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HomeMy WebLinkAbout2019-06-13 Airport Commission Packet KENAI AIRPORT COMMISSION REGULAR MEETING JUNE 13, 2019 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city 1. CALL TO ORDER a. Pledge of Allegiance b. Roll Call c. Agenda Approval 2. SCHEDULED PUBLIC COMMENT (Public comment limited to ten (10) minutes per speaker) 3. UNSCHEDULED PUBLIC COMMENT (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) 4. APPROVAL OF MEETING SUMMARY a. March 14, 2019 b. April 11, 2019 5. UNFINISHED BUSINESS a. Discussion – FY2020 Budget 6. NEW BUSINESS a. Discussion/Recommendation – Special Use Permit to Alaska Air Fuel, Inc. b. Discussion/Recommendation – Special Use Permit to Crowley Fuels, LLC c. Discussion/Recommendation – Special Use Permit to Empire Airlines, Inc. d. Discussion/Recommendation – Special Use Permit to Everts Air Fuel, Inc. e. Discussion/Recommendation – Special Use Permit to United Parcel Service Co. 7. REPORTS a. Airport Manager b. City Council Liaison 8. NEXT MEETING ATTENDANCE NOTIFICATION – July 11, 2019 9. COMMISSIONER COMMENTS AND QUESTIONS 10. ADDITIONAL PUBLIC COMMENT 11. INFORMATION ITEMS a. April 2019 Mid-Month Report b. May 2019 Mid-Month Report c. FAA Alaskan Region Airport Division Airport Improvement Program FY1982-FY2018 d. April 2019 Kenai Historical Society Newsletter e. May 7, 2019 FAA Letter on Unmanned Aircraft Systems f. April 2019 Enplanements g. 2019 Float Plane Basin Activity 12. ADJOURNMENT **PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING** JACQUELYN -- 283-8231 OR, MARY -- 283-8281 KENAI AIRPORT COMMISSION REGULAR MEETING MARCH 14, 2019 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Feeken called the meeting to order at 6:00 p.m. a. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners Present: Commissioners Absent: J. Zirul, G. Feeken, J. Bielefeld, P. Minelga, K. Dodge, D. Pitts Staff/Council Liaison Present: Airport Manager M. Bondurant, Council Member G. Pettey A quorum was present. c. Agenda Approval MOTION: Commissioner Bielefeld MOVED to approve the agenda; Commissioner Pitts SECONDED the motion. There were no objections; SO ORDERED. 2. SCHEDULED PUBLIC COMMENT – None. 3. UNSCHEDULED PUBLIC COMMENT – None. 4. APPROVAL OF MEETING SUMMARY a. January 10, 2019 MOTION: Commissioner Dodge MOVED to approve the meeting summary of January 10, 2019 and Commissioner Bielefeld SECONDED the motion. There were no objections; SO ORDERED. 5. UNFINISHED BUSINESS – None. 6. NEW BUSINESS Page 3 of 126 ____________________________________________________________________________________ Airport Commission Meeting Page 2 of 2 March 14, 2019 a. Discussion/Recommendation – Special Use Permit to State of Alaska/DNR Forestry MOTION: Commissioner Pitts MOVED to recommend Council approve the Special Use Permit to the State of Alaska Department of Natural Resources-Forestry and Commissioner Dodge SECONDED the motion. There were no objections; SO ORDERED. 7. REPORTS a. Airport Manager – Bondurant reported on the activities at the airport, including an update on the Terminal Rehabilitation project and snow removal. b. City Council Liaison – Pettey reported on the March 6 City Council meeting actions. 8. NEXT MEETING ATTENDANCE NOTIFICATION – April 11, 2019 9. COMMISSIONER COMMENTS AND QUESTIONS Commissioners Bielefeld and Pitts complimented the Operations crew on first-rate snow removal of the Airport runway and apron. Commissioner Minelga thanked the Civil Air Patrol for sanding and plowing. 10. ADDITIONAL PUBLIC COMMENT – None. 11. INFORMATION ITEMS a. January 2019 Mid-Month Report b. February 2019 Mid-Month Report c. March 2019 Mid-Month Report d. January 2019 Enplanements 12. ADJOURNMENT There being no further business before the Commission, the meeting was adjourned at 6:24 p.m. Meeting summary prepared and submitted by: ___________________________________ Jacquelyn LaPlante Deputy City Clerk Page 4 of 126 KENAI AIRPORT COMMISSION REGULAR MEETING APRIL 11, 2019 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS CHAIR GLENDA FEEKEN, PRESIDING MEETING SUMMARY 1. CALL TO ORDER Chair Feeken called the meeting to order at 6:08 p.m. a. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. b. Roll was confirmed as follows: Commissioners Present: Commissioners Absent: G. Feeken, J. Bielefeld, P. Minelga J. Zirul, K. Dodge, D. Pitts Staff/Council Liaison Present: Airport Manager M. Bondurant, Council Member G. Pettey No quorum was present. c. Agenda Approval 2. SCHEDULED PUBLIC COMMENT 3. UNSCHEDULED PUBLIC COMMENT 4. APPROVAL OF MEETING SUMMARY a. March 14, 2019 5. UNFINISHED BUSINESS – None. 6. NEW BUSINESS a. Discussion/Recommendation – Lease Renewal – Schilling Rentals, LLC Lot 9A, FBO Subdivision 7. REPORTS a. Airport Manager b. City Council Liaison 8. NEXT MEETING ATTENDANCE NOTIFICATION – April 11, 2019 Page 5 of 126 ____________________________________________________________________________________ Airport Commission Meeting Page 2 of 2 April 11, 2019 9. COMMISSIONER COMMENTS AND QUESTIONS 10. ADDITIONAL PUBLIC COMMENT – None. 11. INFORMATION ITEMS a. April 2019 Kenai Historical Society Newsletter 12. ADJOURNMENT Meeting summary prepared and submitted by: ___________________________________ Jacquelyn LaPlante Deputy City Clerk Page 6 of 126 Municipal Airport Memo To: F rom : Date: Subject: 305 N. WILLOW ST. SUrTE 200 KENAI, ALASKA 99611 TEl.EPHONE 907..283-7951 FAX 907-283-3737 Airport Commiss ion Mary Bondurant -Airport Manage June 5 , 2019 FY20 Airport Budget Attached are the FY20 budget documents for the Airport funds which consists of the Terminal, Airfield , Administration , Other Buildings & Areas , and the Alaska Fire Training Facility . Please contact me if you have any questions . Attachment www.KenaiA ir port.com Page 7 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 -Airport Fund Department: Airport Fund Summary Original Manager Actual Actual Budg et Projection Proposed FY2017 FY2018 FY2019 FY2019 FY2020 Revenues State & Federal Grants $ 29,726 $ 21 ,891 $ 36,385 $ 36,385 $ 42 ,663 Usage Fees Fuel Sales 7,621 10,685 10,000 17,500 17,500 Fuel Flowag e 29,207 12 ,093 35,000 15,000 15,000 Float Plane 620 722 1,500 750 750 Tie Down 7,403 6,832 7,500 7 ,500 7,500 Landing 529,132 401 ,556 432 ,500 432 ,50 0 505,500 Plane Parking 5,725 9,018 5,000 10,000 10,000 Total Usage Fees 579,708 440 ,906 491,500 483,250 556,250 Rents and Leases Land 674,781 691, 152 547 ,610 547 ,610 563 ,293 Total Rents and Leases 674,781 691 , 152 547,610 547,610 563 ,293 Miscellaneous Penalty and Interest 8,321 7,513 5 ,000 5,000 5,000 Interest on Investments 15,598 20 ,563 25,000 25,000 35,000 Other 12,666 9,769 10,000 10,000 10 ,000 Total Miscellaneous 36,585 37,845 40 ,000 40 ,000 50 ,000 Terminal Revenue Parking Fees 233,284 223,360 250,000 250,000 250 ,000 Rents and Leases 308 ,275 317,431 378,160 378 ,160 395,344 Penalty and Interest 1,728 3,989 4,500 4,500 4,500 Car Rental Commissions 156,497 171 ,096 175,000 175,000 180,000 Advertising Commissions 7,421 10,648 9,000 9,000 9,000 Miscellaneous 1,145 3,983 1,500 1,500 1,500 Total Terminal Revenue 708,350 730 ,507 818, 160 818,160 840 ,344 Transfers In Airport Land Trust Fund 1,175,414 1,210,348 1,230,025 1,230,025 908,811 Total Transfers In 1,1 75,414 1,210 ,348 1,230 ,025 1,230,025 908,81 1 Total Revenues 3,204,564 3,132,649 3,163,680 3, 155,430 2,961,361 Expenditures Airport Terminal 578,256 578 ,328 630,109 2,200,875 616,753 Airport Airfie ld 1,640 ,517 1,631 ,810 1,731 ,779 1,757 ,779 1,750,795 Airport Administration 411, 745 621 , 759 596, 199 591,699 348,507 Airport Other Buildings and Areas 139,947 261 ,943 164,943 169,443 248,777 Airport Training Facility 40,295 36 , 125 38,474 38,474 38,474 Total Expenditures 2 ,810,760 3,129,965 3 ,161 ,504 4 ,758 ,270 3,003,306 Contribution Tof(From) Fund Balance: 393 ,804 2,684 2 ,176 (1,602 ,840) (41 ,945) Projected Lapse (6%) 116,255 116,254 116,016 Adjusted (Deficit)/Surpl us 118,431 (1 ,486,586) 74,071 Beginning Fund Balance 4 ,682 ,502 5,076,306 5,380,197 5,078,990 3,592,404 Ending Fund Balance $ 5,076,306 $ 5,078,990 $ 5,498,628 $ 3,592,404 $ 3,666,475 197 Page 8 of 126 C ity of K e nai Fi sca l Year 2020 Operating Budget Ai rport Fund Summary by Line Item Five yea r Original Manager Increase Account Expense FY2018 Historica l Budget Amended Proposed (D ec rease) % Number Desc ription Act ual Ave rage FY2 019 Budget FY2020 FY2019 Ori gi nal Chang e Salaries and Benefits 0100 Salar ies $ 473,014 $ 450,232 $ 509 ,671 $ 509 ,671 $ 518 ,939 $ 9 ,268 1.82 % 0200 Overtime 21 ,724 25,707 22,659 22,659 24 ,029 1,370 6.05 % 0 250 Holiday Pay 0 300 Leave 11 ,0 87 13,649 20,132 2 0 , 132 21 ,147 1,0 15 5.04 % 0 400 Medicare 7,183 7,007 8,010 8 ,010 8,181 171 2.13% 0450 Social Se curity 1,466 998 911 911 733 (178) (19.54 %) 0500 PERS 118,862 165,138 142 ,766 142 ,766 152,017 9 ,251 6 .48% 0600 Unemployment Insurance 2,351 875 2,764 2 ,764 2 ,822 58 2.10% 0700 Workers Compensation 10,269 10,042 8,740 8 ,740 9,487 747 8 .55% 0800 Health & Life Insurance 107,337 102,427 119,786 119.786 135,84 0 16,054 13.40% 0900 Supplemental Retirement 8 ,716 9,656 9.371 9,371 9,4 12 41 0 .44% Total Salar ies & Benefits $ 762,009 $ 785,731 $ 844 ,8 10 $ 844,810 $ 882,607 $ 37 ,797 4 .47% Maintenance and O!!erations 2021 Office Supplies 695 994 1.700 1,700 1.300 (400) (23.53%) 2022 Operating & Repair Supplies 177,930 162,612 202 ,600 207 ,100 187,000 (15 ,600) (7 .70%) 2024 Small Tool s/Minor Equipment 6,059 17,194 7,715 7,715 6,300 (1.415) (18.34%) 2026 Computer Software 1,696 1,338 1,380 1,380 1,650 270 19.57% 4531 Professiona l Services 25 ,916 28,887 2 1,850 2 1,850 68 ,235 46,385 212 .29 % 4532 Communicatio ns 14,065 18,305 14,415 14 ,41 5 12,829 (1,586) (11 .00%) 4533 Travel & T rans portatio n 14 ,261 11,905 15,370 15,370 11 ,835 (3 ,535) (23 .00%) 4 534 Advertising 10,50 7 10, 152 10,250 10 ,250 6,50 0 (3 ,750) (36 .59%) 4535 Pri nting & Bind ing 2 ,2 15 2,738 3 ,075 3 ,075 3,075 4536 Insurance 87,942 84 ,329 97,452 97,452 104,606 7 ,154 7.34 % 4537 Uti lities 378 ,631 337 ,352 427,0 16 427 ,0 16 414 ,828 (12, 188) (2 .85%) 4 538 Re pair & Maintenance 203,396 2 18,038 2 19,870 219,870 194,232 (25,638 ) (11 .66 %) 4539 Rentals 9 ,014 12,644 23,700 23,700 6 ,260 (17,440) (73.59 %) 4 540 Eq uip . Fund Pmts. 4541 Postage 4666 Books 2 10 95 300 300 150 (150) (50.00%) 4667 Dues & Publ ications 526 571 530 530 530 4999 General Contingency 30 ,000 25,500 20,000 (1 0,000) (33 .33 %) 5041 Miscellaneous 855 1,376 3 ,550 3,550 1,400 (2,150) (60.56 %) 5045 Depreciation 5047 Grants to Agencies Tota l Maint. and O!!erations $ 933,918 $ 908,530 $ 1,080,773 $ 1,080,773 $ 1,040,730 $ (40,043) __i!I!%) Ca!!ita l Outlal! & Transfers 806 1 Land 58,498 12,400 8062 Build ings 4,430 8063 Improvements 5,856 1,821 8064 Mac hinery & Equ i pment 25 , 137 14,708 12 ,000 12 ,0 00 10,269 (1,731) (14.43 %) 9090 Transfers 1,344 ,547 1,2 19,765 1,223,921 2 ,820 ,687 1,069 ,700 (154 ,221 ) (12.60%) Tot al Ca!!ital OutlaJ! and Transfers $ 1,434,038 $ 1,253,124 $ 1,235,921 $ 2 ,832,687 $ 1,079,969 $ (155,952) (12.62 %) Department Total : $ 3,129,965 $ 2,947 ,385 $ 3,161,504 $ 4 ,758,270 $ 3,003,306 $ !158,198) ~·/.) 198 Page 9 of 126 Mission City of Kenai Fiscal Year 2020 Operating Budget Fund 008 -Airport Fund Department: 61 -Airport Terminal Provide high-quality, safe air travel services for the citizens of the Kenai Peninsula through services and facilities. Functions & Responsibilities The Kenai Airport Terminal is a two-story bu ilding , which was constructed in 1968, expanded in 1983 , and renovated in 1989 and 2001 . The terminal has three enplanement gates and one deplanement gate to accommodate approximately 100 ,000 enplanements per year. The ground floor of the terminal has ticket counter, office , and baggage handling space for four commuter airlines. Currently RAVN Alaska and Grant Aviation lease space in the terminal and provide approximately 30 flights per day to and from Anchorage . Baggage check-in is handled at the ticket counters, and there is a separate baggage claim area with a continuous conveyor belt. Additional lease spaces are occupied by two rental car agencies , a restaurant , and a real estate office . The second floor is leased as a bar/lounge. A complete terminal building rehabilitation project started in October 2018 with a completion date of February 2020 . The terminal automobile parking area provides 529 parking spaces and is divided into three distinct areas by a looping one-way terminal loop road, which provides passenger loading and unloading areas in front of the terminal. The northern section is designated for long-term , permit and employee parking. The southern section provides spaces for rental cars , additional employee parking, and restaurant/lounge patrons . Organizational Chart City Manager Airport Manage r Airport Operati ons Supervisor Airport Operations Speciali st (2) 199 Administrative Assis t ant II Airport Seasonal Eq uipment Oper ato r (2 ) Page 10 of 126 Staffing ---l -F-Y-16_A_c-tu_a_I _ FY17 AEtual , Budgeted FY1a Reque~ted FY19 f P_i:_ojected FY20 1 P~ojected FY21 - f>ositi~n Title 9_ty . Grade Q!)' Grade Qty Grade Administrative [ .33 9 .33 1 -9 .33 -9 Qty l Grade Qty 1 Grade Qty Grade :-33 9 r -:33 9 I -:33 1 -9 Ass istant II Building .17 12 17 13 .17 ' 13 Maintenan ce .17 I 13 I .17 13 .17 13 Lead Technician _1 I Bu ilding I .17 Maintenance Technician Airport Operati ons 1 Specia~ 11 L :: l .17 11 Average Overtime Per Position (hours) .17 12 11 12 1 .17 j .17 .17 12 12 1 I 11 11 1 11 l Position Title ' FY16 A~ual I FY17 Actual J Budgeted FY1 .!J Requested FY19 Projected FY20 j Adm inistrative 8 5 14 1 14 I 14 Projected FY21 14 ~ Assistant II _ Bu ilding 3 1 71 8 8 8 1 Maintenance I Lea d Techn ician [ Buildi ng 1 O 3 l 3 i Maintenance 1 Te ch_r]_icl an Airport Operations Specialist Performance Measures 1 2014 . 103,602 +1 .58 ~~planements Percent Change from Previous Year J ------ Customer Complaints *Projected figures I 66 ---1 2015 102,126 -1.42 % 2016 98,032 -4 .01 % FY19 Department Goals Evaluation 3 2017 2018 -94,020 92,127 -4 .09% -1.89 % l 58 1. Encourage and promote safe and economical travel through the Kenai Airport . • Goal has been met for the first eight months of the fiscal year. 2 . Improve Customer Service. • Goal has been met for the first eight months of the fiscal year. 3. Improve Infrastructure condition. 2019* 93,000 +.95 % 40 • The improvement of the infrastructure of the terminal building has created an increase in c ustomer and tenant complaints but that has been anticipated due to the construction. FY20 Department Goals 1. Encourage and promote safe and economical travel through the Kenai A irport in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 1 -Quality of Life to ensure that Kenai is a community where people are safe, Goal 4 -Public Improvements 200 8 66 Page 11 of 126 and Services to provide adequate public improvement services in Kenai , and Goal 5 - Prov ide transportation systems that are efficient and adequate to serve the regional needs of the community . • Recruit and retain air service that meet the needs of the travelling public . • Develop and maintain facilities and infrastructure to accommodate operations, safety, and security requirements . • Recruit and retain services or products needed by users of the airport. 2 . Improve Customer Service in support of Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 1 -Quality of Life. • Service Quality -Provide clean and aesthetically pleasing terminal with concessions that provide a level of comfort and meet demands of the travelling public • Customer Value -Provide air ca rriers that provide air travel to their destinations • Customer Satisfaction -Manage and be responsive to customers to provide facilities they desire and maintain these facilities in a functional, efficient and safe condition . • Partner with community members to develop programs that reflect the quality of life on the Kenai Peninsula to enhance economic growth that allows the community to have ownership in the airport. 3. Improve Infrastructure condition in support of Imag ine Kenai 2030 City of Kenai Comprehensive Plan Goal 4 -Public Improvements and Services to provide adequate public improvement services in Kenai and Goal 5 -Provide transportation systems that are efficient and adequate to serve the regional needs of the community. • Terminal rehabilitation will increase revenues as well as improve the passenger. experience and upgrading operational deficiencies will have reduced costs. • Balance between new opportunities and maintenance of existing infrastructure. • Improve economic and environmental benefits . Future Considerations A $10,619,995 FAA grant was received in September 2018 for the terminal rehabilitation project which will significantly improve user satisfaction and improve operational deficiencies upon completion. At the completion of the terminal rehabilitation project negotiate a new five-year airline operating agreement. 201 Page 12 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund : 008 -Airport Fund De partment: Airport Terminal Five year Origi nal Manager Increase Acco unt Expense FY2018 Hi storic al Budget Amended Proposed (Decrease) % Number Descript ion Actual Average FY20 19 Budget FY2020 FY20 19 Orig inal Change Salaries and Benefits 0100 Salaries $ 105,793 $ 93 ,797 $ 107,997 $ 107,997 $ 11 0 ,681 $ 2,684 2 .49% 0200 Overtime 1,298 1,328 4 ,372 4,372 4 ,385 13 0 .30% 0250 Holiday Pay 0300 Leave 2 ,012 671 4,981 4 ,98 1 5 ,225 244 4.90% 0400 Medica re 1,532 1,357 1,701 1 ,701 1,745 44 2 .59% 0450 Social Security 0500 PERS 27,432 35,159 30,992 30,992 32,931 1,939 6 .26 % 0600 Unemployment Insurance 507 101 587 587 602 15 2 .56% 0700 Workers Compensation 2,724 2,543 2,563 2 ,563 2 ,773 210 8.19% 0800 Health & Life Insurance 29,957 24,777 33,452 33,452 37,936 4,484 13.40% 0900 Supplemental Retirement 2 ,534 2 ,364 2 ,505 2 ,505 2,505 Total Salaries & Benefits $ 173,789 $ 162,097 $ 189,150 $ 189,150 $ 198,783 $ 9 ,633 5.09% Maintenance and Operations 202 1 Office Supplies 477 274 500 500 500 2022 Opera ting & Repair Supplies 21 ,958 19,362 26,100 26,100 18,300 (7 ,800) (29.89%) 2024 Small Tool s/Minor Equipment 663 2 ,806 2026 Computer Software 4531 Professional Services 10,000 3 ,053 1,500 1,500 500 (1 ,000) (66 .67%) 4532 Communications 372 967 2,016 2,016 1 ,236 (780) (38.69%) 4533 Travel & Transpo rtation 1,363 1,371 1,005 1,005 1 ,585 580 57.7 1% 4 534 Advertising 629 1,1 99 1,000 1,000 500 (500) (50 .00%) 4535 Printing & Binding 660 454 750 750 750 4536 Insurance 9 ,072 7,698 10,001 10,001 11 ,554 1,553 15.53% 4537 Utilities 148,611 140,899 161, 15 7 161 ,157 159,216 (1,941) (1 .20%) 4538 Repair & Maintenance 137,791 161 ,554 160,510 160,510 145,780 (14,730) (9 .18%) 4539 Rentals 4,305 4,752 4 ,320 4 ,320 180 (4,1 40) (95 .83%) 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publ ications 4999 Co ntingency 5041 Miscellaneous 38 416 500 500 200 (300) (60.00 %) 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations $ 335,939 $ 344,805 $ 369,359 $ 369,359 $ 340,301 $ (29,058) ~%) CaE!ital Outlal£ & Transfers 8061 Land 8062 Buildings 4,430 8063 Improvements 8064 Machinery & Equipment 2,481 10,269 10,269 9090 Transfers Out 68,600 70 ,640 71 ,600 1,642.366 67,400 (4 ,200) ~%) Total CaE!ital Outlal£ and Transfers $ 68,600 $ 77,551 $ 71 ,600 $ 1,642,366 $ 77,669 $ 6,069 8.48% Department Total : $ 578,328 $ 584,453 $ 630,109 $ 2,200,875 $ 616,753 $ p3,356) ....£13,%) 202 Page 13 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 ·Airport Fund Department:· 61 ·Airport Terminal 2022 Operating & Repair Supplies. Janitorial supplies , generator fuel, and other general operating supplies for operation of the terminal , including ice melt, paystation supplies , and parking permits/violations. 4538 Repair & Maintenance. Professional services for repair and maintenance of the terminal including janitorial and security services. Annual mechanical , A ED and fire sys tem s inspections. 203 8064 Machinery & Equipment. Replace self-pay parking machine. 9090 Transfers Out. Central administrati ve charges from General Fund . Page 14 of 126 Mission City of Kenai Fiscal Year 2020 Operating Budget Fund 008 -Airport Fund Department: 62 -Airport Airfield The primary mission is to ensure the safety and security of aircraft and the traveling public and to operate the airport in compliance with the rules, regulations, and standards prescribed, including but not limited to, Title 14 of Code Federal Regulations part 139. Functions & Responsibilities The Kenai Municipal Airport is the primary commercial service airport on the Kenai Peninsula and is owned and operated by the City of Kenai. It has a grooved 7,855 ft. x 150-ft. CAT Ill runway, a 4,600-ft. x 150-ft. water runway, and a 2,000-ft. x 60-ft. gravel runway. Itinerant aircraft parking is provided at the southern end of the apron. The apron north of the terminal is designated for helicopter, medivacs , and a fueling operation. The gravel runway is located in the northeast corner of the Airport and has access to the primary taxiways and apron by a taxiway along the east side. A gravel tie down area and vehicle parking area parallels the gravel runway along the east side . The gravel tie down area has 17 tie downs and parking areas are accessible by road through a secure gate at the north end of Willow Street. The Airport Manager is responsible for overall management of the airport. The Airport Operation's Supervisor position is respons ib le for the day-to-day maintenance and operations of the airfield including daily inspections, planning and allocation of resources, overseeing contractors, addressing complaints, interfacing with airport tenants and users. The Operations Supervisor participates in snow removal and maintenance activi ties as well as supervises two full-time Airport Operations Specialists, two winter seasonal equipment operators who work November 1 through March 31, and temporary call-in personnel. Organizational Chart City Manager Airport Operations Su per visor Airport Operations Specialist (2 ) 204 Administrative Ass i stan t II Airport Seasonal Equ i pment Operator (2) Page 15 of 126 Staffing FY17 Actual FY18 Actual Budgeted FY19 Requ ested FY20 Projected FY21 Projected FY22 Position Title Qty Grade Qty Grade Qty Grade Qty Grade Qty Grade Qty Grade Airport 1 15 1 15 15 1 15 1 15 1 15 Operations Supervisor Airport 11 11 11 11 11 11 Operations Specialist Temporary 10 11 10 11 10 11 10 11 10 11 10 11 Equipment Operator Sea sonal .83 11 .83 11 .83 11 .83 11 .83 11 83 11 Equ ipment Operator Average Overtime per Position (hours) Position Title FY17 Actual Airpo rt 167 Operations Supervisor Airport 50 Operations Specialist Tempo rary 0 Equipment Operator Seasonal 0 Equipment Operator Performance Measures Pavement Section Runway 2L-20R Taxiway A lpha Bravo Cha rlies Delta Echo Foxtrot Gu lf Hotel Juliet Ki lo Lima Mike Aircraft Tie Down Area Apron FY18 Actual 285 45 0 0 Pavement Condition Index (PCI) 54.74 Budgeted FY19 150 100 0 100 205 Requested FY20 Projected FY21 Projected FY22 150 150 150 100 100 100 0 0 0 150 150 150 Pavement Condition Index (PCI) Target PCI Rang e for Runways: 70 to 100 Target PCI Rang e for Taxiways and Aprons : 60 to 100 PC I Values Ge ne ral Pavement Recommendatio ns -85-100 CJ 70-84 Do Nothing o r Preventative Mai nte nan ce Prevent ative Maintenance D 60 -69 Correct ive Maintenance D 55 - 59 Re hab ilit ate CJ 40 -54 Re hab llitate D 25 -39 Reconstruct D 10-24 Reconstruct -o -9 Re const ru ct Page 16 of 126 , ~azing ~-2014 Activity 54 I ·---------------·- Bird Strikes 1 NOTA~S I 571 720 *Projected figures FY19 Department Goals Evaluation 2016 l --201 7 I 111 0 1072 I -1- -+- I 52 0 1971 2018 87 0 1003 2019* 76 0 950 1. Provide a safe operating environment via wildlife management plan with effective hazing activities to eliminate bird strikes. • On track for the first eight months of the fiscal year. • Hazing activity is low with no bird strikes. 2. Expeditiously and systematically remove snow and ice from airport movement areas. • On track for the first eight months of the fiscal year. • No runway closures due to snow and ice conditions . 3. Use new technologies, such as NOT AM Manager, to issue NOTAMs that provide accurate and current information to alert pilots of potential hazards along a flight route or at a location . • On track for the first eight months of the fiscal year. • NOTAMs a re low, which is a credit to the crew for exceptional snow and ice control over the winter season . 4. Perform asphalt crack sealing of runways/taxiways/apron areas to extend pavement life expectancy. Maintain runway at a pavement condition index (PCI) above 70 and taxiways/aprons at a PCI above 60 . • On track for the first eight months of the fiscal year. • The Airport has prepared the design for an overall crack sealing, marking , and minor pavement repair capital improvement project that will preserve the pavement. FY20 Department Goals The followin g goals support the Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 5 - Transportation: Provide transportation systems that are efficient and adequate to serve the regional needs of the community: 1. Provide a safe operating environment via wildlife management plan with effective hazing activities to eliminate bird strikes. 2. Expeditiously and systematically remove snow a nd ice from airport movement areas. 3. Use new technologies, such as NOT AM Manager, to issue NOTAMs that provide accurate and current information to alert pilots of potential hazards along a flight route or at a location. 4. Perform asphalt crack sealing of runways/tax iways/apron areas to extend pavement life ex pectancy. Maintain runway at a pavement condition index (PCI) above 70 and taxiways/aprons at a PCI above 60 . 206 Page 17 of 126 Future Considerations Applications submitted in October 2018 for consideration of Supplemental money appropriated by Congress: 1) FY19 Phase One Float Plane Basin , 2) FY20 Sand Storage/SRE building and FY20 Taxiway Rehab of Alpha, Charlie , Kilo, and Lima along with lighting , shoulder and safety area widening . Environmental clearance for projects to be submitted by December 2019. Replacement of non-AIP eligible equipment: mower and sweeper. Environmental concerns have arose about the Aqueous Film Forming Foam (AFFF) testing at certificated part 139 airports. Alternate ways and measures will have to be found to meet this ARFF truck testing requirement at the Kenai Airport. 207 Page 18 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 -Airport Fund Department: Airport Airfield Five year Original Manager Increase Account Ex pense FY2018 Historical Budget Amended Proposed (Decrease) % Number Desc r iption Actua l Average FY2019 Budget FY2020 FY2019 Original Change Salaries and Benefits 0100 Salaries $ 189,375 $ 180, 197 $ 205,177 $ 205 ,177 $ 212,388 $ 7,211 3.51% 0200 Overtime 18,646 23,056 16,344 16,344 17,725 1,381 8.45% 0250 Holiday Pay 0300 Leave 4 ,137 5,202 6 ,969 6 ,969 7, 164 195 2.80 % 0400 Medicare 2 ,996 2,966 3,3 12 3 ,312 3,440 128 3.86% 0450 Social Security 1,466 998 505 505 669 164 32 .48% 0500 PERS 46,33 1 64 ,391 58 ,849 58,849 62,773 3,924 6 .67% 0600 Unemployment Insurance 983 601 1,143 1,143 1, 187 44 3.85% 0700 Workers Com pensation 6 ,008 6 ,159 4 ,622 4,622 5,035 413 8.94% 0800 Health & Life Insurance 35,928 40,162 40,063 40,063 45,431 5 ,368 13.40% 0900 Supplemental Retirement 3,011 3,827 3,000 3 ,000 3,000 Total Salaries & Benefits $ 308,881 $ 327,559 $ 339,984 $ 339,984 $ 358,812 $ 18,828 5.54% Maintenance and OE!erations 2021 Office Supplies 201 324 500 500 500 2022 Operating & Repair Supplies 139,681 127.144 159,300 159,300 153 ,000 (6 ,300) (3.95%) 2024 Small Tools/Minor Equipment 5,396 13,696 6 ,680 6 ,680 4,980 (1 ,700) (25.45%) 2026 Computer Software 1,156 728 780 780 1,230 450 57.69% 4531 Professional Services 4,563 7,825 12,250 12,250 7,235 (5 ,015) (40.94%) 4532 Communications 7,896 10 ,050 7,201 7,201 6,361 (840) (1 1.67%) 4533 Travel & Transportation 6 ,293 5,332 5,900 5 ,900 3,400 (2 ,500) (42.37%) 4534 Advertising 622 444 500 500 500 4535 Printing & Binding 606 1,206 1,175 1,175 1,175 4536 Insurance 77 ,095 74 ,892 84,982 84,982 89,471 4,489 5.28% 4537 Utilities 165,592 157,518 189,629 189,629 184,741 (4,888) (2 .58%) 4538 Repair & Maintenance 52,209 38 ,186 39,618 39,618 31,710 (7 ,908) (19.96 %) 4539 Rentals 3 ,336 5 ,358 16,880 16,880 3,580 (13,300) (78.79%) 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 25 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 45 1,500 1,500 500 (1 ,000) (66.67%) 5045 Depreciation 5047 Grants to Agencies Tota l Maint. and OE!erations $ 464,646 $ 442,773 $ 526,895 $ 526,895 $ 488,38 3 $ (38,512) ~%) CaE!i tal Outlal£ & Transfers 8061 Land 8062 Buildings 8063 Improvements 5 ,856 1,821 8064 Machinery & Equipment 25, 137 12,227 9090 Transfers Out 827,290 827 ,938 864 ,900 890,900 903 ,600 38 ,700 4.47% Total CaE!ital Outlal£ and Transfers $ 858,283 $ 841,986 $ 864,900 $ 890,900 $ 903,600 $ 38,700 4 .47% Department Total: $ 1,631 ,810 $ 1,612,318 $ 1,731,779 $ 1,757,779 $ 1,750,795 $ 19,016 1.10% 208 Page 19 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 -Airport Fund Department: -62 -Airport Airfield 2022 Operating & Repair Supplies. Department supplies including brooms and sweepers , urea , E36 , equipment cutting edges, fuel and fire suppression supplies. 2024 Small Tools & Minor Equipment. Computer replacement , KFD personal protective gear (1 set), and radios . 4531 Professional Services. Commercial drivers' license physicals , annual audiometric testing , and miscellaneous engineering services. 209 4538 Repairs and Maintenance. Annual calibrations, fire testing , boiler and mechanical inspections and service agreements . 4539 Rentals. Table/Chair rentals , tental rental and Exca vator rental. 9090 Transfers Out. Central administrative charges from General Fund including general administration , fire suppression services , security and equipment maintenance. Page 20 of 126 Mission City of Kenai Fiscal Year 2020 Operating Budget Fund 008 -Airport Fund Department: 63 -Airport Administration The primary mission of Kenai Municipal Airport is to be the commercial air transportation gateway to the Kenai Peninsul a Borough and West Cook Inlet. Functions & Responsibilities The Airport Manager works under the direction of the City Manager and is responsible for Federal Aviation Administration compliance , grant eligibility , airport development, general management and operation of the Kenai Municipal Airport . Legal, finance , planning , public works, police and fire support is provided by the Airport Fund and is paid for using the City 's Central Administ ration c harge . Airport capital improvement projects (ACIP) are primarily funded through airport entitlement monies and discretionary funds received from the Federal Aviation Administration. Funding for these projects is not a part of the annual budget process and is accounted for separately in capital proj ects funds . Organizational Chart Staffing City Manager Airport Manager Airpor t Op er ations Supervisor Ai r por t Operations Spec ialist (2) Average Overtime Per Position (hours) Ad ministr ative Ass i st ant II Ai rport Se asona l Equ ipmen t Oper ator (2) ~tiOilTitle j_FY16 Act~ [ FY17 Actua q E!_~dget~d FY18 i Reg_uest ~ FY19 ! P~jected FY20 J Projected_!~_!_! ~ort Ma n a~r NIA NIA _ _ NIA _NIA _ NIA _ NIA Adm inistra.tiv e 1 16 I -w-f 29f 29T 291 29 -~s!stan t II . _ _ _ _ ___ l . , [ __ _ 21 0 Page 21 of 126 Performance Measures 2014 -1 --,--2017 2015 2016 Airline Rents & Leases $ 172,088 $ 189 .~61 $ 192,368 $191 ,557 . Airline L ~!1 ding F~es _3>_262,94Q $ 198,3 27 $ 233,386 $ 356,132 Revenue per Enplaned . Passenger $ 4 .35 $ 4 .12 $ 4 .55 $ 5.84 FAA Grant E'.5_pe_D.Slit~res $@9..1 714 $0 $ 2 ,774,885 $1 ,509,155 *Projected figures FY19 Department Goals Evaluation 1. Maintain the financial viability of the airport. • On track for the first eight months of the fiscal year. 2. Provide facilities that are safe, secure , and meet FAA requirem ents. • On track for the first eight months of the fiscal year. 2018 1 2019* $ 198,558 l $ 208,486 $ 389 ,230 $ 408,692 $6 .38 $6.64 Not $10,619,995 available 3. Maximize the Airport 's potential as a scheduled passenger, air taxi , and air cargo airport serving multiple destinations . • The Airport is operating within the established FY19 budget, and a grant was secured for the terminal rehabilitation project, which will maximize the Airport 's potential for tenant and customer experience. FY20 Department Goals The following goals support City of Kenai Comprehensive Plan Goal 2 -Economic Development to support the fiscal health of Kenai, Goal 4 -Public improvements and services: Provide adequate public improvements and services in Kenai, and Goal 5 -Transportation : Provide transportation systems that are efficient and adequate to serve the regional needs of the community: 1. Maintain the financial viability of the airport. • Set fair and reasonable rates , renta ls, landing fees , and other service charges imposed on aeronautical users for the aeronautical use of the Airport annually that allows the Airport to be as self-sustaining as possible. • Implement a responsible budget. • Ensure each Airport fund is financially secure. 2 . Provide facilities that are safe, secure, and meet FAA requirements • Work to obtain and secure FAA grand funding for Airport Capital Improvement Program • Fund pre-grant expenses for engi neer services on grant-eligible projects • Establish a five-year Airport Capital Improvement Plan 3. Maximize the Airport 's potential as a scheduled passenger, air taxi , and air cargo airport serving multiple destinations . • Make the airport an aesthetically pleasing gateway to the Kenai Peninsula . 211 l Page 22 of 126 • Market Airport, services, and facilities through magazine ads, website, trade shows , and the air fair, etc. • Continue long-term planning, development, and construction in accordance with the Airport Master Plan. Future Considerations Negotiation of a new five-year airline operating agreement will be negotiated upon completion of the terminal rehabilitation project. Fou r capital improvement project applications for supplemental monies were submitted in October 2018: • FY19 -Rehabilitate Alaska Regional Fire Training Facility • FY19 -Phase One -Float Plane Basin Development • FY20 -Construct Storage/SRE Building • FY20 Taxiway Rehabilitation -Alpha, Charlie, Kilo, Lima Spring of 2019 notification of approved projects. 212 Page 23 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 -Airport Fund Department: Airport Administration Five year Original Manager Increase Account Expense FY2018 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2019 Budget FY2020 FY2019 Original Change Salaries and Benefits 0100 Salaries $ 137,745 $ 133,159 $ 146,430 $ 146,430 $ 149,337 $ 2 ,907 1.99% 0200 Overtime 1,128 848 1,32 1 1 ,321 1,348 27 2.04% 0250 Holiday Pay 0300 Leave 6 ,788 7 ,125 7,125 7,266 141 1.98% 0400 Medicare 2 ,011 2 ,055 2,246 2 ,246 2 ,291 45 2 .00% 0450 Social Security 0500 PERS 35,729 49,829 40,749 40,749 43,126 2,377 5 .83 % 0600 Unemployment Insurance 668 134 774 774 790 16 2 .07 % 0700 Workers Compensation 509 452 457 457 489 32 7.00 % 0800 Health & Life Insurance 29,963 27,072 33,452 33,452 37 ,934 4 ,482 13.40% 0900 Supplemental Retirement 2 ,512 2 ,535 2,500 2 ,500 2 ,500 Total Salaries & Benefits $ 210,265 $ 222,872 $ 235,054 $ 235,054 $ 245,081 $ 10,027 4.27% Maintenance and O(!erations 202 1 Office Supplies 17 396 500 500 300 (200) (40.00%) 2022 Operating & Repair Supplies 820 956 1 ,200 1,200 700 (500) (41 .67%) 2024 Small Tools/Minor Equipment 692 1 ,035 1,035 520 (5 15 ) (49.76%) 2026 Computer Software 540 6 10 600 600 420 (180) (30.00%) 4531 Professional Services 110 697 1 ,100 1 ,100 600 (500) (45.45%) 4532 Communications 4,699 6,206 4 ,575 4 ,575 4,225 (350) (7.65%) 4533 Travel & Transportation 6,605 5,202 8 ,465 8,465 6,850 (1 ,615) (19.08%) 4534 Advertising 8,756 7,988 8 ,250 8,250 5,000 (3,250) (39.39%) 4535 Printing & Binding 949 908 1,150 1 ,150 1 ,150 4536 Insurance 1,775 1 ,601 2,469 2,469 3,581 1, 112 45.04% 4537 Utilities 4538 Repair & Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 210 70 300 300 150 (150) (50.00%) 4667 Dues & Publications 526 571 530 530 530 4999 Contingency 30 ,000 25,500 20 ,000 (10,000) (33.33%) 5041 Miscellaneous 765 760 1 ,550 1,550 700 (850) (54.84%) 5045 Depreciation 5047 Grants to Agencies Total Maint. and O(!erations $ 25,772 $ 26,657 $ 61,724 $ 57,224 $ 44,726 $ (16,g98) (27.54%) Ca(!ital Outlal£ & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 12,000 12,000 (12,000) (100.00%) 9090 Transfers Out 385,722 144,172 287,421 287,421 58 ,700 (228 ,721 ) (79.58%) Total Ca(!ital Outlal£ and Transfers $ 385,722 $ 144,172 $ 299,421 $ 299,421 $ 58 ,700 $ (240,721) (80.40%) Department Total: $ 621,759 $ 39 3,701 $ 596,199 $ 591 ,699 $ 348,507 $ !247,692) !41 .55%) 2 13 Page 24 of 126 City of Kenai Fiscal Year 2020 O perating Budget Fund: 008 ·Airport Fund Department: • 63 • Airport Administration 2024 Small Tools/Minor Equipment. Two computer replacements and miscellaneous other items. 4999 General Contingency. Funds available for unexpected expenditures. Funds are subject to budgetary control allowing no more th an $4,99 9.99 to be transferred without action from the Ci ty Council. 214 9090 Transfers Out. Central administrative charges from General Fund , $58,700. Page 25 of 126 Mission City of Kenai Fiscal Year 2020 Operating Budget Fund 008 -Airport Fund Department: 64 -Other Buildings & Areas Provide Airport facilities and services to ma x imize the float plane facility and land lease activities. Functions & Responsibilities Airport Land is the real estate deeded to the City of Kenai by the Federal Aviation Administration (FAA) in 1963. The acquisition gave the City title to nearly 2,000 acres . Most of the land is located in the business district surrounding the Airport. The Float Plane Basin encompasses a 4,500 foot water runway for landing and take-off operations and a separate water lane for taxiing with parking slips. A major expansion of the landing channel was started in 2006 and competed in fall of 2007. Separate tie-down areas are available for private and commercial users and a 24 hr. self-fueling station is maintained by the airport at the basin. Transient parking and camping spots are available. Current KMC code prohibits the collection of landing fees for float planes ; therefore, the only income from this area is from monthly and daily aircraft parking fees. The basin is closed to all operations during winter months. Effective July 1, 2018, an arrangement was memorialized between the General Fund and Airport Fund to operate and maintain the Kenai Animal Shelter. Organizational Chart Staffing City Manager Airport Manager Airport Oper ations Supervisor Airport Operations Specialist (2) Administrative Assistant II Airport Seaso nal Equipm ent Operator (2) [ -~--I FY_16 Actual i i:y17 Aetuai CBudgei!d FY18 'Requeste~FY.!_9 j-PrO;e~ed i=v2o r Proj~etf FY21 ~ Title Q~ ~ Grade _[9ty Grade ?ty ~ Grad_! ,_ Qty Gra de Qt~ Grade _Qty Grade _ ~ City Planner L ___Q_, . J.§__, .25 r _ 1.§__J ·~ t-~ ~ i--:Kt .30 t . !D ·~ I !£.. : Ad ministra tive .33 j 15 .10 15 . 0 15 0 1 15 0 15 I 0 15 Asslstantlll _ . _ _ -+-___ 1 Building 1 .17 12 .1_ 7 _j 12 ', .1 _1-f 12 .17 1_2_J .17 _12-ll .17-1 Ma intenan ce I I j' 1 1.J,_ead Tec~ician _ 4 • 1 Building .17 · 11 .17 11 .17 11 . 17 ; 11 1 • 17 I 1 1 .17 1 Maintenance Technician J l 12 I 11 215 Page 26 of 126 Average Overtime Per Position (hours) [~-~JtionJ~.~e l FY1 6Actu~!_1 FY17 _Actu~ I Budgeted FY.i_a_ f!eq ue ~teci FY ~ J Projected FY21L l Proj ~cte_!FY2J_. City Planner 8 9 8 8 8 8 A:cimiiifstra tive f 6 ! o l o..i-o 1 01 6 Assistant Ill r Buiiding 3 7 I 3 3 • 3 3 Maintenance I Lead Technician . 8ui1ctiii9 --j ·1 ]- Maintenance Technician Performance Measures 2014 6 1 2015 2016 2017 t ·-----------+--'--....,. ------i--Float Plane Slips I I . Leased 11 _L _8 _ _i 6 7 , Wa~e:i::_!:9n di~-~ -f 558 581 586 I 489 ----1 . Fuel Sold (Gajlon_s) 3 ~?60 1.200 2 ,900 i-3 ,790 Tenants 11 8 6 7 r -----T $1 -._Q~Q = $ 830 $ 690 $ 560 . Slip Rental Transient Parking Fees . -~~2 $ 205 ~ 11§ ~ 1QQ_ ' ----_ _. Lots Available for Lease No Historical Data -------. --- * Projected figures FY19 Department Goals Evaluation 1. Market for both private and commercial activities . 2018 2019* 7 7 806 810 -T • 4,2~6 4,400 7 7 $ 600 $600 $ 200 $200 20 20 -·--- • The City's new land brochure has created a lot of interest in lease lot development. 2. Construct ta x iway Sierra to provide access to float plane basin facility. • The City is still waiting to hear if any of the project applications for the supplemental monies have been approved ; which one is to construct tax iway Sierra with lea se lots . 3 . Maintain/rehabilitate commercial and private slips . • The City is still waiting to hear if any of the project applications for the supplemental monies have been approved ; which one is to construct taxiway Sierra with lease lots. FY20 Department Goals The following goals support the Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 1: Quality of life; Goal 2: Provide economic development to support the fiscal health of Kenai; Goal 3 -Develop land use strategies to implement a forward-looking approach to community growth and development; Goal 4 -Provide adequate public improvements and Services in Kenai; and , Goal 5 -Transportation: Provide transportation systems that are efficient and adequate to serve the regional needs of the community: 1. Market for both private and commercial activities. 2 . Construct taxiway Sierra to provide access to float plane basin facility. 3. Maintain/rehabilitate commercial and private slips. 216 - ... Page 27 of 126 Future Considerations Continuing demand use of the float plane facilities at the Kenai Municipal A irport is generating the need for the im provements on the airfield . T he creation of lease lots next to the float plane basin wou ld support expansion of air ta x i/charter development that operates from both float and wheeled aircraft. An application was submitted to the FAA in October 2018 to consider the Float Plane Basin -Phase One project for supplemental mon ies . Development costs are estimated at $3.1 million . This project would construct lease lots for wheel and float plane operations. 217 Page 28 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 -Airport Fund Department: Other Buildings and Areas Five year Original Manager Increase Account Expense FY2018 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2019 Budget FY2020 FY2019 Original Change Salaries and Benefits 0100 Salaries $ 40,101 $ 43,079 $ 50 ,067 $ 50,06 7 $ 46,533 $ (3,534) (7.06 %) 0200 Overtime 652 475 622 622 571 (51) (8 .20%) 0250 Holida y Pa y 0300 Leave 4 ,938 988 1,057 1,057 1,492 435 41 .15% 0400 Medicare 644 629 751 751 705 (46) (6 .13%) 0450 Social Security 406 406 64 (342) (84.24%) 0500 PERS 9,370 15,759 12, 176 12, 176 13,187 1,011 8.30 % 0600 Unemployment Insurance 193 39 260 260 243 (17 ) (6.54 %) 0700 W orkers Compensation 1,028 888 1,098 1,098 1, 190 92 8.38 % 0800 Health & Life Insurance 11 ,489 10,416 12 ,819 12,819 14,539 1,720 13.42% 0900 Supplemental Retirement 659 930 1,366 1,366 1,407 41 3.00% Total Salaries & Benefits $ 69,074 $ 73,203 $ 80,622 $ 80,622 $ 79,931 $ (691) ~%) Maintenance and O[!erations 2021 Office Supplies 200 200 (200 ) (100.00%) 2022 Operating & Repa ir Supplies 15,471 15, 150 16,000 20,500 15,000 (1 ,000) (6 .25 %) 2 024 Small Tools/Minor Equipment 800 800 2026 Computer Software 4531 Professional Services 11 ,243 17,312 7,000 7,000 59 ,900 52 ,900 755.71 % 4532 Communications 1,098 1,082 623 623 1,007 384 61 .64% 4533 Travel & Transportation 4534 Advertising 500 521 500 500 500 4535 Printing & Binding 170 4536 Insurance 138 4537 Utilities 40,820 17,689 52 ,541 52,541 47, 182 (5 ,359) (10 .20%) 4538 Repair & Maintenance 879 5 ,109 4,957 4,957 1,957 (3,000) (60.52%) 4539 Rentals 1,373 2,534 2 ,500 2,500 2,500 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 52 155 5045 Depreciation 5047 Grants to Agencies Total Maint. and O[!erations $ 71,436 $ 59,860 $ 84,321 $ 88,821 $ 128,846 $ 44,525 52.80% Ca[!ital Outlal£ & Transfers 8061 Land 58,498 12 ,400 8062 Buildings 8063 Improvements 8064 Mach inery & Equipment 9090 Transfers Out 62,935 177,015 40 ,000 40 ,000 Total Ca[!ital Outlal£ and Transfers $ 121,433 $ 189,415 $ $ $ 40,000 $ 40 ,000 Department Total: $ 261,943 $ 322,478 $ 164,943 $ 169,443 $ 248,777 $ 83,834 50.83% 218 Page 29 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 ·Airport Fund Department: • 64 • Other Buildings & Areas 2022 Operating & Repair Supplies. Fuel for resale at the Ai rport's Float Pl ane Basin and other miscellaneous operating s upplies . 2024 Small Tools/Minor Equipment. Year one of network equipment replacement. 4531 Professional Services. Appraisal fees for the leasing of Airport land . 219 4538 Repa ir & Maintenance. Miscellaneous repai rs, fire suppression system testing and landscaping services . 4539 Rentals. Cost of portapotties . 9090 T ransfers Out. Airport Operat ions Facility dry sprinkler system repla cement. Page 30 of 126 Mission City of Kenai Fiscal Year 2020 Operating Budget Fund 008 -Airport Fund Department: 65 -Alaska Fire Training Facility To be the premier aircraft and firefighting training facility for the State of Alaska . Functions & Responsibilities The 23,460 square foot Alaska Fire Training Facility was built in 1997. The facil ity was designed to facilitate hands-on training for fire response personnel in scenarios replicating actual emergencies involving aircraft and structural/industrial settings . This facility br ings to Alaska the ability to train in safe, realistic and environmentally acceptable facility utilizing state of the art training equipment. The first floor is c urrently occupied by Beacon Occupational Health and Safety Services. The c urrent agreement with Beacon ex pired December 31, 2012 but renews annually unless notice of termination is given 180-days prior to year-end by either party. The second floor consisting of 3 ,800 square feet is available for lease . Staffing -Under a Management Agreement Performance Measures I _ ----=-==-=-_ r 2014 t~ 2015 --2016 , ~tudent Tra~nings t _NN_oo _!2Q_.aa __ ttI!a t+ 9 1 s 0 o 0 :_-8 9 _5 5 0 _ _ y lass Training~ I . Jj_o_D_a_ta_ 2017 No Data 2018 No Data No Data $12,620 2019* 912 142 ---- $ 3,335 I Facility Repairs & 1 $ 12,432 ' $ 12, 170 $ 8 ,950 $ 18,359 Maintenance __'.__ __ _J_ __ _j__ -----'-------'-------1-----------; ARFF Vehicle Repair & Maintenance APO 7 $ 0 -+--'$:;__;,,_1 =· 0.::...8 7:__,._$'-___;_,1 =· 2.::...5 7"-----l_..x..$---=-9.::...38=-----1---"$=--46=----:6=--l------"$:_1'----'---,4_:_:3:_:__1 ______, AP08 ___ _____,__~ 443 $ 955 $ 1§_7_7 _,____ ~~.078 _j £)9 8 j_ 1330 _ *Projected figures FY19 Department Goals Eva luation 1. Complete the design and rehabilitation of the facility training props and associated mechanical. • A Request for Proposal is currently being advertised for the design of the trainings props. The FAA has programmed AIP monies for this project which will be bid in June 2019. Airports costs for facility repairs are down; however, maintenance costs on the two ARFF vehicles are up. 2 . Negotiate long term facility management agreement at the Fire Training Facility. • The management company is still working on the numbers for the student/class trainings for the first eight months of FY19. 220 Page 31 of 126 FY20 Department Goals The follow ing goals support the Imagine Kenai 2030 City of Kenai Comprehensive Plan Goal 1: Promote and encourage quality of life in Kenai , Goal 2: Provide economic development to support the fiscal health of Kenai, Goal 3 : Land Use , and Goal 4 : Public Improvements and Services : 1. Complete the design and rehabilitation of the facility training props and associated mechanical. 2. Negotiate long term facility management agreement at the Fire Training Facility. Future Considerations Replacement of the two 1998 Aircraft Rescue and Fire Training trucks. 221 Page 32 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund: 008 -Airport Fund Department: Airport Training Facility Five year Original Manager Increase Account Expense FY2018 Historical Budget Amended Proposed (Decrease) % Number Description Actual Average FY2019 Budget FY2020 FY2019 Original Change Salaries and Benefits 0100 Salaries $ $ $ $ -$ -$ 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health & Life Insurance 0900 Supplemental Retirement Total Salaries & Benefits $ -$ -$ -$ $ -$ Maintenance and Oeerations 2021 Office Supplies 2022 Operating & Repair Supplies 2024 Small Tools/Minor Equipment 2026 Computer Software 4531 Professional Services 4532 Communications 4 533 Travel & Transportation 4534 Advertising 4535 Printing & Binding 4536 Insurance 4537 Utilities 23,608 21,246 23,689 23,689 23,689 4538 Repair & Maintenance 12 ,517 13, 189 14,785 14,785 14,785 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues & Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Oeerations $ 36,125 $ 34,435 $ 38,474 $ 38,474 $ 38 ,474 $ Caeital Outlay: & Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery & Equipment 9090 Transfers Out Total Caeital Outlay: and Transfers $ -$ $ -$ $ -$ Department Total: $ 36,125 $ 34,435 $ 38,474 $ 38,474 $ 38,474 $ 222 Page 33 of 126 City of Kenai Fiscal Year 2020 Operating Budget Fund : 008 ·Airport Fund Department: • 65 ·Airport Training Facility 4537 Utilities. El ectric and natural gas charges for that portion of the facility not included in the facility management agreement. 223 Repair & Maintenance. Fire suppression system testing , elevator testing and maintenance, and other general maintenance items . Page 34 of 126 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. Will.OW ST. SUJTE 200 KENAI, ALASKA 99611 lB.EPHONE 907-283-7951 FAX 907-2B3Sr.n Airport Com.mission ~ Mary Bondurant -Airport Man~ Erica Brincefield -Assistant May 20 , 2019 Alaska Air Fuel, Inc. -Special Use Permit Alaska Air Fuel, Inc. is requesting renewal of the special use permit for aircraft parking consisting of approximately 15,000 square feet. The special use permit will be effective for one year from July 1, 2019 to June 30, 2020. The rate is based on the table below passed by City Council at the May 18 , 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The Airport has a valid certificate of insurance on file and Alaska Air Fuel, Inc., is current in all fees owed to the Airport. Does Commission recommend Council approve the Special Use Permit to Alaska Air Fuel, Inc.? Attachment www .Ke naiAirport.com Page 35 of 126 SPECIAL USE PERMIT -2019 The CITY OF KENAI (City) grants to ALASKA AIR FUEL, INC. (Pem1ittee), whose address is P.O. Box 360, Palmer, AK 99645, a Special Use Permit to conduct aeronautical and/or aviation-r elated activities at the Kenai Municipal Airport subject to the requirements and the conditions set fo1ih below. 1. Premises. Pennittee shall have the non-exclusive right to use 15,000 square feet as described in the attached Exhibit A for the uses identified in this Pennit. 2. Term. The tem1 of this Permit shall be for l year commencing on July 1, 2019 and ending on June 30, 2020. Regardless of the date of signature, this Pennit shall be effective as of July 1, 2019. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Pennittee under this Pemut: A. Permit: Pennittee shall pay a monthly fee of $1,301.25 plus applicable sales tax. B. Proximity Card for Gate Access: 1n addition to the general pem1it fee, Permittee sha ll pay a deposit of One Hundred Dollars ($100 .00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offaet to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Pem1it. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services , a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo A venue, Kenai , AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency , interest at the rate of I 0% per annum, and penalty of 10% shall also be due (KMC 1. 75.0 I 0). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for tennination of this Permit. (See~ 22, Termination) 4. Use. City authorizes Pennittee's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page l of8 Page 36 of 126 Aircraft Parking. NOTE: 17zis permit does not guarantee the exclusive use of the area identified in Exhibit A . City reserves the right to re-assign Pennittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. Thi s Permit, and any access lights allowed hereunder, are for Pennittee's use only and may not be transferred or assigned. Use of the Premises by Pennittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and muni cipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterpris e not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeJler, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airpo1t Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perform services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and guests , and anyone else acting by, on behalf of, or under the authority of Pern1ittee on the Airpo11, that perforn1 any repairs or activities authorized under this Pennit act in a manner that ensures the safety of people and the Airport, the protection of public health and the envirorunent, and the safety and integrity of the Airpo1t and any premises on the Airport. Pe1m ittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integiity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. Special Use Pennit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 2of8 Page 37 of 126 7. Coordination with Airport Management. Pennittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by a11 reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. Radio Transmitting Equipment. Pennittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains h igher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-fom1 contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Pennit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Pem1ittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated "A-" or better by A.M. Best. IL Pennittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates , endorsements, or a combination thereof, and signed by a person authodzed by the insurer to bind coverage on its behalf. 111 . Pennittee shall request a waiver of subrogation against City from Special Use Permit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 3of8 Page 38 of 126 Pennittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2019. The effective date of the insurance shall be no later than July 1,2019. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds . Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Pem1ittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incmTed in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Pennittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively refened to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Pe1mittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airp01t, and/or Permittee's exercise of the privileges granted in this Pennit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent matelials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Pennittee shall be liable for any dan1age caused by and costs associated with any spill, the cleanup of any spill , or the Special Use Pe1111it-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 4of8 Page 39 of 126 discharge of petroleum products or haz ardous m aterials due to Permitte e's use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Pennittee further agrees to have a copy of the fuel spill prevention and response plan located in the Pem1ittee's fuel dispensing equipment at all times . Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Pennittee's activities. Permittee shall not store any personal property, solid waste, petroleum products , Hazardous Material as defined by 14 CFR § 171 .8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Pennittee is aware that there are significant penalties for improperly disposing of the Hazardous Mate1i als and other waste and for submitting false information regarding Hazardous Materials , including th e possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the material in the event of spillage or dripping of gasoline, oi l, grease, or any other material which may be unsightly or detrin1ental to the pavement or surface in or on any area of the Airpo1i. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50' of any aircraft fuel facility or fuel truck. P ermittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports , the National Fire Protection Associations ' "Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities , b y City or other regulating entities to which Pennittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13 . Hazardous Substances and Materials . Pe1111ittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Pem1ittee shall not discriminate against any person because of the pers on 's race, creed, color national 01igin , sex, age, or handicap . Permittee recogni z es the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services prov ided under thi s Pemlit on a reasonable, and not unjustly Specia l Use Permit-Alaska Air Fuel , In c. (Apron Aircraft Parking) Page 5of8 Page 40 of 126 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, ce1iificates, and other documents required for its operations under the Permit. Pennittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Pem1it, and Permittee's activities conducted under this Pem1it, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Pennit. Further, Pennittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Pemlit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Pemut are not exclusive to Pennittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Pemiit are personal to Permittee and may not be assigned by Pem1ittee. 19 . No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms , conditions, and requirements herein contained , or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or require ments. 21. Personalty. Pem1ittee shall remove any and all personal property, including all vehicles, from the Premises at the te1111ination of this Pem1it (or any renewal thereof). Personal prope1iy placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon te1mination of this Pennit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Pennittee or of its customers. 22. Termination; Default. This Permit may be terminated by either paiiy hereto by giving 30 days advance written notice to the other party. City may terminate the Pe1mit inunediately, or upon notice shorter than 30 days, to protect public health and safety or due Special Use Pennit-Alaska Air Fuel , Inc. (Apron Aircraft Parking) Page 6of8 Page 41 of 126 to a failure of Pem1ittee to comply with condition or term of this Permit which failure remains uncured after notice b y City to Pennittee providing Permittee with a reasonable time period under the circumstances to correct the v iolation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required A irport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing , Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates , charges and fees . Permittee shall make payment within 30 days following the end of each month and without demand or inv oicing from City. Permittee shall also provide Airpo1i Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai , AK 99611 . 24. Impoundment. At the discretion of the Airpo1i Manager, City may impound any aircraft parked on the Premises after termination of this Permit. lmpoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shal1 be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee" means Alaska Air Fuel, lnc. and where the contex t reasonably indicates, its officers, agents, and employees. "Airport" means the Kenai Municipal Airpo1i. CITY OF KENAI Paul Ostrander City Manager Date ALASKA AIR FUEL, INC. John Sliwinski Vice President Special Use Pennit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Date Page 7 of8 Page 42 of 126 ACKNOWLEDGMENTS ST A TE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on th.is __ day of , 2019, the foregoing instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of Kenai, an A laska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires : ____ _ ST ATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing instrument was acknowledged before me by John Sliwinski, Vice President, Alaska Air Fuel, Inc ., on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: Jamie Heinz, City Clerk SEAL: APPROVED AS TO FORM: Seo;;:;-~ Attorney Special Use Perrnit-Alaska Air Fuel, Inc. (Apron Aircraft Parking) Page 8of8 Page 43 of 126 ... Exhibit A Alaska Ai r Fuel 15,000 sqft Page 44 of 126 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. Will.OW ST. sum: 200 KENAI, ALASKA 99611 TELEPHONE 907~7951 FAX 907.;za3.3737 Airport Commission \\ ('\ (); Mary Bondurant -Airport Man~ Erica Brincefield -Assistant May 20, 2019 Crowley Fuels LLC. -Special Use Permit Crowley Fue ls LLC is requesting renewal of the special use permit for aviation fueling on apron fueling area, 35,000 square feet. The special use permit will be effective for one year from July 1, 2019 to June 30, 2020. The rate is based on the table b elow passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY 15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0 .528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The Airport has a valid certificate of insurance on file and Crowley Fuels LLC is current in all fees owed to the Airport. Does Commission recommend Council approve tlze Special Use Permit to Crowley Fuels LLC? Attachment www.KenaiAirport.com Page 45 of 126 SPECIAL USE PERMIT -2019 The CITY OF KENAI (City) grants to CROWLEY FUELS LLC (Permittee), whose address is 201 Arctic Slope Ave., Anchorage, AK 99518, a Special Use Permit for the fueling area on the apron at the Kenai Municipal Airport subject to the requirements and the conditions set f01ih below. I. Premises. Permittee shall have the non-exclusive right to use 35,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Pennit shall be for I year commencing on July 1, 2019 and ending on June 30, 2020. Regardless of the date of signature, this Permit shall be effective as of July 1, 2019. 3. Permit Fees. Pennittee shall pay the following fees for the privileges extended to Pennittee under this Pemut: A. Permit: Pennittee shall pay a monthly fee of $3,036.25 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee, Permittee shall pay a deposit of One Hundred Dollars ($100 .00) for the use of each proximity card issued to Pennittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Pennittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to Ci ty from Permittee at the tennination of this Pennit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai , ATTN: Finance Department, 210 Fidalgo Avenue, Kenai , AK 99611 and a courtesy notice of payment provided to Airp01i Administration at 305 North Willow Street, Suite 200 , Kenai , AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of 10% per annum, and penalty of I 0% shall also be due (KMC 1.75 .010). Interest shalJ accrue from the date due until the date paid in full . Failure to timely make payments is grounds for te1mination of this Permit. (Se e i! 22 , Tennination) 4 . Use. City authorizes Per mittee 's non-exclusive use of the Prenuses for the following purpose(s): Special Use Permit-Crowley (Apron Fueling Area) Page I of 8 Page 46 of 126 Aviation Fueling on Apron Fueling Area. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. Citv reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Pennittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Pem1it, and any access rights allowed hereunder, are for Permittee's use only and may not be transfe1Ted or assigned. Use of the Premises by Pem1ittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Pennittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft. aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perfom1 services on their own aircraft. 5. Airport Operations. Pennittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airpo1t, that perfonn any repairs or activities authorized under this Pennit act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airport and any premises on the Airpo1i. Permittee shall employ qualified persormel and maintain equipment sufficient for the purposes of this provision. The Permittee shall inunediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airp01i , the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and auth01ity to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Permit. Special Use Pennit-Crowley (Apron Fueling Area) Page 2 of 8 Page 47 of 126 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Pennittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Pem1ittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher lin1its. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-fon11 contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Pennittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Pennit or at the Premises as required by AS 23.30 .045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Pennittee under this Pennit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occun-ence. This insurance must cover all owned, hired, and non- owned motor vehicles the Pem1ittee uses on the Airport. The policy must name the City as an additional insured . D. All insurance required must meet the following additional requirements: I. All policies will be by a company/corporation currently rated "A-" or better by A.M. Best. ii. Pennittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. Special Use Permit-Crowley (Apron Fueling Area) Page 3of8 Page 48 of 126 111. Permittee shall request a waiver of subrogation against City from Permittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. 1v. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2019. The effective date of the insurance shall be no later than July 1, 2019. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand , Pe1mittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Pennittee assumes full control and sole responsibility as between Pennittee and City for the activities of Pem1ittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Ai1vort and its exercise of the privileges granted in this Pennit. 11. Indemnity, Defend, and Hold Harmless Agreement. Pennittee agrees to fully indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses , judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Pennittee in connection with or arising from or out of Permittee 's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's e xercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Pernu ttee provide adequate absorbent mate1ials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for Special Use Pe1mit-Crowley (Apron Fueling Area) Page 4of8 Page 49 of 126 any damage caused by and costs associated with any spill, the cleanup of any spill, or the discharge of petroleum products or hazardous materials due to Pennittee's use of the Apron and/or use of the Airport. Pennittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Pem1ittee's activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, con-osive, reactive, or toxic) or any hazardous substance on any pmiion of the Airpmi. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations . Pennittee shall immediately remove the material in the event of spillage or dripping of gasoline, oil , grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Pe1mittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50 ' of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the cun-ent version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall confonn and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Pem1ittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Pem1ittee will furnish services provided under this Permit on a reasonable, and not unjustly Special Use Permit-Crowley (Apron Fueling Area) Page 5of8 Page 50 of 126 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Perrnittee shall obtain and maintain all required federal, state, and local licenses, certificates, and other documents required for its operations under the Permit. Pennittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Permit, and Perrnittee's activities conducted under this Pennit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect dming the term of this Pennit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City bas the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Pennittee. 19. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Pemlittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms , conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal prope1ty, including all vehicles , from the Premises at the termination of this Pennit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Pennittee or of its customers. 22 . Termination; Default. This Permit may be temunated by either party hereto by giving 30 days advance written notice to the other party. City may terminate the Pennit immediately, or upon notice shorter than 30 days , to protect public health and safety or due Special Use Permit-Crowley (Apron Fueling Area) Page 6of8 Page 51 of 126 to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing , Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule ofrates, charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Pemlittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airp01t landing fees shall be paid at the Airport Administration Building, 305 N01ih Willow Street, Suite 200 , Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Pem1it. Irnpoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Permit, "Permittee' means Crowley Fuels LLC., and where the context reasonably indicates, its officers, agents, and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander City Manager Date CROWLEY FUELS LLC R. Desmond Mayo Vice President Special Use Permit-Crowley (Apron Fueling Area) Date Page 7of8 Page 52 of 126 ACKNOWLEDGMENTS 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, C ity Manager, of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: ____ _ STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2019, the foregoing instrument was acknowledged before me by R. Desmond Mayo , Vice President, Crowley Fuels LLC, on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: City Clerk SEAL: APPROVED AS TO FORM: ~ Scott M. Bloom, City A ttorney Special Use Permit-Crow ley (Apron Fueling Area) Page 8of8 Page 53 of 126 EXHIBIT A ._. - Crowley I EXHIBIT A Page 54 of 126 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. Will.OW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907-2833737 Airport Commission Mary Bondurant -Airport Mana Erica Brincefield -Assistant May 20, 2019 Empire Airlines, Inc. -Special Use Permit Empire Airlines, Inc. is requesting renewal of the special use permit for aircraft parking, 11,250 square feet. The special use permit will be effective for one year from July 1, 2019 to June 30, 2020 . The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive a t Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0 .528 FY2018 $ 0 .699 FY2019 $ 0.870 FY2 020 $ 1.041 FY20 2 1 $ 1.210 The Airport has a valid certificate of insurance on file and Empire Airlines, Inc. is current in a ll fees owed to the Airport. Does Commission recommend Council approve the Special Use Permit to Empire Airlines, Inc.? Attachment www .KenaiAirport.com Page 55 of 126 SPECIAL USE PERMIT-2019 The CITY OF KENAI (City) grants to EMPIRE AIRLINES, INC. (Permittee), whose address is 11559 N . Atlas Road , Hayden, ID 83835, a Special Use Pern1it for the purpose of aircraft parking at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Pern1ittee shall have the non-exclusive right to use 11,250 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Pennit shall be for I year commencing on July 1, 2019 and ending on June 30, 2020. Regardless of the date of signature, this Pennit shall be effective as of July I, 2019. 3. Permit Fees. Pennittee shall pay the following fees for the privileges extended to Pennittee under this Permit: A. Permit: Permittee shall pay a monthly fee of$975.93 plus applicable sales tax. B. Proximity Card for Gate Access : In addition to the general pennit fee , Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses permitted hereunder. City shall refund this deposit to Pem1ittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Permittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee w ill be established by the Airport Manager. Payment shall be directed to City of Kenai , ATTN : Finance Depa1iment, 2 10 Fidalgo A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent (10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. (See~ 22 , Tennination) Special Use Pern1it-Empire Airlines, Inc. (Parking) Page 1of8 Page 56 of 126 4. Use. City authorizes Pennittee's non-exclusive use of the Premises for the following purpose(s): Aircraft Parking. NOTE: This permit does not guarantee the exclusive use ofthe area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Pe1mittee's use only and may not be transferred or assigned. Use of the Premises by Pennittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airpo1t and as those laws and regula tions may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Pennit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perfo1m serv ices on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Pennittee, its employees , and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perfom1 any repairs or activities authorized under this Permit act in a maru1er that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airp01t and any premises on the Airport. Permittee shall employ qualified perso nnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. Special Use Permit-Empire Airlines, Inc. (Parking) Page 2of8 Page 57 of 126 6. Inspection. The Federal Aviation Administra tion (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Pennittee under this Permit. 7. Coordination with Airpo1i Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by aJI reasonable decisions and directives of the Airport Management regarding general use of the Airport by Pem1ittee. 8. Radio Transmitting Equipment. Pennittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Pennittee shall secure and keep in force adequate insurance, as stated below, to protect City and Pennittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Pernuttee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-fonn contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Pennittee 's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Pennit or at the Premises as required by AS 23.30.045 . Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Pe1111ittee under this Pe1mit. C. Commercial Automobile Coverage with not less than $1,000 ,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: I. All policies will be by a company/corporation currently rated "A-" or better by A.M . Best. 1i. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements , Special Use Permit-Empire Airlines, Inc. (Parking) Page 3of8 Page 58 of 126 or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. 111. Pennittee shall request a waiver of subrogation against City from Permittee's insurer and the waiver of subrogation, where possible , shall be provided at no cost to City. 1v. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Ev idence of insurance coverage must be submitted to City by July l , 20 I 9. The effective date of the insurance shall be no later than July l ,2019. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds . Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. IO. Assumption of Risk. Permittee assumes full control and so le responsibility as between Pennittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airpo1i and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Pennittee agrees to fully indemnify, defend, and hold harmless , the City of Kenai, its officers, agents , employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incuITed by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively refened to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Pennittee in connection with or arising from or out of Pennittee's activities on or use of the Premises , Pennittee's access to the Kenai Municipal Airp011, and/or Pennittee's exercise of the privileges granted in this Permit. Thi s shall be a continuing obligation and shall remain in effect after tem1ination of this Pennit. Special Use Permit-Empire Airlines, Inc. (Pa rking) Page 4of8 Page 59 of 126 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Pennittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Perrnittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the discharge of petroleum products or hazardous materials due to Pe1mittee' s use of the Apron and/or use of the Airport. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Pennittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Pennittee 's activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, c01Tosive, reactive, or toxic) or any hazardous substance on any p01iion of the Airpo1i. Pem1ittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the material in the event of spillage or diipping of gasoline, oil, grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp , inside an aircraft hangar, or within fifty feet (50 ') of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150 /5230-4 Aircraft Fuel Storage, Handling, and .Dispensing on Airports, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFPA 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Pem1ittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall confmm and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. Special Use Permit-Empire Airlines, Inc. (Parking) Page 5of8 Page 60 of 126 14. No Discrimination. Pennittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Pe1mit. Pem1ittee will furnish services provided under this Permit on a reasonable, and not unjustly discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Pennittee shall obtain and maintain all required federal, state, and local licenses , certificates, and other documents required for its operations under the Permit. Pennittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Pennit, and Pennittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the tem1 of this Pennit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Pennit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Permit are personal to Pem1ittee and may not be assigned by Petmittee. 19. No Joint Venture. City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms , conditions, and requirements herein contained, or refened to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Pennit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City , if not removed upon termination of this Permit and when so removed and /or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. Special Use Pem1it-Empire Airlines , Inc. (Parking) Page 6of8 Page 61 of 126 22. Termination; Default. This Pennit may be te1minated by either party hereto by giving thirty (30) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than thi1iy (30) days, to protect public health and safety or due to a failure of Permittee to comply with condition or te1m of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airpo1i fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Pennittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule of rates, charges and fees. Permittee shall make payment within thiliy (30) days following the end of each month and without demand or invoicing from City. Pennittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten (I 0) days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airpo1i Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. lmpoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes . Inconvenience or damage that may result from such movement will be at the risk of Perrnittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition , a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three (3) consecutive weeks not more than thirty (30) days nor less than seven (7) days before the t im e of the auction. 25. Definitions. As used in th is Pennit, "Permittee" means Empire Airlines, Inc. and where the context reasonably indicates , its officers, agents, and employees. "Airport" means the Kenai Municipal Airport. Special Use Permit-Empire Airlines, Inc. (Parking) Page 7of8 Page 62 of 126 CITY OF KENAI Paul Ostrander City Manager Date EMPIRE AIRLINES, INC. Randy Lanfell Date Director of Flight Operations ACKNOWLEDGMENTS STA TE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2019 , the foregoing instmment was acknowledged before me by PAUL OSTRANDER, City Manager, of the City of Kenai , an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: ____ _ ST ATE OF ALASKA ) ) SS . THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of 2019, the foregoing instrument was acknowledged before me by RANDY LANFELL, Director of Flight Operations , Empire Airlines, Inc., on behalf of the State of Alaska. Approved as to Fom1: ~ S cott Bloom City Attorney Notary Public for Alaska My Conunission Expires: ____ _ Special Use Permit-Empire Airlines, Inc. (Parking) Page 8of8 Page 63 of 126 Empire Special Use Permit 4 2A1 FedEx 7 6 8 3 7A-1 (2) 3A-1 EXHfBfT A Page 64 of 126 Municipal Airport Memo To: Through: From: Date: Subject: 305 N. Will.OW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907-283-3737 Airport Commission Mary Bondurant-Airport Man\\.~ Erica Brincefield -Assistant .,~ May 20, 2019 Everts Air Fuel, Inc. -Special Use Permit Everts Air Fuel, Inc. is requesting renewal of the special use permit for aircraft loading and parking, 30,000 square feet. The special use permit will be effective for one year from July 1, 2019 to June 30, 2020. The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f . x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.04 1 FY2021 $ 1.210 The Airport has a valid certificate of insurance on file and Everts Air Fuel, Inc. is current in all fees owed to the Airport. Does Commission recommend Council approve the Special Use Permit to Everts Air Fuel, Inc.? Attachment www.KenaiAirport.com Page 65 of 126 SPECIAL USE PERMIT -2019 The CITY OF KENAI (City) grants to EVERTS AIR FUEL, INC. (Permittee), whose address is P.O. Box 60908 , Fairbanks , AK 99706, a Special Use Pe1mit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Pennittee shall have the non-exclusive right to use 30,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The te1m of this Permit shall be for I year commencing on July 1, 2019 and ending on June 30, 2020. Regardless of the date of signature, this Pennit shall be effective as of July 1, 2019. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Pennittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $2,602.50 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general permit fee , Pe1111ittee shall pay a deposit of One Hundred Dollars ($100 .00) for the use of each proximity card issued to Pennittee by City to allow for gate access to the Airport to conduct the uses pennitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to City from Pennittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation suppo1t activities and uses not defmed in this Pennit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airpo1t Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of I 0% per annum, and penalty of 10% shall also be due (KMC 1.75.010). Interest shall accme from the date due until the date paid in full . Failure to timely make payments is grounds for tennination of this Pe1mit. (See~ 22, Termination) 4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Pagelof8 Page 66 of 126 Aircraft Loading and Parking. NOTE: This permit does not [Warantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice. to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only designated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transfened or assigned. Use of the Premises by Pem1ittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airport Manager or designated representative. The Airpmt Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perfonn services on their own aircraft. 5. Airport Operations. Permittee shall ensure that the Pern1ittee , its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Pem1it act in a manner that ensures the safety of people and the Airport, the protection of public health and the environment, and the safety and integrity of the Airpo11 and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Pern1it. Special Use Pe1mit-Eve1ts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 2of8 Page 67 of 126 7. Coordination with Airport Management Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Pe1mittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any govenm1ent-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Pemlittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Pennittee's insurance policy contains higher limits , City is entitled to coverage to the extent of the higher limits. A. Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual , with a per- occurrence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Permittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Pe1mit or at the Premises as required by AS 23.30.045. Permittee is fu1ther responsible to provide worker's compensation insurance for any s ubcontractor who directly or indirectly provides services to Permittee under this Pennit. C. Commercial Automobile Coverage with not less than $1,000,000 com bined s ingle limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the Permittee uses on the Airp01t. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: 1. All policies will be by a company/corporation currently rated "A-" or better by A.M. Best. i1. Permittee shall submit to the City proof of continuous insurance coverage in the fonn of insurance policies, ce1tificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. m. Pennittee shall request a waiver of subrogation against City from Special Use Pennit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 3of8 Page 68 of 126 Pennittee's insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2019. The effective date of the insurance shall be no later than July I, 2019 . City may increase the amount or revise the type of required insurance on w1itten demand without requiring amendments to this Permit. City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, Permittee shall submit to City evidence of insurance coverage that meets the requirements of the City. 10. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Pennittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incmTed in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Pennittee agrees to fully indemnify, defend, and hold hannless , the City of Kenai, its officers, agents , employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties , and expenses of every type and description, including any fees and/or costs reasonably incutTed by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Pem1ittee in connection with or aiising from or out of Permittee's activities on or use of the Premises , Permittee's access to the Kenai Municipal Airport, and/or Permittee's exercise of the privileges granted in this Pennit. This shall be a continuing obligation and shall remain in effect after tem1ination of this Permit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills . The City requires that Permittee provide adequate absorbent mate1ials and tools a vailable on the Premises and at the airport in order to maintain a fuel spill and response capability. Pennittee shall be liable for any damage caused by and costs associated with any spill , the cleanup of any spill, or the Special Use Pennit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 4of8 Page 69 of 126 discharge of petroleum products or hazardous materials due to Pennittee's use of the Apron and/or use of the Airport. Pe1mittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Pem1ittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Permittee's activities. Permittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, c01Tosive, reactive, or toxic) or any hazardous substance on any p01iion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false infonnation regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall inunediately remove the material in the event of spillage or dripping of gasoline, oil , grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 50' of any aircraft fuel facility or fuel truck. Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airp01is, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFPA 407 ( 1996 version), and the cun-ent version of the International Fire Codes. All ins pections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. P e rmittee shall conform and be subject to the requirements of 14 CFR § I 39.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Pennittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Pennittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Pem1it on a reasonable, and not unjustly Special Use Pe1mit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 5of8 Page 70 of 126 discriminatory, basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or service provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal, state , and local licenses, certificates, and other documents required for its operations under the Permit. Pennhtee shall provide proof of compliance to City upon request by the City . 16. Compliance with Law/Grant Assurances. This Pennit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal , state, and City statutes, ordinances, and regulations in effect during the term of this Pennit. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Pe1mit are not exclusive to Pennittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Pem1it are personal to Pem1ittee and may not be assigned by Pem1ittee. 19. No Joint Venture . City shall not be construed or held to be a partner or joint venturer of Pennittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms , conditions , and requirements herein contained, or refen-ed to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such tem1s, conditions, or requirements. 21. Personalty. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Pen11it (or any renewal thereof). Personal prope1iy placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Pennit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storag e charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 22 . Termination; Default. This Permit may be tenninated by either party hereto by giving 30 days advance written notice to the other paiiy. City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety or due Special Use Pe1mit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 6of8 Page 71 of 126 to a failure of Pem1ittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Pem1ittee with a reasonable time period under the circumstances to correct the violation or breach. 23 . Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Permit and, as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive sc hedule of rates, charges and fees. Permittee shall make payment within 30 days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airpmt Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after tennination of this Permit. Impoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Pem1ittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of three consecutive weeks not more than 30 days nor less than seven days before the time of the auction. 25. Definitions. As used in this Pem1it, "Pennittee" means Everts Air Fuel, Inc. and where the context reasonably indicates , its officers, agents, and employees. "Airport" means the Kenai Municipal Airport. CITY OF KENAI Paul Ostrander City Manager Date EVERTS AIR FUEL, INC. Dave Miller President Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Date Page 7of8 Page 72 of 126 ACKNOWLEDGMENTS 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 cotporation, on behalf of the City. Notary Public for Alaska My Commission Expires: ____ _ STATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 20 19, the foregoing instrument was acknowledged before me by Dave Miller, President, Everts Air Fuel, Inc., on behalf of the State of Alaska. Notary Public for Alaska My Commission Expires: ____ _ ATTEST: Jamie Heinz, City Clerk SEAL: APPROVED A~ FORM: ~ Scott M. Bloom, City Attorney Special Use Permit-Eve1is Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 8of8 Page 73 of 126 Everts Air Fuel 30,000 sqft --- EXHIBIT A I EXHIBITA Page 74 of 126 Municipal Airport Memo To: Through: From: Date: 305 N. WIUOW ST. sum: 200 KENAI, ALASKA 99611 TEl.EPHONE 907-283-7951 FAX907~ Airport Commission Mary Bondurant -Airport Mana Erica Brincefield -Assistant May 20, 2019 Subject: UPSCO United Parcel Service Co., Inc •. -Special Use Permit UPS CO United Parcel Service Co., Inc. is requesting renewal of the special use permit for aircraft loading and parking, 4,000 square feet. The special use permit will be effective for one year from July 1, 2019 to June 30, 2020. The rate is based on the table below passed by City Council at the May 18, 2016 Council meeting. Apron Rate Increases to Arrive at Market in 6 years Apron Lease Rate FY15 $1.80s.f. x .08 $ 0.144 FY2016 $ 0.357 FY2017 $ 0.528 FY2018 $ 0.699 FY2019 $ 0.870 FY2020 $ 1.041 FY2021 $ 1.210 The Airport has a valid certificate of insurance on file and UPSCO United Parcel Service Co., Inc. is current in all fees owed to the Airport. Does Commission recommend Council approve the Special Use Permit to UPSCO United Parcel Service Co., Inc.? Attachment www.KenaiAirport.com Page 75 of 126 SPECIAL USE PERMIT 2019 The CITY OF KENAI (City) grants to UPSCO United Parcel Service Co., Inc. (Pennittee), whose address is 6200 Lockheed Ave., Anchorage, AK 99502, a Special Use Permit to conduct aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the non-exclusive right to use 4,000 square feet as described in the attached Exhibit A for the uses identified in this Permit. 2. Term. The term of this Permit shall be for 1 year commencing on July I , 2019 and ending on June 30, 2020. Regardless of the date of signature, this Permit shall be effective as of July 1, 2019. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Pemuttee under this Permit: A . Permit: Pennittee shall pay a monthly fee of$347.00 plus applicable sales tax. B. Proximity Card for Gate Access: In addition to the general pennit fee , Pennittee shall pay a deposit of one hundred dollars ($100.00) for the use of each proximity card issued to Permittee by City to allow for gate access to the Airport to conduct the uses pe1mitted hereunder. City shall refund this deposit to Permittee when the card is returned to City. City may exercise a right of offset to apply the deposit to any outstanding balance due to C ity from Pennittee at the termination of this Permit. C. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Pennit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fida.Igo Avenue, Kenai, AK 99611 and a comtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate often percent (10%) per annum, and penalty often percent (10%) shall also be due (KMC 1.75 .010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for tennination of this Permit. (See~ 22, Tennination) 4. Use . City authorizes Pe1mittee's non-exclusive use of the Premises for the following purpose(s): Special Use Permit-UPSCO (Aircraft Loading & Parking) Pagelof8 Page 76 of 126 Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use of the area identified in Exhibit A. City reserves the right to re-assign Permittee, upon reasonable notice, to other areas as airport needs may require. Permittee shall have the right of ingress and egress to the Airport using only des ignated gate access locations (which may require a proximity card) for the use of the Premises. This Permit, and any access rights allowed hereunder, are for Permittee's use only and may not be transferred or assigned . Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Pennittee acknowledges that the use granted herein is sub ject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the Airport other than that specifically designated for that purpose by the Airp01t Manager or designated representative. The Airport Manager or designated representative reserves the right to designate reasonable areas where aircraft owners may perfom1 services on their own aircraft. 5. Airport Operations. Pe1mittee shall ensure that the Permittee, its employees, and guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the Airport, that perform any repairs or activities authorized under this Permit act in a manner that ensures the safety of people and the Airport , the protection of public health and the environment, and the safety and integ1ity of the Airport and any premises on the Airport. Permittee shall employ qualified personnel and maintain equipment sufficient for the purposes of this provision. The Permittee shall immediately notify City of any condition, problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety of persons using the Airport, the public health or the environment, or the safety or integrity of any premises on the Airport. 6 . Inspection. The Federal Aviation Administration (FAA) and/or City shall have the right and authority to inspect, at any time for any purpose whatsoever, the Premises as well as any and all equipment used by the Permittee under this Pennit. Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page2of8 Page 77 of 126 7. Coordination with Airport Management. Permittee shall coordinate all activities on the Airport with Airport Management, or a designated representative, and shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee. 8. Radio Transmitting Equipment. Permittee shall discontinue the use of any machine or device which interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. 9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Pennittee. Where specific limits are stated, the limits are the minimum acceptable limits . If Permittee's insurance policy contains higher limits, City is entitled to coverage to the extent of the higher limits. A . Commercial General Liability insurance, including premises, all operations, property damage, personal injury and death, broad-form contractual, with a per- occunence limit of not less than $1,000,000 combined single limit. The policy must include an endorsement under which the insurer extends coverage to Pennittee's fuel handling activities. The policy must name the City as an additional insured. B. Worker's compensation insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide worker's compensation insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occunence. This insurance must cover all owned, hfred, and non- owned motor vehicles the Pennittee uses on the Airport. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: 1. All policies will be by a company/corporation currently rated "A-" or better by A.M. Best. 11. Pem1ittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements , or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. HJ. Permittee shall request a waiver of subrogation against City from Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 3of8 Page 78 of 126 Permittee's insurer and the waiver of subrogation , where possible, shall be provided at no cost to City. iv. Provide the City with notification at least thirty (30) days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by July 1, 2019. The effective date of the insurance shall be no later than July 1,2019. City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Pem1it. City will base any increase or revision on reasonable and justifi able grounds . Within two weeks of the written demand, Permittee shall submit to City evi dence of insurance coverage that meets the requirements of the City. 10 . Assumption of Risk. Permittee assumes full control and so le responsibility as between Pennittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Pennittee shall provide all proper safeguards and shall assume all r isks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold harmless , the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages , costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and/or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any n egligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airpo1t, and/or Pem1ittee's exercise of the piivileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after tennination of this Perm.it. 12 . Fuel Spill Prevention and Response Plan . Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Pemtittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill , or the Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 4of8 Page 79 of 126 discharge of petroleum products or hazardous materials due to Permittee's use of the Apron and/or use of the Afrp01t. Permittee shall provide to City an acceptable fuel spill prevention and response plan and will maintain fuel spill and response capability. Permittee further agrees to have a copy of the fuel spill prevention and response plan located in the Permittee's fuel dispensing equipment at all times. Permittee must comply with the Airport's Storm Water Pollution Prevention Plan as appropriate to Pennittee's activities. Pennittee shall not store any personal property, solid waste, petroleum products, Hazardous Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that there are significant penalties for improperly disposing of the Hazardous Materials and other waste and for submitting false information regarding Hazardous Materials, including the possibility of fine and imprisonment for knowing violations. Permittee shall immediately remove the mateiial in the event of spillage or dripping of gasoline, oil , grease, or any other material which may be unsightly or detrimental to the pavement or surface in or on any area of the Airport. Permittee may not construct or install any above-ground or underground fuel storage tanks or dispensing systems at the Airport. No person shall smoke on an aircraft-parking ramp , inside an aircraft hangar, or within fifty feet (50') of any aircraft fuel facility or fuel tmck. Pennittee is subject to FAA Advisory Circular 150 /5230-4 Aircraft Fuel Storage, Handling, and Dispensing on Airpo1ts, the National Fire Protection Associations' "Standard for Aircraft Fueling Servicing" in NFP A 407 (1996 version), and the current version of the International Fire Codes. All inspections of fuel facilities, by City or other regulating entities to which Permittee is subject, shall be conducted to assure compliance with the fire safety practices listed in these referenced documents. 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin , sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Pe1mittee will furnish services provided under this Permit on a reasonable, and not unjustly Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 5of8 Page 80 of 126 disc1iminatory , basis to all users of the Airport and shall charge reasonable, and not unjustly discriminatory, prices for each product or setvice provided at the Airport. 15. Licenses and Permits. Permittee shall obtain and maintain all required federal , state, and local licenses, certificates, and other documents required for its operations under the Permit. Pennittee shall provide proof of compliance to City upon request by the City. 16. Compliance with Law/Grant Assurances. This Pe1mit, and Pennittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Penn it. Further, Permittee shall comply with all applicable requirements imposed on the Airport by federal law to ensure that the Airport's eligibility for federal money or for participation in federal aviation programs is not jeopardized. This Permit is subordinate to the City's grant assurances and federal obligations. 17. No Exclusivity. The privileges granted under this Permit are not exclusive to Pennittee. City has the right to grant to others any right or privilege on the Airport. 18. Assignment. The privileges granted under this Pe1mit are personal to Pennittee and may not be assigned by Permittee. 19. No Joint Venture. City shall not be constrned or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises or elsewhere at the Kenai Municipal Airport. 20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or refen-ed to , shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 21. Personalty. Pem1ittee shall remove any and all personal property, including all vehicles , from the Premises at the termination of this Pemut (or any renewal thereof). Personal prope1ty placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its customers. 22. Termination; Default. This Pem1it may be tenninated by either party hereto by giving thirty (30) days advance written notice to the other party. City may tenninate the Permit immediately, or upon notice shorter than thirty (30) days, to protect public health Spe cial Use Pennit-UPSCO (Aircraft Loading & Parking) Page 6of8 Page 81 of 126 and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. 23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required Airport fees is a condition of this Pe1mit and , as such, failure to timely pay landing and other airport fees is grounds for termination. Without limiting the foregoing, Permittee shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule ofrates, charges and fees. Permittee shall make payment within thirty (30) days following the end of each month and without demand or invoicing from City. Permittee shall also provide Airport Administration with monthly certified gross take-off weight reports within ten (10) days following the end of each month for landings for the preceding month. Airport landing fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite 200, Kenai, AK 99611. 24. Impoundment. At the discretion of the Airport Manager, City may impound any aircraft parked on the Premises after termination of this Permit. lmpoundment may be accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for impoundment purposes. Inconvenience or damage that may result from such movement will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on each aircraft impounded. In addition, a daily storage fee shall be charged for each day the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety (90) days after impoundment shall be considered abandoned and shall be subject to sale at public auction. Notice of any auction shall be published. Publication shall be in a newspaper of general circulation in that area for at least once during each of tlu·ee (3) consecutive weeks not more than thhty (30) days nor less than seven (7) days before the time of the auction. 25. Definitions. As used in this Pe1mit, "Permittee" means UPSCO, United Parcel Service Co., Inc. and where the context reasonably indicates, its officers , agents, and employees. "Airport" means the Kenai Municipal Airp01t. CITY OF KENAI Paul Ostrander City Manager Date UPSCO Robert Vey Date Extended Centers Manager Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 7of8 Page 82 of 126 ACKNOWLEDGMENTS ST ATE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on th.is __ 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 the City. Notary Public for Alaska My Commission Expires: ____ _ ST A TE OF ALASKA ) ) SS. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this __ day of , 2019, the foregoing instrument was acknowledged before me by Robert Vey, the Extended Centers Manager, on behalf of UPS CO, United Parcel Service Co., Inc. Approv ed as to Fom1: .~ Scott Bloom City Attorney Notary Public for Alaska My Commission Expires: ____ _ Special Use Permit-UPS CO (Aircraft Loading & Parking) Page8of 8 Page 83 of 126 Page 84 of 126 Kenai City Council Meeting Page 1 of 4 June 5, 2019 ACTION AGENDA KENAI CITY COUNCIL – REGULAR MEETING JUNE 5, 2019 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.city A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 1. LTJG Scott Peters – U.S. Coast Guard involvement in the Kenai River Dip Net Fishery. C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3066-2019 – Accepting and Appropriating a Grant from the Federal Aviation Administration for the 2019 Airfield Marking, Crack Sealing, and Minor Pavement Repair Project and Awarding a Construction Contract to Complete the Work. (Administration) • Substitute Ordinance No. 3066-2019 – Increasing Estimated Revenues and Appropriations in the Airport Special Revenue and Airport Improvements Capital Project Funds, Accepting and Appropriating a Grant from the Federal Aviation Administration, and Awarding a Construction Contract for Completion of the 2019 Airfield Marking, Crack Sealing, and Minor Pavement Repair Project. (Administration) 2. ENACTED UNANIMOUSLY. Ordinance No. 3067-2019 – Accepting and Appropriating $26,605.40 in Asset Forfeiture Sharing Funds and Appropriating Those Funds Into the Police Small Tools Account for the Purpose of Purchasing Law Enforcement Equipment. (Administration) Page 85 of 126 Kenai City Council Meeting Page 2 of 4 June 5, 2019 3. POSTPONED AS AMENDED. Ordinance No. 3068-2019 – Amending Kenai Municipal Code 14.20.320- Definitions and 14.20.330- Standards for Commercial Marijuana Establishments to Prohibit Onsite Consumption of Marijuana at Retail Marijuana Stores Requiring an Onsite Consumption Endorsement. (Council Members Pettey and Glendening) 4. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2019-34 – Amending its Comprehensive Schedule of Rates, Charges, and Fees to Incorporate Changes included in the FY2020 Budget to include Adjusting the Kenai Municipal Airport Apron Rental Rates, Airport Reserve Land Annual Lease Rates, Animal Control Fees, Adjusting the Monthly Rental Rates at Vintage Pointe, Increasing Water/Sewer Rates, and Ambulance Fees, and Implementing a New Library Fee, and Increasing Senior Center Rental Fees. (Administration) 5. ADOPTED UNANIMOUSLY. Resolution No. 2019-35 – Authorizing Budget Adjustments in the Airport Fund for Costs in Excess of Budgeted Amounts. (Administration) 6. ADOPTED UNANIMOUSLY. Resolution No. 2019-36 – Accepting a Donation from Kenai Senior Connections, Inc. for $50,000 to the FY2019 Budget. (Administration) E. MINUTES – None. F. UNFINISHED BUSINESS – None. 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. INTRODUCED BY THE CONSENT AGENDA/ PUBLIC HEARING SET FOR 6/19/19 *Ordinance No. 3069-2019 – Appropriating FY2019 Budgeted Funds for Municipal Roadway Improvements in the Municipal Roadway Improvements Capital Project Fund for Future Roadway Projects. (Administration) 4. INTRODUCED BY THE CONSENT AGENDA/ PUBLIC HEARING SET FOR 6/19/19 *Ordinance No. 3070-2019 – Authorizing a Budget Transfer in the General Fund, Decreasing Estimated Revenues and Appropriations in the Senior Citizen Special Revenue Fund and Appropriating FY2019 Budgeted Amounts in the Senior Center Improvement Capital Project Fund for Carpet Replacement. (Administration) 5. APPROVED UNANIMOUSLY. Action/Approval – Second Amendment to Agreement for Janitorial Services for the City of Kenai City Hall, Airport, Community Library, and Police Department. (Administration) Page 86 of 126 Kenai City Council Meeting Page 3 of 4 June 5, 2019 6. APPROVED UNANIMOUSLY. Action/Approval – City Sponsorship of $1,000 to Alaska Municipal League for the 2019 Summer Legislative Conference Being Held in Soldotna. (Vice Mayor Tim Navarre) 7. APPROVED UNANIMOUSLY. Action/Approval – City Donation of a Memorial Plaque Honoring Ron Malston to be Placed at Leif Hanson Memorial Park. (Vice Mayor Tim 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 J. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION 1. Discussion of Kenai Visitor Center Management and Potential Staffing Changes, a Matter of Which the Immediate Knowledge may have an Adverse Effect upon the Finances of the City [AS44.62.310(c)(1)] and a Subject that Tends to Prejudice the Reputation and Character of a Person or Persons Currently Employed by the City [AS44.62.310 (c)(2)] M. PENDING ITEMS – None. N. ADJOURNMENT **************************************************************************************************** INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review 2. Celebration of Birds Article and Events Information Page 87 of 126 Kenai City Council Meeting Page 4 of 4 June 5, 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. Page 88 of 126 'Vtff ate t<J/t~ a Pa~~ Ct'tj a;/t~ a ratwc-e II 210 Fidalgo Ave , Kenai , Alaska 99611-7794 Telephone: (907) 283-7535 I Fax: (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM: DATE: SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Mary Bondurant, Airport Manager April 4 , 2019 April Mid-month Report 2018 Terminal Rehabilitation Project-Construction: This project is well under way. The Upper Deck is closed from April 1 through May 31, 2019 . All Departure and Arrival traffic is at the north end of the terminal, south entrance is closed off. 2019 Airfield Marking. Crack Sealing. & Pavement Repair (Design) -The plans, specs, and Construction Safety & Phasing Plan (CSPP) are being reviewed by the FAA The project will bid in April 2019. 2019 Alaska Fire Training Facility Rehabilitation -A Request for Proposal for design was advertised with a due date April 4, 2019. In-house Activities - Airport Administration continues to work with City Administration on revisions to Title 22 on Disposition of City-Owned Lands. Airport Operations is busy with spring cleanup of the airfield, terminal grounds, and snow removal equipment maintenance. Great Aviation Gathering -Airport Manager and Administrative Assistant will be in Anchorage from May 3-5, 2019 promoting the Airport and the 2019 Kenai Peninsula Air Fair. Our booth is #191 -Stop by and see us!! Page 89 of 126 Page 2 of 2 SOA Airports Conference -Airport Manager and Operation Specialists will be attending this bi-annual conference May 7-9 , 2019 in Anchorage . This is an excellent opportunity to network with other Alaska airports to discuss maintenance projects , innovations in day to day operations , EOG/lessons learned from central reg ion earthquake, communications , air carrier concerns and issues , airfield condition reporting, changes to fleet, winter events and after hour fees, maintenance management systems , UAS issues, PFAs, and fueling safety, etc . 19th Annual Kenai Peninsula Air Fair -Mark your calendar for Saturday, June ath! The poster and t-shirt are designed and ready to print. We are very excited to have the gth Army Band for live music! FAA Certification Inspection -The annual FAA 139 certification inspection will be held June 25-27 , 2019. Tri-annul Mass Casualty-A requirement of CFR 139.325 for a holder of a Class 1 Airport Operating Certificate is a full-scale airport emergency plan exercise at least once every 36 consecutive calendar months . This drill is scheduled for October 2, 2019 . 2 Page 90 of 126 'fltfl~ «1/t/t, a Po.&'t, Ct'tj «1/t/t, a Fu.tfl.l"e 11 210 Fidalgo Ave, Kenai , Alaska 99611-7794 Telephone : (907) 283-75351 Fax : (907) 283-3014 www.kenai.city MEMORANDUM TO: THROUGH: FROM : DATE : SUBJECT: Mayor Brian Gabriel and Kenai City Council Paul Ostrander, City Manager Mary Bondurant, Airport Manager May 1, 2019 May Mid-month Report 2018 Terminal Rehabilitation Project-Construction : This project is well under way. The Upper Deck is closed from April 1 through May 31 , 2019. All Departure and Arrival traffic is at the north end of the terminal, south entrance is closed off. 2019 Airfield Marking, Crack Sealing, & Pavement Repair-Design is complete and the project will be advertised the week of May 7, 2019 . 2019 Alaska Fire Training Facility Rehabilitation - A contract was awarded for design services and should be complete middle of Ju ly. Invitations to bid for construction will be advertised late July and early August 2019. In-house Act iviti es - Airport Operations continues snow and sand clean-up on the airfield and terminal grounds. The float plane basin is open and the crew will be working on the slips and repairing the roof to the registration shack. 19th Annual Kenai Peninsula Air Fair -Mark your calendar for Saturday, June 81h! Posters and t-shirts are printed! We are very excited to have the gth Army Band for live music and many military units have committed to the event. TSA Inspection -The annual TSA inspector will be at the Kenai Airport on May 13-141h. Page 91 of 126 Page 2 of 2 FAA Certification Inspection -The annual FAA 139 certification inspection will be held June 25-27 , 2019. Tri-annul Mass Casualty - A requirement of CFR 139.325 for a holder of a Class 1 Airport Operating Certificate is a full-scale airport emergency plan e xercise at least once every 36 consecutive calendar months . This drill is scheduled for October 2 , 2019 . 2 Page 92 of 126 FAA ALASKAN REGION AIRPORTS DIVISION AIRPORT IMPROVEMENT PROGRAM {AIP) FY 1982 -FY 2018 Note: Each project within a "Various Locations" grant is listed under the specific airport where the work or equipment is being applied . For those projects, the various grant number is listed and the project description begins with "[Various Grnt]". Page 93 of 126 Obligated: Closed: Entitlement Discretionary TOTAL Kasaan Kasaan (KXA) 3-02-0139-001-1989 Rehabilitate Apron (RE AP IM) 9/22/1989 4/17/1992 $115,928 $0 $115,928 Kasigluk Kasigluk (Z09) 3 -02-0341-001-1997 Install Apron Lighting (ST AP LI) Construct Taxiway (ST TW CO) Install Runway Lighting (ST RW LI) 6/13/1997 6/13/1997 6113/1997 Acquire Land for Development (ST LA OV) 6/13/1997 Acquire Snow Removal Equipment (ST EQ SN) 6/13/1997 Expand Apron (ST AP IM) 6/13/1997 Improve Snow Removal Equipment Bu ilding (ST BO SN) 6/13/1997 Install Runway VerticalNisual Guidance System (ST 6113/1997 RWVI) Extend Runway 17/35 (S T RW IM) Improve Access Road (OT GT AC) 3-02-0200-087-2012 [Various Grnt] Rehabilitate Runway 17/35 Various Surface Preservation Maintenance (Kasigluk) (RE RW IM) 3-02-0200-095-2014 [Various Gmt} Remove Obstructions Various Obstruction Removal (+OBJ) (SA OT OB) 3-02-0200-104-2015 [Various Grnt} Rehabilitate Runway 17/35 Accomplish Various Airport Surface Preservation Maintenance (Kasigluk Rehab Threshold Markings) (RE RW IM) Kenai Municipal Kenai Municipal (ENA) 3-02-0142-001-1983 Acquire Aircraft Rescue & Fire Fighting Safety Equipment (ST EQ MS) Rehabilitate Apron (RE AP IM) Install Apron Lighting (ST AP LI) Construct Apron (CA AP CO) 3-02-0142-002-1985 Conduct Airport Master Plan Study (P L PL MA) 3-02-0142-003-1986 Install Apron Lighting (ST AP LI) Rehabilitate Runway 1/19 (RE RW IM) Construct Tax iway (CA TW CO) Rehabilitate Apron (R E AP IM) 3-02-0142-004-1987 Acquire Security Equ ipment (SA EQ SE) Construct Runway 01/19 (ST RW CO) Construct Taxiway (ST TW CO) Improve Access Road (OT GT AC) Construct Taxiway (ST TW CO) Construct Taxiway (ST TW CO) 6/13/1997 6/13/1997 9/19/2012 9/22/2014 9/21/2015 9/28/1983 9/28/1983 9/28/1983 9/28/1983 9/25/1985 9/9/1986 9/9/1986 9/9/1986 9/9/1986 8/27/1987 8/27/1987 8/27/1987 8/27/1987 8/27/1987 8/27/1987 9/14/1988 ~~~~~~~~~~~~~ $115,928 $0 $115,928 61712000 61712000 61712000 61712000 61712000 61712000 61712000 61712000 $25,000 $100,000 $175,000 $310,000 $190,000 $400,000 $240,000 $60,000 61712000 $2 ,114,390 61712000 $60,000 $10,500 $47,437 $4,620 $3 ,736,947 1/17/1986 $12,375 1/17/1986 $214, 116 1/17/1986 $24, 750 1/17/1986 $236,208 4/19/1988 2/4/1988 2/4 /1988 2/4/1988 2/4/1988 4/20/1990 4/20/1990 4/2 0/1990 4/20/1990 4/20/1990 4/20/1990 4/11/1990 S67,060 $30,937 $336,562 $60,570 $269,766 $26,219 S576,367 $7.433 $42,768 $63,234 $18,592 $0 $0 $0 $0 $0 $0 $0 $0 $25,000 $100,000 $175,000 $310,000 $190,000 $400,000 $240,000 $60,000 $0 $2 ,114,390 $0 $60,000 $0 $10,500 $0 $47,437 $0 $4 ,620 so $3,736,947 so $12,375 $214,116 $24 ,750 $236,208 $67,060 $30,937 $336,562 $60,570 $269,766 $26,219 $576,367 $7 ,433 $42,768 $63,234 $18,592 3-02-0142-005-1988 Rehabilitate Taxiway (RE TW IM) 3-02-0142-006-1 989 Conduct Miscellaneous Study (PL PL MS) 4/21 /1989 11/17/1992 $247,384 $53,242 $0 so $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $247,384 $53,242 Wednesday, December 12, 2018 Page 56 of 148 Page 94 of 126 Obligated: Closed: Entitlement Discretionary TOTAL 3 -02 -0142-007-1989 Rehabilitate Runway Lighting (RE RW LI) Rehabil itate Taxiway (RE TW IM) Rehabilitate Runway 1 (RE RW IM) 3-02-0142-008-1990 Construct Taxiway (ST TW CO) 3-02-0142-009-1991 Acquire Snow Removal Equipment (ST EQ SN) 3-02-0142-010-1991 Acquire Land for Development (ST LA DV) 3-02-0142-011 -1991 Acquire Aircraft Rescue & Fire Fighting Vehicle (SA EQ RF) 3-02-0 142-012-1992 Improve Runway Safety Area 1/19 (ST RW SF) 3-02-0142-013-1992 Acquire Security Equipment (SA EQ SE) 3-02-0142-014-1993 Acqu ire Snow Removal Equipment (ST EQ SN) 3-02-0142-015-1993 Acqu ire Snow Removal Equipment (ST EQ SN) 3-02-0142-016-1993 Rehabilitate Taxiway (RE TW IM) 3-02-0142-017-1993 Acquire Security Equipment (SA EQ SE) 3-02-0142-018-1994 Install Airfield Guidance Signs (SA OT SG) 3 -02-0142-019-1994 Acquire Snow Removal Equipment (ST EQ SN) 3-02-0142-020-1995 Conduct Airport Master Plan Study (PL PL MA) 3-02-0142-021-1995 Acquire Snow Removal Equipment (ST EQ SN) 3-02-0142-022-1997 Construct Runway 1 R-19L (ST RW CO) Extend Taxiway (ST TW IM) 3-02-0142-023-1997 Construct Aircraft Rescue & Fire Fighting Training Facility (ST OT RF) 8 /23/1989 1214/1990 $146,980 8 /23/1989 1214/1990 8 /23/1989 1214/1990 8/23/1990 2/28/1991 9/10/1991 11/17/1992 81711991 10/9/1991 9/9/1991 10/13/1992 $193,523 $687,838 $230,368 $96 ,383 $147,611 $270,832 5/28/1992 1110/1996 $1,452,816 9/8/1992 12/22/1994 12/2/1992 11115/1993 1 /28/1993 11 /22/1993 6/15/1993 12/20/1994 7 /13/1993 12/13/1994 6/20/1994 1 /12/1996 6/22/1994 6/1 /1995 6/5/1995 8/15/2000 4/25/1995 10/24/1998 71811997 121612000 7 /8 /1997 1216/2000 12/1711997 9/26/2000 $129, 122 $172,678 $242,944 $172,926 $79,510 $34,888 $207,943 $281, 155 $197,847 $303,482 $788,749 $53 ,128 $0 $0 $0 $0 $0 $0 $0 $146,980 $193,523 $687,838 $230,368 $96 ,383 $147,611 $270,832 $0 $1 ,452 ,816 $8 ,254 $0 $0 $0 $0 $0 $0 $0 $0 $0 $445,083 $6,017,761 $137,376 $172,678 $242 ,944 $172,926 $79,510 $34,888 $207,943 $281,155 $197 ,847 $303,482 $1 ,233 ,832 $6 ,070,889 Construct Aircraft Rescue & Fire Fighting Training Facility (ST OT RF) 12/17/1997 9/26/2000 $1,671,894 $1 ,682 ,200 $3,354 ,094 3-02-0142-024-1998 Construct Aircraft Rescue & Fire Fighting Training Facility (ST OT RF) 3-02-0142-025-1999 Acquire Snow Removal Equipment (ST EQ SN) 3-02-0142-026-2000 Improve Aircraft Rescue & Fire Fighting Bui lding (SA BOEX) 4/29/1998 9/26/2000 so 3/24/1999 6/12/2000 $267,816 8/4/2000 8/27/2004 $671 ,853 $2,200,000 $2 ,200,000 $0 $267,816 $0 $671,853 3-02-0142-027-2001 Improve Aircraft Rescue & Fire Fighting Building (SA BO EX) 4/16/2001 2/24/2005 $2 ,162,263 $1,900,000 $4,062,263 3-02-0142-028-2002 Acquire Snow Removal Equipment (loader, sander/truck 9/19/2002 6/30/2004 $206,923 unit) (ST EQ SN) 3-02-0142-029-2002 Security Enhancements (SE SE SE) 9/19/2002 4/21/2006 $78,125 3-02-0142-030-2002 Extend Runway (Environmental) Phase 1 (ST RW IM) 9/19/2002 8/1/2006 $188,359 Extend Runway Safety Area (Environmental) Phase 1 9/19/2002 8/1/2006 $163,204 (SARWSF) 3-02-0142-031 -2003 Improve Access Road (ADA Access) (OT GT AC ) Acquire Handicap Passenger Lift Device (ST TE MS) 3-02 -0142-032-2004 Update Airport Master Plan Study (PL PL MA) 3 -02 -0142-033-2004 Security Enhancements (ST EQ SE) 3-02 -0142-034-2005 Extend Taxiway Extend Twy P (ST TW IM) Extend Taxiway (Multi-Year, Year 2) (ST TW IM) 3-02-0142-035-2006 Rehabilitate Runway 01U19R Rehabilitate runway lighting (RE RW IM) Rehabilitate Runway 01U19R (Phase 2) (RE RW IM) Rehabilitate Runway 01U19R RSA. provide standard(Phase 2) (RE RW IM) Improve Seaplane Base extend & widen waterlane (phase 2a) (ST SB CO) Improve Seaplane Base extend & widen waterlane (phase 1) (ST SB CO) Wednesday , December 12, 2018 8/21 /2003 5/22/2007 $955,086 8/2112003 5/22/2007 $30,937 8/25/2004 4/14/2008 $350,489 8/30/2004 2/14/2007 $506,666 5/24/2005 4/10/2007 $1 ,677,996 5/24/2005 4/10/2007 $364,079 7/24/2006 8 /28/2009 $348,566 7 /24/2006 8/28/2009 $720,991 7/24/2006 8/28/2009 $0 7/24/2006 8/28/2009 $1 ,200,000 7/24/2006 8/28/2009 $383,763 $0 $241 ,389 $0 $4,617 $206,923 $319 ,514 $188,359 $167,821 $0 $955,086 $0 $30 ,937 $9 $350,498 $0 $506,666 $0 $1,677 ,996 $0 $364,079 $0 $348,566 $4,540 ,286 $5 ,261 ,277 $2 ,500,000 $2 ,500,000 $0 $1,200,000 $0 $383,763 Pag e 5 7 of148 Page 95 of 126 Obligated: Closed: Entitlement Discretionary TOTAL 3-02-0142-037-2007 Rehabilitate Runway 01U19R rehab. runway 1/19 & 4/20/200 7 6/21/2010 $367,916 $2,515.429 $2 ,883,345 provide RSA (phase 3) (RE RW IM) Improve Seaplane Ba se extend & widen waterlane 4/20/2007 6/21/2010 $27,567 $1,000,000 $1 ,027,567 (phase 2b) (ST SB CO) 3-02-0142-038-2008 Construct Sand and Chemical Storage Bu ilding 6/11/2008 8/12/200 9 $432,436 $0 $432,4 36 Constru ct Sand/Urea Bldg (S T BO SN) 3-02-0142-039-2 00 9 Acquire Snow Removal Equipment Acquire Plow Truck 2/2/2009 5/4/2010 $51 ,841 $0 $5 1,841 Attachment (ST EQ SN ) 3-02-0142-040-2009 Acquire Aircraft Rescue & Fire Fighting Vehic le Acquire 2/12/2009 6/13/2011 $0 $8 43,698 $843 ,698 ARFF Truck (SA EQ R F) 3-02-01 42-041 -2009 Rehabilitate Apron Rehab Apro n, Phase 1 (Design and 2/2/2009 3/13/2013 $721 ,837 $103,346 $825, 183 Construction Block 1, FY09 Part A) (RE AP IM) 3-02-0142-042-2009 Rehabilitate Apron Rehab Apr on, Phase 2 (Design and 6/22/2009 3/13/2013 $1,21 1,400 $3.484,418 $4 ,695,818 Construction Block 1, FY09 Phase B) (RE AP IM) 3-02 -01 42-043-2009 Rehabilitate Apron Apron R ehabilitation -2009 ARRA 5/18/2009 12/10/2010 $0 $0 $0 Funded (RE AP IM) 3-02-0142-044-2010 Construct Apron Float Plane Basin Development, Phase 8/13/2010 1n/2 015 $197,049 $0 $197,049 1 (ST AP CO) 3-02-0142-045-2010 Conduct Airport Master Pla n Study Supplemental 7/23/2010 5/12/20 16 $531,608 $0 $531 ,608 Master Plan (PL PL MA) 3-02-01 42-046-2011 Acquire Snow Re moval Equipment Acquire S RE , FY11 3/14/2011 3nt2013 $666,476 $159,625 $826,101 Phase 1: G rader/Loader (ST EQ SN) 3-02 -0142-047-2011 Wildlife Hazard Assessments (PLPLWH) 3/14/2011 1/20/2015 $107 ,286 $0 $107,286 3-02-0 142-048-2011 Acquire Snow Removal Equipment Acquire SRE, FY 11 8/25/2011 3/25/2013 $768 ,843 $0 $768,843 Phase 2: Tow Broom (ST EQ SN) 3-02-0 142-049-20 13 Rehabilit ate Run way 0 1U19R Airfield Remarking Project 9/19/2013 12nt2015 $260,970 $9 ,293 $270 ,263 (RE RWIM) 3-02-0142-050-2013 Remove Obstructions Obstru ction C learing (SA OT OB) 7/11/20 13 1/20/2015 $449,706 $0 $449,706 3-02-0142-052 -2013 Update Airport Master Plan Study Conduct Airport 9/12/2013 8/22/2018 $170,680 $0 $170,680 Master Pl an, Phase 2 -Conduct aer ona utical survey (PLPL MA) 3-02-0142-051-2014 Acquire Snow Removal Equipment Repl ace OSHKOSH 7/18/2014 5/12/2016 $499,749 $0 $499 ,749 Truck (ST EQ SN) 3-02-01 42-053-2016 Rehabilitate Taxiway Rehabilitate Taxiway F, G, H --5/25/2016 8/15/2018 $1 ,406,250 $125,764 $1,532,014 2009 PCI = 25-54 --Inc. lighting (RE TW IM) Rehabilitate Apron Reha b Aircraft Tiedown A pron incl. 5/2 5/2016 8/15/2018 $544,971 $0 $544 ,971 lighting (R E AP IM) 3-02-0142-054-2016 Rehabilitate Taxiway Pa int TW cen terlines and hol d 8/11/2016 9/21/2018 $3 12, 155 $0 $3 12.155 lines, including crack-sealing and signage (in associat ion with RWY redisignation). (17,304 feet Taxiways Marking and Crack-Sealing ; Install/Replace 10 Signs) (RE TW JM) Rehabilitate Runway 01U19R Paint RW centerli nes. 8/11/2016 9/21/2018 $218,888 $0 $218,888 including crack-sealing . (7,135 feet Runway Marking and Crack-Sealing) (RE RW IM) 3-02-01 42-055-2016 Improve Airport Drainage Fl oat pond spillway 9 /12/2016 $355 ,915 $0 $35 5,915 improvement ; and Restore Storm Drain along RSA (ST OTIM) 3-02-0142-056-2017 Rehabilitate Terminal Building Terminal Building 9nt2017 $4 88,444 $0 $488 ,444 Rehabilitation -Phase 1 Design (ST TE IM) 3-02-0142-057-2017 Acquir e Snow Removal Eq uipme nt Acquire snow 7/20/2017 $1 ,020,71 1 $0 $1,020 ,711 removal equ ip ment to replace end or life loader and multipurpose unit. (ST EQ SN) 3-02-0 142-060-2018 Rehabil ita te Terminal Building Termina l Building 9/19/2018 $3,287 ,959 $7,332,036 $10,619,995 Rehab -Roof/Sprinkler , Interi or Passenger Access, and Utilities -Construct (ST TE IM) $34,227,973 $35, 11 3,208 $69 ,341, 181 Wedn esday, December 12, 2018 Pn ge 58 of 148 Page 96 of 126 Officers: President-June Harris Vice President-Virginia Walters Secretary-Sharon Fisher Treasurer-Ron Fullinck I I April 2019 News le tte r Kenai Historical Society P.O. Box 1348 Kenai, Alaska 99611 Board of Directors: Jim Glendenning Henry Knackstedt M arion Nickelson Joe Harris Bill Nelson Frosty Walters Preserving History I have begun the process of interviewing Joanna Hollier in order to record the history of air service to and from Kenai. Joanna was involved in air service from the 1940s and off and on for many years. One never knows where an interview will go and what stories may come about, but part of what will be learned is how the airport grew and changed in the decades since she arrived to be a part of the story. INSIDE THIS ISSUE: The following pages contain photos that I gleaned from the Facebook website "A Work in Progress-Growing up on the Kenai". Many people post photos on this site and it is an endless source of history of Kenai, Soldotna, Sterling, Kasilof, and other communities on the Kenai Peninsula. The group has been organizing for several years and are working towards producing a book that I have long believed would be a wonderful sequel to "Once Upon the Kenai". • PRESERVING HISTORY • MARCH 2019 MEETING MINlITES • ANNOUNCEMENTS ·-··· ••••••• • •• KENAI HISTORICAL SOCIETY NEWSLE'ITER Written by Sharon Fisher If you wo uld like to contribute ideas and information to the newsletter, please contact me at 776 -8254. I welcome and wo uld entertai n any id eas you may have for articles, and would appreciate being contacted if yo u see errors in the information con- tained in the news letter. 209 Page 97 of 126 3 Photos and comments from "A Work in Progress-Growing Up on the Kenai " J oanna Holli e r "The last flight out of Kenai (was on) Dec. 31, 1981. Back to Anchorage I went." Editor's note: she is referring to the date that Wein closed down their Kenai operation. Gle nn Ta uria ine n "Less than $100 from Kenai to Seattle". Editor's note: he is referring to the cost to fly direct f1'0m Kenai to Seattle. Wein Air Alaska on the runway of Kenai Airport . • 211 Page 98 of 126 P.O. Box 1348 Kenai, AK 99611 kenaihistory@gmail.com MARCH 2019 MINUTES *** NOT ABBREVIATED On Sunday, March 3, 2019, the Kenai Historical Society met at the Kenai Visitor's and Convention Cen- ter in Kenai. President June Harris opened the meeting at 1:34 p.m. The minutes of the February 2019 meeting were reviewed by the membership and with two typos to be corrected were approved as written. The treasure report shows the Alaska USA checking balance stands at $13,576.12 and our Credit Union Money Market account balance is $10,321.40. The Edward Jones Account as of February 28, 2019 is $24,592-49 and a loss of $1790.66 and a total value of $24,59249 on an invested amount of $25,541.10 The Kenai Community Foundation balance as of December 31, 2018 stands at $57,164.03 (from $so,ooo.oo invested on February 18, 2016) A motion to approve by Virginia Walters, seconded by Pau- la Bute, this report was approved unanimously. Old Business: The Cabin Fund Balance of $13,078.37., with $5050.00 salary for the 2019 summer cabin guide. The City Manager wants a security system installed and is seeking a grant. This system would put cameras by the North Beach fence, Art Guild, the individual cabins, and Dr. Pete's cabin. The City of Kenai has no record of the transfer of the cabins. Need to look through our records to see if there is any record. New Business: We need to thank Joanna and the staff of the Visitor Center for the use of this meeting space. The next meeting is scheduled for April 7, 2019, and the speaker will be Ray Rawley. Howard Hill moved and Joe Harris seconded the close of today's business meeting. Today's speaker is Terri Wilson with a visual presentation of the 1964 earthquake. Respectfully submitted by Sharon Fisher, Secretary. 5 213 Page 99 of 126 U.S. Deportment of Transportation Federal Aviation Administration May 7, 2019 Dear Airport Sponsor: Office of Airports Safety and Standards 800 Independence Ave., SW Washington, DC 20591 This letter supp lements the FAA's July 19, 20 18 , letter distributed to all airport sponsors, a copy of which is attached for your reference. The FAA understands the airports authorities' safety and security concerns relative to malicious or errant use of unmanned aircraft systems (UAS) especially in light of events at Gatwick. We share this concern. Accordingly, this letter provides additional information useful to airport operators interested in evaluating, demonstrating or otherwise installing UAS detection systems or who already have d etection systems on or near their airports . It also provides information regarding the prohibition on non-federal use of countermeasure or mitigation technologies (generally referred to as counter-DAS or C-UAS) at or around airports. FAA currently does not support the usage of C-UAS systems, which include active interdiction capabilities, by any entities other than the federal departments with explicit statutory authority to use this technology. To assist airport sponsors, I am providing the following informational documents : • Attachment 1: July 19, 2018, Letter From FAA Office of Airports on Guidance on Use of Counter UAS Systems at Airports. • Attachment 2 : The FAA's answers to some frequently asked questions regarding UAS detection and countermeasure/mitigation systems and technologies. • Attachment 3: Technical questions and considerations FAA has u sed to assess the technical readiness level ofUAS detection technologies, as it may also be helpful to airport operators. Entities seeking to evaluate or deploy UAS detectio n systems should be aware the evaluation or deployment of such systems, even systems that are marketed as passive detection systems , may implicate provisions oflaw (such as title 18 of the United States Code) on which the FAA cannot authoritatively opine. Therefore, the FAA cannot confirm the legality of any UAS detection system. An entity considering installing a UAS detection system may wish to seek system- specific and site-specific guidance from its legal counsel and/or the appropriate authorities. Page 100 of 126 Turning to aviation laws, the installation or deployment ofUAS detection systems may implicate requirements under 49 U.S.C . § 44718, as implemented by 14 CFR part 77. Entities proposing construction or alteration of existing structures in the vicinity of an airport must file notice with the FAA. See also , FAA Order 7400.2M, Procedures for Handling Airspace Matters (February 28 , 2019). The required notice allows the FAA to conduct an aeronautical study of the potential for the height of a proposed structure and any electromagnetic broadcast signals that create a hazard to air navigation, including interference with aircraft and navigational aids. Moreover, the installation or deployment ofUAS detection systems by sponsors of commercial service airports may also implicate other regulatory requirements under title 14 of the Code of Federal Regulations. Holders of Airport Operating Certificates issued under 14 CFR Part 139 must protect navigational aids. See 14 CFR § 139.333 . Commercial service airport operators may also need to update the contents of their airport certification manuals to include operating procedures for the use of a UAS detection system. See 14 CFR § 139.203. Finally, federally obligated airports may need to assure the installation or deployment of a UAS detection system is consistent with applicable grant assurance obligations. Grant Assurance 20, Hazard Removal and Mitigation, requires airport sponsors to take appropriate action to assure that such terminal airspace as is required to protect operations to the airport will be adequately cleared and protected by mitigating existing airport hazards and preventing future hazards. Grant Assurance 29, Airport Layout Plan requires an airport sponsor to maintain an up-to-date Airport Layout Plan showing airport facilities and structures. Coordination prior to the installation and/or deployment of UAS detection systems enables the FAA to provide technical assistance regarding regulatory and grant assurance compliance. Further, the operational use of UAS detection systems may provoke response actions that disrupt air traffic operations at your airport or otherwise introduce undesirable safety and efficiency impacts. These potential second-order effects can be effectively addressed through risk-based procedures coordinated with the FAA. In addition to ongoing near-term work to provide airport sponsors with supplemental information regarding the use ofUAS detection systems, the U.S. Government is working to develop the federal response to a persistent UAS disruption at a major airport. Additional information will be provided on this interagency effort in the near future along with opportunities for feedback and collaboration. The FAA also expects to supplement this letter with additional information related to UAS detection system coordination as we refine our processes and procedures for safe UAS detection system use at or around airports. For assistance with questions about UAS detection system demonstrations, evaluations, installation or deployment at airports, please contact Jim Patterson at 609-485-4989. 2 Page 101 of 126 If you have any other questions, please feel free to contact me at 202-267-3053. ohn R. Dermody, P.E. Director Office of Airport Safety and Standards Attachments: Attachment 1, July 19, 2018, Letter From FAA Office of Airports on Guidance on Use of Counter UAS Systems at Airports Attachment 2 , Frequently Asked Questions and Answers Concerning UAS Detection Systems Attachment 3, Unmanned Aircraft Systems Detection -Technical Considerations 3 Page 102 of 126 U.S. Deportment o f Transportation Federal Aviation Administration July 19, 2018 Dear Airport Sponsor: Office of Airports Safety and Standards 800 Independence Ave., SW Washington, DC 2059 J This supplements the FAA's October 26 , 2016, letter distributed to all airport sponsors, a copy of which is enclosed for your reference. This letter provides additional guidance concerning airport interest in evaluating, demonstrating or otherwise deploying unmanned aircraft systems (UAS) detection and countermeasures technology ("counter-VAS") at airports. The FAA is working to fully integrate VAS into the National Airspace System (NAS) in a safe and secure manner. We are mindful that while VAS technology offers tremendous benefits to our national economy and society, the potential for misuse of this technology poses unique security challenges, particularly in airport environments. We recognize some airports may be interested in researching, evaluating, or deploying UAS detection or other counter-VAS capabilities on or near airports; however, a number of significant safety implications and practical issues, as well as legal restrictions, exist. First, Section 2206 of Public Law 114-190, the FAA Extension, Safety, and Security Act of 2016 (July 15, 2016), required the FAA to evaluate detection technology at airports. The FAA completed a Section 2206 pilot program carried out under Cooperative Research and Development Agreements (CRDAs) with UAS detection technology manufacturers. The pilot program focused on evaluating certain technology solutions for detecting VAS on and in the vicinity of airports. The FAA did not evaluate countermeasure capabilities in light of the safety implications, operational impacts, and legal constraints discussed further in this letter. The FAA partnered with the Departments of Homeland Security, Defense, and Justice, as well as other Federal Agencies for evaluating detection and countermeasure capabilities. From February 2016 through December 2017, the FAA and our partner agencies assessed or observed U AS detection technologies operating at several domestic airports in Atlantic City, New York City, Denver, and Dallas-Fort Worth. Through these efforts, we learned the airport environment presents a number of unique challenges to the use of technologies available for civil use. The low technical readiness of the systems, combined with a multitude of other factors , such as geography, interference, location of majority of reported UAS sightings, and cost of deployment and operation, demonstrate this Page 103 of 126 technology is not ready for use in domestic civil airport environments. Jn particular, some of the FAA's significant findings and recommendations include- • Airport environments had numerous sources of potential interference--more than anticipated. High radio spectrum congestion in these environments made detection more difficult and, in some instances, not possible. • Certain aircraft operational states (e.g., hovering) and the degree of flight autonomy also limit detection. A high level of manpower is required to operate equipment and discern false positives such as when a detection system may falsely identify another moving object as a UAS. • UAS detection systems should be developed so they do not adversely impact or interfere with safe airport operations, air traffic control and other air navigation services, or the safe and efficient operation of the NAS. They should also work with existing airport systems, processes, procedures, and technologies without modification of current infrastructure. • The primary factor in determining the feasibility of installing a permanent system at an airport is the number of sensors needed to achieve the desired airspace coverage. Because the coverage volume depends on the unique characteristics and requirements of each airport and the type of system, the number of sensors will vary . The coverage distance for many types of detection technologies also constrains the efficacy of such systems in identifying the locations ofUAS. • Deploying assets in an environment owned by many entities could also make UAS detection systems a challenging solution to acquire and deploy. Overall, costs are prohibitive where higher levels of redundant coverage are required. An additional and critical component of this finding is that technology rapidly becomes obsolete upon installation as UAS technology is rapidly changing. In addition to these findings and recommendations relative to detection system capabilities, the FAA does not endorse or advocate for the use of countermeasures in the airport environment given the likely resulting impact on the safety and efficiency of the NAS. Further, successful mitigation (using, for example, electronic countermeasure capabilities) is reliant on accurate detection. Therefore, the use of countermeasure technology and the potential response of the targeted UAS when engaged could introduce greater hazards to the NAS than the UAS-based hazard it is intended to mitigate. The FAA expects other actions, such as implementation of UAS remote identification requirements, to be more effective and cost-efficient to address the concern related to non-compliant UAS operations on and around airports. Remote identification for UAS would enable our security and law enforcement partners to make a more informed determination about whether a particular UAS presents an immediate security threat at a given location and to locate the operator of the suspect UAS. The FAA has initiated rulemaking and is working to develop the policies necessary to implement remote identification requirements. In addition, the FAA is rolling out the Low Altitude Authorization and 2 Page 104 of 126 Notification Capability (LAANC). LAANC provides small UAS operators a streamlined, efficient, automated solution to enable authorization for airspace access near a irports. By September 2018, the National Beta Test of LAANC will be available at nearly 300 air traffic facilities c o vering approximately 500 airports. Second, in addition to the safety implications and operational impacts, there are a number of legal obstacles to testing, evaluating, or using countermeasures against UAS, as we indicated in our letter of October 26, 2016. Technologies used to detect or mitigate UAS could implicate various provisions of federal criminal law in title 18 U.S.C. (including, but not limited to the Pen/Trap Statute, the Wiretap Act, the Aircraft Sabotage Act, the Computer Fraud and Abuse Act, and the prohibition against interference with certain satellite operations) as well as other laws, such as the prohibition on Aircraft Piracy in title 49 U.S.C. These statutes have constrained most federal entities from employing technologies which can detect, track, identify, and, when necessary, mitigate UAS that pose a security risk. In addition, the testing, evaluation, and use of such technologies causing intentional EMI to radio communications are subject to statutory restrictions implemented and enforced by the Federal Communications Commission (FCC) and the National Telecommunications and Information Administration (NTIA). Very few entities have obtained legislative relief (or may be otherwise exempt under certain circumstances) from these laws and regulations . We are working closely with our federal security partners to ensure the federal law enforcement community has the tools and authorities necessary to respond to safety and security threats posed by errant o r hostile UAS operations and to ensure such actions are c arried out in a manner consistent with safe and efficient operation of theNAS. The evaluation or deployment of UAS detection or countermeasure systems at airports may cause unintentional electromagnetic interference (EMI) and affect the performance of air navigation services equipment on the ground and/or onboard aircraft equipment, as well as necessitate operational. procedures to manage the airspace and spectrum impacts created by use of certain types of technology. Therefore, any entities pursuing such evaluations or deployments should coordinate with. the FAA to assess and mitigate any potential impacts the technology may have on the NAS. This involves an in depth site-and technology-specific risk-based assessment by the FAA. For use in an airport environment, the necessary FAA coordination would include, at a minimwn, coordination with several offices within the FAA's Air Traffic Organization (ATO) (e.g. Technical Operations, Air Traffic Services, System Operations Security, Spectrum Office, Airspace Policy), and other offices such as the Office of Security and Hazardous Materials Safety (ASH) and the Office of Airports (ARP). In addition, the use of certain technologies might, to the extent they involve transmission of radio s ignals (e.g. radar signals used for detection), require FCC or NTIA authorization and interagency coordination, while certain types of col.llltermeasure techno logies may be prohibited based on their capability to cause interference to other authorized radio communications. Finally, as noted in our October 26, 2016, correspondence, it is important for federally obligated airports to understand the FAA has not authorized any UAS detection assessments at any airports other than those, which previously participated in the FAA ' s UAS detection program through a CRDA. That work is now complete, and those systems are no longer at the airports. Further, the FAA is not empowered to authorize the assessment or deployment of certain detection capabilities or any countermeasure capabilities at airports. Federally obligated airports 3 Page 105 of 126 independently allowing evaluations ofUAS detection and countermeasure systems could be in conflict with their grant assurances. Without proper advance FAA coordination to identify and mitigate any potential hazards introduced by the system in the airport environment, the use of such systems could place the safety and efficiency of the NAS at risk, which would not be consistent with the airport sponsor's federal grant obligations. The FAA is committed to working with our federal security partners to ensure UAS are integrated into the NAS in a safe, efficient, and secure manner -which includes enabling an efficient and effective law enforcement response to verified threats in the airport environment. We note that, in the event of a specific threat to safe operations at a particular airport, airport authorities should use their current protocols for alerting the FAA to such concerns; as with all threats to which the FAA is alerted , the FAA will work with our federal, state, and/or local security partners to facilitate an appropriate response . For additional information concerning past UAS detection and countermeasures technology demonstrations, evaluations or deployment at airports, please contact Jim Patterson at 609-485-4989. Further information on the FAA's UAS integration efforts can be found at: https ://www .faa .gov/uas/ If you have any questions, please feel free to contact me at 202-267-3053. Thank You. John R. Dermody, P .E . Director of Airport Safety and Standards Enclosure 4 Page 106 of 126 U.S. Deportment of Transportation Federal Avlatton Administration October 26, 2016 Dear Airport Sponsor: Office of Airports Safety and Standards 800 Independence Ave., &/\/ Washington. DC 20591 This letter provides guidance on Unmanned Aircraft Systems (UAS) Detection and Countermeasures Technology Demonstrations I Evaluations at airports. Background: The United States Congress charged the Federal Aviation Administration (FAA), under Section 2206 of Public Law J 14-190 (July IS, 2016), to "establish a pilot program for airspace hazard mitigation at airports and other critical infrastructure using unmanned aircraft detection systems" in cooperation with the Department of Defense (DOD), Department of Homeland Security (DHS) and other federal agencies. After completion of the pilot program, the FAA "may use unmanned aircraft detection systems to detect and mitigate the unauthorized operation of an unmanned aircraft that poses a risk to aviation safety." In addition, recognizing the FAA 's long-standing authority, Section 2206 requires consultation with the heads of other agencies to "ensure that technologies that are developed, tested, or deployed by [other agencies] to mitigate threats posed by errant or hostile unmanned aircraft system operations do not adversely impact or interfere with safe airport operations, navigation, air traffic services, or the safe and efficient operation of the national airspace system." The FAA UAS Integration Office is working through Cooperative Research and Development Agreements (CRDAs) with UAS detection manufacturers to evaluate the small UAS detection and identification capabilities, using different methodologies and systems on and near airports. The FAA is also partnering with OHS, DOD and other federal agencies interested in this research, as outlined in Section 2206. These activities have taken place at selected airports around the country, and the agencies are planning additional evaluations later this year and next year. Issue: Recently, technology vendors contacted several U.S. airports, proposing to conduct demonstrations and evaluations of their UAS detection and counter measure systems at those airports . In some cases, the airport sponsors did not coordinate these assessments and demonstrations with the FAA in advance. It is important that federally obligated airports understand that the FAA has not authorized any UAS detection or counter measure assessments at any airports other than those participating in the FAA 's UAS detection program through a CRDA, and airports allowing such evaluations could be in violation o f their grant assurances. Page 107 of 126 2 Unauthorized UAS detection and counter measure deployments can create a host of problems, such as electromagnetic and Radio Frequency (RF) interference affecting safety of flight and air traffic management issues. Additionally, current law may impose barriers to the evaluation and deployment of certain unmanned aircraft detection and mitigation technical capabilities by most federal agencies, as well as state and local entities and private individuals. There are a number of federal laws to consider, including those that prohibit destruction or endangerment of aircraft and others that restrict or prohibit electronic surveillance, including the collection, recording or decoding of signaling information and the interception of electronic communications content. Any federally obligated airport that is contacted by a vendor requesting to demonstrate evaluate and deploy any UAS detection or counter measure technology on or near the airport should first contact their local FAA Airport D istrict Office (ADO) before entering into any agreement to conduct UAS detection or counter measure evaluations or demonstrations at their airport. The ADO will then work with the FAA Office of Airport Safety and Standards and the FAA UAS Integration Office to provide a timely response to the airport. Further information on the FAA's UAS detection efforts can be found at: hnps://www.faa.gov/uas/programs partn e rships/uas detection initiative/ Sincerely, Michael J. 'Donnell, A.A.E. Director of Airport Safety and Standards Page 108 of 126 ATTACHMENT 2-FREQUENTLY ASKED QUESTIONS AND ANSWERS CONCERNING UAS DETECTION SYSTEMS 1. What can airports do right now to prepare? Airport authorities have access to resources, including support from local partners, that may be leveraged to share information on, and to plan and coordinate responses to, potential disruptions caused by errant or malicious UAS operations. Carefully working together, the airport authorities and the FAA, as well as other key stakeholders such as TSA and local law enforcement, can better ensure that airport-specific plans (including any introduction of new technologies such as UAS detection systems) are built around a risk-based, balanced approach that minimizes the potential for the undue impacts on the Nation's aviation system-which none of us want-including disruptions to local air traffic operations and ripple effects that could extend nationally or even beyond. Consistency of response between airports will also be important to air carrier operations. Some airport authorities have already started to develop plans and capabilities, leveraging immediately available tools and new technologies being advertised by various vendors, to address the unique risks presented by hazardous drone activity. Working with airport authorities will help the FAA to ensure to that these authorities' current and future efforts, including those already underway, are effectively supported and well aligned with our shared goal of sustaining the safety and efficiency of the National Airspace System (NAS). The FAA is currently compiling a checklist of planning factors to consider and key contacts at its national headquarters, with which airport authorities can work in support of our common goal of safety in the NAS. It is prudent to involve all relevant airport stakeholders in this planning effort, including the FAA (at this early point in these efforts, airport authorities can work with the FAA at the national headquarters level, better enabling the agency to integrate local Air Traffic Control (ATC) input), air carriers and other operators, TSA, and state/local law enforcement with jurisdiction at and around your airport. 2. If a VAS incident happened today, who is responsible for responding? Consistent criteria, which will be shared among the airport authorities, operators, and various agencies (including the FAA), are still being f01mulated for determining what constitutes a "UAS incident" that warrants some form of overt Page 109 of 126 response. Nevertheless, as we recently saw at Newark Liberty International Airport and Dallas/Fort Worth International Airport, as well as in the United Kingdom, drone operations that are perceived to be at least hazardous (if not malicious) are already being encountered and key aviation stakeholders are already taking action. Currently, drone operations that are perceived to be hazardous can provoke a response from multiple stakeholders: pilots may take tactical action to avoid in- flight encounters; ATC may decide to reconfigure terminal operations, reroute traffic, or even temporarily suspend traffic; airport authorities may opt to alter air field operations, including temporarily closing select runways; and local law enforcement, often at the request of airport authorities or ATC, may dispatch assets on the ground to look for and stop a drone operator. While hazardous and malicious drone activity poses a number of unique, novel challenges, which are driving the F AA's efforts to work with airport authorities and other stakeholders to establish focused response plans, the various responses being taken today are already built on well-practiced procedures used by these key actors to respond to other safety and security incidents in the NAS, for example when a person aims a laser at an aircraft. These responses are also often coordinated through pre-existing mechanisms such as communication via airport operations centers, direct links to local A TC, and interagency coordination via the Domestic Events Network (DEN). These existing procedures and protocols remain in place for use to the maximum extent appropriate. Credible reporting and risk assessment are critical prerequisites to any appropriate response. UAS sighting reports may come from a variety of sources, including pilots, airport operators, detection system operators, A TC, airport law enforcement, and even private citizens . The FAA is working with its interagency partners, as well as other key stakeholders in the aviation community, to build mechanisms for assessing the credibility of each report, quickly characterizing risk, and distributing this information through an effective command, control, and communications structure across NAS stakeholders. In the meantime, maximizing coordination with FAA and other key stakeholders can help airport authorities avoid unilateral, unsynchronized responses that could result in safety and efficiency impacts that outweigh the hazard or threat posed by a given drone incident. A collaborative approach promotes responsible and effective decisions for how to respond to errant or malicious UAS operations. Page 110 of 126 3) What happens if local resources cannot resolve the issue? When the full weight of local resources are unable to resolve a credible risk from errant or malicious UAS operations, assistance from federal authorities and supporting resources may be available upon request. There are ongoing discussions within the federal government on how to establish criteria, procedures, and mechanisms for enabling requests for federal assistance. In the meantime, the FAA affirms its commitment to work rapidly with any airport that identifies a credible risk from a UAS . 4) What happens once a request for assistance is made? The details of the process for responding to a request for federal assistance are still under discussion. Again, we hope to commence discussions with airport authorities in the near future and remain committed to work rapidly with any airport that identifies a credible risk from a UAS. 5) How effective are Counter-UAS systems? C-UAS has become short hand for both UAS detection and mitigation systems; technically, however, C-UAS only refers to those systems that are used to disrupt, disable, take control of, or destroy a UAS. It is important to discuss detection and mitigation as separate capabilities given the technical and operational considerations associated with each. The FAA has done an initial evaluation of UAS detection technologies in the airport environment and identified some gaps and challenges as described in our July 19, 2018 letter to airport operators . In addition to concerns regarding the technical performance of UAS detection systems, especially in the complex environment of an airport, airport authorities may wish to carefully consider and work with the FAA to address potentially significant operational pitfalls posed by deploying UAS detection systems, including: determining credibility of detection alerts (e .g., was the detection backed up by visual identification?); differentiating legitimate drone operations from non-compliant activity (e .g., was a detected drone already authorized by the FAA?); characterizing risk (e .g., would a small drone flown by a hobbyist in a remote part of the airport grounds warrant disrupting traffic operations?). The FAA has identified a potential risk to safe airport operations when operational personnel at an airport act upon UAS sighting reports without a comprehensive response strategy that includes coordinated procedures and protocols. Understanding the credibility of reports , including reports of Page 111 of 126 detection from untested or uncertified systems, is critical to making decisions about appropriate operational response . With regard to systems that actively interdict offending drones (in other words, C- UAS systems), it should be underscored that only a select few federal agencies (DOD, DOE, DOJ, and DHS) have been granted legal authority by Congress to test and operationally employ active C-UAS systems. This authority was also only granted with strict requirements for use in protection of specific missions, facilities, and assets and only after close coordination with the FAA, which reflects the potential for these systems to cause unintended, significant impacts on the safety and efficiency of the NAS. In addition, the difficulty in effective response to the persistent disruption of operations at Gatwick, despite the presence of C-UAS systems, underscores the challenges we currently face. The FAA will conduct more detailed C-UAS technology research with our federal agency partners, to include in the airport environment, pursuant to Section 383 of the FAA Reauthorization Act of2018. 6) Who has authority to deploy and use C-UAS equipment? The FAA is unable to support the use of counter measure/mitigation systems by anyone but those with explicit statutory authorization; however, coordination with respect to installation and depl oyment of any detection and mitigation systems put in place by or around an airport assists the FAA in executing its statutorily- mandated duties . Congress granted Counter-UAS authorities to the Departments of Defense and Energy in December 2016. Recently, in the FAA Reauthorization Act of2018, Congress granted similar Counter-DAS authorities to the Departments of Homeland Security and Justice. These grants of C-UAS authority are narrowly tailored for use in protection of specific missions, facilities, and assets and only after close coordination with the FAA, which reflects the potential for these systems to cause unintended, significant impacts on the safety and efficiency of the NAS. FAA is working closely with all four departments to support the imp lementation of those authorities and the dep loyment of C-UAS systems. At this time, these grants of C-UAS authority are narrowly-tailored for protection of specific missions, facilities, and assets and do not provide authority to deploy and use C -UAS as a standing asset to protect airports. However, DHS and DOJ are assessing how their authorities would cover response to a persistent serious UAS disruption of operations at an airport in the United States . Page 112 of 126 7) What else is being done? There are many related efforts that are underway that will make it easier to identify drone operators. The potentially unsafe, unauthorized, and/or malicious use of drones is exactly why the FAA is focused on moving expeditiously with remote identification requirements for UAS in the National Airspace System. 8) What else might an airport authority wish to consider with respect to UAS detection systems? The FAA is assessing the safety and operational in1pacts of the use of detection systems at airports. Entities seeking to evaluate or deploy UAS detection systems may take note that the evaluation or deployment of such systems, even systems that are marketed as passive detection systems, may implicate provisions of law (such as title 18 of the United States Code) on which the FAA cannot authoritatively opine. Therefore, the FAA cannot confirm the legality of any UAS detection system. An entity considering installing a UAS detection system may wish to seek system-specific and site-specific guidance from its legal counsel and/or the appropriate authorities. Licensing through FCC approval and in coordination with F AA's Spectrum Office are required for each site. A vendor might claim that its radar has national spectrum licensing approval, but such approvals are site-specific. A vendor might claim that its radio frequency detection system is passive; however, the system might, in fact, have embedded emitting capabilities that are deactivated by reversible software programming. Some systems might emit for software upgrades or site installation, but be "passive" when operational. For these reasons, we cannot categorically assume any detection system does not impact the NAS. Our July 19, 2018 letter to airport operators discusses coordination with the FAA. To support coordination, we are working to compile a checklist for airport authorities considering the acquisition or use of UAS detection systems at their airports. Many detection systems may need to be located at high vantage points, due to their direct line-of-sight requirements, and detector arrays may block critical sight lines. Airports must follow all FAA requirements for building structures on an airport. In short, the onus is on the Airport Authority to be cognizant of its federal obligations and local requirements for deployment, zoning, and/or permit Page 113 of 126 approvals that could impact airport safety--even if located outside the airport property. Coordination with the FAA helps to promote the best safety outcome when an airport, a third party vendor, or other government or private sector entity locates detection or mitigation systems in and around an airport. The FAA letter dated May 7, 2019, identifies national headquarters points of contact. Page 114 of 126 Unmanned Aircraft System Detection -Technical Considerat ions DISCLAIMER: The follo wing are technical consideratio ns genera ll y known to the C-UAS industry and re levant government stakeho lders. The y are provided as a courtesy and are not requirements or officially-accepted processes. Counter-Unmanned Aircraft System (C-UAS) technologies are broken into two primary categories-detection and mitigation . Such technologies range from Commercial off the Shelf (COTS) systems to made-to-order systems developed by system integrators. The systems and sensors share similar characteristics and methods for detecting Unmanned Aircraft Systems (UAS), colloquially known as "drones ." Some detection systems are based on existing technologies, re-purposed for C-UAS efforts. For ex ample, radar technology ha s been adapted for UAS detection purposes from uses such as anti-missile and anti-mortar detection applications for the military to weather, low-level wind shear, and avian wildlife monitoring for civilian use . Some UAS detection products have a very low technical maturity and may not be ready for steady-state use in domestic civil airport environments. There are no nationally-recognized standards for detection or classifying items of inte rest at this time; detection systems do not have the ability to determine intent or a level of threat posed by the UAS . The following selected technical quest ions and supporting materials may assist organizations that are reviewing the capabilities and limitations of UAS detection system s. They suggest some fundamental questions and concepts that an organization might choose to consider when e xamining and deploying UAS detection systems. Comparison of prod ucts and services from competing manufacturers and vendors might also be helpful. The challenges of UAS detection are complex and cannot be fully addressed by these questions alone. The questions included here are not exhaustive or all-inclusive . UAS Mitigation UAS mitigation or countermeasures include the capability to disrupt, disable, destroy, take control of, and/or provide alternate flight in structions to a UAS. Some UAS detection systems may have countermeasure capabilities built-in, which can be disab l ed , while others may offer them as an optional modular capability. l l Page As of 03-26-20199:51AM Page 115 of 126 Unmanned Aircraft System Detection -Technical Considerations Does the UAS mitigation system have any capability to conduct countermeasure activities? If so, how is it disabled? Which category of countermeasures is the system capable of? Kinetic Non-Kinetic Hybrid Kinetic (Non-Kinetic with Kinetic Effect) Which technologies or methods of countermeasures does the system employ? Kinetic Non-Kinetic Hybrid Kinetic Projectile RF C2 Jamming Microwave Net I Open Containment RF C2 Intercept and Control Acoustic Closed I Sealed Containment RF C2 Intercept and Control Laser Predatory Animal GPS Jamming NNEMP UAS Detection: General A key factor in determining the feasibility of installing a detection system at or around an airport is the number of sensors needed to achieve the desired airspace coverage . Because the coverage volume depends on the unique characteristics and requirements of each airport and the type of system, the number of sensors will vary. The coverage distance for many types of detection technologies also constrains the efficacy of such systems in determining the locations of the unmanned aircraft (UA) and the ground control station (GCS). An additional critical factor is that technology can quickly become obsolete, as UAS technology is rapidly changing. Further, areas of coverage may need to span wider angles since the GCS and pilot in command (PIC) may not be collocated with or near the drone. Primary detection sources are those sensors that have a greater level of system autonomy, providing alerts to be generated upon a detection, prompting further investigation by the detection system operator. Radar and Radio Frequency (RF) are the most common; however, Electro Optic (EO) and acoustic sensors do not typically have the capability to be a pri mary detection source. EO and acoustic might typically be considered validation tools or secondary sensors to the primary systems (radar and RF). 21 Page As of 03-26-20199:51AM Page 116 of 126 Unmanned Aircraft System Detection -Technical Considerations What are the coverage areas, critical site locations, and volumes of airspace that must be monitored? What are the technologies or sensors used as a primary means for detection? Radar RF EO/IR Acoustic Other What are the technologies or sensors used as secondary or supportive means for validating activity detected by primary sensors? Radar RF EO/IR Acoustic Other Has an RF analysis been conducted for this site? Who conducted the analysis? Were the RF emissions simulated or actual? Certain aircraft operational states (e .g ., hovering) and the degree of flight autonomy may limit detection. What types of UA can the system detect? Multi rotor Fixed-wing Hybrid Inflated Envelope Glider Other How long does it take the system to detect a UA that is within range? Dedicated manpower and specialized training is likely needed to operate equipment and help to discern false positives, such as when a detection system may incorrectly identify another moving object as a UAS. 3I Page As of 03-26-20199 :51AM Page 117 of 126 41 Page Unmanned Aircraft System Detection -Technical Considerations How does the system make a determination between the sensing of a potential item of interest, and classifying it as a UAS? Does the system detect semi-autonomous UAS (i.e. UAS that use pre-programmed navigation, but are capable of RF transmission)? If so, how? Does the system detect fully autonomous UAS (i.e. UAS without RF capabilities that can navigate without in-flight commands)? If so, how? Can the system detect UAS powered-on, but prior to flight? Can the system detect and geolocate the ground control station {GCS}? If so, how does it accomplish this? Does the system have only line of sight {LOS} capability, i .e. will trees and buildings inhibit the system's capabilities? Which personnel should operate the system? What kind of training is necessary to use the system? What training is included? What support is included? Does support include software updates to address evolving UAS technology? Is the system a fixed installation or is it readily deployable? Is the system easily installed by personnel who are not affiliated with the system manufacturer or vendor? Is the system readily portable to a civil environment? What ore the system specifications or requirements for the following at each point of installation: Specifications I Requirements Size (incl. antenna/sensor heights) Physical Storage Deployment/Set-up Communications Power Input Electrical Grounding Calibration Physical Storage As of 03-26-20199:51AM Page 118 of 126 Unmanned Aircraft System Detection -Technical Considerations Airport environments have numerous sources of potential interference -often more than anticipated which can impact performance of systems. Unintentional emitters of electromagnetic interference (e .g., power lines, breakers, bunched power cab les, LED and florescent fixtures), as well as intentional emissions (e .g., digital and analog antennae, cellular services, 2-way radios, telemetry systems) could affect the accuracy of RF-based UAS detection sensors . Frequently, multipath interference occurs as a result of unintentional reflections from large objects. This type of interference can be caused by large passenger planes inside a sensor are a, skewing the location accuracy of the detection system . Similarly, equipment such as heating ventilation and air-conditioning units and electric motors co-located with a sensor can cause interference with the sensor's directional orientation, in addition to background electromagnetic interference and multipath reflections. Interference can also diminish the detection range of some systems . Natural impediments such as t r ees, terrain, moisture and wind also impact sensors . RF Detection Manufacturers or vendors may identify RF systems as not emitting (often using the term "passive") although the product could include and regularly employ such emitting capabilities. In a steady state, a system may not appear to emit. This same system, however, may have embedded emitting capabilities that are deactivated through software that could be reversible. Further, some systems may emit during software upgrades, site installation, scheduled intervals or ad-hoc calibration. For these reasons, organizations would not be able to categorically assume any detection sys t em does emit RF energy, which may impact the National Airspace System . SI Page As of 03-26-20199:51AM Page 119 of 126 Unmanned Aircraft System Detection -Technical Considerations What is the coverage area per sensor? Azimuth? Altitude? Distance? How many of each sensor type is required for the required area for this installation? What are the filtering capabilities the system uses in order to reduce background RF and reduce multipath interference? Does the detection system depend on a library of known RF signatures? If yes, how often is the library updated? What is the process to update the library? Is there an ongoing cost for library updates? Can the system detect and geolocate the UAS pilot-in-command (using RF}? Is the system able to detect a UAS operator who is intentionally hopping or changing frequencies at a random and/or rapid rate in order to evade detection? Does the system intercept the live video streaming of the UA? Does the system differentiate and track multiple simultaneous targets? If so what is the upper limit on the number of targets it can track? What are the FCC licensing requirements for this system? Do you have proper approval from the FCC, if n eeded? For this installation, have there been evaluations of RF frequency propagation during day and night to account for any potential electromagnetic interference high levels of DC power or other power sources used for airport lighting, etc. that might not be prevalent during daylight operation? Radar Detection Radar-based UAS detection systems can be used as a primary means of detection; however, they are typically challenged by a lack of automation and are highly dependent on a trained operator to become aware of new or changing detections, plot and track geolocations, and to choose the appropriate system settings. Radar-based detection systems also face difficulties when presented with UAS that only move vertically or hover in place. Some radar systems can trigger a secondary electro-optical system to "slew to cue," which automatically points the optics in the direction of the detected target of interest. This feature can be challenged at times if the system inadvertently determines a larger, manned aircraft in the distance as a new target. Radar sensors are spec i ally tuned for identifying small targets at short, medium or long ranges; therefore, multiple radars with different detection ranges may be necessary to cover the areas of detection . 6I Page As of 03 -2 6-20199:51AM Page 120 of 126 Unmanned Aircraft System Detection -Technical Considerations Radar systems cannot have national spectrum licensing approval, as approvals are site spec ific . Licensing through FCC approval and in coordination with FAA's Spectrum Office are required for each site. What types of UA can the system detect? Multi rotor Fixed-wing Hybrid Inflated Envelope How long does it take the system to detect a UA that is within range? What is the transmit power of the radar? Glider Other What are the frequency band{s) of the radar? {Note: L-Band has been reallocated by the FCC} What is the scanning type of the radar? What are the radar cross section {RCS} the system can detect and classify at specific distances? What is the coverage area per sensor? Azimuth? Altitude? Distance? How do different types of weather affect this radar? How many of each sensor type is required for the required area? What are the filtering capabilities the system uses in order to reduce background radar clutter? Does the detection system depend on a library of known radar signatures? If yes, how often is the library updated? What is the process to update the library? Is there an ongoing cost for library updates? Electro-Optical Detection Electro-Optical (EO) and EO/IR sensor suites do not typically serve as a primary detection sensor for detecting and tracking a UAS. They can be important secondary visual validation tools for targets detected by primary sensors. Enhanced EO systems can provide valuable capabilities, including automatic image tracking of potential targets detected by primary sensors ; however, they can be challenged by being redirected to false targets, such as birds or manned aircraft cross ing the field of view. EO sensors do not, absent human assistance, have the ability to begin tracking an object detected by a pri mary sensor. ?I Page As of 03-26-20199:51AM Page 121 of 126 Unmanned Aircraft System Detection -Technical Considerations EO specifications are similar to any modern digital camera; the qual ity of the lens, field of view, varifocal capabilities, pixel size, and pixel density all have a role in the overall image quality and usefulness for validating items of interest. Some metrics, such as pixel density, once exclusively used to determine image quality are no longer accu r ate -"more megapixels" does not mean a better picture. Performance in low-light conditions, lens quality and the sensitivity of electronic circuits are better indicators of image quality. When used fo r v isual verification of suspicious activity, such as UAS detected by primary sensors, the image quality is critically important. The video surveillance industry uses a commonly accepted metric, Pixels Per Foot (PPF), as a more predictable level of image quality. Though it is not perfect, PPF is a single number conveying important information about the projected quality that a camera can provide . PPF is based on the size of the area that the image is capturing and depends on the distance from the camera, the focal length of the camera lens and the resolution of the camera . 8 I P age What are the pan, tilt, and zoom (PTZ) capabilities of the EO/IR device(s)? How are any PTZ capabilities automated in coordination with primary detection sensors? What is the field of view of the EO/IR device? What types and levels of image stabilization, if any, are used for EO/IR device(s) What is the number of Pixels Per Foot (PPF) provided by the EO device ? How are any Artificial Intelligence (Al) or Machine Learning (ML} capabilities employed to assist in detection or classification of UAS? Is the IR device cooled? What is the life expectancy of the cooled IR device? What wavelengths does the IR device detect? What are the network bandwidth requirements of each EO/IR node ? What are the processing requirements of each EO/IR node? What compression algorithms are used for EO ? For IR? As of 03-26-20199:51AM Page 122 of 126 Unmanned Aircraft System Detection -Technical Considerations Data and Information Data and information management plays a crucial role in UAS detection systems. In addition to common "best practices" for information technology management and data security, some other factors might be considered. Clearly demonstrated tools and features such as statistical dashboards, historical information, and data portability may have greater value than amorphous buzzwords like artificial intelligence (Al) and machine learning (ML). 91 Page How will the system distinguish or deconflict between authorized and unauthorized UAS? How does the system handle duplicate targets from multiple or overlapping sensors? How is suspicious activity data verified or validated? How is suspicious activity data generated, reported, and distributed? How does the system store and retrieve historical information or provide for statistical analysis and data mining? How will the federal, state, local and/or tribal retention and disposition requirements for the data that is captured, derived, transmitted, or stored be met? Does the system employ a digital chain of custody procedure for producing evidence in a court of law? What is the update rate of the sensors to the system and the system to the interface? What are the alert and alarm features of the interface? Does the manufacturer, vendor, or system integrator have access to data that is captured, derived, transmitted, or stored? Does the manufacturer, vendor, or system integrator have a fix (geolocation) of the detection system? Does the manufacturer, vendor, or system integrator have the ability initiate software updates (with or without consent)? Does the system, components, or software have the capability to implement or maintain a whitelist of UAS without the knowledge of the operator or governing organization? As of 03-26-20199:51AM Page 123 of 126 Unmanned Aircraft System Detection -Technical Considerations Integrated Solutions Some systems might be referred to as an integrated solution, which employs multiple types of sensor technologies and provides their data into a single user interface. Other systems may provide capabilities to incorporate an organization's existing hardware and software elements. These capabilities are still faced with the technical challenges of applying UAS detection systems in the absence of automation aids to help an operator better differentiate legitimate UAS activity from UAS detections that warrant further investigation. 10 I P age If multiple systems, does the system provide a fused graphical interface to the user with an authoritative source? How might the system be integrated along with existing security operations centers and infrastructure, such as security cameras, data connectivity, and display systems? How can external information -such as ground personnel reports or photos -be integrated with the system information? As of 03-26-20199:51AM Page 124 of 126 April Enplanement Report Grant 1,739 27.00% IVlunicipal Airport Month RAVN GRANT Total 2018 ALASKA AVIATION 2019 Januarv 5,248 1,537 6,785 6,148 Februarv 4 ,573 1,384 5,957 5 ,651 March 4 ,941 1,867 6 ,808 6 ,999 April 4 ,702 1,739 6,44 1 6,383 May 7 ,501 June 8 ,048 July 10,568 Auaust 11 ,485 Seotember 7,990 October 7,433 November 6,905 December 7,016 Totals 19464 6,527 25,991 92,127 Terminal -Vehicle Parking Revenues A ril FY18 $18,412 FY18 Total $232,372 FY19 $19,444 FY19 YTD $209,347 ~ii Vehicle Parking Revenues 27500 25000 22500 I 20000 1 17500 ~ . 15000 i 12500 10000 .'I-...... - - - -I-I-- • FY18 • FY19 HI l i-1111-11 -t-- -1-1-1-1-1-- 7500 5000 - - - I- 2500 ..... 0 April 2019 6,441 RAVN 4,702 73.00% Change from 2018 637 306 -191 58 810 Page 125 of 126 l\lluniclpal Airport FLOAT PLANE BASIN ACTIVITY 2015-2019 -----------------------------------------· OPERATIONS -----------------------------------------· Month 2019 2018 2017 2016 2015 MAY 64 39 23 44 57 JUNE 139 106 85 124 JULY 261 144 151 164 AUGUST 164 103 191 148 SEPTEMBER 156 107 115 71 OC TOBER 47 6 CLSD 17 NOVEMBER CLSD CLSD CLSD CLSD Total 64 806 489 586 581 0 n~r!P~rt.:_d ____ • --------------------------------FUEL SALES -----------------------------------------· Month MAY JUNE JULY AUGUST SEPTEMBER OCTOBER Total Slips Rented Priva te Commerical 2019 $1 ,685 $1,685 2018 $134 $3,203 $3 ,635 $5 ,890 $5,590 $1 ,060 $19,512 4 0 2017 2016 2015 $784 $1 , 175 $8 $3,423 $1,656 $0 $3,420 $3,036 $1,873 $4,325 $3,647 $1 ,710 $4,901 $3,830 $1 ,380 $583 CLSD $553 $17,436 $13,344 $5,524 Rev 5/2019 Page 126 of 126 JUNE 13, 2019 AIRPORT COMMISSION MEETING ADDITIONAL MATERIAL REQUESTED REVISIONS TO THE AGENDA/PACKET: ACTION ITEM REQUESTED BY Add Item 6.f. Special Use Permit to James Doyle d/b/a City Manager Weaver Brothers • Memo • Special Use Permit • Map MEMORANDUM TO: Mayor Brian Gabriel and Kenai City Council THROUGH: Paul Ostrander, City Manager FROM: Elizabeth Appleby, City Planner DATE: June 11, 2019 SUBJECT: Action Approval for Weaver Brothers Alaska, Inc. – Special Use Permit for Truck and Vehicle Storage ____________________________________________________________________________ Weaver Brothers, Inc. has requested to use three adjacent City-owned parcels along Coral Street for storage of trucks and semi-trailers for one-year from June 20, 2019 to June 20, 2020. This would be similar to the use of two parcels under a five-year lease from the City by Weaver Brothers for truck storage and would allow for a temporary expansion of their business. Exhibit A shows the location of the three adjacent parcels requested for a special use permit and the two parcels currently under lease with the City. The three adjacent parcels total 67,083 square feet of City property. The Coral Street Airport Zone of the City was appraised at a rate of $0.50 per square foot. The permit fee would be $2,683.32 for all three lots based on $0.50 per square foot, 67,083 total square feet to be used, and an eight percent rate. If City Council approves, City Administration would execute the special use permit attached to this memorandum. Thank you for your consideration. Page 2 of 10 Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 1 of 7 SPECIAL USE PERMIT The CITY OF KENAI (City), for the consideration, and pursuant to the conditions set out below, hereby grants to JAMES H. DOYLE, INDIVIDUALLY, D/B/A WEAVER BROTHERS, INC. (PERMITTEE), whose address is P.O. Box 582, Kenai Alaska 99611, the non-exclusive right to use 67,083 square feet of area as described below: T5N R11W SEC 5 SEWARD MERIDIAN KN 0860076 GUSTY SUB NO 4 LOT 1 BLK 3; and, T5N R11W SEC 5 SEWARD MERIDIAN KN 0860076 GUSTY SUB NO 4 LOT 2 BLK 3; and, T5N R11W SEC 5 SEWARD MERIDIAN KN 0860076 GUSTY SUB NO 4 LOT 3 BLK 3; and as further shown in the attached Exhibit A. 1. TERM. This special use permit shall be for 12 months from June 20, 2019 to June 20, 2020. 2. CANCELLATION. Pursuant to requirements of the Federal Aviation Administration, the City reserves the right to cancel this special use permit on 90-days’ notice, either delivered in person to the Permittee or by mail. Any or all personal property shall be removed at Permittee’s expense upon cancellation or termination of this agreement. 3. PERMIT FEES. The Permittee shall be charged a permit fee of $2,683.32 plus applicable sales tax. The Permittee shall not use the parcels until the paying the City the permit fee. Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Hall, 210 Fidalgo Avenue, Kenai, Alaska 99611. In addition to the permit fee specified above, the Permittee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: A. Sales tax nor enforced, or levied in the future, computed upon the permit fee payable in monthly installments whether said fee is paid on a monthly or yearly basis; B. All necessary licenses and permits; all lawful taxes and assessments which, during the term hereof may become a lien upon or which may be levied by the State, Borough, City, or by any other tax levying body, upon any taxable possessory right which Permittee may have in or to the Premises by reason of its use or occupancy or by reason of the terms of this Permit, provided however, that nothing herein contained shall prevent Permittee from contesting any increase in such tax or assessment through procedures provided by law. Page 3 of 10 Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 2 of 7 C. Interest at the rate of eight percent (8%) per annum and penalties of ten percent (10%) of any amount of money owed under this Special Use Permit which are not paid on or before the due date. D. Costs and expenses incident to this Special Use Permit, including but not limited to recording costs. 4. USE. The use by the Permittee of the Premises is limited to the purpose of Truck and Trailer Storage. This use is subject to City, Borough, and State laws and regulations and the reasonable administrative actions of the City for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Use of the Premises is subject to the following conditions: A. Permittee shall use the Premises only for truck and trailer storage. B. Trucks and trailers must be stored in a manner that will not limit sight lines or create other unsafe driving conditions on adjacent right-of -ways. C. The premises shall be returned to its current condition prior to the end of the term of this Special Use Permit. This shall include the removal of any trash or debris. D. Trucks and trailers must be stored in a manner that will not impact any City snow clearing or moving activities. E. Trucks and trailers shall be stored such that there will not be oil or other hazardous fluids leaking onto the premises. F. The premises shall not be used to store junked vehicles or other salvaged vehicle or trailer parts. 5. INSURANCE. Permittee shall secure and keep in force adequate insurance, as stated below, to protect City and Permittee. Where specific limits are stated, the limits are the minimum acceptable limits. If Permittee’s insurance policy contains higher limits, the City is entitled to coverage to the extent of the higher limits. A. Garage Liability or Commercial General Liability Insurance, including Premises, all operations, property damage, personal injury and death, broad-form contractual, with a per-occurrence limit of not less than $1,000,000 combined single limit. The policy must name the City as an additional insured. B. Worker’s Compensation Insurance with coverage for all employees engaged in work under this Permit or at the Premises as required by AS 23.30.045. Permittee is further responsible to provide Worker’s Compensation Insurance for any subcontractor who directly or indirectly provides services to Permittee under this Permit. C. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non-owned Page 4 of 10 Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 3 of 7 motor vehicles the Permittee uses for snow moving and storage activities to, from, or on the Premises. The policy must name the City as an additional insured. D. All insurance required must meet the following additional requirements: i. All policies will be by a company/corporation currently rated “A-” or better by A.M. Best. ii. Permittee shall submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. iii. Permittee shall request a waiver of subrogation against City from Permittee’s insurer and the waiver of subrogation, where possible, shall be provided at no cost to City. iv. Provide the City with notification at least 30 days before any termination, cancellation, or material change in insurance coverage of any policy required hereunder. v. Evidence of insurance coverage must be submitted to City by January 17, 2019. The effective date of the insurance shall be no later than January 17, 2019. vi. This insurance shall be primary and exclusive of any other insurance carried by the City of Kenai. This insurance shall be without limitation on the time within which the resulting loss, damage, or injury is actually sustained. 6. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. The Permittee shall fully indemnify, hold harmless, and defend the City of Kenai, its officers, agents, employees, and volunteers at its own expense from and against any and all actions, damages, costs, liability, claims, losses, judgments, penalties, including reasonable Attorney’s fees of or for liability for any wrongful or negligent acts, errors, or omissions of the Permittee, its officers, agents or employees, or any subcontractor under this Permit. The Permittee shall not be required to defend or indemnify the City for any claims of or liability for any wrongful or negligent act, error, or omission solely due to the independent negligence of the City. If there is a claim of or liability for the joint negligence of the Permittee and the independent negligence of the City, the indemnification and hold harmless obligation shall be apportioned on a comparative fault basis. Apportionment shall be established upon final determination of the percentage of fault. If any such determination is by settlement, the percentage of fault attributed to each party for purposes of this indemnification provision shall only be binding upon the parties included in the settlement agreement. “Permittee” and “City” as used in this article include the employees, agents, officers, directors, and other contractors who are directly responsible, respectively, for each party. The term “independent negligence of the City” is negligence other than in the City’s selection, administration, monitoring, or controlling of the Permittee. Page 5 of 10 Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 4 of 7 7. PERMITTEE’S OBLIGATION TO PREVENT AND REMOVE LIENS. Permittee will not permit any liens, including mechanic’s, laborer’s, construction, supplier’s, mining, or any other liens obtainable or available under existing law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity or claimed entity. The Permittee shall have the right to provide a bond as contemplated by State of Alaska law and contest the validity or amount of any such lien or claimed lien. Upon the final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee’s own expense. 8. PERSONALTY. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit. Personal property placed or used upon the Premises and not removed upon termination of this Permit will be removed and/or impounded by the City. Property removed or impounded by the City may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus a storage fee of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or its customers. 9. FORBEARANCE. Failure to insist upon a strict compliance with the terms, conditions, and/or any requirement herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 10. TERMINATION, DEFAULT. This Permit may be terminated by either party hereto by giving 30 days advance written notice to the other party. The City may terminate the Permit immediately, or upon notice shorter than 30 days, to protect public health and safety. The City may also terminate this Permit immediately, or upon notice shorter than 30 days, due to a failure of Permittee to comply with conditions and terms of this Permit, which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period to correct the violation or breach. 11. NO DISCRIMINATION. Permittee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 12. ASSIGNMENT. Permittee may not assign, by grant or implication, the whole any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this permit which an assignee fails to perform. 13. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on the Premises and its exercise of the privileges granted in this Permit. Page 6 of 10 Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 5 of 7 14. NO JOINT VENTURE. The City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises. 15. SURVIVAL. The obligations and duties of Permittee under paragraphs 5 and 6 of this Permit shall survive the cancellation, termination, or expiration of this Permit. 16. AUTHORITY. By signing this Permit, Permittee represents that is has read this agreements and consents to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the business to bind the business hereunder. WEAVER BROTHERS, INC. CITY OF KENAI By:____________________________ By:_______________________________ James H. Doyle Date: Paul Ostrander Date: President City Manager By:____________________________ James H. Doyle Date: Individually Page 7 of 10 Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 6 of 7 ACKNOWLEDGMENTS 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, Alaska, an Alaska home rule municipality, on behalf of the City. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____day of ________, 2019, the foregoing instrument was acknowledged before me by James H. Doyle, President of Weaver Brothers, Inc., an Alaska limited liability company, on behalf of the company. Notary Public for Alaska My Commission Expires: 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 James H. Doyle. Notary Public for Alaska My Commission Expires: Page 8 of 10 Special Use Permit – Weaver Brothers, Inc. – 2019 Truck and Trailer Storage Page 7 of 7 ATTEST: Jamie Heinz, CMC, City Clerk SEAL: APPROVED AS TO FORM: Scott M. Bloom, City Attorney Page 9 of 10 CORAL STC O H O E A V E .90 ' Date: 6/11/2019 The information depicted hereon is for graphic representationonly of the best available sources. The City of Kenai assumes no responsibility for errors on this map. 1 inch equals 104 feet Weaver Brothers, Inc.Special Use Permit MapExhibit A 04327032 04327031 04327030 04327021 04327035 Legend Existing Lease Requested for Special Use Permit Page 10 of 10