HomeMy WebLinkAbout2006-10-12 Airport Commission PacketKENAI AIRPORT COMIVIISSION
OCTOBER 12, 2006
KENAI CYTY COUNCIL CIiAMBERS
7:00 P.M.
AGENDA
ITEM 1: CALL TO ORDER AND ROLL CALL
ITEM 2: AGENDA APPROVAL
ITEM 3: APPROVAL OF MEETING SUMMARY -- September 14, 2006
ITEM 4: PERSONS SCHEDULED TO BE HEARD
ITEM 5: OLD BUSINE55
a. Discussion - 2007 Air Fair
ITEM 6: NEW BUSINESS
a. Recommendation -- Sports Coverage Radio Airport Advertising
ITEM 7: REPORT
a. Cormiiission Chair
b. Airport Manager
c. City Council Liaison
ITEM 8: COMMLSSIONER COMMENTS AND QUESTIONS
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD
YTEM 10: YNFORMATION ITEMS
a. Kenai City Council Meeting Action Agendas for September 20 and October
4, 2006.
b. 9/2006 Kenai Municipal Airport Enplanement and Float Plane Basin
Reports.
c. 10/5/06 Proposed Airport Lease Document
ITEM 11:
PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO
ATTEND THE MEETING:
CAROL -- 283-8231 OR,
REBECCA/MARY -- 283-7951
KENAI AIRPORT COMMISSYON
SEPTEMBER 14, 2006
KENAI CITY COUNCIL CHAMBER5
7:00 P.M.
AGENDA
~
ITEM l: CALL TO ORDER AND ROLL CALL
ITEM 2: AGENDA APPROVAL
ITEM 3: APPROVAL OF MEETING SUMMARY
a. Regular Commission Meeting -- August 1Q 2006
b. Special Meeting -- August 21, 2006
ITEM 4: PERSONS SCHEDULED TO BE HEARD
YTEM 5: OLD BUSINESS
a. Discnssion -- Update on Runway Improvement Project
ITEM 6: NEW BUSINESS
a. Discussion - 2007 Runway Construction Schedule vs. 2007 Air Fair
b. Discussion -- Taxiway Designations
c. Recommendation -- Airport Temunal Office Space I.ease Proposal/Space
Number 21
ITEM 7: REPORT
a. Commission Chair
b. Airport Manager
c. City Council Liaison
ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD
YTEM 10: INFORMATION ITEMS
a. Kenai City CouncIl Meeting Action Agendas for August 16 and September
6, 2006.
b. August 2006 Monthly Enplanement and Float Plan Basin Activity Reports
ITEM 11: ADJOURNMENT
KENAI AIRPORT CONi-I%I3SION
SEPTEMBER 14, 2006
KENAY CITY COUNCIL CHAMBERS
7:00 P.M.
CHAIR HENRY KNACKSTEDT, PRESID%NG
MEETING SiJNIIVIARY
ITEM 1: CALL TO ORDER AND ROLL CALL
Chair Knackstedt called the meeting to arder at approximately 7:06 p.m. The roll was
confirmed as follows:
Commissioners present: C. Versaw, L. Porter, J. Bielefeld, and H. Knackstedt.
Commissioners absent: J. Zirul, E. Mayer, and D. Haralson
Others present: Councff Member R. Ross and Airport Administrative
Assistant M. Bondurant
ITEM 2: AGENDA APPROVAL
MOTION:
Coinmissioner Bielefeld MOVED to approve the agenda as presented and
Commissioner Porter SECONDED the motion. There were no objections. SO
ORDERED.
ITEM 3: APPROVAL OF MEETING SUMMARY
3-a. Regulaz Commission Meeting -- August 10, 2006
3-b. Special Meeting -- August 21, 2006
MOTION:
Comixussioner Bielefeld MOVED to approve the August 10 and August 21, 2006
meeting summaries and Commissioner Porter SECONDED the motion.
ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None.
ITENd 5: OLD BUSINESS
5-a. Discussion -- Update on Runway Improvement Project
Pat Daly, Wince-Coathell-Bryson -- Daly gave an update on Phase I of the Runway
Improvement Project, noting the following:
• Surveying and clearing are being done with the clearing almost complete.
Heavy equipment is being moved in.
• The Float Plane Basin will be drained and closed around October 15,
2006 to continue the eactension of the water runway.
The basin will be opened again around May 15, 2007.
ITEM 6:
6-a. Discussion -- 2007 Runway Construction Schedule vs. 2007 Air Fair
Discussion was held on the possible conflict of the runway construction project and the
2007 Air Fair in Kenai, i.e. should the project be funded for the runway rehab, the
runway will be closed and the parallel taxiway used as the runway, and the ramp will
be the taxiway!~
Consensus of Cormnission was to not want cancel the Air Fair. Other options
discussed included using the CAP hangar for Kenai's portion, or holding the entire
event at the Soldotna Airport. The EAA will have their fly-in breakfast regardless of the
Air Fair. More discussion opportunities will be available as the project progresses and
the May event gets closer:
6-b. Discussion -- Taxiway Designations
Phil Bryson, Wince-Corthell-Bryson -- Bryson eaplained the process behind the
naming of the current taxiways. Discussion followed during which the following
comments included:
• Commission wants a logicai approach to the taxiway designations.
• Intersections need to be sequential with a"cominonality."
• Parallei taxiway can be anything, but reserve four letters and make
adjustxnents as needed.
• This is a safety issue -- Local pilots will adjust but the airport is used as
flight training by Anchorage operators, and pilots from the lower 48.
Bryson will relay all comments to the Airport Manager, City Manager and report back.
Addition comments included:
• guestioned of a designated runway sign on the south end.
• There is no taxiway centerline from the new taxiway Alpha to taxiway
Lima. In low vlsibility it is hard to taxi without the line.
• Positive comments were also relayed to Wince-Corthell-Bryson on the new
parallel taxiway extension.
6-c. Recommendation -- Airport Terminal Office Space I,ease Proposal/Space
Number 21
Upon review of the information provided, Comuiission concurred the agreement should
go forward.
MOTION:
Commissioner Porter MOVED to recommend to Council the City enter into an
agreement with Cloud & Ribelin Real Estates, LLC to rent Airport Terxninal Space 21.
AIRPORT COMMISSION MEETING
SEPTEMBER 14, 2006
PAGE 2
Coimiiissioner Bielefeld SECONDED the motion. There were no objections. SO
ORDERED.
ITEM 7: REPORT
7-a. Commission Chair -- No report.
7-b. Airport Manager -- No report.
7-c. City Council Liaison -- Council Member Ross informed the Commission
of the minor changes Council made at the September 6, 2006 council meeting to the
airport regulations and airport reserve boundary.
ITEM 8: COIVIlVIISSIONER CONIlVIENTS AND QUESTIONS
dTEM 9: PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10:
10-a. Kenai City Council Meeting Action Agendas for August 16 and September
6, 2006.
10-b. August 2006 Monthly Enplanement and Float Plan Basin Activity Reports
ITEM 11: ADJOURNMENT
MOTION:
Comuiissioner Versaw MOVED to adjourn and Commissioner Bielefeld SECONDED the
motion. There were no objections. SO ORDERED.
There being no further business before the Cornmission, the meeting adjourned at
approximately 8:15 p.m.
Meeting summary prepared and submitted by:
Carol L. Freas, City Clerk
AIRPORT COMMISSION MEETING
SEPTEMBER 14, 2006
PAGE 3
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305 N. WILLOW ST. SUITE ~0 F~JAI, ALASKA 99671
Munieipai Airport TELEPHONE907,2837951
FAX ~'72833737
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To: Airport Commission
From: Rebecca Cronkhite - Airport Manager ~
Date: October 5, 2006
Subject: 2007 Air Fair
Mary contacted the Alaska Airmen's Association and the dates for the 2007 Trade Show
are May 5`h and 6'". The Runway Safety Area Improvement project timeline has been
revised and there is a strong possibility of conflict for use of the Operations Facility and a
possibie conflict for use of the Float Plane Facility in May.
Airport Commission has expressed a desire to continue with the Air Fair planning,
therefore an alternate location on the airport should be discussed and a date
determined.
www. ci. kenai. ak. us.
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PfServuu~i~.e~C~vea~sr Kevux.v ~ev~a.v~u~:'
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TELEPFIONE 907283-7951
FAX 907,283373T
To: Airport Commission
From: Rebecca Cronkhite - Airport Manager
Date: October 5, 2006
Subject: Airport Advertising
Attached is a proposal from Jay C. Smith at the KSRM Radio group for adve~tising. The
airport has purchased similar pians for the last coupie of years and the feedback has
been very positive from Council and public. I am asking Commission review the
proposal. Note that the total cost will be $3,564 which is approximately 36% of the
advertising budget.
This advertising campaign reaches a lot of people over the year and reminds everyone
that the airport provides easy access to many destinations. I would appreciate
Commission's discussion of this and, if appropriate, a motion to continue this program.
is my intent to continue our advertising with CAP, Alaska Business Monthly and other
community a~d airport related publications. Our current budget will accommodate ail of
these expenditures.
Does Commission wish to recommend the Airport pursue the Sports Coverage
Radio Advertising program?
www. ci. kenai. ak. us.
ba.
Munecipai Airport
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. ~~~;~,~~~~~~~ KSL ~
(907) 283-5811 (907)283-8700 (907)283-5821 (907) 283•9430
Radio Advertising Proposal for Kenai Municipal Airport
Rebecca Cronkhite,
Thank you for your interest in continuing to sponsor High School sports with the KSRM
Radio Group. Here is the proposal you requested, per our conversafions the past few
weeks.
We feel that the Silver Meda1 Package would best suit theneeds of Kenai Municpal
Airport, both in broadcast coverage and monetary investment. There aze sfill over 300
broadcasts left this year. The package breaks down as follows:
Coverage of all four Centrai Peninsula High Schools' sporting events and The Peninsula
Oilers Basebali Season.
Kenai Municipal Airport would receive a minimum of 2 30 second messages on each
High School Sports broadcast.
Kenai Municipal Airport would receive name mentions as a sponsor of High School
Sports in a minimum of 20 :30 sewnd promos per week,
As a bonus incentive we would also offer Kenai Municipal Airport 40 :30 messages on
ai14 of our radio stations, to be used before June 30~', 2007.
Your investment in this outstanding advertising package would be $495.00 per month
November 2006 through June 2007. Kenai Municipal Airport would also receive the
same broadcast coverage in the month of July 2007 at no additional chazge. Your total
investment would be $3960.00 for 9 total months of broadcast coverage.
We would appreciate your continued support of High School Sports with the KSRM
Radio Group, so let us offer an additional incentive. We would reduce your investrnent
by 10% if the contract is paid in advance. With this additional incentive the total
investment by Kenai Municipal Airport would be $3564.00 for 9 total months of
broadcast coverage.
Again, thank you for your interest in advertising with the KSRM Radio Group. Please
feel free to contact me at your convenience.
5~~~
y Smith
Marketing Consultant
KSRM Radio Crroup
(907) 398-2631
40960 K•Beach Road - Kenai, Alaska 99611 - Fax: (907) 283-9177
Website: www.radiokenai.com - Email: ksrmQradiokenai.com
~ KSL~' M,.: .
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(907)283-5611 (907)263-8700 (907)283-5821 (907)283-9430
Kenai Peninsul
a ~ports
7'he Tradition Continues.Plusl
KSRM / gWHQ / KI~S KSLD Brings you the most variety ever!
Football, Hockey, Basketball, Athlete's of the Week, Oiler's
Baseball. Over 300 events will be broadcast from August 2006
througli July 2007.
Gold Medal ~ackage-A114 High Schools and Peninsula Oilers!
Five :30 second Selling Messages a114 stations DAP each week.
Two :30 second Selling Messages in each event broadcast
Twenty :30 second promos w/name mentions the week of the
event.
Total Investment only $795 per month
August throug3i June...July completely FREE!
........................,...............................................~
Silver Medal Package-A114 High Schools and Peninsula Qilers!
Forty :30 second SelIing Messages a114 stations DAP.
Two :30 secon~ SeIling Messages in each event broadcast
Twenty :30 second promos w/name mentions the week of the event
'Ta#al Ineestment only $495 per month
August through June.. ,July completely FREE!
.............. o....................... o..................................,
Bronze Medai ~'ackage-A114 High Schools and Peninsula Oilersi
One :30 second Selling Messages in each event broadcast.
Twenty 30 sec~d promas w/name mentions the week of the event
To#al Investment only $395 per.month
August through 3une...July c~mpletely FREE! :
seao~mseeoes~'c~isuu~v.oo~eoatY~sru uocsavooe~vu aeaetot~ooas~eoaoas~eve~ ~.
409fi0 K-Beaeh Road - Kenai, Alaska 99611 - Fax: (907) 283-9177
WebsNe: www.radiokenai.com - Email: ksrmQradiokenai.com
~
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~ (907) 28&5811
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The Tradition Continues..Plus!
KSRM / KWHQ / KKIS KSLD Brings you the most variety ever!
Football, Hockey, Basketball, Athlete's of the Week, Oiler's
Baseball. Over 300 events will be broadcast from August 2006
through July 2007.
~`~ Gold Medal Package-A114 High Schools and Peninsula Oilers!
~- ~~ ~ Five :30 second Selling Messages a114 stations DAP each week.
.,J ~ Two :30 second Selling Messages in each event broadcast
,
~- ~ Twenty :30 second promos w/name mentions the week of the
/Q event. ~ ~
~~ Total Investment only $795 per month
~ August through June...July completely FREE!
~ ........................................................................,
~~ V 1
`~-~silver Medal Package-All 4 High Schools and Peninsula Oilers!
Forty :30 second Selling Messages a114 stations DAP.
Two :30 second Selling Messages in each event broadcast
Twenty :30 second promos w/name mentions the week of the event
Total Investment only $495 per month
August through June...July completely FREE!
•u~~~~~a~~~~ur~~~u~~~~~~~u~~u~u~~~~~~~~~~~~~~~~~~~~~~~.~~~~~~~~u~~ ~
Bronze Medal Package-All 4 High Schools and Peninsula Oilersl
One :30 second Selling Messages in each event broadcast.
Twenty :30 second promos w/name mentions the week of the event
Total Investment only $395 per month
August through June, ..7uly completely FREE!
~~~\~~l~\~~~~~~tt~~~~~~~~tt~~~i~~~~\~~~~~~~~~~t~\~~~~~\~/~~~~~~~~~t1~~~~~
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40960 K-Beach Road - Kenai, Alaska 99611 - Fax: (907) 283-9177
Website: www.radiokenai.com - Emaii: ksrm@radiokenai.com
....
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AGENDA
KENAI CITY COUNCIL - REGULAR MEETIlVG
SEPTEMBER 20,2006
7:00 P.M.
KENAI CITY COiJNCIL CHAMBERS
http: / /www.ci.kenai.ak.us
YTEM A: CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
"`All items listed with an asterisk (*j 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 memUer so requests, in which case
the item will be removed from the consent agenda and considered in its normal
sequence on the agenda as part of the General Orders.
ITEM B: SCFiEDULED PUBLIC COMMENTS (10 minutes)
1. Lazry Semmens, City of Kenai Finance Director -- Public Employee
Retirement System (PERS) Rate Update .
ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes)
ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS
ITEM E: PUBLIC HEARINGS
~ ~. 1. Ordinance No. 2188-2006 -- Increasing Estimated Revenues and
Appropriations by $500 in the General Fund to Purchase Library Books.
2. Ordinance No. 2189-20Q6 -- Increasing Estimated Revenues and
Appropriations by $16,000.00 in the General Fund for a Homeland
Security Grant to Fund a Rewrite/Revision of the City of Kenai
Emergency Operations Plan.
3. Resolution No. 2006-51 -- Recognizing the Alaska Department of
---"" Environmental Conservation (ADEC) and the Kenai Peninsula Borough
Economic Development District (KEDD), Inc.
Q~ 4. Resolution No. 2006-52 --'I7ansferring $20,331 in the Water and Sewer
~~ Fund for purchasing a Sewer Jet Cleaning Unit.
~~~ • 5. Resolution No. 2006-53 -- Awarding the Bid to Bob's Services, Inc. for a
Sewer Jet Cleaning Unit - 2006 for the Total Amount of $300,331.
ITEM F: MYNUTES
1. *Regular Meeting of September 6, 2006.
ITEM G:
ITEM Ii:
/1~~~ l. Bills to be Ratified
. y~~
~~~ 2. Approvai of Purchase Orders Exceeding $15,000
3. *Ordinance No. 2190-2006 -- Increasing Estimated Revenues and
Appropriations by $5,361.72 in the Airport Environmental Assessment
Capital Project Fund for Additional Grant Monies.
4. *Ordanance No. 2191-2006 -- Increasing Estimated Revenues and
Appropriations by $150,000 in the General F~ind for Payment to the
Public Employee Retirement System.
5. *Ordinance No. 2192-2006 -- Amending KMC 12.40 Entitled,
"Regulation of Smoking in Eating Establishments" to Include Bowling
Alleys as a Place Where Smoking is Prohibited Within the City of Kenai.
~~ 6. Approval -- Authorizing City Manager to Negotiate and Enter into a
Management Agreement with State of Alaska Division of Fire Prevention
for the Management of the Alaska Regional Fire 1Yaining Facility
(PRISM).
YTEM Y:
1. Council on Aging
2. Airport Cominission
3. Harbor Coininission
4. Library Cominission
5. Parks & Recreation Comuiission
6. Planning & Zoning Coinnussion
7. Miscellaneous Cosrunissions and Con'miittees
a. Beautification Conunittee
b. Alaska Municipal i.eague Report
ITEM J: REPORT OF THE MAYOR
ITEM K: ADMIIVI5TRATION REPORTS
1. City Manager
2. Attorney
3. City Clerk
ITEM L: DISCUSSION
l. Citizens (five minutes)
2. Council
EXECUTIVE 9ESSION -- None Scheduled
ITEM M:
AGENDA
KENAI CITY COUNCIL - REGUI.AR MEETING
OCTOBER 4, 2006
7:00 P.M.
KENAI CYTY COUNCIL CHAMBERS
http: //www.ci.kenai.ak.us
ITEM A: CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
'"All items listed 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 memUer 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.
YTEM B: SCHEDULED PUBLIC COMMENTS (10 minutes)
l. Ricky Gease, Kenai River Sport~shing Associatian -- Kenai Eagle
Award Presentation/City of Kenai for City Dock Improvements
2. Thor Evenson -- Proposed Development of Evenson Property on Spruce
Street and Proposed Access Through City Property.
3. Randy Bostrom -- Seasonal Business/Water & Sewer Billing
YTEM C: UNSCIiEDULED PUBLYC COMMENTS (3 minutes)
ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS
ITENi E, PUBLIC IiEARINGS
~~~ ~ 1. Ordinance No. 2190-2006 -- Increasing Estimated Revenues and
Appropriations by $5,361.72 in the Airport Environmental Assessment
Capital Project Fund for Additional Grant Monies.
~ ~~~ ~. Ordinance 1Vo. 2191-2006 -- Increasing Estimated Revenues and
/~ /~o~ Appropriations by $150,000 in the General Fund for Payment to the
Public Employee Retirement System.
~~~ ~, 3. Ordinance No. 2192-2006 - Amending KMC 12.40 Entitied,
"Regulation of Smoking in Eating Establishments" to Include Bowling
Alleys as a Place Where Smoking is Prohibited Within the Ciiy of Kenai.
~~ 4. Resolution No. 2006-52 --'I7ansferring $24,647 in the Water and Sewer
' Fund to Purchase a Sewer Jet-Cleaning Unit.
~~~ 5. Resolution No. 2006-53 -- Awarding the bid to Alaska 17uck Center for
a Sewer Jet-Cleaning Unit - 2006 for the Total Amount of 304,647.
ITEM F: ' MINUTES
1. "`Regular Meeting of September 20, 2006.
ITEM G: UNF%NISHED BUSYNESS
GFr+9~~`9/~ ~
~•~~s~Fi~„ Dascussion -- Special Assessment District Update
,:~r~ ~ .r.a~..
ITEM FI: NEW BUS%NESS
~y~91/~A~ i. Bills to be Ratified
~~,~ 2. Approval of Purchase Orders Exceeding $15,000
3. "Ordinance No. 2193-20U6 -- Amending the Code Violation Fine
Schedule in KMC 13.10A15 to Include a Standard Fine of $25.00 for
Failure to Obtain a Dog License in Violation of KMC 320.010.
ITEM I: COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airgort Cominission
3. Harbor Commission
4. Library Conunission
5. Parks & Recreation Cominission
6. Plamiing & Zoning Commission
7. Miscellaneous Commissions and Comznittees
a. Beautification Coixunittee
b. Alaska Municipal League Report
c. Mini-Grant Steering Committee
ITEM J: I2EPORT OF THE MAYOR
YTEM K: ADN[INYSTRATION REPORTS
1. City Manager
2. Attomey
3. City Clerk
YTEM L:
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION -- Su~-Month ~aluation of City Manager
ITEM M: ADJOURNMF.NT
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a j FLOAT PLANE BASIN ACTIVI7'Y
~ 2002-2006
Maanicipal Airport
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
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oPi~RPi i'o1YS
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Manth 2006 2005 2004 2003 2002
APRIL 0 2 0 0 0
MAY 99 114 99 86 94
JUNE 151 317 161 158 223
JULY 265 327 428 259 345
AUGUST 251 238 342 287 233
SEPTEMBER 136 227 134 215 153
OCTOBER 100 40 63 37
NOVEMBER Closed Closed Closed 10
________________________________________
FUEL SALES
Month 2006 2005 2004 2003 2002
MAY $0 $1,035 $452 $835 $98
JUNE $909 $3,101 $2,209 $1,391 $1,986
JULY $3,138 $3,461 $2,095 $1,773 $2,757
AUGUST $2,023 $3,365 $2,041 $2,513 $2,419
SEPTEMBER $2,051 $2,811 $792 $2,219 $983
OCTOBER $693 $26 5263 $65
Slips Rented
Private 9
Commerical 0
Rev 8l2003
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"Se~vi.nr~.the~C~v~a~x Kev~a.v ~en~.vi,~u~lcv'
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TELEPHONE 907,283~7951
FAX ~7,2833737
~ •
J
To: Airport Commission
From: Rebecca Cronkhite - Airport Manager
Date: October 5, 2006
Subject: Information Item: Proposed Airport Lease Document
The attached document is the Airport Suppiementai Planning Consultant, Steve Pavish's
recommended lease language for aIl future land leases in the Airport Reserve. Mr.
Pavish has provided this la~guage to the City and administration is in the review
process. The City Attorney, Cary Graves would like current airport lessees and other
interested parties to read over this document and provide any comments or concerns to
him for inclusion in the administrative review process.
If you have any comments or questions about this document please send them directly
to the City Attorney at cgravesCa2ci.kenai.ak.us or cali Cary at 283-8224. I suggest you
email or fax any suggested changes or deletions so your comments can be shared with
other administration personnel reviewing the draft. Written comments may aiso be
included i~ the information sent to Council when this document is presented to them.
Thank you for your time and dedication to the extensive changes and numerous review
processes surrounding the airport pianning project. Your participation is invaluable.
www.ci.kenai.ak.us.
Municepal Airport
KENAI MUNICIPAL AIRPORT
LEASE OF AIRPORT LANDS
THIS LEASE AGREEMENT, entered into this day of , 2006, by and
between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 94611-7794, and
("Lessee").
individually, whose address is
Definitions
For the purposes of this Lease the following terms are defined as foilows:
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 tl~e Airport
Reserve as defined in KIviC 00.00.00 .
2. Aicport Manager - the official to whom the City Manager of the City has delegated the
authority and responsibility o£ managing and directing the activities of the Airport. "Airport
Manager" includes that person's authorized representative.
3. City - the City of Kenai, Alaska, a home rule municipal corporation of Alaska.
G. City Manager - the official to whom the Kenai City Council has delegated the
responsibility of managing and directiag ali activiEies of'the City.
Contamination - the unpermitted presence of any released Hazardous SubsYance.
6. Environmental Assessment - an assessment of property, prepared in a manner consistent
with generally accepted professional practices, that is supported by reports and tests that
determine the environmentai condition of property and tl~e presence, type, concentraYion, and
extent of a Hazardous Substance in, on, and under the surface of the properiy.
7. Enviroiunental Law - any applicable faderal, state, or local statufe, law, regulation,
ordinance, code, permit, order, decision, judgment of any governmentai entity relating to
environmental matters, including littering and dumping.
8. Environmental Liability Baseline - a document based on an Environmental AssessmenC
that identifies Contamination in, on, or under the surface of the Premises that was neither caused
nor Materially Contributed To by the I,essee, nor assumed by the L,essee by reason of
assignment. If an Environmental Assessment determines the presence of Contamination in, on,
or under the surface of the Preinises that was Materially Contributed To by the Lessee, the
Environmental Liability Baseline will include only that portion of the Contamination not caused
LEASE City: _
Lessee:
or Materially Contributed To by the Lessee or the Lessee's operations, nor assumed by the Lessee
by reason of assignment.
9. FAA - the abbreviation for the Federai Aviation Administration.
10. Hazardous Substance - any substance that is defined under an Environmental Law as
hazardous waste, Hazardous Substance, hazazdous material, toxic, pollutant, contaminant;
petroleum, petroleum product, or oil.
I 1. KMC - the abbreviation for the Kenai Municipal Code.
12. Materially Contributed To - to cause the release or migxation of a Hazardous Substance itii
a reportaUle quailtity as defined under applicable Environmental Law.
13. Permanent Improvement - a fixed addition or change to land that is not temporary or
porCable, including a building, building addition, gravei fil1, paving; retaining wall, storage tank,
and well.
Article I
Premises Leased
a. PREMISES: In consideration of Lessee's payment of the rents and perPonnance of all tbe
covenan~s of this L,ease, 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:
L,ot_, Block_,
according to Plat No.
b. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific
warrai7ties, expressed or implied, conceming the condition of the Premises includiizg its tifle,
survey, soils, wetiands, access, and suitability for any use including those authorized by this
Lease, its environrnental condition, or the ~resence or absence of Hazardous Substances in, on,
and under 2he surface. The I,essee 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
LEASE City:
Lessee:
1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the
following purposes only:
2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in wriCing,
fhe Lessee will operate ifs business on the Premises on a continuous basis, uninterrupted by any
period of closure over 15 consecutive days or 30 aggregate days within any 12-month period of
the term of this lease. The Lessee will give the City writCen notice befbre closing the Lessee's
business on the Premises for more than 10 consecutive days. The notice rnust state the reason for
the closure and the date on which the Lessee will r~open £or 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
ot 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.
U. RIGHTS RESERVED TO THE CITY.
1. RIGHT TO GItAlv'T TO OTHERS: The City reserves the right to ~ ant to others
any rights and priviieges not specificaliy granted to the Lessee. The righYS and privileges granted
to ihe Lessee in this Lease are the only rights and privileges graneed to the Lessee by this Lease.
2. fiASEMEI~TTS: The City reserves the right fo make grants to third parties or
reserve to the City easements or xights of way fluough, on, or above ihe 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 INSPflCTION: The Ciry reserves the right of ingress
to and egress from the Premises and ehe right to enfer any part of the Premises, inciuding
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 L,essee Co
minimize interference with the Lessee's authorized uses of the Preinises.
4. RIGHT OF FLIGHT: There is hereby reserved to the City, its suceessors and
assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the
airspace above the surf.aee 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
flighC through ihe airspace or landing at, taking off from, or operation on the Airport.
c. PROHIBITBD USES
Unless specifically authorized by this Lease or an amendment to Yhis Lease, the following are
prohibited:
Any use of the Premises other Chan those authorized in this Lease.
LEASE City: ~
Lessee:
2. Any use of the Premises that is violation a City Ordinance or an Aixport
regulation.
3. The establishment or maintenance of any kind of living quarters on the Premises.
4. The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non-
operational support equipment, unused or damaged equipment ar material, or solid waste or
debris.
5. The disposal on the Premises or the Airport of waste materials ~eneraYed by the
Lessee, including any Hazardous Substance, slash, overburden, and construction waste.
6. The stripping, wasting, ar removing any material fi-om the Premises without the
pxior written approval of the City.
7. Erecting structures or allowing growth of natural objects that would constitute an
obstruction to air navigation, or allowing any acfivity on the Premises that would interfere with
or be a hazard to the flight of aircraft, or interfere with air navigation or communication £acilities,
serving the Airport.
Solicitiilg donations anywhere on the Airport, or operating any kind oP
commercial enterprise on the Airport that is off the Premises and beyond the authorization of this
Lease, without the written consent of the City.
9. Any use or aetivity that is prohibited by applicable law or regulation.
Article III
Term & Holdover
a. TERM: The term of this Lease is for _ yeazs, froin the _ day of , 200_
to the _day of , 200_
b. HOLDOVER: If the Lessee holds ovex 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-Yo-month tenancy, regardless of
any rent paytnents accepted by the City. The I,essee's obiigations 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 (10) days' advance written notice.
Article IV
Ren~s and Fees
LEASE City:
Lessee:
a. RENT: The rent for the Premises is $ per year, as established by the
City pursuant KMC 00.00.00 and as subject to adjusrinent under Article V of this Lease, plus
applicable sales tax. The rent shall be payable annually in advance of the first day of each yeu of
the term of this Lease. All pa}nnents required by this Lease must be made in U.S. dollars. If the
annual rent exceeds $2,400, Yhe Lessee may, upon written votice to the City, choose to pay the
rent in equal monthly installments, payaUle 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,
b.. REI~TT PRORATED: Rental for any period less than one (1) year sha11 be prorated on the
basis of the rent payable under this Lease in last full year previous Yo the prorafing.
c. ADDITIONAL RENT: I~l addition to the rent specified in (a) of this Article, l,essee
agrees to pay to the appropriate parties ail levies, assessments, and charges as follows:
(1) Taxes pertaining to Che leasehold interest of the Lessee.
(2) Sales tax now enforced or levied in the future, computed upon rent payable in
monChly installments whether the Lessee pays renY under this Leas on a monthly or annuali 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 payxnents to City o£Kenai, Finance Department, 210
Fidalgo Avenue, Suit 200, Kenai, Alaska 99611-7794 or any oYlier address the City may
designate in writing to the Lessee.
e. IIvTTEREST: Beginning the day after payment is due, ail unpaid rents, charges, and fees
required under this Lease will acerue interest at the rate of eight percent (8.0%) per annum.
InCerest on disputed amounts wi11 not be charged to the L,essee if tbe dispute is resolved in tbe
Lessee's favor.
£ LATE PAYMENT PENALTY: ul addition to any interest payable under Provision (e) of
this Article, each time the Lessee fails to pay any renY or fee by the date required in this Lease,
Yhe City will eharge, and the Lessee shall pay, an administrative penalty of ten percent (10.0%) of
the amount due and unpaid.
LEASE City: _
Lessee:
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 al1 rents and fees when due,
regardless of whether or not the Lessee receives a billing statement from the City.
h. LIEN AGAIIQST 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 properiy, 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 enfarce, defend, ar
protect this Lease or City's rights under this Lease, includiag any expense incurred with respect to
enviromnental compliance, bankruptcy or any proceeding that involves the Lessee, the L,ease, the
Prernises, or improvelnel~ts or personal property on the Premises. The Lessee will make payment
within 30 days of the date of eaeh notice from City of any amounts payable under this provisioi7.
j. PAYMEI~TT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee
for any special services or facilities, which the Ciry is not otherwise obligated by this L,ease to
provide and which the Lessee requests from the City in writing.
Article V
Adjustment of Rent and Fees
a. RENT OR FEE ADJUSTMENT: ~Tot less than five (5) years after the beginning date of
the term of this lease and, thereafter, at intervais of not less than five (5) years, the City may, in
its sole discretion, increase or decrease the rent or a fee payable by the Lessee under Article IV or
other provision of this lease. The amount to which the City increases or decreases any rent or fee
shall be established in accordance with KMC 00.00.00. Any rent change by the City shall be
based on the fair market value of
the Premises in its condition on the term beginning date stated in Article IIT; plus
2. any improvements made by the City subsequent to that date, the cost of which are
not reimbursed by the Lessee.
No rent or fee change shall be effective until 30 days after Yhe date o£ the City's wriCten
notice to the L,essee. If the Lessee believes that auy changed rent exceeds the fair inarket rent for
the Premises, the Lessee may appeal the rent change to the City uilder KMC 00.00.00.
b. CITY-CONSTRUCTED IMPROVEMENTS: finprovements constructed by the City on,
or in connection with, the Premises sha11 not be considered a part of Yhe Premises for ihe purpose
of establishing the rent under (a) of this Article, if tbs Lessee, as a condition of this lease,
reimburses the City for the City's eonshuction costs.
LEASE L}ty;
~~~ ~ Lessee:
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 sublessees of the
L,essee.
b. NO WANER OF CONSENT: The City's consent to one assignment, sublease, or
security interest will not waive t11e requirement fbr the Lessee to obtain the City's conseilt to any
other assignment, sublease, or security interest.
c. ASSIGNEE / LESSEE OBLIGATIONS: An assigmneilt must include a provision stating
that the assignee accepts responsibility for all of the assignor's (I,essee's) obligations under this
Lease, including environmentalliability and responsibility. However, unless the City specifically
releases Yhe Lessee in writing, the City may hold the L,essee responsible for performing any
obligation under this lease which an assignee £ails to perform.
d TRAI~TSFER OF OWNERSHII' INTEREST REQUIRES CONSEIvTT: Any single ar
cumulative transfer of more than 50 percent interest in a joint venture, partnership, limited
liability company, corporation, or other multi-party entity which is a L,essee under~this Lease is
an assignment of an interest subject to the consent of the City under (a) of this Article VI.
e. OCCUPANCY BEFORE CITY CONSENT: .An assignee or sublessee may not occupy
the Premises before the City consents to the assignment or sublease in writing.
CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an
assignment or a sublease, the terms of this Lease control.
g. LESSEE NOT RELIEVED OR OBLIGATIOI~TS: The City's consent to any sublease
does not relieve or otherwise alter Che Lessee's obligations under this Lease.
h.. SECURITY ASSIGNMEIVTS AND FINANCING:
1. Subject fo the requirements o£ (a) of this Article VI, the Lessee may assign a
security interest in this Lease for the purpose of interim or permanent financing or
refinancing of the Lessee's improvements on the Premises, and for no other purpose.
LEASE City: _
Lessee:
The security interest may be in Yhe form of a mortgage, deed of Crust, assignment or oYher
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 Ehe City.
2. If Yhe assigmnent of a security interesf to wkich the City has consented sha11 be heid by
an established lendii2g or financial institutron, including a bank, an established insurance
company and qualified pension or profit sharing trust, and the lending institution acquires
the Lessee's interes~ in this Lease as a resuit 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 in2erest in ihis Lease to a nominee or a wholly owned subsidiary corporation
with the priar ~vritten consent of Yhe City, provided, the transferee assumes all of the
covenanfs and conditions required to be performed by the Lessee. In the event of such a
transfer, t1~e lending institution shall be relieved of any furCher liability under this Lessee.
3. A holder of a security interest in this Lease consented to by tbe City sha11 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. Tf, before any defaulC has oceurred in the L,ease, the holder of a seeurity interst in
this Lease consented to by the City gives the City a written notice of the holder's post
office address, the City shall thereafter
A. by regular U.S. mail, send to the holder a copy of each notice of default at the
same time as the City gives notice of default to the Lessee; and
B, not accept any surrender or enter into any modification of this Lease without
the prior written consent of the holder, which the holder shall not unreasonably delay or
withhold..
5. The City wi11 enter into a new lease of the Premises with the holder of a security
niterest consented to by the City, if the City terminates this~ Lease prior to its normal
expiration due to a default by the Lessee. The new lease shall be for the remainder of the
term of this Lease and shall be ef£ective as of the termination of this Lease. The City's
grant of the new lease sball be subject to the following conditione:
A. The new lease shall be effective on the date this Lease is terminated;
LEASE City:
'~ . Lessee:
B. The new lease shall be for the same rent, additional rent, and covenants as this
Lease;
C. By no latec than the twentieth (20"') day following the termination of this
L,ease, the security holder must submit a written request to the City for the new lease,
together with payment of all rent, additional rent and other sums then due to the City
under this Lease.
D. The security holder sha11, upon execution of the new lease, reimburse the
City for all the reasonable expenses; including legal and attorneys' fees, which the City
incurred as a result of the Lessee's default and the termination of this lease.
E. The security holder shall, on or before the execution of the new lease, perform
all the other obligations of the Lessee under this L,ease to the extent the Lessee failed to
perform them prior to the termination of Chis Lease.
6. A holder of a security interest consented to by the City that takas possession of
this Lease or enters into a new lease with the Ciry shall not be released from the
obligations and liabilities of this L,ease ar the new lease unless tha holder assigns its
leasehold estate to an assignee who is financially capable and oCherwise qualified to
undertake to perform and observe the conditions of this Lease or the new lease and the
City consents to the assignment. The City's coi~sent will not be unreasonably withheld. If
the securiry holder asserts that the City is um•easonably withholding its consent to a
proposed assignment, the dispute shall be resolved by arbitration.
Article VII
Maintenance, Snow Removal & Utilities
a MAINTENANCE
1. At no cost to the City, the Lessee will keep Che Premises and all improvements on
the Premises clean, neat and presentable, as reasonably defermined by Yhe City.
2. At no cost to the City, the Lessee wili provide for all maintenance and serviees at
the Premises as may be necessary 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. AY no cost to the City, the Lessee sha11 keep the
Premisesin a clean and sanitary condition, and control activities on the Premises to prevent the
pollution of water.
LEASE City: _
Lessee:
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 Airpart by the
Lessee.
b. UTILITIES: Unless specificall~provided otherwise in this Lease. the Lessee shall, at no
cost to the Citv, provide for a11 utilities at the Preinises necessary to facilitate the Lessee's use of
the Premises. ~
c. SNOW REMOVAL
1. At no cost to the City, the Lessee is responsible for snow reinoval 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 a11 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 witl~ the approved plan.
2. Lessee shall not deposit suow on an apron, taxiway, or other aircraft maneuvering
surface provided for common use by others witl~out Che prior written approval of the Airport
Manager.
3. Lessee agrees to not allow an accumulation of snow on the Premises that would
cause interference with adjoining leasebolders or other users of the Airport.
Article VLiI
Operations
a. OPERATTONS ON THE AIRPORT: The Lessee will ensui•e that the Lessee, its
employees, guests, contractors, sublessees, 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.
LESSBB'S CONTROL AND RESPONSIBTLITY
l. The Lessee will assume full eonCrol 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 Che authority of the Lessee on the Airport, including the Premises.
2. The Lessee wi11 ilnn7ediately notify the City of any condition, problem,
malfunction or other occurrence thaY threatens the safety of people or the Airport, harm to public
health or Yhe environment, or the safety or integrity oP the Premises.
10
LEASE City:
Lessee:
c. RADIO INTERFERENCE:_The Lessee will discontinue fhe 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 eo aircraft operations. The Lessee agrees to keep the
Premises clean of fish slime, fish waste, or any other ma2erial that might attract birds or other
wildlife. The Lessee aceepts full responsibility to maintain the Premises, control operations, and
take all reasonable measures to prevent a concentration of birds or other wildlife on the Premi ses.
e. PARKING: The Lessee will provide adequate vehicle, equipment, and aircra$ parking
space on the Premises for Lessee's business or activities, or confine parking Yo such other places
on the Airport as may be approved or designated in writing by the Airport Manager.
Article IX
Eneironmental Provisions
a. HAZARDOUSSUBSTANCE
1. If Hazardous Substances are handled on Yhe Premises, the Lessee agrees to have
properly trained personnel and adequafs procedures for safely storing, dispensing, and otherwise
handiing Hazardous Substances in accordance with all applicabie federal, state, and local laws.
2. Lessee wi11 promptly give the City notice of proceedings to abate or settle rnatters
relating to the presence or release of a Hazardous Substance on the Prernises or frorn the Lessee's
operations on the Airport. The L,essee will allow Che City to participate in any such proceedings.
b. ENVIRONMENTAL LIABILITY BASELII~E
The Lessee has the sole responsibility under ~his Lease w determine the ei7vironmental condition
and presence of F-Iazardous Substance existing in, on, and under the surface of the Premises, and
is conclusively presumed fo have caused or Materially Contributed To any contamination of or
originating on fhe Premises except as identified in an Environmental Liability Baseline accepted
in writing by the Cify.
1. Lessee may, upon written approval from City, perform an Environmental
Assessment to determine if any Contamination of the Premises exists. The Environmentai
Assessment will be performefl according to acceptable industry procedures.
2. If the Lessee caused or Materially Contributed To the presence or release of a
Hazardous SuUstance in, on or under the surface of the Premises, the Lessee's Environmental
Liability Baseline report must indicate the portion of the Contamination not attributed fo the
11
LEASE City:
Lessee:
Lessee or its operations. If Lessee discovers Contamination in, on, or under the surface of the
Premises the Lessee must prove by clear and convincing evidence to the satisfaction of the City
that the Contamination was not caused or Materially Contributed To by the Lessee or Lessee's
operations nor assumed by the L,essee by reason of assignment.
3. When the City receives the L,essee's Environmental Assessment to establish tlie
Environmental Liability Baseline, the City, in its sole discretion, will do one of the following:
A. accept the findings of the Lessee's Environmetiztal Assessment as the
Enviromnental Liability Baseline for that portion of the Premises being assessed; or
B. reject the findings and require the Lessse to perform additional
environmental testing(s) if the City determines in writing that the findin~s of the Environmenta]
Assessment are inadequate to develop an Environmental Liability Baseline for that portion of the
Preinises being assessed. The City's written rejection of the Lessee's snbmittal(s) will be based
on generally accepted professional practices necessary to determuie the environmental condition
and presence of any Hazardous Substance in, on, or under the surface of the Premises or failure
to demonstrate the portion of the Contamination not attributed to the Lessee or iCs operations.
c. SUPPLEMENTS TO THE ENVIRONMENTAL LIABILITY BASELIlVE
If, after an Environmental Liability Baseline is established for any portion of the Premises, the
Lessee discovers additional Contamination or the presence of any Hazardous Substance in, on, or
' under the surface of that portion of the Premises having an Environmental Liability Baseline that
~~ has not, by clear and convincing evidence to the satis£action to the City, been caused by the
Lessee or its operations, the Lessee may, at its own cost, submit an Environmental Assessment
reflecting this to tbe City for the City's consideration~ to add to the Environmental Liability
Baseline. The Lessee's Enviromnental Assessment inust prove by clear and convincing evidence,
to the satisfaction of the City that the additional Contamination or presence of any Hazardous
Subsfance on Cl~e Premises was not caused or Materially Contributed To by the I,essee or the
L,essee's operatioils.
1. Tf the Lessee Materially Con2ributed To the presenee or release of any Hazardous
SubsYance on the Premises, the Lessee's Environmental Assessment must indicate the portion of
the Contamination not attributed to the Lessee.
2. The Environmental Liability Baseline may only be amended to include that
portion of Contaminatioi~ not attributed to the Lessee or its operations.
3. When the City receives the I,essee's ~nvironmental Assessment to add to the
Environmental Liability Baseline, the City, in its sole discretion, will do one o£the following:
A. accept fhe fmdings of the Lessee's Environmental Assessment to add to the
12
LEASE Cit}~: _
Lessee:
Environmental Liability Baseline; or
B, reject the findings and require the Lessee to perform additional
environmental tesring(s) if the City determines in writing that the findings of the Bnvironmental
Assessment are inadequate to determine if additional Contamination or the presence of any
Hazardous Substance should be added to the Environmental Liability Baseline. The City's
wri#en rejection of the Lessee's submittal(s) will be based on generally accepted professional
practices necessary to determine the environmental condition and presence of any Hazardous
Substance in, on, or under the surface of the Premises or failure to demonstrate the portion of the
Containination not attributed to the Lessee or iYs operations.
4. If, after the Environmental Liability Baseline £or any portion of the Pxemises is
established, it is discovered that the presence of a Hazardous Substance identified in the
finvironmeiital Liability Baseline was caused or Materially Contributed To by the Lessee or its
operations, the Environmentai Liability Baseline may be amended to delete that portion of the
Contamination that is attributed to the Lessee or its operations. The City will have the burden of
proof in establishing that the Lessee caused or Materiaily Contributed To this Contamination.
5. If Contamination noT atYributed to the Lessee is discovered, or if it is discovered
that the Contamination identified in the Environmental Liability Baseline is attributed to the
Lessee, the parties agree to negotiate a supplement to the Environmental Liabiliry Baseline.
d. ENVIRONM~NTAL INDENINIFICATION
1. If Containination of the Premises or oTher properties by a Hazardous Substance
occurs from the Lessee`s operations on the Premises that is not in Lessee's Environmental
Baseline, 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 noY limited to,
sums paid in settlement of claims, attomey's fees, consultant fees, and expert £ees, which arise
during or after the term of this Lease as a result of such Contamination. This indemnification of
the City by the Lessee includes, but is not limited to, costs incurred in connection with any
investigation of site conditions or any cleanup, remediation, removal, or restorative work
required by any Pederal, state, or locai governmental agency beeause of a Hazardous Substance
being present in the soil or groundwater on or under the Premises or other properties affected by
the Contamination. ~
2. If the Lessee discovers Contamination or the presence of a Hazardous Substance
in, on, or under the surface of the Premises, the Lessee must prove by clear and convincing
evidence, to the satisfaction of the City, that the Contamination or presence of the Hazardous
Substance was not caused, ar Materially Contributed To, by the Lessee or its operations.
13
LEASE City;
Lessee:
e. REMEDIATTON
1. In the event of a Hazardous Substance spill on the Premises, the Lessee will
immediately notify the City and the Alaska Department of Environmsntal Conservation and act
prom~tly, 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 Co any notices required by this Lease, the Lessee will immediately
notify and copy the City in writing of ai~y of the following:
A. any pennit, enforcement, clean up, lien, removal or other governmental or
regulatory action instituted, completed, or threatened pursuant to any Environmental Law;
B. any claim made or threatened by any person against the Lessee or arising
from the Lessee's operations authorized by this I,ease, relating to damage, contcibution,
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 behal£ of, the L,essee to any environmental
agency azising out of or in connection with any Hazardous Substances in, on, or removed from
the Premises, including any complaints, notices, warnings ar asserted violation.
3. The City is under no obligation to remediate Contaminarion identified in an
Eiivironmental Assessment; except, the City agrees to renlediate, or have responsible parties
remediate, the Contamination identified in the Environmental Liability Baseline if the Lessee or
City is required to remediate by an agency with such authority. Fn the event of sucb required
remediation, the City will make a reasonable effort to coordinate the remediation wiYh the Lessee
to minimize disruption of the Lessee's operations and damage to the Lessee's improvements and
property.
4. Remediation and restoration of the contaminated area must meet all applicable
state and federal laws and regulatioizs and must meet the requiremenYs of a11 governing regulatory
autl~orities,
ENVIRONMENTAL AUDIT
I,essee will provide City a11 investigafive data, test results, reports, and any oCher infornlation
gathered or analyzed as part of or in relation to any Environmental Assessment, characterization
or audit on the Premises or the Airport that the Lessee performs or causes to be performed after
the sYarting date of this Lease. The Lessee 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.
14
LEASE ~ City: _
Lessee:
g. RELEASE OF LESSEE
The City releases the Lessee from liability to the City for Contamination and ~he presence of
Hazardous Substances identified by the Environmental Liability Baseline that was not cansed or
Materially Contributed To by the Lessee.
h. SURVIVAL OF OBLIGATIONS - CITY
The City's release of the Lessee and the City's covenant to remediate as discussed in this Article
will survive the cancellation, termination or expiration of this Lease.
Article X
IndemnificaYion & Insurance
a. INDEMNIFICATION
l. The Lessee will indemnify, save harmless, and defend the City, its officers,
agents, and employees from and against any and a111iabilities, losses, suits, adminiserative
actions, claims, awards, judgments, fines, demands, damages, injunctive relief or penalties of any
nature or kind to the full extent of the loss or ob3igaYion for pxoperiy damage, personal injury,
death, violation of any regulation or grant agreement, or any other injury or harm. 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 Uy the Lessee, or by any of its
officers, employees, agents, contractors or sublessees. 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 terminarion of this Lease.
2. The Lessee sha11 give the City prompt notice of any suit, claim, action or other
matter affecting the City to which Paragraph l, 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, aC its option, to parCicipaYe
cooperat~vely in the defense of, and settlement negotiations regarding, aily such matter, without
relieving the Lessee of any of iYs obligations under this provision.
3. As to any amount paid to others for personal injury or property damage with
respeet to which an aet or omission of the City is a legal cause, notwithstanding Paragraph 1 of
this section, the Lessee and the City shall reimburse eacb other according to the principles of
comgarative fault. If liability to a third pariy is subject fo apportianment according to
comparative fault under this provision, the Lessee and the Ciky shall seek in good faifh to achieve
non judicial agreament as to apportioument of fault as between themselves. This apportionment
of liabiliYy between Yhe City and the Lessee shal] not be construed to affect the rights of any
15
LEASE City: _
Lessee:
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 acceptabYe limits. If the Lessee's policy contains higher
limits, the Ciry will be entitled to coverage to the extent oP 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 Liabilitv, including Premises, all operations, property
damage, producfs (if applicable), and personal injury and death, broad-form contractual, with a
per-occurrence limit of ilot less than $1,000,000 combined single limit. If this lease authorizes
the Lessee to engage in the sale or Yhe commercial dispensing or storage of aviation fuel, the
policy must include an endorsement under which the insurer extends coverage to the Lessee's
fuel handling activities. This policy must name the City as an additional insured
2. Commercial Automobile Coveraee 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 on the Airport.
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
obiigaYions, The policy must waive subrogation against The City.
4. Products and Completed Operations Liability Insurance. If this lease authorizes
the Lessee to engage in the sale or the commercial dispensing or storage of aviation fue1, the
Lessee shall provide Products and Completed OperaYions Liability Insurance in at least the
following coverage limits:
A. $ l OQ000 bodily injury combined single limit per occurrence;
B. $300,000 bodily injury aggregate; and
C. $100,000 property damage combined single limit per occurrence.
5. 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 t12at 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 aY ieast 30 days prior to any termination,
cancellation, or material change in the insurance eoverage.
6. If the Lessee's insurance coverage lapses or is canceled, Lessee wil] immediately,
upon written notice by the City, halt all operations on the Airport, including the Premises. The
Lessee will not resume operations unti] ti~e City receives evidence that the Lessee has obtained
current insurance coverage meeYing the requiremeiits of this Lease.
16
LEASB ~ City: _
'~ ~~ Lessee:
7. 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 L,ease. CiYy's determination to revise the insurance requirements will be
Uased on the risks relative to the Lessee's operations, any insurance guidelines adopted by the
City, and any change in applicable law.
8. If the Lessee subleases all or any portion of the Premises under the provisions of
this Lease, the Lessee will require the sublessee 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 sazne. 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 properiy damage
resulting from such violation.
b. iJNLAWFUL ACTIVITY: Tlie Lessee shall not permit any unlawful use, occupation,
business, or frade to be conducfsd on the Premises contrary to any law, oxdinance, or regulafion,
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 tl~e appropriate authority.
d. LITIGATION: The KMC, including regulations promulgated thereunder, and the laws of
the State of Alaska will govern in any dispute Uetween the Lessee and Cify. If a dispute
contiaues a£ter exhaustion of administration remedies, any lawsuit must be brought in the courts
of the State of Alaska, in Kenai, Alaska.
17
LEASE City:
Lessee: '
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
oceupancy or the terms of this Lease. Provided however, that nothing in Yhis provision shall
prevent Lessee from contesting any inerease in a tax or assessment under any applicable law,
ordinance, or regulatiou..
f. PARTIAL INVALIDITY: Tf any term; provision, condition, or part of this Lease is
declared by a court of competenY jurisdiction to be invalid or unconstitutional, Yhe remaining
terms, provisions, coi~ditions, or parts shall continue in fuli force and effect as Y1~ough Che
deelaration had not been made.
Article XII
Lease Termination
a. CANCELLATIOI~r: 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: ~
l. The Lessee fails to pay when due the rents, additional rents, charges, ar 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; or if the Lessee's credit or debiC card is not accepYed by the issuing financial
institurion.
3. The Lessee uses or authorizes the use of the Premises for any purpose not
authorized by this Lease.
4. The L,essee £ails to fully perform and comply with ai7y provision in this Lease.
5. The court enters a judgment of insolvency against the I,essee.
6. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought
by or against the Lessee, or the L,essee files a voluntary petition in Uankruptcy.
7. Failure by the Lessee to comp]y 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 othercvise, or upon the Lessee's
abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or
18
LEASE City: _
Lessee:
representatives may, immediately or any fime thereaftex, re-enter, and resume possession of the
Premises or portion thereof, and remove all persons and property therefrom, either by summary
proceedings or by a suitable action or proceeding at law without being liable for any damages
therefor. No re-entry by the City shall be deemed an acceptance of a snrrender of the Lease.
c. CONTINUING OBLIGATIONS U?~TTIL 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 compleEely vacated if the Lessee has
remediated any environmental contamination for which the Lessee is responsible;
2. removed or otherwise disposed of any Lessee-owned permanent or removable
improvemeiits and personal property which this Lease aliows to be removed or the City directs to
be removed; and
restored the Premises to a neat and clean physical condition acceptable to the City.
C. REASONABLE CURE
L Tn the case of a violation that eannot be reasonably cuxed 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 tlueat to the airporC, public health or safery, or the enviroament, City will direct the
Lessee to stop the aetivity immediately and-may reduce the period to cure the violation, or the
City may correct the violation pursuanC to (d) of this Artiele.
d. RIGHT OF CITY TO PERFORM:
l. If, after 30 days following notice the Lessee fails or refuses to perform any action
required by this Lease, the City will have the righC, 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 coi~tinues 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 eonstitutes 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.
19
LEASE City: _
Lessee:
Z. If Lessee fails or refuses to perform any action that has been deemed an imniinent
threat the CiYy wi11 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 admiilistrative eosts reasonably incurred by the City in acting to
correct the imminent threat violation.
e. WAIVER: A waiver by the City of any default by the Lessee of any provision of this
Lease wi11 not operate as a waiver of any subsequent default. If the City waives a default, the
City is noY 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 sigtled on Uehalf of the City. T12e City's failure ta
insist upon the strict performance Uy the Lessee of any provision in this Lease is not a waiver ar
relinquishmenT for the future, and the provision wi11 continue in full force.
AIRPORT CLOSURE:
1. If the City closes the airport to aircraft operations for sixty (60) days or less, this
Lease will remain in fu11 force and effect without adjustment
2. If the City closes the Aixport to aircraft operations for more than sixty (60) days,
but not permanentiy, and this Lease is for aviation or direct aviation support uses, the Lessee
may, upon written notice to the City, either termiiiate the Lease or retain the Lease and receive a
fifty (50%) percent rent reduction or credit for that portion of the closure Yhat exceeds sixry (60)
days.
2. If the City pennanently closes the Airport to aireraft operations and
(i) this Lease is for aviation or direct aviation support uses, the L,essee may
terminate this agreement by written notice to the City; or
(ii) this Lease is for non-aviation uses, the L,essee may request in wriYing to have
the Lease terminated. The Cify will consider the L,essee's request in light of the City's
best interest and either terminate the Lease; or deny the Lessee's request in writing.
g. DTSASTERS
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
2. the Airport becomes tuiusable through no fault of either party and the performance
20
LEASB City: _
Lessee:
under this lease becomes impossible.
If the Lessee elects in writing that it will continue to operate after notice from City to Lessee Yhat
the Airport has become unusable, the Lessee's obligations under the Lease will continue, but City
shall be under no obligation to coutinue to perform.
Causes for termination of the lease under this provision (g) include acts of God, the public
enemy, and the United States.
h, NATIONAL EMERGENCY: If the federal govemment 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.
i. SURRENDER ON TERMINATION: ~xcept as provided otherwise in this Article XII,
Lessee shall, on the last day of the term of this Lease 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
uecessary 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.
Article XIII
General Covenants
a. USE OR THE AlRPORT: Except as provided herein, any regular use of Airport lands or
faeilities without the written consent of the City is prohibited. This prohibition shall not apply to
use of areas designated by the City for specified publie uses, such as passenger Cerminals,
auYomobile parldng areas, az1d streets.
b. COSTS AND ~XPENSES: Costs and expenses incidenC 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, nar removing
any material therefrom, without written permission of the City. At the expiration of the term
fixed, or any earlier termination of the L,ease, the Lessee wi11 peaceably and quietly quit and
surrender the premises to the Ciry.
d.. CONSTRUCTION APPROVAL AI~TD STANDARDS: Any building construction on Che
Premises by the Lessee must be compatible with its sunoundings and consisYent with the uses
authorized under this Lease, as determined by the City. The Lessee must obtain Yhe City's writYen
approval before placing fill material, beginning any land development, or constructing or
demolishing any improvements on the Premises, and before begimling any alterations,
21
LEASE City:
Lessee: ~~.
modifications, or renovation of existing structuxes on the Premises. The Lessee must submit to
the City detailed drawings of Yhe pxoposed development, alteration, modification, or renovation,
together with specifications or any other information the City reasonabiy requires. Further, t1~e
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 REOUIREMENTS: 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 coveilant. However, the modification sha11 »ot
act to reduce the rights or privileges granted the L,essee by this Lease, nor act to cause the Lessee
financial loss.
£ RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and
covenants that the Lessee, upon paying rent and performing oCher eovenants, terms, and
conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and
enjoy the Premises, except that the £ollowing sha11 not consirued as a denial of the right of quiet
or peaceable possessioiz: ~
1. Any inconvenience eaused by public works projects in or about the Premises; and
2. any otl~er entries by the City on the Premises reserved or authorized under other
provisions of this Lease..
g. h~0 PARTNERSHIP OR JOINT VENTURE CREATED: Tt is expressly understood that
the City shall not be eonstrued or held to be a partner or joint venturer of L,essee in the conduct of
the Lessee's activities or business on the Premises. The relationship between the City and fhe
Lessee is, and shall at all times remain, strictly that of Iandlord and tenant, respectively.
h. DISCRIMINATIO~: The Lessee wi11 not discriminate on fhe 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, includin~ actions required pursuant to a~~y federal or state 1aw.
22
LEASE City: _
Lessee:
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 participati~g 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 suborganization(s) provide assurance to the City to the same
effect that they will also undertake affirmative action programs and require assurances from their
suborganization(s) as required by 14 CFR, Part 152, subparC E.
j. INTEGRATIO?~T 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 goveming the Airport, including Yhe 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 nat be entitled to terminate the whole or any portion of the
leasehold estate created under this Lease, by reason o£ the exercise of the CiYy'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
obCainable or available under the then existing 1aws, to stand against the Premises or
improvements on the Premises for any labor or material funiished to Lessee or claimed to have
beeil furnished to Lessee or to the Lessee`s agents, contractors, or sublessees, in connection with
work of any character performed or claimed to have Ueen performed on the Premisesor
improvements by or at the direction ar sufferance of Lessee. Provided, however, the Lessee shall
have the 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 Che lien or claim for 1ien,
the Lessee will immediaYely pay any judgement rendered with all proper costs and charges and
shall have such lien released or judgement 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 thecondemnation or taking, the City and the Lessee shall make a good faith effort to
agree upon
23
LEASE CiYy: _
Lessee: ~
the division of the proceeds;
the abaternent in rent payable during the tenn 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 (30) days after the award has been paid into Court, the City and Lessee are
unable to agree upon what division, abatement in renY, and other adjushnents as are just and
equitable, the dispute shall be determined by arbitration.
o. SUCCESSORS IN INTEREST: This L,ease 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 far in fhis Lease.
p. 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 flrst
page of this Lease or to the latest address designated in accordance with (2) of this
Provision (p); 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 tiine, designate a new address at which
they will receive notices by providing the other party with written noCice 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 (p).
q. RETENTION OF RENTAL: In the event the City tenninates this Lease because of any
breach by the Lessee, the City shall retain any unused balance of the rental payment last made by
the I,essee Cityas partial ox totalliquidaYed damages for the breach.
r. FIRE PROTBCTIOIVT: The Lessee wil] take all reasonable precautions to prevenC, and
take all necessary action to suppress destructive or uncontroiled fires and comply with all laws,
regulations, and rules promulgated and enforced by the City for fire protection on the Airport.
s. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral,
or in any deposit of stoue or gravel valuable for extraction or utilizarion is included in the
Premises or in the rights granted by this lease.. The Lessee shall not sell or remove from the
24
LEASE City: _
Lessee:
Premises for use eisewhere any timber, stone, gravel, peat moss, topsoil or any other material
valuable for building or commercial purposes.
t. 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.
u.. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the
L,essee, or a duly authorizedrepresentative of Lessee, and an authorized representative~of the
City.
v. CAPTIONS: The captions of the provisions of ihis Lease are for convenience only aiid
do not necessarily define, limit, describe, or construe the contents of any provision.
w. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property
available for private use, while at a11 rimes protecting the public interest to the greatest extent
possible, Following the rule that transfers of interest in public property are to be strictly
const~-ued in favor of the public property landlord, a11 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 consCrued.
x. LBSSEE ACK1V'OWLEDGEMENT: The Lessee acknowledges that the Lessee has read
this Lease and fu11y understands iCs 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:
y. 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.
Articie XN
Survey, Improvements and Performance Bond
a. SURVEY: T1~e L,essee is solely xesponsible, at its soie expense, to confiim or establish
the physical location of the boundaries of the Premises prior to beginning any construction
thereon, including clearing gruUbing, back-filling and environmental sampling. Any survey of
the Premises shall be performed by a Land Surveyor registexed in the State of Alaska, The
Lessee shall fumish the City with a copy of the plat of any survey performed on the Premises by,
or on behalf of, the Lessee.
25
LEASE Ciry:
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 cosfs. In
addition to the as-built drawings required by this Lease, the Lessee tinust submit to the City
written evidence that the Lessee has completed the land development and canstructed
improvemenYS on the Premises witl~ an aggregate cost or investment of not less than
The evidence of cost must be sub111itted to the City wi~hiu sixty (60) days of the
completion of the development a~td iniprovemenYs, but by no later than
A. Costs considered towaxd tbe aggregate cost of permanent improvemen~s
include building construction, design, labor, materials, materials shipping, permits,
equipment, soil tesCing, environmental baseline report, and environmenta] assessment
directly related to the construction; premises and as-built surveys; site preparation,
includin~ excavation, geotextile fabric, filling, grading, fil1 material, gravel, and
pavement, remediation of environmental contamination (unless Lessee caused or
Materially Contributed To the Contamination); and utility eonnection costs.
B. The cost of Permanent Improvements excludes
~ ~ (i) financing costs;
(ii) work performed by the City and not reimbursed by the Lessee; and
(iii) work performed by the Lessee and reimbursed by the City.
2. FAILURE TO COMPLETE IMPROVBMENTS: If the Lessee faila to complete
the required consYruction within the time allowed under (h)(i) of this Article, including any
exYensions granted, the City will execute against and the Lessee will for£eit, any bond or other
guaranYee given by the Lessee and, as applicable, City will
A. initiate cancellation of the lease, if one-third or less of the required
construction is completed;
B. reduce the term of the lease to a period that is consistent with Ehe portion
of Che required eonstruction timely completed, if at leasY two-thirds of the construction is
completed; or
C. either reduce the ferm of the lease or initiate lease cancellatioia of the ]ease,
whichever the CiYy determines is in the City's best interest, if more Yban one-third buY less than
two-thirds of the required construction is timely complefed.
26
LEASE City:
Lessee:
3. APPEARANCE: Wl~en 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 beginuing 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 re~ulafion 14 CFR Part 77.
5. CITY APPROVAL WTTHHELD: The City's approvai of any construction,
alteration, modification, or renovation will not be withheld uniess
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,
ragulation, or law;
D. the proposed projecf would interfere witb 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. Yhe project plans do not make sufficient provision for drainage, aireraft,
vehicie, and equipment parking, or for snow storage; or
H. the proposed project does not conform with generally recognized engiiieering
principles or applicable fire or building codes.
6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises,
Lessee wi11 deliver Yo City a written scope of work that, at a minimum, lists the structuse(s) that
are to be demolished and the timeframe for demolitiou 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.
7. BUILDING SETBACK: No building or other permanent structure may be
constructed or placed within twenty (20) feeC of any boundary line of the Premises without CiTy's
prior written approval. In addition, no building or other permanent structure may be constructed
or placed within feet of any boundary line of the Premises which
fronts on a landing strip, taxiway, or apron.
8. AS-BUILT DRAWINGS: Within sixty (60) days affer completion of construction
27
LEASE ~ City:
Lessee:
or placemenf of improvements upon the Premises, the Lessee will deliver to fhe 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 wi11 appropriately mark Yhe surface of Yhe 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
realigmnent or alteration of an existing security fence on the Premises or boundary of the
Premises, the Lessee agrees TA realign or alter the fence in a manner approved in writing by the
Airport Manager. AnyCime fhe fence musf be breached to a11ow Yhe Lessee to complete
improvement construction or fence modificafions, the Lessee shall, at tbe Lessee's so]e expense
place temporary barriers to maintain the security of the Airport, as determined by t~e 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 sha11 promptly repair
the fence to the satisfaction of the Airport Manager.
10. DAMAGE TO IMPROVEMENT5: If Lessee's improvements on the Premises
are damaged or destroyed, Lessee will cause the improvements to be repaired or rebuilt, and
restored Co normal function within two (2) years following the dama~e or destruction. If Yhe
Lessee fails to timely rebuild or restore the improvemeuts, Che City may, at i2s sole discrerion,
either reduce the term of this Lease coinmensurate with the estimated va]ue of'the Lessee's
remaining, fully functional improvements on the Prernises, or cancel this Lease.
~~~~ 11. DAMAGE NEAR EXPIRATION: If Lessee's improvements are damaged to the
exYent that more than 50% of Ehe space is unusable and the damage occurs wiChin five yeaxs of
the expiration of the term of this Lease, Lessee may remove the damaged improvements, restore
the Premises and terminate this Lease.
d. PERFORMANCE BOND• Prior to be~innine the construction of permanent
improvements requirefl under (b)(1} of this Article, the Lessee sha11 submit to the Citv a
performance bond, deposit, or other securit in the amount of $ . The form
of the bond or other security sha11 be subject to the City's approval.
e. DISPOSITION OF IMPROVEMENTS UPON TERMINATION: Upon the expiration of
the terni of this Lease or any earlier terminaYion, title to the buildings, other improvements, and
building equipment shall automatically vest in City without requirement of any deed,
conveyance, or bill of sale. However, if City should request any such document in confrmation
hereof, Lessee shall promptly execute, acknowledge, and deliver the documenT to the City and
pay any charge, tax, and fee lawfully asserted or imposed on the conveyance evidenced by the
document. Provided howevex, that Lessee shall retain title to, and remove from the Premises at
the L,essee's sole expense, any building, other improvement or building equipment that the City
has determined in writing to tbe Lessee
28
LHASE City:
~~~. ~~ Lessee:
1. has exceeded its usefizl life;
2, is damaged beyond reasonable repair;
3. is a hindrance to the future use of the Premises; or
4. is of negligible value.
£ NOTTCE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three
days prior to cornmencing any construction project valued in excess of $500.00 on the Premises.
The Lessee agrees to assist in the posting of a notice of non-responsibility and maintenance of
the notice on the Preinises during coiistruction. Lessee agrees that in Yhe event the Lessee fails to
notify the City as required by tlus Provision (fl, the Lessee sha11 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.
Article XV
Special Provisions
1. City Constructed Improvements.
ALTERNATNE ONE - The City commits Co const~°uct improvements after the lease is
signed.
(a) As part of the exchange of consideration of tl~is lease, the City will, at the
City's expense, cause the following improvements to be constructed on or in
connection with the Premises:
(i)
(ii)
(b) The City's total cost of the improvement construction shall not exceed
$ without the Lessee's written concurrence.
(c) The Lessee sha11 reimburse the City for the City's cost of constructing the
improvements. The reimbursement shall be made in Yen (10) equal annuai
payments, plus interest at eight percent (8%) per year on the unpaid balance. The
Lessee may pay the entire remaining balance to the City at any time.
(d) After completing the improvements, the City wi11 give the Lessee written
notice of the City's total cost of constructing the improvements and the date on
which the Lessee's reimbursernent payments shall begin, which date shall be no
earlier than 60 days after the date of the City's notice. The Lessee's annual
29
LfiASE City: _
I,essee: ~~
reimbursement payment for each succeeding year shall be made to the City by no
later than the anniversary of date on which the first payment was due.
(e) Failure by the Lessee to timely reimburse the City as required under (b)
through (d) of this provision shall be grounds for termination o£ this lease by the
City.
ALTERtUATIVE TWO - The City builds irriprovements before the lease is sigfzed.
(a) The Lessee acknowledges that prior to the execution of this lease, the City
constructed the following improvements on or in connection with the Premises:
(i)
(ii)
(iii
(b) The City's total cost to construct the improvements was
(c) As part of the consideration of this lease, the Lessee shall reimburse the CiTy
for the City's cost o£ consYrucYing the improvements. The reimbursemeut shall be
made in ten (10) equal annual payments, plus interest at eighC percenY (8%) per
year on the unpaid balance. The Lessee may pay the entire remaining balance to
the City at any time.
(d) The L,essee sha11 make tbe first reimbursement payment to the Ciry by no later
than the first anniversary of the lease term beginning date given in Article III of
this lease. The Lessee's annual reimbursement pa}nnent for each succeeding year
shall be made to the City by no later than the anniversary of date on whieh the first
payment was due.
(e) Failure by the Lessee to timely reimburse the City as required under (c) and (d)
of this provision shail be grounds for tennination of this Lease by the City.
IN WITIV~SS WHEREOF, the parties hereto have hereunto set fheir hands, the day and
year stated in tbe individual acla~owledgsnents below.
CITY:
30
LEASE
Gity:
Lessee:
By:
(If Lessee is a Corporation)
ATTEST:
Rick R. Koch
City Manager
LESSEE:
By:
Name
Title
STATE OF ALASKA )
) ss.
THIRU 7U~ICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , 2006, Name:
, Title: , of ,
being pexsonally lrnown to me or having produced satisfactory evidence oP identification,
appeared before rne and acknowledged the voluntary and authorized execution of the foregoing
instrument on behalf of said cosporation.
Notary Public for Alaska
My Commission Expires:
31
LEASE City: _
Lessee:
~ STATE OF ALASKA )
~ ~ ) ss.
TffiRD JUDICIAL DISTRICT )
THIS IS TO CERTI~'Y that on this day of , 2006, Rick R. Koch, City
Manager of the City of Kenai, Alaska, being personally known to me or having produced
satisfacfory evidence of identification, appeared before me and aclrnowledged the voluntary and
authorized execution of the foregoing insfrument on behalf of said City.
Approved as to lease form by City Attorney:
Approved by Fillance Director:
Lease approved by Council on
Carol Freas, City Clexk
I~Totaay Public for Alaska
My Commission Expires:
32
LEASE ~ity;
Lessee: