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HomeMy WebLinkAbout2005-06-09 Council Minutes - Special MeetingAGENDA KENAI CITY COUNCIL - SPECIAL MEETING JUNE 9, 2005 6:00 P.M. KENAI CITY COUNCIL CHAMBERS htt www.ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval ITEM B: OLD BUSINESS 1. Approval -- SOAR International Ministries, Inc. -- Lot 3, Block 1, General Aviation Apron a. Amendment to Lease Changing the Use b. Request to Sublease to Air Supply Alaska, Inc. ITEM C: ADJOURNMENT KENAI CITY COUNCIL - SPECIAL MEETING JUNE 99 2005 6:00 P.M. KENAI CITY COUNCIL CHAMBERS htt wWW-ci.kenai.ak.us MAYOR PAT PORTER, PRESIDING MTIITTTTTC ITEM A: CALL TO ORDER Mayor Porter called the meeting to order at approximately 6:00 p.m. A-1. Pledge of Allegiance Mayor Porter led those present in the Pledge of Allegiance. A-2, Roll Call Roll was taken by the City Clerk. Present were: Cliff Massie Rick Ross James N. Butler, III Pat Porter, Mayor Joe Moore, Vice Mayor Linda Swarner Absent was: Blaine Gilman A quorum was present. A- S . AGENDA APPROVAL MOTION: Council Member MOVED for approval of the agenda and Council Member Ross SECONDED the motion. There were no objections. SO ORDERED, ITEM B: OLD BUSINESS B-1. Approval -- SOAR International Ministries, Inc. -- Lot 3, Block 1, General Aviation Apron a. Amendment to Lease Changing the Use b. Request to Sublease to Air Supply Alaska, Inc. MOTION: Council Member Butler MOVED for the approval of the Amendment to Lease Changing the Use for SOAR International Ministries, Inc. for Lot 3, Block 1, General Aviation Apron and the Request to Sublease to Air Supply Alaska, Inc. Council Member Moore SECONDED the motion. , SPECIAL KENAI CITY COUNCIL MEETING JUNE 9, 2005 PAGE 2 There were no public comments. Council Member Moore noted, at the June 1, 2005 council meeting, the lease amendment and sublease were approved contingent upon insurance coverage for the activities to be performed. He requested a staff report. City Manager Snow reported the following: • At the June 1 meeting, council directed administration to return the issue to council if administration was not satisfied that the sub -lessee was appropriately insured for the activities as described by council. • Administration met with the sub -lessees at the Mayor's request. It was established SOAR did not have the additional insurance coverage as identified by the council and neither did Air Supply Alaska, Inc. • The lessee and sub -lessee expressed their concerns about the insurance coverage requested. • Information regarding other fueling activities at the airport and the amount of insurance required by the city was included in the packet as well as the city's requirement for its fueling operations. Finance Director Semmens provided the following information: • He contacted the city's insurance broker who thought it would be possible for the city to procure certain coverage for pollution liability with some exception. • Basically, the city does not have pollution liability coverage in its current insurance policies. • Until an application for this type of insurance, including a complete description of the activity, no cost of that type of insurance would be available. The broker is willing to complete the application and submit it for a cost estimate. • The hand-written notes on the copies stated: Page 16 -- from the General Liability Policy/Exclusions Section, "Note: Airfield is totally excluded on this policy." And the exclusion language says, "Pollution is not covered, except as described in small letters i through iv, below." Page 11 -- from the Airport Policy, "Does not cover cleanup at all. It would cover our liability only in limited cases." Council Member Butler referred to a memorandum from Fire Marshall James Baisden regarding fuel storage requirements and asked if the requirements listed were consistent with all the other operators on the airport. Fire Marshall Baisden explained, there were two other operators on the airport: the city's at the float plane basin and Yukon Fuel. Baisden explained, the general guidelines provided are from the Fire Code; he met with the lessee and sub -lessee and they came to the consensus the requirements were reasonable; the Fire Department would do the same type of inspections with other fueling operations of this size; and, there may be private operators who do fueling of which they are not aware, however, they would require the same for other operations of the size proposed. p p p SPECIAL KENAI CITY COUNCIL MEETING JUNE 9 2005 PAGE 3 Porter asked if the city was asking Air Supply Alaska to do anything that anyone else at the airport is currently not doing. Baisden answered no, these requirements are typical for the size of operation. Moore asked if the requirements would be different if the fuel would be stored on trailers. Baisden answered, the code varied for amount of fuel and how it is carried, etc., but would be more stringent with fixed tanks than mobile tanks. Swarner asked if the Fire Marshall's requirements were included in the new sublease. Snow answered, they were and the lessee and sub -lessee were in agreement with the conditions. Butler stated, because the operation would be stored on gravel and would not be close to navigable water, cleanup would be much easier. He added, he believed the mitigation plans were sufficient for cleanup of a spill on gravel. Butler stated he would support the motion. Moore stated he believed the issue was liability to the city; council is to promote and protect the city; the matter having been brought up asks how the city would expect the lessees to be covered for spills, etc. if the city is not insured for it; and, he believed the concern is serious. VOTE: Massie Yes Ross Yes Gilman Absent Butler Yes Porter Yes Moore Yes Swarner Yes MOTION PASSED UNANIMOUSLY. ITEM C: ADJOURNMENT The meeting adjourned at approximately 6:11 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk