HomeMy WebLinkAbout2020-05-14 Airport Commission Packet
KENAI AIRPORT COMMISSION
REGULAR MEETING
MAY 14, 2020 – 6:00 P.M.
KENAI CITY HALL
210 FIDALGO AVE., KENAI, AK 99611
*Telephonic/Virtual Information Below*
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 12, 2020.....................................................................................................Pg. 3
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
a. Discussion – Float Plane Basin Fuel Pumps (Airport Manager)
b. Discussion/Recommendation – Special Use Permit to Everts Air Fuel, Inc. ......Pg. 7
c. Discussion/Recommendation – Special Use Permit to Crowley Fuels, LLC ......Pg. 17
d. Discussion/Recommendation – Special Use Permit to United Parcel Service ...Pg. 27
e. Discussion/Recommendation – Special Use Permit to Empire Airlines .............Pg. 38
f. Discussion/Recommendation – Special Use Permit to Weaver Brothers, Inc ....Pg. 47
g. Discussion/Recommendation – Second Amendment to Restaurant Concession
Agreement ............................................................................................................Pg. 50
h. Discussion/Recommendation – Resolution 2020-31 Conversion of Lease with
State of Alaska, Division of Forestry .....................................................................Pg. 55
i. Discussion/Recommendation – FY2021-2025 Capital Improvement Plan .........Pg. 89
7. REPORTS
a. Airport Manager
b. City Council Liaison ...................................................................................................Pg. 100
8. NEXT MEETING ATTENDANCE NOTIFICATION – June 11, 2020
9. COMMISSIONER COMMENTS AND QUESTIONS
10. ADDITIONAL PUBLIC COMMENT
11. INFORMATION ITEMS
a. April 2020 Mid-Month Report ......................................................................................Pg. 109
b. Ordinance No. 3123-2020 CARES Act Grant .............................................................Pg. 111
c. Senator Micciche letter – Willie F. Card Nomination for Kenai Tower .........................Pg. 114
d. U.S. DOT Letter of April 30, 2020 – DBE and ACDBE Program Monitoring During COVID-19
Public Health Emergency Guidance ...........................................................................Pg. 115
e. April 2020 Enplanement Report ..................................................................................Pg. 117
12. ADJOURNMENT
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KENAI AIRPORT COMMISSION
REGULAR MEETING
MARCH 12, 2020 – 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:
G. Feeken, J. Bielefeld, P. Minelga, K. Dodge, J. Zirul, D.
Pitts, D. Leichliter
Staff/Council Liaison Present: Airport Manager M. Bondurant, Airport Assistant E.
Brincefield, Council Liaison T. Navarre
A quorum was present.
c. Agenda Approval
An addition to the packet was noted to include a memo from the Airport Manager for Item 6c.
MOTION:
Commissioner Minelga MOVED to approve the agenda with the noted revision and Commissioner
Leichliter 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 9, 2020
MOTION:
Commissioner Minelga MOVED to approve the meeting summary of January 9, 2020 and
Commissioner Zirul SECONDED the motion. There were no objections; SO ORDERED.
5. UNFINISHED BUSINESS – None.
Page 3 of 117
____________________________________________________________________________________
Airport Commission Meeting Page 2 of 3
March 12, 2020
6. NEW BUSINESS
a. Discussion/Recommendation – On-Airport Fueling
The Commission Chair addressed that not all types of cards were accepted at the float plane
basin and she would like that changed to accept all card types. The Airport Manger clarified that
interchange rule was significantly higher for fleet cards, and information that was provided to
Administration would be presented at the next Commission meeting.
The Commission further discussed options forward.
b. Discussion/Recommendation – Special Use Permit for State of Alaska Department
of Natural Resources/Division of Forestry
There was no objection to recommending Council approve the Special Use Permit to the State to
Alaska Department of Natural Resources/Division of Forestry.
c. Discussion/Recommendation – Land Lease Application by Schillings Rentals, LLC
The Airport Manager referenced the memos and application for the land lease of Lot 5A, Block 1,
FBO Subdivision to Schilling Rentals, LLC.
MOTION:
Commissioner Zirul MOVED to recommend Council approve the Land Lease Application by
Schillings Rentals, LLC and Commissioner Minelga SECONDED the motion. There were no
objections; SO ORDERED.
7. REPORTS
a. Airport Manager – Bondurant reported on the following:
• Provided an update of the Kenai Municipal Airport project and the Fire Training
Facility Project;
• Two new Aircraft Rescue and Firefighting (ARFF) trucks were being ordered
for the Kenai Municipal Airport;
• The FY2021 budget was submitted to City Administration;
• She was working on the management agreement for the Fire Training Facility;
• The new Airline Operating Agreement would be worked on soon;
• The new terminal flight displays were now available online at the Airport
Facebook page;
• Annual TSA Security Program inspection scheduled for March 16-17;
• Annual Wildlife Hazard Training planned for April 7;
• The 20th Annual Air Fair scheduled for June 13 might be canceled, depending
on the status of the Coronavirus; and
• City of Kenai Department Heads met today to discuss possible impacts of the
virus.
b. City Council Liaison – Navarre reported on the March 4 City Council meeting
actions.
8. NEXT MEETING ATTENDANCE NOTIFICATION – April 9, 2020
Page 4 of 117
____________________________________________________________________________________
Airport Commission Meeting Page 3 of 3
March 12, 2020
9. COMMISSIONER COMMENTS AND QUESTIONS
Commissioners welcomed new Commission member, Derek Leichliter.
Commissioner Pitts noted a call he received about a gate and fence in poor condition, and he
commented about the terminal siding.
Commissioner Dodge expressed positively about the airport terminal progress.
Commissioner Minelga inquired about the Capital Improvement Plan and repair(s) of Willow
Street and Airport Way, and expressed interest in seeing the T33 rehabilitation project continue.
It was clarified that further information would be provided at the next Commission meeting.
10. ADDITIONAL PUBLIC COMMENT
11. INFORMATION ITEMS
a. January 2020 Mid-Month Report
b. February 2020 Mid-Month Report
c. January 2020 Enplanements
d. City of Kenai – Capital Improvements Plan (Draft)
e. Airport Bulletin 1-2020 Security Awareness
f. IEM – Kenai Municipal Airport Site Assessment
g. FY18-FY19 Federal Contract Tower Annual Air Traffic Control Operations
12. ADJOURNMENT
MOTION:
Commissioner Zirul MOVED to adjourn and Commissioner Bielefeld SECONDED the motion.
There were no objections; SO ORDERED.
The meeting was adjourned at 7:09 p.m.
Meeting summary prepared and submitted by:
___________________________________
Jacquelyn LaPlante
Deputy City Clerk
Page 5 of 117
(This page was intentionally left blank)
Page 6 of 117
Municipal Airport
Memo
To:
Through:
From:
Date:
Subject:
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TEU:PHONE 907..283-7951
FAX907~
Airport Commission
Mary Bondurant -Airport Manager
Erica Brincefield -Assistant
April30,2020
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,
2020 to June 30, 2021.
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 FYI 5 $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 , Everts Air Fuel, Inc. has paid the special
use permit application fee, and 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 7 of 117
SPECIAL USE PERMIT -2020
The CITY OF KENAI (City) grants to EVERTS AIR FUEL, INC. (Permittee), whose
address is P.O . Box 60908, Fairbanks, AK 99706 , a Special Use Permit to conduct
aeronautical and/or aviation-related activities at the Kenai Municipal Airport subject to the
requirements and the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as
described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2020 and
ending on June 30, 2021. Regardless of the date of signature , this Permit shall be effective as
of July 1, 2020.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of$3,025 .plus applicable sales tax.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of One Hundred Dollars ($100 .00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200 , Kenai, AK 99611 . All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due
(KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure
to timely make payments is grounds for termination of this Permit. (See if 22 , Termination)
4. Use. City authorizes Permittee's non-exclusive use of the Premises for t he
following purpose(s):
Special Use Permit-Everts Air Fuel, Inc . (Ramp Aircraft Loading & Parking) Page 1of8
Page 8 of 117
Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use
of the area identified in Exhibit A. City reserves the right to re-assign Permittee. upon
reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee 's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions :
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airport Manager or
designated representative . The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees , and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
env ironment, and the safety and integrity of the Airport and any premises . on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any cond ition,
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 t ime for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
Special Use Permit-Everts Air Fuel , Inc . (Ramp Aircraft Loading & Parking) Page 2of8
Page 9 of 117
7. Coordi nation with A i rport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative , and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver , or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits , City is
entitled to coverage to the extent of the higher limits .
A. Commercial General Liability insurance, including premises , all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000 ,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker 's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23 .30 .045 . Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000 ,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated "A-" or
better by A .M . Best.
11. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements ,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
111. Permittee shall request a waiver of subrogation against City from
Special Use Permit-Everts Air Fuel, Inc . (Ramp Aircraft Loading & Parking) Page 3of8
Page 10 of 117
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 July 1,
2020. The effective date of the insurance shall be no later than July
1, 2020.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
Special Use Permit-Everts Air Fuel, Inc . (Ramp Aircraft Loading & Parking) Page 4 of8
Page 11 of 117
discharge of petroleum products or hazardous materials due to Permittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability . Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times. Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee's activities.
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within 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 Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
14. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 5of8
Page 12 of 117
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal , state, and City statutes, ordinances ,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport 's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms , conditions,
and requirements herein contained, or referred to , shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions , or requirements .
21. Personalty. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of$25 per day. The City of Kenai
is not responsible for any damage to or theft of any personalty of Permittee or of its
customers .
22 . Termination; Default. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. City may terminate the Permit
immediately, or upon notice shorter than 30 days , to protect public health and safety or due
Special Use Permit-Everts Air Fuel , Inc. (Ramp Aircraft Loading & Parking) Page 6of8
Page 13 of 117
to a failure of Permittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates , charges and fees . Permittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City. Permittee shall also provide
Airport Administration with monthly certified gross take-off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite
200, Kenai, AK 99611.
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90
days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three
consecutive weeks not more than 30 days nor less than seven days before the time of the
auction.
25. Definitions. As used in this Permit, "Permittee" means Everts Air Fuel, Inc. and
where the context reasonably indicates, its officers, agents , and employees. "Airport"
means the Kenai Municipal Airport.
CITY OF KENAI
Paul Ostrander
City Manager
Date
EVERTS AIR FUEL, INC.
Rob Everts
Consultant
Special Use Permit-Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking)
Date
Page 7of8
Page 14 of 117
ACKNOWLEDGrvIBNTS
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of 2020, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2020 , the foregoing
instrument was acknowledged before me by Rob Everts, Consultant, Everts Air Fuel, Inc.,
on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires: ____ _
ATTEST:
Jamie Heinz, City Clerk
SEAL:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Special Use Permit-Everts Air Fuel , Inc . (Ramp Aircraft Loading & Parking) Page 8of8
Page 15 of 117
Everts Air Fuel
30,000 sqft
._. -
EXHIBIT A
I EXHIBITA
Page 16 of 117
Municipal Airport
Memo
To:
Through:
From:
Date:
Subject:
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907.:.lIJ3.3'n7
Airport Commission
Mary Bondurant -Airport Manager
Erica Brincefield -Assistant
April30,2020
Crowley Fuels LLC. -Special Use Permit
Crowley Fuels 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, 2020 to June 30, 2021.
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, Crowley Fuels LLC has paid the special
use permit application fee, and is current in all fees owed to the Airport.
Does Commission recommend Council approve the Special Use Permit to Crowley Fuels
LLC?
Attachment
www.KenaiAirport.com
Page 17 of 117
SPECIAL USE PERMIT -2020
The CITY OF KENAI (City) grants to CROWLEY FUELS LLC (Permittee), whose
address is 201 Arctic Slope Ave., Anchorage, AK 99518, a Special Use Permit for the
fueling area on the apron at the Kenai Municipal Airport subject to the requirements and
the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 35,000 square feet as
described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2020 and
ending on June 30, 2021. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2020.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of $3,529.16 plus applicable sales
tax.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due
(KMC 1.75 .010). Interest shall accrue from the date due until the date paid in full. Failure
to timely make payments is grounds for termination of this Permit. (See~ 22, Termination)
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the
following purpose(s):
Special Use Permit-Crowley (Apron Fueling Area) Page 1of8
Page 18 of 117
Aviation Fueling on Apron Fueling Area. NOTE: This permit does not guarantee the
exclusive use of the area identified in Exhibit A. City reserves the right to re-assign
Permittee, upon reasonable notice, to other areas as airport needs may require .
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions :
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airport Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees , and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
Special Use Permit-Crowley (Apron Fueling Area) Page 2of8
Page 19 of 117
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee . Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
I. All policies will be by a company/corporation currently rated "A-" or
better by A .M. Best.
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.
Special Use Permit-Crowley (Apron Fueling Area) Page 3of8
Page 20 of 117
m. Permittee shall request a waiver of subrogation against City from
Permittee 's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination , cancellation, or material change in insurance coverage of
any policy required hereunder.
v . Evidence of insurance coverage must be submitted to City by July 1,
2020 . The effective date of the insurance shall be no later than July
1, 2020.
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 ofinsurance coverage that meets the requirements of the City .
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal A irport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers , agents , employees,
and volunteers from and against all actions, damages , costs , liability , claims, losses,
judgments , penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
Special Use Permit-Crowley (Apron Fueling Area) Page 4of8
Page 21 of 117
any damage caused by and costs associated with any spill , the cleanup of any spill, or the
discharge of petroleum products or hazardous materials due to Permittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times. Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee's activities .
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations .
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or 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 NFPA 407 (1996 vers ion), 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 requ irements 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 requ irement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable , and not unjustly
Special Use Permit-Crowley (Apron Fueling Area) Page 5of8
Page 22 of 117
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory , prices for each product or service provided at the Airport.
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City .
16. Compliance with Law/Grant Assurances. This Permit, and Permittee 's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes , ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport 's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to ins ist upon a strict compliance with the terms , conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions , or requirements.
21. Personalty. Permittee shall remove any and all personal property, including all
vehicles , from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and /or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 per day . The City of Kenai
is not respons ible for any damage to or theft of any personalty of Permittee or of its
customers .
22 . Termination ; Default. This Permit may be terminated by either party hereto by
giv ing 30 days advance written notice to the other party. City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
Special Use Permit-Crowley (Apron Fueling Area) Page 6of8
Page 23 of 117
to a failure of Permittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City 's comprehensive schedule
of rates, charges and fees. Permittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City . Permittee shall also provide
Airport Administration with monthly certified gross take-off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite
200, Kenai, AK 99611.
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within 90
days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three
consecutive weeks not more than 30 days nor less than seven days before the time of the
auction.
25. Definitions. As used in this Permit, "Permittee" means 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
Richard W. Meidel
Vice President
Special Use Permit-Crowley (Apron Fueling Area)
Date
Page 7of8
Page 24 of 117
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2020, the foregoing
instrument was acknowledged before me by Paul Ostrander, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2020, the foregoing
instrument was acknowledged before me by Richard W . Meidel, 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 Attorney
Special Use Permit-Crowley (Apron Fueling Area) Page 8of8
Page 25 of 117
EXHIBIT A
Crowley
I
I EXHIBIT A
Page 26 of 117
Municipal Airport
Memo
To:
Through:
From:
Date:
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TB.EPHONE907~7951
FAX907~
Airport Commission
Mary Bondurant -Airport Manager
Erica Brincefield -Assistant
April 30, 2020
Subject: UPSCO United Parcel Service Co., Inc .. -Special Use Permit
UPSCO 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, 2020 to June 30, 2021.
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 FYl 5 $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 , UPSCO United Parcel Service Co., Inc.
has paid the special use permit application fee , and 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 27 of 117
SPECIAL USE PERMIT 2020
The CITY OF KENAI (City) grants to UPSCO United Parcel Service Co., Inc. (Permittee),
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 1, 2020 and
ending on June 30, 2021. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2020.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of$403.33 plus applicable sales tax.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency , interest at the rate often percent (10%) per annum, and penalty often percent
(10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the
date paid in full. Failure to timely make payments is grounds for termination of this Permit.
(See ~ 22, Termination)
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the
following purpose( s):
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 1of9
Page 28 of 117
Aircraft Loading and Parking. NOTE: This permit does not guarantee the exclusive use
of the area identified in Exhibit A. City reserves the right to re-assign Permittee. upon
reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airport Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 2 of9
Page 29 of 117
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee 's fuel
handling activities. The policy must name the City as an additional insured.
B . Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1 ,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated "A-" or
better by A .M . Best.
11 . Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
ui. Permittee shall request a waiver of subrogation against City from
Special Use Pennit-UPSCO (Aircraft Loading & Parking) Page 3 of9
Page 30 of 117
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,
2020. The effective date of the insurance shall be no later than July
1, 2020 .
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend , and hold harmless, the City of Kenai , its officers , agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims , losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 4of9
Page 31 of 117
discharge of petroleum products or hazardous materials due to Permittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability . Permittee further agrees t o have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times . Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee's activities.
Permittee shall not store any personal property, solid waste, petroleum product s, Hazardous
Material as defined by 14 CFR § 171.8 , hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations .
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline , oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp, inside an aircra ft hangar, or within
fifty feet (50') of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, the National Fire Protection Associations '
"Standard for Aircraft Fueling Servicing" in NFP A 407 ( 1996 version), and the current
version of the International Fire Codes. All inspections of fuel facilities , by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Permittee shall conform and be subject t o
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
sub stances and materials.
14 . No Discrimination. Permittee shall not discriminate against any p erson because of
the person's race, creed, color national origin, sex, age, or handicap . Permittee reco gn izes
the ri ght of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
Special Us e Permit-UPSCO (Aircraft Loadin g & Parking) Page 5 of 9
Page 32 of 117
discriminatory , basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport .
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions ,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms , conditions, or requirements.
21. Personalty. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25.00 per day. The City of
Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its
customers.
22. Termination; Default. This Permit may be terminated by either party hereto by
giving thirty (30 ) days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than thirty (30) days , to protect public health
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 6 of9
Page 33 of 117
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 . L anding Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing , Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates, charges and fees. Permittee shall make payment within thirty (30) days following
the end of each month and without demand or invoicing from City. Permittee shall also
provide Airport Administration with monthly certified gross take-off weight reports within
ten (10) days follow ing the end of each month for landings for the preceding month.
Airport landing fees shall be paid at the Airport Administration Building, 305 North
Willow Street, Suite 200, Kenai, AK 99611 .
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes . Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety
(90) days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three (3)
consecutive weeks not more than thirty (30) days nor less than seven (7) days before the
time of the auction.
25. Definitions. As used in this Permit, "Permittee" means UPSCO, United Parcel
Service Co., Inc. and where the context reasonably indicates, its officers, agents, and
employees. "Airport" means the Kenai Municipal Airport.
CITY OF KENAI
Paul Ostrander
City Manager
Date
UPS CO
Robert Vey Date
Extended Centers Manager
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 7 of9
Page 34 of 117
ACKNOWLEDGtvfENTS
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of , 2020, the foregoing
instrument was acknowledged before me by PAUL OSTRANDER, City Manager, of the
City of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires: ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of 2020, the foregoing
instrument was acknowledged before me by Robert Vey, the Extended Centers Manager,
on behalf ofUPSCO, United Parcel Service Co., Inc.
Notary Public for Alaska
My Commission Expires: ____ _
Approved as to Form:
-
Scott Bloom
City Attorney
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 8 of9
Page 35 of 117
Special Use Permit-UPSCO (Aircraft Loading & Parking) Page 9 of9
Page 36 of 117
Exhibit A
Page 37 of 117
Municipal Airport
Memo
To:
Through:
From:
Date:
Subject:
305 N . WI.I.OW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907..283-7951
FAX907~
Airport Commission
Mary Bondurant -Airport Manager
Erica Brincefield -Assistant
May 20, 2020
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 p ermit will be effective for one year from July 1, 2020 to June 30,
2021.
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 FYI 5 $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 insuranc e on fil e, Empire Airlines, Inc. has paid the s pecial
use permit appli cation fee, and is current in all fee s ow ed to the Airport.
Does Commission recommend Council approve the Special Use Permit to Empire Airlines,
Inc.?
Att achment
www.KenaiAirport.com
Page 38 of 117
SPECIAL USE PERMIT-2020
The CITY OF KENAI (City) grants to EMPIRE AIRLINES, INC . (Permittee), whose
address is 11559 N. Atlas Road, Hayden, ID 83835, a Special Use Permit for the purpose
of aircraft parking at the Kenai Municipal Airport subject to the requirements and the
conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 11,250 square feet as
described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2020 and
ending on June 30, 2021. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2020 .
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of $1, 134.3 7 plus applicable sales
tax.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of one hundred dollars ($100 .00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
A venue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 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 Pennit.
(See if 22, Termination)
Special Use Permit-Empire Airlines, Inc . (Parking) Page 1of8
Page 39 of 117
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the
following purpose(s):
Aircraft Parking. NOTE: This permit does not guarantee the exclusive use of the area
identified in Exhibit A . City reserves the right to re-assign Permittee, upon reasonable
notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises .
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee i s 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.
So licitation 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
des ignated representative . The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protecti on of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
Special Use Permit-Empire Airlines , Inc. (Parking) Page 2of8
Page 40 of 117
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee .
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
mach ine or device which interferes with any government-operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits .
A. Commercial General Liability insurance, including premises , all operations,
property damage, personal injury and death, broad-form contractual, with a per-
occurrence limit of not less than $1 ,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee 's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23 .30 .045 . Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000 ,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non-
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
t. All policies will be by a company/corporation currently rated "A-" or
better by A.M. Best.
It. Pennittee 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 41 of 117
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
m. Permittee shall request a waiver of subrogation against City from
Permittee 's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July I,
2020. The effective date of the insurance shall be no later than July
1, 2020.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand , Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless , the City of Kenai, its officers , agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City 's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee 's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport , and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
Special Use Permit-Empire Airlines, Inc. (Parking) Page 4of8
Page 42 of 117
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills . The City requires that
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
discharge of petroleum products or hazardous materials due to Permittee' s use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times. Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee 's activities.
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations .
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above-ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft-parking ramp, inside an aircraft hangar, or within
fifty feet (50 ') of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports , the National Fire Protection Associations '
"Standard for Aircraft Fueling Servicing" in 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 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.
Special Use Permit-Empir e Airlines, Inc. (Parking) Page 5of8
Page 43 of 117
14. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable , and not unjustly
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. Pennittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal , state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City 's grant assurances and federal
obligations .
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms , conditions, or requirements .
21. Personalty. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this 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 .00 per day. The City of
Kenai is not responsible for any damage to or theft of any personalty of Permittee or of its
customers.
Special Use Permit-Empire Airlines, Inc. (Parking) Page 6 of 8
Page 44 of 117
22. Termination; Default. This Permit may be terminated by either party hereto by
giving thirty (30) days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than thirty (30) days, to protect public health
and safety or due to a failure of Permittee to comply with condition or term of this Permit
which failu re remains uncured after notice by City to Permittee provi ding 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 thi s Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates , charges and fees . Permittee shall make payment within thirty (30) days following
the end of each month and without demand or invoicing from City. Permittee shall also
provide Airport Administration with monthly certified gross take-off weight reports within
ten (10) days 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 996 11.
24 . Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes . Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged
on each aircraft impounded. In addition, a daily storage fee shall be charged for each day
the aircraft remains impounded. An y 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 a uction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three (3)
consecutive weeks not more than thirty (30) days nor less than seven (7) days before the
time of the auction.
25. Definitions. As used in this Permit, "Permittee" means Empire Airl ines, 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 45 of 117
CITY OF KENAI
Paul Ostrander
City Manager
Date
EMPIRE AIRLINES, INC.
Randy Lanfell Date
Director of Flight Operations
ACKNOWLEDGMENTS
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of 2020, the foregoing
instrument was acknowledged before me by PAUL OSTRANDER, City Manager, of the
City of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires : ____ _
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this __ day of 2020, the foregoing
instrument was acknowledged before me by RANDY LANFELL, Director of Flight
Operations, Empire Airlines, Inc., on behalf of the State of Alaska.
Approved as to Form:
L
Scott Bloom
City Attorney
Notary Public for Alaska
My Commission Expires: ____ _
Special Use Permit-Empire Airlines, Inc. (Parking) Page 8of8
Page 46 of 117
City of Kenai I 210 l=idalgo Ave, Kenai, AK 99611-77941907.283.7535 I www.kenai.cit y
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Airport Commission
Mary Bondurant, Airport Manager
Elizabeth Appleby, City Planner
May 6, 2020
Action Approval for Special Use Permit to Weaver Brothers, Inc.
James H. Doyle, Individually, d/b/a Weaver Brothers , Inc. has requested to use three adjacent
City-owned parcels along Coral Street for storage of truck trailers for one-year from June 21, 2020
to June 20, 2021. Weaver Brothers, Inc. requested the same use on these parcels from June 20,
2019 to June 20, 2020 . The Kena i City Council approved of this use at their meeting on June 19,
2020 and trucks are currently being stored on the parcels. This use is similar to the use of two
parcels under a five-year lease from the City by Weaver Brothers for truck storage across Coral
Street and allows for a temporary expansion of their business. The attached map shows the
location of the three adjacent parcels requested for a special use permit. The application
submitted to the City is also attached to this memorandum .
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 and the CPI adj ustment for the past
year is 1.39%. The annual permit fee would be $2, 720 .62 for all three lots based on $0 .50 per
square foot, 67 ,083 total square feet to be used, CPI adjustment of 1.39%, and an 8% of fair
market value annual special use permit rate.
The parcels are within the Airport Light Industrial {ALI) Zone of the City and within the Airport
Reserve . Pursuant to requirements of the Federal Aviat ion Administration, the City would reserve
the right to cancel this special use permit on 90-days' notice.
The recommendation of the Airport Commission will be provided to City Council as part of their
decision process for the special use permit. If City Council approves, City Administration would
execute a special use permit for truck trailer storage for 12 months to James H. Doyle, Individually,
d/b/a Weaver Brothers, Inc. What is the recommendation of the Airport Commission to City
Council for the special use permit request?
Page 47 of 117
K~NAI -........... ~ .-.. , --"I"--
• • _ .. _,. 't' ...., ·••:i;. , .I
-
City o f K en ai
Special Use Permit
Application
. - - -•r ' • • --r· --...-
Applicant Information .. .... '·., . .. . . . ' .. _'..,. ... ~ _, ..
!Applicat ion Date : j4/20/2020
. 1
' ' ~
Name of Applicant: JAMES H . DOYLE, INDIVIDUALLY, D/B/A WEAVER BROTHERS, INC
Ma ili ng Address : PO Box 2229 I city: Kenai !state: !Alaska lzip Code:l 99611
Phone Number(s): Home Phone: (9P.l ) :Z~.? ·3 JZ 1 Work/ Message Phone : (~''7 ) .z ~3 ·· 7c4 3 ?
E-mail : (Optional) kevind@wbialaska .com
Name to Appear on Permit: !James Doyle
Mailing Address : PO Box 2229 jcity: Kenai !state: lAlaska lzip Code :j 99611
Phone Number(s): Home Phone : ( '1~ 7 ) .2.. ~-3 . J r, S7-Work/ Message Phone: ('J t.77 ) .z.F .:, 7G.• ::5 :;-
E-mail: (Optional) kevind@wbialaska .com
Type of Applicant: !!I Individual (at least 18 years of age) 0 Partnership IX Corporation 0 Government
D Limited Liability Company (LLC) D Other
~~-~ ·-r~--... -.. --~-... ....,..--. ~ ----.... ,. -----.-"""'"Y"~-~· ---~ ---. . -.. -. -.. .. --.. .., --. . -:.~ ·~)~--_;~~~ .. ---~" _, ·._:_ ~~~'.~~···~--~--.. .· .. ~ropert!~!~0!~fmatio~ ~
• -· • • • • ,I'; •• -••
Legal or physical description of the property: .y'/S-e~-4" 5~ ,:-,I;!"/ K~N-~I, ~~e'/1--
-7~:>-C"..,,'Z.,,,_L ::> ~c;;;'/" A;:<£""...., rf / I "'1-T .4-.f' .if'.-f-
".'T .?$-C'.:-.a!-~-5-,-,,a~;r,;r /C R N ,'f"/ I A'~-'1--J',,I:' ~
Description of the proposed business or activity intended: Trai ler storage
Is the area to be used in front of or immediately adjacent to any established business offering
the same or similar products or services upon a fixed location? DYES Ii! NO
Would the use under this perm it interfere with other businesses through excessive noise,
odor, or other nuisances? DYES Ii! NO
If you answered yes to any of the above questions, please explain :
What is the term requested (not to exceed one year)? 1 year
Requested Starting Date: June 20, 2020
Signa ture: A-,;---fa/, 1::::J&r,,.t Date : l-j-).. r ZtJ
Pri nt Name : l~mes H. Doyle T itle: President
For City Use Only: Date Application Fee Received : 4-<2,,tf-2-PU>
D General Fund •Ai rp ort Reserve Land City Counci l Action /Resolution :
0 Airport Fu nd D Outside Airport Reserve Account Number:
Page 48 of 117
JC
K~NAI
Special Use Permit Application
Parcels 04327030, 04327031, 04327032
415, 425, 435 Coral Street
Lots 1, 2, 3, Block 3, Gusty Sudivision No. 4
Page 49 of 117
Municipal Airport
Memo
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-ZB8281
FAX 907-283-3737
To: Airport Commission
Through: Mary Bondurant -Airport Manager
From: Erica Brincefield -Assistant
Date: May 7, 2020
Subject: Second Amendment to Restaurant Concession Agreement
On August 1, 2018 the City of Kenai entered into an Agreement for a Restaurant
Concession with Situla LLC (d/b/a Brother's Cafe) from August 1, 2018 through June
30, 2020 with the option to extend for an additional three (3) one-year terms if the City
and concessionaire mutually agree in writing.
The Concessionaire requests to renew under the same terms and conditions. The
Airport has a current Certificate of Insurance on file.
Attached for your review and recommendation is the Second Amendment to Agreement
for Restaurant Concession Agreement which shall be effective July 1, 2020.
Does Commission recommend Council approve the Second Amendment to
Agreement for Restaurant Concession with Situla LLC (d/b/a Brother's Cafe)?
Attachment
www.KenaiAirport.com
Page 50 of 117
SECOND AMENDMENT TO CITY OF KENAI
KENAI MUNICIPAL AIRPORT
RESTAURANT CONCESSION AGREEMENT
James Hamilton and Zachary Hamilton, Co-Owners (Concessionaire), Situla LLC
(d/b/a/ Brother's Cafe, 1510 Kittiwake CT, Kenai, Alaska 99611, and the CITY OF
KENAI, a municipal corporation, organized and existing under the laws of the State of
Alaska (City), 210 Fidalgo Avenue, Suite 200, Kenai, Alaska 99611, entered into a
contract for restaurant concession services at the Kenai Airport, beginning August 2,
2018.
Whereas: on August 1, 2018, the Kenai City Council adopted Resolution 2018-42,
authorizing the City Manager to enter into a restaurant concession agreement with
Concessionaire; and,
Whereas : on March 6, 2019, the Kenai City Council adopted Resolution 2019-14,
authorizing the City Manager to amend the Agreement with Concessionaire to
reflect a temporary adjustment to the fees and payments due; and,
Whereas: pursuant to Article II of the Agreement, the City and Concessionaire mutually
agree to extend the Agreement for the first successive one-year term.
Now, therefore, the City of Kenai and Concessionaire agree as follows:
1. Pursuant to Article II of the Restaurant Concession Agreement for the Kenai
Municipal Airport, this Agreement is extended for the first one-year term extension
beginning on July 1, 2020 and ending on June 30, 2021.
2. All other terms and conditions of the Agreement shall remain unchanged and in full
force and effect.
Restaurant Concession Agreement Amendment 5/7/2020
Page 1of3
City __
Concessionaire __
Concessionaire
Page 51 of 117
LESSOR:
CITY OF KENAI
Paul Ostrander, City Manager
CONCESSIONAIRE:
Situla LLC (d/b/a/ Brother's Cafe) Situla LLC (d/b/a/ Brother's Cafe)
James Hamilton -Co-Owner Zachary Hamilton -Co-Owner
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this _ day of , 2020, James
Hamilton, Co-Owner, Situla LLC (d/b/a/ Brother's Cafe), being personally known to me
or having produced satisfactory evidence of identification, appeared before me and
acknowledged the voluntary and authorized execution of the foregoing instrument on
behalf of said Corporation .
Notary Public for Alaska
My Commission Expires: _____ _
Restaurant Concession Agreement Amendment 5/7/2020
Page 2 of 3
City __
Concessionaire __
Concessionaire
Page 52 of 117
STA TE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this _ day of , 2020, Zachary
Hamilton, Co-Owner, Situla LLC (d/b/a/ Brother's Cafe), being personally known to me
or having produced satisfactory evidence of identification, appeared before me and
acknowledged the voluntary and authorized execution of the foregoing instrument on
behalf of said Corporation.
Notary Public for Alaska
My Commission Expires : _____ _
STATE OF ALASKA )
)ss
THIRD JUDICAL DISTRICT )
THIS IS TO CERTIFY that on this day of , 2020,
personally appeared before me, PAUL OSTRANDER, known to me and to me known
to be the City Manager of the City of Kenai, Alaska, and who acknowledged before me
that the foregoing instrument was freely and voluntarily executed on behalf of the City
of Kenai, for the uses and purposes set forth and with full authority of the City of Kenai
to do so.
Notary Public for Alaska
My Commission Expires : _____ _
Approved by Kenai City Council on
Approved as to lease form by City Attorney
Approved by Finance Director
Approved by City Manager
Restaurant Concession Agreement Amendment 5/7/2020
Page 3 of 3
City __
Concessionaire __
Concessionaire
Page 53 of 117
(This page was intentionally left blank)
Page 54 of 117
_____________________________________________________________________________________
Sponsored by: Administration
CITY OF KENAI
RESOLUTION NO. 2020-31
A RESOLUTION OF THE CITY OF KENAI, ALASKA, APPROVING A CONVERSION OF A
LEASE OF AIRPORT RESERVE LANDS DESCRIBED AS LOT 4, FBO SUBDIVISION NO. 7,
WITH THE STATE OF ALASKA, DIVISION OF FORESTRY ON A NON STANDARD LEASE
FORM.
WHEREAS, in 2004, the State of Alaska, Department of Natural Resources, Division of Forestry
entered in to a lease with the City for Airport Reserve land described as Lot 4, FBO SUBDIVISION
No. 7, according to the official plat thereof, filed under Plat No. 2001-34, Seward Meridian, Kenai
Recording District, State of Alaska; and,
WHEREAS, the 18-year lease is utilized by Division of Forestry for fire response and as a tanker
reloading base; and,
WHEREAS, Kenai Municipal Code Chapter 21.10- Leasing and Acquisition of Airport Reserve
Lands, was repealed and reenacted in 2018 to encourage growth, development and a thriving
aviation community; and,
WHEREAS, the Kenai City Council approved a new standard lease form reflecting the 2018 Code
changes to Title 21 and offered existing lessees the opportunity to request a conversion of their
leases to the new form for a time period of two years; and,
WHEREAS, the Division of Forestry would like to convert to the new lease form, but is unable to
execute the new standard lease form because of two indemnification requirements the State
asserts it may not agree to that were not included in the original lease; and,
WHEREAS, Division of Forestry through the State of Alaska has provided a letter of self-
insurance that technically deviates from the insurance requirements in the approved lease form
and requires modification to the insurance terms in the standard lease form; and,
WHEREAS, the State of Alaska has supplied the City with a letter of self-insurance; and,
WHEREAS, Kenai Municipal Code Section 21.10.140- Form of Lease, allows for a lease form
that deviates from the standard form if the City Manager believes it is in the best interest of the
City, the lease is approved to form by the City Attorney, and the lease is approved by resolution;
and,
WHEREAS, at its regular meeting of May 14, 2020, the Airport Commission recommended the
City Council ________this resolution.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Page 55 of 117
Resolution No. 2020-31
Page 2 of 2
_____________________________________________________________________________________
Section 1. That the attached non-standard lease form converting the City’s lease with the
State of Alaska, Department of Natural Resources, Division of Forestry for Airport Reserve land
described as Lot 4, FBO SUBDIVISION No. 7, according to the official plat thereof, filed under
Plat No. 2001-34, Seward Meridian, Kenai Recording District, State of Alaska is approved.
Section 2. That the City Manager believes the non-standard lease form is in the best interest
of the City.
Section 3. That the City Attorney approves of the lease form.
Section 4. That this resolution takes effect immediately upon passage.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May, 2020.
__________________________________
BRIAN GABRIEL, SR., MAYOR
ATTEST:
______________________________________
Jamie Heinz, CMC, City Clerk
Page 56 of 117
MEMORANDUM
TO: Airport Commission
THROUGH: Mary Bondurant, Airport Manager
FROM: Elizabeth Appleby, City Planner
DATE: May 14, 2020
SUBJECT: Recommendation for Lease Conversion
The attached proposed lease conversion between the City of Kenai and the State of Alaska
Department of Natural Resources, Division of Forestry, deviates from the City’s standard lease
form to remove lease clauses related to indemnification. The Division of Forestry has requested
to convert to the new lease form as an option allowed to all existing lessees when the new
standard lease form for Airport lands was adopted with Resolution No. 2018-10 and changes
were made with Ordinance No. 2998-2018 to Title 21, City Airport Reserve Lands. However, but
the State of Alaska is unable to execute the new standard lease form because of two
indemnification requirements the State asserts it may not agree to that were not included in the
original lease. The Division of Forestry through the State of Alaska has provided a letter of self-
insurance that technically deviates from the insurance requirements in the standard lease form
and requires modification to the insurance terms in the standard lease form. The letter of self-
insurance comparatively fulfills the standard lease clauses for indemnification included in the
standard lease form. This letter is attached for reference.
Kenai Municipal Code Section 21.10.140- Form of Lease, allows for a lease form that deviates
from the standard form if the City Manager believes it is in the best interest of the City, the lease
is approved to form by the City Attorney, and the lease is approved by resolution of the City
Council. It is in the best interest of the City to deviate from the standard lease form in this
conversion for the indemnification language because of the unique case of a self-insured
program of the State of Alaska and because the benefits of a stable and competitive lease
environment with standard lease formats will still be achieved with all of the other standard
lease clauses not related to indemnification that are part of this lease conversion following the
conversion option available to existing lessees with Resolution No. 2018-10.
A map of the parcel is also attached to this memorandum. The parcel is within the Airport Light
Industrial (IH) Zone of the City and within the Airport Reserve.
The recommendation of the Airport Commission will be provided to City Council as part of their
decision process for the non standard lease conversion.
Page 57 of 117
Page 2 of 2
What is the recommendation of the Airport Commission to City Council for the State of
Alaska Department of Natural Resources, Division of Forestry, lease conversion using a
form that deviates from the standard lease form?
Page 58 of 117
LEASE OF AIRPORT LANDS Page 1 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
KENAI MUNICIPAL AIRPORT
CONVERSION OF LEASE OF AIRPORT RESERVE LANDS
THIS CONVERSION OF LEASE AGREEMENT is entered into between the CITY OF KENAI
(Lessor) whose address is 210 Fidalgo Avenue, Kenai, Alaska 99611 and STATE OF ALASKA,
DEPARTMENT OF NATURAL RESOURCES, DIVISION OF FORESTRY (Lessee) whose
address is 550 W. Seventh Avenue., Suite 1970, Anchorage, Alaska 99501, and converts the
Lease Agreement with the Lessor entered into on June 16, 2004 to this new Lease Form. While
the Commencement date and length of the Lease remain the same, all other terms, conditions,
rights, and obligations of this New Lease Form supersede the terms, conditions, rights, and
obligations of the prior Lease form entered into on June 16, 2004 and any amendments thereto.
This converted Lease becomes effective upon the last date of signature by the parties below.
DEFINITIONS
For the purposes of this Lease the following terms are defined in KMC 21.10.020 (effective as
of the date of execution of the lease) as follows:
1. Airport – the Kenai Municipal Airport, including all the runways, taxiways, aprons, water
lanes, water taxiways, and all City-owned real estate located within the boundaries of
the Airport Reserve as defined in KMC Chapter 21.05, Airport Administration and
Operation.
2. Airport Manager – the official to whom the City Manager of the City has delegated the
authority and responsibility of managing and directing the activities of the Airport.
“Airport Manager” includes that person’s authorized representative.
3. City – the City of Kenai, its elected officials, officers, employees or agents.
4. City Manager – the official to whom the Kenai City Council has delegated the
responsibility of managing and directing all activities of the City.
5. Contamination – the unpermitted presence of any released Hazardous Substance.
6. Environmental Law – any applicable federal, state, or local statute, law, regulation,
ordinance, code, permit, order, decision, judgment of any governmental entity relating
to environmental matters, including littering and dumping.
7. FAA – the abbreviation for the Federal Aviation Administration.
8. Hazardous Substance – any substance that is defined under an Environmental Law as
hazardous waste, Hazardous Substance, hazardous material, toxic, pollutant,
contaminant, petroleum, petroleum product, or oil.
Page 59 of 117
LEASE OF AIRPORT LANDS Page 2 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
9. KMC – the abbreviation for the Kenai Municipal Code.
10. Permanent Improvement – a fixed addition or change to land that is not temporary or
portable, including a building, building addition, gravel fill, pavement, retaining wall,
storage tank, well, and remediation of contamination for what the lessee is not
responsible
ARTICLE I
PREMISES LEASED
A. PREMISES: In consideration of Lessee’s payment of the rents and performance of all
the covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the
City, the following described property (“Premises”) in the Kenai Recording District, Third
Judicial District, State of Alaska and located on the Airport; to wit:
Lot 4, FBO SUBDIVISION NO. 7, according to the official plat thereof,
filed under Plat No. 2001-34, Seward Meridian, Kenai Recording District,
Third Judicial District, State of Alaska.
B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific
warranties, expressed or implied, concerning the condition of the Premises including, survey,
soils, wetlands, access, and suitability or profitability for any use including those authorized by
this Lease, its environmental condition, or the presence or absence of Hazardous Substances
in, on, and under the surface. The Lessee takes the Premises on an “as is” basis and without
warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title
to the Premises.
ARTICLE II
RIGHTS AND USES
A. AUTHORIZED USES:
1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for
the following purposes only:
Air Tanker Re-load Base for Fire Response
2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing,
the Lessee will operate on the Premises on a continuous basis, uninterrupted
by any period of closure over 15 consecutive days. The Lessee will give the
City written notice before closing the Lessee’s business on the Premises for
more than 10 consecutive days. The notice must state the reason for the
closure and the date on which the Lessee will re-open for business. This
provision does not apply to any period during which the Lessee is unable to
operate its business as a result of an act or directive of the City, or as a result
of a closure of the Airport or loss of the Lessee’s buildings on the Premises due
to fire or natural disaster.
Page 60 of 117
LEASE OF AIRPORT LANDS Page 3 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
B. RIGHTS RESERVED TO THE CITY:
1. RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others
any rights and privileges not specifically granted to the Lessee on an exclusive
basis. The rights and privileges granted to the Lessee in this Lease are the only
rights and privileges granted to the Lessee by this Lease.
2. EASEMENTS: The City reserves the right to make grants to third parties or
reserve to the City easements or rights of way through, on, or above the
Premises. The City will not grant or reserve any easement or right of way that
unreasonably interferes with the Lessee’s authorized uses of the Premises.
3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress
to and egress from the Premises and the right to enter any part of the Premises,
including buildings, for the purpose of inspection or environmental testing at any
time. Except in the case of an emergency, all inspections and environmental
testing will be coordinated with the Lessee to minimize interference with the
Lessee’s authorized uses of the Premises.
4. RIGHT OF FLIGHT: There is hereby reserved to the City, its successors and
assigns, for the use and benefit of the public, a right of flight for the passage of
aircraft in the airspace above the surface of the Premises. This public right of
flight will include the right to cause in the airspace any noise inherent in the
operation of any aircraft used for navigation or flight through the airspace or
landing at, taking off from, or operation on the Airport.
C. PROHIBITED USES: Unless specifically authorized by this Lease or an amendment
to this Lease, the following are prohibited:
1. Any use of the Premises other than those authorized in this Lease.
2. Any use of the Premises that is in violation of a City Ordinance or an Airport
regulation.
3. The outside storage on the Premises of junk, salvage aircraft or vehicle parts,
non-operational support equipment, unused or damaged equipment or material,
or solid waste or debris unless allowed pursuant to a conditional use permit
under KMC 14.20.
4. The disposal on the Premises or the Airport of waste materials generated by
the Lessee, including any Hazardous Substance, slash, overburden, and
construction waste.
5. The stripping, wasting, or removing any material from the Premises without the
prior written approval of the City.
6. Erecting structures or allowing growth of natural objects that would constitute
Page 61 of 117
LEASE OF AIRPORT LANDS Page 4 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
an obstruction to air navigation, or allowing any activity on the Premises that
would interfere with or be a hazard to the flight of aircraft, or interfere with air
navigation or communication facilities, serving the Airport.
7. Any use or activity that is prohibited by applicable law or regulation.
ARTICLE III
TERM & HOLDOVER
A. TERM: The initial term of this Lease is for eighteen (18) years, from the 1st day of
December, 2003, to the 30th day of June 2021.
B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after
the expiration, cancellation or termination of this Lease, the holding over will not operate as an
extension of the term of this Lease, but only creates a month-to-month tenancy, regardless of
any rent payments accepted by the City. The Lessee's obligations for performance under this
Lease will continue during the month-to-month tenancy. The City or Lessee may terminate the
Lessee’s holdover with ten days’ advance written notice.
ARTICLE IV
RENTS AND FEES
A. RENT: The initial rent for the Premises is $18,816.00 per year, as established by the
City pursuant KMC 21.10.090 and as subject to annual adjustment on July 1 of each year
under Article V of this Lease, plus applicable sales tax. The rent shall be payable annually in
advance of the first day of each year of the term of this Lease. All payments required by this
Lease must be made in U.S. dollars. If the annual rent exceeds $2,400, the Lessee may, upon
written notice to the City, choose to pay the rent in equal monthly installments, payable in
advance on or before the anniversary date of the term of this Lease and thereafter at monthly
intervals. No conversion of the payment schedule from annual to monthly shall result in the
City receiving less rent than it would have received had the conversion not taken place.
1. Rent Credit: A rent credit may be applied for a maximum of five years of lease
payments as provided in KMC 21.10.100 (as effective at the time this lease is
executed). Once the work is completed and value determined, a credit will be
applied to the lease payments, prorated as necessary for the successive five
years.
B. RENT PRORATED: Rental for any period less than one year shall be prorated on the
basis of the rent payable under this Lease in last full year previous to the prorating.
C. ADDITIONAL RENT: In addition to the rent specified in (a) of this Article, Lessee
agrees to pay to the appropriate parties all levies, assessments, and charges as follows:
1. Taxes pertaining to the leasehold interest of the Lessee.
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LEASE OF AIRPORT LANDS Page 5 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
2. Sales tax now enforced or levied in the future, computed upon rent payable in
monthly installments whether the Lessee pays rent under this Lease on a
monthly or annual basis.
3. All taxes and assessments levied in the future by the City, as if Lessee was the
legal owner of record of the Premises.
D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders
payable to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210
Fidalgo Avenue, Suite 200, Kenai, Alaska 99611-7794 or any other address the City may
designate in writing to the Lessee.
E. INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and
fees required under this Lease will accrue interest at the rate of eight percent (8.0%) per
annum. Interest on disputed amounts will not be charged to the Lessee if the dispute is
resolved in the Lessee’s favor.
F. LATE PAYMENT PENALTY: In addition to any interest payable under Provision (E) of
this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease,
the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%)
of the amount due and unpaid.
G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the
City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when
due, regardless of whether or not the Lessee receives a billing statement from the City.
H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due
and unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the
Lessee’s property, real or personal.
I. PAYMENT OF CITY’S COSTS: The Lessee will pay all reasonable actual expenses,
costs, and attorney fees City may incur, with or without formal action, to enforce, defend, or
protect this Lease or City's rights under this Lease, including any expense incurred with respect
to environmental compliance, bankruptcy or any proceeding that involves the Lessee, the
Lease, the Premises, or improvements or personal property on the Premises. The Lessee will
make payment within 30 days of the date of each notice from City of any amounts payable
under this provision.
J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable
fee for any special services or facilities the City agrees to perform, which the City is not
otherwise obligated by this Lease to provide and which the Lessee requests from the City in
writing.
ARTICLE V
ADJUSTMENT OF RENT AND FEES
A. RENT OR FEE ADJUSTMENT: The City shall adjust rent or fees payable by the
Lessee under Article IV or other provisions of this lease on July 1 of each year of the lease as
Page 63 of 117
LEASE OF AIRPORT LANDS Page 6 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
proved in KMC 21.10.090 (as effective at the time this lease is executed) and shall make any
other adjustments to rent as allowed for in KMC 21.10.090.
No rent or fee change shall be effective until 30 days after the date of the City’s written notice
to the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent for
the Premises, the Lessee may appeal a rent change to the City as provided in KMC 21.10.090.
ARTICLE VI
ASSIGNMENT & SUBLETTING
A. INVALID WITHOUT CITY’S CONSENT: The Lessee may not assign, sublet, or grant
a security interest in, by grant or implication, the whole or any part of this Lease, the Premises,
or any improvement on the Premises without the written consent of the City. Any proposed
assignment, sublease, or security interest must be written and must be submitted to the City
bearing the original, notarized signature of all parties. The Lessee may submit unsigned draft
documents for the City’s conceptual review. However, the City’s conceptual approval of a draft
document may not be construed as the City’s consent to any assignment, sublease, or security
interest. All provisions in this Lease extend to and bind the assignees and sub-lessees of the
Lessee.
B. NO WAIVER OF CONSENT: The City’s consent to one assignment, sublease, or
security interest will not waive the requirement for the Lessee to obtain the City’s consent to
any other assignment, sublease, or security interest.
C. ASSIGNEE / LESSEE OBLIGATIONS: An assignment must include a provision stating
that the assignee accepts responsibility for all of the assignor’s (Lessee’s) obligations under
this Lease, including environmental liability and responsibility. However, unless the City
specifically releases the Lessee in writing, the City may hold the Lessee responsible for
performing any obligation under this lease which an assignee fails to perform.
D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sub-lessee may not occupy
the Premises before the City consents to the assignment or sublease in writing.
E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an
assignment or a sublease, the terms of this Lease control.
F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City’s consent to any sublease
does not relieve or otherwise alter the Lessee’s obligations under this Lease.
G. SECURITY ASSIGNMENTS AND FINANCING:
1. Subject to the requirements of (A) of this Article VI, the Lessee may assign a
security interest in this Lease. The security interest may be in the form of a
mortgage, deed of trust, assignment or other appropriate instrument, provided
a. the security interest pertains only to the Lessee’s leasehold interest;
Page 64 of 117
LEASE OF AIRPORT LANDS Page 7 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
b. the security interest does not pertain to or create any interest in City's
title to the Premises; and
c. the documents providing for the security interest are acceptable to the
City.
2. If the assignment of a security interest to which the City has consented shall be
held by an established lending or financial institution, including a bank, an
established insurance company and qualified pension or profit sharing trust,
and the lending institution acquires the Lessee's interest in this Lease as a
result of a foreclosure action or other remedy of the secured party, or through
any transfer in lieu of foreclosure, or through settlement of or arising out of any
pending or contemplated foreclosure action, the lending institution may transfer
its interest in this Lease to a nominee or a wholly owned subsidiary corporation
with the prior written consent of the City, provided, the transferee assumes all
of the covenants and conditions required to be performed by the Lessee
(including payment of any monies owed by Lessee to the City under the lease).
In the event of such a transfer, the lending institution shall be relieved of any
further liability under this Lessee.
3. A holder of a security interest in this Lease consented to by the City shall have,
and be subrogated to, any and all rights of the Lessee with respect to the curing
of any default of this Lease by Lessee.
4. A holder of a security interest consented to by the City that takes possession of
this Lease shall not be released from the obligations and liabilities of this Lease
unless the holder assigns its leasehold estate to an assignee who is financially
capable and otherwise qualified to undertake to perform and observe the
conditions of this Lease and the City consents to the assignment. The City’s
consent will not be unreasonably withheld.
ARTICLE VII
MAINTENANCE, SNOW REMOVAL & UTILITIES
A. MAINTENANCE:
1. At no cost to the City, the Lessee will keep the Premises and all improvements
on the Premises clean, neat and presentable, as reasonably determined by the
City.
2. At no cost to the City, the Lessee will provide for all maintenance and services
at the Premises as may be necessary to facilitate the Lessee's compliance with
this Lease and the Lessee’s use of the Premises.
3. The Lessee shall comply with all regulations or ordinances of the City that are
promulgated for the promotion of sanitation. At no cost to the City, the Lessee
shall keep the Premises in a clean and sanitary condition, and control activities
on the Premises to prevent the pollution of water.
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LEASE OF AIRPORT LANDS Page 8 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
4. The Lessee agrees to comply with all decisions and directions of the City's
Airport Manager regarding maintenance and operation of the Airport, and the
use of the Airport by the Lessee.
B. SNOW REMOVAL:
1. At no cost to the City, the Lessee is responsible for snow removal on the
Premises. The Lessee shall dispose of snow in an off-Premises location
approved in writing by the City or provide suitable snow storage within the
boundaries of the Premises in accordance with all applicable federal and state
laws. At the request of the Airport Manager, the Lessee shall submit a snow
removal plan for the Premises to the Manager for review. Upon approval of the
Lessee’s plan by the Airport Manager, the Lessee shall conduct all snow
removal operations on the Premises in accordance with the approved plan.
2. Lessee shall not deposit snow on an apron, taxiway, safety area, or other
aircraft-maneuvering surface provided for common use by others without the
prior written of the Airport Manager.
3. Lessee agrees to not allow an accumulation of snow on the Premises that would
cause interference with adjoining leaseholders or other users of the Airport.
C. UTILITIES: Unless specifically provided otherwise in this Lease, the Lessee shall,
at no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's
use of the Premises.
ARTICLE VIII
OPERATIONS
A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its
employees, guests, contractors, sub-lessees, and vendors that perform any activity or function
authorized under this Lease shall do so in a manner that ensures the safety of people, the
protection of public health and the environment, and the safety and integrity of the Airport and
the Premises.
B. LESSEE'S CONTROL AND RESPONSIBILITY:
1. The Lessee will assume full control and sole responsibility as between Lessee
and City for the activities of the Lessee, the Lessee's personnel and employees,
and anyone else acting by, on behalf of, or under the authority of the Lessee on
the Airport, including the Premises.
2. The Lessee will immediately notify the City of any condition, problem,
malfunction or other occurrence that threatens the safety of people or the
Airport, harm to public health or the environment, or the safety or integrity of the
Premises.
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Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
C. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or
device that interferes with any government-operated transmitter, receiver, or navigation aid
until the cause of the interference is eliminated.
D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife on
an airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep
the Premises clean of fish slime, fish waste, or any other material that might attract birds or
other wildlife. The Lessee accepts full responsibility to maintain the Premises, control
operations, and take all reasonable measures to prevent a concentration of birds or other
wildlife on the Premises.
E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking
space on the Premises for Lessee’s business or activities, or confine parking to such other
places on the Airport as may be approved or designated in writing by the Airport Manager.
ARTICLE IX
ENVIRONMENTAL PROVISIONS
A. HAZARDOUS SUBSTANCE:
1. The lessee will conduct it business and/or operation on the Premises in
compliance with all environmental laws and permits. If hazardous substances
are handled on the Premises, the Lessee agrees to have properly trained
personnel and adequate procedures for safely storing, dispensing, and
otherwise handling Hazardous Substances in accordance with all applicable
federal, state and local laws.
2. Lessee will promptly give the City notice of proceeding to abate or settle matters
relating to the presence of a Hazardous Substance on the Premises or from
Lessee’s operations on the Airport. The Lessee will allow the City to participate
in any such proceedings.
B. REMEDIATION:
1. In the event of a Hazardous Substance spill on the Premises, the Lessee will
immediately notify the City and the Alaska Department of Environmental
Conversation and act, promptly, at its sole expense, to contain the spill, repair,
any damage, absorb and clean up the spill area, and restore the Premises to a
condition satisfactory to the City and otherwise comply with the applicable
portions of any environmental law.
2. In addition to any notices required by this Lease, the Lessee will immediately
notify and copy the City in writing of any of the following:
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a. Any permit, enforcement, clean up, lien, removal or other governmental
or regulatory action instituted, completed, or threatened pursuant to an
Environmental Law.
b. Any claim made or threatened by any person against the Lessee or
arising from the Lessee’s operations authorized by this Lease, relating
to damage, contribution, compensation, loss or injury resulting, from, or
claimed to result from any Hazardous Substances in, on, or under the
Airport; or
c. Any report made by, or on behalf of, the Lessee to any environmental
agency arising out of or in connection with any Hazardous Substances
in, on, or removed from the Premises, including any complaints, notices,
warnings, or asserted violations.
3. Remediation and restoration of the contaminated area must meet all applicable
state and federal regulations and must meet the requirements of all governing
regulatory authorities.
C. ENVIRONMENTAL AUDIT: The Lessee will provide the City with all investigative data,
test results, reports, and any other information gathered or analyzed as part of or in relation to
any Environmental Assessment, characterization or audit on the Premises or the Airport that
Lessee performs or causes to be performed after the starting date of this Lease. The Lessee
will submit the data, result, report or information to the City within 60 days following the date
on which it becomes available to the Lessee.
D. RELEASE OF LESSEE: The City releases the Lessee from liability to the City for
Contamination and the presence of Hazardous Substances that existed prior to the
commencement date of this lease unless caused or materially contributed to by the Lessee.
E. SURVIVAL OF OBLIGATIONS: The obligations and duties of the City and Lessee
under Article IX of this lease shall survive the cancellation, termination or expiration of this
lease.
ARTICLE X
INSURANCE
B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during
the term of this Lease, insurance of the type and limits required by this provision or
demonstrate to the City that its self insurance policy provides equal or better coverage. Where
specific limits are set, they will be the minimum acceptable limits. If the Lessee’s policy
contains higher limits, the City will be entitled to coverage to the extent of the higher limits. At
the time insurance in obtained by the Lessee, all insurance shall be by a company/corporation
rated “A-” or better by A.M. Best. The following policies of insurance are required with the
following minimum amounts:
1. Commercial General Liability, including Premises, all operations, property
damage, products and completed operations, and personal injury and death,
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broad-form contractual, with a per-occurrence limit of not less than $1,000,000
combined single limit. If this lease authorizes the Lessee to engage in the sale
or the commercial dispensing or storage of aviation fuel, the policy must not
exclude of Lessee’s fuel handling activities. This policy must name the City as
an additional insured.
2. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and
non-owned motor vehicles used by the Lessee.
3. Workers Compensation Insurance. The Lessee will provide and maintain, for
all employees, coverage as required under AS 23.30.045, and, where
applicable, any other statutory obligations. The policy must waive subrogation
against the City.
4. The Lessee will provide the City with proof of insurance coverage in the form of
an insurance policy or a certificate of insurance, together with proof that the
premiums have been paid, showing the types and monetary limits of coverage
secured. All insurance required by this provision must provide that the City be
notified at least 30 days prior to any termination, cancellation, or material
change in the insurance coverage.
5. If the Lessee's insurance coverage lapses or is canceled, Lessee will
immediately, upon written notice by the City, halt all operations on the Airport,
including the Premises. The Lessee will not resume operations until the City
receives evidence that the Lessee has obtained current insurance coverage
meeting the requirements of this Lease.
6. The City may, at intervals of not less than five years from the beginning date of
the term of this Lease and upon written notice to Lessee, revise the insurance
requirements required under this Lease. City’s determination to revise the
insurance requirements will be based on the risks relative to the Lessee's
operations, any insurance guidelines adopted by the City, and any applicable
law.
7. If the Lessee subleases all or any portion of the Premises under the provisions
of this Lease, the Lessee will require the sub-lessee to provide to the insurance
coverage required of the Lessee under this Article X.
ARTICLE XI
LAWS & TAXES
A. COMPLIANCE WITH LAW: Lessee shall comply with all applicable laws, ordinances,
and regulations of public authorities now or hereafter in any manner affecting the Airport, the
Premises or the sidewalks, alleys, streets, and ways adjacent to the Premises, or any buildings,
structures, fixtures and improvements or the use thereof, whether or not any such laws,
ordinances, and regulations which may be hereafter enacted involve a change of policy on the
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part of the governmental body enacting the same. Lessee agrees to hold City financially
harmless:
1. From the consequences of any violation of such laws, ordinances, and/or
regulations; and
2. From all claims for damages on account of injuries, death, or property damage
resulting from such violation.
B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation,
business, or trade to be conducted on the Premises contrary to any law, ordinance, or
regulation, including zoning ordinances, rules and regulations.
C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits,
pay all taxes and special assessments lawfully imposed upon the Premises, and pay other
fees and charges assessed under applicable law. Nothing in this Lease prevents the Lessee
from challenging any taxes or special assessments to the appropriate authority.
D. LITIGATION: The Kenai municipal code, including regulations promulgated
thereunder, and the laws of the State of Alaska will govern in any dispute between the Lessee
and City. If a dispute continues after exhaustion of administration remedies, any lawsuit must
be brought in the courts of the State of Alaska, in Kenai, Alaska.
E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which,
during the term of this Lease may become a lien upon or which may be levied by the State,
Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee
may have in or to the Premises or improvements on the Premises by reason of its use or
occupancy or the terms of this Lease provided, however, that nothing in this provision shall
prevent Lessee from contesting any increase in a tax or assessment under any applicable law,
ordinance, or regulation.
F. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is
declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining
terms, provisions, conditions, or parts shall continue in full force and effect as though the
declaration had not been made.
ARTICLE XII
LEASE TERMINATION
A. CANCELLATION: The City may, after 30 days’ written notice to the Lessee, cancel
this Lease and recover possession of the Premises if any of the following violations occur,
unless the violation is cured within the 30 days:
1. The Lessee fails to pay when due the rents, additional rents, charges, or other
sums specified in this Lease, including any increases made under this Lease.
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2. The Lessee's check for payment of any sum due under this Lease is returned
for insufficient funds.
3. The Lessee uses or authorizes the use of the Premises for any purpose not
authorized by this Lease.
4. The Lessee fails to fully perform and comply with any provision in this Lease.
5. The Lessee violates a provision of Kenai Municipal Code applicable to this
Lessee.
6. The court enters a judgment of insolvency against the Lessee.
7. A trustee or receiver is appointed for the Lessee's assets in a proceeding
brought by or against the Lessee, or the Lessee files a voluntary petition in
bankruptcy.
8. Failure by the Lessee to comply with any land development or permanent
improvement construction required by this Lease.
B. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated in
accordance with this Article XII, or by summary proceedings or otherwise, or upon the Lessee’s
abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or
representatives may, immediately or any time thereafter, re-enter, and resume possession of
the Premises or portion thereof, and remove all persons and property therefrom, without being
liable for any damages therefore. No re-entry by the City shall be deemed an acceptance of a
surrender of the Lease.
C. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will
continue to pay City rent after the expiration, termination, or cancellation of this lease and to
abide by the lease obligations, including providing proof of insurance coverage, through the
date Lessee relinquishes possession of and completely vacates the Premises. City will
consider the Premises completely vacated if the Lessee has
1. Remediated any environmental contamination for which the Lessee is
responsible;
2. Restored the Premises to a neat and clean physical condition acceptable to the
City.
D. REASONABLE CURE:
1. In the case of a violation that cannot be reasonably cured within 30 days, a
notice of cancellation issued by the City to the Lessee under this Article is
stayed if, within the 30-day notice period, the Lessee begins and continues
expeditious action to cure the violation. The City will determine if a violation
cannot be reasonably cured within 30 days and what constitutes expeditious
action.
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2. In the case where, in City’s sole determination, Lessee’s violation is considered
an imminent threat to the airport, public health or safety, or the environment,
City will direct the Lessee to stop the activity immediately and may reduce the
period to cure the violation, or the City may correct the violation pursuant to (E)
of this Article.
E. RIGHT OF CITY TO PERFORM:
1. If, after 30 days following notice the Lessee fails or refuses to perform any action
required by this Lease, the City will have the right, but not the obligation, to
perform any or all such actions required by this Lease at the sole expense of
the Lessee. The City will not take action if the Lessee begins and continues
expeditious action to perform any action required by this Lease that cannot be
reasonably completed within 30 days. The City will, at its sole discretion,
determine what constitutes expeditious action and if an action cannot be
reasonably performed in 30 days. The City will submit to the Lessee an invoice
for the expenses incurred by the City in the performance by the City of any
required action. The Lessee will pay the amount of each invoice within 30 days
from issuance.
2. If Lessee fails or refuses to perform any action that has been deemed an
imminent threat the City will have the right, but not the obligation, to perform
any or all such actions required to expeditiously correct the imminent threat.
Lessee shall reimburse the City for any cost, including legal fees and
administrative costs reasonably incurred by the City in acting to correct the
imminent threat violation.
F. WAIVER: A waiver by the City of any default by the Lessee of any provision of this
Lease will not operate as a waiver of any subsequent default. If the City waives a default, the
City is not required to provide notice to the Lessee to restore or revive any term or condition
under this Lease. The waiver by the City of any provision in this Lease cannot be enforced or
relied upon unless the waiver is in writing and signed on behalf of the City. The City's failure
to insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver
or relinquishment for the future, and the provision will continue in full force.
G. AIRPORT CLOSURE:
1. If the City closes the airport to aircraft operations for sixty days or less, this
Lease will remain in full force and effect without adjustment
2. If the City closes the Airport to aircraft operations for more than sixty days, but
not permanently, and this Lease is for aviation or direct aviation support uses,
the Lessee may, upon written notice to the City, either terminate the Lease or
retain the Lease and receive a fifty (50%) percent rent reduction or credit for
that portion of the closure that exceeds sixty days.
3. If the City permanently closes the Airport to aircraft operations and
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a. this Lease is for aviation or direct aviation support uses, the Lessee may
terminate this agreement by written notice to the City; or
b. this Lease is for non-aviation uses, the Lessee may request in writing to
have the Lease terminated. The City will consider the Lessee’s request
in light of the City’s best interest and either terminate the Lease, or deny
the Lessee’s request in writing.
H. DISASTERS: The Lessee or City may cancel this lease upon written notice to the other
party if:
1. the Premises becomes unusable through no fault of either party and
performance under this lease becomes impossible; or
2. the Airport becomes unusable through no fault of either party and the
performance under this lease becomes impossible.
If the Lessee elects in writing that it will continue to operate after notice from City to Lessee
that the Airport has become unusable, the Lessee’s obligations under the Lease will continue,
but City shall be under no obligation to continue to perform.
Causes for termination of the lease under this provision (G) include acts of God, the public
enemy, and the United States.
I. NATIONAL EMERGENCY: If the federal government declares a national emergency,
neither party may hold the other liable for any inability to perform any part of this Lease as a
result of the national emergency.
J. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII,
Lessee shall, on the last day of the term of this Lease (including any extension or renewal
thereof) or upon any earlier termination of this Lease, surrender and deliver up the premises
into the possession and use of City without fraud or delay in good order, condition, and repair,
except for reasonable wear and tear since the last necessary repair, replacement, restoration
or renewal, free and clear of all lettings and occupancies unless expressly permitted by the
City in writing, and free and clear of all liens and encumbrances other than those created by
and for loans to City.
K. OWNERSHIP AND DISPOSITION OF IMPROVEMENTS:
1. Ownership of Permanent Improvements: Permanent improvements on the
Premises, excluding Site Development Materials, constructed, placed, or
purchased by the Lessee remain the Lessee’s property as long as this
Lease remains in effect, including any period of extension or holdover with
the consent of the Lessor.
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2. Disposition of Site Development Materials: The Lessee acknowledges that,
once placed by the Lessee, the removal from the Premises of Site
Development Materials can damage the Premises, adversely affect surface
water drainage patterns, and destabilize adjacent structures. When placed
on the Premises by the Lessee, Site Development Materials, including
building pads, parking areas, driveways, and similar structures:
a. become a part of the realty and the property of the City of Kenai;
b. unless otherwise directed by the Lessor, must be maintained by the
Lessee throughout the term of this Lease, including any extensions and
periods of holdover; and
c. may not be removed by the Lessee without the prior written approval of
the Lessor.
3. Disposition of Personal Property and Permanent Improvements Other Than
Site Development Materials:
a. Unless the Lessor otherwise directs as provided below, when this Lease
expires, terminates, or is cancelled and is neither extended nor followed
by a successive lease, the departing Lessee may do one or more of the
following:
i. remove Lessee-owned Permanent Improvements from the
Premises, remediate any Contamination for which the Lessee
is responsible, and restore the Premises to a clean and neat
physical condition acceptable to the Lessor within 60 days
after the expiration, cancellation, or termination date of this
Lease;
ii. with written approval from the Lessor, sell Lessee-owned
Permanent Improvements to the succeeding lessee, remove
all personal property, remediate, any Contamination for which
the Lessee is responsible and leave the Premises in a clean
and neat physical condition acceptable to the Lessor within 60
days after notice from the Lessor that the Lessor has approved
an application for a lease of the Premises by another person
or such longer period specified in the notice, but in no event
more than 180 days after the expiration, termination, or
cancellation date of this Lease;
iii. elect to have the Lessor sell Lessee-owned Permanent
Improvements at public auction as provided below, remediate
any Contamination for which the Lessee is responsible, and
restore the premises to a clean and neat physical condition
acceptable to the Lessor. If the Lessor sells Permanent
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Improvements under this Paragraph for removal from the
Premises, the departing Lessee's obligation under this
Paragraph continues until the Premises are remediated and
restored to a clean and neat physical condition acceptable to
the Lessor after the improvements have been removed.
b. If the departing Lessee elects to have the Lessor sell Lessee-owned
Permanent Improvements at public auction per this Section, the Lessee
shall, within 30 days after the expiration, cancellation, or termination of
this Lease:
i. submit to the Lessor a written request and authorization to sell
the Permanent Improvements by public auction;
ii. provide to the Lessor an executed conveyance document
transferring clear title to the Permanent Improvements to the
successful bidder at the public auction, along with
authorization to the Lessor, as agent for the Lessee for
purposes of the sale only, to endorse the name of the
successful bidder on the conveyance document upon receipt
of payment of the successful bid price; and
iii. before the date of the public auction, remove all personal
property, remediate any Contamination for which the Lessee
is responsible and leave the Premises in a neat and clean
physical condition acceptable to the Lessor.
c. When selling Lessee-owned Permanent Improvements at public auction
for the departing Lessee, the Lessor will establish the terms and
conditions of the sale. The Lessor shall pay the Lessee any proceeds of
the sale of the Permanent Improvements, less the administrative costs
of the public auction and any financial obligation the Lessee owes to the
Lessor under this Lease. Payment will be made within a reasonable
time after the Lessor completes the sale transaction and receives the
proceeds, but not to exceed 60 days. If all or a portion of the Permanent
Improvements do not sell at public auction, the Lessee will remove those
Permanent Improvements, remediate any Contamination for which the
Lessee is responsible and restore the Premises to a clean and neat
physical condition acceptable to the Lessor within 60 days after the
auction.
d. If the Lessee shows good cause to the Lessor and if it is not inconsistent
with the best interest of the City of Kenai, the Lessor will grant an
extension of time that is sufficient to allow the Lessee to remove or sell
Lessee-owned Permanent Improvements, remediate any
Contamination for which the Lessee is responsible and to restore the
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Premises to a clean and neat physical condition acceptable to the
Lessor.
e. The Lessor will, by written notice, direct the departing Lessee to remove
Lessee-owned Permanent Improvements from the Premises, to
remediate, consistent with applicable law, any Contamination for which
the Lessee is responsible and to restore the Premises to a clean and
neat physical condition acceptable to the Lessor if the Lessor
determines in writing:
i. that the continued presence of the Permanent
Improvements on the Premises are not consistent with any
written Airport program or plan required for compliance
with applicable federal, state, or local law;
ii. that the continued presence of the Permanent Improvements
on the Premises is not in the best interest of the City of
Kenai; or
iii. that the Permanent Improvements present a hazard to public
health or safety.
f. The departing Lessee to whom the Lessor has issued direction under
Paragraph e of this Section shall comply with the Lessor's direction
within 60 days after issuance of the direction and at no cost to the
Lessor. If the departing Lessee shows good cause to the Lessor,
continues to work diligently to comply with Lessor’s direction, and if it is
not inconsistent with the best interest of the City of Kenai, the Lessor will
allow in writing a longer period that is sufficient to allow the Lessee to
comply with the Lessor’s direction. A departing Lessee who fails to
comply with a direction issued by the Lessor under Paragraph e of this
Section, shall, within 30 days of being billed by the Lessor, reimburse
the Lessor for any costs reasonably incurred by the Lessor, including
legal fees and administrative costs, to enforce the Lessor’s direction or
to remove and dispose of unremoved Lessee-owned improvements,
remediate any Contamination for which the Lessee is responsible and
restore the Premises.
g. If the departing Lessee does not timely remove or sell the Lessee-owned
Permanent Improvements on the Premises in accordance with the
requirements of this Section, any remaining Permanent Improvements
and any remaining personal property of the departing Lessee will be
considered permanently abandoned. The Lessor may sell, lease,
demolish, dispose of, remove, or retain the abandoned property for
Airport use as the Lessor determines is in the best interest of the City of
Kenai. The departing Lessee shall, within 30 days after being billed by
the Lessor, reimburse the Lessor for any costs reasonably incurred by
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the Lessor, including legal and administrative costs, to demolish,
remove, dispose, clear title to, or sell the abandoned property and to
remediate and restore the Premises.
h. After the expiration, termination, or cancellation of the Lease, including
any holdover, the departing Lessee loses all right to occupy or use the
premises without the express or implied consent of the Lessor. Except
as the Lessor notifies the departing Lessee otherwise in writing, the
Lessor consents to the departing Lessee's continued use and
occupancy of the Premises to diligently accomplish the requirements of
this Section. Until the departing Lessee relinquishes possession of and
completely vacates the Premises and notifies the Lessor in writing that
it has relinquished and vacated the Premises, the departing Lessee shall
perform the following as if the lease were still in effect,
i. pay rent to the Lessor;
ii. maintain the premises;
iii. provide the Lessor with evidence of each insurance coverage,
if any, required under the Lease; and
iv. cease using the premises other than to diligently accomplish
the requirements of this Section, and to comply with the other
requirements of the Lease.
i. A departing Lessee will not be considered to have relinquished
possession and completely vacated the Premises until
i. the departing Lessee has:
(a) remediated, consistent with applicable law, any
Contamination for which the Lessee is
responsible; and
(b) restored the Premises to a clean and neat
physical condition acceptable to the Lessor; and
ii. either
(a) removed all of the Lessee's Permanent Improvements
and personal property from the premises or sold the
Permanent Improvements and personal property to a
succeeding Lessee under the provisions of this Lease; or
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(b) transferred title to the Lessee's Permanent Improvements
and personal property that remain on the premises to the
Lessor.
ARTICLE XIII
GENERAL COVENANTS
A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands
or facilities without the written consent of the City is prohibited. This prohibition shall not apply
to use of areas designated by the City for specified public uses, such as passenger terminals,
automobile parking areas, and streets.
B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but
not limited to recording costs, shall be paid by Lessee.
C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good
order at the Lessee’s own expense, allowing no damage, waste, nor destruction thereof, nor
removing any material therefrom, without written permission of the City. At the expiration of
the term fixed, or any earlier termination of the Lease, the Lessee will peaceably and quietly
quit and surrender the premises to the City.
D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the
Premises by the Lessee must be compatible with its surroundings and consistent with the uses
authorized under this Lease, as determined by the City. The Lessee must obtain the City’s
written approval before placing fill material, beginning any land development, or constructing
or demolishing any improvements on the Premises, and before beginning any alterations,
modifications, or renovation of existing structures on the Premises. The Lessee must submit
to the City detailed drawings of the proposed development, alteration, modification, or
renovation, together with specifications or any other information the City reasonably requires.
Further, the Lessee will submit to City evidence of the Lessee’s compliance with Federal
Aviation Administration regulation 14 CFR Part 77.
E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS: Lessee
agrees that City may modify this Lease to meet revised requirements for Federal or State
grants, or to conform to the requirements of any revenue bond covenant. However, the
modification shall not act to reduce the rights or privileges granted the Lessee by this Lease,
nor act to cause the Lessee financial loss.
F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and
covenants that the Lessee, upon paying rent and performing other covenants, terms, and
conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and
enjoy the Premises, except that the following shall not construed as a denial of the right of
quiet or peaceable possession:
1. Any inconvenience caused by public works projects in or about the Premises;
and
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2. Any other entries by the City on the Premises reserved or authorized under
other provisions of this Lease.
G. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that
the City shall not be construed or held to be a partner or joint venture of Lessee in the conduct
of the Lessee’s activities or business on the Premises. The relationship between the City and
the Lessee is, and shall at all times remain, strictly that of landlord and tenant, respectively.
H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color,
religion, national origin, ancestry, age, or sex against any patron, employee, applicant for
employment, or other person or group of persons in any manner prohibited by federal or state
law. The Lessee recognizes the right of the City to take any action necessary to enforce this
provision, including actions required pursuant to any federal or state law.
I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will
undertake an affirmative action program to insure that no person will be excluded from
participating in any employment activities offered by the Lessee on the grounds of race, creed,
color, national origin, or sex. No person may be excluded on these grounds from participating
in or receiving the services or benefits of any program or activity covered by subpart E. The
Lessee further agrees that it will require its sub-organization(s) provide assurance to the City
to the same effect that they will also undertake affirmative action programs and require
assurances from their sub-organization(s) as required by 14 CFR, Part 152, subpart E. Tenant
shall use the premises in compliance with all other requirements imposed by or pursuant to
title 49, code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21,
Nondiscrimination in Federally-Assisted programs of the Department of Transportation-
Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulation may be amended.
J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms,
conditions, and agreements of the parties and supersedes any previous understandings or
agreements regarding the Premises whether oral or written. No modification or amendment
of this Lease is effective unless in writing and signed on behalf of the City and the Lessee.
K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce
reasonable rules and regulations governing the Airport, including the Premises. The City shall
not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights
under this Lease, on account of the exercise of the City’s authority reserved under this
provision. Furthermore, the Lessee shall not be entitled to terminate the whole or any portion
of the leasehold estate created under this Lease, by reason of the exercise of the City’s
authority reserved under this provision, unless the exercise thereof so interferes with Lessee's
use and occupancy of the Premises as to constitute a termination, in whole or in part, of this
Lease by operation of law under the laws of the State of Alaska and of the United States made
applicable to the states.
L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not permit
any liens including, but not limited to, mechanics', laborers', or materialmen's liens obtainable
or available under the then existing laws, to stand against the Premises or improvements on
the Premises for any labor or material furnished to Lessee or claimed to have been furnished
to Lessee or to the Lessee's agents, contractors, or sub-lessees, in connection with work of
Page 79 of 117
LEASE OF AIRPORT LANDS Page 22 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
any character performed or claimed to have been performed on the Premises or improvements
by or at the direction or sufferance of Lessee. Provided, however, the Lessee shall have the
right to provide a bond as contemplated by Alaska law and contest the validity or amount of
any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Lessee
will immediately pay any judgment rendered with all proper costs and charges and shall have
such lien released or judgment satisfied at Lessee's own expense.
M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned
and taken for a public or a quasi-public use, then upon payment of any award or compensation
arising from the condemnation or taking, the City and the Lessee shall make a good faith effort
to agree upon
1. the division of the proceeds;
2. the abatement in rent payable during the term or any extension of the term of
this Lease; and
3. other adjustments as the parties may agree upon as being just and equitable
under all the circumstances.
If, within thirty days after the award has been paid into Court, the City and Lessee are unable
to agree upon what division, abatement in rent, and other adjustments as are just and
equitable, the dispute shall be determined by arbitration.
N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the
benefit of the respective successors and assigns of the parties hereto, subject to such specific
limitations on assignment as are provided for in this Lease.
O. NOTICES:
1. Any notices required by this Lease must be in writing and must be delivered
personally or mailed by certified or registered mail in a prepaid envelope. A
mailed notice
a. must be addressed to the respective party at the address written on the
first page of this Lease or to the latest address designated in accordance
with (2) of this Provision (O); and
b. shall be deemed delivered on the date it is deposited in a U.S. general
or branch post office.
2. The City or the Lessee may, from time to time, designate a new address at
which they will receive notices by providing the other party with written notice at
least 15 days prior to the effective date of the change. An address change
notice must be delivered according to the procedure set out in (1) of this
Provision (O).
Page 80 of 117
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Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any
breach by the Lessee, the City shall retain any unused balance of the rental payment last made
by the Lessee City as partial or total liquidated damages for the breach.
Q. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and
take all necessary action to suppress destructive or uncontrolled fires and comply with all laws,
regulations, and rules promulgated and enforced by the City for fire protection on the Airport.
R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral,
or in any deposit of stone or gravel valuable for extraction or utilization is included in the
Premises or in the rights granted by this lease. The Lessee shall not sell or remove from the
Premises for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material
valuable for building or commercial purposes.
S. APPROVAL OF OTHER AUTHORITIES: The granting of this lease by the City does
not relieve the Lessee of the responsibility to obtain any license or permit as may be required
by federal, state, or local law.
T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the
Lessee, or a duly authorized representative of Lessee, and an authorized representative of the
City.
U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and
do not necessarily define, limit, describe, or construe the contents of any provision.
V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property
available for private use, while at all times protecting the public interest to the greatest extent
possible. Following the rule that transfers of interest in public property are to be strictly
construed in favor of the public property landlord, all rights granted to the Lessee under this
Lease will be strictly construed, and all rights of the City and the protections of the public
interest will be liberally construed.
W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has
read this Lease and fully understands its terms, that the Lessee has been fully advised or has
had the opportunity of advice by separate legal counsel, and voluntarily executes this Lease.
Lessee also acknowledges and agrees that the rule of interpretation under which a document
is construed against the drafter will not apply to this Lease.
X. APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will not
be unreasonably withheld. The Lessor’s approval does not waive the Lessee's legal
responsibility or liability to comply with all applicable federal and state laws and regulations.
ARTICLE XIV
SURVEY, IMPROVEMENTS AND PERFORMANCE BOND
A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish
the physical location of the boundaries of the Premises prior to beginning any construction
thereon, including clearing grubbing, back-filling and environmental sampling. Any survey of
Page 81 of 117
LEASE OF AIRPORT LANDS Page 24 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
the Premises shall be performed by a Land Surveyor registered in the State of Alaska. The
Lessee shall furnish the City with a copy of the plat of any survey performed on the Premises
by, or on behalf of, the Lessee.
B. IMPROVEMENTS:
1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to
complete land development and construction of Permanent Improvements
including NON-APPLICABLE by no later than NON-APPLICABLE, with an
aggregate cost of at least $ NON-APPLICABLE, excluding financing costs. In
addition to the as-built drawings required by this Lease, the Lessee must submit
to the City written evidence that the Lessee has completed the land
development and constructed improvements on the Premises with an
aggregate cost or investment of not less than $ NON-APPLICABLE.
The evidence of cost must be submitted to the City within sixty days of the
completion of the development and improvements, but by no later than NON-
APPLICABLE.
a. Costs considered toward the aggregate cost of permanent
improvements include building construction, design, labor, materials,
materials shipping, permits, equipment, soil testing, environmental
baseline report, and environmental assessment directly related to the
construction; premises and as-built surveys; site preparation, including
excavation, geotextile fabric, filling, grading, fill material, gravel, and
pavement, remediation of environmental contamination (unless Lessee
caused or Materially Contributed To the Contamination); and utility
connection costs.
b. The cost of Permanent Improvements excludes:
1. work performed by the City and not reimbursed by the Lessee;
and
2. work performed by the Lessee and reimbursed by the City.
2. NON-APPLICABLE FAILURE TO COMPLETE IMPROVEMENTS: If the
Lessee fails to complete the required construction within the time allowed under
(b)(1) of this Article, including any extensions granted, the City will execute
against and the Lessee will forfeit, any bond or other guarantee given by the
Lessee and, as applicable, City will:
a. initiate cancellation of the lease; or
b. reduce the term of the lease to a period that is consistent with the portion
of the required construction timely completed.
Page 82 of 117
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Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
3. APPEARANCE: When completed, all improvements on the Premises must be
neat, presentable, and compatible with the authorized use of the Premises
under this Lease, as determined by the City.
4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City’s written
approval before beginning any land development, construction or demolition of
any improvements on the Premises, or before beginning any alterations,
modifications, or renovation of existing structures on the Premises. The Lessee
must submit to the City detailed drawings of the proposed development,
alteration, modification, or renovation. Further, the Lessee will submit to City
evidence of the Lessee’s compliance with the FAA regulation 14 CFR Part 77.
5. CITY APPROVAL WITHHELD: The City’s approval of any construction,
alteration, modification, or renovation will not be withheld unless
a. the Lessee fails to demonstrate adequate financial resources to
complete the project;
b. the project plans, specifications, and agency approvals are incomplete;
c. the proposed project would result in a violation of an applicable
ordinance, regulation, or law;
d. the proposed project would interfere with or is incompatible with the
safety, security, maintenance, or operation of the airport;
e. the proposed project is inconsistent with the Airport Master Plan;
f. the proposed project is inconsistent with the terms of the lease, zoning
ordinances, or the City’s Comprehensive Plan;
g. the project plans do not make sufficient provision for drainage, aircraft,
vehicle, and equipment parking, or for snow storage; or
h. the proposed project does not conform to generally recognized
engineering principles or applicable fire or building codes.
6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises,
Lessee will deliver to City a written scope of work that, at a minimum, lists the
structure(s) that are to be demolished and the timeframe for demolition and
removal of the debris from the Airport. City will review Lessee’s scope for
demolition and issue Lessee written approval for the work to be done.
7. BUILDING SETBACK: No building or other permanent structure may be
constructed or placed within twenty feet of any lot of the Premises without City’s
prior written approval. In addition, no building or other permanent structure may
Page 83 of 117
LEASE OF AIRPORT LANDS Page 26 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
be constructed or placed within twenty feet of any boundary line of the Premises
which fronts on a landing strip, taxiway, or apron.
8. AS-BUILT DRAWINGS: Within sixty days after completion of construction or
placement of improvements upon the Premises, the Lessee will deliver to the
City a copy of an as-built drawing, acceptable to the City, showing the location
and dimensions of the improvements, giving distances to all Premises’
boundaries. If the Lessee constructs underground improvements, the Lessee
will appropriately mark the surface of the land with adequate surface markers.
The type, quantity, and distance between such markers will be subject to
approval of the City.
9. AIRPORT SECURITY FENCING: If any construction by the Lessee requires a
realignment or alteration of an existing security fence on the Premises or
boundary of the Premises, the Lessee agrees to realign or alter the fence in a
manner approved in writing by the Airport Manager. Anytime the fence must
be breached to allow the Lessee to complete improvement construction or
fence modifications, the Lessee shall, at the Lessee’s sole expense place
temporary barriers to maintain the security of the Airport, as determined by the
Airport Manager. If damage occurs to a security fence on the Premises or
boundary of the Premises in connection with the Lessee’s use or occupation of
the Premises, the Lessee shall promptly repair the fence to the satisfaction of
the Airport Manager.
10. DAMAGE TO IMPROVEMENTS: If Lessee’s improvements on the Premises
are damaged or destroyed, Lessee will cause the improvements to be repaired
or rebuilt, and restored to normal function within two years following the damage
or destruction. If the Lessee fails to timely rebuild or restore the improvements,
the City may, at its sole discretion, either reduce the term of this Lease
commensurate with the estimated value of the Lessee’s remaining, fully
functional improvements on the Premises, or cancel this Lease.
11. DAMAGE NEAR EXPIRATION: If Lessee’s improvements are damaged to the
extent that more than 50% of the space is unusable and the damage occurs
within five years of the expiration of the term of this Lease, Lessee may remove
the damaged improvements, restore the Premises and terminate this Lease.
C. PERFORMANCE BOND (Optional): Prior to beginning the construction of permanent
improvements required under (1) of this Article, the Lessee shall submit to the City a
performance bond, deposit, or other security in the amount of $ NON-APPLICABLE. The form
of the bond or other security shall be subject to the City’s approval.
D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this
Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises
into the possession and use of City without fraud or delay in good order, condition, and repair,
except for reasonable wear and tear since the last necessary repair, replacement, restoration
or renewal, free and clear of all lettings and occupancies unless expressly permitted by the
City in writing, and free and clear of all liens and encumbrances other than those created by
Page 84 of 117
LEASE OF AIRPORT LANDS Page 27 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
and for loans to City. Upon the end of the term of this Lease, including any extension or
renewal, or any earlier termination thereof, title to the buildings, improvements and building
equipment shall automatically vest in City without requirement of any deed, conveyance, or bill
of sale thereon. However, if City should require any such document in confirmation hereof,
Lessee shall execute, acknowledge, and deliver the same and shall pay any charge, tax, and
fee asserted or imposed by any and all governmental unites in connection herewith.
E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three
days prior to commencing any construction project valued in excess of $1,000.00 on the
Premises. The Lessee agrees to assist in the posting of a notice of non-responsibility and
maintenance of the notice on the Premises during construction. Lessee agrees that in the
event the Lessee fails to notify the City as required by this Provision (f), the Lessee shall
indemnify the City against any materialmen's liens as defined in AS 34.35.050 which arise as
a result of construction on the premises.
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day
and year stated in the individual acknowledgments below.
LESSEE: LESSOR:
State of Alaska, Division of Forestry City of Kenai
By: By:
RASHAAD ESTERS Date PAUL OSTRANDER Date
State of Alaska Contracting Officer City Manager
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _________, 2020, Rashaad Esters,
Contracting Officer with the State of Alaska, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and acknowledged the voluntary
and authorized execution of the foregoing instrument.
Notary Public for Alaska
My Commission Expires: _______________
STATE OF ALASKA )
) ss.
Page 85 of 117
LEASE OF AIRPORT LANDS Page 28 of 28
Division of Forestry – Lot 4, FBO Subd. No. 7 Initials:____
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _________, 2020, Paul Ostrander, City
Manager of the City of Kenai, Alaska, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and acknowledged the voluntary
and authorized execution of the foregoing instrument on behalf of said City.
Notary Public for Alaska
My Commission Expires:
ATTEST:
____________________________ After Recording, Return to:
Jamie Heinz, City Clerk City of Kenai
210 Fidalgo Ave.
SEAL: Kenai, AK 99611
Approved as to Lease Form:
_________________________
Scott Bloom, City Attorney
Page 86 of 117
Page 87 of 117
Leased Parcel to ADNR-Div. of Forestry525 N. Willow St.Parcel 04336040Lot 4, FBO Subd. No. 7
N WILLOW ST.Data Source: Kenai Peninsula Borough. Data is for graphic representation only. Imagery may not match true parcel boundaries.
Date: 4/29/20
0 5025 Feet
LEGEND
Parcel 04336040
Page 88 of 117
MEMORANDUM
TO: Airport Commission
FROM: Mary Bondurant, Airport Manager
DATE: May 7, 2020
SUBJECT: Fiscal Year 2021-2025 Capital Improvement Plan
The Kenai City Council conducted a joint work session with Commissions and Committees on
Wednesday, February 19, 2020 to provide an annual overview and discuss the draft Capital
Improvement Plan for the City.
Please review the Airport section of the Capital Improvement Plan for recommendation at our
May 14 meeting.
Thank you and please let me know if you have any questions.
Attachment
Page 89 of 117
AIRPORT FUND
4 | AIRPORT FUND
CITY OF KENAI
CAPITAL IMPROVEMENT PLAN
FY2021 - 2025
FY2021 Project
No.DESCRIPTIONCOST
AIRFIELD SAND AND
EQUIPMENT STORAGE
BUILDING*
RUNWAY PROTECTION
ZONE LAND ACQUISITION*
WHEELED LOADER
REPLACEMENT*
AIRPORT OPERATIONS DDC
CONTROLS CONVERSION
TRACTOR/MOWER
REPLACEMENT
01
02
03
04
06
$1,734,319 Construct an approx. 6,400 sq ft sand and
storage building at the Kenai Municipal
Airport
FY2022 Project
No.COST DESCRIPTION
AIRFIELD PAINTING AND
CRACK SEALING DESIGN*
TERMINAL ROAD AND
PARKING LOT
IMPROVEMENTS*
$1,250,000
$100,000
$250,000
FY2023
07
08
09
Design airfield painting and crack sealing
project to current standards
Acquisition of property within runway
protection zone for obstruction removal
Replacement of aging equipment with new
wheeled loader
AIRFIELD PAINTING AND
CRACK SEALING*
APRON AND WILLOW
STREET EXTENSION*
DESCRIPTIONCOST
$50,000
$2,443,000
$1,700,000
Project
No.
Airfield painting and crack sealing to current
standards
Extend apron taxiway for lease lots and road
and utilities on Willow Street
Rehabilitate access road, parking lot
expansion, and lighting at the terminal
*Projects marked with an asterisk denote project is dependent on grant funding
$80,000 Consolidate existing controls system
$341,270 AIRPORT FUND
$1,954,049 GRANT/OTHER$2,295,319
$109,375 AIRPORT FUND
$1,640,625 GRANT/OTHER $1,750,000
$3,693,000 $1,299,625 AIRPORT FUND
$2,393,375 GRANT/OTHER
05 $131,000 Replacement of aging equipment with new
tractor/mower
Page 90 of 117
AIRPORT FUND
5 | AIRPORT FUND
CITY OF KENAI
CAPITAL IMPROVEMENT PLAN
FY2021 - 2025
$50,000
FY2024
10
11
Rehabilitate taxiways K and C to current
standards
RUNWAY
RECONSTRUCTION*
REHABILITATE TAXIWAYS
A, C, K, AND L*
DESCRIPTIONProject
No.
Reconstruction of Runway 2L-20R
COST
*Projects marked with an asterisk denote project is dependent on grant funding
FY2025 DESCRIPTIONCOSTProject
No.
TERMINAL ELEVATOR
MAJOR MAINTENANCE
ARFT FACILITY ELEVATOR
MAJOR MAINTENANCE
Major maintenance on existing elevator at the
Airport Terminal
Major maintenance on existing Alaska
Regional Fire Training Facility elevator
$50,000
12
13
$15,000,000
$3,500,000
$100,000 AIRPORT FUND
$0 GRANT/OTHER $100,000
$1,156,250 AIRPORT FUND
$17,343,750 GRANT/OTHER$18,500,000
Page 91 of 117
AIRPORT FUND PROJECTS
YEAR: 2021 2022 2023 2024 2025
COST: $2,000,000
AIRFIELD SAND AND EQUIPMENT STORAGE BUILDING 01
Department: Airport
Total Project Cost: $2,000,000
Project Phased: No
Project Type: Building
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Significant Decrease
Details:This project will construct an approximately 6,400 square-foot sand and snow removal
equipment storage building to allow the Airport to screen and stockpile sand for winter
usage and store sand and snow removal equipment. A sand and snow removal equipment storage building will lengthen the useful life of the equipment.
6 | AIRPORT FUND
RUNWAY PROTECTION ZONE LAND ACQUISITION 02
Department: Airport
Total Project Cost: $100,000
Project Phased: No
Project Type: Land Improvement
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Minimal or No Impact
YEAR: 2021 2022 2023 2024 2025
COST: $100,000
Details:This project purchases two lots that have been identified on the south end of the apron and within the Runway Protection Zone (RPZ). Land for RPZ and obstruction control is
FAA eligible, and these lots are designated as “Land for obstruction removal” on the Airport Layout Plan.
Page 92 of 117
AIRPORT FUND PROJECTS
AIRPORT OPERATIONS DDC CONTROLS CONVERSION 04
7 | AIRPORT FUND
Department: Airport
Total Project Cost: $80,000
Project Phased: No
Project Type: Building Improvement
Funding Source(s): Airport Fund
Potential Grant Identified: None
Operating Budget Impact:
Slight Decrease
YEAR: 2021 2022 2023 2024 2025
COST: $80,000
Details:This project will consolidate the existing Airport Operations Facility controls systems into one system controlled by Meridian. This work will allow for easier future maintenance of
the facility's heating, ventilation, and air conditioning (HVAC) system, making diagnosis
of equipment issues much more manageable.
YEAR: 2021 2022 2023 2024 2025
COST: $250,000
WHEELED LOADER REPLACEMENT 03
Department: Airport
Total Project Cost: $250,000
Project Phased: No
Project Type: Equipment
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Minimal or No Impact
Details:
This project would replace old and aging equipment with new efficient snow removal
equipment, consisting of a loader with attachments.
Page 93 of 117
AIRPORT FUND PROJECTS
8 | AIRPORT FUND
YEAR: 2021 2022 2023 2024 2025
COST: $131,000
TRACTOR/MOWER REPLACEMENT 05
Department: Airport
Total Project Cost: $131,000
Project Phased: No
Project Type: Equipment
Funding Source(s): Airport Fund
Potential Grant Identified: None
Operating Budget Impact: Slight Decrease
Details:This project would replace a 17-year-old tractor/mower with a failing transmission with a new efficient tractor/mower, consisting of a tractor with mower attachment.
YEAR: 2021 2022 2023 2024 2025
COST: $50,000
AIRFIELD PAINTING AND CRACKSEALING DESIGN 06
Department: Airport
Total Project Cost: $50,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Minimal/No Impact
Details:This project consists of project design for normal airfield marking and asphalt
preservation to meet the Code of Federal Regulations (CFR) 139 inspections and a
pavement maintenance program, a grant assurance for a federally obligated airport to protect the life of the asphalt.
Page 94 of 117
AIRPORT FUND PROJECTS
9 | AIRPORT FUND
AIRFIELD PAINTING AND CRACKSEALING 08
Department: Airport
Total Project Cost: $1,250,000
Project Phased: Yes
Project Type: Infrastructure
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Slight Decrease
YEAR: 2021 2022 2023 2024 2025
COST: $1,250,000
Details:This project consists of normal airfield marking and asphalt preservation to meet the
Code of Federal Regulations (CFR) 139 inspections and a pavement maintenance program, which is a grant assurance for a federally obligated airport to protect the life of the asphalt.
TERMINAL ROAD AND PARKING LOT IMPROVEMENTS 07
Department: Airport
Total Project Cost: $1,700,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Slight Increase
YEAR: 2021 2022 2023 2024 2025
COST: $1,700,000
Details:
This project rehabilitates the access road, provides for parking lot expansion to the south, and installs new lighting poles at the Kenai Municipal Airport Terminal parking lot.
Page 95 of 117
AIRPORT FUND PROJECTS
YEAR: 2021 2022 2023 2024 2025
COST: $50,000
TERMINAL ELEVATOR MAJOR MAINTENANCE 10
Department: Airport
Total Project Cost: $50,000
Project Phased: No
Project Type: Building Improvement
Funding Source(s): Airport Fund
Potential Grant Identified: None
Operating Budget Impact:
Minimal or No Impact
Details:Provide major maintenance on the existing Airport Terminal Elevator. This maintenance will replace 30-plus-year-old components for safety reasons while providing minor cosmetic improvements.
10 | AIRPORT FUND
YEAR: 2021 2022 2023 2024 2025
COST: $2,443,000
APRON AND WILLOW STREET EXTENSION 09
Department: Airport
Total Project Cost: $2,443,000
Project Phased: No
Project Type: Land Improvement/ Infrastructure
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Slight Increase
Details:This project would extend the apron taxiway 600 feet for lease lots and Willow Street Extension (road and utilities) as well as provide for lease lot development (five acres). Lease lot development is assumed to be 100% City-funded.
Page 96 of 117
AIRPORT FUND PROJECTS
11 | AIRPORT FUND
RUNWAY RECONSTRUCTION 12
Department: Airport
Total Project Cost: $15,000,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Slight Decrease
YEAR: 2021 2022 2023 2024 2025
COST: $15,000,000
Details:This project removes and replaces existing asphalt and crushed rock base. Four inches of AP subbase will be removed, with the remaining 10 inches of subbase compacted to 100% followed by a new course C crushed base and 4 inches of asphalt laid in two lifts. This
project is necessary due to excessive reflective cracking and reduced PCI values. The top lift will be grooved, and the new section will be 17-18 inches thick.
ARFT ELEVATOR MAJOR MAINTENANCE 11
Department: Airport
Total Project Cost: $50,000
Project Phased: No
Project Type: Building Improvement
Funding Source(s): Airport Fund
Potential Grant Identified: None
Operating Budget Impact:
Minimal or No Impact
YEAR: 2021 2022 2023 2024 2025
COST: $50,000
Details:
Provide major maintenance on the existing Alaska Regional Fire Training Facility's elevator. The facility is currently primarily occupied by Beacon. The facility was constructed in 1997, and while the elevator sees relatively minimal use, this project will provide for the continued safe operation of the unit.
Page 97 of 117
AIRPORT FUND PROJECTS
12 | AIRPORT FUND
REHABILITATE TAXIWAYS A, C, K, AND L 13
Department: Airport
Total Project Cost: $3,500,000
Project Phased: No
Project Type: Infrastructure
Funding Source(s): Grant Dependent
Potential Grant Identified: Federal Aviation
Administration
Operating Budget Impact: Slight Decrease
YEAR: 2021 2022 2023 2024 2025
COST: $3,500,000
Details:
This project will widen shoulders and safety areas between taxiways K and C to current standards, upgrade lighting and signage to watertight standards, in-pavement lights for D and E, and reconstruct Taxiway A asphalt. The project will reduce crack sealing maintenance costs and bring the oldest pavement on the Airport up to the recommended
Pavement Condition Index.
Page 98 of 117
Kenai City Council - Regular Meeting Page 1 of 3
April 01, 2020
Kenai City Council - Regular Meeting
April 01, 2020 – 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
*Telephonic/Virtual Information Below*
www.kenai.city
ACTION AGENDA
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to three (3) minutes) per speaker;
thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-controversial
by the council and will be approved by one motion. There will be no separate discussion
of these items unless a council member so requests, in which case the item will be
removed from the consent agenda and considered in its normal sequence on the agenda
as part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS
(Public comment limited to ten (10) minutes per speaker)
C. UNSCHEDULED PUBLIC COMMENTS
(Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. ENACTED UNANIMOUSLY. Ordinance No. 3113-2020 - Increasing Estimated
Revenues and Appropriations in the Terminal Improvements Capital Fund, and
Authorizing an Increase to the Design Agreement with Wince Corthell Bryson.
(Administration)
2. ADOPTED UNANIMOUSLY. Resolution No. 2020-17 - Authorizing the Use of
Funds Remaining After Completion of the Kenai Senior Center Solarium, Roof
Repair, Dining Room and Administrative Office Carpet Replacement Projects for a
New Project to Create an Alternate Entrance into the Center's Computer Lab.
(Administration)
E. MINUTES – None.
F. UNFINISHED BUSINESS
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April 01, 2020
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
Over $15,000. (Administration)
3. APPROVED BY THE CONSENT AGENDA. *Action/Approval - Non-Objection to
the Renewal of the Liquor Licenses for George's Nightclub, Uptown Motel/Back
Door Lounge, Uptown Motel/Louie's, and Kenai Elks Lodge #2425. (City Clerk)
4. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET 04/15/2020.
*Ordinance No. 3116-2020 - Increasing Estimated Revenues and Appropriations in
the Airport Special Revenue and Airport Improvements Capital Project Funds and
Authorizing a Professional Services Agreement for the Design of the Airport
Operations Sand Storage Facility Project. (Administration)
5. Discussion - City Response to COVID-19. (Administration)
H. COMMISSION / COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
I. REPORT OF THE MAYOR
J. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
K. ADDITIONAL PUBLIC COMMENT
1. Citizens Comments (Public comment limited to five (5) minutes per speaker)
2. Council Comments
Page 100 of 117
Kenai City Council - Regular Meeting Page 3 of 3
April 01, 2020
L. EXECUTIVE SESSION
M. PENDING ITEMS
N. ADJOURNMENT
O. INFORMATION ITEMS
1. Purchase Orders Between $2,500 and $15,000.
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.
Join Zoom Meeting: https://zoom.us/j/537517209
Meeting ID: 537 517 209
Dial by your location: (253) 215-8782
(Or, find your local number at https://zoom.us/u/aYoaJf1wu)
Meeting ID: 537 517 209
Page 101 of 117
Kenai City Council - Regular Meeting Page 1 of 3
April 15, 2020
Kenai City Council - Regular Meeting
April 15, 2020 ꟷ 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
www.kenai.city
ACTION AGENDA
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. Tim Dillon, Kenai Peninsula Economic Development District - COVID-19 Economic
Impact Survey.
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. 3116-2020 - Increasing
Estimated Revenues and Appropriations in the Airport Special Revenue and Airport
Improvements Capital Project Funds and Authorizing a Professional Services Agreement
for the Design of the Airport Operations Sand Storage Facility Project. (Administration)
• Substitute Ordinance No. 3116-2020
2. ADOPTED UNANIMOUSLY. Resolution No. 2020-18 - Awarding a Contract to Provide a
Cybersecurity Audit. (Administration)
3. ADOPTED UNANIMOUSLY AS AMENDED. Resolution No. 2020-19 - Recognizing the
Successful Efforts of the State Leadership and Alaskan Residents to Slow the Spread of
COVID-19 and Encouraging T=the Governor to Rescind or Modify COVID-19 Health
Mandates 003: State Wide Closure Restaurants, Bars, Entertainment, 009: Personal Care
Services and Gatherings, and 012: Intrastate Travel, as Soon as Reasonably Practical to
Allow Alaskan Businesses to Resume Operations, Employees to Return to Work and
Page 102 of 117
Kenai City Council - Regular Meeting Page 2 of 3
April 15, 2020
Residents to Receive Services in a Safe Manner Observing Social Distancing
Requirements. (Council Member Peterkin)
4. ADOPTED UNANIMOUSLY. Resolution No. 2020-20 - Supporting H.R. 6467-Coronavirus
Community Relief Act, Providing Enhanced Coronavirus Relief Funds to Units of Local
Governments with a Population of 500,000 or Less. (Mayor Gabriel)
E. MINUTES
1. APPROVED UNANIMOUSLY BY THE CONSENT AGENDA. *Regular Meeting of March
18, 2020. (City Clerk)
2. APPROVED UNANIMOUSLY BY THE CONSENT AGENDA. *Special Meeting of March
24, 2020. (City Clerk)
3. APPROVED UNANIMOUSLY BY THE CONSENT AGENDA. *Regular Meeting of April 1,
2020. (City Clerk)
F. UNFINISHED BUSINESS
G. NEW BUSINESS
1. APPROVED UNANIMOUSLY BY THE CONSENT AGENDA. *Action/Approval - Bills to
be Ratified. (Administration)
2. APPROVED UNANIMOUSLY BY THE CONSENT AGENDA. *Action/Approval -
Purchase Orders Over $15,000. (Administration)
3. INTRODUCED BY THE CONSENT AGENDA – PUBLIC HEARING SET FOR 05-06-2020.
*Ordinance No. 3117-2020 - Appropriating Funds in the Airport Fund, Accepting a Grant
from the Federal Aviation Administration and Appropriating Funds in the Airport Equipment
Capital Project Fund for the Purchase of Snow Removal Equipment (SRE) – Loader With
Attachments. (Administration)
4. INTRODUCED BY THE CONSENT AGENDA – PUBLIC HEARING SET FOR 05-06-2020.
*Ordinance No. 3118-2020 - Increasing Estimated Revenues and Appropriations By
$1,287.44 in the General Fund – Police Department for State Traffic Grant Overtime
Expenditures. (Administration)
5. INTRODUCED BY THE CONSENT AGENDA – PUBLIC HEARING SET FOR 05-06-2020.
*Ordinance No. 3119-2020 - Increasing General Fund Estimated Revenues and
Appropriations by $26,542 in the General Fund Parks, Recreation and Beautification
Department for an Increase of a Grant from the United States Environmental Protection
Agency Passed Through the State of Alaska Department of Environmental Conservation
for Bacteria Level Monitoring on the City’s Beaches from March 1, 2020 Through June 30,
2020. (Administration)
6. Discussion – Schedule a Work Session to Review and Discuss the Fiscal Year 2021 City
of Kenai Budget. (Mayor Gabriel)
7. Discussion - City Response to COVID-19. (Administration)
Page 103 of 117
Kenai City Council - Regular Meeting Page 3 of 3
April 15, 2020
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. Review and Discussion of the City Manager’s Evaluation which may be a Subject that Tends
to Prejudice the Reputation and Character of the City Manager [AS 44.62.310(C)(2)].
M. PENDING ITEMS
N. ADJOURNMENT
O. INFORMATION ITEMS
1. Purchase Orders Between $2,500 and $15,000.
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 104 of 117
Kenai City Council - Regular Meeting Page 1 of 4
May 06, 2020
Kenai City Council - Regular Meeting
May 06, 2020 ꟷ 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
*Telephonic/Virtual Information on Page 4*
www.kenai.city
Action Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda (Public comment limited to three (3) minutes) per speaker;
thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non-controversial by the
council and will be approved by one motion. There will be no separate discussion of these items
unless a council member so requests, in which case the item will be removed from the consent
agenda and considered in its normal sequence on the agenda as part of the General Orders.
B. SCHEDULED PUBLIC COMMENTS
(Public comment limited to ten (10) minutes per speaker)
C. UNSCHEDULED PUBLIC COMMENTS
(Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
D. PUBLIC HEARINGS
1. POSTPONED TO 05/20/2020. Ordinance No. 3117-2020 - Appropriating Funds in the
Airport Fund, Accepting a Grant From the Federal Aviation Administration and Appropriating
Funds in the Airport Equipment Capital Project Fund for the Purchase of Snow Removal
Equipment (SRE) – Loader With Attachments. (Administration)
2. ENACTED UNANIMOUSLY. Ordinance No. 3118-2020 - Increasing Estimated Revenues
and Appropriations by $1,287.44 in the General Fund – Police Department for State Traffic
Grant Overtime Expenditures. (Administration)
3. ENACTED UNANIMOUSLY. Ordinance No. 3119-2020 - Increasing General Fund
Estimated Revenues and Appropriations by $26,542 in the General Fund Parks, Recreation
and Beautification Department for an Increase of a Grant from the United States
Environmental Protection Agency Passed Through the State of Alaska Department of
Environmental Conservation for Bacteria Level Monitoring on the City’s Beaches from
March 1, 2020 Through June 30, 2020. (Administration)
Page 105 of 117
Kenai City Council - Regular Meeting Page 2 of 4
May 06, 2020
4. ENACTED UNANIMOUSLY. Ordinance No. 3123-2020 - Accepting and Appropriating
Funds in the Airport Fund, and Accepting a Grant From the Federal Aviation Administration
for a CARES Act Grant. (Administration)
1. Motion for Introduction
2. Motion for Second Reading (Requires a Unanimous Vote)
3. Motion for Adoption (Requires Five Affirmative Votes)
5. ENACTED UNANIMOUSLY. Ordinance No. 3126-2020 - Accepting and Appropriating
Federal CARES Act Funding Passed Through the State of Alaska for Expenditures in
Response to the COVID-19 Pandemic, Waiving the $5,000 Limitation in KMC 7.25.020 (A)
on These Funds to Allow the City Manager to Allocate the Funds to the Proper Account as
Needs Arise and Declaring an Emergency. (Administration)
1. Motion for Introduction
2. Motion for Second Reading (Requires a Unanimous Vote)
3. Motion for Adoption (Requires Five Affirmative Votes)
6. ADOPTED UNANIMOUSLY. Resolution No. 2020-21 - Authorizing a Budget Transfer in
the General Fund City Clerk Department for a Software Add-On. (City Clerk)
7. ADOPTED UNANIMOUSLY. Resolution No. 2020-22 - Authorizing the City of Kenai to
Issue General Obligation Refunding Bonds in the Principal Amount of Not to Exceed the
Sum of $1,250,000 to Refund Certain Outstanding General Obligation Bonds of the City,
Fixing Certain Details of Such Bonds and Authorizing Their Sale. (Administration)
8. ADOPTED UNANIMOUSLY. Resolution No. 2020-23 - Approving an Exception to the
Collections Policy for Delinquent Ambulance Bills to Eliminate Out of Pocket Collection for
COVID-19 Treatment/Transport to Comply with Federal Funding Requirements. (Legal)
9. ADOPTED UNANIMOUSLY. Resolution No. 2020-24 - Selecting the Successful Firm for
the Professional Environmental / Civil Engineering & Construction Administration Services
for Kenai Municipal Water, Sewer and Wastewater Capital Improvement Projects Request
for Proposals. (Administration)
E. MINUTES
1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of April 15, 2020. (City
Clerk)
2. APPROVED BY THE CONSENT AGENDA. *Special Meeting of April 16, 2020. (City
Clerk)
3. APPROVED BY THE CONSENT AGENDA. *Work Session Summary of April 25, 2020.
(City Clerk)
F. UNFINISHED BUSINESS
G. NEW BUSINESS
1. APPROVED BY THE CONSENT AGENDA. *Action/Approval - Bills to be Ratified.
(Administration)
Page 106 of 117
Kenai City Council - Regular Meeting Page 3 of 4
May 06, 2020
2. APPROVED BY THE CONSENT AGENDA. *Action/Approval - Purchase Orders Over
$15,000. (Administration)
3. INTRODUCED BY THE CONSENT AGENDA; PUBLIC HEARING SET FOR 05/20/2020.
*Ordinance No. 3120-2020 - Accepting $26,545.90 in Asset Forfeiture Sharing Funds and
Appropriating those Funds into the Police Machinery & Equipment and Small Tools
Accounts for the Purpose of Purchasing Law Enforcement Equipment. (Administration)
4. INTRODUCED BY THE CONSENT AGENDA; PUBLIC HEARING SET FOR 05/20/2020.
*Ordinance No. 3121-2020 - Adopting the Annual Budget for the Fiscal Year Commencing
July 1, 2020 and Ending June 30, 2021, Amending the Salary Schedule in Kenai Municipal
Code Chapter 23.55- Pay Plan and Amending Employee Classifications in Kenai Municipal
Code Chapter 23.50. (Administration)
5. INTRODUCED BY THE CONSENT AGENDA; PUBLIC HEARING SET FOR 05/20/2020.
*Ordinance No. 3122-2020 - Accepting and Appropriating a Volunteer Fire Assistance
(VFA) Grant From the United States Department of Agriculture Forest Service Passed
Through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting
Equipment. (Administration)
6. INTRODUCED BY THE CONSENT AGENDA; PUBLIC HEARING SET FOR 05/20/2020.
*Ordinance No. 3124-2020 - Accepting and Appropriating a Meals on Wheels COVID-19
Response Fund Grant From Meals on Wheels America for Kenai Senior Center
Expenditures in Support of COVID-19 Pandemic Response. (Administration)
7. INTRODUCED BY THE CONSENT AGENDA; PUBLIC HEARING SET FOR 05/20/2020.
*Ordinance No. 3125-2020 - Accepting and Appropriating Additional Nutrition,
Transportation and Support Services Grant Funds From the United States Department of
Health and Human Services Passed Through the State of Alaska Department of Health and
Social Services for Kenai Senior Center Expenditures in Support of COVID-19 Pandemic
Response. (Administration)
8. Discussion – Election Method. (Mayor Gabriel)
9. Discussion - City Response to COVID-19. (Administration)
H. COMMISSION / COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Committee
7. Mini-Grant Steering Committee
Page 107 of 117
Kenai City Council - Regular Meeting Page 4 of 4
May 06, 2020
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
M. PENDING ITEMS
N. ADJOURNMENT
O. INFORMATION ITEMS
1. Purchase Orders Between $2,500 and $15,000.
2. Cook Inlet Regional Citizens Advisory Council Board of Directors Update
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.
Join Zoom Meeting: https://us02web.zoom.us/j/82022095414
Meeting ID: 820 2209 5414
Password: 976726
Dial by your location: (253) 215 8782 -or- (301) 715 8592
Meeting ID: 820 2209 5414
Password: 976726
Page 108 of 117
MEMORANDUM
TO: Mayor Brian Gabriel and Kenai City Council
THROUGH: Paul Ostrander, City Manager
FROM: Mary Bondurant, Airport Manager
DATE: April 6, 2020
SUBJECT: April Mid-month Report
2018 Terminal Rehabilitation Project – Construction: The project is shut-down due to CORVID-
19.
2019 Alaska Fire Training Facility Rehabilitation & Acquire Aircraft Rescue and Firefighting Trucks
(ARFF) – Progress has slowed-down due to the CORVID-19 virus.
2020 Acquire SRE (Loader) – The Invitation to Bid for a loader with attachments will start
advertising on April 8, 2020. This currently is the only Airport Improvement Project scheduled for
FY20.
In-house Activities:
Airport Operations – Operations crew continues to plow snow due to the long winter season and
are preparing to start summer clean-up activities.
Airport Administration – The office is closed. The Airport Manager is working and the
Administrative Assistant has been assigned telework from home. If you need assistance please
send an email to mbondurant@kenai.city or call 907.283.7951. The terminal building is closed
from Friday night at 12 midnight until 3:00am on Sundays due to the airline and car rental
companies’ schedules along; the lounge and café already closed.
March 16 & 17, 2020 – The TSA inspection was conducted and there were no findings of non-
compliance identified.
May 13 & 14, 2020 – Cancelled due to the CORVID -19 virus. 2020 Alaskan Region Airports
Division Workshop.
April 7, 2020 – The USDA required initial and recurrent Wildlife Hazing training has been
postponed due to the CORVID-19 virus. The FAA has granted a 90-day extension.
Page 109 of 117
Page 2 of 2
June 13, 2020 – 20th Annual Kenai Peninsula Air Fair, Saturday! This event has been cancelled
due to the CORVID-19 virus.
April 6, 2020 RAVN Shutdown – RAVN has shut down the Kenai flight and cargo operations at
the Airport due to the CORVID-19 virus. This action lays off twenty-five local RAVN employees.
Grant continues to fly a limited schedule six-days a week.
Page 110 of 117
JC Sponsored by: Administration
Kl;NAI
CITY OF KENAI
ORDINANCE NO. 3123-2020
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND
APPROPRIATING FUNDS IN THE AIRPORT FUND, AND ACCEPTING A GRANT FROM THE
FEDERAL AVIATION ADMINISTRATION FOR A CARES ACT GRANT.
WHEREAS , on March 27, 2020 the Secretary of Transportation announced that nearly $10 billion
was being provided to eligible U.S. airports to prevent, prepare for, and respond to coronavirus
impacts, including for continuing airport operations; and,
WHEREAS, on April 14, 2020, the Coronavirus Aid , Relief, and Economic Security Act (CARES
Act) Public Law 116-136 awarded the Kenai Municipal Airport $1 ,622,758 to keep the airport in
reliable, safe operation to serve the aviation industry, the travelling public, support the economy,
keep airport and aviation workers employed, and keep airport credit ratings stable; and,
WHEREAS, the funds are available for any purpose for which airport revenues may lawfully be
used; and,
WHEREAS, on April 24, 2020 , the City Manager submitted a grant application to the Federal
Aviation Administration for $1 ,622, 758 which may be used for any purpose for which airport funds
may be lawfully used, as found in the Office of Airports Revenue Use Policy, except airport
development or land acquisition; and
WHEREAS, legislative action designating authority for execution of the grant is required by end
of business on May 20, 2020 in order for the grant to be valid; and
WHEREAS , pursuant to KMC 1.15. 70( d) the City may introduce and finally pass on the same day,
an ordinance making, repealing, transferring or otherwise changing an appropriation; and,
WHEREAS , keeping the airport in reliable, safe operation is in the best interest of the Kenai
Municipal Airport.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA,
as follows:
Section 1. That the City Manager is authorized to accept a grant in the amount of$ 1,622 , 758 .
Section 2. That the estimated revenues and appropriations be increased as follows:
Airport Fund :
Increase Estimated Revenues -
Federal Grant $ 1,622 758
Page 111 of 117
Ordinance No. 3123-2020
Page 2 of 2
Increase Appropriations -
Administration -Contingency $ 1.622.758
Section 3. That the City Manager is authorized to accept grant funding for $ 1,622, 758 from
the Federal Aviation Administration and to execute a grant agreement and to expend grant funds
to fulfill the purpose and intent of this ordinance.
Section 4. Severability: That if any part or provision of this ordinance or application thereof to
any person or circumstances is adjudged invalid by any court of competent jurisdiction, such
judgment shall be confined in its operation to the part, provision, or application directly involved
in all controversy in which this judgment shall have been rendered, and shall not affect or impair
the validity of the remainder of this title or application thereof to other persons or circumstances.
The City Council hereby declares that it would have enacted the remainder of this ordinance even
without such part, provision, or application.
Section 5. Effective Date : That pursuant to KMC 1.15.0?0(f), this ordinance shall take effect
immediately upon enactment.
ENACTED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 5th day of May, 2020.
New Text Und erlined; [DELETED TEXT BRACKETED]
Introduced: May 6, 2020
Enacted: May 6, 2020
Effective : May 6, 2020
Page 112 of 117
City of Kenai I 210 ~i d algo Ave , Kenai , AK 9 9 6 11 -7794 I 907.283.7535 I www.kena i.ci!y
MEMORANDUM
TO:
THROUGH:
FROM :
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Mary Bondurant, Airport Manager
April 27, 2020
Ordinance No. 3123-2020-CARES Act Grant
On April 14, 2020 , the Secretary of Transportation announced that the Kenai Municipal Airport
was the recipient of $1,622 , 758 due to the Coronavirus Aid, Relief, and Economic Security Act
(CARES Act). Because the grant must be executed by the City Manager on or before May 20 ,
2020 after authorizing legislative action has been taken, I am requesting this Ordinance be read
twice and enacted at the same meeting to avoid any potential issues.
This grant is generally available for any purpose for which airport revenues may lawfully be used .
Thank you for your consideration.
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