : marc@redruncannabiscompany.com 181 New Application ALCOHOL & MARIJUANA CONTROL OFFICE 550 Wes t 7•h Aven u e, Su ite 1600 Anchorage, AK 99501 Main: 907.269.0350 AMCO has received a completed application fo r the above listed license (see attached application documents) within your ju r isdiction . This is the notice required under 3 AAC 306.025(d){2). To protest the approval of this application(s) pursuant to 3 AAC 306 .060, you must furnish the director and the applicant with a clear and concise written statement of reasons for the protest within 60 days of the date of this notice, and provide AMCO proof of service of the protest upon the applicant. 3 AAC 306.010, 3 AAC 306 .080, and 3 AAC 306.250 provide that the board will deny an application for a new license if the board finds that the license is prohibited under AS 17 .38 as a result of an ordinance or election conducted under AS 17.38 and 3 AAC 306.200, or when a local government protests an application on the grounds that the proposed licensed premises are located in a place within the local government where a local zoning ordinance prohibits the marijuana establishment, unless the local government has approved a variance from the local ordinance . This application will be in front of the Marijuana Control Board at our February 20-22, 2019 meeting. Sincerely, 129 Department of Commerce, Community, & Economic Development Alcohol & Marijuana Control Office License Number: 19372 License Status: New License #19372 Initiating License Application 1/1412019 8:48:16 AM License Type: Marijuana Product Manufacturing Facility Doing Business As: RED RUN CANNABIS CULTIVATORS , LLC Business License Number: 1032376 Designated Licensee: Marc Theiler Email Address: marc@redruncannabiscompany.com Local Government: Kenai (City of) Community Council: Latitude, Longitude: 60.561105 , -151.287650 Physical Address: 12516 Kenai Spur Hwy Suite A Licensee #1 Type: Entity Alaska Entity Number: 10035361 Alaska Entity Name: Red Run Cannabis Cultivators, L LC Phone Number: 907-953-9453 Email Address: marc@redruncannabiscompany. com Mailing Address : 5455 Kenai Spur Hwy Kenai , AK 99611 UNITED STATES Entity Official #2 Type: Individual Name: Roger Boyd ----Phone Number: 907-398-7848 Email Address: roger@redruncannabiscompany. com Mailing Address: 37095 K Beach Rd Kenai, AK 99611 UNITED STATES Kenai , AK 99611 UNITED STATES Entity Official #1 Type: Individual Name: Marc Theiler ----Phone Number: 907-953-9453 Email Address: marc@redruncannab iscompany. com Mailing Address: 5455 Kenai Spur Hwy Kenai , AK 99611 UNITED STATES Note: No affiliates entered for this license . 130 Alaska Marijuana Control Board Alcohol and Marijuana Control Office 550 W 71h Avenue, Suite 1600 Anchorage, AK 99501 mar!juana.l icensing@alasl<a .gov https://www.co mmerce.alaska .gov/web /amco Phone 907.269.0350 Form MJ -01: Marijuana Establishment Operating Plan What ls this form? An operating plan is required for all marijuana establishment license applications. Applicants should review Title 17.38 of Alaska Statutes and Chapter 306 of the Alaska Administrative Code . This form wlll be used to document how an applicant intends to meet the requirements of those statutes and regulations. If your business has a formal operating plan, you may include a copy of that operating plan with your application, but all fields of this form must still be completed per 3 AAC 306.020(c). What must be covered In an operating plan? Applicants must identify how the proposed premises will comply with applicable statutes and regulations regarding the following: • Control plan for persons under the age of 21 • Security • Business records • Inventory tracking of all marijuana and marijuana product on the premises • Employee qualification and training • Health and safety standards • Transportation and delivery of marijuana and marijuana products • Slgnage and advertising Applicants must also complete the corresponding operating plan supplemental forms (Form MJ.<13, Form MJ-04 , Form MJ-05, or Form MJ·D6) to meet the additional operating plan requirements for each license type . Section 1 -Establishment & Contact Information E t . f r t th b 1 k' t b r d "d lfi d h Ii r n er m orma ion or e us ness see mg o e 1cense , as 1 ent 1e on t e cense app 1cat1on. Licensee: Red Run Cannabis Cultivators, LLC I MJ License#: 119372 License Type: Marijuana Product Manufacturing Facility Doing Business As: Red Run Cannabis Cultivators , LLC Premises Address: 12516 Kenai Spur Hwy, Suite A Oty: Kenai I State: I Alaska I ZIP: J 9 9611 Mailing Addre$s: 5455 Kenai Spur Hwy City: Kenai I State: I Alaska I ZIP: I 99611 Designated Licensee: Marc Theiler Main Phone: (907) 28.3-0800 I Cell Phone: I (901) ss3-94s3 Email: marc@redruncannabiscompany.com [Form MJ-011l re v12/01/2017 ) Received by AMCO 10 .~~~f u 131 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan Section 2 -Control Plan for Persons Under the Age of 21 2.1. Describe how the marijuana establishment will prevent persons under the age of 21 from gaining access to any portion of the licensed premises and marijuana items: Red Run will insist each employee follow the letter of the law: 1. Each exterior access/entry point will remain closed and secure , unless an employee, vendor or visitor are entering or exiting the licensed facility. 2. Each exter ior access/entry point will be secured with a commercial grade , non-residential door lock. 3. Each Restricted Access Area will be secured with a lock and a key will only be given to those employees with enhanced (Level 11) security clearance. 4. Each entrance to a Restricted Access Area will be clearly marked by a sign that reads "Restricted Access Area . Visitors must be escorted ." 5 . The number of visitors on-site will be restricted to not more than five visitors and shall be supervised by an employee with enhanced (Level II) security clearance at all times. The supervising employee will wear a current identification badge, bearing his/her photograph and their level of security clearance . 6. A continuous surveillance video camera will be mounted in such a way as to cover each Restricted Access Area and each exterior access/entry point. Admission to the Restricted Access Area is described in the following section , below. Section 3 -Security Restricted Access Areas (3 AAC 306.710): 3.1. Describe how you will prevent unescorted members of the public from entering restricted access areas: 1. Each entrance to a Restricted Access Area will be clearly marked by a sign that reads "Restricted Access Area . Visitors must be escorted ." 2. Each exterior access/entry point will remain closed and secure , unless an employee , vendor or visitor are entering or exiting the licensed facility . 3. Each visitor before entering any Restricted Access Area must be 21 years of age or older and will be required to present valid , legal identification . 4 . Identification will be checked by a Red Run employee before the visitor is allowed to enter the licensed facility or any Restricted Access Area , the visitor's information is then entered into our company's Visitor Log . 5. After the visitor has been validated and their information entered into the company Visitor Log , a visitor identification badge will be issued . The visitor identification badge will hang mid-way down the visitor's chest by a lanyard or will be clipped to outer clothing and will remain there clearly visible throughout the extend of his/her visit. 6. Each visitor will be escorted at all times by an employee with enhanced (Level II) security clearance. At no time will the visitor be left unattended . 7. After each visit , the visitor will turn in their identification badge to the escorting-employee and the escorting-employee will log the visitor out and register the exiting details into the company's Visitor Log , including the date and time of exit as well as each Restricted Access Area visited . 3 .2. Describe your recordkeeping and processes for admitting visitors into and escorting them through restricted access areas: We developed our own cloud-based web dashboard which embeds a form application populated with critical fields that will be answered by the supervising employee after obtaining critical information from the visitor. These fields will include: First name , Last name , Date and time of visit (in/out), valid l.D. number, reason for visit , name of supervising employee , and temporary l.D . number. The form is connected to a Google Sheet -"Visitor Log (Responses) -which collects and stores the field-responses entered by the supervising employee. Each record-response is stored within the cloud-based Google Sheet and can be easily shared with appropriate authorities . In addition, we will be keeping a hard-copy Visitor Log that will remain at our facility's. main entry/access point. Every visitor will enter their critical information into the hard-copy Visitor Log before entering the licensed facility or any Restricted Access Area . After the visitor has been validated and their information entered into the company Visitor Log , a visitor identification badge will be issued. The visitor identification badge will hang mid-way down the visitor's chest by a lanyard or will be clipped to outer clothing and will remain there clearly visible throughout the extend of his/her visit. Each visitor will be escorted at all times by an employee with enhanced (Level II) security clearance. At no time will any visitor be left unattended. After each visit, the visitor will turn in their identification badge to the escorting-employee and the escorting-employee will log the visitor out and register the exiting details into the company's Visitor Log , including the date and time of exit as well as each Restricted Access Area visited. · [Form MJ-01) (rev 12/01/2017) License# 19372 Received by AMCO 1 .24. f~e 2of11 132 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan 3.3. Provide samples of licensee-produced Identification badges that will be displayed by each licensee, employee, or agent while on the premises, and of visitor identification badges that will be worn by all visitors while In restricted access areas: Melissa Martin Permit #10926 s ecurity Level -2 .. Security Alarm Systems and Lock Standards (3 AAC 306.7151: VISITOR 3.4. Exterior lighting ls required to facllltate surveillance. Describe how the exterior lighting will meet this requirement: The front of the building has several evenly-spaced, exterior lighting units, which will illuminate the front-exterior of the building, including the facade, front entry ways, windows and a large portion of the immediate-facing parking lot. Each side of the building will host exterior lighting (front and back) and will clearly illuminate the side-aspects of the building. These lights will be triggered by a dawn/dusk sensor which will immediately illuminate their perspective field(s) depending upon time of day and availability of light. In addition, all exterior points of entry (doors & windows) will be equipped with exterior lights sufficient to clearly illuminate the point of entry (and thus anyone entering or exiting). The exterior lighting is automated by schedule and/or a dawn/dusk sensor. [Form MHl1) (rev 12/01/2017) Ucense# 19372 Page 3 ofll Received by AMCO 10.16.18 133 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan 3.5 . An alarm system is r equired for all license types that must be activated on all exterior doors and windows when the licensed premises is closed for business. Describe the security alarm system for the proposed premises, explain how it will meet all regulatory requirements, and outline your policles and procedures regarding the actions to be taken by a lkensee, employee, or agent when the alarm system alerts of an unauthorized breach: We will be using a Honeywell security system. The Honeywell security system is a state-of-the-art security system that enjoys comprehensive detection and reporting capabilities. In addition to motion sensors -the system utilizes open/close door sensors, fire sensors and a high-decibel siren . The system has a centralized reporting/notification function that reports any security breach to the proper authorities as well as to Red Run management. Each exterior access point will be equipped with an integrated , commercial-grade door lock. Each interior room will be equipped with a motion sensor. A keypad for enabling and disabling the Honeywell security system will be located within a short distance of the facilities' primary entry point. Each exterior door and window access point(s) will be equipped with appropriate motion sensors which integrate into the overall security system. Any time the premise is closed for business, these sensors will arm and will become active. As a matter of redundancy, each exterior door/access point will be equipped with an open/close sensor. The security system will notify the City of Kenai police, Alaska State Troopers and each owner of Red Run . After notification, at least one owner will immediately proceed to location and investigate the breach. Depending on the nature of the infraction, the owner will work with law enforcement to further investigate the nature of the unauthorized breach. If an unauthorized breach of any kind has been determined, an owner/manager from Red Run will immediately notify AMCO enforcement with all critical details. -R.., "°' dt-•de• Codo ol f.WCll Cendlld, oo • Piil of lholr llMi~ -........... ..a ........ ...i.n&.nd ond c:ooAmt i>, ~· tt.tl!My wll obey Md otido bt Re4 R""' Ccdo ol£lhlcol CandllCl Rod R"" ......,_ .. i...-OlfOdkelt on ,_IOP-'!ldtfttlfyl-21 ,_,, •nd olllo r ..,howlO-lyondp-_ _,l>UldMtNrtllldlonol_.,,, .... -.-loil•ln; lldl.....,..,.....,ll •loctbe nlnod.., .. h-.0 °'""- wllllan...S.,. p-olocolo .._lo _,,.,,,., HClt.-r isGYor Ille flOO ol21 loOotd ltCottoo ........,·.-1.cg Ollll lt wmtoclot ol - A tlgn dldari~. 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In order to combat individuals lingering in the parking lot, our establishment will post highly visible signs that clearly prohibit any unreasonable loitering. Should a customer loiter on-premise for any unreasonable time frame, our employees are instructed to politely ask ttiem to leave, and if necessary have a manager escort them off the premises. You must be able to certify the statement below. Read the following and then sign your initials in the box to the right: 3 .8. t certify that if any additional security devices are used, such as a motion detector, pressure switch, and duress, panic, or hold·up alarm, to enhance security of the licensed premises, I will have written polkles and procedures describing their use. Initials [Form MJ.011 lrev 12/01/2017} Ucense# 19372 Page4of11 Received by AMCO 10.16.18 134 ,0''0'·~,, I k I d :l ~ A as a Marijuana Contro Boar AMCO .-,,,,..,..,..," Form MJ -0 1 : M arij uana Est a blishment Operating Plan (Additional Space as Needed): 3 .6 Describe your policies and procedures for preventing diversion of marijuana or marijuana product, including by employees: Red Run has drafted a clear Code of Ethical Conduct, as a part of their tra i ning each employee will review , understand and confirm by signature that they will obey and abide by Red Run's Code of Ethical Conduct. Red Run employees will be trained specifically on preventing diversion by learning and applying the critical steps necessary to properly identify individuals 21 years and older. A sign declaring, "No one under 21 years of age allowed!" will be posted at each access point where Cannabis is sold , stored or p rocessed . Employees will be trained on the protocols necessary to ensure that no individual under the age of 21 is ever allowed into these Restricted Access Areas. In addition , Red Run will ensure that its security system is sound and operational and that secu rity protocols are followed by all staff so that if there ever is a concern or event, the investigating authorities will be able to review appropriate video footage. Red Run has a zero tolerance policy for division . Management and staff will utilize dail y/n ightly inventory audits as a means to verify Metre inventory figures for both pre-processed Cannabis material and post-processed Cannabis products. Each week's inventory audits are reviewed fo r any remarkable patterns of inconsistencies. If these inconsistencies appear remarkable , Red Run will conduct a formal in-house investigation . If the findings from an in-house investigation revel any potential material/product diversion, Red Run will immediately notify AMCO and report its findings clearly and thoroughly. If staff at Red Run suspect diversion for any reason , an investigation will be conducted and AMCO w ill be immediately notified if the findings revel potential material/product diversion. Red Run staff will be well trained in Metrc's inventory tracking system and wil l strictly utilize its functions in a manner that consistently maintains and realizes actual inventory weights and measures. Staff will also ensure that all Cannabis material and products are stored and secured in a manner consistent with (3 AAC 306 . 710). Cannab is waste disposal protocols will also be strictly followed and enforced (3 AAC 306.740), no amount of Cannabis in any form or fashion will be disposed of without first rendering it unusable. [Form MJ-01) (rev 12/01/2017) License# 19372 Received by AMCO 1 .24.fQe ll ot u 135 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan Video Surveillance (3 AAC 306.720): You must be able to certify each statement below. Read the following and then sign your initials in the corresponding bo1<: 3.9. The video surveillance and camera recording system for the licensed premises covers each restricted access area, and both the Interior and exterior of each entrance to the facility. 3.10. Each video surveillance recording: Is preserved for a minimum of 40 days, In a format that can be easily accessed for viewing (consistent with the Alcohol & Marijuana Control Office's approved format list}; clearly and accurately displays the time and date; and Is archived in a format that does not permit alteration of the recorded Image . 3.11. The surveillance room or area Is clearly defined on the Form MJ-02: Premises Diagram that Is submitted with this application. 3.12. Survelllance recording equipment and video surveillance records are housed In a designated, locked, and secure area or In a lock box, cabinet, closet or other secure area where access ls limited to the llcensee(s), an authorized employee, and law enforcement personnel (Including an agent of the Marijuana Control Board). Initials 3.13. Describe how the video cameras will be placed to produce a clear view adequate to Identify any Individual Inside the licensed 11remlses, or within 20 feet of each entrance to the licensed premises: A video camera, a bullet -style 5meg 1080P fixed lens mini bullet camera , will be fixed to the exterior of the building along the facade • pointed directly at each exterior entry way and into the greater parking lot area, fixed and located no further than 1 Oft away from each exterior access point. Exterior lighting across the building's exterior facade will assist in providing sufficient enough light for the camera to reso lve a clear enough view to identify any individual attempting to enter the premises. In addition, each camera is equipped with night-vision IR capabilities . A video camera, a dome-style 5meg 1 OBOP fixed lens dome camera, will be fixed to the ceiling and/or wall in each interior room, including hallways -pointed direct ly at each interior entry point. Interior lighting is triggered by motion sensors in each interior room, triggered interior lighting will assist in providing sufficient enough light for the camera to resolve a clear enough view to identify any individual inside the licensed premises. In addition, each camera is equipped with night-vision IR capabilities. 3.14. Describe the locked and secure area where video surveillance recording equipment and original copies of surveillance records will be housed and stored, and how you will ensure the area Is accessible only to authorized personnel, law enforcement, or an agent of the Marijuana Control Board. If you will be using an offsite monitoring service and offsite storage of video surveillance records, your response must Include how the offslte facility will meet these security requirements: Our facility will have a highly secured office area that will house and store our video surveillance recording equipment. In addition, all video surveillance recording equipment is secured within an enclosed, locked rack-case . Surveillance recording equipment access will be limited to owners, authorized employees and to law enforcement (including AMCO). The secured room will be equipped with a commercial-grade door and keys will only be provided to employees with enhanced security clearance (Level II). Other authorized law enforcement or agents of AMCO will be granted immediate access upon request. [Form MJ-01) (rev 12/01/2017) Ucense# 19372 PageSofll Received by AMCO 10.16.18 136 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan Section 4 -Business Records Review the requirements under 3 AAC 306 .755 . AU licensed marijuana establishments must maintain, in a format that is readily understood by a reasonably prudent business person, certain business records . 4.1 . I certify that the following business records will be maintained and kept on the licensed premises: a. all books and records necessary to fully account for each business transaction conducted under my license for the current year and three preceding calendar years (records for the last siK months must be maintained on the licensed premises; older records may be archived on or off-premises); b. a current employee list setting out the full name and marijuana handler permit number of each licensee, employee, and agent who works at the marijuana establishment; c. the business contact information for vendors that maintain video surveillance systems and security alarm systems for the licensed premises; d. records related to advertising and marketing; e. a current diagram of the licensed premises, Including each restricted access area; f . a log recording the name, and date and time of entry of each visitor permitted into a restricted access area; g. all records normally retained for tax purposes; h. accurate and comprehensive Inventory tracking records that account for all marijuana Inventory activity from seed or immature plant stage until the retail marijuana or retail marijuana product is sold to a consumer, to another marijuana establishment, or destroyed; I. transportation records for marijuana and marijuana product, as required by 3 AAC 306.7SO(f); and j. registrati on and Inspection reports of scales registered under the Weights and Measures Act, as required by 3 AAC 306.745. Initials 4.2. A marijuana establishment is required to exercise due diligence In preserving and maintaining all required records. Describe how you will prevent records and data, Including electronically maintained records, from being lost or destroyed: Our establishment will be utilizing Google Drive as a cloud-based , secured file storage application . Google Drive allows for highly secure and accessible, cloud-based record keeping and data preserving . All pertinent records and data, including electron ic and hard-copy records will be scanned and stored to our Google Drive account. In addition, our facility will be equipped with a restricted, locked office space that will also house hard-copy records . [Form MJ~l) (rev 12/01/2017) Ucense# 19372 Page6ofll Received by AMCO 10.16 .18 137 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan Section 5 -Inventory Tracking of All Marijuana and Marijuana Product Review the requirements under 3 AAC 306.730. All licensed marijuana establishments must use a marijuana inventory tracking system capable of sharing information with Metre to ensure all marijuana cultivated and sold in the state, and each marijuana product processed and sold in the state, is identified and tracked from the time the marijuana is propagated from seed or cutting, through transfer to another licensed marijuana establishment, or use in manufacturing a marijuana product, to a completed sale of marijuana or marijuana product, or disposal of the harvest batch of marijuana or production lot of marijuana product. You must be able to certify each statement below. Read the following and then sign your initials in the corresponding box: 5.1. My marijuana establishment will be using Metre, and If any othet tracking software ls used, It will be capable of sharing Information with Metre. 5.2. All marijuana delivered to a marijuana establishment will be weighed on a scale registered In compliance with 3 AAC 306.745. 5.3. My marijuana establishment will use registered scales in compliance with AS 45.75.080 (Weights and Measures Act), as required by 3 AAC 306.745. Section 6 -Employee Qualification and Training Initials Review the requirements under 3 AAC 306. 700. A marijuana establishment and each licensee, employee, or agent of the marijuana establishment who sells, cultivates, manufactures, tests, or transports marijuana or a marijuana product, or who checks the identification of a consumer or visitor, must obtain a marijuana handler permit from the board before being licensed or beginning employment at a marijuana establishment. You must be able to certify each statement below. Read the following and then sign your Initials in the corresponding box: 6 .1. Each licensee, employee, or agent of the marijuana establishment who sells, cultivates, manufactures, tests, or transports marijuana or marijuana product, or who checks the identification of a consumer or visitor, shall obtain a marijuana handler permit from the board before being licensed or beginning employment at the marijuana establishment. 6.2. Each licensee, employee, or agent who Is required to have a marijuana handler permit shall keep that person's marijuana handler permit card In that person's Immediate possession (or a valid copy on file on the licensed premises) when on the licensed premises. 6.3. Each licensee, employee, or agent who Is required to have a marijuana handler permit shall ensure that that person's marijuana handler permit card Is valid and has not expired. 6.4. Describe any in·house training that will be provided to employees and agents {apart from a marijuana handler course): Initials Based on a Job Application , managers will saeen employees ror verification or age and a background check :oolling tor convictlons tor any or tile rollowing felonies , OUls , alcohol· or drug.related offenses violence against a person crimes ot dishonesty. crimes Involving weapons . Further , Marijuana Handler's Perm~ certiftcates ol completion wm be required Prolessfonal appearance and good hygiene W111 be mandatory During training employees and managers will learn and integrate an relevant regulalions and statutes New employees must sign Acknowledgment or Responsibilities that each ha s ( 1) read the relevant regulations and statutes in their Employee Handbook (2) agreed to honor lhel r Code ot Ethical Conduct, (3) agreed ta report any criminal conviction(s) during their employment (4) agreed to cooperale n any inspecti on conducted by AMCO or its agent; (5) agreed to check pholl>-1 D lor 100% ot transactions , and (6) agreed not to sell to anyone under 21 years or age or who Is intoxicated on alcohol or controlled substances. Employee& will be iralned in the recognition and detection or Pro!(Y Purtllasers and ntoxlcated customers (alcohol and eannab s) There wi I be strict enforcement of Section 355 per.purchase weight llmlts and Section 310 ·no lree samples· regulation Red Run will document a I training hours. counseling and feedback positive wOlk performance and correetlve actions taken (consultation and discipline) Red Run will implement a No-Retaliation Rule Reporting in good faah any co-employee or manager for misconduct inciud ng a statute or regu laUon violation, will not resull in a negative employmenl action agai nst the Reporter Employees will be taught to reler all complaints from a consumer. or community member, lo a manager Employees will be trained to notice and identify any potential loitering on premises Each employee will also be trained in applicable public health , fire , sarety codes and ordinances of the state and the local government [Form MJ-011(rev12/01/20171 Ucense# 19372 Page7ofll Received by AMCO 10 .16.18 138 Alaska Marijuana Control Board Form MJ -01: Marijuana Establishment Operating Plan Section 7 -Health and Safety Standards Review the requirements under 3 AAC 306. 735. You must be able to certify each statement below. Read the following and then sign your initials in the corresponding box: 7.1 . I understand that a marijuana establishment Is subject to Inspection by the local fire department, building Inspector, or code enforcement officer to confirm that health or safety concerns are not present . 7.2. I have policies regard ing health and safety standards (Including: ensuring a person with an illness or Infection does not come into contact with marijuana or marijuana product; good hygienk practices; cleaning and maintenance of equipment and the premises; pest deterrence; chemical storage; sanitation principles; and proper handling of marijuana and marijuana product) and will take all reasonable measures and precautions to ensure that they are met or exceeded . 7.3. I have policies to ensure that any marijuana or marijuana product that has been stored beyond Its usable life, or was stored improperly, Is not salvaged and retumed to the marketplace . 7.4.1 have policies to ensure that In the event Information about the age or storage conditions of marijuana or marijuana product Is unreliable, the marijuana or marijuana product will be handled In accordance with 3 AAC 306.735(d). Answer "Yes" or "No" to each of the following questions: Yes Initials No 7.5. Adequate and readily accessible toilet facilities that are maintained and in good repair and sanitary condition are clearly Indicated on my Form MJ-02: Premises Diagram. 7 .6. Convenient handwashlng facilities with running water at a su i table temperature are clearly Indicated on my Form MJ -02: Premises Diagram . D WO 7.7. If you answered "No" to either 7.5 or 7.6 above, describe how toilet and/or handwashlng facilities are made accessible, as rulred by 3 MC 306.735jbl!2): Section 8 -Transportation and Delivery of Marijuana and Marijuana Products Review the requirements under 3 AAC 306 . 750. 8.1. Describe how marijuana or marijuana product will be prepared, packaged, and secured for shipment. Include a description of the type of locked, safe, and secure storage compartments to be used In vehicles transporting marijuana or marijuana product: See Page 11 of11 (8 .1). [Form MJ-01] (rev 12/01/2017) Ucense# 19372 Page8of11 Rece ived by AMCO 10.16 .18 139 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan (Additional Space as Needed): 8.1 . Describe how marijuana or marijuana product will be prepared, packaged, and secured for shipment. Include a description of the type of locked , safe , and secure storage compartments to be used in vehicles transporting marijuana or marijuana product: Pursuant to 3 AAC 306 . 750, Red Run will prepare marijuana or marijuana product for transport or transfer to another marijuana establishment by: (1) placing packaged marijuana or marijuana product within a sealed, tamper-evident shipping container; (2) affixing a label in compliance with Alaska law [3 AAC 306.470] to the shipping container; and, (3) generating a transport manifest from the marijuana cultivation facility's marijuana inventory system . (NOTE: the transport manifest will remain with the marijuana at all times while being transported and a copy will be given to the licensed marijuana establishment that receives the shipment.) Any individual transporting marijuana in compliance with this section will have a marijuana handler permit. Pursuant to 3 AAC 306 .750, when any marijuana or marijuana product is transported, Red Run will use Metre, the State's sanctioned marijuana tracking system, to record the type, amount and weight of marijuana or marijuana product being transported, the name of the transporter, the time of departure and expected delivery, and the make, model and license plate number of the transporting vehicle . A complete , printed Metre transport manifest will be kept with the marijuana or marijuana product at all times. Pursuant to 3 AAC 306.510, Red Run will not package, manufacture or sell any marijuana product that is an adulterated food or drink; closely resembles a familiar food or drink item including candy; or is packaged to look like candy, or in bright colors or with cartoon characters or other pictures or images that would appeal to children. When Red Run packages its manufactured products for a retail marijuana store to sell to a consumer, the packaging will be designed/constructed in compliance with federal law (16 U.S.C. 1700+ known as the Poison Prevention Packaging Act], with the goal that it be significantly difficult for children under five years of age to open, while being not normally difficult for adults to use properly as defined by federal regulation [16 C.F .R. 1700.20]. Pursuant to 3 AAC 306. 750, during transport -any marijuana or marijuana product will be placed in a sealed package or container and then placed into an enclosed, secure storage compartment located inside the vehicle transporting the marijuana or marijuana product. The sealed package will not be opened during transport. By contract, the vehicle transporting marijuana or marijuana product must travel directly from the shipping marijuana establishment to the receiving marijuana establishment, and must not make any unnecessary stops in between except to deliver or pick up marijuana or marijuana product at any other licensed marijuana establishment. (Form MJ-01] (rev 12/01/2017) Ucense# 19372 Pagell ofll Received by AMCO 10.16.18 140 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan Vou must be able t o certify ea ch st ate m ent belo w. Read the follow ing and then sign your initials In the correspondin g box: 8.2 . The marijuana establishment from which a shipment of marijuana or marijuana product originates wtll ensure that any Individual transporting marijuana shall have a marijuana handler permit required under 3 AAC 306.700. 8.3. The marijuana establishment that originates the transport of any marijuana or marijuana product wtll use the marijuana Inventory tracking system to record the type, amount, and weight of marijuana or marijuana product being transported, the name of the transporter, the time of departure and expected delivery, and the make, model, and license plate number of the transporting vehicle . 8.4 . The marijuana establishment that originates the transport of any marijuana or marijuana product wlll ensure that a complete printed transport manifest on a form prescribed by the board must be kept with the marijuana or marijuana product at all times during transport. 8 .5. During transport, any marijuana or marijuana product wllt be In a sealed package or container In a locked, safe, and secure storage compartment In the vehicle transporting the marijuana or marijuana product, and the sealed package will not be opened during transport. 8.6. Any vehicle transporting marijuana or marijuana product wlll travel directly from the shipping marijuana establishment to the receiving marijuana establishment, and wlll not make any unnecessary stops In between except to deliver or pick up marijuana or marijuana product at any other licensed marijuana establishment. 8.7. When the marijuana establishment receives marijuana or marijuana product from another licensed marijuana establishment, the recipient of the shipment will use the marijuana Inventory tracking system to report the type, amount, and weight of marijuana or marijuana product received . 8.8. The marijuana establishment will refuse to accept any shipment of marijuana or marijuana product that Is not accompanied by the transport manifest. Section 9 -Signage and Advertising Initials 9.1. Describe any signs that you Intend to post on your establishment with your business name, Including quantity, dimensions, lraphlcs, and location on your establishment (photos or drawings may be attached): We will attach a small 2"x2" sign to the building, located at the facility's front door entry-point. The sign will only have our business name and our "RR" brand-mark . There will be no other signs. (Form MJ-01) lrev 12/01/20171 Ucense # 19372 Pa ge 9of11 Received by AMCO 10 .16 .18 141 Alaska Marijuana Control Board Form MJ-01: Marijuana Establishment Operating Plan 9.2. Describe any advertising you intend to distribute of your establishment. Include medium types and business logos (photos or drawings may be attached): This question is difficult to answer since marketing mediums, content and channels change so rapidly. Red Run plans on using basic advertising mediums, including hard-copy print (magazine, flyers , sales pamphlets, banners), radio advertising and cyber-social mediums (website, Facebook, lnstagram, Twitter). I declare under penalty of unsworn falsification that this form, including all accompanying schedules and statements, is true, correct, and complete. ~~~~\IWff~~ ~ g~~~~~~ ~~~-"""'~~---~---~-----------------si~ !~ ~\ Signature of lice nsee ~ ! NOTARY : No ry Public nd for the State of Alaska M Th ·1 ~ \ pUBLIC 1,..g ~ arc 91 er ~Jf.~~ ... ~to,~4'.~ Mycommission expires : ~/(4'Z?f7 Printed name of l icensee ~i'!f .. of"·~'\~ c/ [Form MJ-011lrev12/01/20171 ~b/111n11UI\\\\\\~~ /: _ I . I "') Subscribed and sworn to before me this _ik day of t[..!l'Jf//qr . 20.J.l_. License# 19372 Page10of11 Rece ived by AMCO 10.16.18 142 Alaska Marijuana Control Board Form MJ-02: Premises Diagram Alcohol and Marijuana Control Office 550 W 71h Avenue, Suite 1600 Anchorage, AK 99501 marljuana.licensing@alaska.gov https .ljwww.commerce.alaska .gov/web/amco Phone: 907.2 69.0350 What Is t his form 1 A detailed diagram of the proposed licensed premises is requ i red for all marijuana establishment license app licat ions, per 3 AAC 306.020(b)(8). All areas designated as the licensed premises of a single license must be contiguous. What must be submitted with this form? Applicants must attach multiple diagrams to thi s form, includi ng (as applicable I: • Diagram 1: a diagram showing only the licensed premises areas that will be ready to be operational at the time of your preliminary inspection and license issuance: • Diagram 2: if different than Diagram 1, a diagram outlining all areas for which the licensee has legal right of possession (a valid lease or deed), and clearly showing those areas' relationship to the current proposed licensed premises (details of any planned expansion areas do not need ta be included; a complete copy of Form MJ-14 : Licensed Premises Diagram Change must be submitted and approved before any planned expansion area may be added to the licensed premises); • Diagram3: a site plan or as·built of the entire lot , showing all structures on the property and clearly indicating which area(s) w ill be part of the licensed premise.s; • Dlagram4: an aerial photo of the entire lot and surrounding lots, showing a view of the entire property and surround ing properties, and clearly indi cating which area(s) wfll be part of the licen sed premis es (this can be obtained from sources like Google Earth); and • Diagram 5: a diagram of the entire building In which the licensed premises is located, clea rly distinguishing the licensed premises from unlicensed areas and/or premis es of other licenses within the building . If your proposed l icensed premises is located within a building or building complex that contains multiple business and/or tenants, please provide the addresses and/or suite n umbers of the other businesses and/or tenants (a separate diagram is not requ ired for on establishment that is designating the entire building as a single licensed premises). This form, and all necessary diagrams that meet the requirements on Page 2 of this form, must be completed and submitted to AMCO's main office before any new or transfer license application will be considered complete. Section 1 -Establishment Information Enter in orma tion f h b ort e d 'd 'fi d th r r k b I usiness see ing to e icense , as 1 ent1 1e on · e 1cense app 1cation. Li censee: License Type: Doing Busin ess As: Premi ses Address: City: [Form MJ -OZ ) {rev 01/10/2018) Red Run Cannabis Cultivators, LLC I MJ Li cense#: I 19372 Marijuana Product Manufacturing Facility Red Run Cannabis Cultivators, LLC 12516 Kenai Spur Hwy, Suite A Kenai I State: I Alaska I ZIP : 199611 Page 1of2 Received by AMCO 10.16.18 143 ~·'+· fl A~co.,., Alaska Marijuana Control Board ; .. ~ Form MJ-02: Premises Diagram Section 2 -Required Information ' For your security, do not in dude locations of security cameras, motion detectors, panic buttons, and other security devlc:es. The following details must be included in all diagrams: 0 License number and OBA 0 Legend or key 0 Color coding 0 Dimensions 0 Labels 0 True north arrow The following additional details must be induded in Diagram 1: 0 Surveillance room 0 Restricted access areas 0 Storage areas 0 Entrances, exits, and windows 0 Walls, partitions, and counters 0 Any other areas that must be labeled for specific license types The following additional details must be included in Diagram 2: 0 Areas of ingress and egress 0 Entrances and exits 0 Walls and partitions The following additional details must be included In Diagrams 3 and 4: 0 Areas of Ingress and egress 0 Cross streets and points of reference The following additional details must be included in Diagram S: 0 Areas of ingress and egress 0 Entrances and exits 0 Walls and partitions 0 Cross streets and points of reference Signature of licensee Marc Theiler Printed name of licensee [Form MJ-02) (rev 01/10/20181 License# 19372 Page 2of2 Received by AMCO 10.16.18 144 ,• Alaska Marijuana Control Board Alcohol & Marijuana Control Office 550 W 7th A venue, Suite 1600 Anc horage, AK 99501 marijuana.licensing@alaska.gov https:/lwww.commerce.alaska.gov/web/amco Phone: 907.269.0350 Cover Sheet for Marijuana Establishment Applications What is this form? This cover sheet mw be completed and submitted any time a document, payment, or other marijuana establishment application item is emailed, mailed, or hand-delivered to AMCO's main office. Items that are submitted without this page will be returned in the manner in which they were received. Section 1 -Establishment Information Enter information for the business seeking to be licensed , as identified on the license application. Licensee: Red Run Cannabis Cultivators , LLC I License Number: 119372 License Type: Marijuana Product Manufacturing Facility Doing Business As : RED RUN CANNABIS CULTIVATORS, LLC Physical Address: 12516 Kenai Spur Hwy, Suite A City: Kenai I State: I AK I Zip Code: 199611 Designated Marc Theiler Licensee: Email Address: marc@redruncannabiscompany.com Section 2 -Attached Items List all documents, payments , and other items that are being submitted along with this page. Attached Items: 1. Diagram #1 2 . Diagram #2 3 . Diagram #3 4. Diagram #4 5 . Diagram #5 OFFICE USE ONLY Received Date : I I Payment Subm itted YIN : I I Transaction#: I Received by AMCO 1.24 .19 145 ' I U .H \" I llOIU I \J\'\t I \C I IU'\f ' c 11 .rn 1o:l;'l Licensee: Red llun C.uu1abls Cultivators, l.J..C 4~0pcraflonalat11meorJltlllM°dfon: 11.U-100 KJttbcu • IOJ Mu...ii..tnri0«0 IO~ ., ...... ,,.-....103 Exu.dlOll l..-b-104 IJUUty ·IO.S Exterior 8to~ -106 l'>q>/flrlud-107 V"""°"""·IOS M.,~·100 ---110 e..tlloom-111 MoWl.a1mdry Rooen • 11" •' l :··· •1·50'"1" (rlELDVERlfY) ~-.l ; -1 -,.~­ Slav.ci. l!l!!l i ~ !QIID Fa;;RA. U i ____ _____$ I I ...,, I .- 1 ~ l Not part of proposed licensed premise. : The areas referenced and coded as 201 -208 j are not part of the proposed licensed premise. Key Proposed Licen sed Premi se Boundaries ------ Area Boundaries NOT Proposed to be Licensed --- Restricted Access Area s Bathroom I Laundry Area N Diagram I Received by AMCO 1.24.19 ci.t.TC '• J ....... 146 Marijuana Product Staunfacturlug t'aclUc,i #)937'.l Uccn!ICtl: Red Rm1 Caamabls C111th .. t....,., J,LC Att.. Oprl'dloual •I 'nwc ot'l1Uif~iotc ll•ll ·IOO KJlrltCn·lOI 0 Mauur.tnriuf· 102 H mJWt. Room· 103 Exlndlon IAh· lf).j UUUty·IO:S l'::X.crlorS.O"l'C·lOO Prep/Grlod • 107 v_.....,,,.1os Al~·I09 Scrurc: RootM. )10 Rcdlloom·lll lktit Room· 112 Al ·' -·-······-·-·-·s;;ii~·A"····-·-.;:'.~::.-·· ... ...... ······-..... ... .. ........... ·-·· ... , ~-·~-----+--·•----..::::::i.oi::..--~---·-~.:::o:...---· CJllEI> --; -... .:c -l it QllD .... (!l ~i ., .. '! @.; tO --- j AA i l!rn l l(IT(XN MU. [81 I ®!I I !!!11 -~ 0Irn Rl'l l!IT JD r:~l"""" =1 :::::::::::::::::::::::::::::::: ::: D 0 Key Not pan of proposed licensed premise. The areas re ferenced a nd coded as 201-208 are not part of the proposed licensed premise. These areas belong to another business e nterprise, proposed licensee (119372) will not have legal [IQht ol possession to these areas, .. , Proposed Licensed Premise Boundaries - Area Boundaries NOT Proposed to be licensed t N A1 PROPOSED FLOOR PLAN I I .- Diagram2 --~ I - Received by AMCO 1 .24.19 A 2 147 MU'ijnana l'roclud !ll1umraeturl11g Paelllty #1937'.l Ure11,....,, R«I Rim Can111wl• Cultlnat......, LLC '(hail\""' !Motw/brown flffl•t ~Nerti dtn\11\ th. HtMded,f'•~ aiuof -~!otdic~PfWIT!lw.. KENAI SPUR HIGHWAY "Ai PROPOSED SITE PLAN ~~..:9) 1'•25'.V(ttl,.).1'•$0'.()" ,,,.17} s:: () ;>; z r m -< (/) :ti m ~ Diagra1n3 PN\KIHIO Rf.OUIRfloEHTS. I '1.!IOOS.f w.Nl..l'ACTURWGl'OJSTftlA&.1500 •5•)•0 P»OONGSPACH I uoosr AETAJ1..0Ffll.A.1<Vllt:MS 1SOO •fPAAK!NO!PAC£s !OT~ 14 PARKHC SPACCS AEOtMtm 1 "1JA.VA."1 ...cctSSl8l£PNOONG$P/ll:,E.REOUIA:[D 10PAA:KJNO!IPACE&Pfl0\llDEO 1 ACM. l/f/J.H. AC«S$111t.E PAAKIHG SPACE PROYIOE'O Rece ived by AMCO 1.24 .19 148 Diagram 4 (Page 2) _icensee: Red Run Cannabis Cultivators, LLC W License#: 19372 Proposed Licensed Boundry •A portion of the proposed licensed boundry extends exterior through the Extra ction Room's exterior Exit. This exterior area will be enclosed by a chain length fence with brown. opaque slats to shield vlsability. Legend Church Fireweed Herb Garden & Gifts Red Run Cannabis Cultivators Spur Motel Rece ived by AMCO 1.24 .19 149 !\farijmma 1-'rodnet !\fauufacturi11j1; FnclJlty #1937'.I l..tccuN<.'C: 8"'1 Rm1 Cauuabl" CultlvatOl'8, l,J..C Att&<v 0111ttatlonal•t'l'lmeofl1111~lon: lloll-100 KUt'l11Ct•·IOI MatHlibrturl•• • 10~ Flmdhln« ROOIU•l03 ExtrM"tto.1lAlb·104 Ulllloy -10;\ J 1'...~ntorSto~·lOO Prqt/6rl11d • 107 Uu[NM'l<Wg • 108 ~ta11/l~U.J•IOO Hc:r11R! RoooJ • 110 Rot lloow • 111 Rn:t Roow-11~ .. Dingrrun :S --i---........ 111il1111111ii11 .......... ~ .. llll!l~illl...... <IE> .-.~ "'""---,.- ~ "@i J 1 D 0 Key ..... .,.. ··""'"" ''" " ---, -~' Not part of proposed ncensed premlw. The areas referenced and coded a s 201 -208 ""re not part of the proposed licen sed premise. Th e$e ateas belong to a nother business enterprise, proposed Ucensee (1 19372) wlll not have legal fight of possession to these areas. IHflU.OKN!tK:IATLOCAnQNOfOl~ Wit«XM'. SEE AllM 2 FOR E.lllf~ W"'-L.ASUMIM..Y Proposed Licensed Premise Boundaries -t Area Boundaries NOT Prop osed to be Lice nsed -N .- 1 Received by AMCO 1.24.19 «'tlU'I•• .. ,.,~ ''"' ,.~ l''t[2 $H£ETC(lrl.Tft. POOPOS<O HOORfVH 150 Alcohol and Marijuana Control Office 550 W 71h Avenue, Suite 1600 Anchorage, AK 99501 marliuana.licensing@alaska.gov https://www.commerce.alaska.gov/webfamco Alaska Marijuana Control Board Phone: 907.269.0350 Operating Plan Supplemental Form MJ-05: Marijuana Product Manufacturing Facility What is this form? This operating plan supplemental form ls required for all applicants seeking a marijuana product manufacturing facility license and must accompany Form MHJl: Marijuana Establishment Operating Plan, per 3 AAC 306 .020{b)(11). Applicants should review Chapter 306: Artlc:le s of the Alaska Administrative Code. This form will be used to document how an applicant intends to meet the requirements of the statutes and regulations. If your business has a formal operating plan. you may include a copy of that operating plan with your application. but all fields of this form must still be completed per 3 AAC 306.020 and 3 AAC 306.520(3). What additional Information is required for cultivation facilities? Applicants must identify how the proposed establishment will comply with applicable regulations regarding the following: • Equipment, compounds, and processes to be used • Waste dJsposal • Testing procedure and protocols • Proposed marijuana concentrates and marijuana products • Proposed product packaging and sample labels • Prohibitions Th is form must be completed and submitted to AMCO's main office before any new or transfer application for a marijuana product manufacturing facility or marijuana concentrate manufacturing facility license will be considered complete. Section 1 -Establishment Information Enter information for the business seeking to be licensed, as identified on the license application. Licensee: Red Run Cannabis Cultivators, LLC I MJ License#: I 19372 UcenseType: Marijuana Product Manufacturing Facility Doing Business As: Red Run Cannabis Cultivators, LLC Premises Address: 12516 Kenai Spur Hwy, Suite A City: Kenai I State: I Alaska · 1 ZIP: j99611 [Fann MJ-05) (rev 01/10/2018) Received by AMC0~118f 8 151 Alaska Ma r iju ana Control Board Form MJ-05: Marijuana Product Manufactur ing Facility Operating Pl an Supple mental Section 2 -Overview of Operations 2.1. Provide an overview of your propo5ed fac ility's operatio ns. In cl ude Inform ation regard ing the Intake, flow, a nd tran sfer o f marijuana, marijuana co ncentrate, a nd marijua na product at a nd from your premises: A variety ol mariJU111111 cnnmnlnlled Pf"duCU will be awated Uwough "8 use ol sotwnl-llased exlnldlon pnx:essn 11 well 11 lhrough our rosin IJ'llU ct dry-911 pmces-. Out l.olity will utilize pn>leuianal grade exlraclian •nd flnilhing equipmenl lhal will be uucl In •lrid C01Tl>bnco wilh Che """""acwre(1 llaled f11C1Uif11menta and bell ptlldlcaa. Eech piece ol eqUpment will be cendied Imm a licenaed engU-ID., .... lhDI Iha O'fSleln Is ..,.,,.,,.,,;.ay monulec:hnd. Is ufe lot Us intended use.1118111'1 IMlcl ID axle and ii In compliance will> local lint, u loty and building code raqul-nls. Wa will f'rin*ily be uaing • dmed~oop. &tw>a salf1IClion tyslem ·.....,.~plant mallet ls woahed wi\h Butane-sotvenl. whod1 ca.-s lwl resin glonda lrom "8 ....njuane melerial to delectl &om lhe plant end become auopended In the Bulane-solvent solutlcn. The concentrated Cannabis malAtrial Is then placed inlo a va"'um o..., lor aave"" houri ID 24 IQn in Dnler to P11fVO rnlclull sot.ents below Ille Slale'• acmptabl1 rengeo.. All omployees/8!10f>tS handling, operallng, d eaning ct maintaining Red Run'• u lnldion aysloms wil be highly e xperienced and lully lnlined on how lo use, d ean and maintain Iha exlnldion 1yalem and Che ~ llte<win. EllCll lcensee, emplo)'9tl at egenl wit be requited to """"!heir marijuana lwldler permH and food worlt aml with lhem II all times while on premises. Out ladlity w'l1 receive morijulna plenl melllrial from our licat<lled Cullivation racility as well es -bnsed Cultlvltion lsdlibes in Iha alale. We will employ -..S..velac>ed Slandllld Operating Proctdures fct ucn c:rilical _.within our em erpllse . NI '"'8ke Proctdln ri be lltlc::lly fDllowed. any 11181ijueN plent material will come lhrough cu primary acaiss entry poinl. loclllad IDwlltd II• back ol lhe building. Marluana material...., only be accepl8cl .,..._to 3 MC 308.750. AcctS)led marijuana material is Initially w9ghed and chedled egaiNI Ila Meire manifetl for eca.racy. Once weight Is venlied and llCClpled, lie mat1uana ,.,,.terial Is lher1 u parated out baled upon INnc:lerlslic. -qualltin. Mer the ma lerial has been aapa111ted, a Is &toted in cu Pte~iao-Roon1 unll It is r.cy lo be prellP8d for~ When lhe malllrial Is ready to be ulnlded, K la gtalad and grinned inlo., eppropriote mnsistancy, weighed end recorded, lhen pC111::ed Into Ila~ ellllwdoon coUm. The colum1 contaS.lng 1118 marijulne materiel Is then btoughl Into ht &lr1lclicn ~ connecled lo Iha unctor end 1>19ns lhe ulnle1ion procesa. AAM the extraction proceu. the CDllCB11nll8d-Cennabia a. PQUl9d onto a lheel end placed Into a VII"'""' oven. Once Iha conc:enlrated-Cannebi1 has been properly pu<ged, M will !hen be placed into ePl'ropriat•. telrigeraled 110t11Q8 cabinels tor laCer padlaging. Plnuant lo 3 MC JOll .750, Red Run will p 111,,.... rnatljuana lor ~ct lrllnsl9r lo enothor 11W1uana eateblillhmenl by (1) ""c:iflg pacbged merijuana 'lliCllin a sealed, lmlpet......,,l lhipping container: (2 1 allWng • lebef In compiance with Alaska law (3 MC 30U70l lo lhe lhipping mn1.11ner. and, (3) generelk>g • ltanapor1 mlflilell rr..n Iha ma""""8 ad!Mltion lacility'a marijuana Inventory lyalem. (NOTE: lhis lf1lllSl>Dll menilesl mu ll remain wtch Iha meriluena et ell times while being lnlnspolted end a copy must be given lo lhe licenaed metijuana eslabliahment thal ,__the lhipment.I Atr'f lndividuet tranlpD!li ng merij'*lll In compliance with lhia aadion lhaA have a rnatljuana handler permlL Pursu1n1 ID 3 M C 308.750, when an~ marijUlnll o r marijUllNI produd Is trantpDlled, the mailuana Htablishment that originates Iha tranlpOrt lhlll uu lhe me~ lnlcil>g aystem to ntCDrd Iha type, amiunt end weight al marij....., or merijuana produd being lnlnaported, Ille name ol lhe ltllnsporler, Iha time ol depnttunl and ex peeled dellvety, and the meke. model end lconae ""te number ol the transporting vehide. A aJnllllole prinl6d hnaport manilest on a form ptesaibed by the board must be qpe wilh Iha marijuana or~ praducl at al llmes. l'urluenl to 3 M C 308.5 10, Rid Run will not pecbge, ~or Ml any produd that Is an adulleratod food or clrinl<, c:louCy 111semble1 • femiliar food Of drink item including ancty; Of la pecll.eged ID loolc like candy. ct In bright mlors ot will! alloon cNrllClefa or-jlidurH Of images lhal would -al ID cl1idnin. wi.n Rad Run peckagn ils menulectured pniduc:ts lot a ratal metluana"""" lo ul to a consume<, Iha pac:keging will be deslgned/conslrucl in compliance with feclwal law (16 U.S C. 1700+ llnown as the Pci aon Prevention PacJ<aving Adi, WICll lhe goal that K be lignlflC8nlly diflicull ror childl1ln undet rove years of ege to open, ..tlile being not notmally ditricua for edtllts lo use properly ea deined by federal nigutalion (1 8 C.F.R. 1700.:ZOI. Section 3 -Equipment and Compounds to be Used Review the requirements under 3 AAC 306.555. 3.1. Describe the equipment and solvents, gases, chemicals, and other compounds the marijuana product manufacturing faclllty will use to create marijuana concentrates: Red Run will utilize the following methods/techniques and equipment to process/create marijuana concentrated products: (1) Closed loop, Butane extraction (2) Closed loop, Ethanol extraction (3) Rosin Press extraction (4) Dry Sift extraction Extraction Machinery: 1. MK4c Terpenator© -a closed loop hydrocarbon extractor, designed for Butane & Propane solvents. Professionally engineered, certified and tested . 2 . Across International 7.Scuft AccuTemp Vacuum Ovens -professionally engineered, certified and tested vacuum ovens. 3. Bochi Rota-Evaporator -a closed loop ethanol extractor, professionally engineered, certified and tested. 4 . Rosin Press -a "solvent-less" machine that utilizes heat and pressure to extract resin from Cannabis material. Solvents: 1. Butane (N-Butane, Isa-Butane) 2. Food Grade Ethanol [Form MJ.05) (rev 01/10/2018) Ucense# 19372 Page 2 of8 Rece ived by AMCO 1.25.19 152 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 4 -Waste Disposal Review the requirements under 3 AAC 306 .740 . You must be able to certify the statement below. Read the following and then sign your initials in the box to the r ight: 4.1. The marijuana product manufacturing facility shall give the board at least three days written notice required under 3 AAC 306. 740(c) before making marijuana waste unusable and disposing of it. Initials 4.2. Describe how you will store, manage, and dispose of any solid or liquid marijuana waste, including expired or outdated marijuana or marijuana product, in compliance with any applicable laws. Include details about the materialf s) you will mix with ground marijuana waste and the processes that you will use to make the marijuana waste unusable for any purpose for which it was grown or produced: Method of Disposal: 1. The facility collects , accounts for and weighs all remaining solid and liquid waste from its manufacturing practices (including expired or outdated marijuana or marijuana product). Waste material is dumped into specifically marked plastic waste bins, each bin is clearly labeled with the Metre tag number and date the material was wasted from. 2. All critical information is then entered into the Metre tracking/logging system . Waste bins are then tagged for disposal and labeled with the date of AMCO notification. 3. AMCO will be given notice not later than three days before making the waste unusable and disposing of it. 4. After giving AMCO at least 3 days notification, the waste bins tagged for disposal are then transferred to our waste disposal bin area located on premise within our exterior, fenced-in area . See Premise Diagram. 5. All solid waste will be broken down into small partitions, and mixed with a Compost-able Waste Mix consisting of old growing material, coconut coir, growstones, worm-castings, bat guano, Sulfur and other micro nutrients, including coffee grounds. The ratio of solid marijuana waste, including expired or outdated marijuana products to our Compost-able waste-mix will be approximately 50/50. 6. All liquid waste is mixed with our Compost-able Waste-Water Solution or simply mixed with liquid dish washing soap. The ratio of liquid marijuana waste, including expired or outdated marijuana products to our Compost-able Waste-Water Solution will be approximately 50/50 . 7. Solid waste fit for compost will be transferred off-site to our worm farm. Any waste not fit for compost will be thrown into our Alaska Waste trash bin. 8 . Liquid waste will be disposed of by pouring the waste down the drain in a manner consistent with DEC and local regulations. Compost-stable Waste-Water Solution (Liquid Waste): Water, Worm-castings, Soap, Sulfur. Compost-stable Waste Mix (Solid Waste): Coconut Coir, Growstones, Worm-castings, Bat Guano, Microbes, Sulfur and Coffee grounds. (Form MJ-05) (rev 01/10/2018) License# 19372 Received bv AMCO 1.24 . fQe 3 of s Received by AMCO 1.25.19 153 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 5 -Testing Procedure and Protocols Review the requirements under 3 AAC 306.520 and 3 AAC 306.550. You must be able to certify the statement below. Read the following and then sign your initial s in the box to the right : 5.1. I will ensure that any Individual responsible for collecting random samples for required laboratory testing under 3 AAC 306.455 will prepare the necessary accompanying signed statement, provide the signed statement to the marijuana testing facility, and maintain a copy as a business record under 3 AAC 306. 755. Answer "Yes" or "No" to the following question: 5 .Z. Wiii the marijuana product manufacturing facility be performing In-house testing (as defined under 3 AAC 306.990(b)(20)? Initials Yes No 00 If "Yes" to 6.2, you must be able to certify the statement below. Read the following and then sign your initials in the box: Initials 5.3. The area where In-house testing will occur Is clearly Identified on the Form MJ-02: Premises Diagram that Is submitted with this application. 5.4. Describe the testing procedures and protocols the marijuana product manufacturing facility will follow: D When marijuana or a marijuana product is transported, Red Run will use Metre to record the type, amount and weight of marijuana or marijuana product being transported, the name of the transporter, the time of departure and expected delivery, and the make, model. and license plate number of the transporting vehide. A complete printed transport manifest on a form prescribed by the board will be kept with the marijuana or marijuana product at all times. During transport. the marijuana or marijuana product will be in a sealed package or container and in a locked, safe, and secured storage compartment in the vehicle transporting the marijuana or marijuana product. The sealed package will not be opened duri ng transport. The vehicle transporting marijuana or a marijuana product will travel directly from our manufacturing facility to the receiving marijuana establishment, and will not make any unnecessary stops in between (except to deliver or pick up marijuana or a marijuana product at another licensed marijuana establishment). Pursuant to 3 AAC 306.550, Red Run will provide a sample of each marijuana product manufactured at the facility to a licensed marijuana testing facility, and will not sell or transport a marijuana product until all laboratory testing required under 3 AAC 306 .645 has been completed. In order to comply with 3 AAC 306.550 (a) of this section, Red Run will: (1) collect a random sample for testing by selecting a product from each production lot in an amount required by the marijuana testing facility; (2) designate an individual responsible for collecting each sample; that individual shall (A) prepare a signed statement showing that each sample has been randomly selected for testing; (B) provide the signed statement to the marijuana testing facility; and (C) maintain a copy as a business record under 3 AAC 306.755; and (3) transport the sample to the marijuana testing facility in compliance with 3 AAC 306. 750. (c) After collecting and transporting a sample for testing, Red Run will segregate the entire production lot from which the testing sample was selected until the marijuana testing facility reports the results from its tests. During this period of segregation, Red Run shall maintain the production lot in a secure, cool, and dry location to prevent the marijuana product from becoming contaminated or losing its efficacy. Red Run will not sell or transport any marijuana product from the segregated lot until the marijuana testing facility has completed its testing and analysis and provided those results, in writing, to Red Run . Red Run will maintain the testing results as part of its busi ness records . [Form MJ-05) (rev 01/10/2018) Ucense# 19372 Page4of8 Received by AMCO 1.25.19 154 . .,-t'it~ '!o. Alaska Marijuana Control Board AM.CO .. ., .. ~ Form MJ-05: Ma'rijuana Product Manufacturing Facility Operating Plan Supplemental Section 8 -Prohibitions Review the requirements under 3 AAC 306.510. 8.1. I certify that the marijuana product manufacturing facility will not: a. sell, deliver, distribute, or transfer any marijuana, marijuana concentrate, or marijuana product directly to a consumer, with or without compensation; b. allow any person, lndudlng a licensee, employee, or agent, to consume marijuana, marijuana concentr.ite, or marijuana product on the licensed premises; or c. manufacture or sell any product that Is an adulterated food or drink, closely resembles a familiar food or drink Item Including candy, or Is packaged to look like candy, or In bright colors or with cartoon characters or other pictures or Images that would appeal to children. Initials I declare under penalty of unswom falsification that this form, including all accompanying schedules and statements, is true, correct, and~ Signature of licensee No Public in a for the State of Alaska /11efl: 0.-.vJA-- Printed name of licensee [Form MJ-05) (rev 01/10/2018) Uc.ense #. ______ _ My commission expire~ / 01 2.@1'1 _. ........... ........_.=:::;u. __ ___,. 20 i ~ Page7of8 Received by AMCO 1.25.19 155 ~,,o'-• -1•,,,, j '•, Alaska Marijuana Control Board AM,,CO '»,,_ .. ,,~ Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306 .520, 3 AAC 306.525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details mu st include the color, shape, and texture. Ingredients: Thi s box is not applicable to marijuana concentrates . Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic represe ntation of th e expected appearance of the final product. [Form MJ-05] (rev 01/10/2018) Canna Cart (Vape Cartridge) Concentrate No I Shelf Life: If perishable. I Product will be in liquid form, its color will range from a light yellow color to dark amber color and will take the shape of its cartridge. 1 . Cannabis Oil 2. True Terpenes 3 . MCT Oil (Medium Chain Triglycerides) 4. Glycerin Cannabis oil is extracted from Cannabis flower/trim using a certified , closed Butane loop extraction system. The concentrated oil is then placed into a vacuum oven to purge residual solvents to below regulated ranges (3 AAC 306.645). If necessary, Cannabis oil will be dewaxed by placing the Cannabis oil into a freezer for approximately 36 hours to separate plant waxes from the concentrated Cannabis oil. Finally the Cannabis oil is mixed with True Terpenes, and/or MCT oil and Glycerin to an appropriate consistency. The final solution is then used to fill empty cartridges. ' License# 12 7 64 156 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample L abels Review the requirements under 3 MC 306.520, 3 AAC 306.565, and 3 AAC 306.570 . Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 MC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Canna Carts (Vape Cartridge) Concentrate Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached. Size (Mylar 1/8oz): 4" x 6" x 2 .2" Packaging Materials (Container): Clear Glass vape cartridge Size: .5ml -1ml Additional Packaging Option : Packaging Materials (Wrapper): Red Coin Envelope sealed w/ appropriate Red Run branded label. Size: 2 1/4" x 3 1/2" .ia Total Amount of THC = 40%-85% Individual Serving Size= 1 Cartridge (.5g) Total Amount of THC = 40%-85% Individual Serving Size= 1 Cartridge (1g) r ftn1 r 11 re i A h 11\& \TOTAL lHC: '76.9S°A, wrullA uw,!~UtIDMi1~~~~4j~ 1 GRAM PREMIUM CANNABIS OIL License# 12764 ' :....;...-- Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764KenaiAK99611 PB# 1A402300002BC3000002128 Strain: Hybrid Blend Marijuana Concentrate: Canna Cart (Vaporization) Total Cannabl niods: 84.50°/o Total THC: 71 .61% Tota1 cso: 0.22% Canna Cart THC: 0.95% THCA: CBD: CBGA: 17.86% 0 .02% 2.27°/o Total Terpenes: 4 .61 o/o Beta Myrcene: 2 .68% B·Caryophyn .. n .. : 1 .27°/o Oclmene: 0.25% Residual Solvent: Pass RE0906Fl.04 Net WT: lg (0.03S)OZ JR Retailer: RED RUN CANNABIS COMPANY Lic10056 MarIJo ana has 1nroX1ranng enec11 and may be habll tonnl~ and addl ttlfe. Marijuana lmp aln conceatrauon, roo nl lnallon, and 1uagmen1. Do nor operate a fehlcle or ma cblne.ry und er 1111n11uenct. There are ht.alfh mlil anoclated llillh roruomption of marIJ uana. For use onll' bf adUJtJ 21 and ol der. Keep out or lhe rt.ath ot !lllla.rtn . MariJuana should not be used bl' 1Tomen who are pregnant or brea11 feed.Ing. KeepAwayFromChik::lren -Keep Refrigerated 157 a''o'"·-....v,. ~ ·~ Alaska Marijuana Con t rol Board AM..C O .,,,,.,, • .,. .. +-Form MJ-05: Marij uana Product Manu factur ing Facility Operati ng Plan Su p plement al Section 6 -Pro p o sed M a rij u a na C o ncen t rates and M a r iju a na Produc t s Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306.560 . Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates . Standa rd Production Procedure and Detailed Manufacturing Process: Depiction : Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018} Crumble Concentrate Yes I Shelf Life: If perishable. I Crumble has an amber to golden-yellowish color and is opaque and brittle in appearance. Crumble has a crumbly consistency that crumbles when touched . Not Applicable. Cannabis oil is extracted from Cannabis flower/trim using a certified , closed loop Butane extraction system. The concentrated oil is then placed into a vacuum oven to purge residual solvents to below regulated ranges (3 AAC 306.645). Li cense# 12 7 64 158 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 MC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Crumble Concentrate Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached. Size (Mylar 1/8oz): 4" x 6" x 2 .2" Packaging Materials (Container): Red Silicon Container w/ Red Run Branded Logo. Size: 22mm x 15mm Additional Packaging Option: Packaging Materials (Wrapper): Red Coin Envelope sealed w/ appropriate Red Run branded label. Size: 2 114" x 3 1 /2" Total Amount of THC= 40%-85% Individual Serving Size = .Sg Total Amount of THC = 40%-85% Individual Serving S ize= 1g. ... ~ ·~ ~mJTOTAL.lHC: 76.95% ~I llr ff TOTALCBD: 4.36% W' TOTAL TERPs: 7.690.lo 1 GRAM PREMIUM CANNABIS OIL < License# 12 7 64 Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764 Kenai AK 99611 PB# 1 A402300002BC3000002128 Strain: Hybrid Blend Marijuana Concentrate: CRUMBLE(Vaporization) Total Cannablnlods: 84.50% Total THC: 71.61°/o TotalCBD: 0.22% CRUMBLE THC: 0.95% THCA: 17.86% • CBD: 0.02% CBGA: 2.27% RE0906FL04 Total Terpenes: 4.61% Net WT: 19 (0.03S)OZ Beta Myrcene: 2.68% 8-Caryophyllene: 1.27% JR Oclmene: 0.25% Residual Solvent: Pass Retailer: RED RUN CANNABIS COMPANY Licl 0056 KariJuana bas 1n10I1cating e11ui1 and mar be habll lormlmt and addlcllfe. lfariJuana lmpaln conren1ra11on, coonlinatton, and Judgmtnt. Do nol opera te a ftblde or mathlner)' Uder lls lnlluence. There are beaUb rlskS auoc1a1et1 With COllllll11Pllon of maruuana. for use oon· bf adUJ1121 and ol der. Kup om 01111e reach 01 mlldren . lfariJuaoa shou ld no! be used bJ n meJ1 Jho are pregnanl or bre<ist feeding. KeepAwayFromOiildren-Keep Refrigerated 159 a''O' •-"•t..o.,. § 'i.. Alaska Marijuana Control Board AMCO ro,,.., • .,.~"" Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520, 3 AAC 306 .525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name : Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the fina l product. [Form MJ-05) (rev 01/10/2018) Decarbed Cannabis Oil Concentrate No I Shelf Life: If perishable. I Decarboxylated Cannabis oil will range in color from golden yellow to dark brown. The Decarbed Cannabis oil will take on the shape of its container and will have a soft, oily texture . Not Applicable. Cannabis oil is extracted from Cannabis flower/trim using a certified , closed loop Butane extraction system. The concentrated oil is then placed into a vacuum oven to purge residual solvents to below regulated ranges (3 AAC 306 .645). The Cannabis oil wi ll then be decarboxylated (at 250 degrees for approximately 40 minutes). License# 12 7 64 160 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supp lemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of t his page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565 . Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Decarbed Cannabis Oil Concentrate Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) wl appropriate Red Run branded label attached. Size (Mylar 1/8oz): 4" x 6" x 2 .2" Packaging Materials: (Container) Clear Glass Syringe Size: .5ml -1 ml Total Amount of THC= 40%-85% Individual Serving Size (.5g) = .5g Total Amount of THC = 40%-85% Individual Serving Size (1g) = 1g ~ftftU 11 rlllC' jj hum~1\TOTAL1HC:76.9S°lo MW\ u u' ~~ u11111v1V +~~~ 4.;~ 1 GRAM PREMIUM CANNABIS OIL License# 12764 Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764 Kenai AK 99611 PB# 1 A402300002BC3000002128 Strain: Hybrid Blend Marijuana Concentrate: Decarbed Cannabis Oil [Vaporization) Total Cannablnlods: 84.50% Total THc: 11 .61% Decarbed Total CBD: 0.22% ( b' Q'I THC: o.95% anna 1s 1 THCA: 17.86% 2 CB~ ~02% S CBGA: 2.27% Total Terpenes: 4.61 % Beta Myrcene: 2.68°/o B·Caryophyllen .. : 1.27o/o Oclmene: 0.25% Residual Solvent: Pass RE0906Fl.114 Net WT: 1 g (0.035) OZ Bl Retailer : RED RUN CANNABIS COMPANY Licl 0056 Narll uana has lnloncanng ellem and may be habll lormllll! and addl tllve. NarlJuana 1mpa1n couteA1ra11on, roonnnauon , and Jnd ~menl. Do 001Ollttalea1·eblcle or maflllnerr under 111 1n11uence. Tilere are beallh rlsk1 a11odated a11b aimum pli on ol mar11uana. FOr Ult onn· by ad1111121 and older. Kr.tp oul ol lhe ream 01 dllldltJt. !larlJuana shoUld not be l!lell by women 11'110 are pregnam or brea111eedlflll. KeepAwayFromChildren~ Keep Refrigerated 161 Alaska Marijuana Control Bo ard Fo r m MJ -05: Marijuana Pr o duct Manufactu ring Facility Operating Plan Sup p lemental Section 6 -Proposed M arijuana C o ncentrates and Marijuana Produc ts Review the requirements under 3 AAC 306.520, 3 AAC 306 .525, and 3 AAC 306 .560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type : Perishable: Yes/No Product Description: Det ails mu st include the color, shape, and texture. Ingredients: Thi s box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depi ction : Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01 /10/2018) Kief Concentrate No I Shelf Li fe: If perishable. I Kief can range in color from a light yellow to dark green. K ief usually has a delicate powdery texture, yet can also be compacted to take on a brick-like texture. Not Applicable. Cannabis plant material is dried and/or frozen to desired moisture content. Cannabis plant material is dry sifted by agitating the dried plant material over a series of screens until the desired amount of resin has been collected. Kief License# 12764 162 Mf CO Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565 . Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05] (rev 01/10/2018) Kief Concentrate Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached. Size (Mylar 1/8oz): 4" x 6" x 2.2" Packaging Materials (Container): Red Silicon Container w/ Red Run Branded Logo . Size: 22mm x 15mm Additional Packaging Option: Packaging Materials (Wrapper): Red Coin Envelope sealed w/ appropriate Red Run branded label. l\ Size: 2 1/4" x 3 1/2" Total Amount of THC = 40%-85% Individual Serving Size = .5g Total Amount of THC = 40%-85% Individual Serving Size= 1g. License# 12 7 64 -- Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764 Kenai AK 99611 PB# 1 A402300002BC3000002128 Strain: Hybrid Blend Marijuana Concentrate: KIEF (Smoking} Total Cannablnlods: 84.50°/o Total THC: 71.61% Total CBD: 0.22% THC: 0.95% THCA: CBD: CBGA: 17.86°/o 0.02°/o 2 .27% Total Terpenes: 4.61°;o Beta Myrcene: 2.68% B-Caryophyllene: 1.27°/o Oclmene: 0.25°/o Residual Solvent: Pass KIEF ~ RE0906Fl.04 Net WT: lg (0.03S)OZ JR Retailer: RED RUN CANNABIS COMPANY Li cl 0056 Ha11Jua1a has 1n1ox1ta11ng elletls ana mar be babll lormlng and addl tll ve. HartJuana lmpaln conttJtlranoo, ooonllnatlon, and tndgmenl. Do not opera1 e a ventcle or machin e!}' under 11s 1nnueote. Th ere all! htA!llb mks associated Wllh consumpllon ol mariju ana . For us e only bf adoJls 21 and ol der. Keep 001 or lhe reac.1101 t.ll lklren . HartJuana shOnld 001 be llSt.d br women who all! pregnanl or breasl letllilll!. KeepAwayFromChDdren~ Keep Refrigerated 163 o"''o~·-~1,,,.. ~ ' 1 • Alaska Marijuana Control Board AM CO ~.,..,",,,•' Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Revie w the requirements under 3 AAC 306.520, 3 AAC 306 .525 , and 3 AAC 306.560 . At tach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredi ents: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic represe ntation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018) Rosin Concentrate No I Shelf Life: If perishable. I Rosin has a bright golden yellow to amber color and can have a gooey to b rittle consistency . Rosin is sticky and oily in nature . Rosin is soft and pliable. Not Applicable. A Rosin Press is at the center of rosin production, a machine responsible for producing controlled amounts of heat and pressure over short periods of time . To produce rosin , three components are required: heat, pressure, and time . The technique in rosin production rests within the ability to balance these three components together to create a superior product in flavor and effect. Cannabis flowers are screened, broken down and packaged into a small bindle, which is then placed into the Rosin Press onto heated plates, pressure is then applied to the plates and the rosin is squeezed out and collected. Rosin License# 12764 • Received by AMC0 Ph~9 Sf8 Rc.vd. by AMCO 164 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Rosin Concentrate Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached . Size (Mylar 1/8oz): 4" x 6" x 2 .2" Packaging Materials (Container): Red Silicon Container w/ Red Run Branded Logo. Size: 22mm x 15mm Additional Packaging Option: Packaging Materials (Wrapper): Red Coin Envelope sealed w/ appropriate Red Run branded label. Size: 2 1/4" x 3 1/2" Total Amount of THC = 40%-85% Individual Serving Size = .5g Total Amount of THC= 40%-85% Individual Serving Size = 1 g. r jA~ ~TarAL1HC:76.9S°A. ~I II? ~ llN~ TOTALCBD: 4.36% w' run~ TOTAL TERPs: 7.69% 1 GRAM PREMIUM CANNABIS OIL License# 12764 Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764 Kenai AK 99611 PB# 1 A402300002BC3000002128 Strain: Hybrid Blend Marijuana Concentrate: ROSIN (Vaporization) Total Cannablnlods: 84.50°/o Total THC: 71.61 % Total CBO: 0.22% THC: 0 .95% THCA: 17 .86% CBO: 0.02% CBGA: 2.27°/o Total Terpenes: 4.61 % Beta Myrcene: 2.68% B-Caryophyllene: 1.27°/o Oclmene: 0.25% Residual Solvent: Pass ROSIN ~ REot06Fl.04 Net WT: 1 g (0.035) OZ JR Retailer: RED RUN CANNABIS COMPANY Lic10056 MarlJuana has lnloikadng eUeds and mar be habll lormln t and addltflte. Maru uana lmpaln contt11 1ra11on , coort11na11on, and JUdgmen1 . Do IWI opt.ra1 e a vehlde or m~rJ llllll er 1111nnuenr.e. Tllfre are beall h rl1k1 auoclaled wllh consumpllon ol marlJu an a. For 11e onl}' bf adUll i 21 and old er. Keep on1 011be re.am 01 child ren. llarlluaaa sb oUld IOI be used bf womt.n who are pregnam or bre.a1t leedllll!. KeepAwayFromCh~dren-Keep Refrigerated Received by AMCO 1.25 P0ge 6 of 8 AMCORc:vd. 165 o''o\.·-~(,,., ' '1 AMc o ' Alaska Marijuana Control Board 'o ¢ •1 i o t "..: Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306 .520, 3 AAC 306.525, and 3 AAC 306 .560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable : Yes/No Product Description: Details must include the color, sha pe, and texture . Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process : Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018) Shatter Concentrate No I Shelf Life: If perishable. I Shatter has a color that ranges from golden yellow to dark amber. Shatter is hard and brittle, its shape is irregular. Its texture is hard, smooth and sticky in nature. Not Applicable. Cannabis oil is extracted from Cannabis flower/trim using a certified , closed loop Butane extraction system. The concentrated oil is then placed into a vacuum oven to purge residual solvents to below regulated ranges (3 AAC 306.645). License# 12764 Rece i vecf~i~~.2~?Me sots 166 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Shatter Concentrate Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached. Size (Mylar 1/6oz): 4 " x 6" x 2.2" Packaging Materials (Container): Red Silicon Container w/ Red Run Branded Logo. Size: 22mm x 15mm Additional Packaging Option: Packaging Materials (Wrapper): Red Coin Envelope sealed w/ appropriate Red Run branded label. Size: 2 1/4" x 3 1/2" Total Amount of THC = 40%-65% Individual Serving Size= .5g Total Amount of THC = 40%-65% Individual Serving Size= 1g. License# 12764 Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764 Kenai AK 99611 PB# 1A402300002BC3000002128 Strain: Hybrid Blend Marijuana Concentrate: SHATTER (Vaporization) Total Cannablnlods: 84.50% Total THC: 71.61% Total CBD: 0.22% THC: 0.95% THCA: 17 .86% CBD: 0.02% CBGA: 2.27% Total Terpenes: 4.61% Beta Myrcene: 2.68% B-Caryophyllene: 1.27°/o Oclmene: 0.25°/o Residual Solvent: Pass SHATTER IC RED906FL.04 Net WT: 1g (0.035)0 JR Retailer: RED RUN CANNABIS COMPANY Licl 0056 MarlJuana ha1 101011ranng e!lects and may be habit lormtng am! addltUl"e. Marijuana lmpatn r.ollttlllratlo n, c:oordlnaao n, and JUdgmenf. DO not opm1e a Yehtde or machinery under 111 lnlluenre. mere are htallll rtllis associa ted wllb conswopuon 01 maruuana. for II.le on tJ bf ad ults 21 and old er. leep out of the ream ol thlldren. NarlJnana sbouJd 101 be wt,11 bf women who are pregnanr or breasl leedlJll!. KeepAwayFrornChildren-Keep Refrigerated 167 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 MC 306.520, 3 AAC 306 .525, and 3 MC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Descri ption: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018) Terp Sauce Concentrate No I Shelf Life: If perishable. I Terp Sauce usually takes on a golden-amber color, running from bright-gold to light-amber. Its texture is honey like, gooey, granular, sticky and oily in nature. Not Applicable. Cannabis oil is extracted from Cannabis flower/trim using a certified, closed loop Butane extraction system. The concentrated oil is then placed into a vacuum oven to purge residual solvents to below regulated ranges (3 AAC 306 .645). License# 12764 Received by AMCO 1.25Nge s of 8 168 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount ofTHC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Terp Sauce Concentrate Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached . Size (Mylar 1/8oz): 4" x 6" x 2.2" Packaging Materials: (Container): Clear Glass Jar Size Sml Additional Packaging Qptjon: Packaging Materials (Wrapper): Red Coin Envelope sealed wl appropriate Red Run branded label. Size: 2 114" x 3 112" Packaging Materials (Container): Red Silicon Container wl Red Run Branded Logo. Size: 22mm x 15mm Total Amount of THC = 40%-85% Individual Serving Size= .Sg Total Amount of THC = 40%-85% Individual Serving Size= 1g. LIA r~ ij ~UN~Af TorALTHC: 76.9!)0/o ~ I~ l1UI TOTALCBO: ~.36% TOTAL TERPs. 7.69% 1 GRAM PREMIUM CANNABIS OIL License# 12764 Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764 Kenai AK 99611 PB# 1A402300002BC3000002128 Strain: Hybrid Blend Marijuana Concentrate: Terp Sauce (Vaporization) Total Cannablnlods: 84.50°/o Total THC: 71.61 % Total CBD: 0.22°/o THC: 0.95% THCA: 17 .86% CBD: 0.02% CBGA: 2.27% Total Terpenes: 4.61% Beta Myrcene: 2.68% B-Caryophyllene: 1.27°/o Oclmene: 0.25% Residual Solvent: Pass TERP SAUCE ~ RE0906FL.04 Net WT: 1 g (0.035)0Z Bl Retailer: RED RUN CANNABIS COMPANY Lic10056 Har!Juana ha s 1n1ox1ca11ng enec11 and mar be nabll lormlng and addlttlre. Nar!Juana lmpaln concenrrallon, ooonllnalloo , and Judgment Do nor operate a vehlfl e or mathlnery under lls tnnuence. There are hf.allh risks a11oc1a1ed with ronsumpllo n 01 martJuana. For use onlY by adDll! 21 and older. Keep out or the rfAl th 01 Children. Har!Jnana should not be usr.d by women who are pregnant or brea11 leP.111ng. KeepAwayFrornChildren~ Keep Refrigerated Rece ived by AMCO 1.25 Nge 6 of 8 169 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05] (rev 01/10/2018) Hash Concentrate Yes I Shelf Life: If perishable. I Color is light blonde to dark brown. Shape is cubic to round. Texture is smooth and slightly tacky. Not Applicable. Cannabis plant material is dried and/or frozen to desired moisture content. Cannabis plant material is dry sifted by agitating the dried plant material over a series of screens until the desired amount of resin has been collected, the collected resin is then pressed and molded until a final form is achieved. Hash II License# 12764 170 Alaska Marijuana Control Boa r d Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size , packagi ng materials used, total amount of THC , individual se rving sizes (if multiple), and other sp ec ifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic represe ntations. Sample labels: Provide sample lab e ls showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Hash Concentrate Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached. Size (Mylar 1/8oz): 4" x 6" x 2 .2" Packaging Materials (Container): Red Silicon Container wt Red Run Branded Logo. Size: 22mm x 15mm Additional Packaging Option: Packaging Materials (Wrapper): Red Coin Envelope sealed w/ appropriate Red Run branded label. I Size: 2 1/4" x 3 1/2" Total Amount of THC= 40%-85% Individual Serving Size = .5g Total Amount of THC = 40%-85% Individual Serving Size = 1 g. ~~WA ~W~l~~~t~l~:¥!~5 1 GRAM PREMIUM PRESSED HASH License# 12764 -- Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764 Kenai AK 99611 PB# 1 A4023000028C3000002128 Strain: Hybrid Blend Marijuana Concentrate: HASH (Smoking) Total cannablnlods: 84.50% Total THC: 71.61% Total CBD: 0.22% THC: 0 .95% THCA: CBD: CBGA: 17.86% 0.02°/o 2 .27% Total Terpenes: 4 .61 % Beta Myrcene: 2 .68% 8 -Caryophyllene: 1 .27°/o Oclmene: 0 .25°/o Residual Solvent: Pass HASH ~ RED906FUM Net WT: 1g (0.0351<> JR Retailer: RED RUN CANNABIS COMPANY Licl 0056 MartJaana has tnloilca~ enws and mar be habll 101m1ng and addirtlre. MartJuana tmpatn toncentratloo , roordlnatloo , and Jndgmmt . Do nol operate a fthlde or matblntl)' lllUler 111 tnnueoce. 11lere art bt!ll h rt1k1 associated 111tb tonsumpnon 01 martJuana. For use only b)' adlllts 21 and older. Keep 011 ol lbe rtath 01 t.blklrta . MartJuana shonld nor be mea •r iomen who are Pretnant or breast 1iea1ng. KeepAwayFromChidren -Keep Refrigerated Receive~~iAA'm6\1W.2~?f8e 6 of s 171 o''O' -·•"•1""'' :J AMco'', Alaska Marijuana Control Board 'o,,.,, • .,.~"· Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306 .560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05] (rev 01/10/2018) Moon Rocks Concentrate (Kief, Cannabis Oil) covered Cannabis Flowers No I Shelf Life: If perishable. I Moon Rocks will vary in size, each "rock" will be a Cannabis Flower dipped in Cannabis Oil and coated with Kief. The color will range from light green to golden yellow . The "rocks" will be dense and sticky in nature and will have an exterior texture that feels granular. Not Applicable. Hand-selected Cannabis Flowers are dipped in Cannabis Oil and rolled in Kief. License# 12 7 64 Re c eivecf~i~~.2~?f'8e sots 172 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Moon Rocks Concentrate (Kief, Cannabis Oil) covered Cannabis Flowers Packaging Materials : (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached . Size (Mylar 1/Boz): 4" x 6" x 2 .2" Packaging Materials (Container): Clear Glass Container Size (Glass Container 1oz): 2 .06"h x 1.37"w Total THC per Package(%): Between 40% -80%. Total THC per Package (mg): Between 800mg -1600mg Total NET Weight of Package: 1-2 grams (approx.). License# 12764 - Manufactered By: RED RUN CANNABIS CULTIVATORS Lie.# 12764 Kenai AK 99611 PB# 1 A402300002BC3000002128 Strain: Hybrid Blend Marijuana Concentrate: Moon Rocks (Smoking) Total Cannablnlods: 84.50% Total THC: 71.61% Tota1 ceo: 0.22% MoonRocks THC: 0.95% THCA: CBD: CBGA: 17.86% 0.02% 2.27°/o Total Terpenes: 4 .61 % Beta Myrcene: 2.68°/o B-Caryophyllene: 1.27°/o Oclmene: 0.25% Residual Solvent: Pass RED906Fl.04 Net WT: 2g (0.07)oz Retailer: RED RUN CANNABIS COMPANY Lic10056 MarlJuana has lnloliralllll! ellects and may be habit lonning and addlcll1e. Marijuana lmpaln contentrallon, coonunauon, and Judgm ent. Do nol op era te a rehlcle or machlneo under Its lnllaenre. There are beallb risks a11odated With romwnpdon 01 marQuana. For u1e only by adul112l and older. ltep 001 ol 1be reach 01 cllUdrtn. Marli nan a sbou ld no1 be use4 by women who are pregnant or breast leeamg. KeepAwayFromChildren-Keep Refrigerated Receivecf'~iAA16~.2.4?ftl:e 6 of 8 173 o,,o ... --... v, § ·~ A laska Marijuana Contr ol Board AMCO "<.,..,,.,..~ Fo r m MJ-05: M arijuana Prod u ct M anufacturing Facility Op e r ating Pl an Supple mental S e ction 6 -Propos ed M arijuana C o n c entra tes and M a rij u a n a Products Review the requirements under 3 AAC 306 .520, 3 AAC 306.525, and 3 AAC 306.560 . Attach a completed copy of this page for each proposed marijuana concentrate or marijuana pr oduct. Product Name: Product Type: Perishable : Yes/No Product Description: Details must include the color, sh ape, and texture. Ingredients: This box is not applicable to marijuana concentrates. St andard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05] (rev 01/10/2018 ) Canna Caps Edible Yes I Shelf Life: If perishable. I Up to 2 year. Our Cannabis-infused capsules will contain an individual 5mg serving . Cannabis-oil, infused with Coconut-oil will be injected into vegetable-based gelatin capsules. The product's color will range from golden yellow to dark brown. The Cannabis-infused oil will take on the shape of the capsule and will have a soft, oily texture . 1. Decarboxylated Cannab is Oil 2 . Coconut Oil 3. Lecithin Heat will be applied to the Coconut oil to render it in liquid form . Lecithin is then added to the liquid Coconut oil. Decarboxylated Cannabis oil is heated and combined with Coconut oil and mixed together in a manner ensuring even distribution. The final product will be placed into individual gelatin capsules and packaged together. Cam1abis-inft1sed Caps ules • license# 12764 174 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description : Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Canna Caps Edible Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) w/ appropriate Red Run branded label attached. Size (Mylar 1/8oz): 4" x 6" x 2.2" Packaging Materials (Container): Size "00" (1g) Clear Gelatin Capsules Additional Packaging Option: Packaging Materials (Wrapper): Red Coin Envelope sealed w/ appropriate Red Run branded label. Size: 2 1/4" x 3 1/2" (5-capsule pack) Total THC: 25mg Individual Serving Size: 1 cap (1g) Individual Serving Amount THC: Smg Servings per container: 5 Net WT : Sg (10-capsule pack) Total THC : 50mg Individual Serving Size: 1 cap (1g) Individual Serving Amount THC: Smg Servings per container 10 Net WT : 10g Front Label TEN 1 GRAM CANNABIS CAPSULES TEN SERVINGS: I CAPSULE (I G) 5MG EACH NET WT: tOG -50 MG THC TOTAL PREMIUM CANNABIS INFUSED CAPS License# 12764 Back Label Nutrition Facts ~W!QS&te 1 C~(lg) SeMn¢t: Pell Ccn:OW!ef 10 ~ ..... "" ..... C alorie'e 10 CH:1oc' trom Fat 10 .. 0.!!l:V•lllM' To•al Fa t tg ... SaUlllled Fm lg ... Sodium Orng ... To ta l C•~)l'dr•t• Og ... ProtM Og NOl ll~~ot w.tJ l.M.ctefH'"'°' 6d.WyflM.tuprS.~A.W.-C. ~ .... ·~4"111~~ .. ., .. ~ona 7,000 .-.. ... 175 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description : Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018) Hash Chocolates Edible Yes I Shelf Life: If perishable. I Up to 1 year. The Chocolate will range in color from light brown to dark brown. The product will be shaped into our Red Run brand "mark", which are the double "R"s. The product's texture will be hard and smooth. 1. Chocolate 2. Decarbed Cannabis Oil 3. MCTOil 4. Lecithin Heat will be applied to the chocolate to render it into a liquid form . The Cannabis Oil, MCT Oil, and Lecithin will all be heated and combined then added to the chocolate and mixed together in a manner ensuring even distribution. Finally, the mixture is poured into custom Red Run molds and put into the fridge to harden. Chocolates will be individually wrapped in red foils. *Center line denotes the Demarcation line embedded within the middle of each chocolate . Each piece, the Left "R" and the Right "R" are an individual serving size of Smg. License# 12764 176 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount ofTHC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations . Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Hash Chocolates Edible Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) wt appropriate Red Run branded label attached . Size (Mylar 1/8oz): 4" x 6" x 2.2" (Container): 4" x 4" Red Foil (5 Pack) Total THC: 50mg Individual Serving Size: 1/2 Chocolate "R" (2 .5g) Individual Serving amount THC: 5mg Servings per container: 10 Netwr: 25g (1 Pack) Total THC: 10mg Individual Serving Size: 1/2 Chocolate "R" (2 .5g) Individual Serving amount THC: 5mg Servings per container: 2 Netwr: 5g Front l.Jabel ~\\ CHOCOL47Ef 5 FIVE GRAM CHOCOLATES (2 SERVINGS EACHJ TEN SERVINGS: 1 /2 PIECE (2.SGI 5MG EACH NET WT: 25G -SOMG THC TOTAL PREMIUM HASH INFUSED CHOCOLATE License# 12764 Back IAlbel PRO~C~BY Nutrition Facts RED L11VATORS·5e·23456 =:.~~=:~<•>Q i SOLoBY CANNABISCOMPANY -== .. =·=-=-~--- BATCH#: 1 A402030002B~~omi%~ i;:::C•='°''";;.:;"..;.:;." _..:::Colorios:=;~:;; .. "°"'=,,,~::.~'~1 SEJM.r;SlzE: l/2CH:xxuTE "R"(2.SG)~1HC T•='"'""''""--"~· ------="' NETWT'. 25G50MG1HC . 1-"'="'=''= .. ~' .. ~0· .. ~--~·~11 1 Sodium Omg o" 177 o''o~·-•1.,,, ~ ·~ Alas ka Marijuana Con trol Boa rd AMCO -.....,,.,.,+-Form MJ -05: Mar ij u ana Prod uct M anufacturi ng Fac ility Operati ng Plan Supplement al Section 6 -P r o posed Marijuana Conc entrate s and M a r ijuana Pro d ucts Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306 .560. Attach a completed copy of this page for each proposed marijuana concentrate or mar ijuana product. Product Name: Product Type: Perishab l e: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction : Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018 ) Hash Gummies Edible Yes I She lf Life: If perishable. I Up to 1 year. The gummy will be RED in color. The product will be shaped into our Red Run brand "mark", which are the double "R"s . The product's texture will be elastic, soft and smooth . 1 . Water 2. Fruit Juice (Cherry , Raspberry, Strawberry) 3. Gelatin 4 . Glycerin 5. MCTOil 6. Decarboxylated Cannabis Oil 7. Stevia 8. Salt Decarboxylated Cannabis oil is mixed with Glycerin and MCT oil. Honey, water, fruit juice, salt and Stevia are mixed together separately . The decarboxylated Cannabis oil mixture is then combined with the sweetened fruit juice solution . Gelatin is then added to the final mixture to create a gelatin-like substrate which is then used to fill custom RR molds. *Center line denotes the Demarcation line embedded within the middle of each gummy. Each piece, the Left "R" and the Right "R" are an individua l serving size of Smg . License# 12764 178 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packagi ng materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05] (rev 01/10/2018) Hash Gummies Edible Packaging Materials: (Wrapper) Clear mylar bag (heat sealed) wt appropriate Red Run branded label attached . Size (Mylar 1/8oz): 4" x 6" x 2.2" (5 Pack) Total THC: 50mg Individual Serving Size: 1/2 Gummy "R" (2.5g ) Individual Serving amount THC: 5mg Servings per container: 10 Net WT : 25g (1 Pack) Total THC: 10mg Individual Serving Size: 1/2 Gummy "R" (2.5g) Individual Serving amount THC: 5mg Servings per container: 2 Net WT: 5g Front Label 5 FIVE GRAM GUMMIES (2 SERVINGS EACH) TEN SERVINGS: l/2PIECE (2.SG) 5MG EACH NET WT: 25G -50MG THC TOTAL PREMIUM HASH INFUSED GUMMIES License# 12764 Back Label Nutrition Facts StMng s.z~ 111 Gumm1 (2 5g) ~P«Conl.W\t(t0 a--thfhf~ C•kM'M• 0 "7.0!:!!lV ..... To tM Fat 00 ... lo4ium Orng ... Tot•t C•~ydrat• < lg .... lhot..tn Og t:«•~~Ol(Jloll)r,...flrom r.-, ....,,llltod ,,,.t.,.,w"'*"''tfOll~~ ~ VCMW\A wrw1C ~ lr'Of'! ·~..,.~,~-l).IJ.NOJ1.a 70:0 ~\:of~~ 179 Alaska Marij uana Control Board Form MJ-05: M arijua n a Product Manufact uring Facili t y Operat ing Plan Supp lement a l Section 6 -P ropose d Marijua na Conce n t rates and M a rijua na Products Review the requirements under 3 AAC 306.520, 3 AAC 306 .525 , and 3 AAC 306.560 . Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Produ ct Description: Details must include the color, shape, and texture. I ng redients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ·OS) (rev 01/10/2018) Hashade (Can nabis Infused Lemonade) Edible (Beverage) Yes I Shelf Life: If perishable. l6o days Product will be in liquid form, its color will be yellow and will take the shape of its container . 1. Decarboxylated Cannabis Oil 2. MCT Oil (Medium Chain Triglycerides) 3. Glycerin 4. Organic Lemon Juice 5 . Stevia 6 . Water Deca rboxylated Cannabis oil is mixed with Glycerin and MCT oil . Lemon juice, Stevia and water are then mixed together. Finally, the decarboxylated Cannabis Oil/MCT/Glycerin mixture is added to the Lemon j uice/Stevia/water solution and mixed together in a manner ensu ring even distribution . License# 19372 Received by AMCO 1.25.19page s of 8 180 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supp lemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565 , and 3 AAC 306.570 . Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must incl ude the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth i n 3 AAC 306.570 will be met. [For m MJ-05) (re v 01/10/2018) Hashade (Cannabis Infused Lemonade) Edible (Beverage) Packaging Materials (Container): Clear Plastic Wide Mouth Square Bottle Red Lid wl clearly m arlted serving cup on top w/ appropriate Red Run branded label attached. Size (Clear Plastic Wide Mouth Bottle): 74 mm x 104mm (10 Serving Package) Total THC: 50mg Individual Serving Size : 25g (.85oz) One sh ot from provided serving cup. m arked with red serving line. Individual Serving amount THC : Smg Servings per container: 10 Net WT: 250g (8.Soz) (5 Serving Package) Total THC: 25mg Individual Serving Size: 50g (1 .7oz} Tw o shots from provided serving cup , marked with red serving line. Individual Serving amount THC: Smg Servings per contain er: 5 Net WT: 250g (8 .Soz) •customized label will have (5 or 10) demarcation lines that will delineate each individual Smg serving. FRONT -, PREMIUM HASH INFUSED LEMONADE B .!5FL OZ (2.!50G) !50M<a THC: TOTAL TEN SERVINGS: 0 .815FL OZ C2Sa -CH Label That Holds Serving Cup on (I> ,..., !& c=: ,...., co-, :::0 C> > ("") ::::0 :r> ...., 5 ::::0 ::::0 IT1 ;:;:; IT1 (I) License# 19372 BACK ~ fU •* 156 EACH LEAF: ~~~ ~~ -.-1 SEJMNG:SMG"THC ~ ... -. --r ......... raclS ~-... -........ (25e) ~J1-(:aii4aftll0 ---~~MIL w .. ~. --· K!~ 0 ~z: 0 j!: ~ TM~ ht0o .. ............ . .. TOW~Jdnee ~ ... rtot•OQ ~~~·~-~~->-~6 M Cl mF~ ~~~ ~afil ~~~ ~ ............... ~~-1-......, ......... c __ -..... ~Vlil.-•1tt-..0111tlO» -----g~o::: =~~ ~l!W!11Jenll:t~er, ltmta lttltt. co:::>-1~ ~ &11min . m 111 , ~ fil ~ ~ t::i ~ 111111, tm1111 110011 11 Oil D...0::::<.n DJ :z 50 BEST BY· 2·20-19 WARNING LABEL ON SIDE OF BOTTLE Maruuana has 1n10X1catlne elletts and may be na11111onn1ne and addictive. MartJuana Impairs concentrallon, coonllnauou, and Jooemeni. Do 001 operate a vehlde or machinery under I" lnlluence. There are leallh risks assol'Jalt.11 w1m consumpnon 11 mar11uana . filr use ooJy by adllls 2t and older. Keep ou101 lhe reach 01 children. Marttoana 1nould not be used ~ women wno are preenanr ~ breau leedJlll!. Received by AMCO 1 .25.19Page 6 of 8 181 AM.CO Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018) Premium Infused Almond Butter Edible Yes I Shelf Life: If perishable . I Up to 1 year. Decarboxylated Cannabis oil infused with Almond "butter". Product will range in color from light brown to dark brown. The product's shape is malleable and will take on the form of its container. The product will have a creamy, oily texture. 1. Decarboxylated Cannabis Oil 2. Almond Butter (creamed Almonds) 3. Lecithin 4. Salt 5. MCT Oil (Medium Chain Triglycerides) Decarboxylated Cannabis oil is heated and mixed with MCT oil. Next, heat is applied to the Almond Butter (creamed Almonds) to render it more soft and easily mixable. Lecithin and salt are then added to the Almond Butter. Finally, the decarboxylated Cannabis oil & MCT oil are combined with the Almond Butter in a manner ensuring even distribution. The final product will be placed into a glass jar. Premium Infused Almond Butter License# 19372 Received by AMCO 1.25.19 page s of 8 182 ot;.o'-••1,..c,, ,,~ · '', Alaska Marijuana Control Board AM_C O --,,,,. ,0 ,...<-Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306 .565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Premium Infused Almond Butter Edible Packaging Materials (Container): Clear Glass Jar w/ Childproof black lid w/ appropriate Red Run branded label attached. Size : 2.2" w x 2" h (10 Serving Package) Total THC: 50mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC: 5mg Servings per container: 1 O Net WT: 1009 (5 Serving Package) Total THC: 25mg Individual Serving Size: 1 /2 Tbsp (1 Og) Individual Serving amount THC: 5mg Servings per container: 5 Net WT: 50g To1) Label License#_ 1937 2 F1-ont Label Re ceived by AMCO 1.25 .19Page 6 of 8 183 AMCO Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306 .520, 3 AAC 306 .525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018) Premium Infused Cashew Butter Edible Yes I Shelf Life: If perishable. I Up to 1 year. Decarboxylated Cannabis oil infused with Cashew "butter". Product will range in color from light brown to dark brown . The product's shape is malleable and will take on the form of its container. The product will have a creamy, oily texture . 1. Decarboxylated Cannabis Oil 2 . Cashew Butter (creamed Cashews) 3. Lecithin 4 . Salt 5. MCT Oil (Medium Chain Triglycerides) Decarboxylated Cannabis oil is heated and mixed with MCT oil. Next, heat is applied to the Cashew Butter (creamed Cashews) to render it more soft and easily mixable. Lecithin and salt are then added to the Cashew Butter. Finally, the decarboxylated Cannabis oil & MCT oil are combined with the Cashew Butter in a manner ensuring even distribution . The final product will be placed into a glass jar. Premium Infused Cashew Butter License# 19372 Rece ived by AMCO 1.25 .19page S of 8 184 AMCO Alaska Marijuana Control Board Fo rm MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565 . Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05] (r ev 01/10/2018) Premium Infused Cashew Butter Edible Packaging Materials (Container): Clear Glass Jar w/ Childproof black lid wl appropriate Red Run branded label attached . Size: 2.2"w x 2"h (10 Serving Package) Total THC : 50mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC: Smg Servings per container: 1 O Net WT: 100g (5 Serving Package) Total THC: 25mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC: 5mg Servings per container: 5 Net WT: 50g License# 19372 Front Label PRO..t>UCED BY RED RUN CULTIVATORS -58-23456 SoLD BY RED RuN CANNABIS cowl 3A-100 ~~~~~q~~i-QQP~P&~cl ~ NETWT 100G~1-fHC NutrHlon Facts $..-.o S<i• tit ro1 11>(,0f) $..,_....l"<HC-i..-,o 1-------' .. =D•'!l_~~ T•t al~--..... s ...... •tft '='~----7-·· ~)l iltlia!lttlt!Hlll!Rlllilll!lilt•!Wlt. §~~~ ••. ~ •.• ~,,-~!~ ~-e~ttlltllltl.•111'61. 1 •~-·-··-·--------1 IOllllf!lll!lllMditllllllttlltllllilllltt. v.::-::.:.=._,,,_.A_:::..~ Tiii! II! N !l!ll lllOdll!l llll (11!11111«1i11111!11111. ?Joi;£::--;:-,;;=-:-; &iS ftrll!ll1'!1llC1fil2f lllllG!l l!!Jlltll!lutU lfttl lnltt41ffil~ !a!htl Bl!lt!((mmtll [a!IH I), Namn!llllll 11111111!1 ~t•llf llOlltlldlOtttU!ltj. lr.!llW IJaUis Iii. ll!Tlil. Jtaa Ill Re ceived by AMCO 1.25.19 Page 6 of 8 185 c''O'" • -.tt,,I'_, ~ \ Alaska Marijuana Control Board AMCO -...,,.,,.0 ,,," Form M J-05: Marij uana Prod u ct Manu facturi ng Facility Operati ng Pla n Su pplement al Sec tio n 6 -P ropo s ed Marijuana Conc entrates and Marij u a na Produc t s Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306.560 . Attach a completed copy of t his page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable : Yes/No Product Description: Details mu st include the color, shape, and texture. Ingredients: This box is not applicab le to marijuana concent rates. St andard Pr oduction Procedure and Detailed Manufact uring Process: Depiction: Provide a photograph, drawing, or gr aphic repres entation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018) Premium Infused Hash Pop (Cookies and Cream) Edible (Ice Cream) Yes I She lf Life: If perishable. I Up to 1 year. The Ice Cream will range in color from light brown to tan . The product will Take the shape of its tubular container. Product will be hard when frozen and thick creamy liquid when thawed. 1. Coconut Milk 2 . Almonds 3. Pecans 4. Vanilla 5. Decarbed C annabis Oil 6 . MCT (Medium Chain Triglycer ide) Oil 7. Stevia The Decarbed Cannabis Oil and MCT Oil will be warmed and combined together, the mixed oil will then be added to coconut milk , vanilla, stevia and ground nuts, mixed together in a manner ensuring even distribution . Finally, the mixture is poured into push pop molds and put into the freezer to harden. License# 19372 Received by AMCO 1.25 Rage S of 8 186 Alaska Marijuana Contr ol Boa r d Form MJ -05 : M arij ua n a Prod uct M anuf act uring Facility O p erating Plan Su pplemental Section 7 -Proposed P roduct Packaging and Sample L a b e ls Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570 . Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Premium Infused Hash Pop (Cookies and Cream) Product Type : Packaging Descri ption: Edible {Ice Cream) Packaging Materials (Wrapper): Insulated Resealabl e Foil Pouch S ize : 20cm x 12cm x 20cm (L x W x H) Details must include the color(s), size , packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with Packaging Mater ials (Contai ner): Clear Plastic Push Pop (w ith d e ar serving demarcatio ns) w/ appropriate Red Run branded label attached. Size : Cylindrical ch am ber measures 1-1/4 inch in dia meter and 2-3/4 inch high . The stem of the mini pu sh pop is integrated with the d is k, with an ove ra ll l ength of 4-1/16 inch. The stem is similar in shape to a fl atware ha ndle , w ith the w id est part (ne ar th e bottom) measu ring 7/16 inch. 3 AAC 306.565 . Please include photos, drawings, or graphic representations. (10 Se rving Package) Total THC: 50 mg Individ ual Serving S ize: 4g (.2oz) Indivi dual Serving amount T HC: 5 mg Serv ings pe r contai n er: 1 0 Net WT: 40 g (2 oz) .. ·---- Sample Labels: *Customized label will have 10 serving demarcation lines that will delineate each individ ual 5mg serving. Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. PRDllUM tU.$H INFUSED tU.$H POP 2~L OZ:C4()a) 50Mo THC T O TAl. ttH IOtYINCS· O.tA.02 ~ ..,_ c.a. Bag L a b e l f: ROO.UCED BY ED RU~ CULTIVATORS B-1234 6 OLD BY ED RUN CANNABIS Nut rition Facts S*"""'O Si:• 4g (0.2ft oi) serv:g• P..-Ccnlainer 10 3A-f0056 BATCH#fA402030002BC0001883 BEST BY· 2-20-t 9 .:.:T•::.:••::.;":.="'o..:Oe:z..._ ____ _;0=" I Sodium Omo lla!U'UM!~tllttnlM11J~WM~•1111.untr1. T••••c..,...h,..,..., ... lla!ijmiQaln f1llttllllita,lllldillifi,al.. -p,.""5'!""~"-: oo""aa------1 111111•e•Tm•-*lJ•tn•m. ~~~~~~~~~:~~·~r~~~o:.~~.t·· Jmlr!kalllrtilmtdlNdl (ftllJl(illl ~ ;::;~·~~~•"I"-"••.,. 1a u., c~ • ~~ IG! Ill, lldf bf ll1Ull! 21 lllt IMll. lttf 1111tiIR181111 railllfl lntredifll~ 00.. Milk, Allnds. Pttus, lla!UUll lhtlll ltl I lllfJ ~ toll8 nt m '1rtH «rl!!l lttillt l'uilla. stma, kWktl CUWil til. MCT o~. Tube L a bel 1 PREMIUM HASH INFUSED HASH POP 2FL OZ (400) SOMO T H C T O TAL TEN SERVINCS: 0.2FL O Z (4o) 5Mo U.CH T ube L abel 2 [Form MJ-05) (rev 01/10/2018) Lice nse# 19372 Rece ived by AMCO 1.25.19 Pa ge 6 of 8 187 .,.,oi •-..<I: l \ Alaska Marijuana Control Board A~CO -o,,_.,.,+~ Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05) (rev 01/10/2018) Premium Infused Hash Pop (Chocolate) Edible (Ice Cream) Yes I Shelf Life: If perishable. I Up to 1 year. The Ice Cream will range in color from light brown to dark brown. The product will Take the shape of its tubular container. Product will be hard when frozen and thick creamy liquid when thawed. 1. Coconut Milk 2 . Almonds 3. Pecans 4 . Chocolate 5. Vanilla 6. Decarbed Cannabis Oil 7. MCT (Medium Chain Triglyceride) Oil 8.Stevia The Decarbed Cannabis Oil and MCT Oil will be warmed and combined together, the mixed oil will then be added to coconut milk, chocolate, vanilla, Stevia and ground nuts, mixed together in a manner ensuring even distribution. Finally , the mixture is poured into push pop molds and put into the freezer to harden . License# 19372 Received by AMCO 1 .25 ~e s of 8 188 Alaska Marijuana Control Board Form MJ-05 : Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description : Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565 . Please include photos, drawings, or graphic representations . Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ--05) (rev 01 /10/2018) Premium Infused Hash Pop (Chocolate) Edible (Ice Cream) Packaging Materials (Wrapper): Insulated Resealable Foil PouchSize : 20cm x 12cm x 20cm (L x W x H} Packaging Materials (Container): Clear Plastic Push Pop (with clear serving demarcations) w/ appropriate Red Run branded label attached . Size: Cylindrical chamber measures 1-1/4 inch in diameter and 2-3/4 inch high. The stem of the mini push pop is integrated with the disk, with an overall length of 4-1/16 inch. The stem is similar in shape to a flatware handle, with the widest part (near the bottom) measuring 7/16 inch. (10 Serving Package) Total THC : 50mg Individual Serving Size: 4g (.2oz) Individual Serving amount THC: 5mg Servings per container: 1 0 Net WT: 40g (2oz) •customized label will have 10 serving demarcation lines that will delineate each individual Smg serving. Foil Pouch Label License# 19372 Tube Label I Tube Label 2 Rece ived by AMCO 1.25 Nge 6 of 8 189 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 6 -Proposed Marijuana Concentrates and Marijuana Products Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depiction: Provide a photograph, drawing, or graphic representation of the expected appearance of the final product. [Form MJ-05] (rev 01/10/2018) Premium Infused Honey Edible Yes I Shelf Life: If perishable. I Up to 2 years Decarboxylated Cannabis oil infused with Honey. Product will range in color from light yellowish-green to dark amber. The product's shape is malleable and will take on the form of its container. The product will have a sticky texture. 1. Decarboxylated Cannabis Oil 2 . Honey Heat will be applied to the honey to render it more mixable. Then heated decarboxylated Cannabis oil and the honey are combined and mixed together in a manner ensuring even distribution. Premium Infused Honey Lkense# 19372 Received by AMCO 1.25.19page s of 8 190 Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306 .565 . Please include photos, drawings, or graphic representations . Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306 .570 will be met. !Form MJ-05) (rev 01/10/2018) Premium Infused Honey Edible Packaging Materials (Container): Clear Glass Jar w/ Childproof black lid w/ appropriate Red Run branded label attached. Size: 2.2" w x 2" h Additional Packaging Option : Packaging Materials (Container) C le ar Sealed Plastic Straw wt appropriate Red Run branded label attached. Size: 6.5" h x .25" w (10 Serving Package) Total THC: 50mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC: 5mg Servings per container: 10 NetWT: 100g (5 Serving Package) Total THC: 25mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC : 5mg Servings per container: 5 NetWT:50g (Honey Stick) Total THC: 5mg Individual Serving Size: 2 Sticks (10g) Individual Serving amount of THC: 5mg Servings per container: 1 NetWT: 10g Gla.~sJar Straw Sticks Front Label (.Jar) T•~•ratOa e"\ ............. ... Teu1 C.._..)'111.at• ao a~ • .. ~-----· .... 1c1 .. , DQre4lenls: Raw Honer, lmltf:dCalllillllslll EIEsTBY·2·20-19 Honey Stick Label License# 19372 Received by AMCO 1.25.19Page 6 of 8 191 Alaska Marijuana Co ntrol Board Fo r m MJ -05: Marijua na Product Manufacturi ng Facili t y Operating Pla n Sup p lemen t al Sec t i on 6 -Proposed M a rijuana Concentrates a nd M a rij u a na Products Review the requirements under 3 AAC 306.520, 3 AAC 306.525, and 3 AAC 306.560. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Perishable: Yes/No Product Description: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detail ed Manufacturing Process: Depiction: Provide a photograph, drawing, o r graph ic representation of the expected appearance of the final product. [Form M J-05) (rev 0 1/10/2018) Premium Infused Peanut Butter Edible Yes I Shelf Life : If pe r ishable. I Up to 1 year. Deca r boxylated Cannabis oil infused with Peanuts "butter". Product will range in color from light brown to dark brown . The product's shape is malleable and will take on the form of its container . The product will have a creamy, oily texture. 1. Decarboxylated Cannabis Oil 2. Peanut Butter (creamed Peanuts) 3 . Lecithin 4 . Salt 5 . MCT O il (Medium Chain T riglyce ri des) Decarboxylated Cannabis oil is heated and mixed with MCT oil. Next, heat is applied to the Peanut Butter (creamed Peanuts) to render it more soft and easily mixable. Lecithin and salt are then added to the Peanut Butter. Finally, the decarboxylated Cannabis oil & MCT oil are combined with the Peanut Butter in a manner ensuring even distribution. The final product will be placed into a glass jar. Prem i um Infu sed Pe anu t B u t t e r License# 1937 2 Rece iv ed by AMCO 1.25 .19Page s of 8 192 o*o~•,.t.t,_., ::' 11, Alaska Marijuana Control Board AIVJCO ·~.,, ...... '" Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306.520, 3 AAC 306 .565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name: Product Type: Packaging Description : Details must include the color(s), size, packaging materials used, total amount of THC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations . Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306 .570 will be met. [Form MJ-05) (rev 01/10/2018) Premium Infused Peanut Butter Edible Packaging Materials (Container): Clear Glass Jar w/ Childproof black lid wl appropriate Red Run branded label attached. Size: 2.2" w x 2" h (10 Serving Package) Total THC: 50mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC: Smg Servings per container: 10 Net WT: 100g (5 Serving Package) Total THC: 25mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC: Smg Servings per container: 5 Net WT: 50g License#_19372 Front Label Rece ived by AMCO 1.25.19page 6 of 8 193 AMCO Alaska Marijuana Control Board Fo r m MJ -05: Marijuana Product Manufactu r ing Faci lit y Ope rat ing Pla n Supplement al Se cti on 6 -Proposed M a rijuana Concen trates a nd Marijuan a Products Review the requirements under 3 AAC 306.520, 3 AAC 306.525 , and 3 AAC 306.560. Attach a compl eted copy of this page for each proposed ma riju ana concentrate or marijuana product. Pr oduct Name: Pr oduct Type: Perishable: Yes/No Product Descripti on: Details must include the color, shape, and texture. Ingredients: This box is not applicable to marijuana concentrates. Standard Production Procedure and Detailed Manufacturing Process: Depicti on: Provide a photograph, drawing, or graphic r epresentation of the expected appearance of the final product. [Form MJ -05] (rev 01/10/2018) Premium Infused Pecan Butter Edible Yes I Shelf Life : If perishable. I Up to 1 year. Decarboxylated Cannabis oil infused with Pecan "butter". Product will range in color from light brown to dark brown. The product's shape is malleable and will take on the form of its container. The product will have a creamy , oily texture. 1. Decarboxylated Cannabis Oil 2 . Pecan Butter (creamed Pecans) 3. Lecithin 4. Salt 5. MCT Oil (Medium Chain Triglycerides) Decarboxylated Cannabis oil is heated and mixed with MCT oil. Next, heat is applied to the Pecan Butter (creamed Pecans) to render it more soft and easily mixable. Lecithin and salt are then added to the Pecan Butter. Finally, the decarboxylated Cannabis oil & MCT oil are combined with the Pecan Butter in a manner ensuring even distribution . The final product will be placed into a glass jar. P r e mium Infused Pec an B utter License# 1937 2 Received by AM CO 1.25 .19 Page s of 8 194 ~co Alaska Marijuana Control Board Form MJ-05: Marijuana Product Manufacturing Facility Operating Plan Supplemental Section 7 -Proposed Product Packaging and Sample Labels Review the requirements under 3 AAC 306 .520, 3 AAC 306.565, and 3 AAC 306.570. Attach a completed copy of this page for each proposed marijuana concentrate or marijuana product. Product Name : Product Type: Packaging Description: Details must include the color(s), size, packaging materials used, total amount ofTHC, individual serving sizes (if multiple), and other specifics showing compliance with 3 AAC 306.565. Please include photos, drawings, or graphic representations. Sample Labels: Provide sample labels showing how the labeling requirements set forth in 3 AAC 306.570 will be met. [Form MJ-05) (rev 01/10/2018) Premium Infused Pecan Butter Edible Packaging Materials (Container): Clear Glass Jar w/ Childproof black lid wl appropriate Red Run branded label attached. Size: 2.2" w x 2" h ( 10 Serving Package) Total THC: 50mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC: Smg Servings per container: 10 Net WT: 100g (5 Serving Package) Total THC: 25mg Individual Serving Size: 1/2 Tbsp (10g) Individual Serving amount THC: Smg Servings per container: 5 NetWT:SOg License# 19372 Front Label Received by AMCO 1.25.19Page 6 of 8 195 Sponsored by: Council Member Bob Molloy and Council Member Glenese Pettey CITY OF KENAI ORDINANCE NO. 3053-2019 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND FOR THE DONATION OF A BUSH DOCTOR’S HISTORIC CABIN FROM DOCTOR PETER HANSEN AND KENAI COMMUNITY FOUNDATION AND SUPPORTING THE PLACEMENT OF THE CABIN ADJACENT TO THE KENAI VISITOR CENTER. WHEREAS, in 1967, Dr. Peter Hansen moved to Kenai, a community with no hospital in the area, and began practicing medicine, bringing with him used medical equipment he had acquired in Juneau; and, WHEREAS, the antique medical equipment has been saved and most recently stored by the City; and, WHEREAS, Dr. Hansen is in the process of constructing a Bush Doctor’s Historic Cabin to display the antique medical equipment for public viewing; and, WHEREAS, the construction project for this donation is funded by Dr. Hansen and the Kenai Community Foundation, a nonprofit organization, including the funding for construction of the cabin, preparation of the site for the cabin and antique medical equipment, and moving and setting up the cabin and antique medical equipment at the site; and, WHEREAS, a fund has been established with the Kenai Community Foundation to allow for future contributions for capital improvements and maintenance; and, WHEREAS, Dr. Hansen and the Kenai Community Foundation desire to donate the cabin and medical equipment to the City and locate the building adjacent to the Kenai Visitor’s Center; and, WHEREAS, Dr. Hansen would like his family members to be allowed access to the cabin to help maintain and display the medical items; and, WHEREAS, Dr. Hansen has worked with the Kenai Historical Society to develop a proposed site plan that the Kenai Historical Society supports; and, WHEREAS, the City Council graciously supports the plan for the donation of the Bush Doctor’s Historic Cabin to the extent that it will accept the building and maintain the structure and equipment and make it available for public viewing as funding and future plans allow; and, WHEREAS, the City will assist with location of the cabin and antique medical equipment and development of the site plan to the extent resources are available, primarily through the City’s in- kind services. 196 Ordinance No. 3053-2019 Page 2 of 2 _____________________________________________________________________________________ New Text Underlined; [DELETED TEXT BRACKETED] NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. That this is a non-code ordinance. Section 2. That the City Manager is authorized to accept the donation of the Historical Bush Doctor’s Cabin and equipment from Dr. Hansen and the Kenai Community Foundation. Section3. Dr. Hansen’s family members will be granted access as reasonable to help maintain and display the antique medical items. Section 4. That estimated revenues and appropriation be increased as follows: General Fund Increase estimated revenues- $103,000 Donations Increase Appropriations-Park Recreation and Beautification- $103,000 Buildings Section 5. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 6. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of March, 2019. BRIAN GABRIEL SR., MAYOR ATTEST: ___________________________________ Jamie Heinz, CMC, City Clerk Introduced: February 20, 2019 Enacted: March 20, 2019 Effective: March 20, 2019 197 MEMORANDUM TO: Mayor Gabriel, Council Members, Student Representative, Administration FROM: Council Members Molloy and Pettey DATE: February 14, 2019 SUBJECT: Ordinance No. 3053-2019, Donation Of A Bush Doctor’s Historic Cabin And Supporting The Placement Of The Cabin Adjacent To The Kenai Visitor Center This ordinance authorizes the City Manager for the City of Kenai to accept a charitable donation of a Bush Doctor’s Historic Cabin/Museum from Dr. Peter Hansen and the Kenai Community Foundation. This generous donation will increase estimated revenues and increase appropriations to Park Recreation and Beautification in the amount of $103,000. Dr. Hansen’s Letter of Intent, his letter to the Kenai Historical Society, a letter of support from the Kenai Historical Society, and the draft conceptual site plan, are additional explanation, comment, and support for this ordinance. This donation of $103,000 is intended to cover the costs of the construction project involved in this donation, including the funding for construction of the cabin, preparation of the site, and moving and setting up the cabin and antique medical equipment at the site. The source of these charitable funds is a designated fund that Dr. Hansen has set up specifically for the Bush Doctor’s Historic Cabin/Museum within the Kenai Community Foundation, which Dr. Hansen intends to be a source of funds for future capital improvements to the cabin/museum. We believe that the Bush Doctor’s Historic Cabin/Museum will add value to and be an additional educational and enjoyment opportunity for visitors to Kenai. We are grateful to Dr. Hansen for his generosity to the community; to the Kenai Community Foundation for its assistance with the charitable donation process; and to the Kenai Historical Society for its support of this donation. If enacted, the City will accept the donation of the cabin and antique medical equipment; will assist with location of the cabin and antique medical equipment and development of the site. The City will maintain the structure and equipment and make it available for public viewing. Funding for this will come from the Kenai Community Foundation under the category of “Bush Doctor’s Historic Cabin/Museum.” We will ask for a postponement to the 3/20/19 Council Meeting with a public hearing to be held at that meeting so that Dr. Hansen can participate in the public hearing. He is unable to be present for the public hearing at the 3/06/19 Council meeting. Council’s support of this ordinance is respectfully requested. 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 www.kenai.city 198 SIGN ,s~m~, e 0 DRILL BIT PARKING LOT KENAI VIS ITOR CENTER SIDEWAY NOTES: • NEW LOG CABIN WITH ENTRANCE DECK IS SPACED 10 FEET FROM BOAT AREA • CIRCULAR RAMP IS FLUSH WITH PRESENT LAWN • ENTRANCE RAMP IS ADA DESIGNED & IS 1:12 SLOPE WITH INSTALLED HANDRAILS ON EITHER SIDES REVIS IONS _J <( 0::: Zw Z1-Wz I-UJ Zu UJ u 0::: -o co I- <( (/) z-w> ~ DATE JJIN 2019 DRAl/VN HSW CHECKED MF FILE NAME KVC PROJ# 18195 SHEET 2 OF 1 199 LETIER OF INTENT -TO THE CITY OF KENAI To Establish a Kenai Bush Doctor Cabin/Museum By Peter Owen Hansen, M . D. February 11, 2019 The purpose of this letter is to formalize with the City of Kenai my desire to construct, equip, and assist in maintaining a one room log structure to be known as a Bush Doctor Cabin/Museum; to be donated to and placed on City public property, which may be open at appropriated times of the year for public visitation and educational purposes; and to fascinate and intrigue not only locals but tourists visiting our town. It is my intent to see this project further beautify our downtown area, and be an attraction drawing people into our community. Now-some details. The year -1967. Town of Kenai had no doctors, no hospital, and was having a boom with tar paper shacks and camper trailers everywhere. My wife and I moved here with kids ages 1,2, &3 and found a little log house to live in, and I brought with me used medical equipment I had acquired practicing medicine in Juneau. Quickly I had to acquire more surgical, medical, x-ray, laboratory, and physical therapy equipment to be able to deliver babies, treat every emergency, and serve the rapidly growing industries in Nikiski. By 1987, I had to update my practice with new equipment, but also saving the old for breakdowns on the new. I now have enough antique medical equipment to fully equip a one room cabin which I would like to do, with educational displays showing people what my medical practice was like 50 years ago. The abbreviated story since follows. Nov. 5, 2017 -Presented the above to the Kenai Historical Society (KHS) along with need for storage of my medical equipment due to my impending retirement. This was met with enthusiasm from the group. Thoughts were of such a Cabin being in the Historical Cabin Park . (Presentation attached) Nov. 8, 2017 -KHS President June Harris and I met with City Manager Paul Ostrander who offered warm storage for my equipment. January 2018, I moved four pallets of my medical equipment in. May 17, 2019 -Met with City Mgr Paul Ostrander -concern expressed about security of Hist. Cabin Park July 2, 2019 -Met at KCCVC with Paul, Johna Beech, June & J. Harris & decision made to set cabin there. Early Nov. 2019 -Nikiski Logsmith, Arnie Sellenger, begins construction of cabin in Nikiski. Several Meetings Nov . Dec. & January-Building Inspector Mike Wesson, Engineers Mike Reberg & Mark Fondren, Parks & Rec. Director Bob Frates, IT Director Dan Castimore, Paul Ostrander and City Attorney Scott Bloom. Feb . 4, 2019 -met at KCCVC with Johna Beech, Joe & June Harris to discuss site plan next to Visitor's Center and by late in day Joe and I agreed to move the Steam Engine to make way for the cabin leaving the Ward Sign in place . Feb . 10,2019 -Kenai Historical Society unanimously passes motion supporting this project . The Bush Doctor Cabin is a one room (15 X 16 Ft) log structure with low ceiling and a 6 Ft covered porch, much like the log houses Johnny Parks built in the 1950s-60s in Kenai. My family of five lived in a four room house of his when permanently moving to Kenai in 1967 . Emergencies often came to my door. 200 The intent is to move this cabin, which is being constructed in Nikiski, into the City in late May or early June this year and place i t on a sauna tube foundation near the Visitor's Center; following that my stored medical equipment would be moved into it along with other furnishings, and over the ensuing months formation of a Bush Doctor's Cabin/Museum would take place. Construction of the finished one room log cabin, moving the cabin into the City, construction of the foundation, placing the cabin on its foundation, and direct expense involved in relocating other historical items nearby is being funded by charitable irrevocable contributions, coming out of a Designated Fund which I have set up specifically for this purpose, within the Kenai Community Foundation (KCF); it is my desire there be no taxpayers' dollars spent directly on these. Future capital improvements to the cabin/museum I anticipate being funded by the same KCF Fund . I now have a request of the City, and the City Council, for a resolution: • Supporting acceptance of the project as outlined above, and/or as amended by Council, • Allowing myself, my wife, family descendents, and others I or they authorize to enter the cabin/museum anytime for the purpose of maintaining, updating, or replacing historical medical items to improve the museum; and also for showing the museum to others. • Providing in-kind services when needed and available, to assist with completion of this project and to beautify the landscape of the Visitors' Center area; and to assist with long term maintenance of the cabin/museum (e.g. landscaping, police security as with other City properties, moving heavy medical equipment, building repairs) My family and I anticipate being involved during my lifetime i n the upkeep and maintenance of the Kenai Bush Doctor's Cabin/Museum. The Charitable Fund established for this project and its future preservation should continue indefinitely unless the log building and its contents are destroyed . Kena i Comm Fndn Dr CabMus let of intent #2 2019.2.10 201 Kenai Historical Society Kenai, Alaska 99611 November 5, 2017 RE : Open Letter to Officers and Members of the Kenai Historical Society This is a personal request, as a member of the Kenai Historical Society, asking for consideration of the Society in accepting for display or temporary storage for future display, the entire package of historical medical equipment collected and used over the pa st 50 years in the City of Kenai by the Kenai Medical Center, a professional corporation I established following my arrival in Kenai in 1967. The Kenai Medical Center closed its doors and went out of business December 31, 2016. Some of the equipment I brought with me to Kenai after closing my medical practice in Juneau, other bits and pieces of historical significance were delivered to my office when Wildwood Air Force Station, established in _1954_, was closed in the 1970's. During the 1960' s and early 1970' s, Kenai' s population and citizens of the area had no access to local hospital care ..... there was no hospital. My being the only physician in town, I was blessed in coming here with having had the medical training and Boy Scout ingenuity to develop a medical practice, and staff an office, trying to meet the needs of a "Boom Town" with camper trailers and tar paper shacks on nearly every block. This meant things like taking every ambulance call in my office; developing an X-ray facility, a laboratory, and a surgical room; setting fractures, delivering over two hundred babies, doing many surgical procedures which today are performed in a hospital setting; devising physical therapy techniques and providing needed supplies for recovering patients; training local people to be medical assistants when there were no nurses, laboratory techs, X-ray techs; and meeting the needs of rapidly growing oil field industries in Nikiski and Cook lnlet ......... sending in daily accident victims. Then there were weekly air evacuations of injured or sick to Anchorage hospitals ..... and training attendents to go with pati ents. The reason for sharing the above is so Society members can better understand the nature of the antique items of medical equipment I have to donate; most of these I have had in storage 1 202 for 20-30 years . These include the setting of doctor's lab SO years ago ....... microscope with slides & staining chemicals for bacteria identification, equipment for making blood agar media to grow bacteria on, mini incubator; centrifuge for spinning blood down with pipettes, counting chamber & mixer for doing blood counts; mailing packages for blood chemistry tests in which it took 10 days to get results. Surgical equipment includes the antique Ritter surgical table with accessories used for Ear- Nose-Throat work, pelvic surgery, child deliveries, setting extremity fractures, and surgical procedures of many types; a great assortment of instruments of many types used for things like skin grafting, amputations, foreign body removals, gastric lavage; plaster & materials for setting fractures & a cast cutter; gowns, dressings & bandages. X-ray equipment -some has already been donated and is in one ofthe Historical cabins. Still stored for donation are X-ray view boxes and a series of X-rays showing fractured bones, gastric ulcers, colon polyps ........... all for display, which I have accumulated as a 1960s-1970s subspecialist in Radiology on the Kenai Peninsula, before the day of having a Radiologist . Physical therapy-crutches have also been donated and are in one of the Historical cabins. Still stored is the Jacuzzi whirlpool pump used for debriding wounds and restoring range-of-motion of extremity joints. PROPOSAL: If the Society is currently unable to provide a suitable historical building for displaying the above, and if the Society would provide suitable land for such, my family and I would be interested in donating the construction of a one room cabin, to house and display the above items in a manner emblematical of a Kenai doctor's office in the "Boom Town" it was SO years ago. This request and proposal is good thru December 31, this year. By then, I will need to seek other places in the Central Peninsula to meet my needs of disposing the above. I would like to keep this within the City of Kenai if possible, where I have lived and practiced medicine for more than SO years; this in itself is a rarity in today's world. Peter 0. Hansen, M . 0. P. 0 . Box 1390 Kenai, Alaska 99611 Home phone: 907-283-461S Kenai Historical Society Ltr 2017.11.3 2 203 .~!ti.¥ HL<·t~i::.J-...vxu.tg, 111.:. P.O. Box 1348 Kenai, AK 99611 February 11, 2019 kenaihistory@gmail.com This is a letter of support to the Kenai City Council from the Kenai Historical Society. The Kenai Historical Society agrees to support the Bush Doctor Historic Cabin project as presented to June and Joe Harris at a meeting with Dr. Pete Hanson on February 9, 2019; namely only the moving of the steam donkey winch. The Membership also approved support after the presentation by Dr. Pete H anson of the project at their Historical Society meeting on February 10, 2019. June Harris, President "'· I ~r-~l I . VU..--VLA_J_~ ~ Kenai Historical Society 204 205 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Bondurant, Airport Manager DATE: February 11, 2019 SUBJECT: February Mid-month Report 2018 Terminal Rehabilitation Project – Construction: The project has moved inside the terminal building with additional sections of the lobby contained and blocked off. Avis, Mossy Oak Properties, and Budget were moved to temporary locations at the south end the first week of January 2019. Airport Administration office has been moved to the south end by the cafe and Grant Aviation has been moved to the Administrative office. 2019 Airfield Marking, Crack Sealing, & Pavement Repair (Design) - Wince-Corthell-Bryson received the Notice to Proceed. The project will be designed and bid in April with work to begin in May 2019. In-house Activities – Heavy snowfall and icing conditions have dominated the Airport Operations crew’s time and energy over the past couple weeks; the runway has remained opened and available and the air carriers are very appreciative. Airport Administration continues to work with City Administration on revisions to the land leasing policy; specifically lands outside of the airport reserve. Airport staff is working on the FY2020 budget which is due February 15, 2019. February 10, 2019 - Airport Manager attended the Historical Society meeting at KCCVC and gave a presentation on the airport, the terminal project, and the mural. February 27 & 28, 2019 - Airport Manager and Assistant will be in Anchorage attending the 16th Annual DBE & Subcontractors Conference at the Crowne Plaza. This an outreach opportunity to inform DBE’s of contracting opportunities at the Kenai Airport. This is a requirement of parts 23 & 26 49 CFR. 206 attachment FINANCE DEPARTMENT MID-MONTH REPORT February 2019 To: Mayor Gabriel and Council Members Thru: Paul Ostrander, City Manager From: Terry Eubank, Finance Director Date: February 14, 2019 Re: Monthly Report During the past month much of the department’s focus has been on the preparation of the FY2020 Budget. Attached is the FY2020 budget preparation calendar. The Council is tentatively scheduled to receive its first draft of the FY2020 budget on April 3rd. There is much work to be done by all City departments in preparing the FY2020 budget over the next couple of months. The department has also been working on the amendments to code for changes to the Permanent Fund sections of the Kenai Municipal Code for the changes discussed at the January 16th Council work session. Introduction of an ordinance for these changes is expected at the March 6 Council meeting. 207 CITY OF KENAI FY 2020 BUDGET PREPARATION CALENDAR Date Facilitator Action December 19 Finance Director Revenue estimates to City Manager January 21 City Manager & Finance Director Budget guidance and submission requirements. January 22 Finance Director & City Manager Budget goals public meeting January 24 Finance Director Budget preparation packets distributed. February 1 Department Heads Overtime, new positions, and reclassification requests to City Manager. February 6 City Manager Personnel requests forwarded for analysis to Human Resource Director. February 15 Human Resource Director Personnel requests forwarded for analysis to Finance Director. February 15 Department Heads Department operational budget submission due to Finance. February 15 Department Heads Department Capital/Special Project requests due to Finance. February 22 Finance Director Personnel budget submitted to City Manager February 27 City Manager City Manager approval of personnel budget requests. March 4 Finance Director Consolidated operational budget submitted to City Manager. March 4 Finance Director Consolidated Capital/Special Project requests submitted to City Manager. March 7 – March 15 City Manager, Finance Director & Department Heads Departmental budget meetings with City Manager. April 3 Finance Director Draft budget distributed to Council. April 10 – May 4 City Manager, Finance Director & Department Heads Budget work sessions. Meeting dates to be determined by Council. April 24 Finance Director Budget Ordinance to City Clerk for May 1 Council packet. May 1 Finance Director Introduction of Budget Ordinance. May 8 Finance Director Publish notice of public hearing to adopt FY20 Budget. May 8 Finance Director Mill Rate Resolution to City Clerk for May 15 Council packet. May 15 Finance Director Public hearing and adoption of Budget Ordinance May 15 Finance Director Public hearing and approval of Mill Rate Resolution (Must be provided to KPB by 6/15). June 25 Finance Director Publication & distribution of Budget document. 208 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Jeff Tucker, Fire Chief DATE: February 12, 2019 SUBJECT: Fire Department Mid-Month Report ____________________________________________________________________________ January saw the department respond to 169 calls for service. In comparison during January of 2018 we responded to 113 calls for service. This equates to a 49.55% increase. During January the department’s Paramedics attended their Paramedic refresher training course. This 32 hour course is part of biennial training requirements. In addition department members attended a 12 hour 12-lead ECG interpretation course. Four department members completed their Hazardous Materials Operations course and testing. The department along with the Safe Kids Coalition hosted a car safety check event on January 24th. Chief Tucker and Battalion Chief Prior attended the Alaska Fire Chiefs Associations Leadership Summit in Juneau. This annual event includes association business meetings, presentations, training, and the ability for the attendees to meet with their legislative delegations. In addition the Governor hosted a reception at his mansion. Chief Tucker attended the Western Fire Chiefs Associations Community Solutions Summit in Seattle. This summit dealt with unhoused populations and how communities are finding solutions to help with this issue. 209 MEMORANDUM TO: Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Mary Jo Joiner, Library Director DATE: February 8, 2019 SUBJECT: Library Mid-Month Report ______________________________________________________________________ January Circulation Figures Adult Fiction 1,212 Internet Access 677 Adult Non-Fiction 938 iPad use 180 Young Adult Fiction 163 Games 2 Periodicals 62 Room Booking 194 Juvenile Fiction 400 Music 13 Juvenile Non-Fiction 310 DVDs 2,090 Easy Fiction 1,005 Audio books 92 Easy Non-Fiction 261 Miscellaneous 100 Interlibrary Loan 0 Computer Programs Books – Consortium 288 Media – Consortium 137 Total Print 4,639 Total Non-Print 3,485 Total Circulation 1/19 7,242 Downloadable Audio 654 Total Circulation 1/18 8,915 Downloadable EBooks 739 % change -19%* % change in downloadable +42%* In-House circulation 396 210 Page 2 of 2 Library Mid-Month Report Library Door Count……. 8,057 Income Fines $ 362.40 Xerox 145.90 Lost/Damaged 27.96 Test Proctoring Fee 0.00 Printing 190.00 Other 0.00 Total income $ 726.26 In January 3 volunteers worked about 24 hours. There were 16 children’s programs with 375 total in attendance, and 16 adult and family programs with 118 attendees. In January we ordered 3 interlibrary loan items not available through the consortium and received 2 items, we returned 2 item did not loan any items to other libraries who are out of state or not in the consortium. *The decline in circulation is largely due to a decline in circulation of DVDs. Circulation of print materials shows no appreciable decline at all. I believe that more people are now streaming and/or downloading movies. *Note the corresponding, actually greater increase in use of downloadable materials. Library Cards Issued January Clam Gulch 1 Kasilof 2 Kenai 20 Nikiski 8 Non-Resident 2 Other Peninsula 5 Soldotna 6 Total 44 211 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: February 12, 2019 SUBJECT: Planning and Zoning January 2019 Report ____________________________________________________________________________ Below are a summary of activity in January 2019 for the Planning and Zoning Department. Planning and Zoning Commission Agenda Items and Resolutions The Planning and Zoning Commission approved of one plat: Resolution PZ2018-30 - Original Preliminary Plat of Thompson Park Donaghe Replat submitted by McLane Consulting, Inc., P.O. Box 468, Soldotna, Alaska 99669, on behalf of the Thomas Donaghe, 3305 Togiak Street, Kenai, Alaska 99611 Lands, Economic Development, and Outreach The temporary lands staff-person is making progress research City-owned lands. The City Planner has made several updates to the data tracking tools to facilitate the work of the temporary lands staff-person. The City Planner submitted an application for federal funding to construct a pedestrian pathway along Bridge Access Road from its intersection with Beaver Loop Road to its intersection with the Kenai Spur Highway. The City Planner met with representatives of the citizen group Biking in Kenai and Soldotna (BIK&S), spoke on KDDL radio’s Kenai Conversation, and communicated with several community members for the submission of this application. City staff has been working with the Kenai Chamber of Commerce to update the 2019 City of Kenai Visitors Guide—the new guide is now available. 212 Page 2 of 2 Planning and Zoning Mid -Month Report The City Planner, Planning Assistant, and several Planning and Zoning Commissioners attended the Alaska Chapter of the American Planning Association Conference. The City Planner attended a board retreat for the Alaska Chapter of the American Planning Association. The City Planner attended the Kenai Peninsula Industry Outlook Forum. Plans and Reports The City Planner communicated with a consultant who will be assisting the City to update the local hazard mitigation plan. The City Planner met to discuss the Central and Southern Kenai Peninsula Coordinated Public Transit-Human Services Transportation Plan. Code Enforcement (Complaint Responses and Community Outreach Measures) 3 cases were opened in January 2019: • 2 – Junked or Abandoned Vehicles • 1 – Trash 213 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Robert J. Frates, Parks & Recreation Director DATE: February 11, 2019 SUBJECT: Mid-month Activity Report – January 2019 ____________________________________________________________________________ A total of 140.25 hours of ice were reserved at the MPF for the month of January. This compares to 118.50 hours reserved last year during this time. The reason for the big increase was partly due to the extra games picked up during the Peninsula Winter Games. The Kenai Central High School Hockey season came to an end January 26. Staff members Ed Brusven, Bob Frates and Charlotte Thurman attended infectious disease annual training provided by the fire department. The new treadmill for the Recreation Center was installed on February 11. This unit offers a touch screen console and additional features not found on the older units. The new treadmill will be a great addition and patrons are excited to use it. A total of 16 hours were logged maintaining Daubenspeck pond. It has been challenging keeping the pond clear of snow this winter while utilizing the ATV and plow. The larger issue has been the piling and accumulation of snow on the ice, which creates extra weight and strain along the edges of the pond. Staff spent 6.5 hours clearing snow from various parking lots, 63.25 hours maintaining facility sidewalks, 29.50 hours removing snow from hydrants and 45.5 hours grooming the Kenai Nordic Trails. Due to weather conditions on January 25, both the Middle School and High Schools home meets were cancelled. Many thanks to staff members Charlotte Thurman and Ed Brusven for constructing two 5’x8’ soccer goals. These will be placed at 4th Ave. Park this summer. 214 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Kathy Romain, Senior Center Director DATE: February 11, 2019 SUBJECT: January 2019 Monthly Report Congregate Meals Served (Dining Room) 1,365 Home Delivered Meals 1,418 Volunteer Hours (26 individuals) 478 Unassisted Transportation Rides 390 Assisted Transportation Rides 125 Social Security Video Service 56 individuals Senior Center Rentals 1 Memorial Service Total Events Sign Ins (through MySeniorCenter) 2,381 Total Unduplicated Participants (through MySeniorCenter) 229 • January activities included a No-Host Dinner to Louie’s Restaurant. The dinner was enjoyed by over 20 attendees, complete with a special menu just for us! • Spotlighting Volunteer Mark Weathers this month as he is a regular face around the Senior Center. This young man teaches private piano lessons in the community and donates his time every other Thursday afternoon to teach three seniors right here at the Center! He also donates his time on Friday afternoons in the Senior Center Computer Lab for assistance with computers, smart phones, tablets or laptops. • Individuals stop by the Center for information daily for many different forms for: PFD, Senior Benefits, Heating Assistance, Medicare, Medicaid, and Social Security. Many seniors are finding even filling out their PFD applications difficult as the forms have changed this year. • We continue to be a Video Service Delivery site for Social Security (SSA). Two mornings each month the public visits the Senior Center to talk directly to a representative in Anchorage via video telephone. Back in 2009, we were one of the first sites in Alaska to start this program. This last year, the SSA updated our Video/Computer Phone to better adapt for ID screening and birth certificate verification. For almost ten years, one of our seniors has volunteered these days to host the project and guide individuals to the private conferencing space in our Computer Lab. Each quarter we are seeing over 150 individuals from the community use this valuable service. Not only is the vital for our area, but we are able to establish ourselves and help seniors we may not have had contact with otherwise. 215 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager THROUGH: Dave Ross, Police Chief FROM: Jessica “JJ” Hendrickson, Animal Control Chief DATE: February 4, 2019 SUBJECT: January 2019 Monthly Report This month the Kenai Animal Shelter took in 73 animals. Animal intake and disposition: DOGS: INTAKE 21 DISPOSITION 21 Waiver 13 Adopted 10 Stray 6 Euthanized 0 Impound 1 Claimed 4 Protective Custody 0 Field Release 0 Quarantine 0 Transferred to Rescue 7 Other Intakes 1 Other Dispositions 0 CATS: INTAKE 48 DISPOSITION 53 Waiver 14 Adopted 18 Stray 33 Euthanized 5 Impound 0 Claimed 0 Protective Custody 0 Field Release 0 Quarantine 0 Transferred to Rescue 30 Other Intakes 1 Other Dispositions 0 OTHER ANIMALS: INTAKE 4 DISPOSITION 4 Rabbit 3 Rabbit 3 Goat 1 Goat 1 DOA: 6 OTHER STATISTICS: Dog 3 Licenses (City of Kenai Dog Licenses) 85 216 Page 2 of 2 Animal Control Mid-Month Report 3 Citations 10 Animal dropped with After Hours (days we are closed but cleaning and with KPD) 85.30 Volunteer Hours Logged 18 Animals are known borough animals 13 Field Investigations & patrols Statistical Data: 43 2017 YTD Intakes 55 2018 YTD Intakes 73 2019 YTD Intakes Cat 3 Microchips (Dog and Cat) 1 217 MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: David Ross, Police Chief DATE: February 7, 2018 SUBJECT: Police & Communications Department Activity – January 2019 Police handled 643 calls for service in January. Dispatch received 265 9-1-1 calls, 193 of which came from cell phones. Officers made 43 arrests. Traffic enforcement resulted in 97 traffic contacts and 36 traffic citations. There were 4 DUI arrests (1 Felony). Officers investigated 11 motor vehicle crashes. There were no collisions involving moose. There were two collisions involving drugs or alcohol. January training included: Two investigators attended two days of strangulation investigation training in Anchorage. The KPD officer on the SERT team attended two days of training. Two officers attended datamaster supervisor training in Anchorage. One new officer started the lateral training academy in Sitka. One dispatcher attended EMD certification training in Wasilla. In addition to handling police calls in various school, the School Resource Officer has been teaching DARE classes at Kaleidoscope during the month of January. 643 265 670 300 611 312 0 200 400 600 800 Total Police Service Calls 911 Calls Received 2019(Jan 1 - Jan 31)2018(Jan 1 - Jan 31)2017(Jan1 - Jan 31) 218 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000 .00 FOR COUNCIL REVIEW COUNCIL MEETING OF: FEBRUARY 20, 2019 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT CONNIE'S FLOWERS SUMMER FLOWERS, LABOR RECREATION OPERATING SUPPLIES 12.482.00 OUTLAW BODY & PAINT REPAIR DAMAGE TO VEHICLE SHOP REPAIR & MAINTENANCE 4 ,814 .90 J&D PAINTING WALLPAPER REMOVAL, PAINTING CONG. HOUSING REPAIR & MAINTENANCE 3 ,800.00 BEACON OHSS PROPANE FOR ARFF TRAINING AIRPORT OPERATING SUPPLIES 5,000.00 219 INSIDE THIS ISSUE: • PRESERVING HISTORY • GROWING UP ON THE KENAI update • KENAI INCORPORTIO his- tory • KENAI SENIOR COOK- BOOK application • JANUARY 2019 minutes • ANNOUNCEMENTS Officers: President—June Harris Vice President—Virginia Walters Secretary—Sharon Fisher Treasurer—Ron Fullinck Board of Directors: Jim Glendenning1 Joe Harris Henry Knackstedt Bill Nelson Marion Nickelson Frosty Walters KENAI HISTORICAL SOCIETY NEWSLETTER Written by Sharon Fisher If you would like to contribute ideas and information to the newsletter, please contact me at 776-8254. I welcome and would entertain any ideas you may have for articles, and would appreciate being contacted if you see errors in the information con- tained in the newsletter. Preserving History Please pay special attention to page 4 of this newsletter as here is another opportunity to preserve the history of our area. Page 2 updates us all on the progress by the group “A Work in Progress-Growing up on the Kenai”. This is such great news for all those of us who have wished for a sequel to “Once Upon the Kenai”. These folks are the children of the people who had stories in “Once Upon the Kenai”, and it further explores the growth of the Central Kenai Peninsula. I am in the beginning stages (have been reading for several months now) of putting together an exhibit to capture the his- tory of the commercial fishing as it pertains to the Kenai Riv- er. I have created a plan of what this exhibit will consist of and I have a pretty clear vision in my head of how it will eventually look. I am seeking information on putting together a minia- ture diorama of the mouth of the Kenai that will incorporated early canneries, fish traps, and ships/boats. We have the ma- terials to build a background wall to hold information that we acquire, and we have materials to create the foundation. Now all we need is to get the thing built. If you know of someone with experience in building dioramas/miniatures, please let me know. January 2019 Kenai Historical Society P.O. Box 1348 Kenai, Alaska 99611 220 2 I’m happy to report the following, posted on their facebook page by Jerry Faulkner. Another Birthday has come and gone. A Work in Progress Growing up on the Kenai is now three years old. Since then the membership has exploded to a little over five thousand two hundred members. Initially the page was created to reunite long lost friends and classmates of Kenai Central High and to share our stories of growing up in a very unique community. Because we decided we were somewhat exclusionary and elitist we invited other folks on the peninsula to join the party. Since then it has blossomed into a whole lot more. Shortly after the page was created, we began to realize the page was a stepping stone to a much larger and expansive endeavor. Thus the idea of publishing these sto- ries evolved. Because none of us had any spare change in our wallets or extra time on our hands for such an undertaking, we dawned on the idea of forming a nonprofit corporation to secure the resources we needed for this undertaking. Our vision was to create a lasting historical account of growing up on the Kenai Peninsula, market the publication, and to use the proceeds to give back and enrich the com- munity we so passionately loved. Three years later we have never lost sight of this vision and its mis- sion. Towards that end, a nonprofit corporation Growing Up On the Kenai has been established with the State of Alaska and we are currently submitting the paperwork to be formally recognized as a non- profit corporate entity with the IRS. In addition, the corporate leadership is in place and a very gifted team of writers has been assembled and are anxiously poised to create a work of art. The corporate leadership is: President Mike Gallagher Vice President Roxanne Gee Ockey Secretary Holly Deitrick Treasurer Kathi Miller Reynolds Board of Directors: Petria Falkenberg Glenn Tauriainen Kathy Stewart Ames Jerry Faulkner The Writing Team: Clark Flair Managing Editor Kathy Stewart Ames Writers Liaison Jim Taylor Photography Mary Mullen Shana Loshbaugh Holly Deitrick Corporate Board Member Jerry Faulkner Corporate Board Member This ship is sailing and this dream is finally starting to take form. At this point in time we are seeking additional volunteers to fulfill certain tasks. We are seeking individuals in the Kenai area to assist with technological and the computer aspects of the project. We are also looking for additional volunteers just to join us on our happy little journey. I am sure we can find a place for you. To follow this facebook page, you have to join. Search for it by title or the following address: https://www.facebook.com/groups/1506702866291449/ If you are interested in working with them, contact me and I will put you in touch with one of them. 221 3 From Jim Taylor: I purchased this original photo from a newspaper archive. I think its an historically important im- age so tagging Sharon Fisher for her archives. One of the members of our group is in this photo, Donnis Thompson. The photo was taken March, 1960 and just a few months later...Kenai be- came incorporated as a first-class city in May, 1960. Sharon Fisher—-Replies to Jim’s posting follow: John Sharon Williams Man in upper left hand corner is Chester Cone. X I see Stan Thompson... JW Wally Page The man behind Donna Thompson ( with the child) looks to be Carl Seaman?? Kathleen McGrady The man far behind letter "L" is Tru McGrady, woman behind letter "A" is Faye Archer, the woman behind letter "E" is Kay TumSuden—-Kay is wearing fur coat. The man left of the letter "L" holding the sign in front is Billy McCann (not sure I spelled last name right). Man behind "T" is Stan Thompson Carl Tauriainen The woman on the left looks like I remember Jesse Munson, but I'm not certain. I'm not sure, but I think next to Betty Norman and behind Billy McCann looks like it could be Bud Dye. Petria Falkenberg I think that is Betty Norman next to Jesse. 222 4 WANTED RECIPES STORIES PICTURES The Kenai Senior Connections is collecting recipes for a Kenai heritage cookbook. Here ’s your chance to share your Kenai or Alaska story. Categories include, but are not limited to: Main Dishes Jams and Jellies Desserts Berries and Rhubarb Side Dishes Salads Fish and Game PLEASE USE THE SPACE BELOW FOR YOUR RECIPES: You may turn your recipes in at the Kenai Senior Center or send them to the contact information below: DEADLINE FOR TURNING IN RECIPES IS FEBRUARY 1, 2019. If you have questions please contact Marion Nickelson: dmpbdk@gmail.com 295-0446 1133 Walnut Ave, Kenai, Alaska 99611 223 5 MINUTES *** JANUARY 2019 On Sunday, January 6, 2019, the Kenai Historical Society met at the Kenai Visitor ’s and Convention Center in Kenai. Vice President Virginia Walters opened the meeting at 1:32 p.m. The minutes of the November 2018 meeting were reviewed by the membership and approved. Ron Full- inck moved, and Dave Thompson seconded a motion to approve the report. The treasure report shows the Alaska USA checking balance stands at $12,985.23 and our Credit Union Money Market account balance is $10,317.98. The Edward Jones Account as of September 30, 2018 is $26,383.15 and a cash value of $842.05 and invested amount of $25,541.10 The Kenai Community Foundation balance as of October 30, 2018 stands at $60,000.56 (from $50,000.00 invested) This re- port was approved unanimously. Old Business: The Cabin Fund Balance of $12,992.95, with $5050.00 salary for the 2019 summer cabin guide. Dam- ages from the breaking of a cabin window have been received from both parties. The Civic League build- ing lease has been changed to not allowing any subletting of the building. New Business: Vice President Walters announced the election of officers. There were no forthcoming nominations for the offices of President, Vice President, or Secretary, and the following have consented to continue in their positions: June Harris as President, Virginia Walters as Vice President, and Sharon Fisher as Sec- retary. Ron Fullinck volunteered to serve as treasurer. Kari Mohn moved and Kit Hill 2 nd that the slate of officers be approved unanimously. Motion passed. The Scholarship Committee is in need of some new members, and Kitty Thompson (resigning commit- tee chair) explained the duties. Kathy Heindl volunteered to serve. With the passing of Board Member Betty Idleman, Marion Nicholson volunteered to serve. Marion Nicholson announced that the Kenai Senior Connections is seeking recipes for their cookbook, a Kenai Heritage cookbook, requesting also any stories or photos that people would care to have included. A form will be included in the next newsletter---the deadline of Feb 1, 2019 is likely to be extended. Our next meeting is February 10, 2019. Respectfully submitted by Sharon Fisher, Secretary. P.O. Box 1348 Kenai, AK 99611 kenaihistory@gmail.com 224 KENAI HISTORIC SOCIETY Our Organization There has been a Historic Society since the days before Kenai becom- ing a city. The Society was formed a few years before Statehood in 1959, and then went inactive in the early 60’s. It restarted in the latter part of the 60’s and has met regularly since. The Society had a museum in Fort Kenay for some years, and then continued to meet after that closed. The non-profit Society implemented and operates the Kenai Historic Cabins Park, open for tours in the summer months. We have office space at the Moosemeat John cabin, but are not open to the public in that building. Our member meetings are Sept., Nov., Dec., Jan., Feb., Mar., and April at the Kenai Visitor Center. For Oct. and May, we meet with the Kenai Peninsula Historical Association. Please check the Meet- ings and Announcements section on this page for date information. MEETINGS AND ANNOUNCEMENTS Kenai Historical Society Monthly Meeting February 10, 2019—1:30 p.m. Kenai Visitor Center PLEASE PLACE STAMP HERE Kenai Historic Society P.O. Box 1348 Kenai, AK 99611 Phone: 283-1946 Phone: 776-8254 E-mail: ak.kyaker@yahoo.com www.facebook.com/Kenai- Historical-Society 225 FEBRUARY 20, 2019 CITY COUNCIL MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add to item D.4. Resolution No. 2019-13 City Attorney • Amendment Memo Add to item F.1. Ordinance No. 3049-2019 • Letter from FAA City Manager MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council FROM: Scott Bloom, City Attorney DATE: February 20, 2019 SUBJECT: Resolution No. 2019-13 – Consent to Sublease ____________________________________________________________________________ I recommend an amendment to Article IV Section 12- Lease of Units, of the Declaration. The current language requires the City to consent to each unit owner’s potential lease to a third party. Rather than burden Council with consenting to each potential lease of a unit, I think the City should instead have notification and a right to object. This allows the City to object, for example if the lease somehow violated a FAA airport requirement, but does not require Council action if the lease is not objectionable. The following language change is recommended to facilitate this: Any unit owner may lease his their unit to a third party, with prior written notice to the Association and consent by the Association must provide written notice to the City of Kenai Airport Director,. The City shall have the right to object to the lease within 30 days of receipt of written notification for reasonable cause. Which consent shall not be unreasonable withheld. Such a lease must be in writing and shall provide that the failure to comply in all respects with the provisions of this Declaration, the Association By laws, the City of Kenai Lease, or the unit owner’s Proprietary Lease shall be a default under the terms of the lease. A lessee of such a unit shall not have any rights in the Association, and the unit owner shall retain all rights as owner, unless the owner sells all his their interest in the unit to the renter as allowed by this Declaration, and the renter becomes a unit owner as defined in Article I, Section 3. It is requested that the following motion be made to accomplish this: “I move to amend Section 1. Of Resolution 2019-13 to read: Section 1. That the City Manager is authorize to execute the attached Consent to Sublease between Legacy Electric, LLC and The Peninsula Hangar Association and the Consent to Establishment of a Leasehold Common Interest Community subject to the Page 2 of 2 Resolution No. 2018-13 terms of the Lease between the City of Kenai and Legacy Electric, LLC and a change to Article IV Section 12- Lease of Units to read: Any unit owner may lease their unit to a third party, with prior written notice to the Association and the Association must provide written notice to the City of Kenai Airport Director. The City shall have the right to object to the lease within 30 days of receipt of written notification for reasonable cause. Such a lease must be in writing and shall provide that the failure to comply in all respects with the provisions of this Declaration, the Association By laws, the City of Kenai Lease, or the unit owner’s Proprietary Lease shall be a default under the terms of the lease. A lessee of such a unit shall not have any rights in the Association, and the unit owner shall retain all rights as owner, unless the owner sells all their interest in the unit to the renter as allowed by this Declaration, and the renter becomes a unit owner as defined in Article I, Section 3.” 1 Northwest Mountain Region Western Logistics Service Area 2200 S 216th St Des Moines, WA 98198 01/31/2019 City of Kenai 210 Fidalgo Avenue Kenai, AK 99611-7794 RE: Kenai AFSS Project (Lease #DTFAWN-13-L-00002) Dear Mr. Scott Curtin, This letter is to inform you that the FAA has secured funds to reimburse the City of Kenai for the requested amount of $43,972.26 once the project is complete. Project work and expectations includes the following: 1) Coordination with the FAA FSS Lead Engineer, POC throughout the duration of the construction. 2) Mobilization/Demobilization 3) Construction of Training Room 120, Shop#129, Recording Room 131, and Training Lab #133 for enlargement of the Classrooms#1 and 2. 4) Painting of the walls and ceilings for item#2. 5) Provision of lighting, electrical and data jack wiring and outlets for item#2. 6) Provision of proper ventilation and heating and insulation for item#2. 7) Provision of carpeting for item#2. 8) Replacement of sliding pocket doors with a solid wall in the BreakRoom where the breakroom wall separates another office space for a new space to be used for instructor offices. 9) Installation of roof hatch rails. 10) Compliance of all work with the current industry standards such as NEC NFPA 70, International Building Code (IBC) 2006, OSHA Construction Industry Standard, ASHRAE Standard 62.1 Ventilation for Acceptable Indoor Air Quality, ASHRAE Standard 160 Criteria for Moisture-Control Design Analysis in Buildings, ASHRAE Standard 169 Climatic Data for Building Design Standards, ASHRAE Guideline 10 Interactions Affecting the Achievement of Acceptable Indoor Environments, FAA –C-1217F, Electrical Interior Standard, FAA Environmental and Occupational Safety and Health (EOSH) Checklist, and Electrical Lockout/Tagout (LO/TO). 11) Application of safety precautions such as proper handling of materials and wearing of PPE. 12) Provision of documentation such as the as-built drawings, asbestos testing/abatement results, lead base testing/results, EOSH filled out forms, FAA Energized Electrical Work Permit (EEWP) form, Material Safety Data Sheet (MSDS), Construction Acceptance Inspection (CAI)/punch list, and current first aid/CPR certificates of construction personnel. 13) Cleaning up after each day’s work. When the FAA accepts the project as complete, an invoice will need to be submitted for payment to the City of Kenai up to the amount requested above. Any extra work that will require additional funds will need to be agreed to by the FAA before the additional work begins. 2 If you require any additional information, please contact me (206) 231-3056 or email me at Cori.Beekman@faa.gov Sincerely, Cori Beekman Real Estate Contracting Officer ACTION AGENDA KENAI CITY COUNC IL -REGULAR MEETING FEBRUARY 20, 2019-6:00 P.M. KENAI CITY COUNC IL CHAM BERS 210 FIDALGO AVE., KE NAI, A K 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. SCHEDU LED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY. Ordinance No. 3050-2019 -Accepting and Appropriating a Federal Grant from the Inst itute of Museum and Library Services Passed through the Alaska State Lib rary for Employee Travel and Training . (Administration) 2. ENACTED UNANIMOUSLY. Ordinance No. 3051-2019 -Accepting and Appropriating Private Donations to the Kenai Animal Shelter for the Humane Capture and Treatment of Animals. (Admin istration) 3. ENACTED UNA NIM OUSL Y AS AMENDE D. Ordinance No. 3052-2019 -Amending Provisions in Kena i Municipal Code Title 3-Animal Control , Including the Definition of "Vicious Animal " in Kenai Municipal Code 3.05.010-Definitions, Mandatory Court Appea rance Requirements in Kenai Municipal Code 3.05.070-Citation Procedure, Including a New Offense in Kenai Municipal Code 3 .10 .020 -Control and Confinement of Animals, and Ma k ing Corresponding Changes to Kenai Municipal Code 13 .10 .015 -Minor Offense Fine Schedule and the City's Uniform Minor Offense Table. (Legal) 4 . ADOPTED UNA NIMOUSLY A S AME NDED. Reso luti on No. 2019-13 -Consent ing to the Declaration of Peninsula Hangar Association (a Common Interest Ownership Cooperative) and Sublease between Legacy Electric , LLC and the Pen insula Hangar Ken ai City Council Meeting Februa ry 20 , 2019 Pag e 1 of3 Association for Lot 2, Block 1, General Aviation Apron within the Airport Reserve. (Legal) E. MINUTES 1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of February 6, 2019 F. UNFINISHED BUSINESS 1. ENACTED UNANIMOUSLY. Ordinance No. 3049-2019 -Increasing Estimated Revenues and Appropriations in the Airport Improvements Capital Project Fund for Tenant Requested Improvements to the Automated Flight Service Station. (Administration) [Clerk 's Note: This Item was Postponed to this Meeting from the February 6, 2019 Meeting; A Motion to Enact is on the Floor.] G. NEW BUSINESS 1. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Bills to be Ratified. (Administration) 2 . APPROVED BY THE CONSENT AGENDA. *Action/Approval -Purchase Orders Exceeding $15,000. (Administration) 3. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Non-Objection to Liquor License Renewal for Pizza Paradises. (City Clerk) 4. APPROVED BY THE CONSENT AGENDA. *Action/Approval -Non-Objection to New Marijuana Product Manufacturing License for Red Run Cannabis Cultivators, LLC . (City Clerk) 5. INTRODUCED/PUBLIC HEARING SET FOR 3120119. *Ordinance No. 3053-2019- lncreasing Estimated Revenues and Appropriations in the General Fund for the Donation of a Bush Doctor's Historic Cabin from Doctor Peter Hansen and Kenai Community Foundation and Supporting the Placement of the Cabin Adjacent to the Kenai Visitor Center. (Legal) 6. Discussion -Amazon Tax Collection in the 99611 Zip Code . (Vice Mayor Navarre) 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 Kenai City Council Meeting February 20, 2019 Page 2 of 3 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 M . EXECUTIVE SESSION -None. N. PENDING ITEMS 1. Ordinance No. 3048-2019 -Amending Kenai Municipal Code Chapter 5.25, Mobile Food Vendors , to Revise Application Requirements, License Terms, and Business Conduct Requirements and Make Other Housekeeping Amendments. (City Clerk) [Clerk's Note: During the 02106119 Meeting, this Item was Postponed to the 03106119 Meeting; a Motion to Enact is On the Floor.] 0. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review 2. Kenai Historical Society Newsletter -January 2019 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. Kenai City Council Meeting February 20, 2019 Page 3 of 3 CITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE FEBRUARY 20, 2019 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY G IVEN the City of Kenai Council passed the following Ordinance(s) and/or Resolution(s) at the above-referenced meeting. 1. ENACTED UNANIMOUSLY. Ordinance No . 3049-2019 -Increasing Estimated Revenues and Appropriations in the Airport Improvements Capital Project Fund for Tenant Requested Improvements to the Automated Flight Service Station. (Administration) 2. ENACTED UNANIMOUSLY. Ordinance No . 3050-2019 -Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services Passed through the Alaska State Library for Employee Travel and Training. (Administration) 3 . ENACTED UNANIMOUSLY. Ordinance No. 3051-2019 -Accepting and Appropriating Private Donations to the Kenai Animal Shelter for the Humane Capture and Treatment of Animals . (Administration) 4. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3052-2019 -Amending Provisions in Kenai Municipal Code Title 3-Animal Control, Including the Definition of "Vicious Animal" in Kenai Municipal Code 3.05 .010-Definitions, Mandatory Court Appearance Requirements in Kenai Municipal Code 3.05.070-Citation Procedure, Including a New Offense in Kenai Municipal Code 3.10 .020 -Control and Confinement of Animals, and Making Corresponding Changes to Kenai Municipal Code 13.10.015 -Minor Offense Fine Schedule and the City's Uniform Minor Offense Table . (Legal) 5. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2019-13-Consenting to the Declaration of Peninsula Hangar Association (a Common Interest Ownership Cooperative) and Sublease between Legacy Electric, LLC and the Peninsula Hangar Association for Lot 2, Block 1, General Aviation Apron within the Airport Reserve. (Legal) Copies of the ordinances and/or resolut ions are available in the Office of the Kenai City Clerk. Please be advised, subject to legal limitations , ordinances and/or resolutions may have been amended by the Council prior to adoption without further public notice . NOTICE OF PUBLIC HEARING FEBRUARY 20, 2019 CITY OF KENAI COUNCIL MEETING NOTICE IS HEREBY GIVEN the City Council of the City of Kenai will conduct a public hearing on the following Ordinance(s) and/or Resolution(s) on the above-noted meeting date : 1. Ordinance No. 3050-2019 -Accepting and Appropriating a Federal Grant from the Institute of Museum and Library Services Passed through the Alaska State Library for Employee Travel and Training. (Administration) 2. Ordinance No. 3051-2019 -Accepting and Appropriating Private Donations to the Kenai Animal Shelter for the Humane Capture and Treatment of Animals. (Administration) 3. Ordinance No. 3052-2019 -Amending Provisions in Kenai Municipal Code Title 3- Animal Control , Including the Definition of "Vicious Animal " in Kenai Municipal Code 3.05.010-Definitions, Mandatory Court Appearance Requirements in Kenai Municipal Code 3.05.070-Citation Procedure, Includ ing a New Offense in Kenai Municipal Code 3.10 .020 -Control and Confinement of Animals , and Making Corresponding Changes to Kenai Municipal Code 13.10.015 -Minor Offense Fine Schedule and the City's Uniform Minor Offense Table . (Legal) 4 . Resolution No. 2019-13 -Consenting to the Declaration of Peninsula Hangar Association (a Common Interest Ownership Cooperative) and Sublease between Legacy Electric, LLC and the Peninsula Hangar Association for Lot 2 , Block 1, General Aviation Apron within the Airport Reserve . (Legal) The public hearing will commence at 6:00 p .m., or as soon thereafter as business permits, in the Kenai City Council Chambers, 210 Fida Igo Avenue , Ken ai, Alaska , 99611. All interested persons are invited to attend the meeting and participate in the public d iscussion . Written comments may be sent to the Kenai City Council , c/o Kenai City Clerk , 210 Fidalgo Avenue , Kenai , AK, 99611 . Copies of the ordinances and/or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Please be advised, subject to legal limitations, ordinances and/or resolutions may be amended by the Council prior to adoption without further public n tice.