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HomeMy WebLinkAbout2004-11-10 Airport Commission Packet - Special Meeting KENAI AIRPORT COMMISSION SPECIAL MEETING NOVEMBER 10, 2004 KENAI CITY COUNCIL CHAMBERS 6:00 P.M. AGENDA ITEM 1: ITEM 2: ITEM 3: ITEM 4: CALL TO ORDER AND ROLL CALL AGENDA APPROVAL NEW BUSINESS Discussion/Recommendation -- Hangar Purchase and Lease/Lot 2, Block 3, General Aviation Apron. ADJOURNMENT PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE ~AEET~N~: CAROL-- 283-8231 OR, REBECCA/I~ARY-- 283-7951 CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794 TELEPHONE 907-283-7535 FAX 907-283-3014 ~ M emOranclum Date: rol For' Froml October 25, 2004 Kenai Airport Commission Special Meeting of November 10th // / Klm Howard, Assistant to the City Manager ~ Hangar Purchase and Lease of Lot 2, Block 3, General Aviation Apron The City of Kenai has solicited for sealed bids for the purchase of a hangar (formerly known as the U.S. Fish & Wildlife Hangar) and the lease of the surrounding land (Lot 2, Block 3, General Aviation Apron). Bids are due on November 9th. The bidder (if any) offering the highest one-time premium will be awarded ownership of the hangar and a lease as outlined in the bid package. A copy of the Instructions to Bidders is attached. Provision C (1) states the term of the lease is dependent upon the amount of the improvements made by the successful bidder. The one-time premium paid will be considered as the purchase of improvements and will count toward determining the lease term as shown on Attachment A. The appraisal has been approved by the Federal Aviation Administration. The minimum acceptable bid for the one-time premium is $53,000, the value determined by the appraisal. The lease rate is based on the fair market value of the land, $77,000. After review by the Airport Commission, the application (if any) will be forwarded to the Planning and Zoning Commission to determine if the intended use complies with the zoning ordinance and Comprehensive Plan of the City. Provision C (3) lists the authorized uses for the property. The Airport Commission needs to determine if the intended use complies with the Airport Masterplan. The recommendations of both commissions will be forwarded to the Kenai City Council for lease application approval. /kh Attachment CITY OF KENAI KENAI MUNICIPAL AIRPORT HANGAR PURCHASE AND LEASE OF Lot 2, Block 3 General Aviation Apron INSTRUCTIONS TO BIDDERS The City of Kenai, Kenai Municipal Airport (City), is soliciting sealed bids for the purchase of a hangar and the lease of surrounding land (Lot 2, Block 3 General Aviation Apron). The bid award, if any, will be to the responsive bidder offering the highest one-time premium in addition to the lease rate. The lease rate is set at five-year increments of 6% of fair market value of the property (not including the hangar). The estimated lease rate for the first five (5) years will be $4,620 per year, plus applicable sales tax. The bidder offering the highest one-time premium will be awarded ownership of the hangar and a lease at a term set by the dollar amount of improvements to the property as described in Section C1 below. The term of the lease is dependent on the dollar amount of the investment or improvements on upon the property by the successful bidder, according to the matrix shown in Attachment A. The one-time premium (i.e. hangar purchase price) will be considered pan of the investment in the property for purposes of determining lease term. Bidders must follow these instructions carefully. The City of Kenai (City) may reject a bid if the bidder fails to follow these instructions. The City is not bound by any oral explanation or instruction given by its officials. It is the bidder's responsibility to carefully examine all documents relating to this bid offering and to judge for itself all conditions that affect its bid. Failure on the part of any bidder to thoroughly examine the documents is not grounds for any claim that the bidder did not understand the conditions of the bid offering. All bidders should inspect the offered premises to thoroughly familiarize themselves with the site conditions and the building. The building will be available for inspection by appointment Monday through Friday between 9:00 a.m. and 5:00 p.m. local time. For an appointment, call Mary Bondurant at 283-7951 ext. 22. The City will consider any suggestion or comment conceming the bid documents but they must be submitted in writing to Kim Howard, Assistant to the City Manager, 210 Fidalgo Avenue, Kenai, AK 99611, fax number (907) 283-3014, by 1:00 p.m., local time on November 2, 2004. The bid documents, including the Sample Lease Agreement, stand as written unless changed by a written notice or addendum issued by the City and sent to all parties provided the bid documents. The Sample Lease Agreement (Attachment B), with the appropriate blanks filled in at the time of the award, is the lease the successful bidder and the City will sign unless previously changed by addendum. The Sample lease Agreement is not subject to negotiation by the successful bidder. 'KENAI MUNICIPAL AIRPORT INSTRUCTION TO BIDDERS Page 1 of 7 The bidder must be able to demonstrate to the City that it is capable of performing all of the terms and conditions of the lease being offered and the bidder's intended use of the premises. The City may request that bidders furnish additional information, including a current financial statement, to determine if the bidder is capable. The City encourages all interested parties, including Disadvantaged Business Enterprises, to submit bids. The City will not exclude bidders on the grounds of race, color, religion, sex, marital status, age or national origin. A. PREBID CONFERENCE Bidders are encouraged to attend a prebid conference scheduled for 4:00 p.m., local time, on November 3, 2004, in the Airport Manager's Office, Kenai Airport Terminal, 305 N. Willow, Suite 200, Kenai, Alaska. City personnel will conduct the conference, provide a general overview, accept questions and comments and provide a tour of the offered premises. B. BIDS Bidders must submit bid~ on forms fumished by the City. The forms must be properly executed as described in the documents and delivered or mailed to City of Kenai, ATTN: Kim Howard, 210 Fidalgo Avenue, Kenai, AK 99611. All bids must be received by Ms. Howard in the City Manager's office no later than 10'00 a.m., local time, on November 9, 2004, at which time they will be publicly opened and read. The City will retum any bid received after the designated time. Bidders must submit bids in a sealed envelope clearly marked on the outside with the bidder's name and the following label: Lot 2, Block 3 General Aviation Apron (Plat No. 73-68) Hangar Purchase and Building Lease Bid Kenai Municipal Airport If the bid is mailed, the sealed envelope containing the required bid documents must be enclosed in a second envelope for mailing. The City is not responsible for delayed or misdirected mail. The City will not accept electronic or telephonic bids. C. LEASE INFORMATION Some provisions of this offering are summarized below. Complete details of the lease agreement are contained in the Sample Lease Agreement. In case of any conflict between this invitation and the Sample Lease Agreement, the lease controls. le Lease Term: The term of the-lease is dependent on the dollar amount of the improvements made upon the property by the successful bidder. The one-time KENAI MUNICIP~ AIRPORT INSTRUCTION TO BIDDERS Page 2 of 7 premium paid by the successful bidder will be considered as the purchase of improvements and will count toward determining the lease term. The schedule determining the lease term is attached to this invitation to bid as Attachment A. . Premises' The premises is Lot 2, Block 3 General Aviation Apron (Plat No. 73- 68) and the hangar on the property o Authorized Uses' The fight to use the property for one or more of the following purposes' a) b) c) Repair, maintenance, or storage of aircraft; Air cargo processing; Operation of an office may be included to support the above uses. . Rent: The successful bidder will pay a lease amount equal to 6% of the fair market value as determined by an appraisal approved by the Federal Aviation Administration. The estimated initial five-year lease rate will be $4,620.00 per year. The lease amount will be reset every five years by another appraisal during the term o:f the lease. 5~ One Time Premium: The successful bidder will be determined by the highest bidder for the one time premium. The highest bidder will be awarded the lease in addition to ownership of the hangar. In addition to the one time premium, the successful bidder will pay the yearly lease rate as determined above in Paragraph C4. , Bid Deposit: A bid deposit of $2,000 must accompany the bid submittal (per KMC 21.10.035). De REQUIREMENTS FOR A COMPLETE BID Bidders must submit the following items to constitute a complete bid. The City may reject a bid as non-responsive if the bidder fails to submit any item. o A completed and signed Bid Submittal (Attachment C); A completed and signed lease application (Attachment D); and The bid deposit. All information submitted with a bid becomes the property of the City when received by the City and public information after the City opens the bid. 'KENAI MUNICIPAL AIRPORT INSTRUCTION TO BIDDERS Page 3 of 7 E® ADDENDA REQUIREMENTS Bidders must acknowledge receipt of any addenda on the Bid Submittal form. Failure to acknowledge addenda, if any, may make a bid non-responsive. The City will make every effort to ensure that bidders receive any addendum issued. The City will send addenda to the address furnished by potential bidders. F. AUTHORIZED USES The authorized uses outlined in Instructions to Bidders (Item C3) of the Invitation to Bid are the only available uses of the premises. Any bid offering an alternate use of the premises, or showing additions or changes to these available uses, may result in the rejection of the bid as non-responsive. Ge MINIMUM ONE-TIME PREMIUM The minimum acceptable bid for a one-time premium is $53,000, in addition to the lease rate. Any bid offering an alternative compensation formula will be rejected as non-responsive. H. BID DEPOSIT The bid submittal must include a money order, certified check or cashier's check in the amount of $2,000 and made payable to the City of Kenai from a financial institution doing business in the United States of America. The City will apply the successful bidder's bid deposit to the rents due the City, beginning with the first month of the lease. I. BID REVISION A bidder must use the following procedure to withdraw or revise a bid after it has been submitted to the City: The bidder must submit a written request for return of the bid. The request must have the notarized signature of either the bidder or an authorized representative of the bidder. e The bidder's name must be clearly identifiable on the outside of the bidder's sealed bid envelope. The City will not open any bid envelope for bidder identification or any other reason before the time set for opening bids. The withdrawal or revision must be completed before the time set for opening bids. The City will not accept electronic or telephonic bid revisions or withdrawals. KENAI MUNICIPAL AIRPORT INSTRUCTION TO BIDDERS Page 4 of 7 J. BID OPENING The City will publicly open and read all bids at the bid opening scheduled for 10:00 a.m., local time, on November 9, 2004, in the City Manager's office, at Kenai City Hall, 210 Fidalgo Avenue, Kenai, Alaska. At this time, the City will announce the apparent high bidder. If there is a discrepancy between the words and figures in the bid, the words will govern. After the bid opening, the City will review the bid submittal form and the lease application, and determine the highest responsive bidder. K. TIE BIDS The City will draw lots to break tie bids submitted by responsive bidders. L. LEASE AWARD The lease award, if any, will be made by the City to the highest responsive bidder after approval by the City Council per KMC 21.10.060 and KMC 21.25.010. M. REJECTION OF BIDS The City may reject bids under any of the following conditions: If the bid shows any alteration, erasure, irregularity of any kind, or addition not called for; or if the bid is conditional or incomplete, or if the bid fails to comply with any of the requisite conditions. e If the bidder fails to submit every item specified in Section D of these instructions (Requirements for a Complete Bid). , If the bidder is behind in any payment owed the City; is in default of any obligation to the City; is a defaulter as surety or otherwise on any obligation to the City; or has failed to perform faithfully and diligently any previous agreement with the State. 4~ If the bid is not received at the designated location by the specified time. me If a City investigation fails to satisfy the City that the bidder is capable of performing all the terms and conditions of the lease being offered or the bidder's intended use of the premises. The City reserves the fight to reject any bid or waive any defect when, in its determination, the rejection or waiver is in the City's best interest. The City reserves the fight to reschedule the bid opening or re-advertise the lease offering if all bids are rejected. KENAI MUNICIPAL AIRPORT INSTRUCTION TO BIDDERS Page 5 of 7 N. EXECUTION OF LEASE Within thirty (30) calendar days after receipt of the award notice, the successful bidder will sign and deliver the lease to Klm Howard, Assistant to the City Manager, 210 Fidalgo Avenue, Kenai, AK 99611 and provide payment in full of the one-time premium by money order, certified check or cashier's check payable to the City of Kenai from a financial institution doing business in the United States of America. On execution of the lease by the City, the City will apply the successful bidder's bid deposit to the rents due the City, beginning with the first month of the lease. If the successful bidder fails to sign and retum the lease as required, the City may annul the award and retain the bid deposit as liquidated damages. If the award is annulled, the City may award the lease to the next highest responsive bidder. If any bidder is awarded the lease and refuses or fails to sign and return the lease within thirty (30) calendar days of receipt, that bidder's bid deposit may also be forfeited to the City. The order of succession of bidders may continue until the lease is awarded and executed. O. RETURN OF BID DEPOSITS The City will return bid deposits submitted by unsuccessful bidders as soon as practical after the City executes the lease. P. ADDITIONAL INFORMATION Some provisions of the lease agreement are summarized below. Complete details of the lease are contained in the Sample Lease Agreement. In case of any conflict between this information and the Sample Lease Agreement, the lease controls. Qe HANGAR WILL BE CONVEYED "AS IS" WITH ALL FAULTS, AND NO WARRANTIES WHATSOEVER. THE CITY WILL TRANSFER THE HANGAR "AS IS" WITH ALL FAULTS AND WITH NO WARRANTIES WHATSOEVER. THIS DISCLAIMER INCLUDES, BUT IS NOT LIMITED TO, DISCLAIMING ANY EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OF FITNESS. Re MAINTENANCE, UTILITIES AND SERVICES The successful bidder will be responsible at its own expense for all maintenance, utilities, taxes, services, repair work or other costs needed for the successful bidder's use of the premises. S. ENVIRONMENTAL CONCERNS The City has baseline environmental information available. Please contact Kim Howard at City Hall, 210 Fidalgo, Kenai, Alaska 99611. The successful bidder will be responsible for any KENAI MUNICIPAL AIRPORT INSTRUCTION TO BIDDERS Page 6 of 7 contamination not shown by the established baseline or which is caused or contributed to by the bidders operations or use of the premises. T. ADDITIONAL INFORMATION information showing the location of Lot 2, Block 3 General Aviation Apron is attached as Attachments E and F. DATE: CITY OF KENAI KENAI MUNICIPAL AIRPORT INSTRUCTION TO BIDDERS Page 7 of 7 Fair Market Value, Purchase Price, or Investment of at Least the Following Dollar Amount o.0o 7,500.00 15,000.00 22,500.00 30,000.00 37,500.00 45,000.00 52,500.00 60,000.00 67,500.00 75,000.00 82,500.00 90,000.00 97,500.00 105,000.00 112,500.00 120,000.00 127,500.00 135,000.00 142,500.00 150,000.00 157,500.00 165,000.00 172,500.00 180,000.00 187,500.00 195,000.00 202,500.00 210,000.00 217,500.00 225,000.00 232,500.00 240,000.00 247,500.00 255,000.00 262,500.00 270,000.00 277,500.00 285,000.00 292,500.00 300,000.00 307,500.00 315,000.00 322,500.00 330,000.00 337,500.00 345,000.00 352,500.00 360,000.00 367,500.00 375,000.00 Terms of Years 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 INSTRUCTIONS TO BIDDERS ATTACHMENT A AGENDA KENAI CITY COUNCIL- REGULAR MEETn~G JANUARY 21, 2004 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http' //www. ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed w/th 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. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) o Cliff Hustead, Assistant Chief, Consultation and Training, Alaska OSHA -- Presentation of SHARP Award. ITEM C: REPORTS OF KPB ASSEMBLY, LEGIS~.ATORS AND_ COUNCI~ ITEM D: , e e e o PUBLIC HEARINGS Ordinance No. 2032-2004-- Increasing Estimated Revenues and Appropriations by $51,491 in the General Fund for a Juvenile Justice Grant From the State of Alaska to be Passed Through to the Boys and Girls Club of the Kenai Peninsula. Resolution No. 2004-03 -- Confirm/ng the Assessment Roll on the Pillars Improvement Special Assessment District. Resolution No. 2004-04 -- Confirming the Assessment Roll on the Toyon Way Improvement Special Assessment District. Resolution No. 2004-05 -- Confirming the Assessment Roll on the Schooner Circle Improvement Special Assessment District. Resolution No. 2004-06 -- Confirming the Assessment Roll on the Basin View Improvement Special Assessment District. o Resolution No. 2004-07 -- Transferring $5,400 From the General Fund Contingency Account to the Street Lighting Repair and Maintenance Account. . Continuance of Liquor License -- PROTEST-- Kcnai Joe's Bar/Beverage Dispensary. . *Liquor License / New Permit -- Kenai Landing/Beverage Dispensary Tourism ITEM E: , 2. 3. 4. 5. 6. 7. COMMISSION / COM. MITT~'.~'. I~g'-PORT~ Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board c. Alaska Municipal League Report d. Kenai Chamber of Commerce e. Arctic Winter Games I. TEM F: MINUTES *Regular Meeting of January 7, 2004. ITEM G: CORRESPONDENCE ITEM H: OLD BUSINESS ITEM I: ,I~W BUSINESS Bills to be Pa/d, Bills to be Ratified Purchase Orders Exceeding $2,500 3. *Ordinance No. 2033-2004 -- Increasing Estimated Revenues and Appropriations by $45,000 and Making a Transfer of $5,000 in the General Fund for A FEMA Fire Act Grant From the U.S. Fire ~v ~Administration {USFA) for Mobile Repeaters for City Emergency Vehicles. 4. Approval -- Commission/Committee Reappomtments ~~/~ 5. Discussion -- Commission/Committee Meeting Schedule ~ 7, Discussion -- Park-Naming Policy ITEM J: REPORT OF THE MAYOl~ ITEM K: _ADMINIST~TION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- None Scheduled ITEM M: , ,,,ADJO~ENT MONTHLY PASSENGER ENPLANEMENT ACTIVITY 14,500 13,500 12,500 11,500 10,500 9,500 8,500 7,500 6,500 5,500 4,500 3,500 2,500 1,500 500 7t.2.000 7,859 7,815 7,657I 6,409 i 7,531 9,086 12,736 11,049 I 8,994 8,464 7,612 7,968 .2001.1. 8,300 t 7'137 8,216 I 7,058 1 8,143, I 9,044 12,093 10,807 [ 6,334 7,582 7,345 7,494 m"~O021 7,829 i 7,046 7,371 !6,902:6,880.i 6,740 9,979 8,644 ~ 6,684 6,309 6,023 6,249 1320031 6,454 5,60215,2801 5,375'5,84815,98819,445 7,674 6,43516,12015,820 6,688 5 yr. Change Average Change from 1998- from 5 yr. Month 2003 2002 2002 2002 Average Jan 6,454 7,829 -1,375 8,055 -1,601 Feb 5,602 7,046 -1,444 7,302 -1,700 Mar $,280 7,371 -2,091 8,154 -2,874 Apr $,367 6,902 -1,535 7,032 -1,665 May 5,848 6,880 -1,032 7,702 -1,854 Jun 5,988 6,740 -752 8,815 -2,827 Jul 9,445 9,979 -534 11,962 -2,517 Aug 7,674 8,644 -970 10,432 -2,758 sep 6,435 6,684 -249 7,697 -1,262 oct 6,120 6,309 -189 7,701 -1,581 ~ov 5,820 6,023 -203 7,407 -1,587 ~ 6,688 6,249 -439 7,457 -769 _ .,(als 76,721 86,656 -10,813 99,716 -22,995 hal Municipal Airport MONTHLY PASSENGER ENPLANEMENT ACTIVITY 14,500 13,500 12,500 11,500 10,500 9,500 8,500 7,500 6,500 5,500 4,500 3,5O0 2,500 1,50O 50O 2000 I 7,859 7,815 B20011 8,300 7,137 ! iB2004! 6,326 ~ · , Jan Feb Mar Apr May Jun ; 7,65716,40917,531 9,086 i 7,058 8,143 9,044 8,216 i 7,371 i 6,902 6,880 i 6,740 5,280 i 5,375 ! 5,848, . 5,988 Jul 12,736 i 11,049 8,994 8,464 7,612 7,968 12,093 10,807 6,334 7,582 7,345 7,494 9,979 8,644 6,684 6,309 6,023 6,249 9,445 I 7,674 6,435 6,120 5,820 5 yr. Change Average Change from 2000- from 5 yr. Month 2004 2003 2003 2004 Average Jan 6,326 6,454 -128 7,354 -1,028 Feb 5,602 0 Mar 5,280 0 Apr 5,375 0 .May 5,848 0 Jun $,988 0 Jul 9,445 0 Aug 7,674 0 Sep 6,435 0 Oct 6,120 0 Nov 5,820 0 Dec 6,688 0 Totals 76,729 -1,028 hal Municipal Airport .Il nal Municipal Airport II II Monthly Report II Airport Businesses' Airport Manager met with representatives from Ron's Rental to discuss the proposed sub-lease to Fed-Ex. Re-modeling will start the first of next year. Also discussed were access issues from the taxiway to the lot. The aircraf~ access to the lot will require some work on the airport property between the taxiway and the lot line. The tenant is responsible for improvements to the lot. When a written request for sub-lease is received, the City Engineer will assist in developing a recommendation for review by Commission and Council. We anticipate a small construction project to provide access between the taxiway and lot while preserving the integrity of the drainage ditch. The cost to the airport will be limited to that portion of the improvements that are on airport property. The lessee expects to fund all improvements including fence relocation and additional gates that occur on the lease lot. Airport Security' We continue to wait for a Congressional vote on the reauthorization bill which includes language to federalize the Kenai, Homer and Valdez airports. Security plans are being prepared and contingency plans are in place. As of this writing, we do not know if the language will remain in the bill and, if it does, how the Department of Homeland Security will interpret federalization. The possibilities range from no change to full passenger screening. We expect something in-between with little noticeable impact on the traveling public. Winter Wonder Land' It is too early to predict a white Christmas but it looks more promising than last year. Our first snow event went smoothly and gave us the opportunity to work through the bugs in the system. All in all things went very well thanks to help from the Street Department. Loft Goode has been working hard to get lights up in the Triangle and around the Terminal and Bunny Swan has agreed to do window paintings for us again. FAA Projects: The Security Camera project is waiting for the Design Build Ordinance to take effect. Council can expect a request in the December 3 packet to proceed with that project as a design-build. The security fencing and gates are still in design as is the Terminal sidewalk and driveway modifications. I sincerely hope both projects are on the street soon after the first of the year. I will also be meeting with the FAA to discuss the suggestions generated at the work session on the Supplemental Planning Analysis. Enplanements: The latest report is in your packet. The continuing decline in passenger enplanements will soon be a factor for future FAA grant funding which is partially based on passenger numbers. Future entitlement funds will decrease once enplanements are factored in. The FAA bases funding on numbers from two years previous, so we have not yet seen the full impact of 9-11 and the subsequent fare increases. nal Municipal Airport Airport Manager's Monthly Report December 11, 2003 Update of Airport Supplemental Planning Assessment: City Planner Marilyn Kebschuli and I met with the FA~ on November 20 to discuss possibilities for Airport Planning funding. It appears that the first phase, primarily gathering data, will be eligible under the current grant. Additional planning can be funded through a new grant. Ms. Kebschull and I are working on the RFP documents to encompass elements discussed at the Airport Commission/Council work session. FA~ will review the RFP and make a final determination on grant eligibility. Marilyn and I believe we have a good understanding of FAA's requirements and will wor0 the RFP appropriately to receive the highest level of funding. Airport Businesses' The following report appeared last month. Additional information is in this packet under New Business. ,Airport Manager met with representatives from Ron's Rental to discuss the proposed sub-lease to Fed-Ex. Re-modeling will start the first of next year. Also discussed were access issues from the taxiway to the lot. The aircraft access to the lot will require some work on the airport property between the taxiway and the lot line. The tenant is responsible for improvements to the lot. When a written request for sub-lease is received, the City Engineer will assist in developing a recommendation for review by Commission and Council. We anticipate a small construction project to provide access between the taxiway and lot while preserving the integrity of the drainage ditch. The cost to the airport will be limited to that portion of the improvements that are on airport property. The lessee expects to fund ali improvements including fence relocation and additional gates that occur on the lease lot. Airport Security: Congress has approved the federalization of Kenai, Homer and Valdez airport. As of this writing TSA has not provided details of what this will mean to Kenai ,Airport. I am continuing communication with Era Aviation and the TSA as they negotiate the exact extent of screening. Winter Weather: Snow and freezing rain continues to affect our overtime budget. The airport crews with the help of Street, Water and Sewer and Treatment Plant personnel have done a commendable job of keeping the airport open and safe. If Council could limit snowfall in the City of Kenai to weekdays between 8 am and 5 pm, it would be a big help to our budget. Terminal Interior Decorations' With the assistance of the City Manager, an agreement has been reached with Roger and Linda Petrey, owners of Wings Family Diner to decorate the rental space in the Terminal. The Petrey's are allowing airport personnel access to the space and the airport is assuming costs of all improvements. The vinyl banner and all posters and signs will be removed and the interior of the windows covered with blue paper to hide the stored items. Bunny Swan will then decorate the windows and include an attractive sign advertising Wings Diner and its location in the Terminal. The total cost should be less than $500 not including employee time. Other Terminal Interior Issues' I also reviewed other signage in the Terminal. The large letters on the Alaska's Best Travel windows have been in place since the lease started. When viewed from the interior of the Terminal they are not as noticeable as they are from the outside ramp. I recommend that we incorporate stronger language into the lease documents concerning signage and appearance.. I would also recommend committee approach to approval or disapproval of esthetics. It is problematic to have the Airport Manager solely responsible for those determinations and has the potential to cause unnecessary strife between the Airport Manager and tenants. By incorporating a committee approach, as is used in many subdivisions, you avoid the accusation that decisions are based on personal likes and dislikes or even personalities. nal Municipal Airport Update of Airport Supplemental Planning Assessment: Administrative Assistant are developing the RFP. Airport Manager and Airport Airport Security: Congress has approved the federalization of Kenai, Homer and Valdez airports. Era Aviation has requested an exemption for Kenai. As of this writing, the Department of Homeland Security has not issued a decision. FAA Inspections: The annual Airport Certification Inspection is scheduled for January 26- 30. All airport staff and Fire Department personnel are working to ensure everything is in order for this very important inspection. Airport Maintenance: Snow and ice control continues to be a challenge both for manning and budgetary reasons. The crews have done a good job of keeping ahead of the weather and everyone is working hard to maintain our reputation of the best-maintained airfield on the Peninsula. Upcoming Projects: Airport Commission is scheduled to review plans for the Terminal Driveway/Sidewalk/Parking Lot upgrades, Security Cameras and Security Gate Modification Projects at the February Commission Meeting. Terminal Janitorial Contract: Over the last three months the office has received numerous complaints from tenants and the traveling public concerning the lack of satisfactory janitorial service. I have had several meetings and innumerable telephone conversations with our current contractor concerning what is, in my opinion, substandard performance. I am discussing options with the City Attorney and City Manager. Once again, the airport terminal is a show place for the City of Kenai and it should reflect the pride we have in our City and community.