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HomeMy WebLinkAbout2024-05-09 Airport Commission PacketKENAI AIRPORT COMMISSION REGULAR MEETING MAY 9, 2024 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 *Telephonic/Virtual Information on Page 2* http://www.kenai.city A.CALL TO ORDER 1.Pledge of Allegiance 2.Roll Call 3.Agenda Approval B.SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 1.Scott Bloom, Contracts – Leases and Special Use Permits C.UNSCHEDULED PUBLIC COMMENT (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D.APPROVAL OF MINUTES 1.April 4, 2024 ..................................................................................................... Pg. 3 E.UNFINISHED BUSINESS F.NEW BUSINESS 1.Discussion/Recommendation - Recommendation to Council on Enactment of Ordinance No. 3415-2024 - Authorizing a Donation of Surplus Sand from the Kenai Municipal Airport to the Triumvirate Theatre for the Construction of a New Theatre. ......................................................................................................................... Pg. 6 2.Discussion/Recommendation - Recommendation to Council on Enactment of Ordinance No. 3416-2024 - An Ordinance Repealing, Reenacting and Renaming Kenai Municipal Code Chapter 1.90 - Standard Procedures For Boards, Commissions and Committees, Enacting Chapter 1.95 - Standing Advisory Commissions, Repealing Chapters 11.10 - Harbor Commission, Chapter 19.05 Parks And Recreation Commission, Chapter 21.20 Airport Commission, Enacting Section 14.05.050 - Planning and Zoning Commission - Qualifications and Membership, and Approving Amendments to the Council on Aging Commission’s By- Laws to Organize Streamline, and Improve the Efficiency of the City’s Standing Commissions.………………………………………………………………………..Pg. 11 3.Discussion/Recommendation – Recommending Council Approve the Fourth Amendment, Extending the Reborn Again Janitorial Contract in the Airport Terminal for One Additional Year……………………………………………………………..Pg. 56 4.Discussion/Recommendation – Recommending Council Approve Airport Commission 2024 Annual Work Plan. 5.Discussion/Recommendation – Recommending Council Approve a Lease of Airport Reserve Land for Property Described as Lot 5A, Block 1, FBO Subdivision 2018 Replat to Schilling Rentals, LLC……………………………………………Pg. 59 1 6. Discussion/Recommendation – Recommending Council Approve a Lease of Airport Reserve Land for the Property Described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5 to D & M Land Company, LLC…………………………Pg. 95 7. Discussion/Recommendation – Recommending Council Award a Special Use Permit to Crowley Fuels LLC for 35,000 Square Feet of Apron Space……..…Pg. 131 8. Discussion/Recommendation – Recommending Council Award a Special Use Permit to United Parcel Service Co., Inc. for 4,000 Square Feet of Apron Space for Aircraft Loading and Parking……………………………………………………..Pg. 142 9. Discussion/Recommendation – Recommending Council Award a Special Use Permit to Empire Airlines, Inc. for 11,250 Square Feet of Apron Space for Aircraft Parking……………………………………………………………………………....Pg. 152 10. Discussion/Recommendation – Recommending Council Award a Special Use Permit to Everts Air Fuel, Inc. for 30,000 Square Feet of Apron Space……...Pg. 164 G. REPORTS 1. Airport Manager 2. Commission Chair 3. City Council Liaison……………………………………………………………….Pg. 175 H. ADDITIONAL PUBLIC COMMENT I. NEXT MEETING ATTENDANCE NOTIFICATION – June 13, 2024 J. COMMISSION QUESTIONS AND COMMENTS K. ADJOURNMENT L. INFORMATIONAL ITEMS 1. Airport Administrative Report…………………………………………………….Pg. 181 Registration is required to join the meeting remotely through Zoom. Please use the link below to register: https://us02web.zoom.us/meeting/register/tZ0qdO2rpjwsHNVcdCusjamr984UET5jaq78 2 KENAI AIRPORT COMMISSION – REGULAR MEETING APRIL 11, 2024 – 6:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR GLENDA FEEKEN, PRESIDING Airport Commission Meeting Page 1 of 3 April 11, 2024 ACTION MINUTES A. CALL TO ORDER A Regular Meeting of the Airport Commission was held on April 11, 2024, in the Kenai City Council Chambers, Kenai, AK. Chair Feeken called the meeting to order at approximately 6:13 p.m. 1. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Glenda Feeken, Chair Paul Minelga, Vice Chair James Bielefeld James Zirul Joshua Daily Dan Pitts (electronic participation) A quorum was present. Absent: Jacob Caldwell Also in attendance were: Derek Ables, Airport Manager Sarah Conley, Airport Administrative Assistant Henry Knackstedt, City Council Liaison 3. Agenda Approval Chair Feeken noted a request to remove item F2. Recommending Council Approve Airport Commission 2024 Annual Work Plan. MOTION: Commissioner Bielefeld MOVED to approve the agenda as revised. Commissioner Daily SECONDED the motion. VOTE: There being no objection; SO ORDERED. B. SCHEDULED PUBLIC COMMENTS - None. C. UNSCHEDULED PUBLIC COMMENTS - None. D. APPROVAL OF MINUTES 1. March 14, 2024 MOTION: Commissioner Daily MOVED to approve the March 14, 2024 Airport Commission minutes. Commissioner Zirul SECONDED the motion. 3 Airport Commission Meeting Page 2 of 3 April 11, 2024 VOTE: There being no objection; SO ORDERED. E. UNFINISHED BUSINESS - None. F. NEW BUSINESS 1. Discussion/Recommendation - Recommending Council Award a Special Use Permit to Jeremy Mastre, DBA: River Rock Outdoors, LLC for Commercial Operations at the Float Plane Basin. MOTION: Commissioner Bielefeld MOVED to recommend City Council award a Special Use Permit to Jeremy Mastre, DBA: River Rock Outdoors, LLC for Commercial Operations at the Float Plane Basin. Commissioner Zirul SECONDED the motion. Airport Manager Ables gave a staff report from information provided in the packet. MOTION TO AMEND: Commissioner Bielefeld MOVED to amend the Special Use Permit as follows: Page 1, paragraph 1 to read, “Premises. Permittee shall have the [NON-]exclusive right to use float plan base parking spot 9 as described in the attached Exhibit A for the uses identified in this Permit.” Commissioner Daily SECONDED the motion. It was clarified that “Kenai Aviation” on page seven, in paragraph 25 of the Special Use Permit was a technical error that will be corrected on the final permit. VOTE ON AMENDMENT: There being no objection; SO ORDERED. MOTION TO AMEND: Vice Chair Minelga MOVED to amend the Special Use Permit as follows: Page 3, paragraph 7 to read, “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 activities and general use of the Airport by Permittee germane to a commercial entity.” Commissioner Bielefeld SECONDED the motion. VOTE ON AMENDMENT: There being no objection; SO ORDERED. VOTE ON THE MAIN MOTION AS AMENDED: There being no objection; SO ORDERED. 2. Discussion/Recommendation – Recommending Council Approve Airport Commission 2024 Annual Work Plan. [Clerk’s Note: This item was removed from the agenda during the approval of the agenda.] G. REPORTS 1. Airport Manager – Airport Manager Ables summarized his report as provided in the packet. 2. Commission Chair – No report. 3. City Council Liaison – Council Member Knackstedt reported on recent City Council actions. H. ADDITIONAL PUBLIC COMMENTS - None. 4 Airport Commission Meeting Page 3 of 3 April 11, 2024 I. NEXT MEETING ATTENDANCE NOTIFICATION - May 9, 2024 Vice Chair Minelga noted that he might be absent. J. COMMISSION QUESTIONS AND COMMENTS Commissioner Bielefeld noted that he would like to review a generic Special Use Permit contract with the City Attorney. He noted that in the past, the Airport Commission had reviewed and recommended updates to airport regulations; he requested to go over them again at the next meeting or to consider it as a goal. He thanked staff for including enplanement data in the packet. K. ADJOURNMENT L. INFORMATIONAL ITEMS 1. Airport Administrative Assistant Report, April 2024 There being no further business before the Airport Commission, the meeting was adjourned at 7:07 p.m. I certify the above represents accurate minutes of the Airport Commission meeting of April 11, 2024. ___________________________________ Meghan Thibodeau Deputy City Clerk 5 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 Thru: Derek Ables – Airport Manager Date: April 24, 2024 Subject: Donation of Surplus Airport Sand to the Triumvirate Theatre for the Construction of a New Theatre in the City of Kenai. By Ordinance 3219-2021, the City of Kenai donated approximately two acres of land with an estimated value of $200,000 to Triumvirate Theatre, a 501(c)3, for the construction of a new theatre in the City after their facility was destroyed by fire on February 20, 2021. In addition to this land donation, the Triumvirate Theatre has requested he donation of approximately 5,000 cubic yards of surplus sand from the Kenai Municipal Airport for the project. Federal Aviation Administration grant assurances require the City to manage assets of the airport for the betterment and benefit of the airport. A community purpose exemption is needed to maintain compliance with FAA grant assurances in order to donate the requested sand. At the April 3, 2024 Kenai City Council Meeting, authorization was provided to seek a community purpose exemption from the FAA to donate surplus sand to the project. The Airport’s request for a community purpose exemption was approved. The Airport has determined the sand to be surplus due to its quality and the cost to refine the sand in order to meet FAA specifications for use on the airfield. The sand is also located in an easily accessible area, is within a short haul route to the construction site, and its removal is not expected to cause disruption to Airport operations. Surplus sand from the Airport is valued at $6.50 per yard and has been sold in the past in support of development on the Airport and other City projects with compensation paid to the Airport by developers or the City’s General Fund. The estimated value of the requested donation is $32,500. If approved, the requested donation of sand would be the Municipal Airport 6 www.KenaiAirport.com first such donation to a not-for-profit organization utilizing a community purpose exemption. Does the Airport Commission recommend approval of Ordinance No. 3415-2024? An ordinance Authorizing a donation of surplus sand from the Kenai Municipal Airport to the Triumvirate theatre for the construction of a new theatre. Attachments- Donation Letter, Ordinance No. 3415-2024 7 h o m e o f t h e a l a s k a c h i l d r e n ’ s i n s t i t u t e f o r t h e p e r f o r m i n g a r t s p.o. box 322 kenai, alaska 99611 907.394.1159 www.triumviratetheatre.org hereliesdrama@hotmail.com Dear Council Members: Thank you so much for considering approving the donation of sand from the airport for the construction of the new performing arts center here in Kenai. The construction and operation of this new children’s theater will be a tremen- dous community benefit to the city of Kenai. We greatly appreciate the city’s wiliness and commitment to this project. The donation of land to build this new facility is a great blessing. Unfortunately, it is going to cost a great deal to develop this property because the water table is so high. Originally, the cost of developing the property was over $800,000, a staggering sum, especially for us. Thanks to our architect and the city’s administration, we were able to reduce parking, utilizing street parking to meet the require- ment. This greatly reduced the area that had to be developed. However, the estimated cost of developing the lot is still $408,000. I am looking for anyway to reduce that amount. In order to pay for the construction of the $3.5 million dollar building that has already begun, we are going to have to borrow up to $500,000 from the Rasmuson Foundation’s PRI program. Although this loan program has an incredibly favorable rate over a 12-year period, it still is going to necessitate a monthly payment. The less Triumvirate has to bor- row from this program, the more sustainable our operations in Kenai will be after the building is completed early next year. I don’t want to build a multi-million dollar building in Kenai, just to struggle to keep the doors open and provide theater programs for the kids here and the surrounding area. The lower the mortgage payment on the building, the more we can put into the children and youth of Kenai. Thank you for considering helping us make our operations in Kenai as sustainable as possible. Every little bit helps and will make a measurable difference in providing the best service to kids here in our community. Best, Joe Rizzo Executive Director April 24, 2024 triumvirate THEATRE 8 Sponsored by: Administration New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3415-2024 AN ORDINANCE AUTHORIZING A DONATION OF SURPLUS SAND FROM THE KENAI MUNICIPAL AIRPORT TO THE TRIUMVIRATE THEATRE FOR THE CONSTRUCTION OF A NEW THEATRE. WHEREAS, by Ordinance 3219-2021, the City of Kenai donated approximately two acres of land with an estimated value of $200,000 to Triumvirate Theatre, a 501(c)3, for the construction of a new theatre in the City after their facility was destroyed by fire on February 20, 2021; and, WHEREAS, the construction of the new Triumvirate Theatre is estimated to need 5,000 cubic yards of sand; and, WHEREAS, at Triumvirate’s request, the administration had previously agreed to sell surplus sand from the Kenai Municipal Airport for the project at a cost of $6.50 a yard; and, WHEREAS, the Airport has determined the sand to be surplus and is no longer using this sand in its operations due to its quality; and, WHEREAS, the sand is located on the airport in an area easily accessible, not requiring airport resources to move, and its removal is not expected to cause disruptions to airport operations; and, WHEREAS, the total value of the sand needed is estimated to be $32,500; and, WHEREAS, Federal Aviation Administration (FAA) grant assurances require the City to manage assets of the Airport for the betterment and benefit of the Airport; and, WHEREAS, at the request of Triumvirate Theatre and approval by the City Council at its April 3, 2024 meeting, the administration requested a community purpose exemption from the FAA for the ability to donate sand to the construction project which was approved by the FAA on April 10, 2024; and, WHEREAS, surplus sand from the Airport has been sold in the past to developers of airport projects and the City’s General Fund for City projects and, if approved, the requested donation of sand would be the first such donation to a not-for-profit organization utilizing the FAA’s community purpose exemption; and, WHEREAS, at its meeting on May 9, 2024, the City of Kenai Airport Commission __________________ enactment of this Ordinance; and, WHEREAS, donation of surplus sand in support of the Triumvirate Theatre’s efforts to construct a new theatre in Kenai is a benefit to the City by enhancing the quality of life for its resident, the expansion of economic activity and is in the best interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. That the City Manager is authorized to donate up to 5,000 cubic yards of sand to the Triumvirate Theatre from the Kenai Municipal Airport. Section 2. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder ~ K(;NAI 9 Ordinance No. 3415-2024 Page 2 of 2 New Text Underlined; [DELETED TEXT BRACKETED] of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 3. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect immediately upon enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 15TH DAY OF MAY, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: May 1, 2024 Enacted: May 15, 2024 Effective: May 15, 2024 10 MEMORANDUM TO: Chair Feeken and Airport Commission Members FROM: Shellie Saner, City Clerk DATE: April 24, 2024 SUBJECT: Discussion/Recommendation - Recommendation to Council on Enactment of Ordinance No. 3416-2024. On January 11, 2024 City Manager Eubank, City Attorney Bloom and I met with your Commission in a work session to discuss possible code changes to KMC 21.20 - Airport Commission and KMC Chapter 1.90 - Standard Procedures for Boards, Commissions and Committees. The code changes discussed with your Commission were drafted and brought back for the Commissions consideration and recommendation during the March 14, 2024 meeting. The Commission unanimously recommended Council enact the proposed amendments to both KMC 21.20 and KMC 1.90. This item is being brought back for recommendation because there have been substantial structural and organization changes since the Commission’s original recommendations. These changes were made based on similar meetings held with all advisory bodies of the City and the recommendations received indicated the need for more structural and organizational amendments to code. Portions of the proposed Ordinance effecting the Airport Commission include a complete repeal, reenactment and renaming of Chapter 1.90 - Standard Procedures for Boards, Commissions and Committees to new Chapter 1.90 - General Standards for Standing Advisory Commissions; enactment of a new Chapter 1.95 - Standing Advisory Commissions; repeal of Chapter 21.20 - Airport Commission; and enactment of a new section within the new Chapter 1.95, Section 1.95.010 - Airport Commission. During your March 14, 2024 meeting the Commission recommended amendments to 1.90.010 - Creation and to 1.90.020 - Duties, shown in Attachment C. The following outlines those recommendations and how they were included in the proposed ordinance: Amendments as recommended by the Commission to Chapter 1.90 - Standard Procedures for Boards, Commissions and Committees: • 1.90.010 - Creation: The recommendation was to amend the first sentence by adding the underlined words and deleting the [BRACKETED WORDS], as follows: “All boards, commissions and committees created by the Council of the City of Kenai, [SHALL] unless otherwise specified, will consist of seven [7] members who shall be nominated by the Mayor and confirmed by the City Council from applications submitted to the City Clerk” This recommendation was included in a modified version within the new 1.90.020 - Members, Appointments and Qualifications as paragraphs (a) and (b). City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city 11 Page 2 of 2 • 1.90.020 - Duties: The recommendation was to amend the second sentence by adding the words shown in underlined, as follows: “They shall act in an advisory capacity to City Council and Administration unless otherwise specified in the City Code.” This was included in a modified form within new 1.95.010 - Airport Commission in various forms by changing terms throughout from “advise the Council” to “advise the Council and Administration”. Amendments as recommended by the Commission to Chapter 21.20 - Airport Commission: The Airport Commission recommended amendments to 21.20 - Airport Commission, the new Ordinance proposes to repeal Chapter 21.20 completely; however, those recommendations have been included in the proposed new 1.95.010 - Airport Commission. The following identifies additional changes since the Commission’s recommendations: • Paragraph 1.95.010(b)(5) is new to the Airport Commission. This language is included in the code for other advisory bodies; and was added to the Airport Commission code to align with the other advisory codes. • Qualifications for Airport Commissioners in 21.20.020 is proposed for repeal within the Ordinance. These provisions were included in the new 1.95.010(c). • Membership seat designation for Airport Commissioners is currently in 21.20.030 and proposed for repeal with this ordinance; this information was included in the new 1.95.010(d) with one exception. Paragraph (f) was omitted, [“ONE NON-VOTING MEMBER, REPRESENTING AD HOC MEMBER OF THE KENAI CITY COUNCIL”] from the new code to reflect current practices related to the one non-voting member representing the City Council being appointed as a Liaison, in accordance with code and Council adopted policy. Attachments: A - City Council Ordinance No. 3416-2024 and Memo. B - Draft Copy of Ordinance No. 3416-2024 with Comments. C - March 14, 2024 Airport Commission Packet Item and Approved Minutes. J(? The City of Kenai I www.kenai .city 12 Sponsored by: City Clerk New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. 3416-2024 AN ORDINANCE REPEALING, REENACTING AND RENAMING KENAI MUNICIPAL CODE CHAPTER 1.90 - STANDARD PROCEDURES FOR BOARDS, COMMISSIONS AND COMMITTEES, ENACTING CHAPTER 1.95 - STANDING ADVISORY COMMISSIONS, REPEALING CHAPTERS 11.10 - HARBOR COMMISSION, CHAPTER 19.05 PARKS AND RECREATION COMMISSION, CHAPTER 21.20 AIRPORT COMMISSION, ENACTING SECTION 14.05.050 - PLANNING AND ZONING COMMISSION -QUALIFICATIONS AND MEMBERSHIP, AND APPROVING AMENDMENTS TO THE COUNCIL ON AGING COMMISSION’S BY-LAWS TO ORGANIZE STREAMLINE, AND IMPROVE THE EFFICIENCY OF THE CITY’S STANDING COMMISSIONS. WHEREAS, the City’s Standing Advisory Commissions are intended to advise the Council and Administration on specific issues based on their experience, expertise and information presented before the commissions; and, WHEREAS, each Advisory Commission has a unique purpose adding value to the decision-making process carried out by the Council and Administration; and, WHEREAS, establishing general standards applicable to all standing Advisory Commissions ensures consistency and efficiency in process; and, WHEREAS, establishing a clear scope of work for each Advisory Commission provides direction to the commissions and ensures effective use of the volunteer commission members time; and, WHEREAS, while current information on various commissions is spread throughout the Code, organizing the code to address the advisory commissions primarily in one place, improves public interface and transparency; and, WHEREAS, a new code section is needed for the Planning and Zoning Commission to carry forward applicable code provisions to the Planning and Zoning Commission, which is unique from other City commissions by virtue of the Commission’s non-advisory duties; and, WHEREAS, the City Manager, City Attorney and City Clerk met with each advisory commission and committee in early 2024 to review and discuss current code provisions applicable to each body; and, WHEREAS, recommended amendments from each commission or committee were drafted, presented and approved by each body; and, WHEREAS, after further consideration of those recommendations, the Administration in an effort to streamline and improve efficiencies for Standing Commissions, reevaluated the process and recommend a complete rewrite and renaming of Chapter 1.90; and, WHEREAS, the Airport Commission at their __________, 2024 regular meeting recommended that the City Council __________ this Ordinance; and, WHEREAS, the Beautification Committee at their__________, 2024 regular meeting recommended that the City Council __________ this Ordinance; and, Attachment A~ K(;NAI 13 Ordinance No. 3416-2024 Page 2 of 13 New Text Underlined; [DELETED TEXT BRACKETED] WHEREAS, the Council on Aging at their __________, 2024 regular meeting recommended that the City Council __________ this Ordinance; and, WHEREAS, the Council on Aging at their February 8, 2024 regular meeting recommended that the City Council approve amendments to the By-Laws of the Council on Aging as attached; and, WHEREAS, the Harbor Commission at their __________, 2024 regular meeting recommended that the City Council __________this Ordinance; and, WHEREAS, the Parks and Recreation Commission at their __________, 2024 regular meeting recommended that the City Council __________this Ordinance; and, WHEREAS, the Planning and Zoning Commission at their __________, 2024 regular meeting recommended that the City Council __________ this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Repeal, Reenact and Rename Chapter 1.90 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 1.90 Standards for Boards, Commissions and Committees is hereby repealed, reenacted and renamed as Chapter 1.90 General Standards for Standing Advisory Commissions, as follows: [CHAPTER 1.90 STANDARD PROCEDURES FOR BOARDS, COMMISSIONS AND COMMITTEES SECTIONS: 1.90.010 CREATION. 1.90.020 DUTIES. 1.90.030 QUALIFICATIONS. 1.90.040 TERMS. 1.90.050 PROCEEDINGS. 1.90.060 SPECIFIC REQUIREMENTS OF BOARDS, COMMISSIONS AND COMMITTEES. 1.90.010 CREATION. ALL BOARDS, COMMISSIONS AND COMMITTEES CREATED BY THE COUNCIL OF THE CITY OF KENAI, SHALL CONSIST OF SEVEN (7) MEMBERS WHO SHALL BE NOMINATED BY THE MAYOR AND CONFIRMED BY THE CITY COUNCIL FROM APPLICATIONS SUBMITTED TO THE CITY CLERK. A CHAIR AND VICE-CHAIR SHALL BE SELECTED ANNUALLY AND SHALL BE ELECTED FROM AND BY THE APPOINTED MEMBERS. AT THE ORGANIZATIONAL MEETING OF COUNCIL, OR AS SOON THEREAFTER AS PRACTICABLE, THE MAYOR, AFTER CONSULTATION WITH COUNCIL, SHALL NOMINATE COUNCIL MEMBERS AS A COUNCIL LIAISON TO ANY BOARD, COMMISSION OR COMMITTEE. AFTER CONFIRMATION BY COUNCIL, THE COUNCIL LIAISON MAY ATTEND ALL MEETINGS OF THE BOARD, COMMISSION OR COMMITTEE. A COUNCIL LIAISON IS NOT A MEMBER OF, AND SHALL HAVE NO VOTING POWER OR ANY OTHER RIGHTS OF MEMBERSHIP ON, THE BOARD, COMMISSION OR COMMITTEE. THE MAYOR AND OTHER COUNCIL MEMBERS MAY ATTEND MEETINGS OF BOARDS, COMMISSIONS OR COMMITTEES WHEN SERVING AS AN ALTERNATE FOR THE COUNCIL LIAISON, OR IN THEIR CAPACITY AS ELECTED OFFICIALS. CITY ADMINISTRATIVE STAFF SHALL ATTEND AND SUPPLY STAFF SUPPORT TO ALL MEETINGS OF BOARDS, COMMISSIONS AND COMMITTEES. 1.90.020 DUTIES. (A) MEMBERS OF BOARDS, COMMISSIONS AND COMMITTEES SHALL BE REQUIRED TO ESTABLISH POLICIES RELATING TO THEIR RESPECTIVE ORGANIZATION. THEY SHALL ACT IN AN ADVISORY CAPACITY TO CITY COUNCIL UNLESS OTHERWISE SPECIFIED IN THE CITY CODE. 14 Ordinance No. 3416-2024 Page 3 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (B) IF THE BOARD, COMMISSION OR COMMITTEE HAS INCOME STATED WITHIN THE CITY OF KENAI ANNUAL BUDGET, SAID BOARD, COMMISSION OR COMMITTEE SHALL WORK WITH THE CITY MANAGER TO ESTABLISH EXPENSES PROJECTED FOR THE YEAR FOR APPROVAL BY THE CITY COUNCIL. 1.90.030 QUALIFICATIONS. (A) A MEMBER OF A BOARD, COMMISSION OR COMMITTEE MUST BE A RESIDENT OF THE CITY OF KENAI, UNLESS THE BOARD, COMMISSION OR COMMITTEE IS SPECIFICALLY EXEMPTED BY COUNCIL FROM THIS REQUIREMENT. THE MEMBER CANNOT BE AN OFFICER OR EMPLOYEE OF THE CITY OF KENAI. IF ANY MEMBER SHOULD MOVE HIS OR HER RESIDENCE FROM THE CORPORATE LIMITS OF THE CITY OF KENAI (IF APPLICABLE), IS AN OFFICER OR EMPLOYEE OF THE CITY OF KENAI, OR SHALL BE ELECTED OR APPOINTED AS AN OFFICER OR EMPLOYEE OF THE CITY OF KENAI, THE SERVICE OF SUCH MEMBER SHALL TERMINATE IMMEDIATELY. HE OR SHE SHOULD BE AWARE THAT HE OR SHE WILL SERVE WITHOUT SALARY, BUT WILL BE REIMBURSED FOR ALL REASONABLE EXPENSES INCURRED IN CONNECTION WITH THIS SERVICE, ONLY AFTER APPROVAL BY COUNCIL. (B) THE BEAUTIFICATION COMMITTEE, AND HARBOR, LIBRARY, AND PARKS AND RECREATION COMMISSIONS MAY AT THE DISCRETION OF THE COUNCIL HAVE UP TO TWO (2) NON-RESIDENT MEMBERS EACH. (C) THE PLANNING AND ZONING COMMISSION MAY HAVE UP TO ONE MEMBER THAT IS NOT A RESIDENT OF THE CITY IF THEY HAVE A CONTROLLING OWNERSHIP INTEREST IN A BUSINESS PHYSICALLY LOCATED IN THE CITY. THIS PROVISION SPECIFICALLY DOES NOT CREATE A DESIGNATED SEAT FOR A NON- RESIDENT. 1.90.040 TERMS. (A) A MEMBER OF A BOARD, COMMISSION OR COMMITTEE SHALL SERVE FOR A TERM OF THREE (3) YEARS, UNLESS THE BOARD, COMMISSION OR COMMITTEE IS SPECIFICALLY EXEMPTED BY COUNCIL FROM THIS REQUIREMENT. AT RENEWAL DATE, THE MAYOR, WITH CONSENT OF THE COUNCIL, CAN REAPPOINT THE MEMBER OR RECOMMEND A REPLACEMENT. (B) THE TERMS OF THE INITIAL BOARD, COMMISSION OR COMMITTEE MEMBER SHALL BE STAGGERED SO THAT THREE (3) MEMBERS WILL BE APPOINTED FOR ONE (1) YEAR; TWO (2) MEMBERS WILL BE APPOINTED FOR TWO (2) YEARS; AND TWO (2) MEMBERS WILL BE APPOINTED FOR THREE (3) YEARS. TERMS SHALL COMMENCE ON JANUARY 1ST OF EACH YEAR. 1.90.050 PROCEEDINGS. (A) ALL BOARDS, COMMISSIONS AND COMMITTEES WILL HAVE REGULARLY SCHEDULED MEETINGS WHICH SHALL BE OPEN TO THE PUBLIC. EXCEPTIONS TO THE MEETING REQUIREMENTS SHALL BE ESTABLISHED BY COUNCIL. PERMANENT RECORDS OR MINUTES SHALL BE KEPT OF ALL PROCEEDINGS AND SUCH MINUTES SHALL RECORD THE VOTE OF EACH MEMBER UPON EVERY QUESTION. EVERY DECISION OR FINDING SHALL IMMEDIATELY BE FILED IN THE OFFICE OF THE CITY CLERK AND SHALL BE A PUBLIC RECORD OPEN TO INSPECTION BY ANY PERSON. ALL ACTS OF BOARDS, COMMISSIONS AND COMMITTEES ARE SUBJECT TO THE PARAMOUNT AUTHORITY OF THE CITY COUNCIL. (B) IF THE COMMISSION, COMMITTEE OR BOARD MEMBER SHALL BE ABSENT, WITHOUT THE BODY EXCUSING THE ABSENCE FOR GOOD CAUSE, FROM MORE THAN ONE-HALF OF ALL THE MEETINGS OF HIS OR HER COMMITTEE, COMMISSION OR BOARD, REGULAR AND SPECIAL, HELD WITHIN ANY PERIOD OF THREE (3) CONSECUTIVE CALENDAR MONTHS, HE OR SHE SHALL THEREUPON CEASE TO HOLD THE SEAT. A COMMISSION, COMMITTEE OR BOARD MEMBER MAY NOT HAVE MORE THAN THREE (3) EXCUSED ABSENCES DURING A TW ELVE (12) MONTH CALENDAR YEAR. (C) IN ALL MATTERS OF PARLIAMENTARY PROCEDURE, THE MOST CURRENT EDITION OF ROBERT’S RULES OF ORDER NEWLY REVISED SHALL BE APPLICABLE AND GOVERN ALL MEETINGS, UNLESS AS SPECIFIED IN KMC 1.15.060, MOTIONS; KMC 1.15.100, SPEAKING; AND KMC 1.15.110, VOTING. 15 Ordinance No. 3416-2024 Page 4 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (D) THE RESPONSIBILITY OF INSURING THAT ALL MEMBERS OF BOARDS, COMMISSIONS AND COMMITTEES RECEIVE A COPY OF THE STANDARD PROCEDURES OF BOARDS, COMMISSIONS AND COMMITTEES LIES WITH THE CITY CLERK. 1.90.060 SPECIFIC REQUIREMENTS OF BOARDS, COMMISSIONS AND COMMITTEES. REQUIREMENTS OF BOARDS, COMMISSIONS AND COMMITTEES AS SET FORTH IN KMC 1.90 ARE GENERAL REQUIREMENTS AND SHALL BE FOLLOWED TO THE EXTENT THAT THEY DO NOT CONFLICT WITH SPECIFIC REQUIREMENTS FOUND IN CODE SECTIONS SPECIFICALLY PERTAINING TO INDIVIDUAL BOARDS, COMMISSIONS AND COMMITTEES.] Chapter 1.90 General Standards for Standing Advisory Commissions. Sections: 1.90.010 Creation. 1.90.020 Members, Appointments and Qualifications. 1.90.030 Terms. 1.90.040 Attendance. 1.90.050 Proceedings. 1.90.060 Liaisons. 1.90.070 Specific Requirements of Standing Advisory Commissions. 1.90.010 Creation. (a) Standing Advisory Commissions of the City may be created or dissolved by an ordinance of the City Council. The following Standing Advisory Commissions have been created by the Council: (1) Airport Commission, as established in KMC 1.95.010; (2) Beautification Commission, as established in KMC 1.95.020; (3) Council on Aging Commission, as established in KMC 1.95.030; (4) Harbor Commission, as established in KMC 1.95.040; (5) Parks and Recreation Commission, as established in KMC 1.95.050; (b) Standing Advisory Commissions are created to advise the Council and Administration as requested and codified. Decisions of Standing Advisory Commissions may be considered by the Council and Administration, but standing advisory commissions may not direct Council or Administration. (c) This Chapter does not apply to the Planning and Zoning Commission which is not solely advisory to the Council and Administration. 1.90.020 Members, Appointments and Qualifications. (a) Unless otherwise specified standing advisory commissions will consist of seven members. (b) Commission members will be nominated by the Mayor and confirmed by the Council from applications submitted to the Clerk. (c) Members must be residents of the City unless otherwise specified and may not be an officer or employee of the City. If any member who is required to reside in the City, moves their residence outside of City limits, or if any member is elected or appointed as an officer or employee of the City, the term of such member will terminate immediately. 16 Ordinance No. 3416-2024 Page 5 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (d) Members will serve without salary, but may be reimbursed for reasonable expenses incurred in connection with the service, only after approval by the Council. (e) After completion of a full or partial term, the Mayor with confirmation of the Council may reappoint the member or recommend a replacement. 1.90.030 Terms. (a) Terms of appointment will be for three-years beginning January 1st and ending December 31st, unless the commission is exempted by the Council from this requirement. (b) When an appointment is to fill a vacancy created prior to the end of a term, the appointment will be for the remainder of that term. (c) When appointments are first made to a newly established commission, the first appointments will be to staggered terms, so that three members will be appointed for one year; two members will be appointed for two years; and two members will be appointed for three years. 1.90.040 Attendance. If a member is absent, without the body excusing the absence for good cause from more than one-half of all the regular or special meetings held within any period of three consecutive calendar months, the member will thereupon cease to hold the seat. A commission member may not have more than three excused absences during a twelve-month calendar year. 1.90.050 Proceedings. (a) Standing Advisory Commissions will have regularly scheduled meetings which will be open to the public. Annual meeting schedules, meeting cancellations or holding special meetings will conform to policy set by the City Council. (b) A chair and vice-chair will be elected annually from and by the appointed members. (c) The most current edition of Robert’s Rules of Order Newly Revised will govern all meetings, unless otherwise specified in KMC 1.15.060 motions; KMC 1.15.100 speaking; and KMC 1.15.110 voting. (d) Permanent record or minutes will be kept for regular and special meetings, and such minutes will record the vote of each member upon every question. (e) Every decision or finding will be filed in the office of the Clerk and will be a public record open to inspection by any person. (f) The Clerk is responsible for ensuring that all members of commissions are provided a copy of this chapter. 1.90.060 Liaison. (a) Council Liaison. At the organizational meeting of Council, or as soon thereafter as practicable, the Mayor, after consultation with Council, will nominate Council Members as a council liaison to Standing Advisory Commissions. The following applies to Council Liaisons: (1) After confirmation by Council, the Council Liaison may attend all meetings of the commission. (2) The Council Liaison is a non-voting member and may not participate in the debate of the commission. (3) Any Council Member may attend meetings or work sessions when serving as an alternate for the Council Liaison, or in their capacity as elected officials. 17 Ordinance No. 3416-2024 Page 6 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (4) Other Council Members may attend a meeting or work session of a commission; however, no more than three Council Members may attend any one meeting without additional public notice. (b) Staff Liaison. City administrative staff will attend and supply staff support to all meetings of the commissions of the City. 1.90.070 Specific Requirements of Standing Advisory Commissions. Requirements of this chapter are general requirements and will be followed to the extent that they do not conflict with specific requirements found in code sections specifically pertaining to individual standing commissions. Section 2. Enactment of Chapter 1.95 of Kenai Municipal Code: That Kenai Municipal Code, Section 1.95 Boards, Commissions and Committees is hereby enacted as follows: Chapter 1.95 Standing Advisory Commissions. Sections: 1.95.010 Airport Commission. 1.95.020 Beautification Committee. 1.95.030 Council on Aging Commission. 1.95.040 Harbor Commission. 1.95.050 Parks and Recreation Commission. 1.95.010 Airport Commission. (a) Purpose. The purpose of the Airport Commission is to advise the Council and Administration on issues involving the Airport and lands held for the benefit of the Airport. (b) Duties and Powers. The Airport Commission will: (1) Review and provide recommendations on the master plan for the airport development. This may include: (i) Development of type, location and sequence of all airport terminal facilities; and, (ii) Development and use of all airport lands. (2) Act in an advisory capacity to the Council and the Administration on matters affecting the airport. (3) Make recommendations to the City Manager on the airport budget. (4) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of recommended capital improvements, which in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year. (5) Provide information and recommendations as requested by the City Council and Administration. (c) Qualifications. Members of the Airport Commission will conform to the requirements as established by KMC 1.90, except that members of the Airport Commission need not be a resident of the City of Kenai. (d) Membership. The Commission will be comprised of seven members who will be chosen so as to represent broadly the following areas: 18 Ordinance No. 3416-2024 Page 7 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (1) One member, fixed base operator (FBO); and, (2) One member, lessee of airport aeronautical lands or terminal facility; and, (3) One member, with expertise in Federal Aviation administration functions; and, (4) One member, representing the Civil Air Patrol; and, (5) Three members, at-large, representing the business and professional community. 1.95.020 Beautification Commission. (a) Purpose. The purpose of the Beautification Commission is to advise the Council and Administration on enhancing the appearance of the City. (b) Duties and Powers. The Beautification Commission will: (1) Advise Administration on seasonal displays and decorations promoted by the City; and, (2) Advise Administration on selection of annual plantings of flora to be displayed in the City; and, (3) Advise Council and Administration on City beautification issues and/or projects as requested by the Council or Administration; and, (4) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of the recommended capital improvements which, in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year. (c) Qualifications and Membership. Members of the Beautification Commission will conform to the requirements of KMC 1.90, except the commission may at the discretion of the Council have up to two non-resident members. 1.95.030 Council on Aging Commission. (a) Purpose. The purpose of the Council on Aging Commission is to advise the Council and Administration on issues involving the Kenai Senior Center and senior citizen programs supported by the City. (b) Duties and Powers. The Council on Aging Commission will: (1) Review and provide recommendations on any master plans for senior citizen services provided by the City. This may include: (i) City owned facilities providing senior citizen services; and, (ii) Development and use of the Senior Center or other facilities owned or managed by the City for the provision of services for senior citizens, excluding Vintage Pointe- Independent Senior Housing. (2) Act in an advisory capacity to the Council and the Administration on matters affecting the Senior Center and senior citizen services provided by the City; and, (3) Make recommendations to the City Manager on the budget for the City’s Senior Center; and, (4) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of recommended capital improvements, which in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year; and, 19 Ordinance No. 3416-2024 Page 8 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (5) Provide information and recommendations as requested by the City Council and Administration. (c) Qualifications and Membership. Members of the Council on Aging Commission will conform to the requirements as established by KMC 1.90, except that members need only to reside on the Kenai Peninsula and 51% of whom must be 55 years or older. The Commission shall be comprised of not more than nine members who will be chosen based on their interest in challenges and opportunities for local senior citizens. (d) Bylaws. The Council on Aging Commission may have its own bylaws approved by the City Council that provide guidance and direction for the Council on Aging Commission to the extent that they do not conflict with the City’s Code of Ordinances. If a conflict should arise between the bylaws and City’s Code of Ordinances, City Code will control. 1.95.040 Harbor Commission. (a) Purpose. The purpose of the Harbor Commission is to advise the Council and Administration on issues involving City harbor facilities and tidal or submerged lands owned by the City. (b) Duties and Powers. The Harbor Commission will: (1) Review and provide recommendations on any master plans for the development of harbor or port facilities for the City. This may include: (i) Development of the type, location, and sequence of all public harbor facilities; and, (ii) The relocation, removal, extension, or change of use of existing harbor facilities. (2) Act in an advisory capacity to the Council and Administration regarding matters related to City harbor facilities, tide or submerged lands. Make recommendations to the Council and Administration relative to the care, control, and development of tide and submerged lands; and, (3) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of the recommended capital improvements which, in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for constructed in which year; and, (4) Review all City leases of City-owned tide and submerged lands and make recommendations to the City Council and Administration; and, (5) Provide information and recommendations as requested by the City Council and Administration; and, (6) Advise and provide recommendations to the Administration as requested on the qualifications for a Harbor Master. (c) Qualifications and Membership. Members of the Harbor Commission will conform to the requirements of KMC 1.90, except the commission may at the discretion of the Council have up to two non-resident members. 1.95.050 Parks and Recreation Commission. (a) Purpose. The purpose of the Parks and Recreation Commission is to advise the Council and Administration on issues involving the City’s parks and recreational facilities. (b) Duties and Powers. The Parks and Recreation Commission will: (1) Review and provide recommendations on any master plans for the physical development of recreation facilities for the City. Such master plans with accompanying maps, plats, charts, 20 Ordinance No. 3416-2024 Page 9 of 13 New Text Underlined; [DELETED TEXT BRACKETED] descriptive, and explanatory matter, may show the Commission’s recommendations for the development of the City’s recreation facilities including: (i) Development of the type, location, and sequence of all public recreation facilities; and, (ii) The relocation, removal, extension, or change of use of existing recreation facilities. (2) Advise the Council and Administration on concerns and recommendations regarding parks and recreational facilities within the City including recommendations for consideration by the Administration in the development of the Parks and Recreation Department’s annual budget; and, (3) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of recommended capital improvements, which in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year; and, (4) Provide information and recommendations as requested by the City Council and Administration; and, (5) Advise and provide recommendations to the Administration as requested on the qualifications for a Director of Parks and Recreation. (c) Qualifications and Membership. Members of the Parks and Recreation Commission will conform to the requirements of KMC 1.90, except the commission may at the discretion of the Council have up to two non-resident members. Section 3. Repeal of Chapter 11.10 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 11.10 Harbor Commission is hereby repealed as follows: [CHAPTER 11.10 HARBOR COMMISSION 11.10.010 DUTIES AND POWERS. (A) THE HARBOR COMMISSION SHALL BE REQUIRED TO DO THE FOLLOWING: (1) DEVELOP, ADOPT, ALTER, OR REVISE, SUBJECT TO APPROVAL BY THE CITY COUNCIL, A MASTER PLAN FOR THE PHYSICAL DEVELOPMENT OF HARBOR OR PORT FACILITIES FOR THE CITY. SUCH MASTER PLAN WITH ACCOMPANYING MAPS, PLATS, CHARTS, DESCRIPTIVE, AND EXPLANATORY MATTER, SHALL SHOW THE HARBOR COMMISSION’S RECOMMENDATIONS FOR THE DEVELOPMENT OF THE CITY HARBOR FACILITIES MAY INCLUDE, AMONG OTHER THINGS: (I) DEVELOPMENT OF THE TYPE, LOCATION, AND SEQUENCE OF ALL PUBLIC HARBOR FACILITIES; (II) THE RELOCATION, REMOVAL, EXTENSION, OR CHANGE OF USE OF EXISTING HARBOR FACILITIES; (2) SUBMIT ANNUALLY TO THE CITY MANAGER AND COUNCIL, NOT LESS THAN NINETY (90) DAYS PRIOR TO THE BEGINNING OF THE BUDGET YEAR, A LIST OF THE RECOMMENDED CAPITAL IMPROVEMENTS WHICH, IN THE OPINION OF THE COMMISSION, ARE NECESSARY OR DESIRABLE TO BE CONSTRUCTED DURING THE FORTHCOMING THREE (3) YEAR PERIOD. SUCH LIST SHALL BE ARRANGED IN ORDER OF PREFERENCE, WITH RECOMMENDATIONS AS TO WHICH PROJECTS SHALL BE CONSTRUCTED IN WHICH YEAR. (3) MAKE INVESTIGATIONS REGARDING ANY MATTER RELATED TO CITY HARBOR FACILITIES, TIDE OR SUBMERGED LANDS. MAKE RECOMMENDATIONS TO THE COUNCIL RELATIVE TO THE CARE, CONTROL, AND DEVELOPMENT OF TIDE AND SUBMERGED LANDS. 21 Ordinance No. 3416-2024 Page 10 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (4) REVIEW ALL CITY LEASES OF CITY-OWNED TIDE, SUBMERGED, AND LANDS OR NAVIGABLE WATERS WITHIN THE CITY, AND AS TO THE PLANNED IMPROVEMENTS PROPOSED AND MAKE RECOMMENDATIONS TO THE CITY COUNCIL. (5) MAKE AND PREPARE REPORTS AND PLANS FOR APPROVAL BY THE CITY COUNCIL. (6) COORDINATE PUBLIC EFFORTS, INDIVIDUAL AND GROUP, TO THE EFFECTUATION OF APPROVED PLANS. (7) SHALL ACT IN ADVISORY CAPACITY IN THE SELECTION OF A HARBOR MASTER SHOULD SUCH A POSITION BE CREATED BY THE CITY COUNCIL.] Section 4. Enactment of Section 14.05.050 of Kenai Municipal Code: That Kenai Municipal Code, Section 14.05.050 - Membership, Qualifications and Proceedings, is hereby enacted as follows: 14.05.050 - Membership Qualifications and Procedures. (a) The Planning and Zoning Commission will consist of seven members, who will be nominated by the Mayor and confirmed by the City Council in accordance with KMC 14.05.015, and the following: (1) Members must be a resident of the City of Kenai, except the commission may have up to one member that is not a resident of the City if that member has a controlling ownership interest in a business physically located in the City. This provision specifically does not create a designated seat for a non-resident. (2) Members may not be an officer or employee of the City. (3) If a member who is required to reside in the City, moves their residence outside of City limits, or if a member who is required to have a controlling ownership interest in a business physically located in the City, relinquishes their controlling ownership interest of the business physically located in the City, or if a member is elected or appointed as an officer or employee of the City, the term of such member will terminate immediately. (4) After completion of a partial term, the Mayor with confirmation of the Council may reappoint the member or recommend a replacement in accordance with KMC 14.05.015. (5) If a member is absent, without the body excusing the absence for good cause from more than one-half of all the regular or special meetings held within any period of three consecutive calendar months, the member will thereupon cease to hold the seat. A commission member may not have more than three excused absences during a twelve-month calendar year. (b) The Commission will have regularly scheduled meetings which will be open to the public. Procedures and preceding of the commission will include, but are not limited to the following: (1) Annual meeting schedules, meeting cancellations or holding special meetings will conform to policy set by the City Council. (2) A chair and vice-chair will be elected annually from and by the appointed members. (3) The most current edition of Robert’s Rules of Order Newly Revised will govern all meetings, unless otherwise specified in KMC 1.15.060 motions; KMC 1.15.100 speaking; and KMC 1.15.110 voting. (4) Permanent record or minutes will be kept for regular and special meetings, and such minutes will record the vote of each member upon every question. (5) Every decision or finding will be filed in the office of the Clerk and will be a public record open to inspection by any person. 22 Ordinance No. 3416-2024 Page 11 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (6) The Clerk is responsible for ensuring that all members of commissions are provided a copy of this section. (c) At the organizational meeting of Council, or as soon thereafter as practicable, the Mayor, after consultation with Council, will nominate a Council Members as Council Liaison to the Planning and Zoning Commission. The following applies to the Council Liaisons: (1) After confirmation by Council, the Council Liaison may attend all meetings of the commission. (2) The council liaison is a non-voting member and may not participate in the debate of the commission. (3) Any Council Member may attend meetings or work sessions when serving as an alternate for the council liaison, or in their capacity as elected officials. (4) Other Council Members may attend a meeting or work session of the commission; however, no more than three Council Members may attend any one meeting without additional public notice. (d) City administrative staff will attend and supply staff support to all meetings of the commission. Section 5. Repeal of Chapter 19.05 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 19.05 Parks and Recreation Commission is hereby repealed as follows: [CHAPTER 19.05 PARKS AND RECREATION COMMISSION SECTIONS: 19.05.010 CREATION. 19.05.020 DUTIES AND POWERS. 19.05.030 TERMS AND APPOINTMENTS TO VACANCIES. 19.05.040 QUALIFICATIONS OF COMMISSION MEMBERS. 19.05.050 PROCEEDINGS OF COMMISSION. 19.05.010 CREATION. (ORD. 416, REPEALED ORD. 1161) 19.05.020 DUTIES AND POWERS. THE COMMISSION SHALL BE REQUIRED TO DO THE FOLLOWING: (A) DEVELOP, ADOPT, ALTER, OR REVISE SUBJECT TO APPROVAL BY THE CITY COUNCIL, A MASTER PLAN FOR THE PHYSICAL DEVELOPMENT OF RECREATION FACILITIES FOR THE CITY. SUCH MASTER PLAN WITH ACCOMPANYING MAPS, PLATS, CHARTS, DESCRIPTIVE, AND EXPLANATORY MATTER, SHALL SHOW THE COMMISSION’S RECOMMENDATIONS FOR THE DEVELOPMENT OF THE CITY’S RECREATION FACILITY MAY INCLUDE, AMONG OTHER THINGS: (1) DEVELOPMENT OF THE TYPE, LOCATION, AND SEQUENCE OF ALL PUBLIC RECREATION FACILITIES; AND (2) THE RELOCATION, REMOVAL, EXTENSION, OR CHANGE OF USE OF EXISTING RECREATION FACILITIES. (B) SUBMIT ANNUALLY TO THE CITY MANAGER AND COUNCIL, NOT LESS THAN NINETY (90) DAYS PRIOR TO THE BEGINNING OF THE BUDGET YEAR, A LIST OF RECOMMENDED CAPITAL IMPROVEMENTS, WHICH IN THE OPINION OF THE COMMISSION, ARE NECESSARY OR DESIRABLE TO BE CONSTRUCTED DURING THE FORTHCOMING THREE (3) YEAR PERIOD. SUCH LIST SHALL BE ARRANGED IN ORDER OF PREFERENCE, WITH RECOMMENDATIONS AS TO WHICH PROJECTS SHALL BE CONSTRUCTED IN WHICH YEAR. (C) MAKE INVESTIGATIONS REGARDING ANY MATTER RELATED TO CITY RECREATION. (D) MAKE AND PREPARE REPORTS AND PLANS FOR APPROVAL BY THE CITY COUNCIL. 23 Ordinance No. 3416-2024 Page 12 of 13 New Text Underlined; [DELETED TEXT BRACKETED] (E) SHALL ACT IN ADVISORY CAPACITY IN THE SELECTION OF A DIRECTOR OF PARKS AND RECREATION. 19.05.030 TERMS AND APPOINTMENTS TO VACANCIES. (ORDS. 416, 430, REPEALED ORD. 1161) 19.05.040 QUALIFICATIONS OF COMMISSION MEMBERS. (ORDS. 416, 619, REPEALED ORD. 1161) 19.05.050 PROCEEDINGS OF COMMISSION. (ORD. 416, REPEALED ORD. 1161)] Section 6. Repeal of Chapter 21.20 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 21.20 Airport Commission is hereby repealed as follows: [21.20 AIRPORT COMMISSION SECTIONS: 21.20.010 DUTIES AND POWERS. 21.20.020 QUALIFICATIONS. 21.20.030 MEMBERSHIP. 21.20.010 DUTIES AND POWERS. THE COMMISSION SHALL: (A) DEVELOP, ADOPT, ALTER OR REVISE, SUBJECT TO APPROVAL BY THE CITY COUNCIL, A MASTER PLAN FOR THE AIRPORT DEVELOPMENT. THIS MAY INCLUDE: (1) DEVELOPMENT OF TYPE, LOCATION AND SEQUENCE OF ALL AIRPORT TERMINAL FACILITIES; (2) DEVELOPMENT AND USE OF ALL AIRPORT AERONAUTICAL LANDS. (B) OBSERVE, OVERSEE AND GUIDE IN AN ADVISORY CAPACITY, ANY MATTERS RELATING TO USE OF AIRPORT RUNWAYS, AIRPORT TERMINAL, AND AIRPORT AERONAUTICAL LANDS. (C) ACT IN AN ADVISORY CAPACITY TO THE COUNCIL AND THE AIRPORT MANAGER. (D) MAKE RECOMMENDATIONS TO THE CITY MANAGER ON THE AIRPORT BUDGET. 21.20.020 QUALIFICATIONS. MEMBERS OF THE AIRPORT COMMISSION WILL CONFORM TO THE REQUIREMENTS OF THE CITY OF KENAI BOARDS, COMMISSIONS, AND COMMITTEES STANDARD PROCEDURES AS ESTABLISHED BY KMC 1.90, EXCEPT THAT MEMBERS OF THE AIRPORT COMMISSION NEED NOT BE RESIDENTS OF THE CITY OF KENAI. 21.20.030 MEMBERSHIP. THE COMMISSION SHALL COMPRISE OF SEVEN (7) MEMBERS WHO SHALL BE CHOSEN SO AS TO REPRESENT BROADLY THE FOLLOWING AREAS: (A) ONE MEMBER, FIXED BASE OPERATOR (FBO). (B) ONE MEMBER, LESSEE OF AIRPORT AERONAUTICAL LANDS OR TERMINAL FACILITY. (C) ONE MEMBER, WITH EXPERTISE IN FEDERAL AVIATION ADMINISTRATION FUNCTIONS. (D) ONE MEMBER, REPRESENTING THE CIVIL AIR PATROL. (E) THREE MEMBERS, AT-LARGE, REPRESENTING THE BUSINESS AND PROFESSIONAL COMMUNITY. (F) ONE NON-VOTING MEMBER, REPRESENTING AD HOC MEMBER OF THE KENAI CITY COUNCIL.] Section 7. That the Council on Aging Commission By-Laws as amended and attached as Attachment E are hereby approved. 24 Ordinance No. 3416-2024 Page 13 of 13 New Text Underlined; [DELETED TEXT BRACKETED] Section 8. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 9. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 15th DAY OF MAY, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: May 1, 2024 Enacted: May 15, 2024 Effective: June 14, 2024 25 MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Shellie Saner, City Clerk DATE: April 19, 2024 SUBJECT: Repealing, Reenacting, Enacting and Amending Sections of Kenai Municipal Code related to Boards, Commissions and Committees The proposed Ordinance would change the Beautification Committee to a Commission; the Council on Aging to the Council on Aging Commission and codify for the first time both the Beautification Commission and Council on Aging Commission. It will enact a new section of code for the Planning and Zoning commission which incorporates sections of the current 1.90 that are applicable to the Planning and Zoning Commission, and also organize and standardize sections of code for the City of Kenai Advisory Commissions. It is recommended that the ordinance be introduced, scheduled for public hearing and referred to the Parks & Recreation Commission May 2, 2024 meeting; the Harbor Commission May 6, 2024 meeting; the Planning and Zoning Commission May 8, 2024 meeting; the Council on Aging May 9, 2024 meeting; the Airport Commission May 9, 2024 meeting; and the Beautification Committee May 14, 2024 meeting. The proposed Ordinance as attached takes current information located in multiple sections of code and relocates them into one location specific to Advisory Commissions. Providing and clarifying general standards will ensure consistency and efficiency in process as well as improve interface with the public and commission member. The following is a section analysis identifying changes as proposed within the ordinance. Section 1. Proposes to repeal current Chapter 1.90 - Standard Procedures for Boards, Commissions and Committees and replace it with a new Chapter 1.90 - General Standards for Standing Advisory Commissions. Repealed Chapter 1.90 Standard Procedures for Boards, Commissions and Committees Section Repealed - 1.90.010 Creation: The existing paragraph is being broken out as three separate section topics in the new proposed code. • The first sentence of the paragraph related to the makeup of commission and appointment of members was relocated to the new Advisory Commission code as 1.90.020(a - b); and also, in the new P&Z Commission code as 14.05.050(a), it was modified in the P&Z code to refer to KMC 14.05.015, which is specific to the appointment procedures for P&Z Commissioners. • The second sentence related to commission procedures, selection of a chair and vice chair was relocated to the new Advisory Commission code as 1.90.050(b); and in the new P&Z Commission code as 14.05.050(b)(2). City of Kenai I 210 r=:idalgo Ave , Kenai , AK 99611 -7794 I 907.283.7535 I www.kenai.city 26 Page 2 of 6 • The third through sixth sentences were related to the selection and appointment of Council Liaisons to Commissions. The new language was modified to align with the adopted Council Policy 20.020 - Commissions Committees and COA Procedures. The new language is included the new Advisory Commission code as Section 1.90.060(a)(1-3), paragraph (a)(4) is from Policy 20.020; and in the new P&Z Commission code as 14.05.050(c)(1-3), paragraph (c)(4) is from Policy 20.020. • The seventh sentence regarding administrative staff was relocated to the new Advisory Commission code as 1.90.060(b), and in the new P&Z Commission code as 14.05.050(d). Section Repealed - 1.90.020 Duties: Both paragraphs of this section were omitted from the proposed new 1.90 code; however, the proposed new Chapter 1.95 - Standing Advisory Commissions has a section for each Standing Advisory Commission, the new sections were drafted to align with the recommendations of the commissions in the meetings held earlier this year and include subsections related to duties. Additional details regarding changes to commission duties will be identified within this memo under the analysis of Section 2. Additional Notes: The Airport Commission at their March 14, 2024 meeting, the Beautification Committee at their February 13, 2024 meeting, the Council on Aging at their February 8, 2024 meeting, the Harbor Commission at their February 12, 2024 meeting, and the Parks and Recreation Commission at their February 1, 2024 meeting recommended the last sentence of paragraph (a) in 1.90.020 Duties read, “They shall act in an advisory capacity to the City Council and administration unless otherwise specified in City Code” Duties were removed from 1.90; however, a modified version of duties with the recommendation of the commissions were included in Airport Commission 1.95.010(b)(2); Beautification Commission 1.95.020(b)(3); Council on Aging Commission 1.95.030(b)(2); Harbor Commission 1.95.040(a),(b)(2); and Parks and Recreation Commission 1.95.050(b)(2). Section Repealed - 1.90.030 Qualifications: • Paragraph (A), the first three sentences address eligibility requirements pertaining to residency and employees. These requirements were relocated to the new Advisory Commission code as 1.90.020(c), and the new P&Z Commission code as 14.05.050(a)(1-3). • Paragraph (A), last sentence was related to salary and expenses, it was included in the new Advisory Commission code as 1.90.020(d); and it was omitted from the new P&Z Commission code as P&Z commissioners do receive a stipend. • Paragraph (B) identifies that the Beautification Committee, Harbor, Library and Parks and Recreation Commission may have up to 2 non-resident members each. This language was included in the proposed new Chapter 1.95 applicable to each commission, except the Library commission which was sunset in 2015, and the Airport Commission and COA as they have different requirements. • Paragraph (C) allowed the P&Z Commission to have one member that was not a resident if that member had a controlling interest in a business within the City, those provisions were included in the new P&Z Commission code in 14.05.050(a)(1&3). Section Repealed - 1.90.040 Terms: • Paragraph (A), the first sentence established three-year terms unless exempted by Council, this language was included in the new Advisory Commission code as 1.90.030(a), and the new language was expanded to codify that regular terms start on January 1 and end on December 31; and, This language already existing P&Z Commission code 14.05.015(d). • Paragraph (A), second sentence regarding reappointment was included in the new Advisory Commission code as 1.90.020(e); and also included in the new P&Z Commission code as The City of Kenai I www.kenai.city 27 Page 3 of 6 14.05.050(a)(4) and the new language refers to the existing KMC 14.05.015 relate to P&Z Commissioner appointments. • Paragraph (B), this language addresses establishing new commissions with staggered terms, it was included in the new Advisory Commission code as 1.90.030(c). It was not included in the P&Z Commission code; this language would be applicable when forming new commissions and is not needed for an existing commission. Section Repealed - 1.90.050 Proceedings: • Paragraph (A), first sentence regarding regular meeting schedules was included in the new Advisory Commission code as 1.90.050(a), the language was modified to reflect Council Policy 20.020. The modified language was also included in the new P&Z Commission code 14.05.050(b)(1). • Paragraph (A), second and third sentences regarding permanent records, minutes and decisions, were included in the new Advisory Commission code as 1.90.050(d-e); and in the new P&Z Commission code as 14.05.050(b)(4-5). • Paragraph (A), fourth sentence regarding the paramount authority of the Council was omitted from the Advisory Commission code; however, new language establishing the advisory nature of Commissions was included in the new Advisory Commission code as 1.90.010(b). This language was not included in the P&Z Commission code, although the P&Z Commission are advisory on some subjects they do have decision making authority. • Paragraph (B), regarding Commissioner attendance, was included in the new Advisory Commission code as 1.90.040, and in the new P&Z Commission code as 14.05.050(a)(5). • Paragraph (C), regarding parliamentary procedure was included in the new Advisory Commission code as 1.90.050(c), and in the new P&Z Commission code as 14.05.050(b)(3). • Paragraph (D), ensuring all members are provided a copy of the chapter was included in the new Advisory Commission code as 1.90.050(f), and in the new P&Z Commission code as 14.05.050(b)(6). Section Repealed - 1.90.060 Specific Requirements of Boards, Commissions and Committees: • This section was included in the new Advisory Commission code as 1.90.070; and it was omitted from the new P&Z Commission code as the new code is specific to only the P&Z Commission. New Chapter 1.90 General Standards for Advisory Commissions Part of the proposed changes include dropping the terms Board or Committee for standing bodies of the City. Uniformly referring to the standing advisory bodies of the City as Commission will create consistency and efficiency. New Section - 1.90.010 Creation: • Paragraph’s (a)(1-5) are new, and establish that Standing Advisory Commissions are created or dissolved by the Council, and lists the current Standing Advisory Commissions. • Paragraph (b) was developed based on the last sentence repealed in 1.90.050(a), which addressed to the paramount authority of the Council regarding the actions of Commissions. The new language addresses the advisory nature of the Commissions to the Council and Administration. • Paragraph (c) clarifies this chapter does not apply to the P&Z Commission. Any information from the repealed chapter 1.90 that was applicable to the P&Z Commission was incorporated into the new 14.05.050. Additional Notes: The Airport Commission at their March 14, 2024 meeting, the Beautification Committee at their February 13, 2024 meeting, the Council on Aging at their February 8, 2024 meeting, the Harbor Commission at their February 12, 2024 The City of Kenai I www.kenai.city 28 Page 4 of 6 meeting, and the Parks and Recreation Commission at their February 12, 2024 meeting recommended amending the first sentence of 1.90.010 to read, “All boards, commissions and committees created by the Council of the City of Kenai, unless otherwise specified, will consist of [7] seven members… The above referenced recommendation was incorporated into the new Advisory Commission code as 1.90.020(a). New Section - 1.90.020 Member, Appointment and Qualifications: • Paragraph (a) and (b) were from first sentence of the repealed 1.90.010. • Paragraph (c) and (d) were from paragraph (a) of the repealed 1.90.030. • Paragraph (e) was from the second sentence of the repealed 1.90.040(a). New Section - 1.90.030 Terms: • Paragraph (a) was from the first sentence of repealed 1.90.040(a) and modified to include the start and end date of a term. • Paragraph (b) is a new paragraph, the purpose is to codify current practice related to partial terms. • Paragraph (c) was from the repealed 1.90.040(b). New Section - 1.90.040 Attendance: • This section was from the repealed 1.90.050(b). New Section - 1.90.050 Proceedings: • Paragraph (a) was from the first sentence of repealed 1.90.050(a), and modified to reflect procedure established within Council Policy 20.020. • Paragraph (b) was from the second sentence of repealed 1.90.010. • Paragraph (c) was from repealed 1.90.050(c). • Paragraph (d) was from the second sentence of repealed 1.90.050(a). • Paragraph (e) was from the third sentence of repealed 1.90.050(a). • Paragraph (f) was from repealed 1.90.050(d). New Section 1.90.060 Liaison: • Paragraph’s (a)(1-3) are from sentences 3-6 of the repealed 1.90.010. • Paragraph (a)(4) is from Council Policy 20.020. • Paragraph (b) is from the last sentence of repealed 1.90.010. New Section 1.90.070: • This new section is from the repealed 1.90.060. Section 2. Proposes to enact a completely new Chapter of code, “1.95 - Standing Advisory Commissions”, this new chapter will relocate the existing code sections for Advisory bodies to one location and create new code for the Beautification Commission and Council on Aging Commission. These new code sections were developed based on current existing code and meetings held with each commission earlier this year. New Chapter 1.90 Standing Advisory Commissions The sections within this chapter will be applicable to individual Standing Advisory Commissions. New Section - 1.95.010 Airport Commission: Note: Section 6 of the ordinance proposes to repeal the existing code section for the Airport Commission, KMC 21.20. • The Airport Commission at their March 14, 2024 meeting recommended amendments to their current code which are incorporated into the new proposed 1.95.010, the following identifies any changes made since their recommendation. The City of Kenai I www.kenai.city 29 Page 5 of 6 o Paragraph (b)(5) is new language for the Airport Commission and has also been included some of the other Commissions. o Paragraph (c) regarding qualifications was added and incorporates the information from sections of the current 1.90 proposed to be repealed. o Paragraph (f) from the repealed 21.20.030 Membership was omitted. This currently provides for, “One non-voting member, representing and ad hoc member of the Kenai City Council.” This was left out as it is not a current practice; however, the Airport Commission is assigned a non-voting Council Liaison annually. New Section - 1.95.020 Beautification Commission: Note: The Beautification Committee has never been formed by City Council, this new section of code would create a Standing Beautification Commission. • The Beautification Committee at their February 13, 2024 meeting recommended enactment of code for the Beautification Commission substantially in the form presented within the Ordinance; however, since that recommendation the following changes have been made. o Paragraph (b)(3) was changes to read, “Advise the Council and administration on City beautification issues and/or projects as requested by the Council or administration; and,” o Paragraph (c) regarding qualifications was added and incorporates the information from sections of the current 1.90 proposed to be repealed. New Section - 1.95.030 Council on Aging Commission: Note: The Council on Aging operates under By-Laws, including provisions for the Council on Aging in code is new. • The Council on Aging at their February 8, 2024 meeting recommended enactment of municipal code for the Council on Aging Commission substantially in the form presented within the Ordinance; however, since that recommendation the following changes have been made. o Paragraph (b)(5) is new language for the Council on Aging Commission and has also been included some of the other Commissions. o Paragraph (c) Qualifications and Membership, the section referencing the requirements of KMC 1.90 has been reworded to align with the language in other Commissions sections of code; however, it does not change the intent. o Paragraph (c), the current By-Laws establishes members must be 60 years or older, the Council on Aging has requested that age be lowered to 55 years or older. New Section - 1.95.040 Harbor Commission: Note: Section 3 of the ordinance proposes to repeal the existing code section for the Harbor Commission, KMC 11.10. • The Harbor Commission at their February 12, 2024 meeting recommended amendments to their current code which are incorporated into the new proposed 1.95.040, the following identifies any changes made since their original recommendation. o Paragraphs (b)(2) and (3) changed positions, this was done to align with the outline format of code for other commissions. o Paragraph (b)(5) was amended to include “and administration” at the end of the sentence to align with language in code for other commissions. o Paragraph (c) regarding qualifications was added and incorporates the information from sections of the current 1.90 proposed to be repealed. New Section - 1.95.050 Parks and Recreation Commission: Note: Section 5 of the ordinance proposes to repeal the existing code section for the Parks and Recreation Commission, KMC 19.05. • The Parks and Recreation Commission at their February 1, 2024 meeting recommended amendments to their current code which are incorporated into the new proposed 1.95.050, the following identifies any changes made since their recommendation. o Paragraphs (b)(2) and (3) changed positions, this was done to align with the outline format of codes for other commissions. The City of Kenai I www.kenai.city 30 Page 6 of 6 o Paragraph (b)(5) was amended to include “and administration” at the end of the sentence to align with language in code for other commissions. o Paragraph (c) regarding qualifications was added and incorporates the information from sections of the current 1.90 proposed to be repealed. Section 3. Proposes to repeal KMC Chapter 11.10 Harbor Commission. Section 4. Proposes to enact a completely new Section 14.05.050-Membership, Qualifications and Procedures within Chapter 14 Planning and Zoning. • Paragraph (a) was from the first sentence in repealed 1.90.010. • Paragraph’s (a)(1-3) were from the repealed 1.90.030(a) and (c). • Paragraph (a)(4) was from the second sentence of repealed 1.90.040(a). • Paragraph (a)(5) was from the repealed 1.90.050(b). • Paragraph (b) is new and provides an outline beginning for procedures of the Commission. • Paragraph (b)(1) is from the first sentence of repealed 1.90.050(a) and has been modified to align with Council Policy 20.020. • Paragraph (b)(2) is from the second sentence of repealed 1.90.010. • Paragraph (b)(3) is from the repealed 1.90.050(c). • Paragraph (b)(4) is from the second sentence of repealed 1.90.050(a). • Paragraph (b)(5) is from the third sentence of repealed 1.90.050(a). • Paragraph (b)(6) is from the repealed 1.90.050(d). • Paragraph’s (c)(1-3) is sentences 3, 4 and 5 of the repealed 1.90.010. • Paragraph (c)(4) is from Council Policy 20.020. • Paragraph (d) is from the last sentence of repealed 1.90.010. Section 5. Proposes to repeal KMC Chapter 19.05 Parks and Recreation Commission. Section 6. Proposes to repeal Chapter 21.20 Airport Commission. Thank you for your consideration. Attachments: A - Draft Ordinance Copy with Comments B - March 14, 2024 Airport Commission Packet Item and Approved Minutes C - February 13, 2024 Beautification Packet Item and Draft Minutes D - February 8, 2024 Council on Aging Packet Item(s) and Approved Minutes E - Amended Council on Aging By-Laws as recommended by the Council on Aging F - February 12, 2024 Harbor Commission Packet Item and Draft Minutes G - February 1, 2024 Parks and Recreation Commission Packet Item and Approved Minutes The City of Kenai I www.kenai.city 31 Sponsored by: City Clerk New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI ORDINANCE NO. XXXX-2024 AN ORDINANCE REPEALING, REENACTING AND RENAMING KENAI MUNICIPAL CODE CHAPTER 1.90 - STANDARD PROCEDURES FOR BOARDS, COMMISSIONS AND COMMITTEES, ENACTING CHAPTER 1.95 - STANDING ADVISORY COMMISSIONS, REPEALING CHAPTERS 11.10 - HARBOR COMMISSION, CHAPTER 19.05 PARKS AND RECREATION COMMISSION, CHAPTER 21.20 AIRPORT COMMISSION, ENACTING SECTION 14.05.050 - PLANNING AND ZONING COMMISSION -QUALIFICATIONS AND MEMBERSHIP AND APPROVING AMENDMENTS TO THE COUNCIL ON AGING COMMISSION BY-LAWS TO ORGANIZE STREAMLINE, AND IMPROVE THE EFFICIENCY OF THE CITY’S STANDING COMMISSIONS. WHEREAS, the City’s Standing Advisory Commissions are intended to advise the Council and administration on specific issues based on their experience, expertise and information presented before the commissions; and, WHEREAS, each Advisory Commission has a unique purpose adding value to the decision-making process carried out by the Council and administration; and, WHEREAS, establishing general standards applicable to all standing Advisory Commissions ensures consistency and efficiency in process; and, WHEREAS, establishing a clear scope of work for each Advisory Commission provides direction to the commissions and ensures effective use of the volunteer commission members time; and, WHEREAS, while current information on various commissions is spread throughout the Code, organizing the code to address the advisory commissions primarily in one place, improves public interface and transparency; and, WHEREAS, a new code section is needed for the Planning and Zoning Commission to carry forward applicable code provisions to the Planning and Zoning Commission, which is unique from other City commissions by virtue of the Commission’s non-advisory duties; and, WHEREAS, the City Manager, City Attorney and City Clerk met with each advisory commission and committee in early 2024 to review and discuss current code provisions applicable to each body; and, WHEREAS, recommended amendments from each commission or committee were drafted, presented and approved by each body; and, WHEREAS, after further consideration of those recommendations, the administration in an effort to streamline and improve efficiencies for Standing Commissions, reevaluated the process and recommend a complete rewrite and renaming of Chapter 1.90; and, WHEREAS, the Airport Commission at their __________, 2024 regular meeting recommended that the City Council __________ this Ordinance; and, WHEREAS, the Beautification Committee at their__________, 2024 regular meeting recommended that the City Council __________ this Ordinance; and, Attachment B 32 Ordinance No. XXXX-2024 Page 2 of 14 New Text Underlined; [DELETED TEXT BRACKETED] WHEREAS, the Council on Aging at their __________, 2024 regular meeting recommended that the City Council __________ this Ordinance; and, WHEREAS, the Council on Aging at their February 8, 2024 regular meeting recommended that the City Council approve amendments to the By-Laws of the Council on Aging as attached; and, WHEREAS, the Harbor Commission at their __________, 2024 regular meeting recommended that the City Council __________this Ordinance; and, WHEREAS, the Parks and Recreation Commission at their __________, 2024 regular meeting recommended that the City Council __________this Ordinance; and, WHEREAS, the Planning and Zoning Commission at their __________, 2024 regular meeting recommended that the City Council __________ this Ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, AS FOLLOWS: Section 1. Repeal, Reenact and Rename Chapter 1.90 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 1.90 Standards for Boards, Commissions and Committees is hereby repealed, reenacted and renamed as Chapter 1.90 General Standards for Standing Advisory Commissions, as follows: [CHAPTER 1.90 STANDARD PROCEDURES FOR BOARDS, COMMISSIONS AND COMMITTEES SECTIONS: 1.90.010 CREATION. 1.90.020 DUTIES. 1.90.030 QUALIFICATIONS. 1.90.040 TERMS. 1.90.050 PROCEEDINGS. 1.90.060 SPECIFIC REQUIREMENTS OF BOARDS, COMMISSIONS AND COMMITTEES. 1.90.010 CREATION. ALL BOARDS, COMMISSIONS AND COMMITTEES CREATED BY THE COUNCIL OF THE CITY OF KENAI, SHALL CONSIST OF SEVEN (7) MEMBERS WHO SHALL BE NOMINATED BY THE MAYOR AND CONFIRMED BY THE CITY COUNCIL FROM APPLICATIONS SUBMITTED TO THE CITY CLERK. A CHAIR AND VICE-CHAIR SHALL BE SELECTED ANNUALLY AND SHALL BE ELECTED FROM AND BY THE APPOINTED MEMBERS. AT THE ORGANIZATIONAL MEETING OF COUNCIL, OR AS SOON THEREAFTER AS PRACTICABLE, THE MAYOR, AFTER CONSULTATION WITH COUNCIL, SHALL NOMINATE COUNCIL MEMBERS AS A COUNCIL LIAISON TO ANY BOARD, COMMISSION OR COMMITTEE. AFTER CONFIRMATION BY COUNCIL, THE COUNCIL LIAISON MAY ATTEND ALL MEETINGS OF THE BOARD, COMMISSION OR COMMITTEE. A COUNCIL LIAISON IS NOT A MEMBER OF, AND SHALL HAVE NO VOTING POWER OR ANY OTHER RIGHTS OF MEMBERSHIP ON, THE BOARD, COMMISSION OR COMMITTEE. THE MAYOR AND OTHER COUNCIL MEMBERS MAY ATTEND MEETINGS OF BOARDS, COMMISSIONS OR COMMITTEES WHEN SERVING AS AN ALTERNATE FOR THE COUNCIL LIAISON, OR IN THEIR CAPACITY AS ELECTED OFFICIALS. CITY ADMINISTRATIVE STAFF SHALL ATTEND AND SUPPLY STAFF SUPPORT TO ALL MEETINGS OF BOARDS, COMMISSIONS AND COMMITTEES. Commented [SS1]: This section proposes to repeal and replace the current chapter 1.90. Notes in the section being repealed will indicate how the code was modified, included or omitted within the new section. Notes in the new section will indicate that it is a new provision that was not in the previous code. Commented [SS2]: First sentence included in 1.90.020 (a) and (b) and in the new14.05.050 (a). Commented [SS3]: Second sentence included in 1.90.050(b) and in the new 14.05.050(b)(2). Commented [SS4]: Sentences 3 through 6 were included in 1.90.060(a)(1-3), paragraph (a) is from Council adopted policy 20.020 and in the new 14.05.050 (c)(1-3), paragraph (d) is from Council Policy 20.020. Commented [SS5]: Sentence 7 was included as 1.90.060(b). I L I I 33 Or d i n a n c e N o . X X X X -20 2 4 Pa g e 3 of 14 Ne w T e x t U n d e r l i n e d ; [ DEL E T E D TEX T BRA C K E T E D ] 1. 90 . 0 2 0 DUT I E S . (A) MEM B E R S O F B O A R D S , CO M M I S S I O N S A N D C O M MI T T E E S S H A L L B E R E Q UI R E D T O ES T A B L I S H P O L I C I E S RE L A T I N G T O T H E I R R E SP E C T I V E O R G A N I Z A T I O N. THE Y S H A L L A C T I N A N AD V I S O R Y C A P A C I T Y T O CIT Y COU N C I L U N L E S S O T H E R W IS E S P E C I F I E D I N T H E CIT Y COD E . (B) IF T H E B O A R D , CO M M I S S I O N O R C O M M I TT E E H A S I N C O M E S T A T ED W I T H I N T H E CIT Y O F KEN A I A N N U A L BU DG E T , SA I D B O A R D , CO M M I S S I O N O R C O M M I TT E E S H A L L W O R K W I T H TH E CIT Y MAN A G E R T O ES T A B L I S H E X P E N S E S P RO J E C T E D F O R T H E Y E A R F O R A P P R O V A L B Y T H E CIT Y COU N C I L . 1. 9 0 . 0 3 0 QUA L I F I C A T I O N S . (A) A ME M B E R O F A B O A R D , CO M M I S S I O N O R C O M M I TT E E M U S T B E A R E S I D EN T O F T H E CIT Y O F KEN A I , UN L E S S T H E B O A R D , CO M M I S S I O N O R C O M M I TT E E I S S P E C I F I C A L L Y EX E M P T E D B Y COU N C I L F R O M T H I S RE Q U I R E M E N T . THE M E M B E R C A N N O T B E AN O F F I C E R O R E M P L O Y EE O F T H E CIT Y O F KEN A I . IF A NY ME M B E R S H O U L D M O V E H IS O R H E R R E S I D E N C E FR O M T H E C O R P O R A T E L IM I T S O F T H E CIT Y O F KEN A I (IF A P P L I C A B L E ), IS A N O F F I C E R O R E M PL O Y E E O F T H E CIT Y O F KEN A I , OR S H A L L B E E L E C T E D OR AP P O I N T E D A S A N O F F I CE R O R E M P L O Y E E O F T HE CIT Y O F KEN A I , TH E S E R V I C E O F S U C H ME M B E R SH A L L T E R M I N A T E I M M E DI A T E L Y . HE OR S H E S H O U L D B E A W AR E T H A T H E O R S H E W IL L S E R V E W I T H O U T SA L A R Y , BU T W I L L B E R E I M B U R SE D F O R A L L R E A S O N A B LE E X P E N S E S I N C U R R E D IN C O N N E C T I O N W I T H TH I S S E R V I C E , ON L Y A F T E R A P P R O V A L BY COU N C I L . (B) THE BEA U T I F I C A T I O N COM M I T T E E , AN D HAR B O R , LIB R A R Y , AN D PAR K S A N D REC R E A T I O N COM M I S S I O N S M A Y A T T H E D I S C R E T I O N O F T H E COU N C I L H A V E U P T O T W O (2 ) NO N -RE S I D E N T ME M B E R S E A C H . (C) THE PLA N N I N G A N D ZON I N G COM M I S S I O N M A Y H A V E U P T O O N E M E M B E R T H A T IS N O T A RE S I D E N T O F TH E CIT Y I F T H E Y H A V E A C ON T R O L L I N G O W N E R S H I P IN T E R E S T I N A B U S I N ES S P H Y S I C A L L Y L O C A T ED I N TH E CIT Y . THI S P R O V I S I O N S P E C I F IC A L L Y D O E S N O T C R E A TE A D E S I G N A T E D S E A T FO R A N O N - RE S I D E N T . Co m m e n t e d [ S S 6 ] : Pa r a g r a p h s ( A ) a n d ( B ) w e r e b o t h om i t t e d i n t h e n e w 1 . 9 0 ; h o w e v e r , d u t i e s h a v e b e e n in c l u d e d i n t h e n e w c o d e se c t i o n s fo r e a c h i n d i v i d u a l co m m i s s i o n ba s e d o n m e e t i n g s w i t h e a c h b o d y . Se c t i o n 2 o f t h e O r d i n a n c e : 1. 9 5 . 0 1 0 ( b ) (2 ) - Ai r p o r t D u t i e s 1. 9 5 . 0 1 5 ( b ) (3 ) - Be a u t i f i c a t i o n D u t i e s 1. 9 5 . 0 2 0 ( b ) (2 ) - CO A D u t i e s 1. 9 5 . 0 2 5 ( b ) (2 ) - Ha r b o r D u t i e s 1. 9 5 . 0 3 0 ( b ) (2 ) - Pa r k s & R e c D u t i e s Co m m e n t e d [ S S 7 ] : Th e f i r s t t h r e e s e n t e n c e s w e r e in c l u d e d i n n ew l y p r o p o s e s 1 . 9 0 . 0 2 0 (c ) an d i n t h e n e w 14 . 0 5 . 0 5 0 p a r a g r a p h s ( a ) ( 1 -3) Co m m e n t e d [ S S 8 ] : Th i s l a s t s e n t e n c e w a s i n c l u d e d i n ne w l y p r o p o s e d 1 . 9 0 . 0 2 0 ( d ) , i t w a s o m i t t e d f r o m t h e ne w 1 4 . 0 5 . 0 5 0 a s P l a n n i n g C o m m i s s i o n e r s r e c e i v e a st i p e n d . Co m m e n t e d [ S S 9 ] : Th i s p a r a g r a p h w a s o m i t t e d i n t h e ne w 1 . 9 0 ; h o w e v e r , w a s i n c l u d e d i n t h e n e w c o d e se c t i o n s f o r t h e i n d i v i d u a l c o m m i s s i o n . Se c t i o n 2 o f t h e o r d i n a n c e : 1. 9 5 . 0 20 (c ) - Be a u t i f i c a t i o n 1. 9 5 . 0 40 (c ) - Ha r b o r 1. 9 5 . 0 50 (c ) - Pa r k s & R e c No t e : L i b r a r y C o m m i s s i o n s u n s e t i n 2 0 1 5 . Ai r p o r t a n d C O A ha v e d i f f e r e n t m e m b e r s h i p re q u i r e m e n t s . Co m m e n t e d [ S S 1 0 ] : Th i s p a r a g r a p h w a s o m i t t e d i n th e n e w 1 . 9 0 ; h o w e v e r , w a s i n c l u d e d i n t h e n e w se c t i o n o f c o d e p r o p o s e d w i t h i n T i t l e 1 4 . Se c t i o n 4 of t h i s o r d i n a n c e : 14 . 0 5 . 0 5 0 ( a ) ( 1 ) &( 3 ) ~ i i \ \ 34 Ordinance No. XXXX-2024 Page 4 of 14 New Text Underlined; [DELETED TEXT BRACKETED] 1.90.040 TERMS. (A) A MEMBER OF A BOARD, COMMISSION OR COMMITTEE SHALL SERVE FOR A TERM OF THREE (3) YEARS, UNLESS THE BOARD, COMMISSION OR COMMITTEE IS SPECIFICALLY EXEMPTED BY COUNCIL FROM THIS REQUIREMENT. AT RENEWAL DATE, THE MAYOR, WITH CONSENT OF THE COUNCIL, CAN REAPPOINT THE MEMBER OR RECOMMEND A REPLACEMENT. (B) THE TERMS OF THE INITIAL BOARD, COMMISSION OR COMMITTEE MEMBER SHALL BE STAGGERED SO THAT THREE (3) MEMBERS WILL BE APPOINTED FOR ONE (1) YEAR; TWO (2) MEMBERS WILL BE APPOINTED FOR TWO (2) YEARS; AND TWO (2) MEMBERS WILL BE APPOINTED FOR THREE (3) YEARS. TERMS SHALL COMMENCE ON JANUARY 1ST OF EACH YEAR. 1.90.050 PROCEEDINGS. (A) ALL BOARDS, COMMISSIONS AND COMMITTEES WILL HAVE REGULARLY SCHEDULED MEETINGS WHICH SHALL BE OPEN TO THE PUBLIC. EXCEPTIONS TO THE MEETING REQUIREMENTS SHALL BE ESTABLISHED BY COUNCIL. PERMANENT RECORDS OR MINUTES SHALL BE KEPT OF ALL PROCEEDINGS AND SUCH MINUTES SHALL RECORD THE VOTE OF EACH MEMBER UPON EVERY QUESTION. EVERY DECISION OR FINDING SHALL IMMEDIATELY BE FILED IN THE OFFICE OF THE CITY CLERK AND SHALL BE A PUBLIC RECORD OPEN TO INSPECTION BY ANY PERSON. ALL ACTS OF BOARDS, COMMISSIONS AND COMMITTEES ARE SUBJECT TO THE PARAMOUNT AUTHORITY OF THE CITY COUNCIL. (B) IF THE COMMISSION, COMMITTEE OR BOARD MEMBER SHALL BE ABSENT, WITHOUT THE BODY EXCUSING THE ABSENCE FOR GOOD CAUSE, FROM MORE THAN ONE-HALF OF ALL THE MEETINGS OF HIS OR HER COMMITTEE, COMMISSION OR BOARD, REGULAR AND SPECIAL, HELD WITHIN ANY PERIOD OF THREE (3) CONSECUTIVE CALENDAR MONTHS, HE OR SHE SHALL THEREUPON CEASE TO HOLD THE SEAT. A COMMISSION, COMMITTEE OR BOARD MEMBER MAY NOT HAVE MORE THAN THREE (3) EXCUSED ABSENCES DURING A TW ELVE (12) MONTH CALENDAR YEAR. (C) IN ALL MATTERS OF PARLIAMENTARY PROCEDURE, THE MOST CURRENT EDITION OF ROBERT’S RULES OF ORDER NEWLY REVISED SHALL BE APPLICABLE AND GOVERN ALL MEETINGS, UNLESS AS SPECIFIED IN KMC 1.15.060, MOTIONS; KMC 1.15.100, SPEAKING; AND KMC 1.15.110, VOTING. Commented [SS11]: Included and modified to included term start of Jan1 and end Dec 31 in new 1.90.030(a) and already exists in 14.05.015(d) Commented [SS12]: Included in new 1.90.020(e) and in the new 14.05.050(a)(4) Commented [SS13]: Included in new 1.90.030(c) Commented [SS14]: Included and modified to reflect current practice in new 1.90.050(a) and included in the new 14.05.050(b)(1) Commented [SS15]: Included in new 1.90.050(d) - (e) and in the new 14.05.050(b)(4-5) Commented [SS16]: Omitted and replaced as the new 1.90.010 (b) Commented [SS17]: Included in new 1.90.040 and in the new 14.05.050(a)(5) Commented [SS18]: Included in new 1.90.050(c) and in the new 14.05.050 (b)(3) I L_ ~ IL I L_ ---------------IL ~ I - IL IL_ 35 Or d i n a n c e N o . X X X X -20 2 4 Pa g e 5 of 14 Ne w T e x t U n d e r l i n e d ; [ DEL E T E D TEX T BRA C K E T E D ] (D) THE R E S P O N S I B I L I T Y O F IN S U R I N G T H A T A L L M EM B E R S O F BO A R D S , CO M M I S S I O N S A N D C O M MI T T E E S RE C E I V E A C O P Y O F T H E STA N D A R D PRO C E D U R E S O F BOA R D S , COM M I S S I O N S A N D COM M I T T E E S L I E S WI T H T H E CIT Y CLE R K . 1. 9 0 . 0 6 0 SPE C I F I C R E Q U I R E M E N T S OF B O A R D S , CO M M I S S I O N S A N D C O M MI T T E E S . REQ U I R E M E N T S O F B O A R D S, CO M M I S S I O N S A N D CO M M I T T E E S A S S E T F O RT H I N KM C 1. 9 0 AR E G E N E R A L RE Q U I R E M E N T S A N D S H A LL B E F O L L O W E D T O T H E E X T E N T T H A T T H E Y D O N O T C O N F L I C T W I T H SP E C I F I C RE Q U I R E M E N T S F O U N D I N C O D E S E C T I O N S S P E C IF I C A L L Y P E R T A I N I N G TO I N D I V I D U A L B O A R D S , CO M M I S S I O N S AN D C O M M I T T E E S .] Ch a p te r 1 . 9 0 Ge n e r a l S t a n d a r d s f o r St a n d i n g A d v i s o r y Co m m i s s i o n s . Se c t i o n s : 1. 9 0 . 0 10 Cr e a t i o n . 1. 9 0 . 0 15 Me m b e r s , A p p o i n t m e n t s a n d Q u a l i f i c a t i o n s . 1. 9 0 . 0 20 Te r m s . 1. 9 0 . 0 25 At t e n d a n c e . 1. 9 0 . 0 30 Pr o c e e d i n g s . 1. 9 0 . 0 35 Li a i s o n s. 1. 9 0 . 0 40 Sp e c i f i c R e q u i r e m e n t s of S t a n d i n g A d v i s o r y C o m m i s s i o n s . 1. 9 0 . 0 10 Cr e a t i o n . (a ) Sta n d i n g A d v i s o r y Co m m i s s i o n s o f th e C i t y m a y b e c r e a t e d o r d i s s o l v e d b y a n o r d i n a n c e o f t h e Ci t y C o u n c i l . Th e f o l l o w i n g Sta n d i n g Adv i s o r y Com m i s s i o n s h a v e b e e n c r e a t e d b y t h e C o u n c i l : (1) Ai r p o r t C o m m i s s i o n , a s e s t a b l i s h e d i n K M C 1 . 9 5 . 0 1 0 ; (2) Be a u t i f i c a t i o n Co m m i s s i o n , a s e s t a b l i s h e d i n K M C 1 . 9 5 . 0 20 ; (3) Co u n c i l o n A g i n g C o m m i s s i o n , a s e s t a b l i s h e d i n K M C 1 . 9 5 . 0 30; (4) Ha r b o r C o m m i s s i o n , a s e s t a b l i s h e d i n K M C 1 . 9 5 . 0 40 ; (5) Pa r k s a n d R e c r e a t io n C o m m i s s i o n , a s e s t a b l i s h e d i n K M C 1 . 9 5 . 0 50 ; (b ) St a n d i n g A d v i s o r y C o m m i s s i o n s a r e c r e a t e d t o a d v i s e t h e C o u n c i l a n d A d m i n i s t r a t i o n a s re q u e s t e d a n d c o d i f i e d . D e c i s i o n s o f S t a n d i n g A d v i s o r y C o m m i s s i o n s m a y b e c o n s i d e r e d by th e Co u nci l a n d a d m i n i s t r a t i o n , b u t s t a n d i n g a d v i s o r y co m m i s s i o n s m a y no t d i r e c t C o u n c i l o r Ad m i n i s t r a t i o n . (c ) Thi s C h a p t e r d o e s n o t a p p l y t o t h e P l a n n i n g a n d Z o n i n g C o m m i s s i o n wh i c h i s n o t s o l e l y a d v i s o r y to t h e C o u n c i l a n d A d m i n i s t r a t i o n . Co m m e n t e d [ S S 1 9 ] : In c l u d e d i n n e w 1 . 9 0 . 0 5 0 ( f ) an d in t h e n e w 1 4 . 0 5 . 0 5 0 ( b) ( 6 ) Co m m e n t e d [ S S 2 0 ] : In c l u d e d i n n e w 1 . 9 0 . 0 7 0 Co m m e n t e d [ S S 2 1 ] : Th e b l u e h i g h l i g h t e d p o r t i o n o f th i s s e c t i o n s n e w a n d is e s t a b l i s h i n g i n c o d e o n e lo c a t i o n t h a t i d e n t i f i e s t h e Sta n d i n g Ad v i s o r y Co m m is s io n s o f t h e C i t y . J ~, • I I_ I I I 36 Ordinance No. XXXX-2024 Page 6 of 14 New Text Underlined; [DELETED TEXT BRACKETED] 1.90.020 Member, Appointment and Qualifications. (a) Unless otherwise specified standing advisory commissions will consist of seven members. (b) Commission members will be nominated by the Mayor and confirmed by the Council from applications submitted to the Clerk. (c) Members must be residents of the City unless otherwise specified and may not be an officer or employee of the City. If any member who is required to reside in the City, moves their residence outside of City limits, or if any member is elected or appointed as an officer or employee of the City, the term of such member will terminate immediately. (d) Members will serve without salary, but may be reimbursed for reasonable expenses incurred in connection with the service, only after approval by the Council. (e) After completion of a full or partial term, the Mayor with confirmation of the Council may reappoint the member or recommend a replacement. 1.90.030 Terms. (a) Terms of appointment will be for three-years beginning January 1st and ending December 31st, unless the commission is exempted by the Council from this requirement. (b) When an appointment is to fill a vacancy created prior to the end of a term, the appointment will be for the remainder of that term. (c) When appointments are first made to a newly established commission, the first appointments will be to staggered terms, so that three members will be appointed for one year; two members will be appointed for two years; and two members will be appointed for three years. 1.90.040 Attendance. If a member is absent, without the body excusing the absence for good cause from more than one-half of all the regular or special meetings held within any period of three consecutive calendar months, the member will thereupon cease to hold the seat. A commission member may not have more than three excused absences during a twelve-month calendar year. 1.90.050 Proceedings. (a) Standing Advisory Commissions will have regularly scheduled meetings which will be open to the public. Annual meeting schedules, meeting cancellations or holding special meetings will conform to policy set by the City Council. (b) A chair and vice-chair will be elected annually from and by the appointed members. (c) The most current edition of Robert’s Rules of Order Newly Revised will govern all meetings, unless otherwise specified in KMC 1.15.060 motions; KMC 1.15.100 speaking; and KMC 1.15.110 voting. (d) Permanent record or minutes will be kept for regular and special meetings, and such minutes will record the vote of each member upon every question. (e) Every decision or finding will be filed in the office of the Clerk and will be a public record open to inspection by any person. (f) The Clerk is responsible for ensuring that all members of commissions are provided a copy of this chapter. 1.90.060 Liaison. Commented [SS22]: This is a new paragraph. The purpose is to codify practices related to partial term appointments. I I 37 Ordinance No. XXXX-2024 Page 7 of 14 New Text Underlined; [DELETED TEXT BRACKETED] (a) Council Liaison. At the organizational meeting of Council, or as soon thereafter as practicable, the Mayor, after consultation with Council, will nominate Council Members as a council liaison to Standing Advisory Commissions. The following applies to Council Liaisons: (1) After confirmation by Council, the council liaison may attend all meetings of the commission. (2) The council liaison is a non-voting member and may not participate in the debate of the commission. (3) Any Council Member may attend meetings or work sessions when serving as an alternate for the council liaison, or in their capacity as elected officials. (3) Other Council Members may attend a meeting or work session of a commission; however, no more than three Council Members may attend any one meeting without additional public notice. (b) Staff Liaison. City administrative staff will attend and supply staff support to all meetings of the commissions of the City. 1.90.070 Specific Requirements of Standing Advisory Commissions. Requirements of this chapter are general requirements and will be followed to the extent that they do not conflict with specific requirements found in code sections specifically pertaining to individual standing commissions. Section 2. Enactment of Chapter 1.95 of Kenai Municipal Code: That Kenai Municipal Code, Section 1.95 Boards, Commissions and Committees is hereby enacted as follows: Chapter 1.95 Standing Advisory Commissions. Sections: 1.95.010 Airport Commission. 1.95.020 Beautification Committee. 1.95.030 Council on Aging Commission. 1.95.040 Harbor Commission. 1.95.050 Parks and Recreation Commission. 1.95.010 Airport Commission. (a) Purpose. The purpose of the Airport Commission is to advise the Council and administration on issues involving the Airport and lands held for the benefit of the Airport. (b) Duties and Powers. The Airport Commission will: (1) Review and provide recommendations on the master plan for the airport development. This may include: (i) Development of type, location and sequence of all airport terminal facilities; and, (ii) Development and use of all airport lands. (2) Act in an advisory capacity to the Council and the Administration on matters affecting the airport. (3) Make recommendations to the City Manager on the airport budget. (4) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of recommended capital improvements, which in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year. Commented [SS23]: From Council Policy 20.020 (G)(2) Commented [SS24]: From Council Policy 20.020 (G)(1) Commented [SS25]: This new section of code incorporates KMC 21.20 and includes amendments which were recommended by the Airport Commission during their March 14, 2024 meeting. Section 5 of this ordinance will repeal KMC 21.20 in its entirety. 38 Ordinance No. XXXX-2024 Page 8 of 14 New Text Underlined; [DELETED TEXT BRACKETED] (5) Provide information and recommendations as requested by the City Council and administration. (c) Qualifications. Members of the Airport Commission will conform to the requirements as established by KMC 1.90, except that members of the Airport Commission need not be a resident of the City of Kenai. (d) Membership. The Commission will be comprised of seven members who will be chosen so as to represent broadly the following areas: (1) One member, fixed base operator (FBO); and, (2) One member, lessee of airport aeronautical lands or terminal facility; and, (3) One member, with expertise in Federal Aviation Administration functions; and, (4) One member, representing the Civil Air Patrol; and, (5) Three members, at-large, representing the business and professional community. 1.95.020 Beautification Commission. (a) Purpose. The purpose of the Beautification Commission is to advise the Council and administration on enhancing the appearance of the City. (b) Duties and Powers. The Beautification Commission will: (1) Advise administration on seasonal displays and decorations promoted by the City; and, (2) Advise administration on selection of annual plantings of flora to be displayed in the City; and, (3) Advise Council and administration on City beautification issues and/or projects as requested by the Council or administration; and, (4) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of the recommended capital improvements which, in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year. (c) Qualifications and Membership. Members of the Beautification Commission will conform to the requirements of KMC 1.90, except the commission may at the discretion of the Council have up to two non-resident members. 1.95.030 Council on Aging Commission. (a) Purpose. The purpose of the Council on Aging Commission is to advise the Council and Administration on issues involving the Kenai Senior Center and senior citizen programs supported by the City. (b) Duties and Powers. The Council on Aging Commission will: (1) Review and provide recommendations on any master plans for senior citizen services provided by the City. This may include: (i) City owned facilities providing senior citizen services; and, (ii) Development and use of the Senior Center or other facilities o wned or managed by the City for the provision of services for senior citizens, excluding Vintage Pointe- Independent Senior Housing. Commented [SS26]: This is a new section of Code, based on the recommendations of the Beautification Committee. Commented [SS27]: This is a new section of code, based on the recommendations of the Council on Aging. 39 Ordinance No. XXXX-2024 Page 9 of 14 New Text Underlined; [DELETED TEXT BRACKETED] (2) Act in an advisory capacity to the Council and the Administration on matters affecting the Senior Center and senior citizen services provided by the City; and, (3) Make recommendations to the City Manager on the budget for the City’s Senior Center ; and, (4) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of recommended capital improvements, which in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year; and, (5) Provide information and recommendations as requested by the City Council and administration. (c) Qualifications and Membership. Members of the Council on Aging Commission will conform to the requirements as established by KMC 1.90, except that members need only to reside on the Kenai Peninsula and 51% of whom must be 55 years or older. The Commission shall be comprised of not more than nine members who will be chosen based on their interest in challenges and opportunities for local senior citizens. (d) Bylaws. The Council on Aging Commission may have its own bylaws approved by the City Council that provide guidance and direction for the Council on Aging Commission to the extent that they do not conflict with the City’s Code of Ordinances. If a conflict should arise between the bylaws and City’s Code of Ordinances, City Code will control. 1.95.040 Harbor Commission. (a) Purpose. The purpose of the Harbor Commission is to advise the Council and administration on issues involving City harbor facilities and tidal or submerged lands owned by the City. (b) Duties and Powers. The Harbor Commission will: (1) Review and provide recommendations on any master plans for the development of harbor or port facilities for the City. This may include: (i) Development of the type, location, and sequence of all public harbor facilities; and, (ii) The relocation, removal, extension, or change of use of existing harbor facilities. (2) Act in an advisory capacity to the Council and administration regarding matters related to City harbor facilities, tide or submerged lands. Make recommendations to the Council and administration relative to the care, control, and development of tide and submerged lands; and, (3) Submit annually to the City Manager and Council, not less than ninety (90) days prior to the beginning of the budget year, a list of the recommended capital improvements which, in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for constructed in which year; and, (4) Review all City leases of City-owned tide and submerged lands and make recommendations to the City Council and administration; and, (5) Provide information and recommendations as requested by the City Council and administration; and, (6) Advise and provide recommendations to the administration as requested on the qualifications for a Harbor Master. Commented [SS28]: Council on Aging recommended lowering this age from 60 to 55. Commented [SS29]: This new section of code incorporates KMC 11.10 and includes amendments which were recommended by the Harbor Commission during their February 12, 2024 meeting. Section 3 of this ordinance will repeal KMC 11.10 in its entirety. 40 Ordinance No. XXXX-2024 Page 10 of 14 New Text Underlined; [DELETED TEXT BRACKETED] (c) Qualifications and Membership. Members of the Harbor Commission will conform to the requirements of KMC 1.90, except the commission may at the discretion of the Council have up to two non-resident members. 1.95.050 Parks and Recreation Commission. (a) Purpose. The purpose of the Parks and Recreation Commission is to advise the Council and administration on issues involving the City’s parks and recreational facilities. (b) Duties and Powers. The Parks and Recreation Commission will: (1) Review and provide recommendations on any master plans for the physical development of recreation facilities for the City. Such master plans with accompanying maps, plats, charts, descriptive, and explanatory matter, may show the Commission’s recommendations for the development of the City’s recreation facilities including: (i) Development of the type, location, and sequence of all public recreation facilities; and, (ii) The relocation, removal, extension, or change of use of existing recreation facilities. (2) Advise the Council and Administration on concerns and recommendations regarding parks and recreational facilities within the City including recommendations for consideration by the Administration in the development of the Parks and Recreation Department’s annual budget; and, (3) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of recommended capital improvements, which in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list will be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year; and, (4) Provide information and recommendations as requested by the City Council and administration; and, (5) Advise and provide recommendations to the Administration as requested on the qualifications for a Director of Parks and Recreation. (c) Qualifications and Membership. Members of the Parks and Recreation Commission will conform to the requirements of KMC 1.90, except the commission may at the discretion of the Council have up to two non-resident members. Section 3. Repeal of Chapter 11.10 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 11.10 Harbor Commission is hereby repealed as follows: [CHAPTER 11.10 HARBOR COMMISSION 11.10.010 DUTIES AND POWERS. (A) THE HARBOR COMMISSION SHALL BE REQUIRED TO DO THE FOLLOWING: (1) DEVELOP, ADOPT, ALTER, OR REVISE, SUBJECT TO APPROVAL BY THE CITY COUNCIL, A MASTER PLAN FOR THE PHYSICAL DEVELOPMENT OF HARBOR OR PORT FACILITIES FOR THE CITY. SUCH MASTER PLAN WITH ACCOMPANYING MAPS, PLATS, CHARTS, DESCRIPTIVE, AND EXPLANATORY MATTER, SHALL SHOW THE HARBOR COMMISSION’S RECOMMENDATIONS FOR THE DEVELOPMENT OF THE CITY HARBOR FACILITIES MAY INCLUDE, AMONG OTHER THINGS: (I) DEVELOPMENT OF THE TYPE, LOCATION, AND SEQUENCE OF ALL PUBLIC HARBOR FACILITIES; (II) THE RELOCATION, REMOVAL, EXTENSION, OR CHANGE OF USE OF EXISTING HARBOR FACILITIES; Commented [SS30]: This new section of code incorporates KMC Title 19 and includes amendments which were recommended by the Parks & Recreation Commission during their February 1, 2024 meeting. Section 4 of this ordinance will repeal KMC Title 19 in its entirety. ---- ---- ---- 41 Ordinance No. XXXX-2024 Page 11 of 14 New Text Underlined; [DELETED TEXT BRACKETED] (2) SUBMIT ANNUALLY TO THE CITY MANAGER AND COUNCIL, NOT LESS THAN NINETY (90) DAYS PRIOR TO THE BEGINNING OF THE BUDGET YEAR, A LIST OF THE RECOMMENDED CAPITAL IMPROVEMENTS WHICH, IN THE OPINION OF THE COMMISSION, ARE NECESSARY OR DESIRABLE TO BE CONSTRUCTED DURING THE FORTHCOMING THREE (3) YEAR PERIOD. SUCH LIST SHALL BE ARRANGED IN ORDER OF PREFERENCE, WITH RECOMMENDATIONS AS TO WHICH PROJECTS SHALL BE CONSTRUCTED IN WHICH YEAR. (3) MAKE INVESTIGATIONS REGARDING ANY MATTER RELATED TO CITY HARBOR FACILITIES, TIDE OR SUBMERGED LANDS. MAKE RECOMMENDATIONS TO THE COUNCIL RELATIVE TO THE CARE, CONTROL, AND DEVELOPMENT OF TIDE AND SUBMERGED LANDS. (4) REVIEW ALL CITY LEASES OF CITY-OWNED TIDE, SUBMERGED, AND LANDS OR NAVIGABLE WATERS WITHIN THE CITY, AND AS TO THE PLANNED IMPROVEMENTS PROPOSED AND MAKE RECOMMENDATIONS TO THE CITY COUNCIL. (5) MAKE AND PREPARE REPORTS AND PLANS FOR APPROVAL BY THE CITY COUNCIL. (6) COORDINATE PUBLIC EFFORTS, INDIVIDUAL AND GROUP, TO THE EFFECTUATION OF APPROVED PLANS. (7) SHALL ACT IN ADVISORY CAPACITY IN THE SELECTION OF A HARBOR MASTER SHOULD SUCH A POSITION BE CREATED BY THE CITY COUNCIL.] Section 4. Enactment of Section 14.05.050 of Kenai Municipal Code: That Kenai Municipal Code, Section 14.05.050 - Membership, Qualifications and Proceedings, is hereby enacted as follows: 14.05.050 - Membership Qualifications and Procedures. (a) The Planning and Zoning Commission will consist of seven members, who will be nominated by the Mayor and confirmed by the City Council in accordance with KMC 14.05.015 , and the following: (1) Members must be a resident of the City of Kenai, except the commission may have up to one member that is not a resident of the City if that member has a controlling ownership interest in a business physically located in the City. This provision specifically does not create a designated seat for a non-resident. (2) Members may not be an officer or employee of the City. (3) If a member who is required to reside in the City, moves their residence outside of City limits, or if a member who is required to have a controlling ownership interest in a business physically located in the City, relinquishes their controlling ownership interest of the business physically located in the City, or if a member is elected or appointed as an officer or employee of the City, the term of such member will terminate immediately. (4) After completion of a partial term, the Mayor with confirmation of the Council may reappoint the member or recommend a replacement in accordance with KMC 14.05.015. (5) If a member is absent, without the body excusing the absence for good cause from more than one-half of all the regular or special meetings held within any period of three consecutive calendar months, the member will thereupon cease to hold the seat. A commission member may not have more than three excused absences during a twelve-month calendar year. (b) The Commission will have regularly scheduled meetings which will be open to the public. Procedures and preceding of the commission will include, but are not limited to the following: (1) Annual meeting schedules, meeting cancellations or holding special meetings will conform to policy set by the City Council. (2) A chair and vice-chair will be elected annually from and by the appointed members. Commented [SS31]: This would be a completely new section to the Planning and Zoning Commissions Code within Title 14. The intent is to include the current provisions from 1.90 that apply to the Planning and Zoning Commission into their section of code. The Planning and Zoning Commission does not fall under the description of an Advisory Body; although they do at time make advisory decisions, they also have decision making authority and act in a quasi-judicial capacity. 42 Ordinance No. XXXX-2024 Page 12 of 14 New Text Underlined; [DELETED TEXT BRACKETED] (3) The most current edition of Robert’s Rules of Order Newly Revised will govern all meetings, unless otherwise specified in KMC 1.15.060 motions; KMC 1.15.100 speaking; and KMC 1.15.110 voting. (4) Permanent record or minutes will be kept for regular and special meetings, and such minutes will record the vote of each member upon every question. (5) Every decision or finding will be filed in the office of the Clerk and will be a public record open to inspection by any person. (6) The Clerk is responsible for ensuring that all members of commissions are provided a copy of this section. (c) At the organizational meeting of Council, or as soon thereafter as practicable, the Mayor, after consultation with Council, will nominate a Council Members as council liaison to the Planning and Zoning Commission. The following applies to the Council Liaisons: (1) After confirmation by Council, the council liaison may attend all meetings of the commission. (2) The council liaison is a non-voting member and may not participate in the debate of the commission. (3) Any Council Member may attend meetings or work sessions when serving as an alternate for the council liaison, or in their capacity as elected officials. (4) Other Council Members may attend a meeting or work session of the commission; however, no more than three Council Members may attend any one meeting without additional public notice. (d) City administrative staff will attend and supply staff support to all meetings of the commission. Section 5. Repeal of Chapter 19.05 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 19.05 Parks and Recreation Commission is hereby repealed as follows: [CHAPTER 19.05 PARKS AND RECREATION COMMISSION SECTIONS: 19.05.010 CREATION. 19.05.020 DUTIES AND POWERS. 19.05.030 TERMS AND APPOINTMENTS TO VACANCIES. 19.05.040 QUALIFICATIONS OF COMMISSION MEMBERS. 19.05.050 PROCEEDINGS OF COMMISSION. 19.05.010 CREATION. (ORD. 416, REPEALED ORD. 1161) 19.05.020 DUTIES AND POWERS. THE COMMISSION SHALL BE REQUIRED TO DO THE FOLLOWING: (A) DEVELOP, ADOPT, ALTER, OR REVISE SUBJECT TO APPROVAL BY THE CITY COUNCIL, A MASTER PLAN FOR THE PHYSICAL DEVELOPMENT OF RECREATION FACILITIES FOR THE CITY. SUCH MASTER PLAN WITH ACCOMPANYING MAPS, PLATS, CHARTS, DESCRIPTIVE, AND EXPLANATORY MATTER, SHALL SHOW THE COMMISSION’S RECOMMENDATIONS FOR THE DEVELOPMENT OF THE CITY’S RECREATION FACILITY MAY INCLUDE, AMONG OTHER THINGS: (1) DEVELOPMENT OF THE TYPE, LOCATION, AND SEQUENCE OF ALL PUBLIC RECREATION FACILITIES; AND (2) THE RELOCATION, REMOVAL, EXTENSION, OR CHANGE OF USE OF EXISTING RECREATION FACILITIES. Commented [SS32]: From Council Policy 20.020 G.2. Commented [SS33]: From Council Policy 20.020 G.1. 43 Ordinance No. XXXX-2024 Page 13 of 14 New Text Underlined; [DELETED TEXT BRACKETED] (B) SUBMIT ANNUALLY TO THE CITY MANAGER AND COUNCIL, NOT LESS THAN NINETY (90) DAYS PRIOR TO THE BEGINNING OF THE BUDGET YEAR, A LIST OF RECOMMENDED CAPITAL IMPROVEMENTS, WHICH IN THE OPINION OF THE COMMISSION, ARE NECESSARY OR DESIRABLE TO BE CONSTRUCTED DURING THE FORTHCOMING THREE (3) YEAR PERIOD. SUCH LIST SHALL BE ARRANGED IN ORDER OF PREFERENCE, WITH RECOMMENDATIONS AS TO WHICH PROJECTS SHALL BE CONSTRUCTED IN WHICH YEAR. (C) MAKE INVESTIGATIONS REGARDING ANY MATTER RELATED TO CITY RECREATION. (D) MAKE AND PREPARE REPORTS AND PLANS FOR APPROVAL BY THE CITY COUNCIL. (E) SHALL ACT IN ADVISORY CAPACITY IN THE SELECTION OF A DIRECTOR OF PARKS AND RECREATION. 19.05.030 TERMS AND APPOINTMENTS TO VACANCIES. (ORDS. 416, 430, REPEALED ORD. 1161) 19.05.040 QUALIFICATIONS OF COMMISSION MEMBERS. (ORDS. 416, 619, REPEALED ORD. 1161) 19.05.050 PROCEEDINGS OF COMMISSION. (ORD. 416, REPEALED ORD. 1161)] Section 6. Repeal of Chapter 21.20 of Kenai Municipal Code: That Kenai Municipal Code, Chapter 21.20 Airport Commission is hereby repealed as follows: [21.20 AIRPORT COMMISSION SECTIONS: 21.20.010 DUTIES AND POWERS. 21.20.020 QUALIFICATIONS. 21.20.030 MEMBERSHIP. 21.20.010 DUTIES AND POWERS. THE COMMISSION SHALL: (A) DEVELOP, ADOPT, ALTER OR REVISE, SUBJECT TO APPROVAL BY THE CITY COUNCIL, A MASTER PLAN FOR THE AIRPORT DEVELOPMENT. THIS MAY INCLUDE: (1) DEVELOPMENT OF TYPE, LOCATION AND SEQUENCE OF ALL AIRPORT TERMINAL FACILITIES; (2) DEVELOPMENT AND USE OF ALL AIRPORT AERONAUTICAL LANDS. (B) OBSERVE, OVERSEE AND GUIDE IN AN ADVISORY CAPACITY, ANY MATTERS RELATING TO USE OF AIRPORT RUNWAYS, AIRPORT TERMINAL, AND AIRPORT AERONAUTICAL LANDS. (C) ACT IN AN ADVISORY CAPACITY TO THE COUNCIL AND THE AIRPORT MANAGER. (D) MAKE RECOMMENDATIONS TO THE CITY MANAGER ON THE AIRPORT BUDGET. 21.20.020 QUALIFICATIONS. MEMBERS OF THE AIRPORT COMMISSION WILL CONFORM TO THE REQUIREMENTS OF THE CITY OF KENAI BOARDS, COMMISSIONS, AND COMMITTEES STANDARD PROCEDURES AS ESTABLISHED BY KMC 1.90, EXCEPT THAT MEMBERS OF THE AIRPORT COMMISSION NEED NOT BE RESIDENTS OF THE CITY OF KENAI. 21.20.030 MEMBERSHIP. THE COMMISSION SHALL COMPRISE OF SEVEN (7) MEMBERS WHO SHALL BE CHOSEN SO AS TO REPRESENT BROADLY THE FOLLOWING AREAS: (A) ONE MEMBER, FIXED BASE OPERATOR (FBO). (B) ONE MEMBER, LESSEE OF AIRPORT AERONAUTICAL LANDS OR TERMINAL FACILITY. 44 Ordinance No. XXXX-2024 Page 14 of 14 New Text Underlined; [DELETED TEXT BRACKETED] (C) ONE MEMBER, WITH EXPERTISE IN FEDERAL AVIATION ADMINISTRATION FUNCTIONS. (D) ONE MEMBER, REPRESENTING THE CIVIL AIR PATROL. (E) THREE MEMBERS, AT-LARGE, REPRESENTING THE BUSINESS AND PROFESSIONAL COMMUNITY. (F) ONE NON-VOTING MEMBER, REPRESENTING AD HOC MEMBER OF THE KENAI CITY COUNCIL.] Section 7. That the Council on Aging Commission By-Laws as amended and attached are hereby approved. Section 8. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 8. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after enactment. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 15th DAY OF MAY, 2024. ___________________________________ Brian Gabriel Sr., Mayor ATTEST: ___________________________________ Michelle M. Saner, MMC, City Clerk Introduced: May 1, 2024 Enacted: May 15, 2024 Effective: June 14, 2024 45 MEMORANDUM TO: Airport Commission FROM: Scott Bloom, City Attorney DATE: January 31, 2024 SUBJECT: Proposed Amendments to KMC Chapter 21.20 and KMC Chapter 1.90 On January, 11, 2024 Terry Eubank, City Manager, Shellie Saner, City Clerk, and I met with your Commission in a work session to discuss possible code changes to KMC Chapter 21.20- Airport Commission and KMC Chapter 1.90- Standard Procedures for Board, Commissions and Committees, as well as other procedures (such as an annual work plan) with the goal of improving the efficiency of your commission and making sure your valuable time as a commissioner is used wisely. Attached to this Memorandum in Attachment A are the code changes we discussed. The changes are shown in legislative format. Underlined words are new suggestions while words in all caps are suggested for removal. In addition, comments regarding each change are provided in red. These comments are for discussion purposes only for this Commission. If the Commission wishes to recommend Council approve the proposed amendments to code, a motion will be needed. For example, “I move to recommend that the City Council adopt the proposed amendments to KMC Chapter 21.20 and Chapter 1.90 as provided in attachment A”. After the main motion has been made and seconded the subject will be before the commission for discussion and additional amendments. If additional amendments are proposed they must be made in the form of a motion, be seconded and voted on. Once discussion is complete and no additional amendments are proposed, the main motion will be voted on. All proposed amendment(s) that are approved by a majority of the Commission will be forwarded by the Administration to the Council in the form of an Ordinance, the Ordinance will also likely include recommended changes from other City Commissions that are relevant to their code sections. The Administration may also recommend moving code provisions pertaining to the Airport Commission into a different section of code, from KMC 21.20 into KMC 1.90, for organizational purposes only, but a final recommendation on this change is still in the works. It would not have any material effect on the Commission. Thank you for your consideration. Attachment C City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city 46 KMC Chapter 21.20, Airport Commission Page 1 of 5 The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023. Chapter 21.20 AIRPORT COMMISSION Sections: 21.20.005 Purpose 21.20.010 Duties and powers. 21.20.020 Qualifications. 21.20.030 Membership. 21.20.005 Purpose The purpose of the Airport Commission is to advise the Council and administration on issues involving the Airport and lands held for the benefit of the Airport. This proposed new section of code is intended just to clearly state the purpose of the commission. 21.20.010 Duties and powers. The Commission shall: (a) [DEVELOP, ADOPT, ALTER OR REVISE, SUBJECT TO APPROVAL BY THE CITY COUNCIL, A] Review and provide recommendations on the master plan for the airport development . This may include: As discussed previously, these changes reflect that the commission itself is not independently responsible for any master plans, but that the Commission’s role to provide recommendations on such plans as they are developed. (1) Development of type, location and sequence of all airport terminal facilities; (2) Development and use of all airport [AERONAUTICAL] lands. This change reflects current practice as discussed. [(B) OBSERVE, OVERSEE AND GUIDE IN AN ADVISORY CAPACITY, ANY MATTERS RELATING TO USE OF AIRPORT RUNWAYS, AIRPORT TERMINAL, AND AIRPORT AERONAUTICAL LANDS.] This change would delete this paragraph and the new language in the paragraph below is expanded as a catchall. ([c] b) Act in an advisory capacity to the Council and the [AIRPORT MANAGER] Administration on matters affecting the airport. This new language expands this section a little as a catchall. 47 KMC Chapter 21.20, Airport Commission Page 2 of 5 The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023. ([d] c) Make recommendations to the City Manager on the airport budget. ([e] d) Submit annually to the City Manager and Council, not less than ninety days prior to the beginning of the budget year, a list of recommended capital improvements, which in the opinion of the Commission, are necessary or desirable to be constructed during the forthcoming five-year period. Such list shall be arranged in order of preference, with recommendations as to which projects are recommended for construction in which year. This new section reflects input on a capital plan similar to other commissions. 21.20.020 Qualifications. Members of the Airport Commission will conform to the requirements of the City of Kenai Boards, Commissions, and Committees Standard Procedures as established by KMC 1.90, except that members of the Airport Commission need not be residents of the City of Kenai. 21.20.030 Membership. The Commission shall comprise of seven (7) members who shall be chosen so as to represent broadly the following areas: (a) One member, fixed base operator (FBO). (b) One member, lessee of airport aeronautical lands or terminal facility. (c) One member, with expertise in Federal Aviation Administration functions. (d) One member, representing the Civil Air Patrol. (e) Three members, at-large, representing the business and professional community. (f) One non-voting member, representing ad hoc member of the Kenai City Council. 48 KMC Chapter 21.20, Airport Commission Page 3 of 5 The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023. Chapter 1.90 STANDARD PROCEDURES FOR BOARDS, COMMISSIONS AND COMMITTEES Sections: 1.90.010 Creation. 1.90.020 Duties. 1.90.030 Qualifications. 1.90.040 Terms. 1.90.050 Proceedings. 1.90.060 Specific requirements of boards, commissions and committees. 1.90.010 Creation. All boards, commissions and committees created by the Council of the City of Kenai, [SHALL] unless otherwise specified, will consist of seven [(7)] members who shall be nominated by the Mayor and confirmed by the City Council from applications submitted to the City Clerk. A chair and vice-chair shall be selected annually and shall be elected from and by the appointed members. At the organizational meeting of Council, or as soon thereafter as practicable, the Mayor, after consultation with Council, shall nominate Council Members as a council liaison to any board, commission or committee. After confirmation by Council, the council liaison may attend all meetings of the board, commission or committee. A council liaison is not a member of, and shall have no voting power or any other rights of membership on, the board, commission or committee. The Mayor and other Council Members may attend meetings of boards, commissions or committees when serving as an alternate for the Council liaison, or in their capacity as elected officials. City administrative staff shall attend and supply staff support to all meetings of boards, commissions and committees. This change is just to reflect that the Council on Aging can have a different number of members. 1.90.020 Duties. (a) Members of boards, commissions and committees shall be required to establish policies relating to their respective organization. They shall act in an advisory capacity to City Council and administration unless otherwise specified in the City Code. This change reflects that commission advise administration and not just the City Council. 49 KMC Chapter 21.20, Airport Commission Page 4 of 5 The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023. (b) If the board, commission or committee has income stated within the City of Kenai annual budget, said board, commission or committee shall work with the City Manager to establish expenses projected for the year for approval by the City Council. 1.90.030 Qualifications. (a) A member of a board, commission or committee must be a resident of the City of Kenai, unless the board, commission or committee is specifically exempted by Council from this requirement. The member cannot be an officer or employee of the City of Kenai. If any member should move his or her residence from the corporate limits of the City of Kenai (if applicable), is an officer or employee of the City of Kenai, or shall be elected or appointed as an officer or employee of the City of Kenai, the service of such member shall terminate immediately. He or she should be aware that he or she will serve without salary, but will be reimbursed for all reasonable expenses incurred in connection with this service, only after approval by Council. (b) The Beautification Committee, and Harbor, Library, and Parks and Recreation Commissions may at the discretion of the Council have up to two (2) non-resident members each. (c) The Planning and Zoning Commission may have up to one member that is not a resident of the City if they have a controlling ownership interest in a business physically located in the City. This provision specifically does not create a designated seat for a non-resident. 1.90.040 Terms. (a) A member of a board, commission or committee shall serve for a term of three (3) years, unless the board, commission or committee is specifically exempted by Council from this requirement. At renewal date, the Mayor, with consent of the Council, can reappoint the member or recommend a replacement. (b) The terms of the initial board, commission or committee member shall be staggered so that three (3) members will be appointed for one (1) year; two (2) members will be appointed for two (2) years; and two (2) members will be appointed for three (3) years. Terms shall commence on January 1st of each year. 50 KMC Chapter 21.20, Airport Commission Page 5 of 5 The Kenai Municipal Code is current through Ordinance 3380-2023, passed November 15, 2023. 1.90.050 Proceedings. (a) All boards, commissions and committees will have regularly scheduled meetings which shall be open to the public. Exceptions to the meeting requirements shall be established by Council. Permanent records or minutes shall be kept of all proceedings and such minutes shall record the vote of each member upon every question. Every decision or finding shall immediately be filed in the office of the City Clerk and shall be a public record open to inspection by any person. All acts of boards, commissions and committees are subject to the paramount authority of the City Council. (b) If the commission, committee or board member shall be absent, without the body excusing the absence for good cause, from more than one-half of all the meetings of his or her committee, commission or board, regular and special, held within any period of three (3) consecutive calendar months, he or she shall thereupon cease to hold the seat. A commission, committee or board member may not have more than three (3) excused absences during a twelve (12) month calendar year. (c) In all matters of parliamentary procedure, the most current edition of Robert’s Rules of Order Newly Revised shall be applicable and govern all meetings, unless as specified in KMC 1.15.060, motions; KMC 1.15.100, speaking; and KMC 1.15.110, voting. (d) The responsibility of insuring that all members of boards, commissions and committees receive a copy of the Standard Procedures of Boards, Commissions and Committees lies with the City Clerk. 1.90.060 Specific requirements of boards, commissions and committees. Requirements of boards, commissions and committees as set forth in KMC 1.90 are general requirements and shall be followed to the extent that they do not conflict with specific requirements found in code sections specifically pertaining to individual boards, commissions and committees. 51 KENAI AIRPORT COMMISSION -REGULAR MEETING MARCH 14, 2024-6:00 P.M. A. CALL TO ORDER KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 CHAIR GLENDA FEEKEN, PRESIDING ACTION MINUTES A Regular Meeting of the Airport Commission was held on March 14, 2024, in the Kenai City Council Chambers, Kenai , AK. Chair Feeken called the meeting to order at approximately 6:05 p.m. 1. Pledge of Allegiance Chair Feeken led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Glenda Feeken, Chair James Bielefeld Dan Pitts A quorum was present. Absent: James Zirul. Also in attendance were: Paul Minelga, Vice Chair Jacob Caldwell Joshua Daily Derek Ables, Airport Manager Scott Bloom, City Attorney Henry Knackstedt, City Council Liaison 3. Agenda Approval Chair Feeken noted that staff had requested the removal of item F4 from the agenda, along with the following additions to the packet: Add to Item F.5 MOTION: Discussion/Recommendation -Recommending Council Adoption of a Resolution Authorizing the City Manager to Enter into a Bar and Lounge Concession Agreement for the Kenai Municipal Airport • Memo • Upper Deck Agreement & Attachments • Draft Resolution No. 2024-12 Commissioner Bielefeld MOVED to approve the agenda with the requested revisions. Vice Chair Minelga SECONDED the motion. VOTE: There being no objection; SO ORDERED. B. SCHEDULED PUBLIC COMMENTS -None. C. UNSCHEDULED PUBLIC COMMENTS -None. Airport Commission Meeting March 14, 2024 Page 1 of 4 52 D. APPROVAL OF MINUTES 1. January 11 . 2024 2. February 8, 2024 MOTION: Commissioner Bielefeld MOVED to approve the January 11 and February 8, 2024 Airport Commission minutes. VOTE: There being no obJecUon; SO ORDERED. E. UNFINISHED BUSINESS -None. F. NEW BUSINESS 1. Discussion/Recommendation -Recommendations to Council for Changes to Kenai Municipal Code Chapter 21.20 Airport Commission, and Chapter 1.90 Standards for Boards, Commissions and Committees. MOTION: Vice Chair Minelga MOVED to recommend City Council adopt the proposed amendments to KMC Chapter 21.20 and Chapter 1.90 as provided in attachment A in the packet. Commissioner Bielefeld SECONDED the motion. Airport Manager Ables gave a staff report from information provided in the packet. Discussion ensued. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED . 2. Discussion/Recommendation -Recommendation to Council to Change the Location of Airport Commission Regular Meetings to Kenai City Hall Council Chambers. MOTION: Commissioner Bielefeld MOVED to recommend City Councrl approval of amend Policy 20.020 to change the location of Airport Commission regular meetings to Kenai City Hall Council Chambers. Commissioner Caldwell SECONDED the motion . Airport Manager Ables gave a staff report from information provided in the packet. Discussion ensued . UNAN IMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 3. Discussion/Recommendation -Recommending Council Enactment of Ordinance No. 3403- 2024 -Amending Sections of Kenai Municipal Code Chapters 21.10-Leasing and Acquisition of Airport Reserve Lands, and 22.05-Disposition of City Lands, to Extend the Time Allowed for Private Development on City Leased Lots and Requiring Certain Financial Assurances Prior to Lease Execution. MOTION: Commissioner Bielefeld MOVED to recommend City Council enact Ordinance No. 3403-2024 . Commissioner Caldwell SECONDED the motion. Airport Manager Ables gave a staff report from information provided in the packet. Airport Commission Meetihg March 14, 2024 Page 2 of 4 53 Discussion ensued. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. 4. Discussion/Recommendation -Recommending Council Adoption of a Resolution Authorizing the City Manager to Enter into a Restaurant Concession Agreement for the Kenai Municipal Airport. This item was removed during agenda approval 5. Discussion/Recommendation -Recommending Council Adoption of a Resolution Authorizing the City Manager to Enter into a Bar and Lounge Concession Agreement for the Kenai Municipal Airport. MOTION: Commissioner Caldwell MOVED to recommend City Council adopt a Resolution Authorizing the City Manager to Enter into a Bar and Lounge Concession Agreement. Vice Chair Minelga SECONDED the motion. Airport Manager Ables gave a staff report from information provided 1n the packet. UNANIMOUS CONSENT was requested on the motion. VOTE: There being no objection; SO ORDERED. G. REPORTS 1. Airport Manager -Airport Manager Ables reviewed his report as provided in the packet. 2. Commission Chair -No report. 3. City Council Liaison -Council Member Knackstedt reported on recent actions of the City Council. H 4, ADDITIONAL PUBLIC COMMENTS -None. I. NEXT MEETING ATTENDANCE NOTIFICATION -April 11, 2024 Commissioner Caldwell noted that he would be absent. J. COMMISSION QUESTIONS AND COMMENTS -None . K. ADJOURNMENT L. INFORMATIONAL ITEMS 1. Memorandum of Agreement with Greatland Consulting and Training LLC for Use of the Alaska Regional Fire Training Facility. 2. Repair and Maintenance Services Contract for Security Guard Services at the Kenai Municipal Airport. 3. A Special Use Permit to Rebecca Boettcher, OBA: The Fishing Grounds, LLC for Operation of a Snack/Gtft Shop Inside the Kenai Municipal Airport. There being no further business before the Airport Commission, the meeting was adjourned at 6:47 p.m. I certify the above represents accurate minutes of the Airport Commission meeting of March 14, 2024. Airport Commission Meeting March 14, 2024 Page 3 of 4 54 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: Derek Ables - Airport Manager From: Sarah Conley – Administrative Assistant Date: April 24, 2024 Subject: Fourth Amendment to Agreement for Janitorial Services On July 1, 2020 the City of Kenai entered into an Agreement for Janitorial Services with Reborn Again Janitorial Services, for a period of one year with the option to extend for an additional four (4) years if the City and contractor mutually agree in writing. The Contractor requests to renew under the same terms and conditions. Attached for your review and recommendation is the Fourth Amendment to Agreement for Janitorial Services which shall be effective July 1, 2024. Does Commission recommend Council approve the Fourth Amendment to Agreement for Janitorial Services with Reborn Again Janitorial Services? Attachment- 4th Amendment Municipal Airport 56 FOURTH AMENDMENT TO AGREEMENT FOR JANITORIAL SERVICES The Agreement for Janitorial Services made the 1st day of July 2020, by and between the CITY OF KENAI, hereinafter called “Owner”, whose address is 210 Fidalgo Avenue, Kenai, AK 99611-7794, and, Reborn Again Janitorial Services, whose mailing address is P.O.Box 927, Kenai, AK 99611, hereinafter called “Contractor,” is hereby amended as follows: 1). Pursuant to Section 2 of the Agreement for Janitorial Services the term of the Agreement for Janitorial Service for the Kenai Municipal Airport is extended for one final year, beginning on July 1, 2024 and ending on June 30, 2025. 2). All other terms and conditions of the Agreement remain unchanged and in full force and effect. DATED this ____ day of , 2024. CITY OF KENAI By: Terry Eubank, City Manager Reborn Again Janitorial Services Reborn Again Janitorial Services By: By: Sylvia Trevino, Owner Erica Jackson, Owner 57 (If Lessee is a corporate-style entity) ATTEST: Name Title STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ___ day of , 2024, by Terry Eubank, City Manager for the City of Kenai. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) )ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this ___ day of , 2024, by Reborn Again Janitorial Services, an Alaskan corporation on behalf of the corporation. Notary Public for Alaska My Commission Expires: Approved as for form: Scott Bloom, City Attorney Approved by Finance: David Swarner, Finance Director 58 MEMORANDUM TO: Airport Commission FROM: Linda Mitchell, Planning Director DATE: May 1, 2024 SUBJECT: Action/Approval – Lease of Airport Reserve Land for the Property Described as Lot 5A, Block 1, FBO Subdivision 2018 Replat Schilling Rentals, LLC (“Schilling”) submitted a land lease application of Airport Reserve Land for the property described as Lot 5A, Block 1, FBO Subdivision 2018 Replat, located at 413 N. Willow Street (KPB Parcel No. 04336049). The applicant is requesting a term of 45 years and proposing an investment amount of approximately $1,000,000 to erect an airplane hangar. Pursuant to Kenai Municipal Code (KMC) 21.10.080(b) [Lease] Term Table, the maximum term for the proposed investment value is 45 years. The 30-day notice of competitive land lease application will expire on June 3, 2024. As-of-date, the City has not received any competing lease applications for the subject property. The applicant intends to use the premises for an aircraft hangar to support a local airline, such as Kenai Aviation. Schilling has several leases with the City and they are in compliance with the terms and conditions of their leases. The subject property is approximately 1.80 acres and located within the Airport Light Industrial (ALI) Zone. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses and reducing hazards that may endanger the lives and property of the public and aviation users. The proposed use of an aircraft hangar is a permitted use in the ALI Zone and is an airport compatible use. It is in conformance with the airport layout plan, airport master plan, Federal Aviation Administration (FAA) regulations applicable to the airport, airport improvement projects, airport sponsor grant assurances to the FAA, and airport regulations and operations. A new hangar with the intent to support a local airline will further promote the viability of the Kenai Municipal Airport. Furthermore, the proposed use is consistent with the 2016 Imagine Kenai 2030 Comprehensive Plan. It supports Goal 5- Transportation, which has a vision for Kenai Municipal Airport as a gateway to the Kenai Peninsula. Pursuant to KMC 21.20.010(c), the Airport Commission shall act in an advisory capacity to City Council and the Airport Manager. The Planning and Zoning Commission will also review the lease application and provide a recommendation to City Council. City Council will be notified of your commission’s recommendation as part of their consideration of the lease application. City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city 59 Page 2 of 2 Does your Commission recommend approval to City Council on the lease application of Airport Reserve Land for the use of a hangar for airplane storage at the property described as Lot 5A, Block 1, FBO Subdivision 2018 Replat? Attachments Aerial Map Application Standard Lease Form The City of Kenai I www.kenai.city 60 LEASE OF AIRPORT LANDS Page 1 of 31 KENAI MUNICIPAL AIRPORT LEASE OF AIRPORT RESERVE LANDS THIS LEASE AGREEMENT entered into this ________ day of ___________, 20__, by and between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794, and _____________________________________, whose address is ________________________ __________________________________ (“Lessee”). DEFINITIONS For the purposes of this Lease the following terms are defined in KMC 21.10.020 (effective as of the date of execution of the lease) as follows: 1. Airport – the Kenai Municipal Airport, including all the runways, taxiways, aprons, water lanes, water taxiways, and all City-owned real estate located within the boundaries of the Airport Reserve as defined in KMC Chapter 21.05, Airport Administration and Operation. 2. Airport Manager – the official to whom the City Manager of the City has delegated the authority and responsibility of managing and directing the activities of the Airport. “Airport Manager” includes that person’s authorized representative. 3. City – the City of Kenai, its elected officials, officers, employees or agents. 4. City Manager – the official to whom the Kenai City Council has delegated the responsibility of managing and directing all activities of the City. 5. Contamination – the unpermitted presence of any released Hazardous Substance. 6. Environmental Law – any applicable federal, state, or local statute, law, regulation, ordinance, code, permit, order, decision, judgment of any governmental entity relating to environmental matters, including littering and dumping. 7. FAA – the abbreviation for the Federal Aviation Administration. 8. Hazardous Substance – any substance that is defined under an Environmental Law as hazardous waste, Hazardous Substance, hazardous material, toxic, pollutant, contaminant, petroleum, petroleum product, or oil. 9. KMC – the abbreviation for the Kenai Municipal Code. 10. Permanent Improvement – a fixed addition or change to land that is not temporary or portable, including a building, building addition, gravel fill, pavement, retaining wall, storage tank, well, and remediation of contamination for what the lessee is not responsible 64 LEASE OF AIRPORT LANDS Page 2 of 31 ARTICLE I PREMISES LEASED A. PREMISES: In consideration of Lessee’s payment of the rents and performance of all the covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the City, the following described property (“Premises”) in the Kenai Recording District, Third Judicial District, State of Alaska and located on the Airport; to wit: Description of Lease Property B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific warranties, expressed or implied, concerning the condition of the Premises including, survey, soils, wetlands, access, and suitability or profitability for any use including those authorized by this Lease, its environmental condition, or the presence or absence of Hazardous Substances in, on, and under the surface. The Lessee takes the Premises on an “as is” basis and without warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title to the Premises. ARTICLE II RIGHTS AND USES A. AUTHORIZED USES: 1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the following purposes only: List authorized uses and limitations 2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing, the Lessee will operate on the Premises on a continuous basis, uninterrupted by any period of closure over 15 consecutive days. The Lessee will give the City written notice before closing the Lessee’s business on the Premises for more than 10 consecutive days. The notice must state the reason for the closure and the date on which the Lessee will re-open for business. This provision does not apply to any period during which the Lessee is unable to operate its business as a result of an act or directive of the City, or as a result of a closure of the Airport or loss of the Lessee’s buildings on the Premises due to fire or natural disaster. B. RIGHTS RESERVED TO THE CITY: 1. RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others any rights and privileges not specifically granted to the Lessee on an exclusive basis. The rights and privileges granted to the Lessee in this Lease are the only rights and privileges granted to the Lessee by this Lease. 65 LEASE OF AIRPORT LANDS Page 3 of 31 2. EASEMENTS: The City reserves the right to make grants to third parties or reserve to the City easements or rights of way through, on, or above the Premises. The City will not grant or reserve any easement or right of way that unreasonably interferes with the Lessee’s authorized uses of the Premises. 3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress to and egress from the Premises and the right to enter any part of the Premises, including buildings, for the purpose of inspection or environmental testing at any time. Except in the case of an emergency, all inspections and environmental testing will be coordinated with the Lessee to minimize interference with the Lessee’s authorized uses of the Premises. 4. RIGHT OF FLIGHT: There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises. This public right of flight will include the right to cause in the airspace any noise inherent in the operation of any aircraft used for navigation or flight through the airspace or landing at, taking off from, or operation on the Airport. C. PROHIBITED USES: Unless specifically authorized by this Lease or an amendment to this Lease, the following are prohibited: 1. Any use of the Premises other than those authorized in this Lease. 2. Any use of the Premises that is in violation of a City Ordinance or an Airport regulation. 3. The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non-operational support equipment, unused or damaged equipment or material, or solid waste or debris unless allowed pursuant to a conditional use permit under KMC 14.20. 4. The disposal on the Premises or the Airport of waste materials generated by the Lessee, including any Hazardous Substance, slash, overburden, and construction waste. 5. The stripping, wasting, or removing any material from the Premises without the prior written approval of the City. 6. Erecting structures or allowing growth of natural objects that would constitute an obstruction to air navigation, or allowing any activity on the Premises that would interfere with or be a hazard to the flight of aircraft, or interfere with air navigation or communication facilities, serving the Airport. 7. Any use or activity that is prohibited by applicable law or regulation. 66 LEASE OF AIRPORT LANDS Page 4 of 31 ARTICLE III TERM & HOLDOVER A. TERM: The initial term of this Lease is for __________ years, from the 1st day of ________________, 20__, to the 30th day of _______________, 20__. B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after the expiration, cancellation or termination of this Lease, the holding over will not operate as an extension of the term of this Lease, but only creates a month-to-month tenancy, regardless of any rent payments accepted by the City. The Lessee's obligations for performance under this Lease will continue during the month-to-month tenancy. The City or Lessee may terminate the Lessee’s holdover with ten days’ advance written notice. ARTICLE IV RENTS AND FEES A. RENT: The initial rent for the Premises is $________.00 per year, as established by the City pursuant KMC 21.10.090 and as subject to annual adjustment on July 1 of each year under Article V of this Lease, plus applicable sales tax. The rent shall be payable annually in advance of the first day of each year of the term of this Lease. All payments required by this Lease must be made in U.S. dollars. If the annual rent exceeds $2,400, the Lessee may, upon written notice to the City, choose to pay the rent in equal monthly installments, payable in advance on or before the anniversary date of the term of this Lease and thereafter at monthly intervals. No conversion of the payment schedule from annual to monthly shall result in the City receiving less rent than it would have received had the conversion not taken place. 1. Rent Credit: A rent credit may be applied for a maximum of five years of lease payments as provided in KMC 21.10.100 (as effective at the time this lease is executed). Once the work is completed and value determined, a credit will be applied to the lease payments, prorated as necessary for the successive five years. 2. Any Rent Credit provided will be retroactively and prospectively revoked, and the full rent credited will become automatically due within 30 days of any failure to complete construction of any and all improvements within the time periods required as described in this Lease. Failure to repay the City within 30 days for all rent credited should repayment become due, will be considered a breach of terms of this Lease, subjecting the Lease to termination at the City’s discretion. B. RENT PRORATED: Rental for any period less than one year shall be prorated on the basis of the rent payable under this Lease in last full year previous to the prorating. C. ADDITIONAL RENT: In addition to the rent specified in (a) of this Article, Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as follows: 1. Taxes pertaining to the leasehold interest of the Lessee. 67 LEASE OF AIRPORT LANDS Page 5 of 31 2. Sales tax now enforced or levied in the future, computed upon rent payable in monthly installments whether the Lessee pays rent under this Lease on a monthly or annual basis. 3. All taxes and assessments levied in the future by the City, as if Lessee was the legal owner of record of the Premises. D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders payable to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210 Fidalgo Avenue, Suite 200, Kenai, Alaska 99611-7794 or any other address the City may designate in writing to the Lessee. E. INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and fees required under this Lease will accrue interest at the rate of eight percent (8.0%) per annum. Interest on disputed amounts will not be charged to the Lessee if the dispute is resolved in the Lessee’s favor. F. LATE PAYMENT PENALTY: In addition to any interest payable under Provision (E) of this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease, the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%) of the amount due and unpaid. G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due, regardless of whether or not the Lessee receives a billing statement from the City. H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due and unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the Lessee’s property, real or personal. I. PAYMENT OF CITY’S COSTS: The Lessee will pay all reasonable actual expenses, costs, and attorney fees City may incur, with or without formal action, to enforce, defend, or protect this Lease or City's rights under this Lease, including any expense incurred with respect to environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease, the Premises, or improvements or personal property on the Premises. The Lessee will make payment within 30 days of the date of each notice from City of any amounts payable under this provision. J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee for any special services or facilities the City agrees to perform, which the City is not otherwise obligated by this Lease to provide and which the Lessee requests from the City in writing. ARTICLE V ADJUSTMENT OF RENT AND FEES 68 LEASE OF AIRPORT LANDS Page 6 of 31 A. RENT OR FEE ADJUSTMENT: The City shall adjust rent or fees payable by the Lessee under Article IV or other provisions of this lease on July 1 of each year of the lease as proved in KMC 21.10.090 (as effective at the time this lease is executed) and shall make any other adjustments to rent as allowed for in KMC 21.10.090. No rent or fee change shall be effective until 30 days after the date of the City’s written notice to the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent for the Premises, the Lessee may appeal a rent change to the City as provided in KMC 21.10.090. ARTICLE VI ASSIGNMENT & SUBLETTING A. INVALID WITHOUT CITY’S CONSENT: The Lessee may not assign, sublet, or grant a security interest in, by grant or implication, the whole or any part of this Lease, the Premises, or any improvement on the Premises without the written consent of the City. Any proposed assignment, sublease, or security interest must be written and must be submitted to the City bearing the original, notarized signature of all parties. The Lessee may submit unsigned draft documents for the City’s conceptual review. However, the City’s conceptual approval of a draft document may not be construed as the City’s consent to any assignment, sublease, or security interest. All provisions in this Lease extend to and bind the assignees and sub-lessees of the Lessee. B. NO WAIVER OF CONSENT: The City’s consent to one assignment, sublease, or security interest will not waive the requirement for the Lessee to obtain the City’s consent to any other assignment, sublease, or security interest. C. ASSIGNEE / LESSEE OBLIGATIONS: An assignment must include a provision stating that the assignee accepts responsibility for all of the assignor’s (Lessee’s) obligations under this Lease, including environmental liability and responsibility. However, unless the City specifically releases the Lessee in writing, the City may hold the Lessee responsible for performing any obligation under this lease which an assignee fails to perform. D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sub-lessee may not occupy the Premises before the City consents to the assignment or sublease in writing. E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an assignment or a sublease, the terms of this Lease control. F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City’s consent to any sublease does not relieve or otherwise alter the Lessee’s obligations under this Lease. G. SECURITY ASSIGNMENTS AND FINANCING: 69 LEASE OF AIRPORT LANDS Page 7 of 31 1. Subject to the requirements of (A) of this Article VI, the Lessee may assign a security interest in this Lease. The security interest may be in the form of a mortgage, deed of trust, assignment or other appropriate instrument, provided a. the security interest pertains only to the Lessee’s leasehold interest; b. the security interest does not pertain to or create any interest in City's title to the Premises; and c. the documents providing for the security interest are acceptable to the City. 2. If the assignment of a security interest to which the City has consented shall be held by an established lending or financial institution, including a bank, an established insurance company and qualified pension or profit sharing trust, and the lending institution acquires the Lessee's interest in this Lease as a result of a foreclosure action or other remedy of the secured party, or through any transfer in lieu of foreclosure, or through settlement of or arising out of any pending or contemplated foreclosure action, the lending institution may transfer its interest in this Lease to a nominee or a wholly owned subsidiary corporation with the prior written consent of the City, provided, the transferee assumes all of the covenants and conditions required to be performed by the Lessee (including payment of any monies owed by Lessee to the City under the lease). In the event of such a transfer, the lending institution shall be relieved of any further liability under this Lessee. 3. A holder of a security interest in this Lease consented to by the City shall have, and be subrogated to, any and all rights of the Lessee with respect to the curing of any default of this Lease by Lessee. 4. A holder of a security interest consented to by the City that takes possession of this Lease shall not be released from the obligations and liabilities of this Lease unless the holder assigns its leasehold estate to an assignee who is financially capable and otherwise qualified to undertake to perform and observe the conditions of this Lease and the City consents to the assignment. The City’s consent will not be unreasonably withheld. ARTICLE VII MAINTENANCE, SNOW REMOVAL & UTILITIES A. MAINTENANCE: 1. At no cost to the City, the Lessee will keep the Premises and all improvements on the Premises clean, neat and presentable, as reasonably determined by the City. 70 LEASE OF AIRPORT LANDS Page 8 of 31 2. At no cost to the City, the Lessee will provide for all maintenance and services at the Premises as may be necessary to facilitate the Lessee's compliance with this Lease and the Lessee’s use of the Premises. 3. The Lessee shall comply with all regulations or ordinances of the City that are promulgated for the promotion of sanitation. At no cost to the City, the Lessee shall keep the Premises in a clean and sanitary condition, and control activities on the Premises to prevent the pollution of water. 4. The Lessee agrees to comply with all decisions and directions of the City's Airport Manager regarding maintenance and operation of the Airport, and the use of the Airport by the Lessee. B. SNOW REMOVAL: 1. At no cost to the City, the Lessee is responsible for snow removal on the Premises. The Lessee shall dispose of snow in an off-Premises location approved in writing by the City or provide suitable snow storage within the boundaries of the Premises in accordance with all applicable federal and state laws. At the request of the Airport Manager, the Lessee shall submit a snow removal plan for the Premises to the Manager for review. Upon approval of the Lessee’s plan by the Airport Manager, the Lessee shall conduct all snow removal operations on the Premises in accordance with the approved plan. 2. Lessee shall not deposit snow on an apron, taxiway, safety area, or other aircraft-maneuvering surface provided for common use by others without the prior written of the Airport Manager. 3. Lessee agrees to not allow an accumulation of snow on the Premises that would cause interference with adjoining leaseholders or other users of the Airport. C. UTILITIES: Unless specifically provided otherwise in this Lease, the Lessee shall, at no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's use of the Premises. ARTICLE VIII OPERATIONS A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its employees, guests, contractors, sub-lessees, and vendors that perform any activity or function authorized under this Lease shall do so in a manner that ensures the safety of people, the protection of public health and the environment, and the safety and integrity of the Airport and the Premises. 71 LEASE OF AIRPORT LANDS Page 9 of 31 B. LESSEE'S CONTROL AND RESPONSIBILITY: 1. The Lessee will assume full control and sole responsibility as between Lessee and City for the activities of the Lessee, the Lessee's personnel and employees, and anyone else acting by, on behalf of, or under the authority of the Lessee on the Airport, including the Premises. 2. The Lessee will immediately notify the City of any condition, problem, malfunction or other occurrence that threatens the safety of people or the Airport, harm to public health or the environment, or the safety or integrity of the Premises. C. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or device that interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife on an airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep the Premises clean of fish slime, fish waste, or any other material that might attract birds or other wildlife. The Lessee accepts full responsibility to maintain the Premises, control operations, and take all reasonable measures to prevent a concentration of birds or other wildlife on the Premises. E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking space on the Premises for Lessee’s business or activities, or confine parking to such other places on the Airport as may be approved or designated in writing by the Airport Manager. ARTICLE IX ENVIRONMENTAL PROVISIONS A. HAZARDOUS SUBSTANCE: 1. The lessee will conduct it business and/or operation on the Premises in compliance with all environmental laws and permits. If hazardous substances are handled on the Premises, the Lessee agrees to have properly trained personnel and adequate procedures for safely storing, dispensing, and otherwise handling Hazardous Substances in accordance with all applicable federal, state and local laws. 2. Lessee will promptly give the City notice of proceeding to abate or settle matters relating to the presence of a Hazardous Substance on the Premises or from Lessee’s operations on the Airport. The Lessee will allow the City to participate in any such proceedings. B. ENVIRONMENTAL INDEMNIFICATION: If Contamination of the Premises or other 72 LEASE OF AIRPORT LANDS Page 10 of 31 property by a Hazardous Substance occurs from the Lessee’s operations on the Premises the Lessee will indemnify, defend, and hold the City harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses, including, but not limited to, sums paid in settlement of claims, attorney’s fees, consultant fees, and expert fees, which arise during or after the term of this Lease as a result of such Contamination. This indemnification of the City by Lessee includes, but is not limited to, costs incurred in connection with any investigation of site conditions or any cleanup, remediation, removal, monitoring, or restorative work required by any federal, state, or local governmental agency because of a Hazardous Substance being present in the soil or groundwater or under the Premises or other properties affected by the Contamination. C. REMEDIATION: 1. In the event of a Hazardous Substance spill on the Premises, the Lessee will immediately notify the City and the Alaska Department of Environmental Conversation and act, promptly, at its sole expense, to contain the spill, repair, any damage, absorb and clean up the spill area, and restore the Premises to a condition satisfactory to the City and otherwise comply with the applicable portions of any environmental law. 2. In addition to any notices required by this Lease, the Lessee will immediately notify and copy the City in writing of any of the following: a. Any permit, enforcement, clean up, lien, removal or other governmental or regulatory action instituted, completed, or threatened pursuant to an Environmental Law. b. Any claim made or threatened by any person against the Lessee or arising from the Lessee’s operations authorized by this Lease, relating to damage, contribution, compensation, loss or injury resulting, from, or claimed to result from any Hazardous Substances in, on, or under the Airport; or c. Any report made by, or on behalf of, the Lessee to any environmental agency arising out of or in connection with any Hazardous Substances in, on, or removed from the Premises, including any complaints, notices, warnings, or asserted violations. 3. Remediation and restoration of the contaminated area must meet all applicable state and federal regulations and must meet the requirements of all governing regulatory authorities. D. ENVIRONMENTAL AUDIT: The Lessee will provide the City with all investigative data, test results, reports, and any other information gathered or analyzed as part of or in relation to any Environmental Assessment, characterization or audit on the Premises or the Airport that Lessee performs or causes to be performed after the starting date of this Lease. The Lessee 73 LEASE OF AIRPORT LANDS Page 11 of 31 will submit the data, result, report or information to the City within 60 days following the date on which it becomes available to the Lessee. E. RELEASE OF LESSEE: The City releases the Lessee from liability to the City for Contamination and the presence of Hazardous Substances that existed prior to the commencement date of this lease unless caused or materially contributed to by the Lessee. F. SURVIVAL OF OBLIGATIONS: The obligations and duties of the City and Lessee under Article IX of this lease shall survive the cancellation, termination or expiration of this lease. ARTICLE X INDEMNIFICATION & INSURANCE A. INDEMNIFICATION: 1. The Lessee will indemnify, save harmless, and defend the City, its officers, agents, and employees from and against any and all liabilities, losses, suits, administrative actions, claims, awards, judgments, fines, demands, damages, injunctive relief or penalties of any nature or kind to the full extent of the loss or obligation for property damage, personal injury, death, violation of any regulation or grant agreement, or any other injury or harm resulting from or arising out of any acts or commission of or omission by the Lessee, Lessee’s agents, employees, customers, invitees or arising out of the Lessee’s occupation or use of the premises demised or privileges granted, and to pay all costs connected therewith. This indemnification of the City by the Lessee shall include sums paid in settlement of claims, attorney fees, consultant fees, expert fees, or other costs and expenses, directly or indirectly arising from, connected to or on account of this Lease as it relates to the Lessee, the Lessee’s activities at or relating to the Airport, or any act or omission by the Lessee, or by any of Lessee’s officers, employees, agents, contractors or sub-lessees. These indemnity obligations are in addition to, and not limited by, the Lessee’s obligation to provide insurance, and shall survive the expiration or earlier termination of this Lease. 2. The Lessee shall give the City prompt notice of any suit, claim, action or other matter affecting the City to which Paragraph 1, above, may apply, together with a copy of any letter by an attorney on behalf of a complainant, any complaint filed in court, and any notice or complaint by any regulatory agency. The City shall have the right, at its option, to participate cooperatively in the defense of, and settlement negotiations regarding, any such matter, without relieving the Lessee of any of its obligations under this provision. 3. As to any amount paid to others for personal injury or property damage with respect to which an act or omission of the City is a legal cause, notwithstanding Paragraph 1 of this section, the Lessee and the City shall reimburse each other 74 LEASE OF AIRPORT LANDS Page 12 of 31 according to the principles of comparative fault. If liability to a third party is subject to apportionment according to comparative fault under this provision, the Lessee and the City shall seek in good faith to achieve non-judicial agreement as to apportionment of fault as between themselves. This apportionment of liability between the City and the Lessee shall not be construed to affect the rights of any person who is not a party to this Lease. B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during the term of this Lease, insurance of the type and limits required by this provision. Where specific limits are set, they will be the minimum acceptable limits. If the Lessee’s policy contains higher limits, the City will be entitled to coverage to the extent of the higher limits. At the time insurance in obtained by the Lessee, all insurance shall be by a company/corporation rated “A-” or better by A.M. Best. The following policies of insurance are required with the following minimum amounts: 1. Commercial General Liability, including Premises, all operations, property damage, products and completed operations, and personal injury and death, broad-form contractual, with a per-occurrence limit of not less than $1,000,000 combined single limit. If this lease authorizes the Lessee to engage in the sale or the commercial dispensing or storage of aviation fuel, the policy must not exclude of Lessee’s fuel handling activities. This policy must name the City as an additional insured. 2. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non-owned motor vehicles used by the Lessee. 3. Workers Compensation Insurance. The Lessee will provide and maintain, for all employees, coverage as required under AS 23.30.045, and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. 4. The Lessee will provide the City with proof of insurance coverage in the form of an insurance policy or a certificate of insurance, together with proof that the premiums have been paid, showing the types and monetary limits of coverage secured. All insurance required by this provision must provide that the City be notified at least 30 days prior to any termination, cancellation, or material change in the insurance coverage. 5. If the Lessee's insurance coverage lapses or is canceled, Lessee will immediately, upon written notice by the City, halt all operations on the Airport, including the Premises. The Lessee will not resume operations until the City receives evidence that the Lessee has obtained current insurance coverage meeting the requirements of this Lease. 75 LEASE OF AIRPORT LANDS Page 13 of 31 6. The City may, at intervals of not less than five years from the beginning date of the term of this Lease and upon written notice to Lessee, revise the insurance requirements required under this Lease. City’s determination to revise the insurance requirements will be based on the risks relative to the Lessee's operations, any insurance guidelines adopted by the City, and any applicable law. 7. If the Lessee subleases all or any portion of the Premises under the provisions of this Lease, the Lessee will require the sub-lessee to provide to the insurance coverage required of the Lessee under this Article X. ARTICLE XI LAWS & TAXES A. COMPLIANCE WITH LAW: Lessee shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the Airport, the Premises or the sidewalks, alleys, streets, and ways adjacent to the Premises, or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances, and regulations which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the same. Lessee agrees to hold City financially harmless: 1. From the consequences of any violation of such laws, ordinances, and/or regulations; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation, business, or trade to be conducted on the Premises contrary to any law, ordinance, or regulation, including zoning ordinances, rules and regulations. C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits, pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from challenging any taxes or special assessments to the appropriate authority. D. LITIGATION: The Kenai municipal code, including regulations promulgated thereunder, and the laws of the State of Alaska will govern in any dispute between the Lessee and City. If a dispute continues after exhaustion of administration remedies, any lawsuit must be brought in the courts of the State of Alaska, in Kenai, Alaska. E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which, during the term of this Lease may become a lien upon or which may be levied by the State, Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee may have in or to the Premises or improvements on the Premises by reason of its use or 76 LEASE OF AIRPORT LANDS Page 14 of 31 occupancy or the terms of this Lease provided, however, that nothing in this provision shall prevent Lessee from contesting any increase in a tax or assessment under any applicable law, ordinance, or regulation. F. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms, provisions, conditions, or parts shall continue in full force and effect as though the declaration had not been made. ARTICLE XII LEASE TERMINATION A. CANCELLATION: The City may, after 30 days’ written notice to the Lessee, cancel this Lease and recover possession of the Premises if any of the following violations occur, unless the violation is cured within the 30 days: 1. The Lessee fails to pay when due the rents, additional rents, charges, or other sums specified in this Lease, including any increases made under this Lease. 2. The Lessee's check for payment of any sum due under this Lease is returned for insufficient funds. 3. The Lessee uses or authorizes the use of the Premises for any purpose not authorized by this Lease. 4. The Lessee fails to fully perform and comply with any provision in this Lease. 5. The Lessee violates a provision of Kenai Municipal Code applicable to this Lessee. 6. The court enters a judgment of insolvency against the Lessee. 7. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought by or against the Lessee, or the Lessee files a voluntary petition in bankruptcy. 8. Failure by the Lessee to comply with any land development or permanent improvement construction required by this Lease. B. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated in accordance with this Article XII, or by summary proceedings or otherwise, or upon the Lessee’s abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or representatives may, immediately or any time thereafter, re-enter, and resume possession of the Premises or portion thereof, and remove all persons and property therefrom, without being 77 LEASE OF AIRPORT LANDS Page 15 of 31 liable for any damages therefore. No re-entry by the City shall be deemed an acceptance of a surrender of the Lease. C. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will continue to pay City rent after the expiration, termination, or cancellation of this lease and to abide by the lease obligations, including providing proof of insurance coverage, through the date Lessee relinquishes possession of and completely vacates the Premises. City will consider the Premises completely vacated if the Lessee has 1. Remediated any environmental contamination for which the Lessee is responsible; 2. Restored the Premises to a neat and clean physical condition acceptable to the City. D. REASONABLE CURE: 1. In the case of a violation that cannot be reasonably cured within 30 days, a notice of cancellation issued by the City to the Lessee under this Article is stayed if, within the 30-day notice period, the Lessee begins and continues expeditious action to cure the violation. The City will determine if a violation cannot be reasonably cured within 30 days and what constitutes expeditious action. 2. In the case where, in City’s sole determination, Lessee’s violation is considered an imminent threat to the airport, public health or safety, or the environment, City will direct the Lessee to stop the activity immediately and may reduce the period to cure the violation, or the City may correct the violation pursuant to (E) of this Article. E. RIGHT OF CITY TO PERFORM: 1. If, after 30 days following notice the Lessee fails or refuses to perform any action required by this Lease, the City will have the right, but not the obligation, to perform any or all such actions required by this Lease at the sole expense of the Lessee. The City will not take action if the Lessee begins and continues expeditious action to perform any action required by this Lease that cannot be reasonably completed within 30 days. The City will, at its sole discretion, determine what constitutes expeditious action and if an action cannot be reasonably performed in 30 days. The City will submit to the Lessee an invoice for the expenses incurred by the City in the performance by the City of any required action. The Lessee will pay the amount of each invoice within 30 days from issuance. 78 LEASE OF AIRPORT LANDS Page 16 of 31 2. If Lessee fails or refuses to perform any action that has been deemed an imminent threat the City will have the right, but not the obligation, to perform any or all such actions required to expeditiously correct the imminent threat. Lessee shall reimburse the City for any cost, including legal fees and administrative costs reasonably incurred by the City in acting to correct the imminent threat violation. F. WAIVER: A waiver by the City of any default by the Lessee of any provision of this Lease will not operate as a waiver of any subsequent default. If the City waives a default, the City is not required to provide notice to the Lessee to restore or revive any term or condition under this Lease. The waiver by the City of any provision in this Lease cannot be enforced or relied upon unless the waiver is in writing and signed on behalf of the City. The City's failure to insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver or relinquishment for the future, and the provision will continue in full force. G. AIRPORT CLOSURE: 1. If the City closes the airport to aircraft operations for sixty days or less, this Lease will remain in full force and effect without adjustment 2. If the City closes the Airport to aircraft operations for more than sixty days, but not permanently, and this Lease is for aviation or direct aviation support uses, the Lessee may, upon written notice to the City, either terminate the Lease or retain the Lease and receive a fifty (50%) percent rent reduction or credit for that portion of the closure that exceeds sixty days. 3. If the City permanently closes the Airport to aircraft operations and a. this Lease is for aviation or direct aviation support uses, the Lessee may terminate this agreement by written notice to the City; or b. this Lease is for non-aviation uses, the Lessee may request in writing to have the Lease terminated. The City will consider the Lessee’s request in light of the City’s best interest and either terminate the Lease, or deny the Lessee’s request in writing. H. DISASTERS: The Lessee or City may cancel this lease upon written notice to the other party if: 1. the Premises becomes unusable through no fault of either party and performance under this lease becomes impossible; or 79 LEASE OF AIRPORT LANDS Page 17 of 31 2. the Airport becomes unusable through no fault of either party and the performance under this lease becomes impossible. If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that the Airport has become unusable, the Lessee’s obligations under the Lease will continue, but City shall be under no obligation to continue to perform. Causes for termination of the lease under this provision (G) include acts of God, the public enemy, and the United States. I. NATIONAL EMERGENCY: If the federal government declares a national emergency, neither party may hold the other liable for any inability to perform any part of this Lease as a result of the national emergency. J. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII, Lessee shall, on the last day of the term of this Lease (including any extension or renewal thereof) or upon any earlier termination of this Lease, surrender and deliver up the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. K. OWNERSHIP AND DISPOSITION OF IMPROVEMENTS: 1. Ownership of Permanent Improvements: Permanent improvements on the Premises, excluding Site Development Materials, constructed, placed, or purchased by the Lessee remain the Lessee’s property as long as this Lease remains in effect, including any period of extension or holdover with the consent of the Lessor. 2. Disposition of Site Development Materials: The Lessee acknowledges that, once placed by the Lessee, the removal from the Premises of Site Development Materials can damage the Premises, adversely affect surface water drainage patterns, and destabilize adjacent structures. When placed on the Premises by the Lessee, Site Development Materials, including building pads, parking areas, driveways, and similar structures: a. become a part of the realty and the property of the City of Kenai; b. unless otherwise directed by the Lessor, must be maintained by the Lessee throughout the term of this Lease, including any extensions and periods of holdover; and 80 LEASE OF AIRPORT LANDS Page 18 of 31 c. may not be removed by the Lessee without the prior written approval of the Lessor. 3. Disposition of Personal Property and Permanent Improvements Other Than Site Development Materials: a. Unless the Lessor otherwise directs as provided below, when this Lease expires, terminates, or is cancelled and is neither extended nor followed by a successive lease, the departing Lessee may do one or more of the following: i. remove Lessee-owned Permanent Improvements from the Premises, remediate any Contamination for which the Lessee is responsible, and restore the Premises to a clean and neat physical condition acceptable to the Lessor within 60 days after the expiration, cancellation, or termination date of this Lease; ii. with written approval from the Lessor, sell Lessee-owned Permanent Improvements to the succeeding lessee, remove all personal property, remediate, any Contamination for which the Lessee is responsible and leave the Premises in a clean and neat physical condition acceptable to the Lessor within 60 days after notice from the Lessor that the Lessor has approved an application for a lease of the Premises by another person or such longer period specified in the notice, but in no event more than 180 days after the expiration, termination, or cancellation date of this Lease; iii. elect to have the Lessor sell Lessee-owned Permanent Improvements at public auction as provided below, remediate any Contamination for which the Lessee is responsible, and restore the premises to a clean and neat physical condition acceptable to the Lessor. If the Lessor sells Permanent Improvements under this Paragraph for removal from the Premises, the departing Lessee's obligation under this Paragraph continues until the Premises are remediated and restored to a clean and neat physical condition acceptable to the Lessor after the improvements have been removed. b. If the departing Lessee elects to have the Lessor sell Lessee-owned Permanent Improvements at public auction per this Section, the Lessee shall, within 30 days after the expiration, cancellation, or termination of this Lease: 81 LEASE OF AIRPORT LANDS Page 19 of 31 i. submit to the Lessor a written request and authorization to sell the Permanent Improvements by public auction; ii. provide to the Lessor an executed conveyance document transferring clear title to the Permanent Improvements to the successful bidder at the public auction, along with authorization to the Lessor, as agent for the Lessee for purposes of the sale only, to endorse the name of the successful bidder on the conveyance document upon receipt of payment of the successful bid price; and iii. before the date of the public auction, remove all personal property, remediate any Contamination for which the Lessee is responsible and leave the Premises in a neat and clean physical condition acceptable to the Lessor. c. When selling Lessee-owned Permanent Improvements at public auction for the departing Lessee, the Lessor will establish the terms and conditions of the sale. The Lessor shall pay the Lessee any proceeds of the sale of the Permanent Improvements, less the administrative costs of the public auction and any financial obligation the Lessee owes to the Lessor under this Lease. Payment will be made within a reasonable time after the Lessor completes the sale transaction and receives the proceeds, but not to exceed 60 days. If all or a portion of the Permanent Improvements do not sell at public auction, the Lessee will remove those Permanent Improvements, remediate any Contamination for which the Lessee is responsible and restore the Premises to a clean and neat physical condition acceptable to the Lessor within 60 days after the auction. d. If the Lessee shows good cause to the Lessor and if it is not inconsistent with the best interest of the City of Kenai, the Lessor will grant an extension of time that is sufficient to allow the Lessee to remove or sell Lessee-owned Permanent Improvements, remediate any Contamination for which the Lessee is responsible and to restore the Premises to a clean and neat physical condition acceptable to the Lessor. e. The Lessor will, by written notice, direct the departing Lessee to remove Lessee-owned Permanent Improvements from the Premises, to remediate, consistent with applicable law, any Contamination for which the Lessee is responsible and to restore the Premises to a clean and neat physical condition acceptable to the Lessor if the Lessor determines in writing: 82 LEASE OF AIRPORT LANDS Page 20 of 31 i. that the continued presence of the Permanent Improvements on the Premises are not consistent with any written Airport program or plan required for compliance with applicable federal, state, or local law; ii. that the continued presence of the Permanent Improvements on the Premises is not in the best interest of the City of Kenai; or iii. that the Permanent Improvements present a hazard to public health or safety. f. The departing Lessee to whom the Lessor has issued direction under Paragraph e of this Section shall comply with the Lessor's direction within 60 days after issuance of the direction and at no cost to the Lessor. If the departing Lessee shows good cause to the Lessor, continues to work diligently to comply with Lessor’s direction, and if it is not inconsistent with the best interest of the City of Kenai, the Lessor will allow in writing a longer period that is sufficient to allow the Lessee to comply with the Lessor’s direction. A departing Lessee who fails to comply with a direction issued by the Lessor under Paragraph e of this Section, shall, within 30 days of being billed by the Lessor, reimburse the Lessor for any costs reasonably incurred by the Lessor, including legal fees and administrative costs, to enforce the Lessor’s direction or to remove and dispose of unremoved Lessee-owned improvements, remediate any Contamination for which the Lessee is responsible and restore the Premises. g. If the departing Lessee does not timely remove or sell the Lessee-owned Permanent Improvements on the Premises in accordance with the requirements of this Section, any remaining Permanent Improvements and any remaining personal property of the departing Lessee will be considered permanently abandoned. The Lessor may sell, lease, demolish, dispose of, remove, or retain the abandoned property for Airport use as the Lessor determines is in the best interest of the City of Kenai. The departing Lessee shall, within 30 days after being billed by the Lessor, reimburse the Lessor for any costs reasonably incurred by the Lessor, including legal and administrative costs, to demolish, remove, dispose, clear title to, or sell the abandoned property and to remediate and restore the Premises. h. After the expiration, termination, or cancellation of the Lease, including any holdover, the departing Lessee loses all right to occupy or use the premises without the express or implied consent of the Lessor. Except as the Lessor notifies the departing Lessee otherwise in writing, the Lessor consents to the departing Lessee's continued use and 83 LEASE OF AIRPORT LANDS Page 21 of 31 occupancy of the Premises to diligently accomplish the requirements of this Section. Until the departing Lessee relinquishes possession of and completely vacates the Premises and notifies the Lessor in writing that it has relinquished and vacated the Premises, the departing Lessee shall perform the following as if the lease were still in effect, i. pay rent to the Lessor; ii. maintain the premises; iii. provide the Lessor with evidence of each insurance coverage, if any, required under the Lease; and iv. cease using the premises other than to diligently accomplish the requirements of this Section, and to comply with the other requirements of the Lease. i. A departing Lessee will not be considered to have relinquished possession and completely vacated the Premises until i. the departing Lessee has: (a) remediated, consistent with applicable law, any Contamination for which the Lessee is responsible; and (b) restored the Premises to a clean and neat physical condition acceptable to the Lessor; and ii. either (a) removed all of the Lessee's Permanent Improvements and personal property from the premises or sold the Permanent Improvements and personal property to a succeeding Lessee under the provisions of this Lease; or (b) transferred title to the Lessee's Permanent Improvements and personal property that remain on the premises to the Lessor. ARTICLE XIII GENERAL COVENANTS A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands or facilities without the written consent of the City is prohibited. This prohibition shall not apply 84 LEASE OF AIRPORT LANDS Page 22 of 31 to use of areas designated by the City for specified public uses, such as passenger terminals, automobile parking areas, and streets. B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to recording costs, shall be paid by Lessee. C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good order at the Lessee’s own expense, allowing no damage, waste, nor destruction thereof, nor removing any material therefrom, without written permission of the City. At the expiration of the term fixed, or any earlier termination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the Premises by the Lessee must be compatible with its surroundings and consistent with the uses authorized under this Lease, as determined by the City. The Lessee must obtain the City’s written approval before placing fill material, beginning any land development, or constructing or demolishing any improvements on the Premises, and before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation, together with specifications or any other information the City reasonably requires. Further, the Lessee will submit to City evidence of the Lessee’s compliance with Federal Aviation Administration regulation 14 CFR Part 77. E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS: Lessee agrees that City may modify this Lease to meet revised requirements for Federal or State grants, or to conform to the requirements of any revenue bond covenant. However, the modification shall not act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee financial loss. F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and covenants that the Lessee, upon paying rent and performing other covenants, terms, and conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and enjoy the Premises, except that the following shall not construed as a denial of the right of quiet or peaceable possession: 1. Any inconvenience caused by public works projects in or about the Premises; and 2. Any other entries by the City on the Premises reserved or authorized under other provisions of this Lease. G. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that the City shall not be construed or held to be a partner or joint venture of Lessee in the conduct of the Lessee’s activities or business on the Premises. The relationship between the City and the Lessee is, and shall at all times remain, strictly that of landlord and tenant, respectively. 85 LEASE OF AIRPORT LANDS Page 23 of 31 H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or state law. The Lessee recognizes the right of the City to take any action necessary to enforce this provision, including actions required pursuant to any federal or state law. I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will undertake an affirmative action program to insure that no person will be excluded from participating in any employment activities offered by the Lessee on the grounds of race, creed, color, national origin, or sex. No person may be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by subpart E. The Lessee further agrees that it will require its sub-organization(s) provide assurance to the City to the same effect that they will also undertake affirmative action programs and require assurances from their sub-organization(s) as required by 14 CFR, Part 152, subpart E. Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to title 49, code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted programs of the Department of Transportation- Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulation may be amended. J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms, conditions, and agreements of the parties and supersedes any previous understandings or agreements regarding the Premises whether oral or written. No modification or amendment of this Lease is effective unless in writing and signed on behalf of the City and the Lessee. K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce reasonable rules and regulations governing the Airport, including the Premises. The City shall not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights under this Lease, on account of the exercise of the City’s authority reserved under this provision. Furthermore, the Lessee shall not be entitled to terminate the whole or any portion of the leasehold estate created under this Lease, by reason of the exercise of the City’s authority reserved under this provision, unless the exercise thereof so interferes with Lessee's use and occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease by operation of law under the laws of the State of Alaska and of the United States made applicable to the states. L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not permit any liens including, but not limited to, mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the Premises or improvements on the Premises for any labor or material furnished to Lessee or claimed to have been furnished to Lessee or to the Lessee's agents, contractors, or sub-lessees, in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Lessee. Provided, however, the Lessee shall have the 86 LEASE OF AIRPORT LANDS Page 24 of 31 right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Lessee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Lessee's own expense. M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned and taken for a public or a quasi-public use, then upon payment of any award or compensation arising from the condemnation or taking, the City and the Lessee shall make a good faith effort to agree upon 1. the division of the proceeds; 2. the abatement in rent payable during the term or any extension of the term of this Lease; and 3. other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If, within thirty days after the award has been paid into Court, the City and Lessee are unable to agree upon what division, abatement in rent, and other adjustments as are just and equitable, the dispute shall be determined by arbitration. N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations on assignment as are provided for in this Lease. O. NOTICES: 1. Any notices required by this Lease must be in writing and must be delivered personally or mailed by certified or registered mail in a prepaid envelope. A mailed notice a. must be addressed to the respective party at the address written on the first page of this Lease or to the latest address designated in accordance with (2) of this Provision (O); and b. shall be deemed delivered on the date it is deposited in a U.S. general or branch post office. 2. The City or the Lessee may, from time to time, designate a new address at which they will receive notices by providing the other party with written notice at least 15 days prior to the effective date of the change. An address change notice must be delivered according to the procedure set out in (1) of this Provision (O). 87 LEASE OF AIRPORT LANDS Page 25 of 31 P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any breach by the Lessee, the City shall retain any unused balance of the rental payment last made by the Lessee City as partial or total liquidated damages for the breach. Q. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and take all necessary action to suppress destructive or uncontrolled fires and comply with all laws, regulations, and rules promulgated and enforced by the City for fire protection on the Airport. R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral, or in any deposit of stone or gravel valuable for extraction or utilization is included in the Premises or in the rights granted by this lease. The Lessee shall not sell or remove from the Premises for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes. S. APPROVAL OF OTHER AUTHORITIES: The granting of this lease by the City does not relieve the Lessee of the responsibility to obtain any license or permit as may be required by federal, state, or local law. T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the Lessee, or a duly authorized representative of Lessee, and an authorized representative of the City. U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and do not necessarily define, limit, describe, or construe the contents of any provision. V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property available for private use, while at all times protecting the public interest to the greatest extent possible. Following the rule that transfers of interest in public property are to be strictly construed in favor of the public property landlord, all rights granted to the Lessee under this Lease will be strictly construed, and all rights of the City and the protections of the public interest will be liberally construed. W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read this Lease and fully understands its terms, that the Lessee has been fully advised or has had the opportunity of advice by separate legal counsel, and voluntarily executes this Lease. Lessee also acknowledges and agrees that the rule of interpretation under which a document is construed against the drafter will not apply to this Lease. X. APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will not be unreasonably withheld. The Lessor’s approval does not waive the Lessee's legal responsibility or liability to comply with all applicable federal and state laws and regulations. ARTICLE XIV SURVEY, IMPROVEMENTS AND PERFORMANCE BOND A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish 88 LEASE OF AIRPORT LANDS Page 26 of 31 the physical location of the boundaries of the Premises prior to beginning any construction thereon, including clearing grubbing, back-filling and environmental sampling. Any survey of the Premises shall be performed by a Land Surveyor registered in the State of Alaska. The Lessee shall furnish the City with a copy of the plat of any survey performed on the Premises by, or on behalf of, the Lessee. B. IMPROVEMENTS: 1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including ____________________________________________________, by no later than ____________________________, with an aggregate cost of at least $__________________, excluding financing costs. In addition to the as- built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than $_____________. The evidence of cost must be submitted to the City within sixty days of the completion of the development and improvements, but by no later than ________________. a. Costs considered toward the aggregate cost of permanent improvements include building construction, design, labor, materials, materials shipping, permits, equipment, soil testing, environmental baseline report, and environmental assessment directly related to the construction; premises and as-built surveys; site preparation, including excavation, geotextile fabric, filling, grading, fill material, gravel, and pavement, remediation of environmental contamination (unless Lessee caused or Materially Contributed To the Contamination); and utility connection costs. b. The cost of Permanent Improvements excludes: 1. work performed by the City and not reimbursed by the Lessee; and 2. work performed by the Lessee and reimbursed by the City. 2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete the required construction within the time allowed under (b)(1) of this Article, including any extensions granted, the City will execute against and the Lessee will forfeit, any bond or other guarantee given by the Lessee and, as applicable, City will: a. initiate cancellation of the lease; or 89 LEASE OF AIRPORT LANDS Page 27 of 31 b. reduce the term of the lease to a period that is consistent with the portion of the required construction timely completed. 3. APPEARANCE: When completed, all improvements on the Premises must be neat, presentable, and compatible with the authorized use of the Premises under this Lease, as determined by the City. 4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City’s written approval before beginning any land development, construction or demolition of any improvements on the Premises, or before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation. Further, the Lessee will submit to City evidence of the Lessee’s compliance with the FAA regulation 14 CFR Part 77. 5. CITY APPROVAL WITHHELD: The City’s approval of any construction, alteration, modification, or renovation will not be withheld unless a. the Lessee fails to demonstrate adequate financial resources to complete the project; b. the project plans, specifications, and agency approvals are incomplete; c. the proposed project would result in a violation of an applicable ordinance, regulation, or law; d. the proposed project would interfere with or is incompatible with the safety, security, maintenance, or operation of the airport; e. the proposed project is inconsistent with the Airport Master Plan; f. the proposed project is inconsistent with the terms of the lease, zoning ordinances, or the City’s Comprehensive Plan; g. the project plans do not make sufficient provision for drainage, aircraft, vehicle, and equipment parking, or for snow storage; or h. the proposed project does not conform to generally recognized engineering principles or applicable fire or building codes. 6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises, Lessee will deliver to City a written scope of work that, at a minimum, lists the structure(s) that are to be demolished and the timeframe for demolition and removal of the debris from the Airport. City will review Lessee’s scope for demolition and issue Lessee written approval for the work to be done. 90 LEASE OF AIRPORT LANDS Page 28 of 31 7. BUILDING SETBACK: No building or other permanent structure may be constructed or placed within twenty feet of any lot of the Premises without City’s prior written approval. In addition, no building or other permanent structure may be constructed or placed within twenty feet of any boundary line of the Premises which fronts on a landing strip, taxiway, or apron. 8. AS-BUILT DRAWINGS: Within sixty days after completion of construction or placement of improvements upon the Premises, the Lessee will deliver to the City a copy of an as-built drawing, acceptable to the City, showing the location and dimensions of the improvements, giving distances to all Premises’ boundaries. If the Lessee constructs underground improvements, the Lessee will appropriately mark the surface of the land with adequate surface markers. The type, quantity, and distance between such markers will be subject to approval of the City. 9. AIRPORT SECURITY FENCING: If any construction by the Lessee requires a realignment or alteration of an existing security fence on the Premises or boundary of the Premises, the Lessee agrees to realign or alter the fence in a manner approved in writing by the Airport Manager. Anytime the fence must be breached to allow the Lessee to complete improvement construction or fence modifications, the Lessee shall, at the Lessee’s sole expense place temporary barriers to maintain the security of the Airport, as determined by the Airport Manager. If damage occurs to a security fence on the Premises or boundary of the Premises in connection with the Lessee’s use or occupation of the Premises, the Lessee shall promptly repair the fence to the satisfaction of the Airport Manager. 10. DAMAGE TO IMPROVEMENTS: If Lessee’s improvements on the Premises are damaged or destroyed, Lessee will cause the improvements to be repaired or rebuilt, and restored to normal function within two years following the damage or destruction. If the Lessee fails to timely rebuild or restore the improvements, the City may, at its sole discretion, either reduce the term of this Lease commensurate with the estimated value of the Lessee’s remaining, fully functional improvements on the Premises, or cancel this Lease. 11. DAMAGE NEAR EXPIRATION: If Lessee’s improvements are damaged to the extent that more than 50% of the space is unusable and the damage occurs within five years of the expiration of the term of this Lease, Lessee may remove the damaged improvements, restore the Premises and terminate this Lease. C. PERFORMANCE BOND (Optional): Prior to beginning the construction of permanent improvements required under (1) of this Article, the Lessee shall submit to the City a performance bond, deposit, or other security in the amount of $_______________. The form of the bond or other security shall be subject to the City’s approval. 91 LEASE OF AIRPORT LANDS Page 29 of 31 D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the term of this Lease, including any extension or renewal, or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in City without requirement of any deed, conveyance, or bill of sale thereon. However, if City should require any such document in confirmation hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed by any and all governmental unites in connection herewith. E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three days prior to commencing any construction project valued in excess of $1,000.00 on the Premises. The Lessee agrees to assist in the posting of a notice of non-responsibility and maintenance of the notice on the Premises during construction. Lessee agrees that in the event the Lessee fails to notify the City as required by this Provision (f), the Lessee shall indemnify the City against any materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the premises. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. LESSEE: LESSOR: City of Kenai By: By: Lessee Name Date Terry Eubank Date Its: Director Its: City Manager 92 LEASE OF AIRPORT LANDS Page 30 of 31 ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _________, 20__, Name: Lessee Name, Director, of____________________________________, 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 JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _________, 20__, Terry Eubank, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires: ATTEST: ____________________________ , City Clerk SEAL: 93 LEASE OF AIRPORT LANDS Page 31 of 31 Approved as to Lease Form: _________________________ Scott Bloom, City Attorney AFTER RECORDING RETURN TO: City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 94 MEMORANDUM TO: Airport Commission THROUGH: Linda Mitchell, Planning Director FROM: Brandon McElrea, Planning Technician DATE: May 1, 2024 SUBJECT: Action/Approval – Lease of Airport Reserve Land for the Property Described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5 D & M Land Company, LLC (“D & M Land Co.”) submitted a land lease application of Airport Reserve Land for the property described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5, located at 155 N. Willow Street (KPB Parcel No. 04324026). The applicant is requesting a term of 45 years and proposing an investment amount of approximately $1,000,000 to erect an airplane hangar. Pursuant to Kenai Municipal Code (KMC) 21.10.080(b) [Lease] Term Table, the maximum term for the proposed investment value is 45 years. The 30-day notice of competitive land lease application will expire on May 10, 2024. As-of-date, the City has not received any competing lease applications for the subject property. The applicant intends to use the premises for an airplane hangar to support a local airline, such as Kenai Aviation. D & M Land Co. does not currently hold any leases with the City. However, Mike Schilling, a member of the D & M Land Co. is also the single-member of Schilling Rentals, LLC (“Schilling”), which Schilling is in compliance with the terms and conditions of their leases. The subject property is approximately 1.071 acres and located within the Airport Light Industrial (ALI) Zone. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as a significant resource to the community by encouraging compatible land uses and reducing hazards that may endanger the lives and property of the public and aviation users. The proposed use of an aircraft hangar is a permitted use in the ALI Zone and is an airport compatible use. It is in conformance with the airport layout plan, airport master plan, Federal Aviation Administration (FAA) regulations applicable to the airport, airport improvement projects, airport sponsor grant assurances to the FAA, and airport regulations and operations. A new hangar with the intent to support a local airline will further promote the viability of the Kenai Municipal Airport. Furthermore, the proposed use is consistent with the 2016 Imagine Kenai 2030 Comprehensive Plan. It supports Goal 5- Transportation, which has a vision for Kenai Municipal Airport as a gateway to the Kenai Peninsula. City of Kenai I 210 ~idalgo Ave , Kenai , AK 99611-7794 I 907.283.7535 I www.kenai .city 95 Page 2 of 2 Pursuant to KMC 21.20.010(c), the Airport Commission shall act in an advisory capacity to City Council and the Airport Manager. The Planning and Zoning Commission will also review the lease application and provide a recommendation to City Council. City Council will be notified of your commission’s recommendation as part of their consideration of the lease application. Does your Commission recommend approval to City Council on the lease application of Airport Reserve Land for the use of a hangar for airplane storage at the property described as Lot 9A, Block 5, General Aviation Apron Subdivision No. 5? Attachments Aerial Map Application Standard Lease Form The City of Kenai I www.kenai.city 96 LEASE OF AIRPORT LANDS Page 1 of 31 KENAI MUNICIPAL AIRPORT LEASE OF AIRPORT RESERVE LANDS THIS LEASE AGREEMENT entered into this ________ day of ___________, 20__, by and between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794, and _____________________________________, whose address is ________________________ __________________________________ (“Lessee”). DEFINITIONS For the purposes of this Lease the following terms are defined in KMC 21.10.020 (effective as of the date of execution of the lease) as follows: 1. Airport – the Kenai Municipal Airport, including all the runways, taxiways, aprons, water lanes, water taxiways, and all City-owned real estate located within the boundaries of the Airport Reserve as defined in KMC Chapter 21.05, Airport Administration and Operation. 2. Airport Manager – the official to whom the City Manager of the City has delegated the authority and responsibility of managing and directing the activities of the Airport. “Airport Manager” includes that person’s authorized representative. 3. City – the City of Kenai, its elected officials, officers, employees or agents. 4. City Manager – the official to whom the Kenai City Council has delegated the responsibility of managing and directing all activities of the City. 5. Contamination – the unpermitted presence of any released Hazardous Substance. 6. Environmental Law – any applicable federal, state, or local statute, law, regulation, ordinance, code, permit, order, decision, judgment of any governmental entity relating to environmental matters, including littering and dumping. 7. FAA – the abbreviation for the Federal Aviation Administration. 8. Hazardous Substance – any substance that is defined under an Environmental Law as hazardous waste, Hazardous Substance, hazardous material, toxic, pollutant, contaminant, petroleum, petroleum product, or oil. 9. KMC – the abbreviation for the Kenai Municipal Code. 10. Permanent Improvement – a fixed addition or change to land that is not temporary or portable, including a building, building addition, gravel fill, pavement, retaining wall, storage tank, well, and remediation of contamination for what the lessee is not responsible 100 LEASE OF AIRPORT LANDS Page 2 of 31 ARTICLE I PREMISES LEASED A. PREMISES: In consideration of Lessee’s payment of the rents and performance of all the covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the City, the following described property (“Premises”) in the Kenai Recording District, Third Judicial District, State of Alaska and located on the Airport; to wit: Description of Lease Property B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific warranties, expressed or implied, concerning the condition of the Premises including, survey, soils, wetlands, access, and suitability or profitability for any use including those authorized by this Lease, its environmental condition, or the presence or absence of Hazardous Substances in, on, and under the surface. The Lessee takes the Premises on an “as is” basis and without warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title to the Premises. ARTICLE II RIGHTS AND USES A. AUTHORIZED USES: 1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the following purposes only: List authorized uses and limitations 2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing, the Lessee will operate on the Premises on a continuous basis, uninterrupted by any period of closure over 15 consecutive days. The Lessee will give the City written notice before closing the Lessee’s business on the Premises for more than 10 consecutive days. The notice must state the reason for the closure and the date on which the Lessee will re-open for business. This provision does not apply to any period during which the Lessee is unable to operate its business as a result of an act or directive of the City, or as a result of a closure of the Airport or loss of the Lessee’s buildings on the Premises due to fire or natural disaster. B. RIGHTS RESERVED TO THE CITY: 1. RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others any rights and privileges not specifically granted to the Lessee on an exclusive basis. The rights and privileges granted to the Lessee in this Lease are the only rights and privileges granted to the Lessee by this Lease. 101 LEASE OF AIRPORT LANDS Page 3 of 31 2. EASEMENTS: The City reserves the right to make grants to third parties or reserve to the City easements or rights of way through, on, or above the Premises. The City will not grant or reserve any easement or right of way that unreasonably interferes with the Lessee’s authorized uses of the Premises. 3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress to and egress from the Premises and the right to enter any part of the Premises, including buildings, for the purpose of inspection or environmental testing at any time. Except in the case of an emergency, all inspections and environmental testing will be coordinated with the Lessee to minimize interference with the Lessee’s authorized uses of the Premises. 4. RIGHT OF FLIGHT: There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface of the Premises. This public right of flight will include the right to cause in the airspace any noise inherent in the operation of any aircraft used for navigation or flight through the airspace or landing at, taking off from, or operation on the Airport. C. PROHIBITED USES: Unless specifically authorized by this Lease or an amendment to this Lease, the following are prohibited: 1. Any use of the Premises other than those authorized in this Lease. 2. Any use of the Premises that is in violation of a City Ordinance or an Airport regulation. 3. The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non-operational support equipment, unused or damaged equipment or material, or solid waste or debris unless allowed pursuant to a conditional use permit under KMC 14.20. 4. The disposal on the Premises or the Airport of waste materials generated by the Lessee, including any Hazardous Substance, slash, overburden, and construction waste. 5. The stripping, wasting, or removing any material from the Premises without the prior written approval of the City. 6. Erecting structures or allowing growth of natural objects that would constitute an obstruction to air navigation, or allowing any activity on the Premises that would interfere with or be a hazard to the flight of aircraft, or interfere with air navigation or communication facilities, serving the Airport. 7. Any use or activity that is prohibited by applicable law or regulation. 102 LEASE OF AIRPORT LANDS Page 4 of 31 ARTICLE III TERM & HOLDOVER A. TERM: The initial term of this Lease is for __________ years, from the 1st day of ________________, 20__, to the 30th day of _______________, 20__. B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after the expiration, cancellation or termination of this Lease, the holding over will not operate as an extension of the term of this Lease, but only creates a month-to-month tenancy, regardless of any rent payments accepted by the City. The Lessee's obligations for performance under this Lease will continue during the month-to-month tenancy. The City or Lessee may terminate the Lessee’s holdover with ten days’ advance written notice. ARTICLE IV RENTS AND FEES A. RENT: The initial rent for the Premises is $________.00 per year, as established by the City pursuant KMC 21.10.090 and as subject to annual adjustment on July 1 of each year under Article V of this Lease, plus applicable sales tax. The rent shall be payable annually in advance of the first day of each year of the term of this Lease. All payments required by this Lease must be made in U.S. dollars. If the annual rent exceeds $2,400, the Lessee may, upon written notice to the City, choose to pay the rent in equal monthly installments, payable in advance on or before the anniversary date of the term of this Lease and thereafter at monthly intervals. No conversion of the payment schedule from annual to monthly shall result in the City receiving less rent than it would have received had the conversion not taken place. 1. Rent Credit: A rent credit may be applied for a maximum of five years of lease payments as provided in KMC 21.10.100 (as effective at the time this lease is executed). Once the work is completed and value determined, a credit will be applied to the lease payments, prorated as necessary for the successive five years. 2. Any Rent Credit provided will be retroactively and prospectively revoked, and the full rent credited will become automatically due within 30 days of any failure to complete construction of any and all improvements within the time periods required as described in this Lease. Failure to repay the City within 30 days for all rent credited should repayment become due, will be considered a breach of terms of this Lease, subjecting the Lease to termination at the City’s discretion. B. RENT PRORATED: Rental for any period less than one year shall be prorated on the basis of the rent payable under this Lease in last full year previous to the prorating. C. ADDITIONAL RENT: In addition to the rent specified in (a) of this Article, Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as follows: 1. Taxes pertaining to the leasehold interest of the Lessee. 103 LEASE OF AIRPORT LANDS Page 5 of 31 2. Sales tax now enforced or levied in the future, computed upon rent payable in monthly installments whether the Lessee pays rent under this Lease on a monthly or annual basis. 3. All taxes and assessments levied in the future by the City, as if Lessee was the legal owner of record of the Premises. D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders payable to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210 Fidalgo Avenue, Suite 200, Kenai, Alaska 99611-7794 or any other address the City may designate in writing to the Lessee. E. INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and fees required under this Lease will accrue interest at the rate of eight percent (8.0%) per annum. Interest on disputed amounts will not be charged to the Lessee if the dispute is resolved in the Lessee’s favor. F. LATE PAYMENT PENALTY: In addition to any interest payable under Provision (E) of this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease, the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%) of the amount due and unpaid. G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due, regardless of whether or not the Lessee receives a billing statement from the City. H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due and unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the Lessee’s property, real or personal. I. PAYMENT OF CITY’S COSTS: The Lessee will pay all reasonable actual expenses, costs, and attorney fees City may incur, with or without formal action, to enforce, defend, or protect this Lease or City's rights under this Lease, including any expense incurred with respect to environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease, the Premises, or improvements or personal property on the Premises. The Lessee will make payment within 30 days of the date of each notice from City of any amounts payable under this provision. J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee for any special services or facilities the City agrees to perform, which the City is not otherwise obligated by this Lease to provide and which the Lessee requests from the City in writing. ARTICLE V ADJUSTMENT OF RENT AND FEES 104 LEASE OF AIRPORT LANDS Page 6 of 31 A. RENT OR FEE ADJUSTMENT: The City shall adjust rent or fees payable by the Lessee under Article IV or other provisions of this lease on July 1 of each year of the lease as proved in KMC 21.10.090 (as effective at the time this lease is executed) and shall make any other adjustments to rent as allowed for in KMC 21.10.090. No rent or fee change shall be effective until 30 days after the date of the City’s written notice to the Lessee. If the Lessee believes that any changed rent exceeds the fair market rent for the Premises, the Lessee may appeal a rent change to the City as provided in KMC 21.10.090. ARTICLE VI ASSIGNMENT & SUBLETTING A. INVALID WITHOUT CITY’S CONSENT: The Lessee may not assign, sublet, or grant a security interest in, by grant or implication, the whole or any part of this Lease, the Premises, or any improvement on the Premises without the written consent of the City. Any proposed assignment, sublease, or security interest must be written and must be submitted to the City bearing the original, notarized signature of all parties. The Lessee may submit unsigned draft documents for the City’s conceptual review. However, the City’s conceptual approval of a draft document may not be construed as the City’s consent to any assignment, sublease, or security interest. All provisions in this Lease extend to and bind the assignees and sub-lessees of the Lessee. B. NO WAIVER OF CONSENT: The City’s consent to one assignment, sublease, or security interest will not waive the requirement for the Lessee to obtain the City’s consent to any other assignment, sublease, or security interest. C. ASSIGNEE / LESSEE OBLIGATIONS: An assignment must include a provision stating that the assignee accepts responsibility for all of the assignor’s (Lessee’s) obligations under this Lease, including environmental liability and responsibility. However, unless the City specifically releases the Lessee in writing, the City may hold the Lessee responsible for performing any obligation under this lease which an assignee fails to perform. D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sub-lessee may not occupy the Premises before the City consents to the assignment or sublease in writing. E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an assignment or a sublease, the terms of this Lease control. F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City’s consent to any sublease does not relieve or otherwise alter the Lessee’s obligations under this Lease. G. SECURITY ASSIGNMENTS AND FINANCING: 105 LEASE OF AIRPORT LANDS Page 7 of 31 1.Subject to the requirements of (A) of this Article VI, the Lessee may assign a security interest in this Lease. The security interest may be in the form of a mortgage, deed of trust, assignment or other appropriate instrument, provided a.the security interest pertains only to the Lessee’s leasehold interest; b.the security interest does not pertain to or create any interest in City's title to the Premises; and c.the documents providing for the security interest are acceptable to the City. 2.If the assignment of a security interest to which the City has consented shall be held by an established lending or financial institution, including a bank, an established insurance company and qualified pension or profit sharing trust, and the lending institution acquires the Lessee's interest in this Lease as a result of a foreclosure action or other remedy of the secured party, or through any transfer in lieu of foreclosure, or through settlement of or arising out of any pending or contemplated foreclosure action, the lending institution may transfer its interest in this Lease to a nominee or a wholly owned subsidiary corporation with the prior written consent of the City, provided, the transferee assumes all of the covenants and conditions required to be performed by the Lessee (including payment of any monies owed by Lessee to the City under the lease). In the event of such a transfer, the lending institution shall be relieved of any further liability under this Lessee. 3.A holder of a security interest in this Lease consented to by the City shall have, and be subrogated to, any and all rights of the Lessee with respect to the curing of any default of this Lease by Lessee. 4.A holder of a security interest consented to by the City that takes possession of this Lease shall not be released from the obligations and liabilities of this Lease unless the holder assigns its leasehold estate to an assignee who is financially capable and otherwise qualified to undertake to perform and observe the conditions of this Lease and the City consents to the assignment. The City’s consent will not be unreasonably withheld. ARTICLE VII MAINTENANCE, SNOW REMOVAL & UTILITIES A.MAINTENANCE: 1.At no cost to the City, the Lessee will keep the Premises and all improvements on the Premises clean, neat and presentable, as reasonably determined by the City. 106 LEASE OF AIRPORT LANDS Page 8 of 31 2. At no cost to the City, the Lessee will provide for all maintenance and services at the Premises as may be necessary to facilitate the Lessee's compliance with this Lease and the Lessee’s use of the Premises. 3. The Lessee shall comply with all regulations or ordinances of the City that are promulgated for the promotion of sanitation. At no cost to the City, the Lessee shall keep the Premises in a clean and sanitary condition, and control activities on the Premises to prevent the pollution of water. 4. The Lessee agrees to comply with all decisions and directions of the City's Airport Manager regarding maintenance and operation of the Airport, and the use of the Airport by the Lessee. B. SNOW REMOVAL: 1. At no cost to the City, the Lessee is responsible for snow removal on the Premises. The Lessee shall dispose of snow in an off-Premises location approved in writing by the City or provide suitable snow storage within the boundaries of the Premises in accordance with all applicable federal and state laws. At the request of the Airport Manager, the Lessee shall submit a snow removal plan for the Premises to the Manager for review. Upon approval of the Lessee’s plan by the Airport Manager, the Lessee shall conduct all snow removal operations on the Premises in accordance with the approved plan. 2. Lessee shall not deposit snow on an apron, taxiway, safety area, or other aircraft-maneuvering surface provided for common use by others without the prior written of the Airport Manager. 3. Lessee agrees to not allow an accumulation of snow on the Premises that would cause interference with adjoining leaseholders or other users of the Airport. C. UTILITIES: Unless specifically provided otherwise in this Lease, the Lessee shall, at no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's use of the Premises. ARTICLE VIII OPERATIONS A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its employees, guests, contractors, sub-lessees, and vendors that perform any activity or function authorized under this Lease shall do so in a manner that ensures the safety of people, the protection of public health and the environment, and the safety and integrity of the Airport and the Premises. 107 LEASE OF AIRPORT LANDS Page 9 of 31 B. LESSEE'S CONTROL AND RESPONSIBILITY: 1. The Lessee will assume full control and sole responsibility as between Lessee and City for the activities of the Lessee, the Lessee's personnel and employees, and anyone else acting by, on behalf of, or under the authority of the Lessee on the Airport, including the Premises. 2. The Lessee will immediately notify the City of any condition, problem, malfunction or other occurrence that threatens the safety of people or the Airport, harm to public health or the environment, or the safety or integrity of the Premises. C. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or device that interferes with any government-operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife on an airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep the Premises clean of fish slime, fish waste, or any other material that might attract birds or other wildlife. The Lessee accepts full responsibility to maintain the Premises, control operations, and take all reasonable measures to prevent a concentration of birds or other wildlife on the Premises. E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking space on the Premises for Lessee’s business or activities, or confine parking to such other places on the Airport as may be approved or designated in writing by the Airport Manager. ARTICLE IX ENVIRONMENTAL PROVISIONS A. HAZARDOUS SUBSTANCE: 1. The lessee will conduct it business and/or operation on the Premises in compliance with all environmental laws and permits. If hazardous substances are handled on the Premises, the Lessee agrees to have properly trained personnel and adequate procedures for safely storing, dispensing, and otherwise handling Hazardous Substances in accordance with all applicable federal, state and local laws. 2. Lessee will promptly give the City notice of proceeding to abate or settle matters relating to the presence of a Hazardous Substance on the Premises or from Lessee’s operations on the Airport. The Lessee will allow the City to participate in any such proceedings. B. ENVIRONMENTAL INDEMNIFICATION: If Contamination of the Premises or other 108 LEASE OF AIRPORT LANDS Page 10 of 31 property by a Hazardous Substance occurs from the Lessee’s operations on the Premises the Lessee will indemnify, defend, and hold the City harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses, including, but not limited to, sums paid in settlement of claims, attorney’s fees, consultant fees, and expert fees, which arise during or after the term of this Lease as a result of such Contamination. This indemnification of the City by Lessee includes, but is not limited to, costs incurred in connection with any investigation of site conditions or any cleanup, remediation, removal, monitoring, or restorative work required by any federal, state, or local governmental agency because of a Hazardous Substance being present in the soil or groundwater or under the Premises or other properties affected by the Contamination. C. REMEDIATION: 1. In the event of a Hazardous Substance spill on the Premises, the Lessee will immediately notify the City and the Alaska Department of Environmental Conversation and act, promptly, at its sole expense, to contain the spill, repair, any damage, absorb and clean up the spill area, and restore the Premises to a condition satisfactory to the City and otherwise comply with the applicable portions of any environmental law. 2. In addition to any notices required by this Lease, the Lessee will immediately notify and copy the City in writing of any of the following: a. Any permit, enforcement, clean up, lien, removal or other governmental or regulatory action instituted, completed, or threatened pursuant to an Environmental Law. b. Any claim made or threatened by any person against the Lessee or arising from the Lessee’s operations authorized by this Lease, relating to damage, contribution, compensation, loss or injury resulting, from, or claimed to result from any Hazardous Substances in, on, or under the Airport; or c. Any report made by, or on behalf of, the Lessee to any environmental agency arising out of or in connection with any Hazardous Substances in, on, or removed from the Premises, including any complaints, notices, warnings, or asserted violations. 3. Remediation and restoration of the contaminated area must meet all applicable state and federal regulations and must meet the requirements of all governing regulatory authorities. D. ENVIRONMENTAL AUDIT: The Lessee will provide the City with all investigative data, test results, reports, and any other information gathered or analyzed as part of or in relation to any Environmental Assessment, characterization or audit on the Premises or the Airport that Lessee performs or causes to be performed after the starting date of this Lease. The Lessee 109 LEASE OF AIRPORT LANDS Page 11 of 31 will submit the data, result, report or information to the City within 60 days following the date on which it becomes available to the Lessee. E. RELEASE OF LESSEE: The City releases the Lessee from liability to the City for Contamination and the presence of Hazardous Substances that existed prior to the commencement date of this lease unless caused or materially contributed to by the Lessee. F. SURVIVAL OF OBLIGATIONS: The obligations and duties of the City and Lessee under Article IX of this lease shall survive the cancellation, termination or expiration of this lease. ARTICLE X INDEMNIFICATION & INSURANCE A. INDEMNIFICATION: 1. The Lessee will indemnify, save harmless, and defend the City, its officers, agents, and employees from and against any and all liabilities, losses, suits, administrative actions, claims, awards, judgments, fines, demands, damages, injunctive relief or penalties of any nature or kind to the full extent of the loss or obligation for property damage, personal injury, death, violation of any regulation or grant agreement, or any other injury or harm resulting from or arising out of any acts or commission of or omission by the Lessee, Lessee’s agents, employees, customers, invitees or arising out of the Lessee’s occupation or use of the premises demised or privileges granted, and to pay all costs connected therewith. This indemnification of the City by the Lessee shall include sums paid in settlement of claims, attorney fees, consultant fees, expert fees, or other costs and expenses, directly or indirectly arising from, connected to or on account of this Lease as it relates to the Lessee, the Lessee’s activities at or relating to the Airport, or any act or omission by the Lessee, or by any of Lessee’s officers, employees, agents, contractors or sub-lessees. These indemnity obligations are in addition to, and not limited by, the Lessee’s obligation to provide insurance, and shall survive the expiration or earlier termination of this Lease. 2. The Lessee shall give the City prompt notice of any suit, claim, action or other matter affecting the City to which Paragraph 1, above, may apply, together with a copy of any letter by an attorney on behalf of a complainant, any complaint filed in court, and any notice or complaint by any regulatory agency. The City shall have the right, at its option, to participate cooperatively in the defense of, and settlement negotiations regarding, any such matter, without relieving the Lessee of any of its obligations under this provision. 3. As to any amount paid to others for personal injury or property damage with respect to which an act or omission of the City is a legal cause, notwithstanding Paragraph 1 of this section, the Lessee and the City shall reimburse each other 110 LEASE OF AIRPORT LANDS Page 12 of 31 according to the principles of comparative fault. If liability to a third party is subject to apportionment according to comparative fault under this provision, the Lessee and the City shall seek in good faith to achieve non-judicial agreement as to apportionment of fault as between themselves. This apportionment of liability between the City and the Lessee shall not be construed to affect the rights of any person who is not a party to this Lease. B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during the term of this Lease, insurance of the type and limits required by this provision. Where specific limits are set, they will be the minimum acceptable limits. If the Lessee’s policy contains higher limits, the City will be entitled to coverage to the extent of the higher limits. At the time insurance in obtained by the Lessee, all insurance shall be by a company/corporation rated “A-” or better by A.M. Best. The following policies of insurance are required with the following minimum amounts: 1. Commercial General Liability, including Premises, all operations, property damage, products and completed operations, and personal injury and death, broad-form contractual, with a per-occurrence limit of not less than $1,000,000 combined single limit. If this lease authorizes the Lessee to engage in the sale or the commercial dispensing or storage of aviation fuel, the policy must not exclude of Lessee’s fuel handling activities. This policy must name the City as an additional insured. 2. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non-owned motor vehicles used by the Lessee. 3. Workers Compensation Insurance. The Lessee will provide and maintain, for all employees, coverage as required under AS 23.30.045, and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. 4. The Lessee will provide the City with proof of insurance coverage in the form of an insurance policy or a certificate of insurance, together with proof that the premiums have been paid, showing the types and monetary limits of coverage secured. All insurance required by this provision must provide that the City be notified at least 30 days prior to any termination, cancellation, or material change in the insurance coverage. 5. If the Lessee's insurance coverage lapses or is canceled, Lessee will immediately, upon written notice by the City, halt all operations on the Airport, including the Premises. The Lessee will not resume operations until the City receives evidence that the Lessee has obtained current insurance coverage meeting the requirements of this Lease. 111 LEASE OF AIRPORT LANDS Page 13 of 31 6. The City may, at intervals of not less than five years from the beginning date of the term of this Lease and upon written notice to Lessee, revise the insurance requirements required under this Lease. City’s determination to revise the insurance requirements will be based on the risks relative to the Lessee's operations, any insurance guidelines adopted by the City, and any applicable law. 7. If the Lessee subleases all or any portion of the Premises under the provisions of this Lease, the Lessee will require the sub-lessee to provide to the insurance coverage required of the Lessee under this Article X. ARTICLE XI LAWS & TAXES A. COMPLIANCE WITH LAW: Lessee shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the Airport, the Premises or the sidewalks, alleys, streets, and ways adjacent to the Premises, or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances, and regulations which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the same. Lessee agrees to hold City financially harmless: 1. From the consequences of any violation of such laws, ordinances, and/or regulations; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation, business, or trade to be conducted on the Premises contrary to any law, ordinance, or regulation, including zoning ordinances, rules and regulations. C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits, pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from challenging any taxes or special assessments to the appropriate authority. D. LITIGATION: The Kenai municipal code, including regulations promulgated thereunder, and the laws of the State of Alaska will govern in any dispute between the Lessee and City. If a dispute continues after exhaustion of administration remedies, any lawsuit must be brought in the courts of the State of Alaska, in Kenai, Alaska. E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which, during the term of this Lease may become a lien upon or which may be levied by the State, Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee may have in or to the Premises or improvements on the Premises by reason of its use or 112 LEASE OF AIRPORT LANDS Page 14 of 31 occupancy or the terms of this Lease provided, however, that nothing in this provision shall prevent Lessee from contesting any increase in a tax or assessment under any applicable law, ordinance, or regulation. F. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms, provisions, conditions, or parts shall continue in full force and effect as though the declaration had not been made. ARTICLE XII LEASE TERMINATION A. CANCELLATION: The City may, after 30 days’ written notice to the Lessee, cancel this Lease and recover possession of the Premises if any of the following violations occur, unless the violation is cured within the 30 days: 1. The Lessee fails to pay when due the rents, additional rents, charges, or other sums specified in this Lease, including any increases made under this Lease. 2. The Lessee's check for payment of any sum due under this Lease is returned for insufficient funds. 3. The Lessee uses or authorizes the use of the Premises for any purpose not authorized by this Lease. 4. The Lessee fails to fully perform and comply with any provision in this Lease. 5. The Lessee violates a provision of Kenai Municipal Code applicable to this Lessee. 6. The court enters a judgment of insolvency against the Lessee. 7. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought by or against the Lessee, or the Lessee files a voluntary petition in bankruptcy. 8. Failure by the Lessee to comply with any land development or permanent improvement construction required by this Lease. B. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated in accordance with this Article XII, or by summary proceedings or otherwise, or upon the Lessee’s abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or representatives may, immediately or any time thereafter, re-enter, and resume possession of the Premises or portion thereof, and remove all persons and property therefrom, without being 113 LEASE OF AIRPORT LANDS Page 15 of 31 liable for any damages therefore. No re-entry by the City shall be deemed an acceptance of a surrender of the Lease. C. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will continue to pay City rent after the expiration, termination, or cancellation of this lease and to abide by the lease obligations, including providing proof of insurance coverage, through the date Lessee relinquishes possession of and completely vacates the Premises. City will consider the Premises completely vacated if the Lessee has 1. Remediated any environmental contamination for which the Lessee is responsible; 2. Restored the Premises to a neat and clean physical condition acceptable to the City. D. REASONABLE CURE: 1. In the case of a violation that cannot be reasonably cured within 30 days, a notice of cancellation issued by the City to the Lessee under this Article is stayed if, within the 30-day notice period, the Lessee begins and continues expeditious action to cure the violation. The City will determine if a violation cannot be reasonably cured within 30 days and what constitutes expeditious action. 2. In the case where, in City’s sole determination, Lessee’s violation is considered an imminent threat to the airport, public health or safety, or the environment, City will direct the Lessee to stop the activity immediately and may reduce the period to cure the violation, or the City may correct the violation pursuant to (E) of this Article. E. RIGHT OF CITY TO PERFORM: 1. If, after 30 days following notice the Lessee fails or refuses to perform any action required by this Lease, the City will have the right, but not the obligation, to perform any or all such actions required by this Lease at the sole expense of the Lessee. The City will not take action if the Lessee begins and continues expeditious action to perform any action required by this Lease that cannot be reasonably completed within 30 days. The City will, at its sole discretion, determine what constitutes expeditious action and if an action cannot be reasonably performed in 30 days. The City will submit to the Lessee an invoice for the expenses incurred by the City in the performance by the City of any required action. The Lessee will pay the amount of each invoice within 30 days from issuance. 114 LEASE OF AIRPORT LANDS Page 16 of 31 2. If Lessee fails or refuses to perform any action that has been deemed an imminent threat the City will have the right, but not the obligation, to perform any or all such actions required to expeditiously correct the imminent threat. Lessee shall reimburse the City for any cost, including legal fees and administrative costs reasonably incurred by the City in acting to correct the imminent threat violation. F. WAIVER: A waiver by the City of any default by the Lessee of any provision of this Lease will not operate as a waiver of any subsequent default. If the City waives a default, the City is not required to provide notice to the Lessee to restore or revive any term or condition under this Lease. The waiver by the City of any provision in this Lease cannot be enforced or relied upon unless the waiver is in writing and signed on behalf of the City. The City's failure to insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver or relinquishment for the future, and the provision will continue in full force. G. AIRPORT CLOSURE: 1. If the City closes the airport to aircraft operations for sixty days or less, this Lease will remain in full force and effect without adjustment 2. If the City closes the Airport to aircraft operations for more than sixty days, but not permanently, and this Lease is for aviation or direct aviation support uses, the Lessee may, upon written notice to the City, either terminate the Lease or retain the Lease and receive a fifty (50%) percent rent reduction or credit for that portion of the closure that exceeds sixty days. 3. If the City permanently closes the Airport to aircraft operations and a. this Lease is for aviation or direct aviation support uses, the Lessee may terminate this agreement by written notice to the City; or b. this Lease is for non-aviation uses, the Lessee may request in writing to have the Lease terminated. The City will consider the Lessee’s request in light of the City’s best interest and either terminate the Lease, or deny the Lessee’s request in writing. H. DISASTERS: The Lessee or City may cancel this lease upon written notice to the other party if: 1. the Premises becomes unusable through no fault of either party and performance under this lease becomes impossible; or 115 LEASE OF AIRPORT LANDS Page 17 of 31 2. the Airport becomes unusable through no fault of either party and the performance under this lease becomes impossible. If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that the Airport has become unusable, the Lessee’s obligations under the Lease will continue, but City shall be under no obligation to continue to perform. Causes for termination of the lease under this provision (G) include acts of God, the public enemy, and the United States. I. NATIONAL EMERGENCY: If the federal government declares a national emergency, neither party may hold the other liable for any inability to perform any part of this Lease as a result of the national emergency. J. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII, Lessee shall, on the last day of the term of this Lease (including any extension or renewal thereof) or upon any earlier termination of this Lease, surrender and deliver up the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. K. OWNERSHIP AND DISPOSITION OF IMPROVEMENTS: 1. Ownership of Permanent Improvements: Permanent improvements on the Premises, excluding Site Development Materials, constructed, placed, or purchased by the Lessee remain the Lessee’s property as long as this Lease remains in effect, including any period of extension or holdover with the consent of the Lessor. 2. Disposition of Site Development Materials: The Lessee acknowledges that, once placed by the Lessee, the removal from the Premises of Site Development Materials can damage the Premises, adversely affect surface water drainage patterns, and destabilize adjacent structures. When placed on the Premises by the Lessee, Site Development Materials, including building pads, parking areas, driveways, and similar structures: a. become a part of the realty and the property of the City of Kenai; b. unless otherwise directed by the Lessor, must be maintained by the Lessee throughout the term of this Lease, including any extensions and periods of holdover; and 116 LEASE OF AIRPORT LANDS Page 18 of 31 c. may not be removed by the Lessee without the prior written approval of the Lessor. 3. Disposition of Personal Property and Permanent Improvements Other Than Site Development Materials: a. Unless the Lessor otherwise directs as provided below, when this Lease expires, terminates, or is cancelled and is neither extended nor followed by a successive lease, the departing Lessee may do one or more of the following: i. remove Lessee-owned Permanent Improvements from the Premises, remediate any Contamination for which the Lessee is responsible, and restore the Premises to a clean and neat physical condition acceptable to the Lessor within 60 days after the expiration, cancellation, or termination date of this Lease; ii. with written approval from the Lessor, sell Lessee-owned Permanent Improvements to the succeeding lessee, remove all personal property, remediate, any Contamination for which the Lessee is responsible and leave the Premises in a clean and neat physical condition acceptable to the Lessor within 60 days after notice from the Lessor that the Lessor has approved an application for a lease of the Premises by another person or such longer period specified in the notice, but in no event more than 180 days after the expiration, termination, or cancellation date of this Lease; iii. elect to have the Lessor sell Lessee-owned Permanent Improvements at public auction as provided below, remediate any Contamination for which the Lessee is responsible, and restore the premises to a clean and neat physical condition acceptable to the Lessor. If the Lessor sells Permanent Improvements under this Paragraph for removal from the Premises, the departing Lessee's obligation under this Paragraph continues until the Premises are remediated and restored to a clean and neat physical condition acceptable to the Lessor after the improvements have been removed. b. If the departing Lessee elects to have the Lessor sell Lessee-owned Permanent Improvements at public auction per this Section, the Lessee shall, within 30 days after the expiration, cancellation, or termination of this Lease: 117 LEASE OF AIRPORT LANDS Page 19 of 31 i. submit to the Lessor a written request and authorization to sell the Permanent Improvements by public auction; ii. provide to the Lessor an executed conveyance document transferring clear title to the Permanent Improvements to the successful bidder at the public auction, along with authorization to the Lessor, as agent for the Lessee for purposes of the sale only, to endorse the name of the successful bidder on the conveyance document upon receipt of payment of the successful bid price; and iii. before the date of the public auction, remove all personal property, remediate any Contamination for which the Lessee is responsible and leave the Premises in a neat and clean physical condition acceptable to the Lessor. c. When selling Lessee-owned Permanent Improvements at public auction for the departing Lessee, the Lessor will establish the terms and conditions of the sale. The Lessor shall pay the Lessee any proceeds of the sale of the Permanent Improvements, less the administrative costs of the public auction and any financial obligation the Lessee owes to the Lessor under this Lease. Payment will be made within a reasonable time after the Lessor completes the sale transaction and receives the proceeds, but not to exceed 60 days. If all or a portion of the Permanent Improvements do not sell at public auction, the Lessee will remove those Permanent Improvements, remediate any Contamination for which the Lessee is responsible and restore the Premises to a clean and neat physical condition acceptable to the Lessor within 60 days after the auction. d. If the Lessee shows good cause to the Lessor and if it is not inconsistent with the best interest of the City of Kenai, the Lessor will grant an extension of time that is sufficient to allow the Lessee to remove or sell Lessee-owned Permanent Improvements, remediate any Contamination for which the Lessee is responsible and to restore the Premises to a clean and neat physical condition acceptable to the Lessor. e. The Lessor will, by written notice, direct the departing Lessee to remove Lessee-owned Permanent Improvements from the Premises, to remediate, consistent with applicable law, any Contamination for which the Lessee is responsible and to restore the Premises to a clean and neat physical condition acceptable to the Lessor if the Lessor determines in writing: 118 LEASE OF AIRPORT LANDS Page 20 of 31 i. that the continued presence of the Permanent Improvements on the Premises are not consistent with any written Airport program or plan required for compliance with applicable federal, state, or local law; ii. that the continued presence of the Permanent Improvements on the Premises is not in the best interest of the City of Kenai; or iii. that the Permanent Improvements present a hazard to public health or safety. f. The departing Lessee to whom the Lessor has issued direction under Paragraph e of this Section shall comply with the Lessor's direction within 60 days after issuance of the direction and at no cost to the Lessor. If the departing Lessee shows good cause to the Lessor, continues to work diligently to comply with Lessor’s direction, and if it is not inconsistent with the best interest of the City of Kenai, the Lessor will allow in writing a longer period that is sufficient to allow the Lessee to comply with the Lessor’s direction. A departing Lessee who fails to comply with a direction issued by the Lessor under Paragraph e of this Section, shall, within 30 days of being billed by the Lessor, reimburse the Lessor for any costs reasonably incurred by the Lessor, including legal fees and administrative costs, to enforce the Lessor’s direction or to remove and dispose of unremoved Lessee-owned improvements, remediate any Contamination for which the Lessee is responsible and restore the Premises. g. If the departing Lessee does not timely remove or sell the Lessee-owned Permanent Improvements on the Premises in accordance with the requirements of this Section, any remaining Permanent Improvements and any remaining personal property of the departing Lessee will be considered permanently abandoned. The Lessor may sell, lease, demolish, dispose of, remove, or retain the abandoned property for Airport use as the Lessor determines is in the best interest of the City of Kenai. The departing Lessee shall, within 30 days after being billed by the Lessor, reimburse the Lessor for any costs reasonably incurred by the Lessor, including legal and administrative costs, to demolish, remove, dispose, clear title to, or sell the abandoned property and to remediate and restore the Premises. h. After the expiration, termination, or cancellation of the Lease, including any holdover, the departing Lessee loses all right to occupy or use the premises without the express or implied consent of the Lessor. Except as the Lessor notifies the departing Lessee otherwise in writing, the Lessor consents to the departing Lessee's continued use and 119 LEASE OF AIRPORT LANDS Page 21 of 31 occupancy of the Premises to diligently accomplish the requirements of this Section. Until the departing Lessee relinquishes possession of and completely vacates the Premises and notifies the Lessor in writing that it has relinquished and vacated the Premises, the departing Lessee shall perform the following as if the lease were still in effect, i. pay rent to the Lessor; ii. maintain the premises; iii. provide the Lessor with evidence of each insurance coverage, if any, required under the Lease; and iv. cease using the premises other than to diligently accomplish the requirements of this Section, and to comply with the other requirements of the Lease. i. A departing Lessee will not be considered to have relinquished possession and completely vacated the Premises until i. the departing Lessee has: (a) remediated, consistent with applicable law, any Contamination for which the Lessee is responsible; and (b) restored the Premises to a clean and neat physical condition acceptable to the Lessor; and ii. either (a) removed all of the Lessee's Permanent Improvements and personal property from the premises or sold the Permanent Improvements and personal property to a succeeding Lessee under the provisions of this Lease; or (b) transferred title to the Lessee's Permanent Improvements and personal property that remain on the premises to the Lessor. ARTICLE XIII GENERAL COVENANTS A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport lands or facilities without the written consent of the City is prohibited. This prohibition shall not apply 120 LEASE OF AIRPORT LANDS Page 22 of 31 to use of areas designated by the City for specified public uses, such as passenger terminals, automobile parking areas, and streets. B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to recording costs, shall be paid by Lessee. C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good order at the Lessee’s own expense, allowing no damage, waste, nor destruction thereof, nor removing any material therefrom, without written permission of the City. At the expiration of the term fixed, or any earlier termination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the Premises by the Lessee must be compatible with its surroundings and consistent with the uses authorized under this Lease, as determined by the City. The Lessee must obtain the City’s written approval before placing fill material, beginning any land development, or constructing or demolishing any improvements on the Premises, and before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation, together with specifications or any other information the City reasonably requires. Further, the Lessee will submit to City evidence of the Lessee’s compliance with Federal Aviation Administration regulation 14 CFR Part 77. E. LEASE SUBORDINATE TO AIRPORT FINANCING REQUIREMENTS: Lessee agrees that City may modify this Lease to meet revised requirements for Federal or State grants, or to conform to the requirements of any revenue bond covenant. However, the modification shall not act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee financial loss. F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and covenants that the Lessee, upon paying rent and performing other covenants, terms, and conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and enjoy the Premises, except that the following shall not construed as a denial of the right of quiet or peaceable possession: 1. Any inconvenience caused by public works projects in or about the Premises; and 2. Any other entries by the City on the Premises reserved or authorized under other provisions of this Lease. G. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that the City shall not be construed or held to be a partner or joint venture of Lessee in the conduct of the Lessee’s activities or business on the Premises. The relationship between the City and the Lessee is, and shall at all times remain, strictly that of landlord and tenant, respectively. 121 LEASE OF AIRPORT LANDS Page 23 of 31 H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or state law. The Lessee recognizes the right of the City to take any action necessary to enforce this provision, including actions required pursuant to any federal or state law. I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will undertake an affirmative action program to insure that no person will be excluded from participating in any employment activities offered by the Lessee on the grounds of race, creed, color, national origin, or sex. No person may be excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by subpart E. The Lessee further agrees that it will require its sub-organization(s) provide assurance to the City to the same effect that they will also undertake affirmative action programs and require assurances from their sub-organization(s) as required by 14 CFR, Part 152, subpart E. Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to title 49, code of Federal Regulations, DOT, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally-Assisted programs of the Department of Transportation- Effectuation of Title VI of the Civil Rights Act of 1964, and as the Regulation may be amended. J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms, conditions, and agreements of the parties and supersedes any previous understandings or agreements regarding the Premises whether oral or written. No modification or amendment of this Lease is effective unless in writing and signed on behalf of the City and the Lessee. K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce reasonable rules and regulations governing the Airport, including the Premises. The City shall not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights under this Lease, on account of the exercise of the City’s authority reserved under this provision. Furthermore, the Lessee shall not be entitled to terminate the whole or any portion of the leasehold estate created under this Lease, by reason of the exercise of the City’s authority reserved under this provision, unless the exercise thereof so interferes with Lessee's use and occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease by operation of law under the laws of the State of Alaska and of the United States made applicable to the states. L. LESSEE'S OBLIGATION TO PREVENT AND REMOVE LIENS: Lessee will not permit any liens including, but not limited to, mechanics', laborers', or materialmen's liens obtainable or available under the then existing laws, to stand against the Premises or improvements on the Premises for any labor or material furnished to Lessee or claimed to have been furnished to Lessee or to the Lessee's agents, contractors, or sub-lessees, in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Lessee. Provided, however, the Lessee shall have the 122 LEASE OF AIRPORT LANDS Page 24 of 31 right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Lessee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Lessee's own expense. M. CONDEMNATION: In the event the Premises or any part thereof shall be condemned and taken for a public or a quasi-public use, then upon payment of any award or compensation arising from the condemnation or taking, the City and the Lessee shall make a good faith effort to agree upon 1. the division of the proceeds; 2. the abatement in rent payable during the term or any extension of the term of this Lease; and 3. other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If, within thirty days after the award has been paid into Court, the City and Lessee are unable to agree upon what division, abatement in rent, and other adjustments as are just and equitable, the dispute shall be determined by arbitration. N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations on assignment as are provided for in this Lease. O. NOTICES: 1. Any notices required by this Lease must be in writing and must be delivered personally or mailed by certified or registered mail in a prepaid envelope. A mailed notice a. must be addressed to the respective party at the address written on the first page of this Lease or to the latest address designated in accordance with (2) of this Provision (O); and b. shall be deemed delivered on the date it is deposited in a U.S. general or branch post office. 2. The City or the Lessee may, from time to time, designate a new address at which they will receive notices by providing the other party with written notice at least 15 days prior to the effective date of the change. An address change notice must be delivered according to the procedure set out in (1) of this Provision (O). 123 LEASE OF AIRPORT LANDS Page 25 of 31 P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any breach by the Lessee, the City shall retain any unused balance of the rental payment last made by the Lessee City as partial or total liquidated damages for the breach. Q. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and take all necessary action to suppress destructive or uncontrolled fires and comply with all laws, regulations, and rules promulgated and enforced by the City for fire protection on the Airport. R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral, or in any deposit of stone or gravel valuable for extraction or utilization is included in the Premises or in the rights granted by this lease. The Lessee shall not sell or remove from the Premises for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes. S. APPROVAL OF OTHER AUTHORITIES: The granting of this lease by the City does not relieve the Lessee of the responsibility to obtain any license or permit as may be required by federal, state, or local law. T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the Lessee, or a duly authorized representative of Lessee, and an authorized representative of the City. U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and do not necessarily define, limit, describe, or construe the contents of any provision. V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property available for private use, while at all times protecting the public interest to the greatest extent possible. Following the rule that transfers of interest in public property are to be strictly construed in favor of the public property landlord, all rights granted to the Lessee under this Lease will be strictly construed, and all rights of the City and the protections of the public interest will be liberally construed. W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read this Lease and fully understands its terms, that the Lessee has been fully advised or has had the opportunity of advice by separate legal counsel, and voluntarily executes this Lease. Lessee also acknowledges and agrees that the rule of interpretation under which a document is construed against the drafter will not apply to this Lease. X. APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will not be unreasonably withheld. The Lessor’s approval does not waive the Lessee's legal responsibility or liability to comply with all applicable federal and state laws and regulations. ARTICLE XIV SURVEY, IMPROVEMENTS AND PERFORMANCE BOND A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish 124 LEASE OF AIRPORT LANDS Page 26 of 31 the physical location of the boundaries of the Premises prior to beginning any construction thereon, including clearing grubbing, back-filling and environmental sampling. Any survey of the Premises shall be performed by a Land Surveyor registered in the State of Alaska. The Lessee shall furnish the City with a copy of the plat of any survey performed on the Premises by, or on behalf of, the Lessee. B. IMPROVEMENTS: 1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including ____________________________________________________, by no later than ____________________________, with an aggregate cost of at least $__________________, excluding financing costs. In addition to the as- built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than $_____________. The evidence of cost must be submitted to the City within sixty days of the completion of the development and improvements, but by no later than ________________. a. Costs considered toward the aggregate cost of permanent improvements include building construction, design, labor, materials, materials shipping, permits, equipment, soil testing, environmental baseline report, and environmental assessment directly related to the construction; premises and as-built surveys; site preparation, including excavation, geotextile fabric, filling, grading, fill material, gravel, and pavement, remediation of environmental contamination (unless Lessee caused or Materially Contributed To the Contamination); and utility connection costs. b. The cost of Permanent Improvements excludes: 1. work performed by the City and not reimbursed by the Lessee; and 2. work performed by the Lessee and reimbursed by the City. 2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete the required construction within the time allowed under (b)(1) of this Article, including any extensions granted, the City will execute against and the Lessee will forfeit, any bond or other guarantee given by the Lessee and, as applicable, City will: a. initiate cancellation of the lease; or 125 LEASE OF AIRPORT LANDS Page 27 of 31 b. reduce the term of the lease to a period that is consistent with the portion of the required construction timely completed. 3. APPEARANCE: When completed, all improvements on the Premises must be neat, presentable, and compatible with the authorized use of the Premises under this Lease, as determined by the City. 4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City’s written approval before beginning any land development, construction or demolition of any improvements on the Premises, or before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation. Further, the Lessee will submit to City evidence of the Lessee’s compliance with the FAA regulation 14 CFR Part 77. 5. CITY APPROVAL WITHHELD: The City’s approval of any construction, alteration, modification, or renovation will not be withheld unless a. the Lessee fails to demonstrate adequate financial resources to complete the project; b. the project plans, specifications, and agency approvals are incomplete; c. the proposed project would result in a violation of an applicable ordinance, regulation, or law; d. the proposed project would interfere with or is incompatible with the safety, security, maintenance, or operation of the airport; e. the proposed project is inconsistent with the Airport Master Plan; f. the proposed project is inconsistent with the terms of the lease, zoning ordinances, or the City’s Comprehensive Plan; g. the project plans do not make sufficient provision for drainage, aircraft, vehicle, and equipment parking, or for snow storage; or h. the proposed project does not conform to generally recognized engineering principles or applicable fire or building codes. 6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises, Lessee will deliver to City a written scope of work that, at a minimum, lists the structure(s) that are to be demolished and the timeframe for demolition and removal of the debris from the Airport. City will review Lessee’s scope for demolition and issue Lessee written approval for the work to be done. 126 LEASE OF AIRPORT LANDS Page 28 of 31 7. BUILDING SETBACK: No building or other permanent structure may be constructed or placed within twenty feet of any lot of the Premises without City’s prior written approval. In addition, no building or other permanent structure may be constructed or placed within twenty feet of any boundary line of the Premises which fronts on a landing strip, taxiway, or apron. 8. AS-BUILT DRAWINGS: Within sixty days after completion of construction or placement of improvements upon the Premises, the Lessee will deliver to the City a copy of an as-built drawing, acceptable to the City, showing the location and dimensions of the improvements, giving distances to all Premises’ boundaries. If the Lessee constructs underground improvements, the Lessee will appropriately mark the surface of the land with adequate surface markers. The type, quantity, and distance between such markers will be subject to approval of the City. 9. AIRPORT SECURITY FENCING: If any construction by the Lessee requires a realignment or alteration of an existing security fence on the Premises or boundary of the Premises, the Lessee agrees to realign or alter the fence in a manner approved in writing by the Airport Manager. Anytime the fence must be breached to allow the Lessee to complete improvement construction or fence modifications, the Lessee shall, at the Lessee’s sole expense place temporary barriers to maintain the security of the Airport, as determined by the Airport Manager. If damage occurs to a security fence on the Premises or boundary of the Premises in connection with the Lessee’s use or occupation of the Premises, the Lessee shall promptly repair the fence to the satisfaction of the Airport Manager. 10. DAMAGE TO IMPROVEMENTS: If Lessee’s improvements on the Premises are damaged or destroyed, Lessee will cause the improvements to be repaired or rebuilt, and restored to normal function within two years following the damage or destruction. If the Lessee fails to timely rebuild or restore the improvements, the City may, at its sole discretion, either reduce the term of this Lease commensurate with the estimated value of the Lessee’s remaining, fully functional improvements on the Premises, or cancel this Lease. 11. DAMAGE NEAR EXPIRATION: If Lessee’s improvements are damaged to the extent that more than 50% of the space is unusable and the damage occurs within five years of the expiration of the term of this Lease, Lessee may remove the damaged improvements, restore the Premises and terminate this Lease. C. PERFORMANCE BOND (Optional): Prior to beginning the construction of permanent improvements required under (1) of this Article, the Lessee shall submit to the City a performance bond, deposit, or other security in the amount of $_______________. The form of the bond or other security shall be subject to the City’s approval. 127 LEASE OF AIRPORT LANDS Page 29 of 31 D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the term of this Lease, including any extension or renewal, or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in City without requirement of any deed, conveyance, or bill of sale thereon. However, if City should require any such document in confirmation hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed by any and all governmental unites in connection herewith. E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three days prior to commencing any construction project valued in excess of $1,000.00 on the Premises. The Lessee agrees to assist in the posting of a notice of non-responsibility and maintenance of the notice on the Premises during construction. Lessee agrees that in the event the Lessee fails to notify the City as required by this Provision (f), the Lessee shall indemnify the City against any materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the premises. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. LESSEE: LESSOR: City of Kenai By: By: Lessee Name Date Terry Eubank Date Its: Director Its: City Manager 128 LEASE OF AIRPORT LANDS Page 30 of 31 ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _________, 20__, Name: Lessee Name, Director, of____________________________________, 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 JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _________, 20__, Terry Eubank, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission Expires: ATTEST: ____________________________ , City Clerk SEAL: 129 LEASE OF AIRPORT LANDS Page 31 of 31 Approved as to Lease Form: _________________________ Scott Bloom, City Attorney AFTER RECORDING RETURN TO: City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 130 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 From: Derek Ables – Airport Manager Date: May 1, 2024 Subject: Crowley Fuels LLC - Special Use Permit Crowley Fuels LLC is requesting a Special Use Permit for approximately 35,000 square feet for aviation fueling on the apron fueling area. The Special Use Permit will be effective for one year from July 1, 2024 to June 30, 2025. Crowley Fuels LLC has submitted the Special Use Permit application and paid the fee. Crowley Fuels LLC is current in all fees owed to the City and a current Certificate of Insurance is on file. Does Commission recommend Council approve the Special Use Permit to Crowley Fuels LLC? Attachment- Application, Exhibit A, Special Use Permit Municipal Airport 131 EXHIBIT A Crowley I I EXHIBIT A 133 Special Use Permit FY2025—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, 2024 and ending on June 30, 2025. Regardless of the date of signature, this Permit shall be effective as of July 1, 2024. 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 $1,866.67 ($0.64/SF/Year) 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) 134 Special Use Permit FY2025—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. 135 Special Use Permit FY2025—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 abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 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, 136 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 4 of 8 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, 2024. The effective date of the insurance shall be no later than July 1, 2024. 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. 137 Special Use Permit FY2025—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 the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 138 Special Use Permit FY2025—Crowley (Apron Fueling Area) 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 139 Special Use Permit FY2025—Crowley (Apron Fueling Area) 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 Crowley Fuels LLC., and where the context reasonably indicates, its officers, agents, and employees. “Airport” means the Kenai Municipal Airport. 140 Special Use Permit FY2025—Crowley (Apron Fueling Area) Page 8 of 8 CITY OF KENAI CROWLEY FUELS LLC By: By: Terry Eubank Date Katharine J. Fontaine Date City Manager Vice President of Operations ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing instrument was acknowledged before me by Terry Eubank, 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 ______________, 2024, the foregoing instrument was acknowledged before me by Katharine J. Fontaine, Vice President of Operations, 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 141 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 From: Derek Ables – Airport Manager Date: May 1, 2024 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, 2024 to June 30, 2025. United Parcel Service Co., Inc. has submitted the Special Use Permit application and paid the fee. United Parcel Service is current in all fees owed to the City and a current Certificate of Insurance is on file. Does Commission recommend Council approve the Special Use Permit to UPSCO United Parcel Service Co., Inc.? Attachment- Exhibit A, Application, Special Use Permit Municipal Airport 142 Exhibit A 143 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 1 of 7 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, 2024 and ending on June 30, 2025. Regardless of the date of signature, this Permit shall be effective as of July 1, 2024. 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 $466.67 ($1.40/SF/Year) 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 timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination) 145 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 2 of 7 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 146 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 3 of 7 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. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 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. 147 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 4 of 7 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. 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, 2024. The effective date of the insurance shall be no later than July 1, 2024. 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 148 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 5 of 7 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. 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. 13. 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. 14. 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. 15. 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. 16. 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. 17. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 18. 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. 19. 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. 149 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 6 of 7 20. Personality. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personality of Permittee or of its customers. 21. 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. 22. 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. 23. 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. 150 Special Use Permit—UPSCO (Aircraft Loading & Parking) Page 7 of 7 CITY OF KENAI UPSCO United Parcel Service Co., Inc. By: By: Terry Eubank 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 _____________, 2024, the foregoing instrument was acknowledged before me by TERRY EUBANK, 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 ______________, 2024, 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 151 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 From: Derek Ables – Airport Manager Date: May 1, 2024 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, 2024 to June 30, 2025. Empire Airlines has submitted the Special Use Permit Application and paid the fee. Empire Airlines is current in all fees owed to the City and a current Certificate of Insurance is on file. Does Commission recommend Council approve the Special Use Permit to Empire Airlines, Inc.? Attachments- Application, Exhibit A, Special Use Permit Municipal Airport 152 Exhibit A ENA SUP - Empire Airlines (11,250 SF) N ➤➤ N Image © 2023 CNES / Airbus Image © 2023 CNES / Airbus Image © 2023 CNES / Airbus 154 Temporary Places Page 1Google Earth Pro 155 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and 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 approximately 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, 2024 and ending on June 30, 2025. Regardless of the date of signature, this Permit shall be effective as of July 1, 2024. 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 $1,312.50 ($1.40/SF/Year) 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 timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination) 156 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and 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 157 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 3 of 8 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. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 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. 158 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 4 of 8 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. 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, 2024. The effective date of the insurance shall be no later than July 1, 2024. 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 159 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 5 of 8 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. 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. 13. 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. 14. 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. 15. 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. 16. 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. 17. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 18. 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. 19. 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. 160 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 6 of 8 20. Personality. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personality of Permittee or of its customers. 21. 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. 22. 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. 23. 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. 161 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 7 of 8 24. 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. 162 Special Use Permit—Empire Airlines, Inc. (Aircraft Loading and Parking) Page 8 of 8 CITY OF KENAI EMPIRE AIRLINES, INC. By: By: Terry Eubank 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 _____________, 2024, the foregoing instrument was acknowledged before me by Terry Eubank, 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 ______________, 2024, 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 163 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: Derek Ables - Airport Manager From: Sarah Conley – Administrative Assistant Date: May 1, 2024 Subject: Everts Air Fuel Inc. - Special Use Permit Everts Air Fuel, Inc. is requesting a Special Use Permit for 30,000 square feet of apron space for aircraft parking and loading for bulk fuel deliveries. The Special Use Permit will be effective for one year from July 1, 2024 to June 30, 2025. Everts Air Fuel, Inc. has submitted the Special Use Permit Application and paid the fee. Everts Air Fuel, Inc. is current in all fees owed to the City and a current Certificate of Insurance is on file. Does Commission recommend Council approve the Special Use Permit to Everts Air Fuel, Inc.? Attachments- Application, Exhibit A, Special Use Permit Municipal Airport 164 166 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, 2024 and ending on June 30, 2025. Regardless of the date of signature, this Permit shall be effective as of July 1, 2024. 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 $3,500.00 ($1.40/SF/Year) 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) 167 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 168 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 3 of 8 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. 7. Coordination with Airport Management. Permittee shall abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 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. 169 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 4 of 8 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. 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, 2024. The effective date of the insurance shall be no later than July 1, 2024. 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 170 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 5 of 8 exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated to protect asphalt from adverse effects of petroleum product spills. The City requires that Permittee provide adequate absorbent materials and tools available on the Premises and at the airport in order to maintain a fuel spill and response capability. Permittee shall be liable for any damage caused by and costs associated with any spill, the cleanup of any spill, or the 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. 171 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 6 of 8 13. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 14. No Discrimination. Permittee shall not discriminate against any person because of the person’s race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Permittee will furnish services provided under this Permit on a reasonable, and not unjustly 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 172 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 7 of 8 the City, if not removed upon termination of this Permit and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai is not responsible for any damage to or theft of any personality 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. 173 Special Use Permit—Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 8 of 8 CITY OF KENAI EVERTS AIR FUEL, INC. By: By: Terry Eubank Date Robert W. Everts Date City Manager Consultant ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing instrument was acknowledged before me by Terry Eubank, 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 ______________, 2024, the foregoing instrument was acknowledged before me by Robert W. 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 174 Kenai City Council - Regular Meeting Page 1 of 3 April 17, 2024 Kenai City Council - Regular Meeting April 17, 2024 ꟷ 6:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 3** Action Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items 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 ADMINISTRATIVE REPORTS C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. ENACTED UNANIMOUSLY. Ordinance No. 3407-2024 - Accepting and Appropriating a Volunteer Fire Assistance Grant from the United States Department of Agriculture Forest Service Passed through the State of Alaska Division of Forestry for the Purchase of Forestry Firefighting Equipment. (Administration) 2. ENACTED UNANIMOUSLY. Ordinance No. 3408-2024 - Accepting and Appropriating a State of Alaska Code Blue Fiscal Year 2025 Grant Passed through the Southern Region EMS Council, Inc. to Purchase Two Video Laryngoscopes. (Administration) 3. ADOPTED UNANIMOUSLY. Resolution No. 2024-14 - Authorizing a Contract Award and Corresponding Purchase Order for Professional Architectural and Engineering Services for the Water Treatment Plant Pumphouse Project. (Administration) 4. ADOPTED UNANIMOUSLY. Resolution No. 2024-15 - Approving Amendments to the Agreement for Contract Services for Vintage Pointe Manor Congregate Housing. (Administration) F. MINUTES 1. *Regular Meeting of April 3, 2024. (City Clerk) G. UNFINISHED BUSINESS ~ K(;NAI 175 Kenai City Council - Regular Meeting Page 2 of 3 April 17, 2024 H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council Approval in Accordance with KMC 7.15.020. (Administration) 3. APPROVED UNANIMOUSLY BY SUBSTITUTE. *Action/Approval - Special Use Permit to Jeremy Mastre, DBA: River Rock Outdoors, LLC for Commercial Operations at the Kenai Municipal Airport Float Plane Basin. (Administration) 4. *Ordinance No. 3409-2024 - Increasing Estimated Revenues and Appropriations in the General Fund - Police Department and Accepting Grants from the United States Department of Justice and Alaska Municipal League Joint Insurance Association for the Purchase of a Ballistic Vest. (Administration) 5. *Ordinance No. 3410-2024 - Accepting and Appropriating a Grant Received through Maddie’s Fund to the Kenai Animal Shelter for the Care of Animals. (Administration) 6. *Ordinance No. 3411-2024 - Amending Kenai Municipal Code 13.10.015 - Minor Offense Fine Schedule, to Increase the Paid Parking Fine and Make Housekeeping Changes. (Administration) 7. APPROVED UNANIMOUSLY AS AMENDED. Action/Approval - Authorizing a Letter of Support for House Bill 173 to Raise the Threshold for Municipal Contracts Qualifying for Little Davis Bacon Act. (Administration) I. 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 J. REPORT OF THE MAYOR K. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk L. ADDITIONAL PUBLIC COMMENTS 1. Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments M. EXECUTIVE SESSION N. PENDING ITEMS O. ADJOURNMENT 176 Kenai City Council - Regular Meeting Page 3 of 3 April 17, 2024 P. INFORMATION ITEMS 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. Registration is required to join the meeting remotely through Zoom. Please use the link below to register: https://us02web.zoom.us/meeting/register/tZAvf-mpqzgjGdbMjgL6xB4XQ2AMw4RQWnJ7 177 Kenai City Council - Regular Meeting Page 1 of 3 May 01, 2024 Kenai City Council - Regular Meeting May 01, 2024 ꟷ 6:00 PM Kenai City Council Chambers 210 Fidalgo Avenue, Kenai, Alaska www.kenai.city **Telephonic/Virtual Information on Page 3** Action Agenda A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items 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 ADMINISTRATIVE REPORTS C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) 1. 2024 March for Meals Event, Velda Geller, Kenai Senior Connections. D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker; thirty (30) minutes aggregated) E. PUBLIC HEARINGS 1. ENACTED WITHOUT OBJECTION. Ordinance No. 3409-2024 - Increasing Estimated Revenues and Appropriations in the General Fund - Police Department and Accepting Grants from the United States Department of Justice and Alaska Municipal League Joint Insurance Association for the Purchase of a Ballistic Vest. (Administration) 2. ENACTED WITHOUT OBJECTION. Ordinance No. 3410-2024 - Accepting and Appropriating a Grant Received through Maddie’s Fund to the Kenai Animal Shelter for the Care of Animals. (Administration) 3. ENACTED WITHOUT OBJECTION. Ordinance No. 3411-2024 - Amending Kenai Municipal Code 13.10.015 - Minor Offense Fine Schedule, to Increase the Paid Parking Fine and Make Housekeeping Changes. (Administration) F. MINUTES 1. *Special Meeting of April 17, 2024. (City Clerk) 2. *Regular Meeting of April 17, 2024. (City Clerk) 3. *Special Meeting of April 18, 2024. (City Clerk) G. UNFINISHED BUSINESS ~ K(;NAI 178 Kenai City Council - Regular Meeting Page 2 of 3 May 01, 2024 H. NEW BUSINESS 1. *Action/Approval - Bills to be Ratified. (Administration) 2. *Action/Approval - Non-Objection to the Renewal of a Package Store Liquor License for Country Liquor LLC., DBA: Country Liquor. - License No. 1308. (City Clerk) 3. *Action/Approval - Confirmation of Mayoral Nomination for Appointment to the Airport Commission. (Gabriel) 4. *Ordinance No. 3412-2024 - Accepting and Appropriating Grant Funds from the Alaska High Intensity Drug Trafficking Area for Drug Investigation Overtime Expenditures. (Administration) 5. *Ordinance No. 3413-2024 - 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) 6. *Ordinance No. 3414-2024 - Repealing Kenai Municipal Code Sections 13.10.010(a)(2) - Miscellaneous Offenses, 13.10.020 - Loitering and Sleeping on the Streets, Schools, and 13.10.030 - Curfew, to Remove Certain City Prohibitions Regarding Begging, Loitering and Sleeping, and Curfews in the City that are Not Enforceable as Specifically Written in Code. (Administration) 7. INTRODUCED, REFERRED TO THE AIRPORT COMMISSION FOR RECOMMENDATION, AND PUBLIC HEARING SET FOR 5/15/24. Ordinance No. 3415-2024 - Authorizing a Donation of Surplus Sand from the Kenai Municipal Airport to the Triumvirate Theatre for the Construction of a New Theatre. (Administration) 8. INTRODUCED, REFERRED TO THE AIRPORT COMMISSION, BEAUTIFICATION COMMITTEE, COUNCIL ON AGING, HARBOR COMMISSION, PARKS & RECREATION COMMISSION, AND PLANNING & ZONING COMMISSION FOR RECOMMENDATION, AND PUBLIC HEARING SET FOR 5/15/24. Ordinance No. 3416-2024 - Repealing, Reenacting and Renaming Kenai Municipal Code Chapter 1.90 - Standard Procedures for Boards, Commissions and Committees, Enacting Chapter 1.95 - Standing Advisory Commissions, Repealing Chapters 11.10 - Harbor Commission, Chapter 19.05 Parks and Recreation Commission, Chapter 21.20 Airport Commission, Enacting Section 14.05.050 - Planning And Zoning Commission - Qualifications and Membership, and Approving Amendments to The Council on Aging Commission’s By-Laws to Organize Streamline, and Improve the Efficiency of the City’s Standing Commissions. (City Clerk) 9. INTRODUCED, REFERRED TO THE HARBOR COMMISSION FOR RECOMMENDATION, AND PUBLIC HEARING SET FOR 5/15/24. Ordinance No. 3417-2024 - Increasing Estimated Revenues and Appropriations by $12,600 in the General Fund for the Purchase of Approximately 7.8 Acres of Real Property Described as Tract B, Kenai Bluff Stabilization Subdivision from David W. Salter to be Retained by the City for a Public Purpose and Determining that the Public Interest will not be Served by an Appraisal. (Administration) I. COMMISSION / COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Parks and Recreation Commission 5. Planning and Zoning Commission 179 Kenai City Council - Regular Meeting Page 3 of 3 May 01, 2024 6. Beautification Committee J. REPORT OF THE MAYOR K. ADMINISTRATION REPORTS 1. City Manager 2. City Attorney 3. City Clerk L. ADDITIONAL PUBLIC COMMENTS 1. Citizens Comments (Public comments limited to five (5) minutes per speaker) 2. Council Comments M. EXECUTIVE SESSION 1. Review and Discussion of the City Manager's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Manager [AS 44.62.310(C)(2)]. 2. Review and Discussion of the City Attorney's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Attorney [AS 44.62.310(C)(2)]. 3. Review and Discussion of the City Clerk's Evaluation Which May be a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(2)]. N. PENDING ITEMS O. ADJOURNMENT P. INFORMATION ITEMS 1. CIRCAC Director’s Report 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. Registration is required to join the meeting remotely through Zoom. Please use the link below to register: https://us02web.zoom.us/meeting/register/tZwud-urqD4tGNI6iDwCJtZZ2K1vf7NC3dEJ 180 MAY 9 , 2024 AIRPORT COMMISSION MEETING ADDITIONAL MATERIAL/REVISIONS REQUESTED ADDITIONS TO THE PACKET: ACTION ITEM REQUESTED BY Add Item F.11 Discussion/Recommendation – Recommending Council Award a Special Use Permit to Kenai Aviation, LLC for 2,714 Square Feet of Apron Space for Aircraft Parking. •Memo •Application •Exhibit A •Special Use Permit Airport Manager 1 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 From: Derek Ables – Airport Manager Date: May 9, 2024 Subject: Kenai Aviation Operations, LLC. - Special Use Permit Kenai Aviation Operations, LLC. is requesting a Special Use Permit for aircraft parking on approximately 2,714 square feet of apron space. The Special Use Permit will be effective for 6 months from May 6, 2024 to November 6, 2024. Kenai Aviation has submitted the Special Use Permit Application, paid the fee, and has a current Certificate of Insurance is on file. Does Commission recommend Council approve the Special Use Permit to Kenai Aviation Operations, LLC.? Attachments- Application, Exhibit A, Special Use Permit 2 Municipal Airport 3 City of Kenai S cial Use Permit A lication Appl ication Date: 05/06/2024 K~NAI Name of Applicant: Kenai Aviation Operations, LLC Ma iling Address : 101 N Willow St. I City: Kenai State : I AK I Zip Code : 1 99611 Phone Number(s): Home Phone: ( ) Work/ Message Phone : (907) 513-7171 E-mail: (Optional) tyson@kenaiaviation .com Name to Appear on Permit: I Kenai Aviation Operations Mailing Address : 101 N Willow St. I City : Kenai State : I AK I Zip Code : 1 996 11 Phone Number(s): Home Phone : ( ) Work/ Message Phone: (907) 513-7171 E-mail : (Optional) tyson@kena iaviation.com Type of Appl icant: □ Individual (at least 18 years of age) □ Partnership D Corporation □ Government ■Li mited Liability Company (LLC) □ Other Legal or physical description of the property : North end of taxiway GG Description of the proposed business or activity intended : Aircraft Storage Is the area to be used in front of or immediately adjacent to any established business offering the same or similar products or services upon a fixed location? □ YES I NO Would the use under this permit interfere with other businesses through excessive noise , odor, or other nu isances? □ YES IINo If you answered yes to any of the above questions, please explain: What is the term requested (not to exceed one year)? 6 Months Requested Starting Date : 05/06/2024 Signature : :::::--:-__./ l_-c" Date : 5/6/2024 ~ ~ ---~ - Pr int Name: Tyson Spies Titl e: Director of Stations 4 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 6, 2024 and ending on November 6, 2024. Regardless of the date of signature, this Permit shall be effective as of May 6, 2024. 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 2024 $137.96 July – November 2024 $144.75 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) 5 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. 6 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 abide by all reasonable decisions and directives of the Airport Management regarding general use of the Airport by Permittee germane to a commercial entity. 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, 7 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 4 of 8 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 6, 2024. The effective date of the insurance shall be no later than May 6, 2024. 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. 8 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. 9 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. Personality. 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 10 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 7 of 8 Kenai is not responsible for any damage to or theft of any personality 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. 11 Special Use Permit—Kenai Aviation(Aircraft Parking) Page 8 of 8 CITY OF KENAI KENAI AVIATION By: By: Terry Eubank Date Peter Heinrichsohn Date City Manager President ACKNOWLEDGMENTS STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this ____ day of _____________, 2024, the foregoing instrument was acknowledged before me by TERRY EUBANK, 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 ______________, 2024, the foregoing instrument was acknowledged before me by Peter Heinrichsohn, President, on behalf of Kenai Aviation Operations, LLC. Notary Public for Alaska My Commission Expires: Approved as to Form: ___________________ Scott Bloom City Attorney 12