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HomeMy WebLinkAboutResolution No. 2020-71KENAI CITY OF KENAI RESOLUTION NO. 2020 - 71 Sponsored by: Administration �O S A RESOLUTION OF THE COUNCIL OF TH Y OF KENAI, ALASKA, APPROVING AN AIRLINE OPERATING AGREEMENTA INC., D/B/A RAVN ALASKA. RMINAL AREA LEASE WITH CORNUS AIRLINES WHEREAS, the-C-ity of Kenai is the owner and operator of the Kenai Municipal Airport; and, WHEREAS, a recommendation of the 2007 Supplemental Planning Assessment was to update the City's airline operating agreement and terminal lease; and, WHEREAS, Council approved Resolution No. 2008-27 establishing a new airline operating agreement and terminal lease to modernize the airport airline terminal leasing procedures and policies and increase airport operating revenue effective June 1, 2008 for a sixty -month period; and, WHEREAS, Council approved Resolution No. 2013-31 approving the First Amendment to the airline operating agreement and terminal area lease effective July 1, 2013 for a sixty -month period; and, WHEREAS, Council approved Resolution No. 2018-43 approving the Second Amendment to the airline operating agreement and terminal area lease effective July 1, 2018 for a period of twelve months in consideration of the terminal rehabilitation project; and, WHEREAS, Council approved Resolution No. 2019-24 approving the Third Amendment to the airline operating agreement and terminal area lease effective July 1, 2019 for an additional twelve months due to delays in the terminal rehabilitation project; and, WHEREAS, City administration, working with an airport consultant, developed the Fourth Amendment to the airline operating agreement and terminal area lease; and, WHEREAS, in early 2020, RAVN Air Group, Inc., et al, filed Chapter 11 Bankruptcy and ceased operation at the Kenai Airport; and, WHEREAS, an entity called FLOAT shuttle, purchased many of RAVN Air Group's assets through the Bankruptcy, including those physical assets central to operation at the Kenai Airport; and, WHEREAS, FLOAT shuttle intends to operate in Alaska as Corvus Airlines, Inc., d/b/a RAVN Alaska once necessary state and federal requirements have been met and resume flights in and out of the Kenai Airport beginning in September 2020 or soon thereafter; and, WHEREAS, RAVN Air Group Inc., has not assigned its interest in the Airline Operating Agreement or Terminal Area Lease to FLOAT shuttle or Corvus Airlines, Inc., d/b/a RAVN Alaska; and, Resolution No. 2020-71 Page 2 of 2 WHEREAS, Float shuttle/ Corvus Airlines, Inc., d/b/a RAVN Alaska must sign the City of Kenai's original Airline operating agreement and the four amendments thereto, to operate as a signatory operator in the Kenai Airport and secure terminal space; and WHEREAS, it is in the best interest of the City of Kenai to authorize the City Manager to enter into such agreements with Float shuttle/ Corvus Airlines, Inc., d/b/a/ RAVN Alaska on behalf of the City. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Council approves the Terminal Area Lease form as shown in Exhibit 1; and, Section 2. That the Kenai City Manager is authorized to enter into such an the City's Airline Operating agreement as amended with Float shuttle/ Corvus Airlines, Inc., d/b/a RAVN Alaska. Section 3. That this resolution takes effect immediately upon adoption. ADOPTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of September, 2020. BRIAN GABRIEL SR., MAYOR ATTEST: Jamie Heinz, City Clerk City of Kenai I 210 l=idalgo Ave , Kenai , AK 99611 -77941907.283.7535 I www.kenai .city MEMORANDUM TO : FROM: DATE: SUBJECT: Mayor Gabriel and Council Members Scott Bloom , City Attorney August27,2020 Resolution No. 2020 -71 -Approving An Airline Operating Agreement and Terminal Areal Lease with Corvus Airlines, Inc., D/B/A Ravn Alaska RA VN Air Group, Inc filed chapter 11 Bankruptcy in the Spring of 2020 and ceased flight operations in Kenai. FLOAT shuttle recently completed a purchase of a significant portion of RA VN Air Group's assets and is looking to reestablish flight service in Kenai as Corvus Airlines , DBA Ravn Alaska beginning September 22, 2020 at the earliest. The City administration has been working with the new ownership group to reestablish service in Kenai and thought all the pieces of the puzzle would be in place for this packet. However, there are still outstanding issues that need to be addressed, and administration requests Council postpone this Resolution indefinitely and a new resolution will be brought back before Council as soon as September 16, 2020 to allow for operations to begin on September 22 if necessary. Your consideration is appreciated .