HomeMy WebLinkAbout2022-06-09 Airport Commission Packet
KENAI AIRPORT COMMISSION
REGULAR MEETING
JUNE 9, 2022 – 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
*Telephonic/Virtual Information Page 2*
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. May 12, 2022 ...................................................................................................... Pg. 3
5. UNFINISHED BUSINESS
6. NEW BUSINESS
a. Discussion/Recommendation – Recommending the Kenai City Council Approve a
Special Use Permit to Empire Airlines, Inc. for Aircraft Loading & Parking. ......... Pg. 6
b. Discussion/Recommendation – Recommending the Kenai City Council Approve a
Special Use Permit to Everts Air Fuel, Inc. for Aircraft Loading & Parking………Pg. 16
c. Discussion/Recommendation – Recommending the Kenai City Council Approve a
Special Use Permit to Crowley Fuels LLC for Aviation Fueling & Apron Fueling
Area……………………………………………………………………………………..Pg. 26
d. Discussion/Recommendation – Recommending the Kenai City Council Approve a
Special Use Permit to Alaska Geographic for a Vending Kiosk in the Airport Terminal.
…………………………………………………………………………………………..Pg. 36
e. Discussion/Recommendation – Recommending the Kenai City Council Approve a
Special Use Permit to UPSCO United Parcel Service Co., Inc. for Aircraft Loading &
Parking………………………………………………………………………………….Pg. 41
f. Discussion/Recommendation – Recommending the Kenai City Council Approve a
Special Use Permit to Kenai Aviation for Aircraft Parking…………………………Pg. 51
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g. Discussion/Recommendation – Recommending the Kenai City Council Approve a
Special Use Permit to Alaska Air Fuel, Inc. for Aircraft Loading & Parking………Pg. 61
h. Discussion/Recommendation – Recommending the Kenai City Council Approve
Fifth Amendment to Agreement for Restaurant Concession with Situla LLC (D/B/A
Brother’s Café)…………………………………………………………………………Pg. 71
7. REPORTS
a. Airport Manager
b. City Council Liaison ...........................................................................................Pg. 75
8. NEXT MEETING ATTENDANCE NOTIFICATION – July 14, 2022
9. COMMISSIONER COMMENTS AND QUESTIONS
10. ADDITIONAL PUBLIC COMMENT
11. INFORMATION ITEMS
a. April 2022 Enplanement Report……………………………………………………..Pg. 83
12. ADJOURNMENT Join Zoom Meeting
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Meeting ID: 853 5066 7509 Password: 497998
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KENAI AIRPORT COMMISSION
REGULAR MEETING
MAY 12, 2022 – 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, D. Pitts, P. Minelga, J. Bielefeld, J. Caldwell, J.
Daily
J. Zirul
Staff/Council Liaison Present: Airport Manager E. Conway, Administrative Assistant E.
Brincefield, Council Liaison Baisden
A quorum was present.
c. Agenda Approval
MOTION:
Vice Chair Minelga MOVED to approve the agenda and Commissioner Caldwell 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. April 14, 2022
MOTION:
Commissioner Caldwell MOVED to approve the meeting summary of April 14, 2022 as presented.
Commissioner Bielefeld SECONDED the motion. There were no objections; SO ORDERED.
5. UNFINISHED BUSINESS – None.
6. NEW BUSINESS
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____________________________________________________________________________________
Airport Commission Meeting Page 2 of 3
May 12, 2022
a. Discussion/Recommendation – Recommending the City Council Approve a Special
Use Permit to Pacific Star Seafoods for 15,000 sqft of Apron for Aircraft Parking &
Loading from June 1, 2022-July 31, 2022.
MOTION:
Vice Chair Minelga MOVED to recommend Council approve a Special Use Permit to Pacific Star
Seafoods for 15,000 sqft of Apron for Aircraft Parking & Loading from June 1, 2022-July 31, 2022.
Commissioner Daily SECONDED the motion.
Discussion involved clarification on the map “Exhibit A” presented in the packet.
UNANIMOUS CONSENT was requested.
VOTE: There were no objections; SO ORDERED.
b. Discussion/Recommendation – Recommending the City Council approve the
Second Amendment to Agreement for Janitorial Services to Reborn Again Janitorial.
MOTION:
Commissioner Bielefeld MOVED to recommend Council approve the Second Amendment to
Agreement for Janitorial Services to Reborn Again Janitorial. Commissioner Caldwell
SECONDED the motion.
UNANIMOUS CONSENT was requested.
VOTE: There were no objections; SO ORDERED.
c. Discussion/Recommendation – Recommending the City Council Approve
Resolution No. 2022-XX – Approving the Execution of a Lease to Swanson Properties,
LLC for Lot 6, Block 5, General Aviation Subdivision No. 1 Amended.
MOTION:
Vice Chair Minelga MOVED to recommend Council approve Resolution No. 2022-XX – Approving
the Execution of a Lease to Swanson Properties, LLC for Lot 6, Block 5, General Aviation
Subdivision No. 1 Amended. Commissioner Daily SECONDED the motion.
Clarification was provided that this lease is for the building lot, and the area where they store
equipment is under a different lease agreement.
UNANIMOUS CONSENT was requested.
VOTE: There were no objections; SO ORDERED.
d. Discussion – FY23 Draft Airport Budget.
Airport Manager Conway explained that because the City of Kenai had established the Airport
Permanent Fund, the Kenai Airport is able to supplement about a third of its budget from earnings
of the permanent fund. He reported that the Airport is self-sufficient and operating fiscally
responsibly.
The commission discussed funding for additional improvements at the float plane basin, reported
complaints of gravel material used at the float plane basin, and a memorial for Derek Leichliter.
7. REPORTS
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____________________________________________________________________________________
Airport Commission Meeting Page 3 of 3
May 12, 2022
a. Airport Manager – Airport Manager Conway reported on the following:
• Kenai Aviation began flying on May 2, 2022;
• My Alaskan Gifts opened in the terminal;
• Enplanements continue to rise;
• Parking revenue is up.
b. City Council Liaison – Council Member Baisden reported that the City Council
FY2023 Budget Work Session would be on Saturday, May 14, 2022.
8. NEXT MEETING ATTENDANCE NOTIFICATION – June 9, 2022
Commissioners Daily and Pitts noted that they may be absent.
9. COMMISSIONER COMMENTS AND QUESTIONS – None.
10. ADDITIONAL PUBLIC COMMENT – None.
11. INFORMATION ITEMS
a. February 2022 Enplanement Report
12. ADJOURNMENT
There being no further business before the Commission, the meeting was adjourned at 6:17 p.m.
Meeting summary prepared and submitted by:
________________________
Meghan Thibodeau
Deputy City Clerk
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www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
Through: Eland Conway – Airport Manager
From: Erica Brincefield - Assistant
Date: May 12, 2022
Subject: Empire Airlines, Inc. - Special Use Permit
Empire Airlines, Inc. is requesting a Special Use Permit for aircraft parking on
approximately 11,250 square feet of apron space. The Special Use Permit will be
effective for one year from July 1, 2022 to June 30, 2023.
Does Commission recommend Council approve the Special Use Permit to Empire
Airlines, Inc.?
Attachment
6
Special Use Permit—Empire Airlines, Inc. (Parking) Page 1 of 8
SPECIAL USE PERMIT
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, 2022 and
ending on June 30, 2023. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2022.
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 $1,190.63 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
Avenue, 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 timel y make payments is grounds for termination of this Permit.
(See ¶ 22, Termination)
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Special Use Permit—Empire Airlines, Inc. (Parking) Page 2 of 8
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 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.
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Special Use Permit—Empire Airlines, Inc. (Parking) Page 3 of 8
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
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
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Special Use Permit—Empire Airlines, Inc. (Parking) Page 4 of 8
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 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,
2022. The effective date of the insurance shall be no later than July
1, 2022.
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.
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Special Use Permit—Empire Airlines, Inc. (Parking) Page 5 of 8
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
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Special Use Permit—Empire Airlines, Inc. (Parking) Page 6 of 8
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
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
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Special Use Permit—Empire Airlines, Inc. (Parking) Page 7 of 8
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
and safety or due to a failure of Permittee to comply with condition or term of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this 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 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 Empire Airlines, Inc. and
where the context reasonably indicates, its officers, agents, and employees. “Airport”
means the Kenai Municipal Airport.
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Special Use Permit—Empire Airlines, Inc. (Parking) Page 8 of 8
CITY OF KENAI EMPIRE AIRLINES, INC.
By: By:
Paul Ostrander Date Randy Lanfell Date
City Manager Director of Flight Operations
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2022, 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 ______________, 2022, the foregoing
instrument was acknowledged before me by RANDY LANFELL, Director of Flight
Operations, Empire Airlines, Inc., on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires:
Approved as to Form:
___________________
Scott Bloom
City Attorney
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www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
Through: Eland Conway – Airport Manager
From: Erica Brincefield - Assistant
Date: May 12, 2022
Subject: Everts Air Fuel, Inc. - Special Use Permit
Everts Air Fuel, Inc. is requesting a Special Use Permit for approximately 30,000 square
feet of apron for aircraft loading and parking. The Special Use Permit will be effective
for one year from July 1, 2022 to June 30, 2023.
Does Commission recommend Council approve the Special Use Permit to Everts
Air Fuel, Inc.?
Attachment
16
Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 1 of 8
SPECIAL USE PERMIT
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, 2022 and
ending on June 30, 2023. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2022.
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 $3,175.00 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
Avenue, 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)
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Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 2 of 8
4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the
following purpose(s):
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.
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Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 3 of 8
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
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
19
Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 4 of 8
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 30 days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2022. The effective date of the insurance shall be no later than July
1, 2022.
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.
20
Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 5 of 8
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 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.
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Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 6 of 8
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. 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
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Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 7 of 8
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
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.
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Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 8 of 8
CITY OF KENAI EVERTS AIR FUEL, INC.
By: By:
Paul Ostrander Date Robert Everts Date
City Manager Consultant
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2022, 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 ______________, 2022, the foregoing
instrument was acknowledged before me by Robert Everts, Consultant, Everts Air Fuel,
Inc., on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
24
25
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
Through: Eland Conway - Airport Manager
From: Erica Brincefield - Assistant
Date: May 12, 2022
Subject: Crowley Fuels LLC. - Special Use Permit
Crowley Fuels LLC is requesting a Special Use Permit for aviation fueling on 35,000
square feet of the apron fueling area. The Special Use Permit will be effective for one
year from July 1, 2022 to June 30, 2023.
Does Commission recommend Council approve the Special Use Permit to
Crowley Fuels LLC?
Attachment
26
Special Use Permit—Crowley (Apron Fueling Area) Page 1 of 8
SPECIAL USE PERMIT
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, 2022 and
ending on June 30, 2023. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2022.
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 $3,704.16 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
Avenue, 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)
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Special Use Permit—Crowley (Apron Fueling Area) Page 2 of 8
4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the
following purpose(s):
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.
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Special Use Permit—Crowley (Apron Fueling Area) Page 3 of 8
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
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
29
Special Use Permit—Crowley (Apron Fueling Area) Page 4 of 8
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 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,
2022. The effective date of the insurance shall be no later than July
1, 2022.
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.
30
Special Use Permit—Crowley (Apron Fueling Area) Page 5 of 8
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 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
31
Special Use Permit—Crowley (Apron Fueling Area) Page 6 of 8
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
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
32
Special Use Permit—Crowley (Apron Fueling Area) Page 7 of 8
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
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.
33
Special Use Permit—Crowley (Apron Fueling Area) Page 8 of 8
CITY OF KENAI CROWLEY FUELS LLC
By: By:
Paul Ostrander Date Richard W. Meidel Date
City Manager Vice President
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2022, 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 ______________, 2022, 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:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
34
35
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-8281
FAX 907-283-3737
Memo
To: Airport Commission
Through: Eland Conway – Airport Manager
From: Erica Brincefield - Assistant
Date: May 18, 2022
Subject: Alaska Geographic- Special Use Permit
Alaska Geographic is requesting a special use permit for a vending kiosk inside the
terminal building. This vending kiosk will sell interpretive and educational products
related to the Kenai National Wildlife Refuge and the Alaska Maritime Wildlife Refuge.
The special use permit will be effective for one year from July 1, 2022 to June 30, 2023.
Does Commission recommend Council approve the Special Use Permit to
ALASKA GEOGRAPHIC.?
Attachments
36
Special Use Permit—Alaska Geographic Page 1 of 4
SPECIAL USE PERMIT
THE CITY OF KENAI (CITY) for the considerations and pursuant to the conditions and
requirements set forth below, hereby grants ALASKA GEOGRAPHIC (PERMITTEE),
whose address is 421 W. 1st Ave, Suite 250, Anchorage, AK 99501, the non-exclusive right
to use that area described below:
A small area in the Kenai Airport Terminal approximately 3.4 feet
by 2.8 feet in size
1. TERM. The term of this Permit shall be for 1 year commencing on July 1, 2022, and
ending on June 30, 2023.
2. PERMIT FEES. The monthly fee for this permit is $29.60 plus applicable sales tax.
3. USE. The use of the Premises by Permittee is for the purpose of placing a vending
kiosk to sell interpretive products that entertain and educate visitors about Alaska’s public
lands. A portion of every purchase is donated to its host park, refuge or forest. The
inventory will be monitored remotely and serviced by Kenai National Wildlife Refuge
store manager in Soldotna.
4. LICENSES AND PERMITS; LAWS. Permittee shall adhere to all federal, state,
and local laws, ordinances, and regulations while conducting its activities on the Premises.
Permittee shall obtain and maintain all required federal, state, and local licenses, permits,
certificates, and other documents required for Permittee’s operations under the Permit.
Permittee shall provide proof of compliance to the City upon request by the City.
5. NO EXCLUSIVITY. This Permit is not intended to grant any exclusive use to the
described Premises.
6. INSURANCE. Permittee shall provide proof of insurance coverage, including
worker’s compensation, if necessary, in an amount satisfactory to the City Manager,
and listing the City as an additional insured.
7. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee
agrees to indemnify, defend, and hold the City, its agents, and employees harmless from
and against any and all liability, loss, suit, claim, judgment, fine, demand, damage, penalty,
property damage, or personal injury of whatever kind, including sums paid in settlements
of claims, attorney fees, consultant fees, expert fees, or costs incurred arising from or
connected with the Permittee's use or occupation of the Premises. Permittee shall give the
37
Special Use Permit—Alaska Geographic Page 2 of 4
City of Kenai reasonable notice of any such claims or actions. However, Permittee shall
not be responsible for any damage or claims from the sole negligence, activities, or
omission of the City or its agents or employees.
8. PERSONALITY. Permittee is solely responsible for the maintenance of the kiosk.
Permittee must keep the kiosk and all other materials on the Premises clean and in good
condition.
Permittee shall remove any and all personal property 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 at or from the Premises.
9. NO WAIVER. Failure to insist upon a strict compliance with the terms, conditions,
and/or any requirement herein contained, or referred to, shall not constitute or be construed
as a waiver or relinquishment of the right to exercise such terms, conditions or requirements.
10. MUTUAL CANCELLATION. This Permit may be cancelled in whole or in part
with one month written notice by Permittee or the City.
11. NO DISCRIMINATION. Permittee will not discriminate on the grounds of race,
color, religion, national origin, ancestry, age, or sex against any patron, employee,
applicant for employment, or other person or group of persons in any manner prohibited
by federal or State law. Permittee recognizes the right of the City to take any action
necessary to enforce this requirement.
12. ASSUMPTION OF RISK. Permittee shall provide all proper safeguards and shall
assume all risks incurred in its use of the Premises.
13. 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.
14. CONTACT INFORMATION. The contact information for Permittee, and the
person in responsible charge for Permittee during the term of the Permit, for purposes of
notice and all communications from City to Permittee is:
Alaska Geographic
38
Special Use Permit—Alaska Geographic Page 3 of 4
Executive Director Andy Hall
421 W. 1st Ave, Ste. 250
Anchorage, AK 99501
(907) 771-8400
The contact information for City for purposes of notice and all communications from
Permittee to City is:
Airport Administration
305 North Willow, Suite 200
Kenai, Alaska 99611
Telephone: (907) 283-8281
15. RIGHTS OR REMEDIES. No right or remedy herein conferred upon or reserved
to each respective party is intended to be exclusive of any other right or remedy. Each and
every right and remedy shall be cumulative and in addition to any other right or remedy
given hereunder, or now or hereafter existing at law or in equity.
16. GOVERNING LAW; VENUE. The laws of State of Alaska will determine the
interpretation of this Agreement and the performance thereof. Any lawsuit brought
thereon shall be filed in the Third Judicial District at Kenai, Alaska.
17. AUTHORITY. By signing this Permit, Permittee represents that it has read this
agreement and it agrees to be bound by the terms and conditions herein and that the person
signing this Permit is authorized to bind Permittee.
CITY OF KENAI
By: ________________________
City Manager
39
Special Use Permit—Alaska Geographic Page 4 of 4
ALASKA GEOGRAPHIC
By: ________________________
Andy Hall
Executive Director
Approved as to form:
___________________
Scott Bloom
City Attorney
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on the ____ day of ____________, 2022, 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 ____________, 2022, the foregoing
instrument was acknowledged before me by ANDY HALL, Executive Director of Alaska
Geographic, an Alaska non-profit corporation, on behalf of the corporation.
________________________________
Notary Public for Alaska
My Commission Expires: __________
40
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
Through: Eland Conway – Airport Manager
From: Erica Brincefield - Assistant
Date: May 12, 2022
Subject: United Parcel Service Co., Inc. - Special Use Permit
United Parcel Service Co., Inc. is requesting a Special Use Permit for approximately
4,000 square feet of apron for aircraft loading and parking. The Special Use Permit will
be effective for one year from July 1, 2022 to June 30, 2023.
Does Commission recommend Council approve the Special Use Permit to UPSCO
United Parcel Service Co., Inc.?
Attachment
41
Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 1 of 8
SPECIAL USE PERMIT
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, 2022 and
ending on June 30, 2023. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2022.
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 $423.33 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
Avenue, 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 timel y make payments is grounds for termination of this Permit.
(See ¶ 22, Termination)
42
Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 2 of 8
4. Use. City authorizes Permittee’s non-exclusive use of the Premises for the
following purpose(s):
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.
43
Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 3 of 8
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
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
44
Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 4 of 8
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 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,
2022. The effective date of the insurance shall be no later than July
1, 2022.
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.
45
Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 5 of 8
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.
46
Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 6 of 8
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. 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
47
Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 7 of 8
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
and safety or due to a failure of Permittee to comply with condition or term of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this 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 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.
48
Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 8 of 8
CITY OF KENAI UPSCO
By: By:
Paul Ostrander Date Robert Vey Date
City Manager Business Manager
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2022, 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 ______________, 2022, the foregoing
instrument was acknowledged before me by Robert Vey, the Business Manager, on behalf
of UPSCO, United Parcel Service Co., Inc.
Notary Public for Alaska
My Commission Expires:
Approved as to Form:
___________________
Scott Bloom
City Attorney
49
50
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
Through: Eland Conway – Airport Manager
From: Erica Brincefield - Assistant
Date: May 23, 2022
Subject: Kenai Aviation - Special Use Permit
Kenai Aviation is requesting a Special Use Permit for approximately 2,714 square feet
of taxi lane at the north end of GG for aircraft parking. The Special Use Permit will be
effective for six months from May 1, 2022 to October 31, 2022.
Does Commission recommend Council approve the Special Use Permit to Kenai
Aviation?
Attachment
51
Special Use Permit—Kenai Aviation(Aircraft Parking) Page 1 of 8
SPECIAL USE PERMIT
The CITY OF KENAI (City) grants to Kenai Aviation (Permittee), whose address is 101
N Willow Street, Kenai, AK 99611, 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 2,714 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 six months commencing on May 1, 2022
and ending on October 31, 2022. Regardless of the date of signature, this Permit shall be
effective as of May 1, 2022.
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 plus applicable sales tax as follows:
May-June 2022 $124.39
July-October 2022 $131.17
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
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent
(10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the
date paid in full. Failure to timely make payments is grounds for termination of this Permit.
(See ¶ 22, Termination)
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Special Use Permit—Kenai Aviation(Aircraft Parking) Page 2 of 8
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 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.
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Special Use Permit—Kenai Aviation(Aircraft Parking) Page 3 of 8
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
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
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Special Use Permit—Kenai Aviation(Aircraft Parking) Page 4 of 8
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 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 May 1,
2022. The effective date of the insurance shall be no later than May
1, 2022.
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.
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Special Use Permit—Kenai Aviation(Aircraft Parking) Page 5 of 8
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.
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Special Use Permit—Kenai Aviation(Aircraft Parking) Page 6 of 8
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. 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
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Special Use Permit—Kenai Aviation(Aircraft Parking) Page 7 of 8
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
and safety or due to a failure of Permittee to comply with condition or term of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this 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 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 Kenai Aviation and where
the context reasonably indicates, its officers, agents, and employees. “Airport” means the
Kenai Municipal Airport.
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Special Use Permit—Kenai Aviation(Aircraft Parking) Page 8 of 8
CITY OF KENAI KENAI AVIATION
By: By:
Paul Ostrander Date Jacob Caldwell Date
City Manager Owner
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2022, 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 ______________, 2022, the foregoing
instrument was acknowledged before me by Jacob Caldwell, Owner, on behalf of Kenai
Aviation.
Notary Public for Alaska
My Commission Expires:
Approved as to Form:
___________________
Scott Bloom
City Attorney
59
60
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-7951
FAX 907-283-3737
Memo
To: Airport Commission
Through: Eland Conway – Airport Manager
From: Erica Brincefield - Assistant
Date: May 18, 2022
Subject: Alaska Air Fuel, Inc. – Special Use Permit
Alaska Air Fuel, Inc. is requesting a Special Use Permit for approximately 15,000
square feet of apron for aircraft parking. The Special User Permit will be effective for
one year from July 1, 2022 to June 30, 2023.
Does Commission recommend Council approve the Special Use Permit to Alaska
Air Fuel, Inc.?
Attachment
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Special Use Permit—Alaska Air Fuel, Inc. (Apron Aircraft Loading & Parking) Page 1 of 8
SPECIAL USE PERMIT
The CITY OF KENAI (City) grants to ALASKA AIR FUEL, INC. (Permittee), whose
address is 3700 W. Aviation Avenue, Wasilla, AK 99654, 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 15,000 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, 2022 and
ending on June 30, 2023. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2022.
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 $725.00 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
Avenue, 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):
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Special Use Permit—Alaska Air Fuel, Inc. (Apron Aircraft Loading & Parking) Page 2 of 8
Aircraft Loading & 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.
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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.
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iii. Permittee shall request a waiver of subrogation against City from
Permittee’s insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 30 days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
v. Evidence of insurance coverage must be submitted to City by July 1,
2022. The effective date of the insurance shall be no later than July
1, 2022.
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
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Special Use Permit—Alaska Air Fuel, Inc. (Apron Aircraft Loading & Parking) Page 5 of 8
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 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.
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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. 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
67
Special Use Permit—Alaska Air Fuel, Inc. (Apron Aircraft Loading & Parking) Page 7 of 8
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
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 Alaska Air Fuel, Inc. and
where the context reasonably indicates, its officers, agents, and employees. “Airport”
means the Kenai Municipal Airport.
68
Special Use Permit—Alaska Air Fuel, Inc. (Apron Aircraft Loading & Parking) Page 8 of 8
CITY OF KENAI ALASKA AIR FUEL, INC.
By: By:
Paul Ostrander Date John Sliwinski Date
City Manager Vice President
ACKNOWLEDGMENTS
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ____ day of _____________, 2022, 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 ______________, 2022, the foregoing
instrument was acknowledged before me by John Sliwinski, Vice President, Alaska Air
Fuel, Inc., on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
69
70
www.KenaiAirport.com
“Serving the Greater Kenai Peninsula”
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907-283-8281
FAX 907-283-3737
Memo
To: Airport Commission
Through: Eland Conway – Airport Manager
From: Erica Brincefield – Assistant
Date: May 27, 2022
Subject: Fifth 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 Café) 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.
Attached for your review and recommendation is the Fifth Amendment to Agreement for
Restaurant Concession Agreement which shall be effective July 1, 2022.
Does Commission recommend Council approve the Fifth Amendment to
Agreement for Restaurant Concession with Situla LLC (d/b/a Brother’s Café)?
Attachment
71
Restaurant Concession Agreement Amendment 6/2/2022 City _____
Page 1 of 3 Concessionaire_____
Concessionaire _____
FIFTH 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: on June 3, 2020 the Kenai City Council adopted Resolution 2020-34
authorizing the City Manager to extend the Agreement through June 30, 2021;and,
Whereas: on December 16, 2020 the Kenai City Council adopted Resolution 2020-94
authorizing an additional change to the fee structure of the Agreement; and,
Whereas: pursuant to Article II of the Agreement, the City and Concessionaire mutually
agree to extend the Agreement for the third 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 third one-year term extension
beginning on July 1, 2022 and ending on June 30, 2023.
2. All other terms and conditions of the Agreement shall remain unchanged and in full
force and effect.
72
Restaurant Concession Agreement Amendment 6/2/2022 City _____
Page 2 of 3 Concessionaire_____
Concessionaire _____
LESSOR:
CITY OF KENAI
_________________________
Paul Ostrander, City Manager
CONCESSIONAIRE:
Situla LLC (d/b/a/ Brother’s Café) Situla LLC (d/b/a/ Brother’s Café)
__________________________________ __________________________________
James Hamilton – Co-Owner Zachary Hamilton – Co-Owner
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ___ day of __________________, 2022, James
Hamilton, Co-Owner, Situla LLC (d/b/a/ Brother’s Café), 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:
73
Restaurant Concession Agreement Amendment 6/2/2022 City _____
Page 3 of 3 Concessionaire_____
Concessionaire _____
STATE OF ALASKA )
)ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this ___ day of __________________, 2022, Zachary
Hamilton, Co-Owner, Situla LLC (d/b/a/ Brother’s Café), 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 __________________, 2022,
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 __________
74
Kenai City Council - Regular Meeting Page 1 of 4
May 18, 2022
Kenai City Council - Regular Meeting
May 18, 2022 ꟷ 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
**Telephonic/Virtual Information on Page 3**
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. 3286-2022 – Increasing Estimated Revenues
and Appropriations in the General Fund – Police Department and Accepting a Grant from the
US Department of Transportation Passed Through the State of Alaska Department of
Transportation and Public Facilities for Traffic Enforcement Overtime Expenditures.
(Administration)
2. POSTPONED UNTIL 6/1/2022. Ordinance No. 3287-2022 – Conditionally Donating Certain
City Owned Property Described as Tract A Park View Subdivision (KPB Parcel No. 047010118)
to the Boys and Girls Club of the Kenai Peninsula for Development of Facilities for Youth
Sports, Recreation, Education, After School Care and Other Youth Activities. (Mayor Gabriel
and Council Member Baisden)
3. ENACTED UNANIMOUSLY. Ordinance No. 3288-2022 – Accepting and Appropriating a
Scholarship from the Alaska Association of Municipal Clerks for Employee Travel and Training.
(City Clerk)
4. ADOPTED UNANIMOUSLY. Resolution No. 2022-29 – Authorizing an Agreement for
Professional Engineering Services to Provide Construction Documents for the Waste Water
Treatment Plant Digestor Blower Replacement Project. (Administration)
5. ADOPTED UNANIMOUSLY. Resolution No. 2022-30 – Authorizing A Budget Transfer in the
General Fund, Non-Departmental, Department to Provide Supplemental Funding to the
Communications Tower Condition Assessment and Capacity Study Project. (Administration)
75
Kenai City Council - Regular Meeting Page 2 of 4
May 18, 2022
6. ADOPTED UNANIMOUSLY. Resolution No. 2022-31 – Authorizing an Agreement for
Professional Engineering Services to Conduct a Rate Study for the Water, Sewer Wastewater
Utility. (Administration)
7. ADOPTED UNANIMOUSLY. Resolution No. 2022-32 – Amending the Employee
Classification Plan by Reclassifying the Public Works Wastewater Treatment Plant Foreman
and the Water and Sewer Foreman Positions Under the Foreman Classification and Adjusting
the Range for this Class. (Administration)
8. ADOPTED UNANIMOUSLY. Resolution No. 2022-33 – Approving the Vacation of a 60’ Wide
Right of Way and Associated Utility Easements in Jaynes Subdivision, Big Mike’s Addition, as
Granted by Plat K-2015-99, and Bridge Road Subdivision 2019 Replat as Granted by Plat K-
2020-15, Located Within Section 4, Township 5 North, Range 11 West, Seward Meridian,
Alaska, and Determining the Right of Way and Utility Easements are Not Needed for a Public
Purpose. (Administration)
9. ADOPTED UNANIMOUSLY. Resolution No. 2022-34 – Adopting the Updated 2022 Kenai
Peninsula Community Wildfire Protection Plan. (Administration)
10. ADOPTED UNANIMOUSLY. Resolution No. 2022-35 – Authorizing a Budget Transfer in the
Airport Fund, Administration Department for the Payment of Concession Relief Payments to
Terminal Concessionaires from Grant Funds Received through the Coronavirus Response and
Relief Supplemental Appropriation Act, 2021. (Administration)
11. ADOPTED UNANIMOUSLY. Resolution No. 2022-36 – Authorizing a Budget Transfer in the
General Fund, Shop Department for Costs in Excess of Budgeted Amounts. (Administration)
E. MINUTES
1. APPROVED BY THE CONSENT AGENDA. *Regular Meeting of May 4, 2022. (City Clerk)
F. UNFINISHED BUSINESS
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 Liquor
License Renewals for Kenai Elks Lodge #2425. (City Clerk)
4. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 6/1/2022.
*Ordinance No. 3289-2022 – Adopting the Annual Budget, Salary Schedule and Employee
Classification Plan for the Fiscal Year Commencing July 1, 2022 and Ending June 30, 2023
and Committing $3,986,107 of General Fund, Fund Balance for Future Capital Improvements.
(Administration)
5. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 6/1/2022.
*Ordinance No. 3290-2022 – Authorizing the Return of Funds Remaining from Completed or
Canceled Capital Projects to the General, Airport Special Revenue and Water and Sewer
Special Revenue Funds. (Administration)
6. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 6/1/2022.
*Ordinance No. 3291-2022 – Accepting and Appropriating Private Donations to the Kenai
76
Kenai City Council - Regular Meeting Page 3 of 4
May 18, 2022
Community Library for the Purchase of Programming Equipment and Library Materials.
(Administration)
7. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 6/1/2022.
*Ordinance No. 3292-2022 – Increasing Estimated Revenues and Appropriations in the
General Fund and Public Safety Capital Project Fund to Provide Supplemental Funding for the
Fire Department Flooring Replacement Project. (Administration)
8. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 6/1/2022.
*Ordinance No. 3293-2022 – Amending the Appendices to the Kenai Municipal Code to Delete
Cemetery Regulations, Amending Title 24-Municipal Cemetery, to Include Certain Portions of
the Appended Cemetery Regulations and Make Other Housekeeping Changes and Adopting
a Kenai Municipal Cemetery Regulations Policy. (City Clerk)
9. APPROVED UNANIMOUSLY. Action/Approval – Special Use Permit to Pacific Star
Seafoods, Inc. for 15,000 square feet of Apron for Aircraft Parking & Loading from June 1,
2022-July 31, 2022. (Administration)
10. APPROVED UNANIMOUSLY. Action/Approval – Second Amendment to Agreement for
Janitorial Services with Reborn Again Janitorial Services. (Administration)
11. APPOINTMENTS OF ALICE HECKERT, MICHAEL STRAUGHN, AND BRETT PERRY
APPROVED. Action/Approval – Confirmation of Mayoral Nominations for Appointment to the
Council on Aging and Mini Grant Steering Committee. (Mayor Gabriel)
12. BOARD OF ADJUSTMENT SCHEDULED FOR 6/20/2022. Discussion – Scheduling a Board
of Adjustment Appeal Hearing. (City Clerk)
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
M. PENDING ITEMS
N. ADJOURNMENT
77
Kenai City Council - Regular Meeting Page 4 of 4
May 18, 2022
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 OR
https://us02web.zoom.us/j/86134600195 Dial In: (253) 215-8782 or (301) 715-8592
Meeting ID: 861 3460 0195 Passcode: 368520 Meeting ID: 861 3460 0195 Passcode: 368520
78
Kenai City Council - Regular Meeting Page 1 of 4
June 01, 2022
Kenai City Council - Regular Meeting
June 01, 2022 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. ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3289-2022 – Adopting the
Annual Budget, Salary Schedule and Employee Classification Plan for the Fiscal Year
Commencing July 1, 2022 and Ending June 30, 2023 and Committing $3,986,107 of
General Fund, Fund Balance for Future Capital Improvements. (Administration)
2. ENACTED UNANIMOUSLY. Ordinance No. 3290-2022 – Authorizing the Return of Funds
Remaining from Completed or Canceled Capital Projects to the General, Airport Special
Revenue and Water and Sewer Special Revenue Funds. (Administration)
3. ENACTED UNANIMOUSLY. Ordinance No. 3291-2022 – Accepting and Appropriating
Private Donations to the Kenai Community Library for the Purchase of Programming
Equipment and Library Materials. (Administration)
4. ENACTED UNANIMOUSLY. Ordinance No. 3292-2022 – Increasing Estimated Revenues
and Appropriations in the General Fund and Public Safety Capital Project Fund to Provide
Supplemental Funding for the Fire Department Flooring Replacement Project.
(Administration)
79
Kenai City Council - Regular Meeting Page 2 of 4
June 01, 2022
5. POSTPONED TO 6/15/2022. Ordinance No. 3293-2022 – Amending the Appendices to
the Kenai Municipal Code to Delete Cemetery Regulations, Amending Title 24-Municipal
Cemetery, to Include Certain Portions of the Appended Cemetery Regulations and Make
Other Housekeeping Changes and Adopting a Kenai Municipal Cemetery Regulations
Policy. (City Clerk)
6. POSTPONED TO 6/15/2022. Resolution No. 2022-37 – Removing the Moratorium on the
Purchase of Standard Cemetery Plots for the Sole Purpose of Reserving a Cemetery Plot
Not Being Used for Immediate Internment. (City Clerk)
7. ADOPTED UNANIMOUSLY. Resolution No. 2022-38 – Fixing the Rate of Levy of Property
Tax for the Fiscal Year Commencing July 1, 2022 and Ending June 30, 2023.
(Administration)
8. ADOPTED UNANIMOUSLY. Resolution No. 2022-39 – Amending the Comprehensive
Schedule of Rates, Charges, and Fees to Incorporate Changes Included in the FY2023
Budget to Include Adjusting Airport Fees, Animal Control Fees, Fire Department Ambulance
Fees, Library Fees, Parks and Recreation Fees, City Dock Fees, Water Fees, Sewer Fees,
Senior Center Fees, and Adjusting the Monthly Rental Rates at Vintage Pointe.
(Administration)
9. ADOPTED UNANIMOUSLY. Resolution No. 2022-40 – Approving the Divestment of the
City’s Interest in the Deeded Thirty-Foot Public Use Easement Lying Along the North
Boundary Of Lot 35, Section 6, Township Five North, Range Eleven West, Seward
Meridian, Alaska, and Determining The Easement Is Not Needed For A Public Purpose.
(Administration)
10. ADOPTED UNANIMOUSLY. Resolution No. 2022-41 – Authorizing Renewal of the City’s
Insurance Coverage with Alaska Municipal League Joint Insurance Association for July 1,
2022 Through June 30, 2023. (Administration)
11. ADOPTED UNANIMOUSLY. Resolution No. 2022-42 – Authorizing Contracts for
Employee Health Care and Other Benefits Effective July 1, 2022. (Administration)
12. ADOPTED UNANIMOUSLY. Resolution No. 2022-43 – Authorizing the City Manager to
Enter Into a Memorandum of Agreement with the State of Alaska Department of Natural
Resources, Division of Forestry to Support Spruce Beetle Mitigation and Hazard Fuel
Reduction. (Administration)
13. ADOPTED UNANIMOUSLY. Resolution No. 2022-44 – Approving the Execution of a
Lease of Airport Reserve Lands Using the Standard Lease Form Between the City of Kenai
and Swanson Properties, LLC on Lot 6, Block 5, General Aviation Subdivision No. 1
Amended. (Administration)
14. ADOPTED UNANIMOUSLY. Resolution No. 2022-45 – Supporting the Constitutional
Right of Alaska Grand Juries to Investigate and Make Recommendations on Public Welfare
and Safety Concerns. (Council Members Sounart and Pettey)
E. MINUTES
80
Kenai City Council - Regular Meeting Page 3 of 4
June 01, 2022
1. APPROVED BY THE CONSENT AGENDA. *Budget Work Session of May 14, 2022. (City
Clerk)
F. UNFINISHED BUSINESS
1. ENACTED AS AMENDED. Ordinance No. 3287-2022 – Conditionally Donating Certain
City Owned Property Described as Tract A Park View Subdivision (KPB Parcel No.
04701018) to the Boys and Girls Club of the Kenai Peninsula for Development of Facilities
for Youth Sports, Recreation, Education, After School Care and Other Youth Activities.
(Mayor Gabriel and Council Member Baisden) [Clerk's Note: At the May 18th Meeting, this
Ordinance was Postponed to this Meeting; a Motion to Enact is On the Floor.]
G. NEW BUSINESS
1. APPROVED BY THE CONSENT AGENDA. *Action/Approval - Bills to be Ratified.
(Administration)
2. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET FOR 6/15/2022.
*Ordinance No. 3294-2022 – Accepting and Appropriating Funding From the State of
Alaska Department of Natural Resources, Division of Forestry, to Support Spruce Beetle
Mitigation and Hazard Fuel Reduction. (Administration)
3. APPROVED UNANIMOUSLY. Action/Approval – Executing an Amendment to the Facility
Management Agreement with Kenai Chamber of Commerce and Visitor Center, Inc. to
Extend the Current Agreement to June 30, 2023. (Administration)
4. APPROVED UNANIMOUSLY. Action/Approval – Approving Official Bond Amounts for
City Manager, City Clerk and Finance Director. (Administration)
5. BOARD OF ADJUSTMENT SCHEDULED FOR 6/20/2022 AT 7:00 P.M. Discussion –
Scheduling a Board of Adjustment Appeal Hearing. (City Clerk)
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
81
Kenai City Council - Regular Meeting Page 4 of 4
June 01, 2022
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
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 OR
https://us02web.zoom.us/j/89499065354 Dial In: (253) 215-8782 or (301) 715-8592
Meeting ID: 894 9906 5354 Passcode: 382673 Meeting ID: 894 9906 5354 Passcode: 382673
82
April
Enplanement Report
Month RAVN
ALASKA
GRANT
AVIATION
Total
2022 2021 Change
from 2021
January 2,882 1,764 4,646 3,389 1,257
February 3,122 1,573 4,695 3,112 1,583
March 3,438 1,911 5,349 4,127 1,222
April 3,430 1,720 5,150 4,035 1,115
May 0 4,464
June 0 5,953
July 0 9,259
August 0 10,035
September 0 6,500
October 0 5,596
November 0 5,803
December 0 5,571
Totals 12,872 6,968 19,840 67,844 5,177
Terminal - Vehicle Parking Revenues
April
FY21 $11,757 FY21 Total $109,923
FY22 $20,530 FY22 YTD $169,633
Ravn
3,430
66.60%
Grant
1,720
33.40%
April 2022
5,150
0
2500
5000
7500
10000
12500
15000
17500
20000
22500
Vehicle Parking Revenues
FY21
FY22
83