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HomeMy WebLinkAbout2008-05-20 Council PacketAGENDA C\\\~NAI CITY COUNCIL -REGULAR MEETING `5 MAY 20, 2008 1 ~::- 7:00 P.M. xsay~! KENAI CITY COUNCIL CHAMBERS KENPLAIGSNII htto:llwww.ci.kenai.ak.us U - ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) 1. Ordinance No. 2303-2008 -- Enacting KMC 21.05.085 Establishing a Fuel Flowage Fee of Three Cents ($0.03) Per Gallon of Fuel Delivered io the Kenai Municipal Airport. ''.. 2. Ordinance No. 2304-2006 -- Amending the Official Kenai Zoning Map ', by Rezoning Approximately Six (6) Acres From Suburban Residential, ' Conservation, and Rural Residential to Rural Residential 3. Ordinance No. 2305-2008 -- Increasing Estimated Revenues and '. Appropriations by $35,000 in the Airport Special Revenue Fund and the Airport Storage Building Capital Project Fund for Bid and Construction Phase Engineering. 4. Ordinance No. 2306.2008-- Increasing Estimated Revenues and ~, Appropriations by $70,000 in the Dock Improvement Capital Project ',. Fund for Culvert Replacement and Paving. 5. Ordinance No. 2307-2008 --Transferring $71,731 in the General Fund and Increasing Estimated Revenues and Appropriations by $71,731 in the Visitors Center Heating System Capital Project Fund to Replace the Visitors Center Heating System. 6. Ordinance No. 2308-2008 -- Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Dock Department for Fuel. 7. Ordinance No. 2309-2008 -- Increasing Estimated Revenues and Appropriations by $11,457 in the General Fund for Professional Services at the Multi-Purpose Facility. 8. Ordinance No. 2310.2008 --Amending KMC 5.35.040 by Increasing the Minimum Distance Between Oil and Gas Wetl Drilling Locations and Residential or Commercial Buildings From 200 to 600 Feet Unless the Written Permission of the Owner is Obtained. 9. Resolution No. 2008-26 -- Authorizing the Purchase of 12.5 Acres of Property Described as Tract A1, Birch Fields Subdivision, Kenai Well Addition, Third Recording District, Kenai, Alaska From the Kenai Peninsula Borough, for $1.00, for a Well Site and Other Public Facilities. 10. Resolution No. 2008.27 -- Approving the Form for the Airline Operating Agreement and Terminal Area Lease and Authorizing the City Enter Into Such Agreements with ERA Aviation and Grant Aviation. 11. Resolution No. 2008-28 -- Approving a Contract to Alaska Ru-au'buiiders, inc. foi ihE ~iujEl Entitiad Ti7oiTipcun nark PavliSg LiD - 2008 for the Total Amount of $674,330. ITEM G: UNFINISHED BUSINESS -- None ITEM H: NEW BUSINESS 1. Bills to be Ratified 2. Approval of Purchase Orders Exceeding $15,000 3. *Ordinance No. 2311-2008 -- Finding that Certain City-Owned Land, Identified as T5N R11W SEC 4 Seward Meridian KN 088D053--Central View Subdivision Tract B, Third Recording District, Kenai, Alaska, (KPB Parcel No. D4901062), is Dedicated for Park Purposes. 4. *Ordinance No. 2312-2008 -- Amending KMC 14.05.010 by Adding a New Subsection to Compensate Planning and Zoning Commissioners at the Rate of $100 Per Month. 5. *Ordinance No. 2313-2008 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2008 and Ending June 3Q 2009. 6. *Ordinance No. 2314-2008 -- Enacting KMC 23.55.080 Providing for Longevity Pay of Two Percent (2%) for Certain Employees in Step CC in the City of Kenai Salary Schedule. 7. *Ordinance No. 2315-2008 --Increasing Estimated Revenues and Appropriations by $1,358.38 in the General Fund to Pay for Police Uniforms and Equipment. 8. `Ordinance No. 2316-2008 --Increasing Estimated Revenues and Appropriations by $24,800 for Repair of the Retaining Wall on South Spruce Street. 9. *Ordinance No. 2317-2008 -- Enacting KMC 13.20.030 Prohibiting Trespass in Posted Environmentally Sensitive Sand Dune Areas in a Portion of the North Shore of the Kenai Beach. EXECUTIVE SESSION --Annual Evaluation of City Manager. ITEM N: ADJOURNMENT The public is invited to attend and participate. Additional information is 'available through the City Clerk's office at 210 Fidalgo Avenue, or visit our website at httoa/www.ci.kenai.ak.us. Carol L Freas, City Clerk D/211 MAY 20, 2008 REGULAR COUNCIL MEETING REQUESTED ADDITIONS/CHANGES TO THE PACKET ITEM Item B-2: DALE SANDAHL, CHAIRPERSON, PARKS & RECREATION COMMISSION -- Covered Sports Facility Item E-10: Resolution No. 2008-2? -- Memorandum -- Change to Airline Operating Agreement and Terminal Area Lease REQUESTED BY: MAYOR CITY MANAGER & CITY ATTORNEY CONSENT AGENDA -{~-`~~ ~~ ~~ tkedlyof ~~ IBENI-~ Sltll MEMORANDUM TO: ~~gg°~~ ~Mayor Porter and the Kenai City ncil FROM: hick Koch, City Manager and< .Graves, City Attorney DATE: March 28, 2008 RE: Change to Airline Operating Agreement and Terminal Area Lease The administration would Like to delete subsection A.6. in Exhibit D of the Airline Operating Agreement and Tenninai Area Lease. That subsection deals with insurance requirements for lessees and requires: "Passenger personal injury not less than twenty-five million dollars ($25,000,000) per occurrence and in the annual aggregate with respect to non-passenger injury." Our understanding is that this type of insurance is designed to protect the airlines from such claims as defamation rather than passenger or non-passenger physical injury. The city has not previously required such coverage and the state does not require it either. Subsections 1-5 would still require the airlines to have coverage for passenger and non-passenger physical injury and property damage. The city will be an additional insured for that coverage. ~ i ~.. ~,-t..~_~-~ TESTIMONY S%GN-IN SHEET ~ rte'=~-~` ~' 's ~~`f'`~t f.~~~ 'C,'~.~ Cc~~:~a~`~~~a~. ~~ ~ ~ ~~ ~ : ~,.za, F ~ •__ 4' `~1,,,. 0 -v~ a i~ O z w W c J U , Z O U wm.. ~_, > ~.~ :.. ~, r. 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",_ N : ~ ~ ~ ~ W W z u o ~ ~ O ~ w J w f z Q J J <C ~ 0 0 0 0 ~ ~' = w ~ ~ m ~ cn cn W ~ z p O w w Z J ~ ~ cn J >- 00 0 Q r ~ v~ ' 4 U'r > .,.. ~ ,. ~ ~ r ~ W w Z ~ O W W z J u ~ :~ J J I- ~ J ~ ~ m a ~ ~ = w u i c n r ~ ,~ ~ ~ ~ ~ w W Z ~ Cn OJ J F- ~ J 0 (/~ J ~ ~ Q Q w ~ ~ m a cn cn ~ J,.` ~' ;C3 ~ 3 ~' PUBLIC NOTICE ~.~ry,~ pENpl~ptpSKp Public Notice is hereby given the second regular May meeting of the Kenai City Council meeting has changed from Wednesday, May 21, 2008 to Tuesday, Mav 20, 2008. The meeting will be held in the Kenai City Council Chambers and begin at 7:00 p.m. Contact the Kenai City Clerk's office at 210 Fidalgo Avenue, Kenai, 283- 7535, extension 231 with questions. Carol L Freas, City Clerk D/ Publish: 5/8 and 5/18/08 AGENDA KENAI CITY COUNCIL -REGULAR MEETING MAY 20, 2008 7:00 P.M. KENAi CITY COUNCIL CHAMBERS htti~: / /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 member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) Brenda Ahlberg, Executive Director/Boys 8v Girls Clubs of the Kenai Peninsula -- Update ..................................................................................... ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS ITEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) 1. Ordinance No. 2303-2008 -- Enacting KMC 21.05.085 Establishing a Fuel Flowage Fee of Three Cents 00.03) Per Gallon of Fuel Delivered to the Kenai Municipal Airport ............................................................................................ 13 2. Ordinance No. 2304-2008 -- Amending the Official Kenai Zoning Map by Rezoning Approximately Six (6) Acres From Suburban Residential, Conservation, and Rural Residential to Rural. Residential ........................................................ 17 3. Ordinance No. 2305-2008 -- Increasing Estimated Revenues and Appropriations by $35,000 in the Airport Special Revenue Fund and the Airport Storage Building Capital Project Fund for Bid and Construction Phase Engineering ..................................................................................................... 21 4. Ordinance No. 2306-2008-- Increasing Estimated Revenues and Appropriations by $70,000 in the Dock Improvement Capital Project Fund for Culvert Replacement and Paving .................................:.................................... 23 5. Ordinance No. 2307-2008 -- Transferring $71,731 in the General Fund and Increasing Estimated Revenues and Appropriations by $71,731 in the Visitors Center Heating System Capital Project Fund to Replace the Visitors Center Heating System .............................................................:................................. 25 6. Ordinance No. 2308-2008 -- Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Dock Department for Fuel......... 33 7. Ordinance No. 2309-2008 -- Increasing Estimated Revenues and Appropriations by $11,457 in the General Fund for Professional Services at the Multi-Purpose Facility ...................................................................................... 35 8. Ordinance No. 2310-2008 -- Amending KMC 5.35.040 by Increasing the Minimum Distance Between Oil and Gas Well Drilling Locations and Residential or Commercial Buildings From 200 to 600 Feet Unless the Written Permission of the Owner is Obtained ..................................................................................... 37 9. Resolution No. 2008-26 -- Authorizing the Purchase of 12.5 Acres of Property Described as Tract A1, Birch Fields Subdivision, Kenai Well Addition, Third Recording District, Kenai, Alaska From the Kenai Peninsula Borough, for $1.00, for a Well Site and Other Public Facilities .......................................................... 39 10. Resolution No. 2008-27 -- Approving the Form for the Airline Operating Agreement and Terminal Area Lease and Authorizing the City Enter Into Such Agreements with ERA Aviation and Grant Aviation ............................................ 46 ,' 11. Resolution No. 2008-28 -- Approving a Contract to Alaska Roadbuilders, Inc. for the Project Entitled Thompson Park Paving LID - 2008 for the Total Amount of $674,330 ..................................................................................................... 115 ITEM F: MINUTES 1. *Regular Meeting of May 7,2008 ...................................................................... 117 2. *Notes of April 16, 2008 Council Meeting Work Session .................................... 137 3. *Notes of April 21, 2008 Council Meeting Work Session .................................... 139 ITEM G: UNFINISHED BUSINESS ITEM H: NEW BUSINESS 1. Bills to be Ratified .......................................................................................... 143 2. Approval of Purchase Orders Exceeding $15,000 .............................................. 145 3. *Ordinance No. 2311-2008 -- Finding that Certain City-Owned Land, Identified as T5N RllW SEC 4 Seward Meridian KN 0880053--Central View Subdivision Tract B, Third Recording District, Kenai, Alaska, (KPB Parcel No. 04901062), is Dedicated for Park Purposes ...................................................... 147 4. *Ordinance No. 2312-2008 -- Amending KMC 14.05.010 by Adding a New Subsection to Compensate Planning and Zoning Commissioners at the Rate of $100 Per Month ............................................................................................. 149 5. *Ordinance No. 2313-2008 -- Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2008 and Ending June 30, 2009 .................................... 15I 6. *Ordanance No. 2314-2008 -- Enacting KMC 23.55.080 Providing for Longevity Pay of Two Percent (2%) for Certain Employees in Step CC in the City of Kenai Salary Schedule .............................................................................. 153 7. *Ordinance No. 2315-2008 -- Increasing Estimated Revenues and Appropriations by $1,358.38 in the General Fund to Pay for Palice Uniforms and Equipment .......................................................................................... 155 8. *Oxdinance No. 2316-2008 -- Increasing Estimated Revenues and Appropriations by $24,800 for Repair of the Retaining Wall on South Spruce Street ............................................................................................................ 157 9. *Ordinance No. 2317-2008 -- Enacting KMC 13.20.030 Prohibiting Trespass in Posted Environmentally Sensitive Sand Dune Areas in a Portion of the North Shore of the Kenai Beach .............................................................................. 159 ITEM I: COMMISSION/COMMITTEE REPORTS 1. Council on Aging .................................................................... ....................... 163 2. Airport Commission ................................................................ ...................... 167 3. Harbor Commission ................................................................ ...................... 171 4. Library Commission ................................................................ ...................... 175 5. Parks & Recreation Commission .............................................. ...................... 6. Planning & Zoning Commission ............................................... ...................... i79 7. Miscellaneous Commissions and Committees a. Beautification Committee ................................................... ....................... 191 b. Alaska Municipal League Report ......................................... ....................... c. Mini-Grant Steering Committee ........................................... ...................... ITEM J: REPORT OF THE MAYOR ................................ ...................... ITEM K: ADMINISTRATION REPORTS 1. City Manager ................................................................................................ 195 2. City Attorney ................................................................................................ 3. City Clerk ..................................................................................................... YTEM L: DISCUSSYON 1. Citizens (five minutes) 2. Council ITEM M: PENDING LEGISLATION (items listed below are legislation which will be addressed at a later date as noted and are not action items for this meeting.) -- Annual Evaluation of City Manager. %TEM N: ADJOURNMENT %NFORMATION YTEMS MAY 20, 2008 Page No. 1. 5/20/2008 Purchase Orders Between $2,500 and $15,000 for council review ............................................................................................................ 2. 5/ 13/2008 City of Kenai Dock Rate Schedule .................................................. 3. 5/7/08 L. Magiera application for appointment consideration to the Parks & Recreation Commission ................................................................................... 4. 4/2008 Kenai Municipal Airport Enplanement Report ....................................... 8.30 AM Boys & Giels Clubs of the Kenai Peninsula 06N4f08 Accrual Basis PYdf[t ~ LdS.S. bj/ e'.{3SS July 2006 through June 2007 AK Legislative Grant Community Center Project Protect (REC. CENTER) (REC. CENTER) (REC. CENTER) Ordinary Income/Expense _ Income 405 ~ Clubhouse Revenue O.OG 221.08 0.00 490 • Contributions Revenue 0.00 732.46 0.00 425 • Gran£ Revenue 10,000.00 4,225.69 7,5D0.00 435 • Rec Center Revenue 0.00 172,989.99 O.CO Total tncome 70,000.00 177,569,22 7,500.OD Expanse 600 • Activities Expense .0.00 0.00 0.00 610 • Atlvertising Expanse O.OD 202.98 0.00 615 • Auta Expense O.DO 336.96 152.05 616 • Awards and Scholarships 0.00 250.00 O.OD 697 • Background Profile Expense 0.00 53.72 D.00 619 • Bank Services Expense O.DO -5.00 0.00 620 ~ Board Expense 0.00 5.22 O.OD 624 • Contract Labor Expanse 0.00 10,205.00 O.OD b25 • Gontracts Expense C.00 ",,427.60 0.00 634 • Dues & Subscriptions Expense 0.00 536.58 0.00 63b • Employee Payroll 8 Benefits 0.00 114,75228 8,095.62 640 • Equipment Expense 6,022.49 49.50 0.00 660 • Insurance Expense 0.00 8,675.09 0.00 669 ~ Licenses, Permits antl Fees 0.00 10.00 0.00 674 • Postage & Delivery Expense 0.00 0.00 0.00 575 • Printtng Expense 0.00 22.D0 0.00 6T/ • Prdfessional Services Expense 0.00 1,277.00 D.00 680 • Repairs & Maintenance Expense 0.00 475.72 D.00 682 - Returned Item Fee 0.00 -160.00 4.00 685 ~ Scholarship Expense 0.00 0.00 0.00 694 ~ Supplies Expanse 2,776.90 4,344.58 796.97 692 ~ Telephone Expense D.DO 44.06 0.00 693 ~ Training Expense O.CG 1,563.84 0,00 695 • Travel Expense 0.00 O.OD 0.00 696 • Utilities Expense 0.00 494.99 0.00 697 ~ Web Page O.DO 21.49 0.00 698 • Youth of the Year Expense 6.00 142.90 0.00 Total Expense 8,799.39 144,751.57 9,044.84 Net Ordinary tncome ~r 1,200.61 32,617.71 -t,544.8a Net Income 9,200.61 32,817.71 •1,544.84 Page 1 of 2 1 8:30 AM Boys ~ Girls Clubs of the Kenai Peninsula 05/14!08 Accrual Basta Profit ~c Loss by Class Juty 2006 thraugh June 2U07 Ordinary IncomelExpense Income 406 • Clubhouse Revenue 419 • Contributions Revenue 425 • Grant Revenue 435 • Rec Center Revenue Total income Expense 600 - ActivtGes Expense 610 ° Advertising Expense 616 • Auto Expense 616 • Awards antl Scholarships 617 • Background Profile Expense 619 • Bank Services Expense 620 - Boartl Expanse 624 -Contract Labor Expense 626 • Contracts Expense 630 ~ Dues s Subscriptions Expanse 635 ~ Emplcyee Payroll & Benefits 640•Equipment Expense 660 - insurence Expense 669 -Licenses, Permits and Fees 674 • Postage 8 Delivery Expense 675 • Printing Expense 677 • Professional Services Expense 660 • Repairs & Maintenance Expense 682 ~ Returned Item Fse 685 ~ Scholarship Expense 696 ~ Supplies Expense 692 • Telephone Expense 693 ^ Training Expense 695 • Travel Expense 696 -Utilities Expense 697 ~ Web Paga 698 ~ Youth of the Year Expense Total Expense Net Ordinary Income NeY Income Teen Center {REC. CENTER) Total REC. CENTER TOTAL 4,216.13 4,437.21 4,437.21 6,371.53 6.509,99 6,503.99 6 32.42 28,D58.11 28,058.11 3,132.81 176,122.80 176,122.80 20,052.$9 215,122.11 215,.122.11 196.00 196.00 196.00 330.09 533.67 533.07 476.68 965.b9 965.69 p.00 250.D0 25C.00 758.02 211.74 211.74 0.00 -5.00 -S.OD 0.00 5.22 5.22 6 50.00 1 D, 855.00 10, 855.00 267.60 1,695.20 1,695.20 OAO 53"0.58 536.58 36,714.46 159,567.56 159,567.56 69.99 6,16L98 6,161.98 15.59 8.630.68 6,630.68 i 75.00 185.OO 185.00 139.41 139.41 739.41 0.00 22.00 22A0 D.De 1,z77.oo 1,z77.oD 460.00 935.72 935.72 0.00 -100.00 -100.00 120.00 120.00 120.00 6,404.86 14,323.31 14,3^^<3.31 0.00 44.06 44.06 1,493.62 3,077.46 3,077.46 509.94 509.94 509.94 0.00 494.99 494.99 18.38 39.87 39.87 142.86 285.76 285.76 48,362.50 2i 0,958.24 210,958.24 -28,309.61 4,163.87 4,163.87 •28,309.61 4;163.87 4,163.87 Page 2 of 2 2 0 U U d N C d Y ti N N m '" m .s LL o m ~ y V 16 " m O o p ~ ~ ~ ~ LL C ~ 9 a ~ `a'~ ~ ~ j m ~y ~ 6 d T U~ ~ d m n EE ~ ~ o o°° '~ ~ c ° ~ U 9 ~ E ' ° 6 m m ~ $ . ~ ~ Y ~ fl u vo c"5 E~gE w wy E c woa J m ~ a. ~ . t3 , Yn a wErR ' ~ ~~ m ~'e'~7 E ~ ~ m ~ ~ E T E ' Q~~ ~ g ~ E' ' p Q c F ~ , Q vi L~ Q ~ m " ai g nw o ( ~ oa`"i~U' g.N 8 3~CV7 ` ~ c ` z ~ > ¢m a xm¢m inn y dam d 3 S g e 8 e e Q._ ® O A O N u c~ I+ Y 1 lf~ N V N in ~ ~ n m Q F 0 0 88 tN~y ~ p C o ~T ~ p O ? 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Y C 0 F IL C 7 m c K P~ t yc Y O 6 R O V p LL W O® p U d m E A~ L" A m o: ~ ~ € s 'v LL m F U (0'1 !~ e m ~ av 8 t C 8858888&8 CAMtC ~f7NtCNCC N mo <00 ' M N m M W O ~- ( o rn ~ v n 888$g$ ~fi O Cif r 6~' M O N O ~- f0 {tl O i ~ vi 8 N i O 88 CC ~M 0 Q N N ui w G t"1 ~$ ti N ", 0 p o O oQ~a~gr~oSo O O O O og oS$ O O o g o o p N O ppp pp O NO YJ8 m 808' O IU N V N 1O~ iD O O ~ Ci ~ p r m O rNNO [DNNO)[~]~ Q~[f L+ f ti N r N O m N N ~~ ~- N N r ~ f V W w c d ~ C C ~ C :~ p W d o C ~ ~ m m o _ z" o w ~ c^ ~ d n d Z u ~ ° ~ W W . c `o % o N A E '~ a 2 C 0 S 6 IC ~ ~ v ~ ~ m~ C 11 m e1 tl a C ~ O d~ A N C~ W~ l C @ ~ti d p O ~ a L i E o ~~ a s °` a o c g c m c 5~ c p_ a 4 t~ p g 5 E o o a E a Q Np W U U O W W f~ ~ 6 6 K N M f F F a~ ?i' a a 3 r E~ ~n~r~ z4 ~ Zap Other Youth ilRemhers Served Totai: 2004 127 723 850 2005 220 443 663 2006 361 662 1023 2007 308 466 774 ~~', Teen Center I 800. 700 i 800 500 ~ $Members 400 . , ~•-®-~ Other Youth Servetl 300 200 " 100 0 . 2004 2005 2006 2007 ~`~r~~ ~aa~ ~ 2aa~ Weight Room Court 1 Court 2 Court 3 Gym Tatak 2004 5,803 1,947 2,636 4,315 30,730 45,431 2005 7,328 2,547 4,220 4,963 44,626 63,684 2006 10,025 3,387 5,540 6,343 45,130 70,425 ZUU! 11,888 J,4fl U,SUL J`J8 48,!43 /V,70V -I 2004 - 2006 Average FaciUty Visits 14% 4°!° 6°/° ^ Waight Room ®Court 1 ®Court 2 6°!0 ~Court3 88°I° ®Gym ~ 4 Or'O NO~m ~^ - On d`O V ON OOOJS~SS V OO 90fl~On Ned NO PM o V m~~~~' N~ ~ W ~ ~ ONO t ~; - n f~J OJ fV Mo tnN (V (O M N O ~ ~ itl Y'1 if! 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OI O M ~~ ""~ u a U ~ ~ ~ i ~ ~ ~ ~ ar e CS N `- 67 N Q o o r+ U U U U Suggested by: Administration CITY OF KENFaI OI2DINAN~E NtT. 2303-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ENACTING KMC 21.05.085 ESTABLISHING A FUEL FLOWAGE FEE OF THREE CENTS ($0.03) PER GALLON OF FUEL DELIVERED AT THE KENAI MUNICIPAL AIRPORT. WHEREAS, the City of Kenai is the owner and operator of the Kenai Municipal Airport; and, WHEREAS, the Kenai Municipal Airport has been operating with a large deficit consisting of: -$871,968 in Fiscal Year 2004; -$727,730 in Fiscal Year 2005; - $685,702 in Fiscal Year 2006; and -$623,237 in Fiscal Year 2007; and, WHEREAS, Federal AEriation Ad_minis*xation policies and grant assurances require the Kenai Municipal Airport be self-sustaining fmancially through its rate and fee structure; and, GZ~IIEREAS, such large operating losses cannot be sustained indefinitely by the airport budget reserves; and, WHEREAS, fuel flowage fees are a nationally accepted standard method of raising revenue for the operation and maintenance of airports; and, WHEREAS, the revenue raised from the fuel flowage fee will only be used for the operation, maintenance and improvement of the Kenai Municipal Airport. NOW, THEREFORE, BE Ifi ORDAINED BY THE COUNCIL OF THE CITY OF KENAi, ALASKA, that KMC 21.05.085 is enacted as follows: 21.05.085 Eisrport Fuel FYawxee Fee (a) Any person Firm ar comoration who delivers aviation gasoline motor vehicle Qasoline diesel fuel kerosene aviation iet fuel or like substance (hereafter (b) On or before the fifteenth (15th1 day of each month, each uerson, firm, ar corporation delivering fuel as designated in this section shall deliver to the City amount due the City of Kenai under this section. and remit the statement with 13 Ordinance No. 2303-2008 Page 2 of 2 (c) Ant person firm or cornoration deliverine fuel to the Kenai Municipal Airport shall furnish within ten f 101 days of request by the Kenai Airnort Manaeer all delivery tickets purchase invoices or other records necessary to conduct any (d) The funds derived from fuel tlowaae tees shall be utuizea sotety for me maintenance operation and improvement of the Kenai Municipal Airport. PASSED BY. THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May, 2008. PAT PORTER, MAYOR ATTESfi: Cazo2 L. Freas, City Glerk Introduced: May 7, 2008 Adopted: May 20, 2008 Effective: July 1, 2008 14 ~~f _ _ . ~_ tlrecityaf KENA~ASNA "I/illa9e with a Fast, Gc~ ~vit~t a FutuYe„ 210 Fidalgo Avenue, Kenai, A{aska 99611-7794 ~~~„ Telephone:907-283-7535/FAX:907-283-3014 1~ ~{ 1942 MEMO: TO: City Council /~~J FROM: Rick Koch Iu~ - QATE: May 13, 2008 SUBJECT: Ordinance 2303-2008 -Fuel Flowage Fee The purpose ofthis correspondence is to recommend Council approval of the above referenced orduiance. Establishing a three cents par gallon fuel flowage fee is estimated to produce revenues to the Kenai Mwzicipal Airport of approximately $ 65,000 per year. Fuei flowage fees are common at most aiipoxts of tha class of our airport. Beiow are the fuei flowage 'fees charged ai otner sirn.iiar airports: Airport Fuel Flowage Fee pe~allon. Ted Steven Anchorage hlt'1 Airport $ 0.027 Fairbanks Int'1 Airport $ 0.030 Juneau Int'1 Airport $ 0.130 The Airport Commission considered this ordinance. Only foie Cormnission Members were in attendance at the meeting. The motion to accept the administrations recommendation received three votes in the affinnative, and ana vote in the negative. The motion failed as a result of not having the support of the maj ority of the seven member commission. Thank you for your attention in this Matter. 15 305 N. WII.f..GiW ST.$U67E 206 KHdNe A1.A~SA 99019 9x7.28.°,-7551 FpX 907,ffi33T37 To: Rick R. Koch -City Manager From: Mary L. Bondurant -Airport Manag Date: May 11, 2008 Subject: Ordinance 2303-2008 -Fuel Flowage Fee The above ordinance establishing a fuel flowage fee at the Kenai Municipal Airport was discussed at the May 8, 2008 Airport Commission meeting. The four {4) Commission members in attendance discussed tiNhether to recommend Cauncii's passage of vrdinance 2303-2v08. A motion was made "to accepi Administraiioris recommendation to adopt Qrdinance 2303-2008." The vote was three (3) yes and one (1) no. The motion failed. www.ci.kenai,ak.us. 16 un®cipal Airport Suggested by: Planning 8s Zoning Commission CITX OF KENAI f7RDINP:IVCE IdO. 2304-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE OFFICIAL KENAI ZONING MAP BY REZONING APPROXIMATELY SIX (6] ACRES FROM SUBURBAN RESIDENTLAL, CONSERVATION, AND RURAL RESIDENTIAL TO RURAL RESIDENTIAL. WHEREAS, the owner of this property initiated a request to rezone the property; and, WHEREAS, the property is currently zoned Suburban Residential, Conservation and Rural Residential; and, WHEREAS, the Zoning Code, identifies the Suburban Residential zone as, "intended to provide for medium density residential development in areas which will be provided with common utility systems;" and, WHEREAS, the Zoning Code, identifies the Conservation zone as, "intended to apply to areas which should be preserved primarily as open areas and as watersheds and wildlife reserves." "It is intended that this zone shall apply mainly to publicly owned land"; and; WHEREAS, the Zoning Cade, identifies the Rural Residential zone as, "intended to provide for low density residential development in outlying and rural areas in a form which creates a stable and attractive residential environment"; and, WHEREAS, the reauest is to rezone the parcel to Rural Residential; and, WHEREAS, the 2003 City of Kenai Comprehensive Plan idenrifies the parcel as Conservation and the Plan defines the district as, "The Conservation district applies to public Iands whose primary use is open space, recreation, fish and wildlife habitat, drainage ways, floodplain, and wetlands. Some public improvements may be appropriate within appropriate design guidelines." The Ptan defines Rural Residential as, "The Rural Residential district includes areas that, due to location or site conditions, are best suited for large-lot single-family residential development. Homes in this district typically rely on individual on-site water supply and wastewater disposal systems"; and, WHEREAS, the request is to rezone the parcel to Rural Residential appears to meet the intent of the zoning ordinance and the Comprehensive Plan; and, WHEREAS, the rezone u211 elixninate a split-zone situation; and, WHEREAS, the Planning and Zoning Commission held a public hearing on April 23, 2008 and voted unanimously to recommend the property be rezoned; and, ~7 Ordinance No. 2304-2008 Page 2 of 2 WHEREAS, the area to be rezoned is shown on Attachment A; and, WHEREAS, it is in the best interest of the City of Kenai to rezone the area shown an Attachment A to the RuraS Residential zone (RR). NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the offzcial Kenai Zoning Map is amended as shown. on Attachment A. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May, 2008. PAT PORTER, MAY"Oit ATTEST: Carol L. Freas, City Clerk Introduced: May 7,2008 Adopted: May 20, 2008 Effective: June 20, 2008 18 ,,I ® attachment "P." PrO~3OSG-'CI {~eZOll~ Ordinance No. 2304-2008 19 CITX OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION NO. PZOS-I4 REZONE PERMIT A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI RECOMMENDING APPROVAL TO THE KENAI CITY COUNCIL OF THE REQUESTED REZONING SUBMITTED BY NAME: Rick Koch ADDRESS: 1314 4`" Avenue Kenai. Alaska 99611 LEGAL: Tract C Central View Subdivision PARCEL #: 04401063 WT-IEREAS, the Commission finds the following: 1. The subject property is currently zoned Suburban ResidentiaUConservation/Rural Residential 2. Ths present Land use plan designation is Conservation 3. The proposed zoning district is Rural Residential 4. An appropriate public hearing as required was conducted Anril 23. 2008 5. That the following additional facts have been found to exist: 6. Applicant must comply with all Federal, State, and Local regulations. NOW, THEREFORE BE IT RESOLVED, by the Planning and Zoning Commission of the City of Kenai that the petitioned REZONING of Tract C Central View Subdivision is hereby recommended to the Kenai City Council. PASSED BY TI3E PLANNING AN13 ZONING COMMISSION OF THE CITY OF KENAI, ALASKA, APRIL. 23, 2008. E ~r ~ 1 CHAIRPERSO ~' tdsr~i/4`~ F ~~. ~ r S ATTEST ~~~ZE,/! ~.,iI:L. ~ ~~~7 20 Suggested by: Administration CYTY ®F KENAI ORDINANCE N0. 2305-8008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $35,000 IN THE AIRPORT SPECIAL REVENUE FUND AND THE AIRPORT STORAGE BUILDING CAPITAL PROJECT FUND FOR BID AND CONSTRUCTION PHASE ENGINEERING. irVHEREAS, the Federal Aviation Administration has indicated their intent to pravide a grant for a urea storage building at the Airport; and, WHEREAS, initial design work is done; and, WHEREAS, the project must be bid prior to the Federal Aviation Administration making the grant offer; and, WHEREAS, the engineering budget needs to be increased for the bidding and construction phases of the project; and, WHEREAS, funds are available in the fund balance of the Airport Special Revenue fund; and, WHEREAS, these expenditures are grant eligible and will be reimbursed if the Federal Aviation Administration offers a grant. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Airport Special Revenue Fund Increase Estimated Revenues: Appropriation of Fund Balance $35,000 Increase Appropriations: Transfers to Capital Project Fund $35,000 Airoort Staraee Buildings Capital Proiect Fund .Increase Estimated Revenues: Transfers from Special Revenue Fund $35,000 Increase Appropriations: Engineering $35,000 21 Ordinance No. 2305-2008 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA., this 2T5S day of May, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: Adopted: Effeetivc: Approved by Finance: °~ {04/28/2607) hl May 7, 2008 May 21, 2008 May 21, 2008 22 Suggested by: Administration CITY OF KENAI ORDINANCE N0. 2306-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $70,000 IN THE DOCK IMPROVEMENT CAPITAL PROJECT FUND FOR CULVERT REPLACEMENT AND PAVING WHEREAS, the City of Kenai received a $70,000 grant from the State of Alaska; and, WHEREAS, the administration recommends the funds be used to replace the Dock Road culvert and to use remaining funds for paving in the dock area. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Dock Imt~rovement Capital Proiect Fund Increase Estimated Revenues: State Grant $70,000 Increase Appropriations: Construction $70,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21 sc day of May, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Frees, City Clerk Introduced: Adopted: ,~~~~,,,~~yy~~~ Effeclive: Approved by Finance:_d~~_- (04 f 28 / 2007) h1 May 7, 2008 May 21, 2008 May 21, 2008 23 Suggested by: Administration CITY OF ICENAI ORDINANCE NO. 230?-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, TRANSFERRING $71,731 IN THE GENERAL FUND AND IIv'CREASiNG ESTIMATED REVENUES AND APPROPRIATIONS 81' $71,731 IN'fHE VISITORS CENTER HEATING SYSTEM CAPITAL PROJECT FUND TO REPLACE THE VISITORS CENTER HEATING SYSTEM. WHEREAS, the heating system at the Visitors Center heeds to be replaced; and, WHEREAS, the City of Kenai is part of a class action lawsuit that is expected to generate funds to pay Eor a large part of the cost of replacing the heating system; and, WHEREAS, the City of Kenai received approximately $71,731 thus far as partial settlement; and, WHEREAS, Ordinance No. 2270-2007 appropriated this money to the General Fund Buildings Department Repair and Maintenance account; and, WHEREAS, the project will not be completed this fiscal year, therefore a capita] project fund should be created to account for the project; and, WHEREAS, funds are available for transfer in the General Fund Building Department Repair and Maintenance account. NGR/, THEREFORE, i3c ;T ORDAINED BY ~::E COUA1CiL OF THE CrTY OF KEivri, ALASKA that: Section 1: A budget transfer be made in the General Fund as follows: From: Building Department: repairs and maintenance $71,731 To: Transfers to Capital Project Fund $71,731. 25 Ordinance No. 2307-2008 Page 2 of 2 Section 2: Estimated revenues and appropriations be increased as follows: Visitors Center Heating System Capital Proiect Fund Increase Estimated Revenues: Transfers from General Fund $71,'731 Increase Appropriations: Construction $71,731 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 215 day of May, 2oas. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: (lJ'i~LOl2Vli7) Ill Introduced.: Adopted: Effective: May 7, 2008 May 21, 2008 May 21, 2008 26 ~~~~ _. -• t(reci'yof ~E~A~ SKA "I/iC~a~e ~vit~t a Past, Gi~ ~vit~i a Fatr~Ye" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 ~F ~ 1 Telephone: 907-283-7535 /FAX: 907-283-3014 t 1992 MEMO: TO: City Council FROM: Rick Koch DATE: May 1, 2007 SUBJECT: Kenai Visifor Genter Mechanical Upgrades The purpose of this correspondence is to provide support information for a purchase order in the amount of $ 36,590 for professional design services for the above referenced project. To date the City has received approximately $ 71,000 from the claims administrator from the class action settlement for the failure of Bntran II in slab tubing. We have submitted additional information to the claims administrator with the propose of elevating our claim to a different class within Pne settierrreiit. if we are Stiecess`ul in elevating out chin; to a different class (based on catastrophic ar serious failure of tl.e tubing) we may receive a5 much as $ 400,000 total, including the $ 71,000 we have already received. Ihave spoken with and conducted a site visit with RSA Engineering, bte to discuss the scope of the project, and to request a proposal to accomplish the design. phase services. That proposal is attached. The preliminary scope includes the following: 1. Abandonment of the existing in-floor heating system. 2. Installation ofadditional re-heat coils in the primary ventilafson ducts to provide heating to the display areas of the building (durhig cold weather this is being accomplished presently, to a lesser degree). 3: Installation of hydronse fintubeJradiant panels in the offioes, conference room. anal. restrooms. 4. hnstallation of ovsxhead hydronic unit heaters in the kitchen and storage rooms. 27 5. Replacement of the iaa slab heated sidewalk system. 6. Replacement of pneumatic control system with eleciYOnic control system. 7. Replacement of boilers. 8. Replacement of all building carpet. 9. Re-paint all interior building spaces. Administration. vrill coordinate scheduling with. the S{enai Convcn6on & Visitors Bureau, and include them in the plus review process. Thank you for your attention in this matter, if you 'have any questions please contact me at your convenience. "~ 28 ~~ ` Designing in Alaska fvr Over 20 Yeass ;... a s... ~ .. _ ; Engineering, tr4/V. IJtccnanical&'ciec'aical Engineers April 24, 2008 The Gity of Kenai 210 Fidalgo Avenue Kenai, AK 99611-7794 ATTENTION: .Rick R. Koch City Manager Dear Rick, REFERENCE: Kenai Visitor Center Mechanical Upgrades RSA Engineering is pleased to offer a fee proposal for architectural, civil, mechanicat, and electrical engineering services for the referenced project. Our understanding of the scope of work required for this project is based upon fhe following assumptions: Architectural • Autocad floor plan drawing for existing building. • Architectural work in support of the heating upgrades. • Building wide painting. • Building wide carpet replacement. Civil • Sidewalk, front entry stairs and Handicap access ramp, demolition and renovation as required for replacement of snowmelt tubing and to acid additional snowmelt for approx 75 feet of additional snowmelt not currently equipped with snowmelt. Mechanical • Five (5} reheat coils will be installed in the primary ventilation ducts to provide heating for the building. • Perimeter heating (fintube/radiant panels) will be added in the office, confierence rooms and restrooms only. • Hydronic unit heaters will be added in the kitchen and storage rooms. • The existing infloor heating will be abandoned in place. Existing tubing will be cut and capped at the existing floor penetration locations. • Front entry snowmelt system will be replaced. Provide need snowmelt for approx 75' of sidewalk. Sidewalk stairway and ramp will be demolished and restored as necessary to accommodate new tubing installation. 'HOtYAGE --' wASI LLA 2522 Arctic Boulevard, Sui?e 20C Anchorage, AK 99503-2516 p 907276.0521 f 907.276.1751 191 E Swanson Avenue, Suite iC1 Wasilla, AK 99654 ' p907,35?.1521 f9G7.357.1751 www.rsa-ak.com 29 April 24, 2008 Page 2 Pneumatic control system will be replaced with an electronic control system building wide. • Replace boilers, modify and upgrade piping as necessary. Electrical: • Electrical design services wilt include providing power for the new mechanical equipment. General: • A 65% and 95% submittal will be provided for review and comment by the City of Kenai, Following 95% review construction documents will be provided to the City of Kenai. • A 65% cost estimate will be provided by Estimations to allow the project scope to be adjusted as necessary to meet the project budget. • We will provide you with one full sized and ane half sized set of drawings. Exclusions: • Hazardous materia! abatement design (Asbestos, lead, etc.) has not been included in our fee at this time. • Civil engineer site visits, geotechnical investigation or surveying have not been included in this fee. We have assumed that the existing substrata is in fair condition and the existing fill material below the slabs is adequate to support new concrete work. The Civil design will be based on elevations as stated on the 1991 as-built drawings, • Bid phase and construction administration services will be provided on a Time and Materials basis based on our current billing rates. • Permitting with the State Fire Marshall and associated plan review fees are not included. Schedule & Budget We anticipate delivering the 65% submittal on June 13`". The city of Kenai will have one week for review. 95% submittal would be delivered on the Jufy 11~r'. The city of Kenai will again have one week for review. Final drawings will be delivered on July 2$th. 30 April 24, 2dd8 Page 3 RSA proposes the following lump sum fees for this project: Mechanical Electrical Architect 65% Design $ 7,50D $ 3,360 $ 8,030 95% Design $ 3,620 $ 1,680 $ 4,840 Construction $ 1,560 $ 1,100 $ 2,29D Documents GRAND TdTAL $ 36,590 Cost Estimate $ 2,610 Please review and advise if this proposal is acceptable by signing below and returning a copy to our office as our notice to proceed. We look forward to working with you on this project. Sincerely, Mark R. Frischkorn, P.E. Vice President mrflbppthc D8-0357IP08-111 Accepted for City of Kenai 31 Suggested by: Administration CITY 43F KENAL OL2DLNAPICE PIC. 2308-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $40,000 IN THE GENERAL FUND DOCK DEPARTMENT FOR FUEL. WHEREAS, fuel sales in July through September 200? exceeded expectations and depleted the Dock Department budget for fuel; and, WHEREAS, the full inventory at the dock is iess than the amount needed for the rest of the fiscal year; and, WHEREAS, it is in the best interest of the City of Kenai to fill the two 7,500 gallon tanks at the dock prior to the start of the new season; and, WHEREAS, the fuel needed wilt cost approxi.-nately $40,000; and, WHEREAS, funds are available in the fund balance of the General Fund. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Appropriation of Fund Balance $46,000 Increase Appropriations: Dock -Operating Supplies $40,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 21st day of May, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: May 7, 200$ Adopted: May 21, 2008 ^ Effective: May 21, 200$ Approved by Finanee:~ (04/30/2008) hl 33 Suggested by: Administration CITY OF KENAI 012DINANCE NO. 2309-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY X11,457 IN THE GENERAL FUND FOR PROFESSIONAL SERVICES AT THE MULTI-PURPOSE FACILITY. WHEREAS, the Mnlti-Purpose Facility was used for a Skating Clinic during April 2008; and, WHEREAS, total fee revenue was $15,538; anal., WHEREAS, costs incurred for the clinic for ice maintenance and other professional fees were $11,457; and, WHEREAS, additional utilities attributed to the clinic are not are expected to exceed the balance of revenues; and, WHEREAS, the Recreation Department Professional Services budget needs to he increased to pay the professional services costs. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASIiq that estimated revenues and appropriations be increased as follows: General Fund H~crease Estimated Revenues: Recreation -Multi-Purpose Facility Use $11.,457 Increase Appropriations: Recreation -Professional Services $11,457 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2151 day of May, 2008. PA'f PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: (04/30/2008) hl Introduced: Adopted: Effective: May 7, 2008 May 21, 2008 May 21, 2008 35 Suggested by: City Manager CITY f)F KEDI'.4I axr~txr~uc~ rro. z31o-zoos AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 5.35.040 BY INCREASING THE MINIMUM DISTANCE BETWEEN OIL AND GAS WELL DRILLING LOCATIONS AND RESIDENTIAL OR COMMERCIAL BUILDINGS FROM 200 TO 600 FEET UNLESS THE WRIT'T'EN PERMISSION OF THE OWNER IS OBTAINED. WHEREAS, KMC 5.35.040 currently states that no oil or gas well may be drilled closer than 200 feet from a residentiat or commercial building without obtaining the written permission of the owner thereof; and, WHEREAS, modern driIling technology makes it much easier for oil and gas wells to be drilled from distances greater tl'iari 200 feet from a residential cr cemmercial bni?ding; and, WHEREAS, increasing the minimum distance for oil and gas drilling without the consent of the oumer of a residential or commercial building from 200 to 600 feet will lessen the potential negative unpact of drilling to such property while not unduly burdening or restricting oil and gas drilling; and, WHEREAS, this amendment will protect the health; safety and general welfare of the citizens of the City of Kenai by creating reasonable separation between conflicling uses yet also accommodate the rights of surface and subsurface users of real property located wsthv~i *u.e C'ty of Keno:, and, WHEREAS, it is in the best interest of the City of Kenai and its citizens to amend KMC 5.35.040 by increasing such distance from 200 feet to 600 feet. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 5.35.040 is hereby amended as follows: 5.35.040 Well %oaation. No well shall be drilled and no permit shall be issued for any well to be drilled at any location which is nearer than [200] 600 feet of any residence or commercial building without the applicant having first secured the written permission of the owner or owners thereof. 37 Ordinance No. 2310-2008 Page 2 of 2 PASSED BY THE COUNCIL OF THE CI T Y OF KENAi, ALASKA, this 20th day of May, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: May 7, 2008 Adopted: May 20, 2008 Effective: June 20, 2008 38 Suggested by: City Manager CITY OF KENAI RESOLUTION NO. 2008-26 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE PURCHASE OF 12.5 ACRES OF PROPERTY DESCRIBED AS TRACT Al, BIRCH FIELDS SUBDIVISION, KENAI WELL ADDITION, THIRD RECORDING DISTRICT, KENAI, ALASKA FROM THE KENAI PENINSULA BOROUGH, FOR $1.00, FOR A WELL STTE AND OTHER PUBLSC FACILITIES. WHEREAS, KMC 22.05.135 states that the City may purchase real property after authorization by the City Council; and, WHEREAS, the property described above is the site of Well House No. 3; and, WHEREAS, the Kenai Peninsula Borough ceased the property to City of Kenai, for a 50-year term ending in the year 2046, at an annual rent of $1.00; and, 4I,'HEREAS, the Kenai Peninsuia Borough has agreed tc sell the property to the City of Kenai for $1.00; and, WHEREAS, KMC 22.05.135{a) states the following: The city, by authorization of the city council, expressed in a resolution for such purpose, may lease, purchase or acquire an interest in real property needed for a public use on such terms and conditions as the council shall determine, but no purchase shall be made until a qualified appraiser has appraised the property and given the council an independent opinion as to the full and true value thereof; and WHEREAS, the market value (*~ 117,000) was reported in the Restricted Use Appraisal Report produced by Julie A. Derry of Derry & Associates, and dated February 2, 2008. NOW, THEREFORE, BE TT RESOLVED BY THE COUNCIL OF THE CTTY OF KENAI, ALASKA, that the Council of the City of Kenai authorized the City. of Kenai to purchase for $L06 the property described as Tract Al, Birch Fields Subdivision, Kenai Well Addition, Third Recording District, Kenai, Alaska, for a well site and other public utilities. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Frees, City Clerk Approved by Finance: {s ~ I a~ os~ kh 39 ,~,~~ r~ ~ ~ PEanning department • Land Management division ,,, 144 North Binkley Street • Soldotna, AlasKa 99669-7520 ~;$ ~ ~-~~ PHt7Nw: (907j 774-2240 • FAX.' (907 774-2378 r ~ Tolf-free within [!ae Borough: 7-800-478-4491, Ext. 2200 ~"`~` ~~ www.borouph.kenai.ak.us 1 ~yh ` - ~'°"*~ ""~~ JbHN J. WtlLLIAMS l3OAOUGH MAYCtR October 15, 2007 Mr. Rick Koch Gity of Kenai 210 Fidalgo Ave Kenai, AK 99611 ~~ RE: Notice of Patent Receipt- Purchase Option under Lease KPBL#96-1001-00 Dear Mr. Kach: The Kenai Peninsula Borough as Lessor under that certain lease recorded in Book 497, Page 938, Kenai Recording District hereby provides notice to the City of Kenai, Lessee under said lease, that patent title to the leased property has now been received by the -Kenai Peninsula Borough, recorded as Serial #2007-011068-0 Kenai Recording District. Per the (ease, an option to purchase the leased property commences as of the date of this notice. Said option, should it not be exercised by the City of Kenai, terminates one vear from the date of this notice. Tc exercise this option in accordance with Section 3 of the lease, the City of Kenai must deliver written notice of exercise to the Kenai Peninsula Borough. Please find enclosed a copy of the lease and KPB Ordinance 96-32, which contain the terms and conditions of the City of Kenai's option to purchase. If you have any questions, please contact Marcus Mueller, Land Management Officer at 714.2204. S~ely, , ~~ John illiams c~~ ~~'r K ai Peninsula Borough Mayor 41 I aS I C ~ a ~ ., ~ti _1 ~ ~ ~ .~ ~ a ~ r LL r r~ie ' ~ ~' ea y.4y<. W ( ~K~. eg ~ ~ Sfi e E v1 ~ r "~` € ~ ~'i e :~ ~, i 1 l~ n~q~~ ~ ~ °sEff yr c pE ~ a+q~{ ~~ } E~ ~~p~ s 7 r ~ Q yrFg ~ ~ FE ~ f~ Q ? _~ ce ~ 6 p, xf `^e a ~.~~, of ny, zr z r a ~`r b ~~ @ ~ ~u ° ~ a w °~~ ~~~ ~~ 71 ~ ~€ ~ Y ~ a~ v y y ~• ~ 8 ~ `~~ ~ v u~~4 ~. m~ ~3 aNp3' L is n ~y ~~~ <I " ~~S s Ek ^~ ~' p.A ~ FI S€y'Yi 3~ K i( kF'l "?x~ @~4i c ~ i e°~. u.l €s ~ ~ C € F. ~ N si pp ~+€Y z E [ n ,~~ j7 , rz ~fr.~ ~ „~K;! ~~~ a~ ~~g ~$~ x 5--- i. ~~.~, °AaAno~.- ~~" ~~ ~~ s Q,, - ~>~ ~.. E%k" & ~ ~ V ~ / >ej'S' ~b ~ zf ~a ~ ~~ ~~~"f °ia l r~b~ ~_ / s~ ~, ~/ 1 i ~ ~ ~ r i w: ., ~, ~ F-- ---~-- ---I 1 / v'''R ~ ~~8 Ro 95 y, ~ i. I - r' ~ > q. R.. ~.:. F~ xek f ~,,,~y `ry 'JOE ~ j ~ rv ~ R .~' e es s x C~ i.N eE F~ Ix ~~~ r° r~: ~a t°i `~^` d~ .e: i.\g)~ ~ I~~ ~ ,ie ~ ~ ~_ -/ ` ~ q t uee; ,. 6 y ve c ~~ 3t °~PC 5° 5a1 `~ r _ , ~ ~ $ _ 3 c ~ ,. e .. w w~~ ~ ~Q [ ~~~. f~° ,.. lnuodwxd by: Mayor as she request of the City of Kenai Date: 7/OAJ46 Hearing: 8!06/96 Action: Enacted voce: Unanimous Y{ENhI PENfR'SF3i,~4 $t3ROiJC<Ii ORIIINANCE 96-32 A:"q ORI9INAPdCE AIJ'I'HORI~TNC A LEASE YdITIi AN OPTION'FO E°Ul$C~.4SE T'® TflF. CITY OF IaENAI FC3R APPi2OXIR3ATELI' 12.50 ~.CRES OF LARID Ff1R .~ WELL SITE Ai~TD OTHER PUBLIC 1E"AC1L[T'IES ~'~EREAS, the Borough has a ftn2i decision from the State of f~laska foz certain land which the City of Kenai has detormincd suitable fur a well site and artier public facilities; and ivHEREAS, the Borough Laud, containing approximately 12.50 acres, proposed for evnveyance to the City of Kenai for a well sste and other public facilities has been alassif~cd Civvcznment; and WHEREAS, the Ciry of Kenai is a local government within the Kenai Peninsula finraugh providing services to Borough residents; and 'VY'FIEREAS, the land requested by the City of Kenai should be conveyed ai other than Pair market value to enable the City of Kenai tv hatter serve Borough residents; NtIS~, TIIFIZT~+.FO72E, BE IT CIIE.IbA.I2oTE~l3 13~ 'I'tiE tLS51S1VV~~Y.,Y OF '1~~' IZEIVAI PEFdINS tJLA SOROi3GiI: SECTION 1. The mayor is authorized to deposit into ttse land bank the parcel generaIly described as the S%:S W1l,NW3/, Section 36, T6ht, Rl l W, S.h2., Alas. excepting Beaver Creek Alaska Subdivision and the Kenai Spur Highway right-af--way. SECTION 2. The assembly finds that leasing this land tv the City of Kenai, with an option to purchase, is in the best interests of the public and the $otrough. 'This fording is based on: a. The City of Kenai is a !veal gaverament wittun the Kenai Peninsula Borough providing services to Borough residents. b. "the land olassi~ed government will be used. foz a wail site and fire station, which arc essential services. SECTION 3. Based on the foregoing the mayor is hezeby authorized, pursuant to KPS Code of 'Kcasi PeninsutaFtorough, Alaska Ordinance 4632 43 Paga b aE2 Ordinances 17.20.100(1), to negotiate and enter into a Lease, with an option to purchase the fee estate which will be conveyed by quit claim deed, tlae above described pazcel at other 4ian fair market value with the City of Kenai, with the additional condition that the sale agreement provide that the property be used solely for governmental purposes. SEC'T'ION ~4. The negotiated lease shall contain the provision that the lease payment sball be ONE DOLLAR. ($1.00) par year. The option to purchase shall set the sale price at ONE DOLLAR ($1.00} and shall be exercisable within one yeaz of delivery of notice to the City of Kenai that the borough has received patent to the land described in Section 1. SECTION 5. Pursuant to KPR 17.10.234 the assembly authorizes an exception to KPII I7.10.130(D}which requires the conveyance instrument to contain resu~ictions that confine the use of the land to the classi£zcation aad pro3ubit use of the laud for any other purpose. This exception is based an: a} The fact that the City of Kenai has existing zoning regulations is a special circumstance that justifies this exception. b} This exccplian is necessary to facilitate the City of Kenai's management of the property. c) Granting this exception will not be detrimental to the public welfare or injurious to other property in the azea. STC'rION 6. This ordinance sbaU take effect immediately upon enaotment ATTEST: Gaye J. Va glzan, $orottgh Clerk ardlnance su-32 Kenai PeninsulaBomngh, Alaska rage z o: 2 44 Suggested by: Administration CITI' of KEN'AI soruTaol~ No, Zoos-27 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING THE FORM FOR THE AIRLINE OPERATING AGREEMENT AND TERMINAL AREA LEASE AND AUTHORiZiNG THE CITY ENTER INTO SUCH AGREEMENTS WITH ERA AVIATION AND GRANT AVIATION. WHEREAS, the City of Kenai is the owner and operator of the Kenai Municipal Airport; and, WHEREAS, the City of Kenai has undergone a supplemental planning assessment in order to update the airport operations including: planning, finances, accounting, management, leasing; and, WHEREAS, one of the recommendations of the supplemental planning assessment was to update the City's airline operating agreement and terminal lease; and, WHEREAS, the administration working with an airport consultant has developed a new airline operating agreement and terminal area lease; and, WHEREAS, the new airline operating agreement and terminal area lease will modernize airport airline terminal leasing procedures and policies and increase airport operating revenue; and, WHEREAS, the administration has consulted with the two regularly scheduled passenger airlines currently operating at the Kenai Municipal Airport regarding the agreement; anal; WHEREAS, non-signatory airlines operating out of the passenger building will pay an additional 30% for landing fees than signatory airlines; and, WHEREAS, it is in the best interest of the City of Kena to authorized the City Manager to enter into such agreements with ERA Aviation and Grant Aviation on behalf of the City. NOW, THEREFORE; BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that: 1) the Kenai City Council approves the Airline Operating Agreement and Terminal Area Lease form as shown in Exhibit l; and 2) the Kenai City Manager is authorized to enter into such agreements with ERA Aviation and Grant Aviation. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this twentieth day of May, 2008, PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk 46 ,~ ~~~, \\ I ttre city of // "I/illa9e with a Past, Git~ r~it~t a F~tr~r°e" 210 Fidaigo Avenue, Kenai, Alaska 99611-7794 ~ It i Telephone: 907-283-7535 /FAX: 907-283-3014 1942 MEMO: ,p TO: City Council l}~i, FROM: Rick Koch ~" DATE: May 13, 2008 SUBJECT: Resolution 2008-27, Airfine Operating Agreement and Terminal Lease The purpose of this correspondence is to recommend Council approval of the above referenced resolution.. The airlines have bean operating at the Kenai Municipal Airport Terminal on a month-to- monthbasis under the terms of the expired agreement since N1aylSune of 2006. 1 }fie erfeet of thP` rtetSi ~Y'teYat't YIO R!]TPPM PYrt and tvrR ~?~i.nal IP?..c P. V1111 ~CUtav~1Z.S1,h ~'t'1P t~11:~~•v~T. {J~ p. ..b ..b........... __o_ 1. Term of lease. The new lease term will. he five years. 2. Landing Fees. Landing fees will increase from $ 0.50 per 1,000 ibs to $ 1.00 per 1,0001bs, resulfing in an increase in revenue to the airport of approxunately $ 71,000 per year. 3. Terninal Rent. The fornmla for calculating terminal rent far exclusive use space and shared space has been changed. The net effect is to increase revenues to the airport by approximately $ 52,000 per year. 4. Escalation. The agreement provides for an escalator of 10% per year over fhe term of the agreement. The escalation provision will provide approximately $ 120,000 total additional revenues during years two through five of the lease. Te terms of the agreement are very fair to the airlines. Comparable market rates and fees remain. higher than the rates and fees included in the new agreements, I have discussed the agreement with both ERA Aviation and Graut Aviation. Both have told me, that while no company is pleased with increased expenses, the terms are fair and reasonable. I. 48 expect to receive executed. copies of the agreements from both Era Aviation and Grant Aviation in the next ] 0-14 days. These increased revenues to the Kenai Municipal Airport are ati integral component of the administration's efforts to make the airport self-sustaining. Thatlk you for your attention in this matter. 49 Resolution [Va. 2008-27 Exhibit "A'° CITE t7I+ I~LNAI, ALAS KEl`TAI MUNICIPAL AIRP~-12T Airline ®perating Agreement and Terminal Area Lease Apri130, 2008 CITY OR KENAI, ALASKA 51 KENAI MUNICIPAL AIRP®RT AIRLINE OPERATING AGREEMENT AND TERMINAL AREA LEASE Table of Contents ARTICLE 1 DEFINITIONS ................................. Section 1.1Definitions ......................................... Section 1.2Cross-References ..............:............... Section 1.3Constnaction of Certain Words......... Paee ............................................................. 2 ..............................................................2 ..............................................................5 ..............................................................5 ARTICLE 2 TERM .............................................. Section 2.ITerm6 Section 2.2Holding Over ................................... ........................................................E .........................................................6 ARTICLE 3 RIGHTS AND PRLVILEGES ...............................................................................: 7 Section 3.IUse of the Airport ....................................................................................................7 Section 3.ZSpecific Rights of Airline at the Airport ..................................................................7 Section 3.3Lirnitations on Use by Airfine ................................................................................1.0 ARTICLE 4 LEASED PREMISES ...........................................................................................12 Section 4.1Terminal Area Leased Space .................................................................................12 Se^Ci~on 4 LSurerder of the Prem;ses i2 Section 4.3Accommodation of New andlor Existing Airlines .................................................13 Section 4.4Rernadeling and. New Construction .......................................................................14 Section 4.SAccess ....................................................................................................................14 CITY OF KENAI, ALASKA KENAI MUNICIPAL AII2PORT AIRLINE OPERATING AGREEMENT AND TERMINAL AREA LEASE Table of Contents (Cont'd.) Airline Operating Agreement and Terminal Area Lease Page LESSOR _ LESSF,E Page ii of v 52 ARTICLE 5 REIv'TALS, FEES AND CHARGES ................................................................. ...16 Section S.1Consideration and Rate-Setting Basis ................................................................. ...16 Section 5.2Landing Fee Charges .......................................................................................... ...16 Section 5.3Rentals for Exclusive Lase Space and Joint Use Space ..............................._...... ...16 Section 5.4Rentals for Terminal Apron Aircraft Parking and GSE Space ........................... ...17 Section S.SOther Charges ..................................................................................................... ...17 Section 5.6Partial Month Charges ........................................................................................ ...17 Section 5.7Late Pavments ..................................................................................................... ...18 Sectian 5.80verpayments ..................................................................................................... ...18 Section 5.91nformation to be Supplied by Airfine ................................................................ ...18 Sectian 5.10 Non-Signatory Rates ................................._............................................... ...18 AR'CICLE 6 MAINTENANCB, REPAIR, ALTERATIONS AND IMPROVEMEIv~TS ..... ....19 Section 6.1 Airline's Responsibilities ................................................................................... ....19 Section 6.2City's Responsibiiities ........................................................................................ ..a0 Section 6.3City's Right to Inspect and Make Repairs ......................................................... ....21 Section 6.4Alterations and Improvements ........................................................................... ...:22 ARTICLE 7 DAMAGE OR DESTRUCTION OF PREMISES ............................................ ...?3 Section. 7.1Minor Damage ................................................................................................... ....23 Section 7.2Substantial Damage ........................................................................................... ....23 Section 7.3Total Damage ..................................................................................................... ....23 Section 7.4Scope of Restoration of Premises ...................................................................... ....24 Section 7.5Damage from Airline Negligence or Willfu] Act ..........:................................... ... 25 ARTICLE 8 INDEMNIFICATION,INSURRNCE AND SECURITY ............................... ....26 Section 8.1lndemnification .................................................................................................. ....26 Section. 8.2 Airline Insurance ....................................................................................... ....27 Section 8.3Security for Payment of Airline Rates and Charges ...:...................................... ....28 Airline Operating Agreement and Terminal Area Lease Page iii of v LESSOR __ LESSEE 53 CITY OF KENAI, ALASKA KENAI MUNICIPAL AIRP®RT AIRLINE OPERATING AGREEMENT ANI} TERMINAL AREA LEASE Table of Contents (Conf d.} Paee ARTICLE 9 RULES AND REGULATIONS, COMPLIANCE WITH LAWS, NON-DISCRIMINATION AND AFFIRMATI VE ACTION ............. ..................29 Section 9.1 Rules and Regulations .......................................................................... ..................29 Section 9.2Compliance with Laws ........................................................................ ..................29 Section 9.3NomDiscrimination and. Affirmative Action ....................................... ..................30 ARTICLE 10 DEFAULT AND TERMINATION ...........................................:........ ..................33 Section 10.1 Events ofDe uk ........................................................................ ..................33 Section 10.2 Events Permitting Termination of Agreement by Airline ........... ..................35 Section 10.3 Events Permitting Termination of Agreement by City ............... ..................36 Section 10.4 Possession by City ............:......................................................... ..................37 ARTICLE 11 ASSIGNMENT, SUBLETTING, MERGER AND BANKRUPTCY ..................38 Section 71.1 Assignment and Subletting ......................................................... ..................38 Section 11.2 Non-Waiver of Responsibility .................................................... .................38 Section 71.3 Relinquishment of Spaoe ............................................................ ..................38 Section 11.4 Ground Handling Agreements .................................................... ..................38 Section 1 L5 Bankruotcy .................................................................................. ..................39 Secticn 11 ~ Consent an ARTICLE 12 GENERAL PROVISIONS .................................................................. ..................41 Section 12.1 Successors and Assigns Bound ................................................... ..................41 Section 12.2 Governing Law .......................................................................:.. ...................47 Section 12.3 Severability ................................................................................ ...................41 Section 12.4 Quiet Enjoyenent ........................................................................ ...................41 Section 12.5 Taxes ...................................................................................:...... ...................4t Section 1.2.6 Liens ........................................................................................... ...................42 Section 12.7 Obtaining Federal and State Funds ............................:............... ...................43 Section 12.8 Subordination to Agreements with the U.S. Government ......... ...................43 Section 12.4 Subordination to Bond Ordinances ............................................ ...................43 Section 12.70 Incorporation of Exhibits ........................................................... ...................44 Section 12.1.1 Entire Agreement ....................................................................... ...................44 Airline Operating Agreement LESSOR _ and Terminal Area Lease LESSEE _ Page iv of v 54 CITY flF KENAT, ALASKA KENAI Mi7N'ICIPAL AIRPORT AIRLINE OPERATING AGREEMENT ANIJ TERMINAL AREA LEASE Table of Contents (Cont'd.} Page ARTICLE 12 GENERAL PROVISIONS (Cont'd.) Section 12.12 Non-Waiver of Rights .............................................. .....................................44 Section 12.13 Force Majeure .......................................................... .....................................44 Section 12.1.4 Headings .................................................................. .....................................45 Section 12.15 Nonexclusive Rights ............................................... ......................................45 Section 12.16 Inspection of Books and Records ........................... ......................................45 Section 12.17 Generally Accepted Accounting Principles ............ ......................................45 Section 12,18 Consent Not to be Unreasonably Withheld ............ ......................................46 Section 1.2.19 Authority of Manager ............................................. ......................................46 Section 12.20 Amendments ........................................................... ......................................46 Section 12.21 Attorney Fees .......................................................... ......................................46 Section 12.22 Vending Machines .................................................. ......................................46 Section 12.23 Public Address System ........................................... ......................................4b Section 12.24 Employees of Airiine .............................................. ......................................47 Section 12.25 Removal of Disabled Aircraft ................................. ......................................47 Section 12.26 Licenses. Fees and Permits ............................:........ ......................................47 Section 12.27 National Emergency ................................................ ......................................47 Section I2.28 Time is of the Essence ............................................ ......................................47 Section (2.29 Employee Parking ................................................... ......................................48 Section 12.30 Notlces .................................................................... ......................................48 Section 1.2.31. No More Favorable Terms ...................................... ......................................48 ARTICLE 13 PROVISIONS OF CITY'S DEED .................................. ......................................49 EXHIBITS A AIRLINE PREMI58S -EXCLUSIVE USE SPACE B AIRLINE PREMISES -JOINT USE SPACE C AIRLINE RATE SCHEDULE D AIRLINE AN'D AFFILIATE INSURANCE REQUIREMENTS Airline Operating Agreement LESSOR _ and Terminal Area Lease LESSEE _ Page v of v 55 CITX OF KENAI, ALASKA KENAI MUNICIPAL AIRPORT AIRLINE OPERATING AGREEMENT AND TERMINAL AREA LEASE This Airline Operating Agreement and Terminal Area Lease (the "Agreement") made and entered into this day of , 2008, by and between the City of Kenai, Alaska (the "City"), ahome-rule municipal corporation of the State of Alaska and a corporation organized and existing under the laws of the State of and authorized to do business in the State of Alaska, hereinafter called "Airline". WITNESSETH: WHEREAS, City is owner and operator of Kenai Ntunicipal Airport (the "Airport'') located. in Kenai, Alaska, and has the right to Iease portions of the Airport and to grant operating privileges thereon subject to the terms and condztions hereinafter set forth; and WHEREAS, Airline is a corporation primazily engaged in the business of providing Air Transportation of persons, property, cargo and mail; and WHEREAS, Airline desires to lease certain premises within the Tennine(Building, use certain facilities at the Airport and acquire certain rights and privileges from City in connection with its use of the Airport, and City is willing to lease and grant same to Airline under terms and conditions hereinafter stated; and ~~S~IIEREAS, City and Airline have the power and authority to enter into this agreement; NOW, THEREFORE, for and in consideration of the premises and the mutual covenants and considerations herein contained, City and Airline agree as follows: Airline Operating Agreement and Terminal. Area Lease Page i of 5 i LESSOR LESSEE 57 ARTICLE 1 Di;I'TNITItfNS Section 1.1 Definitions The terms atld phrases defined in this Article 1 for all purposes ofthis Airline Operating Agreement and Terminal Building Lease shall have the fotlowing meanings: 1.I.1 "Air Transportation" shall mean the carriage of persons, property, cargo and/or mail by aircraft. 1.1.2 "Airline Premises" shall mean Airline's leased Exclusive Use Space and Joint Use Space in the terminal building and its leased terminal apron space. 1.1.3 "Airline's Authorized Representative" shall mean such person designated by Airline in writing to the Manager prior to the commencement of the term hereof and from time-to-time during the term hereof setting forth the name, bile and authority of such person. L 1.4 "Airport" shallmean the Kenai M,unicipaI Airport in Kenai, Alaska (a facility of the City of Kenai) as it may hereafter be modified, changed or developed from time-to- time. 1. i.5 "Airport Purpose" shall mean any action or undertaking by City directly relating to the development and preservation of the Airport for air commerce in accordance with. all applicable laws (€ederal, state and Ioca1, statutory, regulatory and decisional) and this Airline Operating Agreement and Terminal Area Lease. 1.1.6 "Airport Revenues" shall mean any income and revenue lawfully derived directly or indirectly by the City from the operation and use of, or otherwise relating to, fhe Airport. The term does net include any grants, appropriations, loans, gigs, taxes or bond proceeds from federal, state or local governments. 1.1.7 "Manager" shall mean the Airport Manager, designated as such by City. The word also means the Acting Airport Manager, if any, of City whenever the Airport Manager is unable to act in such capacity, or the successor of the Airport Manager in functions, if any. Airline ppera6ng Agreement and Terminal Area Lease Page 2 0£ 51 LESSOR _ LESSEE 58 1.1.8 "Exclusive Use Space" shall mean, at any time, the space leased in the passenger terminal building by City to Airline on an exclusive use basis as more fully set forth on Exhibit A, as the same may be amended from time-to-time. 1.1.9 "FAA" shall mean the Federal Aviation Administration of the U.S. Government or any federal agency succeeding to all or part of its jurisdiction. 1.1.10 "Fiscal Xear" shall mean the twelve (12) months commencing on Ju]y La` and ending on June 3054 of any year or such other twelve (12} month period as may be designated by City. l .l.l l "'faint Use Space" shall mean, at any 6me, the premises leased or used jointly in the passenger terminal building by Airline and any other Signatory Airlines, as more particularly sat forth on Exhibit B, as the same may be amended from time-to-time. i .1..12 "Maximum Certificated Gross Take-t}ff Weight" shall mean the maximum take- . off weight certificated by the FAA, in one thousand (1,000} pound units, of each aircraft landed by Airline at the Airport. 1.1.13 "Non-Signatory Airline" shall mean any airline providing scheduled or unscheduled service to the Airport out of the terminal passenger building which is not a Signatory Airline. 1.1..1.4 "Public Area(s)" shall mean at any time those passenger terminal building areas not leased on an exclusive orjoint use basis, or otherwise, to any person, company or corporation. 1.115 "Requesting Airline" shall mean a scheduled airline desiring to provide new or increased commercial Air Transportation service at the Airport, or to provide a change of aircraft for existing ser.'ice for which the scheduled airline does not have appropriate facilities at the Airport. 1,1.16 "Roles and Regulations" shall mean those Lawful, reasonable and non- discriminatory rules, regulations and resolutions promulgated by City {including Airport Minimum Standards for Aeronautical Activities} or operating directives issued by the Manager for the orderly use of the Airport by both the Signatory Airlines and other tenants and users of the Airport as same may be amended, modified or supplemented from time-to-time, but which are not inconsistem with the express terms of this Agreement. Airline Operating Agreement and Terminal Area Lease Page 3 of 51 LESSOR _ LESSEE 59 1.1.17 "Signatory Airline{s)" shall mean those primarily commercial passenger service airlines which provide Air Transportation pursuant to published schedules over specified routes to and from the Airport and which hold the necessary authority from the FAA to provide such transportation and that have executed substantially similar agreements to this Agreement with the City, including term, covering the tease, use and. occupancy of facilities at the Airport. A Signatory Airline or an Affiliate of such airline must lease Exclusive Use Space at the passenger terminal building, subject to the availability of space solely determined at the discretion of the City. Except as otherwise provided herein, no Signatory Airline shall have any right pursuant to this Agreement to object to the City's entry into the Agreement with any other airline. Signatory Airtines shalt also include airlines that do not use terminal building facilities which provide Air Transportation to and from the Airport on an unscheduled, on-call basis and which hold the necessary authority from the FAA to provide such transportation and that have executed substantially similar agreements to this Agreement with the City, including term, covering the use of airfield facilities but not the use and lease of space in the terminal building. 1.1.13 "Affiliate{s) or A'~rliated Airline(s)" shall mean any Air Transportation company that is specifically designated as such by Airline during the Term of this Agreement and is approved by the prior written consent of City which shall not be unreasonably withheld. Airline shall give the City thirty (30) days prior written notice of any change in airlines that Airline chooses to use as an Affit"sate operating at the Airport. During such period oftime that an airline is an Affiliate in accordance with the terms hereof, such Affiliate shall {1) be charged at the same Airport rental rates as Airline without payment of any premiums and (2) participate in any reconciliafion process related to Airport rent provided Airline (a) remains a signatory to this Agreement and {b) agrees and shall be obligated to serve as a financial guarantor for al] rent, activity fees and. any other charges incurred. by all Affiliates of Airline at the Airport. Airline Operating Agreement and Terminal Area Lease Page 4 of 51 LESSOR LESSEE 60 Section 1.2 Cross-References All references to articles, sections and exhibits in this Agreement pertain to material in this Agreement, unless specifically noted otherwise. Section 1..3 Construction of Certain Words Words used in this Agreement may be construed as follows: 13.1 Number -Words used in the singular include the plural and words used in the plural include the singular. 1.3.2 Tense -Words used in the present tense include the future. Airline Operating Agreement and Terminal Area Lease Page 5 of 5 ]. LESSOR _ LESSEE 61 ARTICLE 2 TERM Section 2.1 Term The term of this Agreement (the "Tenn") shall begin on June 1, 2005 ("Commencement Date") and shall terminate in sixty (b0) consecutive months thereafter (except as it may be terminated or extended in accordance with this Agreement), and the rentals, fees and charges shall be effective on Commencement Date, but only in the event that the Airline Premises are then tendered to Airline ready far use and occupancy in accordance with the terms and provisions of this Agreement. Secfron 2.2 Holding Over If Airline remains in possession of the Airline Premises after the expiration of this Agreement without any written renewal thereof such holding over shall not be deemed as a renewal or extension of this Agreement, but shalt create only a tenancy from month to month that may be terminated at any time by City upon thirty (30) days prior written notice. Such holding over shall otherwise be upon the same terms and conditions as set forth in this Agreement, and amendments hereto executed prior to its expiration. City acknowledges and agrees {hat the foregoing sets forth Airline's entire obligation and liability for any holding over. Airline Operating Agreement and Terminal Area Lease Page G of S I LESSOR LESSEE 62 ARTICLE 3 RIGHTS AND PRIVILEGES Section 3.1 Use of the Airport Airline, its employees, passengers, guests, patrons and invitees shall have the right to the use (in common with other duly authorized users) of the Airport and its appurtenances, together with all facilities, improvements, equipment and services that have been or may hereafter be provided for corrunon use at, ar in connection with, the Airport, subject to the Rules and Regulations of City and other applicable laws. Section 3.2 Specific Rights of Airline at the Airport Airline shall have the right, in addition to all rights elsewhere granted in this Agreement, but subject to the Rules and Regulations of City touse the .Airport for the following purposes: 3.2.1 The operation of an Air Transportation business by aircraft for the carriage of persons, praperty, cargo and mail, including all activities reasonably necessary to such operation; 3.2.2 The landing, taking off, flying over, taxiing, pushing, towing, loading, unloading, repairing, maintaining, conditioning, servicing, parking, storing, and. testing of aircraft or other equipment of, or operated by, Airline, or other certif sated Air Transportation companies with which City has an agreement, include"ng the right to provide or handle all or part of the operations or services of such other companies. all of which are subject to City's Rules and Regulations, 3.2.3 The sale of tickets, documentation of shipments, handling of reservations and the loading and unloading of persons, property, cargo vzd mail at the Airport by such motor vehicles or other means of conveyance as Airline may desire to use in the operation of its Air Transportation business, or that of other certificated Air Transportation campanies with which City has an agreement. Any grannd transportation commercial carrier including Airline (except for such ground transportation as Airline may provide or arrange solely for the benefit of its employees) regularly transporting persons or their baggage to and from the Airport shall first secure and thereafter held a valid lease, license or other agreement with City far the right to carry persons or their baggage to and from the Airport and shall pay City such reasonable and non-discriminatory rentals, fees and percentages of the fares of such ground transportation commercial carrier for such right as City may set by agreements, resolutions or Rules and Regulations; A.irlina Operating Agreement and Tenninat Area Lease Page 7 of 51 LESSOR _ LESSEE 63 3.2.4 The ground training at the Airport of persons and testing of equipment, such training and testing to be limited to that incidental to Airline's Air Transportation business at the Airport; provided that nothing in this paragraph shall preclude Airline and City from entering into separate agreements far training at the Airport: 3.2.5 The purchase of Airline's requirements of personal property or services, including fuel, lubricants, food, beverage and other passenger supplies, and any other materials and supplies used by Airline from any person or company of Amine's choice, and the making of agreements with any person or company of Airline's choice for services to be performed by Airline that are incidental to the operation of Airline's Air Transportation business. Nothing herein shaft restrict City from levyrng a reasonable and non-discriminatory concession fee on any person or company providing property or services to Airline that are not incidental to Airline's Air Transportation business; 3.2.6 The sate, disposal and exchange of Airlines aircraft, engines, accessories, other equipment and materials or supplies, provided that such right shall not be construed as authorizing the conduct of a separate regular business by Arrline, but as permitting Airline fo perform. only such functions as are incidental to the operation of its Air Transportation business. 3.2.6.1 Except far items brought upon the property for regular Airline business purposes, Airline shal} not cause or permit any hazardous substance to be brought upon, kept or used in or about the property. While on the property, hazardous substances allowed by this paragraph shall be stored in a safe manner and in compliance with all environmental laws. Notwithstanding any provision. to the contrary in this agreement, under no circumstances shalt hazardous substances be disposed of or released on the property. The term "hazardous substance" shall mean any hazardous or toxic substances, materials or wastes, pollutants or contaminants, as defined or regulated currently or in the future by any environmental law (as defined below) or by common law decision, including without [imitation: (a} chlorinated solvents, (b) petroleum products or byproducts, (c) asbestos, (d'}polychlorinated biphenyl and (e) urea-formaldehyde. The term "environmental law" means any federal, state or local law, statute, ordinance, regulation, ru}e or order pertaining to health, industrial hygiene, environmental conditions or hazardous substances. Airline Operating Agreement and Terrninat Area Lease Page 8 oP 51 LESSOR _ LESSEE 64 3.2.6.2 Upon Airline written request, City shall provide to Airline all relevant data, assessments, studies, permits and certificates available to City, and' shall otherwise cooperate with Airline, as Airline may reasonably require to effectuate its own compliance with applicable, environmental requirements; 3.2.6.3 Airline will deliver to the City copies of any documents received from, or sent by Airline to, the United. States Enviromnental Protection Agency andlor any state, borough or mwlicipal environmental. or health agency concerning Airline's Operations on the Airline Premises. 3.2.7 The servicing by Airline, or by its suppliers of materials, or its furnishers of services, of aircraft and other equipment operated by Airline or by other Air'Iransportation companies with which Airline has an applicable agreement to provide handling or servicing, line maintenance or other materials or supplies, at assigned aircraft parking positions or other locations designated by the Manager; 3.2.8 The installation and operation of identifying signs, posters and graphics on Airline Premises, subject to the prior written approval of the Manager. Such signs shad he substantially uniform in size, types and location with those of other airlines, and subject to Manager's approval, Rules and Regulations, and in compliance with. all applicable laws and resolutions; 3.2.9 The installation, maintenance, and operation of radio, meteorological and aerial navigation equipment and facilities at suitable locations on the Airport as may be necessary or convenient in the opinion of Airline for its operatinns; provided that 3.2.91 the location of such equipment and facilities shall be subject to the prior written approval of the Manager; 3.2.9.2 the use and location of such equipment and facilities shall not conflict with other similar equipment and facilities on the Airport; and 3.2.9.3 the location of such equipment and facilities on the Airport shall be subject to paymenC of such reasonable and non-discriminatory fee or rental charge establ'sshed by City for such location on the Airport by Airline. Airline Operating Agreement and Terminal Area Lease Page 9 of 51 LESSOR _ LESSEE 65 3.2. ] 0 The installation, maintenance and operation of computer data lines, telephone communications equipment and associated conduits and telephone communications switchgear and support computers at suitable Locations on the Airport, as may be necessary or convenient in the opinion of Airline for its operations; provided that 3.2. ] 0:1 the location of such equipment shall be subject to the prior written approval of the Manager, if such location is not included in Airline's Exclusive Use Space; 3.2.10.2 the use and location of such equipment shall not conflict with other similar equipment on the Airport; and 3.2.10.3 the location of such equipment (other than conduit and cable) on the Airport shalt be subject to payment of such reasonable and non- discriminatory fee or rental charge established by City for such use of space on the Airport by Airline unless such space is already leased to Airline. 3.2.1.1 The sate, disposal, stcrage, distribution, pravisiah or maintenance of aircraft, engines, accessories, fuel, ail, lubricants and other equipment, services or supplies to other airline users of the Airport, performed or provided by Airline or by a consortium of which Airline is or becomes a part, to the extent that such servicing of other airlines constitutes a regular business activity of Airline. Section 3.3 Limitations on Use by Airline In connection with the exercise of its rights under this Agreement, Airline shall not: .; ..;.: Do, v: pe~'rit t0 be dofle, any~h„~g wth~n 7tg O.nflir(li at iir ab0ui the ri]rport t.. at may interfere with the effectiveness or accessibility of the drainage and sewage system, water system, electrical system, heating system, natural gas system, air conditioning system, fire protection system, sprinkler system, alarm system. or fire hydrants and hoses, if any, installed or located on or within the premises of the Airport; 3:3.2 Do, or permit to be done, upon the Airport any aot or thing within its control that will invalidate or conflict with any frre or other casualty insurance policies (copies of which, together with premium schedules, shall be furnished to Airline in writing on request} covering the Airport or any part theeeof; Airline Operating Agreement and Terminal Area Cease Page 10 of 51 LESSarz _ LESSEE 66 3.3.3 Dispose of, or permit any other person within its control (including service contractors) to dispose of, any waste material taken from, or products used (whether Iiquid or solid) with respect to, its aircraft into the sanitary or storm sewers at the Airport unless such waste material or products are first properly treated by equipment installed with the approval of the Manager for that purpose; 3.3.4 Keep or store within the enclosed portion of the Airline Premises, during any twenty- four (24) hour period, flammable liquids in excess of Airline's working requirements during said twenty-four {24) hour period. except in storage facilities specially constructed for such purposes in accordance with standards established by the National Board of Fire Underwriters, and approved. in writing by the Manager r"rom the standpoint of safety; 3.3.5 Do, or permit to be done, upon the Airport any act or thing within its control that will be in conflict with Federat Aviation Regulations Part ] 39 or jeopardize the Airport's operating certificate; 3.3.6 Do, or permit to be done, any act or thing within its contral in conflict with the Airport`s security plan; 3.3.7 Do, or permit to be done, any actor thing within its control in conflict with the Airport's Rules and Regulations; 3.3.8 Do or permit to be done any act, or let any condition exist, which is in conflict with current or future Environmental Protection Agency, State of Alaska and other government enfities' rules, regulations or directives; and 3.3.9 Do, or permit to be done, in the area of the passenger terminal building, heavy maintenance (i.e., engine changes, control surface replacements, overhauls) within Aii uuc s vantrai iin icna CaiiSenie~ w vy ~.i~y, an.. y OVidmg th..t S..E.able, rea.,....a .~ accessible space is available for such purpose. Airline Operating Agreement and'Ierminal Area Lease Page I I of S 1 LESSOR LESSEE A 67 ARTICLE 4 LEASED PREMISES Section 4.1 Terminal Area Leased Space 4.1.1 Airline hereby leases its assigned. Exclusive Use Space in the passenger terminal building being mote particularly delineated on Exhibit A, as the same may be amended from time-to-time, 4.1.2 Airline hereby leases the Joint Use Space it uses with other airlines in the passenger terminal building being more particular{y delineated an Exhibit B, as the same may be amended from time-to-time. 4.1.3 Airline hereby leases the tennina] apron space for the parking of aircraft and the storage of ground service equipment (GSE}, as indicated on Exhibit C -Airline Rate Schedule, as the same may be amended from time-to-time. 4.1.4 Airline shall use ]ts Exclusive Use Space for office purposes and the sale of Air Transportation, handling, ticleeting, billing and manifesting of passengers, baggage, cargo, ]aroperty and mail in the conduct of its Air Transportation business. If Airline desires to use its Exclusive Use Space on behalf of any other Air Transportation company authorized by the Manager to use the Airport, Airline must first obtain written approval of Manager, other fltan for Afftliates of the Airline. 4.1.5 Airline shall use the Joint Use Space for purposes designated for such space by the Manager, which shall include: 4.1.S.i iiaggage claim area (delivery and display or"irinound passenger baggage and passenger waiting areas for defivety of their baggage); 4.1.5.2 Tug cart circulation and baggage breakdown, loading and unloading; 4.1.5.3 Passenger holdrooms (checking-in, passenger waiting areas for arrive( of aircraft, boarding of passengers and deplaning of passengers); and. 4.I.5.4 City owned loading bridges for enplaning and. deplaning aircraft. Section 4.2 Surrender of the Premises 4.2.I City shall not be required to give notice to quit possession of the Airline Premises hereunder upon expiration of the term of this Agreement. City acknowledges that the following conditions shall also be excluded from Airline's duty to surrender the leased premises, and that Airline shall not 0e liable for, or required to corrector make good any damage caused by (a} any willful or negligent act or omission of City, its Airline Operating Agreement and Terminal Area Lease LESSOR LESSPE Page 7 2 of 51 68 employees or agents, or, in the case of any jointly or commonly used portion of the Airline Premises, any damage due to any willful or negligent act or omission of any other tenant, its employees or agents; (b} any latent defect in any Airport improvement not constructed by or on behalf of Airline, and (c) any other damage or toss that Airline is not responsible to repair under the terms of this Agreement. Airline covenants and agrees that, on expiration ofthe term of this Agreement, or orr earlier termination as hereinafter provided, it wi{1 peaceably surrender possession of the premises leased hereunder in good condition, reasonable wear acrd tear, acts of God and fire casualties excepted, and City shall have the right to take possession of said premises. Airline shalt have the right on termination, and within thirty (30) days thereafter, to remove all trade fixtures, equipment and other personal property installed or placed by it at its expense, in, on or about the Airport, except that 4.2.1.1 Airline shall not remove fixtures, equipment and. other personal property for which City is to reimburse Airline pursuant to Section 4.3; and 4.2.2 Airline shall not abandon any of its property on the premises without the prior written consent of the YIanager. Any and all property not removed by Airline within the thirty {30} day period, except as otherwise mutually agreed upon 'try the parties hereto, shall thereupon, at the option of City, become a part of the land on which it is located, and title thereto shall vest with City. A11 City property damaged by, or as the result of, the removal of Airline's property shall. be restored by Airline, at its own expense, to the condition existing prior to such damage or according to such other arrangement to which City and Airline may agree. Section 4.3 Accommodation of New andlor Existing Airlines The parties hereto agree that every reasonable effort will be made to accommodate any other ,• ti t e a « wo_e:...,f~wr as '-'Requesting llew entrant Or tnCitrlllbellt 61 x1111 V. .S 14c 11 VQtA IYr ~ bPu rYl Vr3VU tV lll.l l~ItA4 Airline". The parties agree that City wilt make every effort to accommodate such Requesting ASrGne through direct lease of premises between City and Requesting Airline. In th,e event that no premises which will accommodate the Requesting Airline are available for Lease from City, the parties hereto recognize that it may become necessary to share the use of the premises demised herein with other Signatory Airlines so as to reasonably accommodate new andlor additional Air Transportation service at the Airport. Airline agrees to cooperate with City by giving appropriate consideration to any request by City to accommodate such Requesting Airline in its leased premises. ]f Airline accommodates such Requesting Airline, Airline may charge the Requesting Airline a reasonable and. non-discriminatory fee for secondary use of Airline's space, and Requesting Airline shall be required to indemnify the incumbent airline to the same extent that the incumbent airline is required to indemnify the City for the use and occupancy of the premises under this Agreement. Airline Operating Agreement and Terminal Area Lease Page l3 of 5 t LESSOR LESSEE 69 Section 4.4 Remodeling and New Construction Gity reserves the right to provide Exclusive Use Space to a Requesting Airline by remodeling existing space or constructing new space after aonsuitation with all Signatory Airlines., 4.4.1 "Remodeling" will be treated as a tenant improvement and the sole cost will be borne by the Requesting Airline as well as all remodeling and relocation costs, if any, incurred by any incumbent Signatory Airline that has accommodated the Requesting Airline. 4.4.2 `~1ew construction" which increases the space available for lease and use by airlines wilt be treated as a common cost element of the passenger terminal building, and costs invo}vingadditions or building modifications (including financing costs, if appropriate) will be borne by the Airport, except that, finish costs related to the new space will be borne by the Requesting Airline including any finish costs that the "new construction" necessitates for any incumbent Signatory Airline. Section 4.5 Aeeess 4.5.1 Subject to the provisions hereof, the Rules and Regulations, and such restrictions as Airline may impose with respect to its Exclusive Use Space, City hereby grants to Airline, its agents, suppliers, employees, contractors, passengers, guests and invitees, the right and privilege of access, ingress and egress to the Airline Premises and to Public Areas and public facilities of the Airport, together with alt improvements, facilities and. equipment now ar hereafter located thereon. The Public Areas shall be in the possession and control of City and shat( at all. times remain public property to be used only as public Airport facilities; except as may be otherwise provided herein. d,S? The ingrecc and ogress pravidod for in Seatian 4,~,1abave shad oat be used; enjoyed or extended to any person engaging in any activity or performing any act or furnishing any service for or on behalf of Airline that is not incidental to Airline's Air Transportation business and that Airline is oat authorized to engage in or perform under the provisions hereof unless expressly authorized by the Manager. Airline Operating Agreement and Terminal Area Lease Page 14 of 51 LESSOR _ LESSEE 70 4.5.3 City shall have the right at any time to close, relocate, reconstruct, change, alter or modify any such means of access, ingress and egress provided. for Airline's use pursuant to this Agreement or otherwise, either temporarily or pennanentiy, provided that reasonable notice to Airline and a reasonably convenient and adequate means of access, ingress and egress shall exist or be provided in lieu thereof. City shall use its best efforts to limit such closing to the duration appropriate to the circumstances. City shall consult with Airline prior to any such closing which would adversely affect Airline's operations unless such closing is necessitated by circumstances which pose an immediate threat to the health or safety of persons using the Airport. City shall suffer no liability includhig but not limited to consequential damages, by reason thereof, and such action shall in no way alter or affect any of Airline's obligations under this Agreement. Airtine Operating Agreement and Terminal Area Lease Page 15 of 51 LESSOR _ LESSEE 71 ARTICLE 5 REhTTALS> FEES A.NI9 CI~ARGES Section 5.1 Consideration and Rate~Setting Basis 5.1,1 In consideration of the rights and privileges granted under this Agreement, Airline agrees to pay City, without deduction or setoff, during the term of this Agreement, certain fees and rentals as set forth herein. 5.1.2 Airline landing fees and passenger terminal building rentals prescribed in this Agreement are based on the Airport's actual cost of operations with recognition of the City's necessity to provide substantial rate subsidies to the airlines to reflect its current circumstances and level of aviation activity and the economic infeasibility of charging full-cost recovery based rates. As such, the rates established and imposed by the City comply with the FAA Policy Regarding Airport Rates and. Charges. The Airline hereby acknowledges the City's basis for establishing rates and. its compliance with the FAA. Policy. Section 5.2 Landing Fee Charges 5.2.1. Airline shall pay City within thirty (30} days following the end of each month, without demand or invoicing, landing fee charges for aircraft landings for the preceding month at the rate and in the amount then currently approved by the City as provided in Exhibit C -Airline Rate Schedule. For each year of the Agreement, the landing fee rate is based on the previous year landing fee increased by ten percent (10%). x.2.2 f1tr11ne Shall piaVlde La All'pGri a COpy Gf its iiiariti.il}% ialCe-G5f weight Tepait, including the number of landings by aircraft types and Maximum Certificated Gross Take-Off Weight. This monthly take-off weight report shall be provided within ten (10) days following the end of each month for landings for the preceding month. Section 5.3 Rentals for Exclusive Use Space and 3oint Use Space 5.3.1 Airline shall pay to City in advance, on the first day of each month, without demand or invoicing, rentals for Airline's Exclusive Use Space and Joint Use Space at the rate and in the amount then currently approved by the City as provided in Exhibit C - Airline Rate Schedule. For each year of the Agreement, the terminal rental raters based on the previous year terminal rental rate increased by ten percent (10%). 5.3.2 Airline shall provide to Airport a copy of its monthly passenger enplanement report, including all revenue and non-revenue passenger enplanements. This monthly report Airline Operating Agreement and Terminal Area Lease LESSOR LESSEE Page 16 of 51 72 shall be provided within ten {10} days following the end of each month for enplanements for the preceding month. Section 5.4 Rentals for Termina6 Apron Aircraft Parking and ti5E Space Airline shall pay to City in advanoe, on the first day of each month, without demand or invoicing, rentals for Airline's use of the terminal apron space for the parking of aircrafr and the storage of ground service equipment (GSE) at the rate and in the amount then currently approved by the City as provided in Exhibit C -Airline Rate Schedule. [ or each year of the Agreement, the terminal apron rental rate is based on the previous year terminal apron rental rate increased by ten percent (10%}. Section 5.5 Qther Charges Other Charges may include charges foYSpecial items or activities including, but not limited to, telephone fees, public address system, electrical usage, automobile parking fees, mailbox rentals, flight training fees and. loading bridge maintenance The City may assess reascnable, non- discriminatory and cost-recovery based charges for these special items or activities. AI'1 new charges wit) be reviewed with Airline prior to implementation. Other Charges payable by Airline, shall be paid by Airline to City no later than fifteen (I S) days following receipt by Airline of the billing therefor. Section 5.6 Partial Month Charges In the event the beginning or termination date with respectty any of the particular leased premises, facilities, rights, licenses, services or privileges as herein. provided falls on any day Ether than tl:e fiYSt daV Ot a Oaleridar monTn, the app::cable .Tental5, fees and CllargeS Fnr that month shall be paid for said month on a prorated basis according to the number of days during which said particular leased premises, facilities, rights, licenses, services or privileges were enjoyed. during that month. Air3ine Operating Agreement and ?erminal Area Lease Page 77 of 57 LESSOR _ LESSEE 73 Section 5.7 Late Payments In the event Airline fails to make payment when due under this agreement, Airline shall be obligated to pay a late charge in the amount of eight peroent {8°/a) of the past due amount. Payment of the late charge shall. not constitute a waiver by the City of its other remedies under this Agreement on account of Airline's failure to pay sums hereunder. Airline shalt also pay interest on all past due amounts at the rate of eight percent (8%) per annum from the due date, until paid. Section 5.8 Overpayments It is the obligation of Airline to pay all. rentals, fees and other charges; free of any "set-offs" or claims, in the amounts and at the times specified in this agreement. In the event Airline desires to contest the validity or amount of any rental, fee or other charge, Airline shall fsst pay the same to City, and may then seek a refund in any appropriate forum. Any overpayment of a particular rental, fee or other charge shall first be applied to any past due sums before it is refunded to Airline. Section 5.9 Information to be Supplied by Airline 5.9.1 In the event Airline fails to submit the reports required. by Sections 5.2.2 and 5.3.2 for the then current month by the fifteenth (15th} day of the succeeding month, City shall base its current rentals, fees and charges upon the most recent data transmitted by Airline to City; with such charges to be adjusted as necessary on the next succeeding payment date. If statistical data to be submitted by Airline continues to be unavailable in the next succeeding month, City shalt develop estimates as to Airline's monthly activity for use in the determination of Airline's rentals, fees and charges. 5.9.2 The acceptance by City of any Airline payment shall not preclude City from verifying the accuracy of Airline's reports on which Airline's rentals, fees and charges are based, and shall not be construed as a waiver of a fate payment penalty due on full or partial underpayment, if any. Section 5.10 Non-Signatory Rates City shall establish and maintain Non-Signatory Airline landing fee charges and passenger terminal building rental rates that are thirty percent {30%) higher than Signatory Airline rates. Airline Operating Agreement and Terminal Area Lease Page 18 of 51 LHSSOR _ LESSEE 74 ARTICLE 6 MAINTENANCE, REPAIR, ALTERATIONS AND IMPROVEMENTS Section 6.I Airline's Responsibilities Airline shall have the following maintenance and repair obligations: 6.1.1 Airline agrees that, upon Airline's occupancy of its Exclusive Use Space, such space is in good, tenantable candition unless otherwise noted in writing to the Manager. 6.I ,2 Airline, except as hereinafter provided, shall not cal! on City for any of the following janitorial services or nonstructural repairs to its Exclusive Use Space and Airline shall, at its sole expense and in a manner acceptable to City: 6.1.2.1. Maintain its Exclusive Use Space in reasonably good, tenantable condition; 6.1.2.2 Maintain the aircraft ramp area in a neat, clean and orderly condition, free from litter, debris, refuse, petroleum products or grease that may resuh from activities of its passengers, employees, agents or suppliers; and remove from its aircraft parking positions, all oil, fuel and grease spillage attributable to Airline's aircraf3 and equipment. ' 6.1.2.3 Perform, ants sole expense, ordinary preventive maintenance and ordinary upkeep and nonstructural repair of all Exclusive Use Space and all Airline owned fixtures, persanai property and equipment. 6.1.2.4 Immediately repair any damage in any other space at the Airport occasioned by the fault ar negligence of Airline, its servants, agents, employees and licensees. 6.1.3 Except as may be caused by the negligence of City beyond the City's reasonable control, Airline expressly agrees that City shall not be liable to Airline, its employees, passengers, visitors or contractors for bodily injury or for any loss or damage to real or personal property occasioned by flood, fire, earthquake, lightning, windstorm, hail, explosion, riot, strike, civil. commotion, smoke, vandalism, malicious mischief ar acts of civil authority. Airline Operating Agreemeni and Temsinal Area Lease Page '19 of 53 LESSOR LESSEE 75 6.1.4 if Airline fails to perform its obligations under this Article 6 after the notice period expires as provided in Section 10.1.1., City may do so and recover its entire cost plus a fifteen percent (I S%} administrative charge from Air]ine as an Other Charge referred to in Section 5.5 on the next rental due date. 6.1.5 Airline will take all reasonable precautions to prevent,. and take alt necessary action to .suppress destructive or uncontrolled fires and comply with all laws, regulations and rules promulgated and enforced by the City far fire protection within the area wherein the leased premises are located. Section 6.2 Citg~'s Responsibilities b2.1 City, during the term of this Agreement, shall retain FAA Airport Certification and keep in goad repair, or arrange for the safe, orderly, economical operation, maintenance and reasonably good repair of, all areas and facilities of the Airport except as specifically otherwise assigned by this Agreement, including, but net limited to, the Public Areas and the .Ioint Use Space of the passenger terminal building, City owned loading bridges, vehicular parking areas,runways, landing lights, floodlights, beaoons and other field lighting, taxiways, aprons, roadways and all appurtenances, facilities and. services now or hereafter connected with the foregoing. City also shall keep the Airport reasonably free from obstructions, including, without limitation, vegetation, stones and other foreign matter, as reasonably necessary, from the landing area, ramp area, taxi area, roadways, vehicular parking areas and aircraft parkhzg areas for the safe, convenient and proper use of the Airport by Airline. 6.2.2 City shall operate and maintain the Airport in a reasonably prudent manner and in accordance with the rules, regulations and orders of any federal or state agency havirgjurisdicticn wits: respect ~':ereto. 6.2.3 City shall maintain the exterior portions of the walls, ceiling and roof of the Exclusive Use Space and all central mechanical distribution systems in good repair and condition. 6.2.4 The undertakings by City under this Section 6.2 do not relieve Airline of its duties to maintain its Exclusive Use Space and aircraft ramp areas as specified in Section 6.1 and to use Joint Use Space with due care. Airline Operating Agreement LESSOR _ and Terminal Area Lease LESSEE _ Page 20 of 51 76 6,2.5 City shall operate the AirporC and lease space to concessionaires, other tenants and other commercial operators in a manner so as to produce, subject to the provisions of this Agreement, revenues of a nature and amount which would ba produced by a reasonably prudent airport operator and- to maximize such revenues to the extent reasonably practicable. 6.2.6 City shall use its best efforts to keep the Airport open and in operation for landings and take-offs of aircraft of any type designed. to use facilities simi}ar to those at the Airport. In such regard, City shall employ or cause to be employed construction, reconstruction and repair techniques (including supervision and construction management} which will minimize Airport operational delays or disruptions reasonably expected rn result from such construction, reconstruction or repair, inoluding but not limited to coordination with affected Airline's representatives or its designee. Section 6.3 City's Right to Inspect and Make Repairs 6.3.1 City, by its authorized of leers, employees, agents, contractors, subcontiactors and other representatives, shall haue the right (at such tithe and upon reasonable notice to Airline as may be reasonable under the circumstances and with as little interruption of Airline's operations as is reasonably practicable) to enter Airline's Exclusive Use Space and. Joint Use Space for the following purposes: 6.3.1.1 To inspect such space to determine whether Aie}ine has complied and is complying with the terms and conditions of this Agreement; 6.3.1.2 To accomplish repairs or replacements by City pursuant to Section 6.2, or in any case, where Airline is obligated. to make repairs or replacements and has faked `w^ da Sa, after notlee aS provided }tci`ciie, ri:ai<e suer: reratrs or replacements on Airline's behalf; and 63.1.3 In the exercise of City's police powers 6.3.2 No such entry by or on behalf of City upon any Exclusive Use Space leased to Airline shall cause or constitute a termination of the letting thereof or be deemed to constitute an interference with the possession thereof by Airline. City shall suffer no liability by reason thereof, and. such action. shall in no way alter or affect any of Airline's obligations under this agreement; provided that, and so tang as each entry by City, is conducted to minimize inconvenience, disruption or interference with Airline's operations and activities. Airline Operating Agreement and Terminal Area Lease page 21 of 51 LESSOR _ LESSEE 77 Section 6.4 Alterations ared Improvements Airline shall make no alterations, additions, improvements ta, or installations on the space leased under tfiis Agreement wwithout the prior written approval of the Manager. if City intends to require the removal of any alteration, improvement or addition upon termination of this Agreement, City shall so indicate. to Airline at the time City consents to the installation. If not indicated at the time City consents to the installation, City shall be precluded from requiring its removal at time of termination of this Agreement. Airtine Operating Agreement and Tenninat Area Lease Page 22 of S 1 LESSOR __ LESSEE 7$ ARTICLE 7 I}AMAGE OR DESTRUCTION OF PREMISES Section 7.1 Minar Damage If any part of Airline Premises, or adjacent facilities directly and substantially affecting the use of Airline Premises, shall be partially damaged by fire or other casualty, but said. cirewnstances do not render Airline Premises untenantable or unusable for the purpose intended as reasonably determined by the City, the same shall be repaired to usable condition with due diligence by the City as provided in Section 7.4. Section 7.2 Substantial Damage if any part of'Airline Premises, or adjacent faei]ities directly and substantially affecting the use of Airline Premises, shall be so extensively damaged by fire, or other casualty, as to render any portion of said Airline Premises untenantable but capable of being repaired, as reasonably determined by the City, the same shall be repaired to usable condition with due diligence by t}ae City as provided in Section 7.4. In such case, the rentals payable hereunder with. respect to affected Airline Premises shall be paid up to the time of such damage and shall thereafter be abated ratably in the proportion that the part of the area rendered. untenantable or unusable for the purpose intended bears to total Airline Premises of the same category and area. Such abatement in rent will continue until such time as such affected Airline Premises shall be restored adequately for Airline's use. The City shall use its best efforts to provide alternate facilities to continue Airline's operation while repair, reconstruction or replacement is being completed, at a rental rate not to exceed. that provided in this Agreement for comparable space. Section 7.s Tgiai vamage 7.3.1 If any part of Airline Premises, or adjacent facilities directly and substantially affecting the use of Airline Premises, sha1.1 be damaged by fire or other casualty, and is so extensively damaged as to render any portion of said. Airline Premises incapable of being repaired, as reasonably determined by the City, the City shall notify Airline within a period of sixty (64} days after the date of such damage of its decision whether to reconstruct or replace said. space. However, the City shall be under no obligation to replace or reconstruct such premises. The rentals payable hereunder with respect to affected Airline Premises shall be paid up to the time of such damage and thereafter shall cease until such time as reasonable and comparable replacement or reconstructed space shall be available for use by Airline. Airline Operating Agreement and Terminal Area Lease Page 23 of 52 LF,SSOR LESSEE 79 7..3.2 In the event the City elects to reconstruct or replace affected Airline Premises,. the City shall use its bast efforts to provide alternate facilities to continue Airline's operation while repair, reconstruction or replacement is being completed, at a rental rate not to exceed that provided in this Agreement for comparable space.. However,. if such damaged space shall not have been replaced or reconstructed, or the City is not diligently pursuing such replacement or reconstruction, within three (3) months after the date of such damage ordestruetioh, Airline shall have the right, upon giving the City thirty (30) days advance written notice, to delete the affected Airline Premises from this Agreement, but this Agreement shall remain in effect with respect to the remainder of said Airline Premises, unless such. damaged or destroyed premises prevent Airline from operating at Airport. 7.3.3 In the event the City elects not to reconstructor replace affected Airline Premises, the City shall meet and consult with Airline on ways to permanently provide Airline with adequate replacement space far affected Airline Premises. Airline shall have the right, upon giving the City thirty (30} days advance written notice, to delete the affected Airline Premises from this Agreement, but this Agreement shall remain in fu8 force and effect with respect to the remainder of said Airline Premises, unless the :oss of such premises prevents Airline from operating at Airpork. Sectian 7.4 Scope of Restoration of Premises 7.4.1 The City's obligations to repair, reconstruct or replace affected premises under the provisions of this Article 7 shall in any event be limited to using due diligence and best efforts to restore affected Airline Premises to substantially the same condition that existed prior to any such damage and shall. further be limited to the extent of insurance proceeds available to the City fox such repair, reconstruction or replacement. Airline agrees that if the City elects to repair, reconstruct or replace a ffPrteri nrerntSec aS nrnvideri in Th15 ATt!nie_ !, trlen AiriinP Shall nrnceed with _..._____ i.._ r reasonable diligence and at its sole cost and expense to repair, reconstruct or replace its signs, fixtures, furnishings, equipment and other items provided or installed by Airline in or about Airline Premises in a manner and in a condition at least equal to that which existed prior to said damage or destruction. However, in the event City chooses not to replace space in kind, Airline may delete said. premises from its obligation. 7.4.2 In lieu of the City's repair, reconstruction or replacement of the affected premises, as provided in Section 7.4.1; if Airline requests to perform said function with respect to damage under Sections 7.l and 7.2, the City may in its sale discretion, allow the Airline to perform such work. Airline shat[ not be performing such work as an agent or contractor of the City. The City shall reimburse Airline for the cost of such work performed by Airline that was otherwise the oBligation of the City if prior to performing such work., the City and Airline agree that such work is the obligation of Airline Operating Agreement LESSOR _ and Terminat Area Lease LESSEE _ Page 24 of 51 $~ the City to perform. Section 7.5 Damage from Airline ^v'egligence or Willful Act Notwithstanding the provisions ofthis Article 7, in the event that due to the negligence or wiliful ant of Airline, its agents, servants or employees, or those under it_s oontrol, Airline Premises shall be damaged or destroyed by fire, casualty or otherwise, there shall be na abatement of rent during the restoration or replacementof said Airline Premises and Airline shall have no option to delete the afFected Airline Premises from this Agreement under the provisions of this Article ?. To the extent that the costs of r°epairs shall exceed the amount of any insurance proceeds payable to the City by reason of such damage or destruction, Airline shall pay the amount of such additional costs to the City. Airline Operating Agreement and Terminal Axea Lease Paga 25 of 51 LESSOR _ LESSEE 81 ARTICLE 8 INDENIlVIFICATION, INSURANCE AND SECURITY Section S.I Indemnification 8.1.1 Airline shall indemnify, defend and hold harmless the City, its Council members, directors, officers, agents and employees, individually or collectively, from and against any and all claims, actions, damages, loss and liability, together with all reasonable expenses incidental to the investigation and defense thereof claimed by anyone by reason of injury or damage to persons ar property sustained in whole or in part as a result of an act, omission or negligence of Airline, its officers, agents or employees, subtenants, contractors, subcontractors or by anyone acting pursuant to the express or implied authority ar permission of Airline arising out of, or incident to, this Agreement. The provisions of this Section 8.1.1 and of Section 8.1.2 shall exclude claims or actions arising out of the negligence or willful act of the City, its Council members, officers, agents or employees. The City shalt give to Airline prompt and reasonable notice of any claims ar actions, and Airline shall have the right to investigate and compromise said claims or actions. The provisions of this Section 8.1.1 shall survive the expiration or earlier termination of this Agreement. 8.1..2 Airline shall indemnify, defend and hold harmless, the City, its Council members, directors, officers, agents and employees, individually or collectively from and against any and all claims, actions, damages, fines, loss and liability, together with all reasonable expenses incidental to the investigation and defense thereof, in any way arising from or based upon the violation of any federal, state or municipal laws, statutes, ordinances or regulations, by Airline, its officers or agents, employees, subtenants, contractors, subcontractors ar by anyone acting pursuant to floe express or s. __.._. __ ~.._...,.:,. °A"dine ar:S:nc r.,:t of nr incjAnnf ta. tl?]s implied au.i,w„~y ui Ncii„iosian a. .t• .b ~-• ~., Agreement. Airline shall be responsible for the investigation expenses pursuant to this Section 8.1..2 only in the event that Airline is shown to be responsible for violation of a federal, state or municipal taw, statute, ordinance or regulation. The provisions of this Section. 8.1.2 shall survive the expiration or earlier termination of this Agreement. 8.1.3 City shall, within the limits of state law and the Kenai Municipal Code and Charter, indemnify, defend and hold harmless Airline, its directors, managers, officers, agents and employees, individually or collectively, from and against any and alt claims, actions, damages, loss and liability, Together with all reasonable expenses incidental to the investigation and defense thereof by anyone by reason of injury or damage to persons or property sustained. in whole or in par[ as a result of an act, omission or negligence of City, its Council members, its officers, agents or employees arising out of or incident to, this Agreement. The provisions of this Section 8.I.3 shall exclude Airline Operating Agreement LESSOR _ and Terminal Area Lease LESSEE ._ Page 26 of 51 82 claims or actions arising out of thenegligence or willful act of Airline, its directors, managers, officers, agents or employees. Airline shall give to Cit}~ prompt and reasonable notice of any claims or actions; and City shall have the right to investigate and compromise said claims or actions. Theprovisions of this Seotion 8.L3 shall survive the expiration or earlier termination of this Agreement. Sectrott 8.2 Airline Insurance 8.2.1 Airline shall maintain, and shall require alt of its Affiliates to indidsdually maintain; liability insurance for the protection of Airline, 'sts Affiliates and the City, its Council members, directors, offcers, agents and employees, insuring against damages because ofpersonai injury, bodily injury, death, property damage, including loss of use thereof, and arising out of any operations of Airline and its Affiliates in connection with this Agreement. Coverage shall provide limits per occurrence to a combined single limit in amounts not less than those set forth in Exhibit D. Such insurance shalt Warne the City, its Council members, directors, officers, agents and employees as additional insureds, but only as respects the operations of the named insured Airline and its Affiliates, as their interests may appear, with the stipulation that this insurance, as to the interest of the City only, shall not be invalidated by any actor neglect or breach of contract by Airline or its Affiliates, so long as the City has not caused, contributed to or knowingly condoned the said act, neglect or breach of contract. The coverage provided by this policy(ies) shall be primary coverage and any other insurance carried by the City is excess. All insurance shall ba written by companies rated "A-" or better by A.M. Best. 8.2.2 Airline shall comply, and shal{ require all of its Affiliates to comply, with AS 23.36 which requires Airline and its Affiliates to provide workers' compensation insurance coverage that satisfies Alaska state taw for all subject workers. Employer`s Liability Insurance is also required. The specifically required coverage types and amounts are provided in Exhibit D. 8?.3 Airline shall furnish, and shall require all of its Affiliates to furnish, the City, no later than thirty (30} days following the execution oY this Agreement, a certificate(s) of insurance as evidence that the then required amounts and types of such insurance are in force. The City reserves the right to require a certified copy of such certificates upon request. Airline shall name, and. shall require all of its Affiliates to name, tihe City as an additional insured on such insurance policy or policies. Said policies shall be in a form, content and. for a term generally used. by scheduled commercial passenger air carriers similar to Airline and its Affiliates in their routine operations and shall provide for thirty (30} days' written notice to the City prior to the cancellation of, or any material change in, such policies. 8:1.4 City and Airline agree, and Airline shall require all of its Affiliates to agree, to have Airline Operating Agreement LESSOR _ and. Terminal Area Lease i.ESSBB Page 27 of 51 83 alt property, fire and extended coverage, all risk. and material damage insurance carried with respect to the Airport or any portion thereof with a clause which waives all rights of subrogation which the insurer of one party might have against the other P~Y• 8.2.5 City, Airline, Airline's Affiliates and all parties claiming rights under them, mutually release and discharge each other fran all claims and liabilities arising from or caused by any casualty or hazard covered or required hereunder to be covered in whole or in part by insurance carried with respect to the AirporC or any portion thereof, without regard to whether such loss or damage was occasioned by the negligence of the other, its agents or employees. Section 8.3 Secnrify for Paymenf of Airline Rafes and Charges Airline shall, upon the execution of this Agreement, file and maintain with the City a good and sufficient corporate surety bond or bonds or such other security as the City may find acceptable in accordance with the requirements of the laws of the State of Alaska, the form and terms of which bond or other security shall be subjeot to the approval of the City, in a sum equal to three {3) months of Airline's estimated rent far its use of the Airline Premises, Landing Fees and Other Charges (depending on circumstances this sum may increase or decrease}, conditioned upon the full performance byy Airline of all the terms and conditions of Phis Agreement and the payment by Airline of the rentals and of all other amounts herein provided for the full term hereof, Airline OperatSug Agreement and Terminal Area Lease Page 2S of 51 LESSOR LESSEE 84 ARTICLE 9 RULES AND. REGULATIONS, COMPLIANCE WITIi LAWS, NON-DISCRIlViINikTION AATD AFFIRMATIVE ACTION Section 4.1 Rules and Regulations 4.l .1 Airline shall observe. and obe}~ all City ordinances, resolutions and Rules and Regulations governing conduct on and operations at the Airport and use of its facilities. City agrees that. all Rules and Regulations so promulgated shall not be inconsistent with the express terms of this Agreement or any legally authorized rule or regulation of the FAA, or any other federal or state agency, which is binding in law on Airline; as the same now are of may from time-to-time be amended or supplemented. Except as so expressly limited, City's authority to promulgate or amend Rules and Regulations shall nut he affected by this Agreement. City shall give Airline reasonable notice of amendment to Rules and Regulations. 9.1.2 Airline shall not violate, nor permit its agents, contractors or employees acting on Airline's behalf to violate atry such Rules and Regulations that are now in effect or as may from time-to-time during the term hereof be promulgated by City. Copies of the Rules and Regulations; as adopted, shall be forwarded to Airline's local manager. Section 9.2 Compliance with Laws 4.2.1. Airline shall not use its Exclusive Use Space, Joint Use Space or any part thereof, or permit the same to be used by any of its employees, officers, agents, subtenants, invr_teec or licensees for any illegal purposes and shall, at all times during the farm of this Agreement, comply with all applicable resolutions, laws and zules and regulations of the City of Kenai, State of Alaska ar of the U.S. Government, and of any commission thereof that may have jurisdiction to pass laws or ordinances or to make and enforce rules or regulations with respect to the uses hereunder or to the Exclusive Use Space and Joint Use Space. Airline Operating Agreement and Terminal Area Lease Page 29 of 51 LESSOR LESSEE 85 9.2.2 At all times during the term of this Agreement, Airline shall, in connection with Airline's activities and operations at the Airport: 9.2.2.1 Comply with and conform to all existing and future statutes, rosolutions and ordinances, and the rules and regulations promulgated thereunder, of all federal, state and other governmental bodies of competent jurisdiction t[tat apply to or affect, either directly or indirectly, Airline or Airline's operations and activities under this Agreement. 9.2.2.2 Make, at Airline's own expense, a{1 nonstructural improvements, repairs, and alterations to its Exclusive Use Space; equipment and personal property that are required to comply with or conform to any of such laws, ordinances, and. rules and regulations referred to in Section 9.2.2.1, to which this Agreement is expressly subject. 9.2.2.3 Reimburse City for Airline's pro rata share in accordance with the Joint Use Farmula of all nonstructural improvements, repairs and alterations to Airline's Joint Use Space that are required to Comply with. or conform to any of such laws, ordinances, and rules and regulations referred to in Section 9.2.2.1, to which this Agreement is expressly subject. 9.2.2.4 Ba and remain an independent contractor with respect to al] installations, construction and services performed by or at the request of Airline, hereunder. Section 4.3 Non-Discrimination and Affirmative Action Airline, as part of the consideration hereof and as a covenant running with the Agreement; "- hereby eoveitaru and agrees u~ai. 9.3.1. In the event facilities are constructed, maintained or otherwise operated for a purpose for which a Federal Department of Transportation and Transportation Security Administration program or activity is intended or for another purpose involving the provision of similar services or benefits, Airline shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation,. Subtitle A, Office of the Secretary, Part 21,Non-Discrimination in Federally Assisted Programs of the Department of Transportation, Effectuation of Title VI of the Civil Rights Act of 1964, and. as such regulations may be amended. Airline Operating Agreement and'Ferminal Area tease Page 3D of 51 LESSOR. LESSEE 86 9.3.2 No person on the grounds of race, creed, color, national origin, sex, age or physical handicap shall be excluded. from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities. 9.3.3 No person on the grounds of race, creed, color, national origin, sex, age or physical handicap shall be excluded from participation in, denied the benefits of, ar otherwise be subjected to discrimination in the construction. of any improvements an, over, or under the Airline Premises and the furnishing of services thereon. 9.3.4 Airline shall use the Airline Premises in compliance with all other requirements imposed by ar pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21,Non-Discrimination in Federally Assisted Programs of the Department of"Transportation, Effectuation of Title VI of the Civit Rights Act of ].964, and as such regulations may be amended. 9.3.5 Airline agrees that it shall insert the provisions of Sections 9.3.1., 9.3?, 9.3.3 and 9.3.4, inclusive, in any Lease or other agreement by which it grants a right or privilege to any person, firm or corporation to render accommodations and/or services to the public on the premises herein leased. 9.3.6 In the event of breach of any of the non-discrimination covenants set forth in this Secfion 9.3, City shall have the right to terminate this Agreement and to reenter and repossess the premises and the facilities thereon, and hold the same as if this Agreement had never been made or issued. This provision shall not become effective until the procedures of Title 49, Code of Federal Regulations, Part 21, are followed and completed, including the expiration. of appeal rights. 9.3.7 Airline will undertake an affirmative action program as required by FAA Regulations, Title 14, Code of Federal Regulations, Part 152, Subpart E, entitled "Non- Discrimination in Airport Aid Program," or otherwise approved. by the FAA, to ensure that no person shall, on the grounds of race, creed, color, national origin, sex, age or physical handicap, be excluded from participation in any employment activities covered in such Subpart E. No person shall be excluded by Airline on such grounds from participating in or receiving the services or benefits oft any program or activity covered. by such Subpart E. Airline will require that its covered suborganizations provide assurances to Airline that they similarly will undertake affirmative action programs and. that they will require assurances from their suborgani~ations, as required by Title 14, Code of Federal Regulations, Part 152, Subpart E, to the same effect, Airline Operating Agreement a~tid Terminal Area Lease Page 31 of 51 LESSOR LESSEE ______. 87 9:3.8 Airline covenants and agrees that no person shall be excluded fram participation in, denied the benefits of, or otherwise discriminated against in the performance of this Agreement on the grounds of race, color, national origin, or sex, as provided in Part 23, of Title 49, of the Code of Federal Regulations entitled "Participation by Disadvantaged Business Enterprises in Department of Transportation Programs." 9.3.9 In the event of a breach by Airline of any of the assurances or covenants in Sections 9.3.7 and 9.3.8, City shall have the right to terminate this Agreement, and. to reenter and repossess any (eased facilities hereunder, and to hold the same as if this Agreement had never been made or issued, but not without the express prior concurrence or direetion of the U.S. Department of Transportation or the FAA following suitable review, if any, of such breach and. affording Airline a reasonable opportunity to rectify the same, if appropriate. Airline Operating Agreement and Terminal Area Lease Page 32 of 51 LESSOR _ LESSEE 8$ ARTICLIJ 10 DEFAITLT AND TERMINATIQN Section 10,1 Events of Default 10.1.1 If Airline: 10.1..1.1 Fails to pay rentals, fees or charges ar make any other payment past due hereunder within fifteen (I S} days after receipt of written notice of nonpayment; 10.1.1.2 Rails, subject to force majcure events specified in Section ] 2.13 of this Agreement, to commence immediately to keep and perform any of its covenants and agreements within thirty (30) days after receipt of written notice of default and to diligently pursue the completion of such cure of such non-monetary default; 1 D.1.1.3 Fails to continue to complete any of its covenants and agreements after performance is commenced; or 10.1.1..4 Is the subject of any petition, proce: dings or aotion by, for, or against Airline under any insolvency, bankruptcy or reorganization act of law; l 0.L2 Then, at the election of Crty: 10.1.2.1 City may accelerate all rent payments due hereunder which shall then became immediately due and payable. 10.1.2.2 City may terminate this Agreement, in which event Airline imrnediateiy shall surrender the );xclusive Use Space and Joint Use Space (Airline Fremises) to City, and if Airline fails so to do, City may, without prejudice to any other remedy which it may have for possession, or arrearages in rent, enter upon and take possession of the Airline Premises and expel or remove Airline and any other person who may be occupying the Airline Premises or any part thereof, without being liable for prosecution or any claim of damages therefor, and Airline agrees to pay to City on demand the amount of all loss and damage which City may suffer by reason of such termination, whether through inability to relet the Airline Premises on satisfactory terms or otherwise. Airline Operating Agreement and Terminal Area Lease Page 33 of 51. LESSOR _ LESSEE 89 10.1.2.3 City may enter upon and take possession of the Airline Premises and expel or remove Airline and any other person who may be occupying the Airline Premises or any part thereof, without being liable for prosecution or any claim for damages therefor, and relet the premises for such terms ending before, on or after the expiration date of the Agreement Term, at such rentals and upon such other conditions (including concessions and prior occupancy periods) as City in its sole discretion may determine, and receive the rent therefor; and Airline agrees to pay to City on demand any deficiency that may arise by reason of such retelling. City shall use reasonable efforts to mitigate its damages by reIetting the Airline Premises. In the event City is successful. in reletting the Airlines Premises at a rental in excess of that agreed to be paid by Airline pursuant to the terms of this Agreement, Crty and Airline each mutually agree that Airline shalt not be entitled, under any circumstances, to such excess rental, and Airline does hereby specifically waive any claim to such. excess rental. 10.1.2.4 City may enter upon the Airline Premises, without being liable for prosecution of any claim for damages therefor, and do whatever Airline is obligated. to do under the terms of this Agreement; and Airline agrees to reimburse City on demand for any expenses which City may incur in thus effecting compliance with Airline's obligations under this Agreement, and Airline further agrees that City shall not be liable for any damages resulting to the Airline from such action, whether caused by the negligence of City or otherwise. 10.1.2.5 Whether or not City retakes possession or ralets the Airline Premises, City shalt have the right to recover unpaid rent and elf damages caused by Airline's default, including attorney fees. Damages shaft include, without limitation: All rentals Post, all legal expenses and other related costs ,.........Bd by r;t`,J folio Flmg Airline'g defa~ilt, elf rpgtc ir~t_i erred by City in restoring the Airline Premises to good order and. condition, or in remodeling, renovating or otherwise preparing the Airline Premises fox refetting, all costs {including without limitation any brokerage commissions and the value of City's time) incurred by City, plus interest thereon from the date of expenditure until fully repaid at the rate of eight percent {8%) per annum. 10.1.2.6 Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies herein provided. or any other remedies provided by law, such remedies being cumulative and non-exclusive, nor shall pursuit of any remedy herein provided constitute a forfeiture or waiver of any rent due to City hereunder or of any damages accruing to City by reason of the violation of any of the terms, provisions and covenants herein contained. No act or thing done by City or its agents during the Agreement Tenn Airline Operating Agreement and Terminal Area Lease LESSOR LESSEE Page 34 of 51 90 hereby granted shall be deemed a termination of this Agreement or an acceptance of the sutrender of the Airline Premises, and no agreement to terminate this Agreement ar accept a suttender of the Airline Premises shall be valid unless in writing signed by City. No waiver by City of any violation or breach of any of the terms, provisions and covenants herein contained shall be deemed or construed to constitute a waiver of any other violation or breach of any of the terms, provisions and. covenants herein contained. City's acceptance of the payment of rental or other payments hereunder after the occurrence of an event of default shall not be construed as a waiver of such default, unless City so notifies Airline in writing. Forbearance by City to enforce one or more of the remedies herein provided upon an event of default shall not be deemed or construed to constitute a waiver of such default or of City's right to enforce any such remedies with respect to such default or any subsequent default. If, on account of any breach ar default by Airline in Airline's obligations under the terms and conditions bf this Agreement, it shall become necessary or appropriate for City to employ or consult with an attorney concerning or to enforce or defend any of City's rights or remedies hereunder, Airline agrees to pay any reasonable atrorneys' fees so incurred. 10.1..3 City shall have all additional rights and remedies as may be provided to landlords by Alaska state law. Section 10.2 Events Permitting Termination of Agreement by Airline 10.2.1 Airline may terminate this Agreement and all of its future obligations hereunder at any time that Airline is not in default in its payments or other obligations to City hereunder, by giving the Manager thirty (30) days advance written notice if: 10.2.1.1 City is in default of any material provision of this Agreement; or 10.2.1.2 Airline becomes subject to any order, rule or regulation of any Federal or State agency or to a court order which prevents or substantially prevents Airline's use of the Airport for more than ninety (90) days following written notice by Airline to the Manager. Airline Operating Agreement and Terminal Area Lease Page 35 of 51 LESSOR LESSEE 91 10.2.2 With respect to 10.2.1.1, Airline termination shall not be effective unless and until at least thirty (30}days have elapsed after written notice to City specifying the date upon which such termination shall take effect and the reason for such termination. City may cure the cause of such termination within said (30} day period, or such longer time as the parties may agree thereto, if City so cures, Airline's right to terminate ceases for that particular instance or situation, and the Agreement shall continue in full force and effect. 0.2.3 Airline may terminate this agreement if Airline terminates its Air Transportation business at the Airport, at any time that Airline is not in default in its payments or other obligations to City hereunder, by giving the Manager sixty (60) days advance written notice. Airline termination shall not be effective unless and until at least sixty (60) days have elapsed after written notice to City specifying the date upon which such termination shall take effect. Section 10.3 Events Permitting Termination of Agreement by City City, at its opdon, ~ra`y declare this Agreement terminated on the happening of any ene or more of the following events, and may exercise all rights of entry and reentry of Airline's Exclusive Use Space: 10.3.1 If Airline has failed to cure a default in the Agreement after notice required in Section 10.1 hereinabove; 1.0.3.2 If any act occurs that deprives Airline permanently of the rights, power and privileges necessary for the proper conduct and operation of its Air Transportation business; 10.3.3 In the event Airline fails to provide scheduled Air Transportation service for a period of thirty ('i(1} rlgye (ax reintfnr eVrnt~ of Fnr~.P M~a~eLrel nr tQ pay rentAlS and fees when due, City may cancel this Agreement on fifteen (13}days written notice. However; if Airline cures the breach within this fifteen (I S} day period, the Agreement shall continue in full force and effect; 10.3.4 if Airline abandons and fails to use its Exclusive Use Space for a period of thirty (30) days at any one time, except when such abandomnent and cessation are due to fire, earthquake, strike, governmental action, weather conditions which prevent aircraft operations, mechanical failure of aircraft whioh prohibits operations under FAA regulations, default of City or other cause beyond Airline's control; Airline Operating Agreement and Terminal Area Lease Page 36 04 5 t LESSOR LU'SSEE 92 10.3.5 If Airline fails to operate at least five (5) weekly scheduled passenger service departures from the Airport, for a period of thirty (30) days or more {except by reason of an event of Force Majeure). Section 10.4 Possession by City 10.4.1 In any of the aforesaid events of Section 10.3, City may take possession of the Airline Premises upon thirty (30) days notice and remove Airline's effects, without being deemed to have trespassed. On said default, all rights of Airline shall be forfeited, provided City shall have and reserve all of its available remedies at law as a result of said breach of this Agreement. 10.4.2 Failure of City to declare this Agreement terminated on default of Airline for any of the reasons set forth herein shall not operate to bar, destroy or waive the right of City to cancel this Agreement by reason of any subsequent violation of the terms hereof. Airline Operating Agreement and Terminal Area Lease Page 37 of Si LESSOR _ LESSEE 93 ARTICLE I1 ASSIGNMENT, SUBLETTLNG, MERGER AND BANKRUPTCY Section 11.1 Assignment and Subletting Airline shall not assign this Agreement, or any part hereof in any manner whatsoever or sublet the Airline Premises ar any part thereof or any of the privileges recited herein without the prior written consent of the Manager. However, Airline shalt have the right to assign all or any part of its rights and interests under this Agreement to an AfEliate of the Airline or any successor tc its business through merger, consolidation, voluntary sale or transfer of substantially all of its assets, and the consent of City thereto shaft not be required; provided, however, due written notice of any such assignment shall be given to the Manager. Section 11.2 Non-Waiver of Responsibility No assignment, transfer, conveya~lce, sublease or granting a nonexclusive license by Airline shall repave Airline of its responsibility far paysnant of rc7tt and pet•formanos of all other .obligations provided in this Agreement, without specific written consent of the Manager to such relief. Section 11.3 Reiingnishment of Space If Airline desires to relinquish any of its Exclusive Use Space or any rights to Joint IIse Space, Airline may notify the Manager of the space available, and the Manager shall use a best effort to reassign the space to another Airline. No reassignment by the Manager, nor any assignment, transfer, conveyance or sublease by Airline shall relieve Airline of its primary responsibility for pay:x.,nt of rent and perlar...µnce of all cLher chhgatiens prc:.ded .n t}:.s ~:gre.,....nt, w:thcut specific written consent by the Manager to such relief. Sectiaa 11..4 Ground Handling Agreements In the event Airline agrees to ground handle any portion of the operations of another Air Transportation provider, other than an Affiliate of the Airline, Airline shall provide the Manager advance written notice of such proposed activities, including a description of the type and extent of services to be provided.. Airline Operating Agreement and 7`erminal Area Lease Page 38 of 51 LESSOR _ LESSEE 94 Section 1.1.5 Bankruptcy Notwithstanding Section 11.1, in the event that a petition for relief under Title 11 of the United States Code or under any similar or successor federal, state or local statute is Fled. by or against the Airline (a "Filing"j: 11.5.1 The Airline shall give the City immediate verbal notice of the Filing followed by written notice within Tan (10) days of the filing; 3.1.5 ? ~i%ithin sixty (60) days of the date of the Filing, the Airline will confirm the outstanding amount of any obligations hereunder due the City as of the date of Filing; 11.5.3 The Airline will fully and. timely perform all obligations arising hereunder commencing as of the date of the Filing and thereafter for the purposes of this provision and of Section 365(d)(3} of Title 11 of the United States Code, the parties agree that, in the event that the Airline shalt be the subject of a Filing commenced on a day (the "Filing Date"} when the rent due for the then-current month is outstanding and unpaid, the obligation for rent during that monthtnwhich the Filing shall have occurred shall be considered to accrue and be due. pro rata on a daily basis during that month and the Airline will pay the City the pro rata rent for the period from the Filing Date through the end of that month within thirty (30} days of written demand therefore by the City. 1 1.5.4 1f the Airline determines that it wishes to assume the Agreement, the Airline will cure all defaults, provide the City with adequate assurances of future performance and oomply with any and all other statutory or legal requirements prior to the effeotive date of such assumption; 11.5.5 [f the Airline determines that it wishes to assume the Agreement and assign the Agreement to athird-party, the Airline shall seek the consent of the City, which consent shall not be unreasonably withheld, and shall provide to the City all pertinent information with respect to the proposed assignee, cure all defaults, provide the Crty with adequate assurances of future performance through the proposed assignee and comply with any and all other statutory or legal requirements; Air}ine Operating Agreement LESSOR _ and Terminal Area Lease LESSEE _ Pege 39 of 51 95 11.5.6 If the Airline wishes to reject the unexpired term of the Agreement, if any, the Airline will not seek to have the effective date of suoh rejection determined to be a date earlier than that date on which (i) the Airline shall have returned control and possession of the Airline Premises to the City in the condition and. on the terms set forth herein and relevant to the redelivery of possession to the City; and (ii} the Airline shall have obtained court approval and authorization for such rejection; and the Airline shall fully and timely pay all rent and other charges through the date of such rejection; and 11.5.9 The Airline shalt be deemed to have expressiy consented to the modification of the stays of proceedings in any Filing in the even# of any post-Filing default by the Airline under the terms of this Agreement for the purpose of allowing the City to exercise any default rights or remedies arising from. such default. section 11.6 Consent Consent by the Manager to any type of transfer provided for by this Article 11 shall not in any way be construed to relieve Airline from obtaining further consent for any subsequent transfer or assignment of any nature whatsoever, Airline Operafing Agreement and Terminal Area Lease Page 40 of S 7 S,ESSOR LESSEE i 96 ARTICLE 12 GENERAL PR4VISIQNS Section. 12.1 Successors and AssignaBonnd This Agreement shalt be binding on and inure to the benefit of the successors and. assigns of the parties hereto. Section 12.2 Governing Law This Agreement and all disputes arising hereunder shall be governed by the laws of the State of Alaska: Section 12.3 Severability If any covenant, condition or provision herein contained is held to be invalid by any court of competent jurisdiction, the invalidity of any such covenant, condition or provision shall in no way affect any other covenant, condition or provision herein contained, provided that the invalidity of any such covenant, condition or provision does not materially prejudice either party hereto in its respective rights and obligations contained in the valid covenants, conditions or provisions in this Agreement. Section 12.4 Quiet Enjoyment Airline shalt, upon payment of the rentals and fees herein required, and subject to performance and compliance by Airline of the covenants, conditions and agreements on the part of Airline to be performed and complied with hereunder, peaceably have and enjoy the rights, uses and privileges of the Airport, its appurtenances and facilities as granted hereby and by the Rules and Regulations. Section 12.5 Taxes 12.5.1 Airline shalt pay, but such payment shall not be considered part of Airport Revenues, all taxes (including any possessory interest tax), assessments and charges of a like nature, if any, which at any time during the term of this Agreement may be levied or become a Lien by virtue of any levy, assessment or charge by the Federal government, the State of Alaska, the City of Kenai, the Kenai Peninsula Borough, any municipal corporation, any local govemment entity, any government successor in authority to Airline Operating Agreement LESSOR _ and Terminal Area Lease LESSEE Page 41 of 51 97 the foregoing, or any other tax or assessment levying bodies, in whole or in part, upon or in respect to any of the space leased under this Agreement (including Airline's pro rata share for any taxes, assessments or charges imposed upon .Toint Use Space) or such facilities of the Airport as are made available for use by Airline hereunder, or upon or in respect to any personal property belonging to Airline situated on the space leased under this Agreement. Payment of such taxes, assessments and charges, when and if levied or assessed, shall be made by Airline directly to the taxing or assessing authority charged with collection thereof. 12.5.2 Airline may, at its own expense, contest the amount or validity of any tax or assessment, or the inclusion of the space leased under this Agreement as taxable or assessable property, directly against the taxing or assessing authority. Airline shall indemnify City from all taxes, penalties, casts, expenses and attorneys fees incurred by City resulting directly or indirectly from al[ such tax contests except where Airline geevai[s in contesting a Yax assessed by the City. 12.5.3 On any termination of this Agreement, all Lawful taxes then levied or a lien upon any such property or taxable interest therein shall be paid in foil by Airline forthwith, or as snon as a statement thereof has been issued by the tax collector if termination occurs during the interval between attachment of the lien and issuance of a statement Section. 12.6 Liens 12.6.1 Airline shall cause to be removed promptly any and alt liens of any nature arising out of or because of any construction performed by Airtine or any of its contractors or subcontractors upon Exclusive or Joint L'se Space or arising out of or because of the performance of any work or labor by or For it or them at said premises. 12.6.2 Notwithstauding the foregoing provision. of this Section i 2.6, Airtine may witiihoid payment of any claim in connection with agood-faith dispute over the obligation to pay. In the event a Lien is filed as a result of Airhne's nonpayment, Airtine shall, within ] 0 days after the filing, secure the removal of the lien or deposit with City cash or sufficient corporate surety bond or other security satisfactory to City in an amount equaling 1 SO% of the total lien amount or $20,000, whichever is greater. Within one year after providing City with security for the lien, Airline shall, upon City's written request, secure the removal of the lien. Should Airline fail to remove the Tien within the one year period, Airline acknowledges and agrees that City in its sole unfettered discretion may secure the removal of the Lien and apply the security provided by Airline to the costs of discharging the lien, including City's administrative costs anal attorney fees. In the event City has accepted a cash deposit as satisfactory security under this Section 12.6, City shall distribute to Airline any portion of the deposit remaining after full payment of all such costs relating to the discharge of the lien. has been made. In the event a mechanic's lien is asserted or filed. against the leased Airline Operating Agreement LESSOR._ and Terminal Area Lease LESSEE Aage 42 of 57 98 premises for improvements made by Airline, Airline shall hold City harmless from such claim, including the cost of defense. Section 12.7 Obtaining Federal and State Funds City shall use 'tts best efforts to obtain appropriate grants from State or Federal agencies or other sources, when consistent with prudent management of the Airport. Section 12.$ Subordination to Agreements with the U.S. Gvvernanent This Agreement is subject and subordinate to the provisions of any agreements heretofore or hereafter made between City and the United States, relative to the operation or maintenance of the Airport, or to the expenditure of federal funds for the improvement or development of the Airport, including the expenditure of federal funds for the development of the Airport in accordance with the provisions of the Federal Aviation Act of I958, the Federal Aid to Airport Act, the Airport and Ahway Development Act of 1970 and the Airport and Airway Improvement Act of 1.9$2, as such acts have been amended or replaced from time-to-time. In the event that the FAA requires, as a condition precedent to the granting of funds for the improvement of the Airport, modifications or changes to this Agreement, Airline agrees to consent to such amendments, modifications, revisions, supplements or deletions of any of the terms, conditions or requirements of this Agreement as may be required to enable City to obtain such grant of funds. Section 12.9 Subordination to Bond Ordinances This Agreement and all rights of Airline hereunder are especially subordinated and subject to the lien and provisions of any pledge, assignment or security interest made or granted by Ciry io secure any obligations authorized by law to be issued far the development, operation or improvement of the Airport. City and Airline agree that holders of such obligations, and any bond trustee acting on behalf of such holders, shall possess, enjoy and may exercise all rights of City hereunder to the extent such possession, enjoyment and exercise are necessary to ensure compliance by Airline and City with the terms and provisions o'f any covenant contained. in an ordinance, resolution or other instrument relating to such obligations. Airline shall not take any action or suffer to take any action that would adversely affect the tax-exempt status of any obligation issued by City in connection with the Airport. Airline Operating Agreement and Terminal Area Lease Page 43 of 51 LESSOR _ LESSEE 99 Section 12.14 Incorporation of Cxhibits All exhibits referred to in this Agreement are intended to be and hereby are sgecifically made a part of this Agreement. Section 22.PI Entire Agreement This Agreement, together with all exhibits attached hereto, constitutes the entire agreement between the parties hereto, and all other representations or statements heretofore made, verbal or written, are merged herein, and this Agreement may be amended only in writing, and. executed by duly authorized representatives of the parties hereto. Section 12.12 Non-Waiver of Rights No waiver of default by either party of any of the terms, covenants and. conditions hereof to be performed, kept and observed by the other party shall be construed, or shall operate, as a waiver of any subsequent default of any of the terrrts, covenants or conditions herein contained, to be performed, kept and observed by the other party. Section 12.13 Force IVlajeure 1.2. L 3.1 In the event of either party being rendered unable wholly, or in part, by force majeure to carry out its obligations under this Agreement, other than its obligations to make payments of money due hereunder then on such party's giving notice and full particulars of such force majeure in writing to the other party as soon as possible after the occurrence of the cause relied on, then the obligation of the party giving such notice, so far as it is affected by such force majeure, shah be suspended during the continuance of any inability so caused, but for no longer period, and such cause shall, as far as possible, be remedied with all reasonable dispatch. In the event either party hereto has with its employees what is commonly known as a labor dispute, each parry does hereby reserve unto itself the right to handle said dispute in its own fashion and as it shall, in its uncontrolled discretion, deem best and without interference from the other party. 1.2.1.3.2 The term "force majeure" as employed herein shall mean acts of Gad, strikes, lockouts or other industrial disturbances, acts of the public enemies, wars, blockades, insurrections, riots, epidemics, landslides, hghtning, earthquakes, fires, storms, floods, washouts, arrests and restraints of rulers and. people, civil disturbances, explosions, inability with reasonable diligence to obtain materials and any other causes not within. the control of the party e}aiming a suspension, which by the exercise of due diligence such party shall not have been able to avoid or overcome. Airline Operating Agreement LESSOR _ and Terminal Area Lease LESSEE _ Page 44 of 51 100 Section 12.14 Headings The headings of the several articles and sections of this Agreement are inseried only as a matter of convenience and for reference and do not define or limit the scope or intent of any provisions of this Agreement and shall not be construed tp affect in any manner the terms and provisions hereof or the interpretation or construction thereof. Secfian 1.2.15 1lonexclnsive Rights It is understood and agreed that nothing herein contained shall be construed to grant to Airline any exclusive right or privilege within the meaning of Section 308 of the Federal Aviation Act for the conduct of any activity on the Airport, except that, subject to the terms and provisions hereof, Airline shall have the right to exclusive possession of the Exclusive Use Space leased to Airline under the provisions of this Agreement. Section 1.2.16 Inspection of Books and Records Each party hereto, at its expense and on reasonable notice, shall have the right from time-to-time to inspect the books, records and other data of the other party relating to the provisions and requirements hereof, provided such inspection is made during regular business hours. Each party shall retain all such records for a period of at least three (3) years, or as required by the FAA, Transportation Security Administration or other federal agency havingjurisdietion over the Airlines On at least thirty (30) days prioc written notice, Airline agrees to make any records required hereunder available to City at Airline's offices at the Airport. Section 12.17 Generally Accepted Accounting Principles Whenever any report or disclosure referred to in this Agreement consists, either in whole or in part, of financial information, such report or disclosure shall. be prepared in accordance with generally accepted accounting principles, except as specifically provided to the contrary in this Agreement. Airline Operating Agreement and Terminal Area Lease Page 45 of 51 LESSOR LESSEB 101 Section 12.18 Consent Nat to he Unreasonably Withheld Whenever consent, permission or prior written approval. is required by either City or Airline, such consent, permission or prior written approval is not to be unreasonably withheld or delayed. Section 12.14 Authority of Manager A1I rights and obligations of City under this Agreement may be exercised by the Manager or the Manager's designee, unless specifically provided otherwise or required by law. Section 12.20 Amendments This Agreement may be amended in whole or in part without further consideration upon mutual writton consent of City and Airline. Section 12.21 Attorney Fc~ In the event any action or proceeding is brought to collect sums due or to become due hereunder or any portion thereof or to take possession of the Airline Premises or to enforce compliance with this Agreement for failure to observe or perform any of the covenants, terms or conditions of this Agreement, the losing party agrees to pay to the prevailing party such fees, including attorney fees, and costs as the Court may judge reasonable in such action or proceeding. and in any appeal therefrom. Section 12,22 Vending Machines Airline shall ensure that no amusement, vend'zng or self-ticketing machines, public pay telephones or other machines operated by coins, tokens or credit cards are installed or maintained in or at Airline's Exclusive Use Space or Joint Use Space except with the prior written permission of the Manager. Section 12.23 Public Address System Airline agrees that the use of City's public address system will be professional and non- promotional. Airline shall not install, cause to be installed or use any other public address system in the passenger terminal building without the prior written approval of the Manager. Section 12.24 )employees of Airline Airline shall require all of its employees, subcontractors or independent contractors hired by Airline Operating.Agreement and Termina(Area Lease LESSOR _ LESSEE Page 46 of 51 102 Airline working in view of the public and about the passenger terminal building area to wear clean and neat attire and to display appropriate identification. Section 12.25 Removal of Bisahled Aircraft Airline shall promptly remove any of its disabled airoraft from any part of the Airport {including, without ]imitation, runways, taxiways, aprons and gate positions) and place any such disabled aircraft in such storage areas as may be designated by the Manager. Airline may store such disabled aircraft only for such length of fime and on such terms and conditions as may be established by City. If Airline fails to remove any of its disabled aircraft promptly, the Manager may, after informing Airline of his/her intent to do so, but shalt not be obligated Yo, cause the removal of such disabled aircraft; provided, however, the obligation to remove or store such disabled aircraft shall not he inconsistent with federal laws and-regulations. Airline agrees to reimburse City for all costs of such removal, and Airline further hereby releases City from any and all claims for damage, except as the result of negligent or willful. misconduct, to the disabled aircraft or otherwise arising from or in any way connected with such removal. by City. Section 12.2b Licenses, Fees and Permits Airline shall obtain and pa}~ for all licenses, fees, permits or other authorization oz charges as required under federal, state or local laws and regulations insofar as they are necessary to comply with the requirements of this Agreement and the privileges extended hereunder. Section 12.27 National Emergency This Agreement and all the provisions hereof shat( be subject to whatever right the U.S vovernmc3it ;iuw has, or in the future may have GT aCquir e, auECting the C6ntr ul, OpeTatiori, regulation and taking over of said Airport or the exclusive or nonexolusive use of the Airport by the United States during the time of war or national emergency. Section 12.2$ Time is of the Essence Time is of the essence in this Agreement. Airline operating Agreement and Terminal Area Lease Page 47 of 51 LESSQR _ LESSEE 103 Section 12.29 Employee Parking The City shall provide and Airline shall have the right to the use of vehicle parking facilities, for its employees employed at the Airport. Such facilities shall be located in an area designated by the City. City reserves the right to charge Airline and/or its employees reasonable fees, not to exceed actual net costs, for use of such facilities and to regulate such use. Section 12.3Q Notices 12.30.1 Notices to City provided for herein shall be sufficient if sent by first class mail and certified mail, retum receipt requested., postage prepaid, addressed to: City of Kenai, Kenai Municipal Airport, 210 Fidalgo Avenue, Kenai, Alaska 996 1 1-7794. Notices to City shall also be considered sufficient if sent by tested or otherwise authenticated facsimile at (907) 283-3737 or by recognized overnight courier service, and notices to Airline, if sent by first class mail and certified mail, return receipt requested, postage prepaid, addressed to . or to such other addresses as the parties may designate to each other in writing fromtime to time. Notices to Airline shall also be considered sufficient if sent by tested or otherwise authenticated facsimile at or by a recognized overnight courier service. 1.2.30.2 A11 notices, requests, demands or other communications which are required or may be given pursuant to the terms of this Agreement shall be in writing and shall he deemed to have been received (i) on the date of delivery if personally delivered by hand, (ii) upon the third day after such notice is (a) deposited in the United States mail, if mailed by registered or certified mail, postage prepaid, return receipt requested, or (b) sent by a nationally recognized ovemight express courier, or (iii) by facsimile upon written confirmation (other than the automatic confirmation that is received from the rrrinienYc faegimjle manhi7re) of rgr_.Pi»t by the reci»iPnt of aagh nntir_.r:, r__.._ _ _~ r ~ r Section 12.31 No More Favorable Terms City shall not enter into any tease, contract or any other agreement with any other Air Transportation company containing more favorable terms than this Agreement, or to grant aoy tenant engaged in Air Transportation, rights or privileges with respect to the Airport that are not accorded Airline hereunder, unless the same rights, terms and privileges are concurrently made available to Airline. Airline Operating Agreement and Terminal Area Lease Page 4& of 51 LESSOR _ LESSEE 104 ARTdCLE d3 PROVdSdONS Olx CITY'S I3EEB This Agreement shall be binding on and inure to the benefrt of the successors and assigns of the Parties hereto. Airline expressly understands that all provisions of this Agreement are subject to the provisions of the deed under which City holds title to the Airport property and that tenancy established herein is subject to the teens and conditions set forth in that deed of December 1, 1963, wherein the City of Kenai obtained title to the premises from the Administration of General Services pursuant to authority of the provisions of the Federal Property and Administration. Services Aot of 1949 and the Surplus Property Act of 1944 (5$ Stat. 765} as amended and regulations and. orders promulgated thereunder and the Airline further agrees to abide by the covenants of such deed and the restrictions set forth therein which are imposed pursuant to authority of Article 4, Section 3, Clause 2 of the Constitution of the United States of America, the Federal Property and Administrative Services Act of 1949 (Public Law 152-81s` Congress), the Surplus Property Act of 1944 as amended thereby, and the applicable rules, regulations and orders, and that the use of the premises by Airline shall be in accordance with such covenants and conditions the same as though ail of such. covenants and conditions cantairad in such deed were set forth in full herein. Airline Operating Agreement and Terminal Area lease Page 49 0£ 51 LESSOR _ LESSEE 105 iN WITNESS WHE ` ~ OF, the parties hereto have hereunto set their hands, the day and year stated in the individual aclnowledgmentsbelcw. LESSOR: CITY OF KENAI icy: Rick K. Koch - Gity Manager LESSEE: sy: Name {If Lessee is a Corporation) ATTEST: Name and Title STATE OF ALASKA ) )ss 'I'I-IIR~ ~U~ICLRL BIST'Rl CT ; AVIATION, INC. Title THIS IS TO CERTIFY that on this _ day of 2008, NAME, TITLE of _ AVIATION, ENC., being personally known to me or having produced satisfactory evidence of identification, appeared before me and aclarowledged the voluntary and authorized execution of the foregoing instrument on behalf of said Corporation. Notary Public for Alaska My Commission expires: Air}ine Operating Agreement and Terminal Area Lease Page 50 of 51 LESSOR _ LESSEE 106 sTATi: of ALASKA } >ss THIRD NDICIAL DISTRICT ) TH3S IS TO Cl/RTIFY that on this day of 2008, RICK K. KOCH, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Notary Public for Alaska My Commission expires: Approved by Kenai City Council Approved as to lease form by City Attorney Approved by Finance Director ____ Approved by City Manager Return to: City Attorney 210 Fidalgo Ave, Kenai, AK 9961 I Aieiine Operating Agreement and Terminal Area Lease Page 5I of 51 LESSOR _ LESSEE 107 ~sz~c ~ AIIZLINE p~nas~s -1~~CLUSrvi~ us>r srAC~ INSERT' TERMINAL BUILDING DRAWING WITH EXCLUSIVE USE SPACE SHADED ONE EXHIBIT A FOR EACH AII2T.INE AGREEMENT Terrranal Drawing Nat to Scale Grant Aviation Exciusiva Use Space including the ticket counters, ticket lobby queuing area, office space and operations space indicated above: 544 square feet Terminai apron aircrafk parking and GSE Space: 5,000 squire feet ERA Aviation Exclusive Use Space uicluding the ticket counters, ticket tabby queuing area, office space and operations space indicated above; 1,152 square feet Terminal apron aircraft parking and GSE Space: 15,006 square feet Airline Operating Agreement LESSOR _ and'I~rminal Area Leese LESSEE 108 ~ , ~ ~l ~ ~ i ~y ~ ~ 'a I u ,,: ~ w ,,, ~: ~ E ~ n I / I m 7 i ' u p ' ~ II II li n ;-- Y __ 4 ~ _.. ~~ ~ , 11 _~ o o ~ ~ i) i) z ~ z (~ i x 1 / R ~ H ~ /~ I ~I\\ \ °F 1 f !~ ~-- _-~ I /~ / ~' ~ ~ g ~~ ~g( ~ ~ d t ~~t f 109 b w ~ ~ J J w c~ w w ~ > ~ a ~ 4 J a U a W w ~ d ~ Z W }= Y p~ X W m} J W S O U Z EXFIISIT B AIRLIlVE PREMISES -JOINT' USE SPACE INSERT TERMINAL BUILDING DRAWING WITH JOIiv'T USE SPADE SHADED SAME LTX..I~IBTT B FOR AT.I. AIRLII~TE AGREEMENTS Terminal DrawLng t~'ot to Scale Jpint Usa Space used iF common Passenger Holdraom Deparnxre Hallway Arrival Hallway Baggage Makeup Area Baggage Claim Area Baggage Breakdawn Area Tatal Joint Use Space Airline Operating Agreement and Terminal Aioa Leaae Square eet 1,008 528 288 2,400 1,200 960 LESSOR LES5Er 110 `~ r 0 fc t ~o i . L° ~, ~ ~~~ ~ ~6 ~ _~. ~ m ' ~ i~ P 9 m /~3M13 ~~ ~~ ~,_ 1 am i I ~~ I o o _~ ~ z K ~ N I !9 ~~ , I z ~~ a o i x ~ ~, /~ ~ . J (/~ I \\+ ` t ~~......~ I~ ° ~ ~~ ~ i ~ /~ /i /l r~ s o...'i / _/ 111 Q W W J J w U °- a W U Z j O ~ CLI y+ ~_ CD __ W ~' LO J W t=- O z 3 EXH181T C AIRLINE RATE SCHEDULE KENAI MUNICIPAL AIRPORT City of Kenai, Alaska ENA Exh.t2s 3~-Apr-Q$ Calculation of 2008 7erminaE Renf, Apron Space Rent and Landing Fees ('[} Rotual Adjusted Area Square UGi"~zation Square Base Rental Enplanament ; Rental Description F®et Ad'ustmen_t _FeeF Rate {psfpy) Percents a Amount Exclusive use space 1,152 - 1,152 $19.80 - $22,610 Joint use space: Baggage matte-up area 2,400 65.34% 1,566 $12.00 79% $14,866 Baggage breakdown area 96C 65.34% 627 $12,00 79% $5,946 Baggage claim area 1,200 65.34°h 784 $19.80 79°!0 $12,265 Passenger hotdroom, arrival and departure hallways 1,824 65.34°!0 1,192 _ $19._8.0_ Y 79°!°1 $18,6A2 Toiai Terminal Rant I $74.529 2008 Rent Square Rants! Rate i Space Feet _ (psfpy} ~ Rent Terminal Apron Aircraft v I Parking & GSE Space Rent 15,000 ~ $0.30 j~$4,500 2008 Landing Fees Weight Fee Landing (1,000s) Rate __ _ Fees LandingFaes I 115,860 estl2) $1.00 $115;Bi NOTES: (1) Rents and fees are scheduled to inoreaso uy 10°Jo for each year of the agreement. {2) Aircraft take-off weights are estimated. Achral Iandin9 foes are to be based on actual weight. Aldine Opereting Agreement LESSOR _,___ and Terminal Araa Lease Page 1 of 2 LESSEE _ 112 ExHlslT c AIRUhiE RATE SCHEDULE KENAE MUPlICIPAL AIRPORT City of Kenai, Alaska ENA Exh.923 30-Apr-OS Ca{culation of 200$ Terminal Rant, Apron Space Rent and Landing Pees ('!} AGUa! Adjusted Area Square Uf!iizatEon Square Base Rental Enplanement ftentai _ Description Feat_ Atljustment Feet ftate(psfpy} Percentage Rmaunt ExGusive use space 544 - 544 $19.80 - $10,771 Joint use space: Baggage make-up area 2,400 65.34% 1,588 $12.OG 21% $3,952 Baggage breakdown area 960 65.34°I° 627 $12.00 21% $1,581 Baggage Gaim area 1,20D 65.34% 784 $19.80 21% $12,265 Passenger holdroom, arrival and departure hallways 1,824 65.34% _ 1,192 $19.60 21°!° $4,956 Total Terming! Ren: RA3 F9d Square Renffii Rate Feet tosfov) Terminal Anron Aircraft Parking & GSE Space Rent Fee Landing Fees 27.424 gat NOTES: (1} Rents and Fees are scheduled to increase by 1Q% for each year of the agreement. {2} Aircraft take-off weights are esfimated. Actual landing fees are to be based on actual weight. Space Landing Airlina Operating Agreement LESSOR _ and Terminal Area Lease Page 2 of 2 LESSEE 113 EI£TiEI3I1` 10 r1TCYT.,INE Aiv'IJ A1F'FILIATE INSI3IL/sNC1E REQiTTYtEMENTS A. Airline Liability Insurance and Comprehensive General Liabiliiy hisurance Insurance limits of liability far Airline and each of its individual Affiliates shall be determined by the capacity in passenger seats of the largest aircraft in Airline's and its Affiliate's fleet as follows: 1. Not less than one hundred fifty mslliort dollars ($154,t}00,000}pcr occurrence for airlines operating aircraft of one hundred {100) seats or more; 2, Not less than one hundred mrIlian dollars ($100,000,000) per occurrence for airlines operating aircraft of between sixty (60} and ninety-nine (99} seats; 3. Not less than fzfry millior. dollars ($50,000,000) per occurrence for airlines operating aircraft of between twenty (20) and fifty-nine (59} seats; 4. Nat less titan twenty mrliian daIlars ($20,000,000) per occurrence for airlines operating aircraft of nateteen (19) or fewer seats; 5. Nat less than five rnillian dollars ($5,000;000) per occurrence far airlines operating aircraft of note (9) or fewer seats; 6. Passenger personal injury not less thazt twenty-five nullion dollars ($25,000,000) per occurrence and in the annual aggregate with respect to non-passenger personal izzjury. B. Hangar Keepers Liability Insurance (If Applicable) Hangar keepers liability inct_raIIC{: in aP. amC'.rnt adequate t0 CaVer an`y' n^vn-awned properly ill the care, custody and control of airline or any of its individual Affiliates on the Airport, but in any event in an amount not less than five nuIlion dollars ($5,OD0,000). C, Automobile Liability insurance Automobile liability insurance in azz amount adequate to cover automobile insurance while on Airport prenvses in an amount not less than one million dollars ($1,000,000) per person per occurrence. D. WOTIferS' Compensation and Employers' Liability Tnsuranee Statutory coverage and liability limits are required. Airline Operating Agreement and Terminal Area Lease LESSOR _____ LESSEE 114 CITY OF KENAI RESOLUTION Nd. 2008-28 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING A CONTRACT TO ALASKA ROADBUILDERS, INC. FOR THE PROJECT ENTITLED THOMPSON PARK PAVING LID - 2008 FOR THE TOTAL AMOUNT OF $674,330. WHEREAS, the following bids were received on May 14, 2008: Bidder Basic Bid Qpp $1,080,500 North Star Pavin & Construction, Inc, ~_ 739,460 Alaska Roadbuilders Inc. 674,330 Engineer's Estimate ~ 775,800 ;and, WHEREAS, Alaska Roadbuilders, Inc.'s bid is the lowest responsible bid and award to this bidder would be in the best interest of the City; and, WHEREAS, the recommendation from Administration is to award the contract to Alaska Roadbuilders, Inc. for the total cost of x674,330; and, WHEREAS, sufficient monies are appropriated. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the contract for the project entitled Thompson Park Paving LID - 2008 be awarded to Alaska Roadbuilders, Inc. for the total amount of $674,330, P ASSED BY fiHE COUNCIL OF THE Ci1°s' OF KENAI, ALASKA, this 20th day of iJiay, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Approved by Finance: 115 AGENI3A KENAI CITY COUNCIL -REGULAR MEETING MAY ?, 2008 7:00 P.M. KENAI CITY COUNCIL CIIP.MSERS httu: / / www. ci. kenai. ak.u s ITEM A: CALL TO ORDER Pledge of Allegiance Roll Ca1I 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 member so requests, in which case the item uriIl be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes} ITEM C: UNSCHEDULED PUSLYC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCYLS ITEM E: PUBLIC BEARINGS (Testimony limited to 3 minutes per speaker.) Orduaance No. 2287-2008 -- Amending KMC 14.20.200 (Accessory Structures) by 1} Adding a Section Restricting the Use or Storage of ~.onex- T Vpe ~~i uetiirc~ in the Gcrtir ai ~-uisiillcl e;iai aI7 ecc~iucuuni t.~iicS and 2) Requiring Accessory Structures be Built to Match the Primary Building on the hot and 3) Providing for Temgorary Use of Conex-Type Structures During Construction Projects and Incorporating the Existing Requirement that Accessory Structures Over 120-Square Feet Require a Building Permit. (Clerk's Note: A motion to adopt Ordinance No. 2281-2008 was offered at the March 19, 2008 and the ordinance was then postponed. At the 4/2/08 council meeting, the ordinance was sent back to the Planning & Zoning Commission for additional review/recommendation and postponed until the May 7, 2008 council meeting for further council consideration. The motion to adopt is active.) 2. Ordiaaxtce No. 2300-2008 -- Donating Certain Foreclosed Cit1~-Owned Properties Described as Lots 1 - 5, Block 10, Mommsens Subdivision Replat of Addn. 1 & 2 (Parcels 039-103-01 Through 039-103-05}, to Amundsen Educational Center for Construction of Housing. 117 Ordinance No. 2301-2008 -- Amending KMC 23.5b.010(bj by Adding Two Class Titles to the Employee Classification Plan and Amending KMC 23.55.030(b)(1) to Allow the Police Chief to be Eligible for Advanced Certification Pay. 4. Ordinance No. 2302-2008 -- Adoptirsg Updated Zoning and Land Use Maps for the Comprehensive Plan for the City of Kenai. 5. Resolution No. 2008-23 -- Authorizing Sharing Cost Savings From the Calendar Year 2007 Health Insurance Plan with Employees. 6. Resolution No. 2008-24 -- Transferring $13,200 in the General Fund to Pay Taxes Due on Mommsen Subdivision Property Beseribed as Lots 1 - S, Block 10, Mommsens Subdivision Replat of Addn. 1 & 2 (Parcels 039- 103-01 Through 039-103-OS3). Resolution No. 2008-26 -- Repealing Resolution No. 2008-10 A~hiclx Awarded a Sole Source Contract to Procomm Alaska LLC to Equip the Kenai Fire Department with Hand Held Radios and Award a Sole Source Contract to Motorola Inc. in the Amount Not to Exceed $54,000 to Purchase Hand Held Radio Equipment. YTEM R. MINUTES *Regular Meeting of April 16, 2008. 'Notes of April 14, 2008 Budget Work Session. ITEM Cr: UNFINISHED BUSINESS ITEM x: n'n_ v_ re_~: r._~ D711J to Ue ,RA1111Gti 2. Approval of Purchase Orders Exceeding $15,000 3. *Ordinance No. 2303-2008 -- Enacting KMC 21.OS.08S Establishing a Fuel Flowage Fee of Three Cents 00.03) Per Gallon of Fuel Delivered to the Kenai Municipal Airport. 4. *Ordinanee No. 2304-2008 -- Amending the Official Kenai Zoning Map by Rezoning Approximately Sv: (6) Acres From Suburban Residential, Conservation, and Rural Residential to Rural Residential. S. *Ordinance No. 2306-2008 -- Increasing Estimated Revenues and Appropriations by $35,000 in the Airport Special Revenue Fund and the Airport Storage Building Capital Project Fund for Bid and Construction Phase Engineering. 118 5. *Ordinance No. 2306-2008-- Increasing Esfimated Revenues and Appropriations by $70,000 in the Dock Improvement Capital Project Fund for Culvert Replacement and Paving. *Ordinance No. 2307-2008 -- Transferring $71,731 in the General Fund and Increasing Estimated Revenues and Appropriations by $71,731 in the Visitors Center Heating System Capital Project Fund to Replace the Visitors Center Heating System. *Ordinanee No. 2308-2008 -- Increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Dock Department for Fuel. 9. *Ordinanee No. 2303-2008 -- Increasing Estimated Revenues and Appropriations by $11,457 in the General Fund for Professional Services at the Multi-Purpose Facility. 10. *Ordanance No. 2310-2008 -- Amending KMC 5.35.040 by Increasing the Minimum Distance Between Oil and Gas Well Drilling Locations and Residential or Commercial Buildings From 200 to 600 Feet Unless the Written Permission of the Owner is Obtained: I I. Approval -- Security Assignment of Lease/Lot 3, Block 3, Cook Inlet Industrial Air Park/Integrated Account Management, Ina d/b/a Park and Associates and John C. Parker and Marie L. Parker. I2. Approval -- Security Assignment of Lease/Lots 7 & $, Block 1 F.B.O. SubdivisionJLOROC LLC. ITEM I: COMMISSIONlCOMMITTEE REPORTS 1. Council on Aging ~. Airport Commission 3. Harbor Commission 4, Library Commission 5. Parks 8c Recreafion Gommission 6. Planning 8: Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Mini-Grant Steering Committee ITEM J: REPORT OF THE MA'Y'OR ITEM K: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk 119 ITEM L: DISCUSSIGN 1. Citizens (five minutes) 2. Council ITEM M: PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted. J -- Annual Evaluations of City Clerk and City Attorney. ITEM N: ADJOURNMENT 120 KENAI CITY CdUNCILs}-I9R/~EGryULAR MEETING MAY (yg9bL®O 7i®® P.M. KENAY CITY COUNCEL CHAMBERS http: /~www.ci.lcenai.ak:us MAYOR PAT PORTER, PRESIDING MINUTES ITEM A: CALL TO ORDER Mayor Porter called the meeting to order at approximately 7:04 p.m. in the Council Chambers iri the Kenai City Hall Building. A-I. PLEDGE OF ALLEGIANCE Mayor Porter led those assembled in the Pledge of Allegiance. A-2. ROLL CALL The City Clerk took roll. Present were: Absent was> Linda Swarner, Vice Mayor. A quorum was present. Also present: Brittany Harding; Student Representative A-3. AGENDA APPROVAL Lay down information included: Etem E-4, Substitute Attaohm.euts B and C (Corrected Maps) of Ordinance No. 2302- 2008. CLERK'S REPORT -- Additional Information related to "Government Page" Report MOTION: Council Member Molloy MOVED to approve the agenda with the requested additions and requested UNANIMOUS CONSENT. Council Member Smalley SECONDED the motion. There were no objections. SO ORDERED. A-4. CONSENT AGENDA MOTION: 121 KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 2 Council Member Eldridge MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Smalley SECONDED the motion. There were no objections. 50 ORDERED. ITEM B: SCHEDULED PUBLIC COMMENTS.-- (10 minutes) Mayor Porter presented a desk clock to Fred Macvie on behalf of the council, administration and citizens of Kenai honoring his retirement from 18 years of service to the city at the Wastewater Treatment Plant. ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) -- None. ITEM D: REPORTS OF KPB ASSEMBLY LEGrISLATORS AND COUNCILS None. YTEM E: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker.) E-1. Ordinance No. 228?-2008 -- Amending KMC 14.20.200 (Accessory Structures) by 1) Adding a Section Restricting the Use or Storage of Conex-Type Structures in the Central Commercial and Residential Zones and 2) Requiring Accessory Structures be Built to Match the Primary Building on the Lot and 3) Providing for Temporary Use of Conex-Type Structures During Construction Projects and Incorporating the Existing Requirement that Accessory Structures Over 120-Square Feet Require a Building Perxiiit. (Clerk's Note: A motion to adopt Ordinance No. 2287-2008 was offered at the March 7 9, 2008 and the ordinance was then postponed. At the 4/2/08 council meeting, the ordinance was sent back to the Planning & Zoning Commission for additional review/recommendatiorx and postponed until the May 7, 2008 council meeting for further council considera&on. The motion to adopt is active.) Council Member Ross reviewed the minutes of the April 23, 2008 Planning & Zoning Commission which were included in the packet, reported the Commissioners all opposed the ordinance, and the chair urged council to fail the ordinance. Ross suggested the ordinance be defeated in order for the Commission to begin again and there would less confusion. fihe floor was opened for public hearing. Bob Peters; OId Town, Kenai -- Stated his objection to the ordinance and felt the ordinance should not proceed. 122 KENAI CTTY COUNCIL MEETING MAY 7, 2008 PAGE 3 There being no one else ccZShing to be heard, the public hearing was closed. VOTE: MOTICPt i7NAIVIMOUSLY FAILED. E-2. Ordananee ho. 2300-2008 -- Donating Certain Foreclosed City-Owned Properties Described as Lots 1 - 5, Block 10, Mommsens Subaivision Replat of Addn. 1 & 2 (Parcels 039-103-O1 Through 039-103-O5j, to Amundsen Educational Center for Construction of Housing. MOTYOR: Council Member Eldridge M0~7ED for the adoption of Ordinance No. 2300-2008 and Council Member Smalley SECQNDED the motion. The floor was opened for public hearing. Mark Hilt, CE(3, Amundsen Educational Center -- Hill gave a brief description of the housing program, noting the students are mosey from rural Alaska; the vocational education program teaches carpentry while building homes; they have built three homes in Kenai; the houses are then sold and profits used to build more homes; they have 12 employees; alI the classes are authorized through the State, etc. There being no one else wishing to be heard, the public hearing was closed. It eves suggested interest on the taxes should be included. Vt2TE: M®TIE)N PASSED YTNANIMOUSLY. 123 *Student Representative Harding: No *Student Representative Harding: Yes -KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 4 E-3. Ordinance No. 2301-2008 -- Amending KMC 23.50.010(b) by Adding Two Class Titles to the Employee Classification Plan and Amending KMC 23.5~.030(b}(1) to Allow the Police Chief to be Eligible for Advanced Certification Pay. MOTION: Council Member Eldridge MOVED for adoption of Ordinance No. 2301-2008 and Council Member Smalley SECONDED the motion. The floor was opened for public hearing. There being no one wishing to be heard, the public hearing was closed. Administration reviewed an explanation of the position changes, noting they were reclassifications of established positions. VOTE: *Student Representative Harding: Yes _- Swarner !Absent Smalle Yes Eldrid e Yes Ross Yes ~~ olloy j Yes Ba le Yes ~ Porter ~ Yes I ~~ __ iv"ac'STIC~'iid Prao$ED vi~FiNliravvoi.z. E-4. Ordinance No. 2302-2008 -- Adopting Updated Zoningand Land Use Maps for the Comprehensive Plan for the City of Kenai. MOTION': Council Member Molloy MOVED for adoption of Ordinance No. 2302-2008. Council Member Eldridge SECONDED the motion {noting inclusion of corrected Attachments B and C to be included). The hoar was opened for public hearing. There being no one wishing to be heard, the public heazing was closed. There were no council comments. VOTE: "Student Representative Harding: Yes 124 KENAI CITY COt1NCIL MEETING MAY 7, 2008 PAGE 5 MOTION PASSED UNANIMOUSLY. E-5. Resoiutaon No. 2013$-23 -- Authorizing Sharing Cost Savings Fram the Calendar Year 2007 Health Insurance Plan with Employees. MOTION: Council Member Eldridge MOVED for approval of Resolution No. 2008-23 and requested UNANIMOUS CONSENT. Council Member Smalley SECONDED the motion. The floor was opened for public hearing. There being no one wishing to be heard, the public hearing was closed. City Manager Koch referred to a memorandum included in the packet explaining the cost savings distribufion to employees request related to the 2007 health insixrance plan. VOTE: There were ha objections. SO ORDERED. E-F9. iiesoiutian No. xd3t~$-24 --'Transt""erring ~i3,260 in tine General Fund to Pay Taxes Due on Mommsen Subdivision Praperty Described as Lots 1 - 5, Block 10, Mommsens Subdivision Replat of Addn. 1 8~ 2 (Parcels 039- 103-01 Through 039-103-053). MOTION: Council Member Eldridge MOVED to approve Resolution No. 2008-24 and Council Member Smalley SECONDED the motion. The floor was opened for public hearing. There being na one cxrishing to be heard, the public hearing was closed. MOTION TO AMEND: Council Member Smalley MOVED to amend the last line of the title from "Parcels 039- i03-O1 through 03-103-053" to Parcels 039-103-01 through 0339-103-OS" (deleting the last "3"). Council Member Eldridge SECONDED the motion. 125 KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 6 VOTE ON AMENDMENT: MOTION PASSED UNANFMOUSLY. MOTION TO AMEND: Council Member Molloy MOVED to amend Resolution No. 2608-24 in the fourth whereas, adding after the word taxes, "...and will obtain security for repayment of the taxes and an appropriate rate of interest on the obligation." Council Member Boyie SECONDER the motion. CounciYMernber Ross requested the question be divided and there were no objections stated from the maker and/or the second of the motion. The first division of the question was to add "and will obtain security for repayment of the taxes" VOTE ON AMENDMENT /FIRST PART: MoTFON PASSED uNANFMaavsLY. The second division of the question was to add "...and an appropriate rate of interest on the obligation" after the first amendment, "...and will obtain security for repayment of the taxes..." Council Member Molloy stated he believed the payment of interest would be advantageous to the city, Center, and the citizens of the city. It was also noted, the properties had been foreclosed upon many years ago and had been offered for sale many times over the years, with no interest shown. VOTE ON AMENDMENT (SECOND PART): 126 *Student Representative Harding: Yes *Student Representative Harding: Yes KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 7 MOTION FAILED. VOTE ON MAIN MOTION, AS AMENDED: *Student Representative Harding: Yes ' Sa~arrer ;Absent Smalle Yes Eldrid e Yes ~ Ross Yes Molloy ! No Boyle Yes Porter '', Yes ~ ~ MOTION PASSED. E-7. Resolution No. 2008-25 -- Repealing Resolution No. 2008-10 Which Awarded a Sole Source Contract to Procornm Alaska LLC to Equip the Kenai Fire Department with Hand Held Radios and Award a Sole Source Contract to Motorola Inc. in the Amount Not to Exceed 554,000 to Purchase Hand Held Radio Equipment. MOTION: Council Member Smalley MOVED to adopt Resolution No. 2008-25 and requested UNANIMOUS CONSENT. Council Member Eldridge SECONDED the motion. The floor was opened for public hearing. There being no one wishing to be heard, the public hearing was closed. There were no council comments. VOTE: There were no objections to the request for unanimous consent. SO ORDERED. ITEM F: MINUTES F-I. Regular Meeting of April If:, 2008 -- Approved by consent agenda. &'-2. Notes of April 14, 2008 Budget Work Session -- Approved by consent agenda. 127 *Student Representative Harding: No KENAI CITY COUNCIL MEETING MAY 7, 200& PAGE 8 ITEM G: UNFINISHED BUSINESS -- None. ITEM H: NEW BUSINESS H-1. Sills to be RaY.ified MOTION: Council Memlaer Smalley MOVED to ratify the bills and Council Member Eldridge SECONDED the motion. VOTE: There were nc objecticns. SO ORDERED. H-2. Approval of Purchase Orders Escceeding ;$15,000 MOTION: Council Member Molloy MOVED for approval of the purchase orders exceeding $15,000 and requested UNANIMOUS CONSENT. Council Member Eldridge SECONDED the motion. VOTE: There were no objections. SO ORDERED. H-3. Ordinance No. 2303-2008 -- Enacting KMC 21.05.085 Establishing a Fuel Flowage Fee of Three Cents ($0.03) Per Gallon of Fuel Delivered to the Kenai Municipal Airport. Introduced with approval of consent agenda. H-4. Ordinance No. 2304-2008 -- Amending the Official Kenai Zoning Map by Rezoning Approximately Six (6} Acras From Suburban Residential, Conservation, and Rural Residential to Rural Residential. Introduced with approval of consent agenda. H-6. Ordinance No. 2306-2005 -- Increasing Estimated Revenues and Appropriations by $35,000 in the Airport Special Revenue Fund and the Airport Storage Building Capital Project Fund for Bid and Construction Phase Engineering. 128 KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 9 Introduced with approval of consent agenda. H-6. Ordinance No. 2306-2008-- Increasing Estimated Revenues and Appropriations by $70,000 in the Dock Improvement Capital Project Fund for Culvert Replacement and Paving. introduced with approval of consent agenda. H-7. .Ordinance No. 2307-2008 -- Transferring $71,731 in the General Fund and Increasing Estimated Revenues and Appropriations by $71,731 in the Visitors Center Heating System Capital Project Fund to Replace the Visitors Center Heating System, Introduced wdth approval of consent agenda. H-S. Ordinance No. 2308-2008 -- increasing Estimated Revenues and Appropriations by $40,000 in the General Fund Dock Department for Fuel. Introduced with approval of consent agenda. H-9. Ordinance No. 2309-2005 -- Increasing Estimated Revenues and Appropriations by $11,457 in the General Fund for Professional Services at the Multi-Purpose Facility. In`u'adilCed whit apprav ai of Cur.t3crat agc°rada. H-20. Ordinance No. 2310-2008 -- Amending KMC 5.35.040 by Increasing the Minimum Distance Between Oil and Gas Well Drilling Locations and Residential or Commercial Buildings From 200 to 600 Feet Unless the Written Permission of the Owner is Obtained. Introduced with approval of consent agenda. H-2S. Approvai -- Security Assignment of Lease/Lot 3; Block 3, Cook Inlet Industrial Air Park/Integrated Account Management, Inc. d/b/a Park and Associates and John C. Parker and Marie L. Parker. MOTION: Council Member Molloy MOVED for approval of the security assignment of lease for Lot 3, Block 3, Cook Inlet Industrial Air Park/Integrated Account Management; Inc. d/b/a Park and Associates and John C. Parker and Mane L. Parker. Council Member Smalley SECONDED the motion. 129 KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE IO VOTE: "Student Representative Harding: Yes H-12. Approval -- Security Assignment of Lease/Lots 7 & 8, Block 1 F.B.O. Subdivision/LOROC LLC. MOTION: Council Member Smalley MOVED to approve the security assignment of lease for Lots 7 & 8, Block I, FBO Subdivision/LOROC LLC. Council Member EIdridge SECONI3ED the motion. VOTE: MOTION.PASSED UNANIMOUSLY. YTEM I: COMMISSION/COMMYTTEE REPORTS I-1. Council on Aging -- Council Member Bayle reported the next meeting would be held on May 8, 2008. I-2. 'Airport Commission -- Council Member Molloy reported the next meeting would be held on May 8, 2008 and reminded all of the Air Fair scheduled for Saturday, May I0. I-3. Harbor Commission -- Boyle reported the next meeting would be held. on Monday, May 12. 130 MOTION PASSED UNANIMOUSLY. *Student Representative Harding: Yes KENAl CITY CdUNCIL MEETING MAY 7, 2008 PAGE 11 I-4. Library Commission -- Council Member Smalley reported a meeting was held May 6 and reviewed discussionsjactions taken. I-5. Parks & Recreation Commission -- Council Member Eldridge reported the next meeting would be held July 3, 2008. I-6. Plaansng & Zoning Commission -- Council Member Ross reviewed the April 23, 2008 meeting minutes which were included in the packet. I-Z. Miscellaneous Commissions and Committees I-7a. Beautificatson Committee -- Mayor Porter reported the next: meeting would be held on May 13, 2008. I-7b. Alaska Municipal League Report -- Smalley reported a teleconference was held on May 7, however he was unable to attend. I-7c. Mini-Grant Steering Committee -- Porter reported the next meeting would be held on May 22. ITEM J. REPORT OF THE MAYOR -- Mayor Porter reported the following: • Introduced students from Kenai Central High School present in the audience. • Attended a meeting related to the State of Alaska 50th anniversary and planning of events to take place in Kenai, working with the borough, and with events to begin on July 3. • Attended the "Caring for the Kenai" banquet where Lincoln Wensiey was awarded first place for his "Protect the Dunes" project. • Attended the Red Hat Parade. • Attended a luncheon hosted by British Petroleum and ConocoPhillips. • Welcomed bowlers to the State Bowling Tournament held in Kenai. • Attended a potluck held in honor of Fred Maevie and Jack La Shot's retirement from city employment. • ,She cut the ribbon at the opening of the Aspen Hotel. Porter reported Lincoln Wensiey won first place in the "Caring for the Kenai' contest with his "Protect the Dunes" project. She added, Wensiey applied for mini-grant funding in the amount of $1,500 for reproducing his presentation on to DVDs, printing of brochures, etc. After speaking with Wensiey and his parents, she suggested he request funds from Fish F~ Game and Representative Olson for a portion of the costs. Porter requested council's approval of a 51500 awaxd to Wensiey in order for him to move ahead with reproducing DVD's, purchase of mailers, etc. for distribution. 131 KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 12 MOTION: Council Member Boyle MOVED to appropriate $S00 to the project from the Legislative budget. Council Member Smalley SECONDED the motion. VOTE; *Student Representative Hazding: Yes Swarner Absent ~ Smalle Yes ' Eldrid e ~ Yes Ross Yes Molloy ~ Yes Boyle Yes ~ Porter Yes ~ ~ MOT%ON PASSr,D IUNANit~%OuSLz. %TEM K: ADM%NLSTRATTON REPORTS K-%. City Manager -- City Manager Koch noted the following: + He attended a CityLink meeting and learned a change in the structure was instituted; they wanted to know if the City of Kenai would be interested in an. exchange of information with a Russian city; and, they would be in contact. • He went to Washington, DC and met with all the members of the congressional delegation and spoke to them with regard to the bluff erosion project, as well as other issues affecting the city. _ u° r~ + qt ° r__,. ~ C~t C'°. ~ i ed u':° ~....rk an - .., ray. tCT ..y . S, ar.,. , y 3 gn ., pope the Wal-Mart property purchase on May 5, 2008. The funds were transferred. • He had been speaking with representatives of the Governor's Office related to funding requests included in SB211. • He would be meeting with representatives of the Department of Transportation related to the Marathon Road realignment. • He would be meeting with representatives of the Rasmuson Foundation during their upcoming site visit at the library. + The Corps of Engineers was waiting far the Kenai Peninsula Borough to f-malize its assessments in ordor to complete their report. The City would receive a copy of the draft, after which city personnel would meet with Corps personnel to ideniify the project as a priority of the Corps. • He discussed plans for the VJal-Mart development with regard to the wetland issue and noted, development of that area would need to wait until after the bird nesting season ends in June. Other comments included: + A request for a report at the next council meeting related to the Boys & Girls Club and the Recreation Center being closed on Sundays. 132 KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE I3 Acquiring a camp host for Municipal Park was progressing. K-2. Attorney -- City Attorney Graves reported the following: • Noted the draft ordinance to establish a stipend to be paid to the Planning Lv Zoning Commission was included in the packet as an informatian item, as well as the draft ordinance to raise the council/mayor stipends. He requested council direction for introduction of the ordinances. • The north beach dunes trespass ordinance would be included in the next packet for introduction in order for it to be effective prior to the dip net season if passed. A brief discussion took place related to the draft ethics ordinance. Graves noted, a copy of the draft ordinance was being included in each of the commission/committee mee*,ing packets, as well as had been forwarded to council and employees far review. Anv comments received would be uZCluded in the packet with the ordinance. A request for the development of a City of Kenai conflict of interest form was made, as well as a resolution to apt out of the Alaska Public Offices Commission (APOC) reporting be included on the June 18, 2008 council agenda for consideration. K-3. City Clerk -- City Clerk Frees noted the fallowing: • Reviewed information included in the packet related to the submission of a special assessment petition for paving of Ames Road South of Beaver Loop Road. She noted, the number of signatures was sufficient and the information was forwarded to the city manager for review and his report (required by code) would be due to council within sixty days. • Referred to information included in the packet related to the investigation of including a government page in the Peninsula Clarion to include meeting information for the City of Kenai, City of Soldotna, and Kenai Peninsula Borough. Additional information received during the afternoon was also reviewed. Frees noted, in order to proceed with the page, all three of the government entities would need to participate and the City of Soldotna and Borough had not yet received the informafion to consider. • Noted there had been a number of discussions by city clerks related to opting out of APOC reporting requirements. • -Noted the inclusion. of a commission/committee attendance report in the packet for council's review. ITEM L: rJTSCUSSIOLd L-1. Citizens {€ive msnutes) 133 KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 14 'Natasha Ala -- Introduced herself as the Executive Director of the Kenai Visitors and Convention Bureau and invited all to the summer art show reception and distributed posters of the event. Fred Braua, Vice Pressdent, KVCB -- Urged council and city officials to look closely at the requirements for the mechanica]_ system to be replaced at the Center, noting humidity control was critical for the protection of the artifacts and exhibits in the museum portion of the building. Braun also gave a short report related to real estate markets in the area. Bab Peters, OId'Pawn, Kenai -- Peters suggested the newspaper do public service ads for the governments; stated he was impressed with the newsletter recently mailed; and; thanked City Manager Koch for his work on the bluff erosion and library projects. L-2. Council -- Bogle -- Stated he agreed with Braun with regard to the humidity control concerns, is the city's responsibility to take care of the building and, if necessary, at additional cost to be sure the system is appropriate for the need. ' Molloy -- Received comments encouraging the city to do a better job in maintenance of roads, i.e. crack-sealing Forest Drive. Koss -- No comments. Harding -- No comments. Eldridge -- • Reported he attended a meeting related to the improvements to Kalifornsky Beach Road and noted, the road would only be widened, without turning lanes or bike path. He added, culverts would also be replaced with the road being closed during the culvert replacements. • 'Noted the Economic Development District changed its by-laws to require only one designated city representative to the board, i.e. elected or employee of the city. Smalley -- • Reported a meeting would be held on Monday, at the library to discuss development of a slogan for the library expansion. • Stated concerns related to the closure of Kalifornsky Beach Road during the dip net fishery, i.e. south beach access. • Suggested the insurance policy covering the Visitors Center exhibits might require a proper heating/humidity system. 134 KENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 15 Porter -- • Thanked city administration in facilitating the sale of the Wal-Mart property. • Reported the Kenai Community Foundation received its SO1{C)(3) status. ITEM M: PENDING LEGISLATYON (This item lists [egis[atiori which wil[ be addressed at a later date as noted.) EXECUTIVE SESSION -- Annual Evaluations of City Clerk and City Attorney. MOTION: Coiu~cil Member Molloy MOVED to convene in an executive session of the Council of the City of Kenai concerning matters that tend to prejudice the reputation and character of anather -- to conduct annual evaluaticns of the City Clerk and City Attorney. Council wilt meet first together and then with the City Attorney and then with the City Clerk. Council Member Eldridge SECONDED the motion. VOTE: Swarner Absent Smalle i Yes i Eldrid e I Ye- s ~ Ross Yes Mol1o ~ Yes ~ Bo le Yes ~ Porter ~ Yes ~ i MOTION FASSED UNANIMOUSLY. EXECUTIVE SESION BEGAN: 8:b8 P.M. BACK TO ORDER: 10:52 P.M. Council Member Molloy reported the council met in executive session regarding the evaluation of the City Attorney. The City Attorney received a positive evaluation and the Mayor and Vice Mayor would meet with the City Attorney to go over the specifics of the evaluation. Council Member Molloy reported the council met in executive session regarding the evaluation of the City Clerk. The City Clerk received a positive evaluation and the Mayor and Vice Mayor would meet with the City Clerk to go over the specifics of the evaluation. ITEM N: ADJOURNMENT There being no Further business before the Council, the meeting adjourned at approximately 10:53 p.m. 135 FCENAI CITY COUNCIL MEETING MAY 7, 2008 PAGE 16 Minutes submitted by: Carol L. Freas, City Clerk *The student may cast advisory votes on all matters except those subject to executive session discussion. Advisory votes shall be cast prior to the official council vote and shall not affect the outcome of a vote. Advisory votes shall be recorded in the minutes, Student representatives may not move or second items during a council meeting. 136 KENAI CITY COUNCIL. WORK ~E63ION APRIL 16, 2008 6:Q0 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR PAT PORTER, PRESII~IIVG NOTES Council present: P. Porter, M. Boyle, R. Molloy, R. Ross, B. Eldridge, H. Smalley Staff present: C. Freas, C. Graves, M. Bondurant, L. Semmens Laura Bruce, Director of clsent Relations and Bertram Wagnon, Portfolio Manager of .Alaska Permanent Capital Management were introduced. A presentation was made related to exploring how to protect the Airport Fund, giving ahistory/background of their group who manage money for municipalities and corporations. Wagnon reviewed an informational packet distributed to council which discussed the City of Kenai and a proposed Airport Endowment Fund. The packet reviewed goals, inflation effect on purchase power, asset allocation, etc. Wagnon added, the next step would be to adopt an investment policy. Council was asked if it wished to proceed along the line of developing an Airport permanent fund. Council requested a modeling and another work session to review it. The work session ended at approximately 6:51 p.m. Notes prepared by: Carol L. Freas, City Clerk 137 KENAI CITY CpTTN~IL BUDCsET W®RK SESSION KEN14I CI'T`Y C63UNCIL CII,2MSERS APIUL zI, ~ooa fi:®0 P.H'I. MAYCDI2 PAT POR'£ER, PRESII7IN~ rl®z~Es Council present: R. Ross, B. Eldridge, R Molloy, H. Smalley, M. Boyle, P. Porter, L. Swamer Staff present: C. Freas, R. Craig, C. Kopp, B. Frates, M. Tilly, J. La Shot, E. Hicks, L. Semmens, R. Koch City Manager Koch distributed a status of grant-funded projects and reviewed it with council and administration. Discussion continued from the Aprii 14, 2008 work session: Legislative -- Findinss: The following adjustments were agreed to be included: • City newsletter, published twice a year. Include X5,000 for this expense. Mini-Grant Program. Decrease the amount from $5,000 to X3,000. • Litter Control -- check whether the program wIll continue and what costs may be included. • Increase the mayor stipend to $1,000 and council members to $500 per month. • Initiate stipend paid to Planning 8s Zoning Commission members at $100 per month.. it was noted, tine Legislative budget would be increased by X32,21.0 with the above- fisted changes/additions. • CARTS request for X5,000 donation -- administration is to discuss the possibility of initiating a partnership to use Senior Center vehicles in the CARTS program. This item will come back to council for consideration later in the year. • Addition of $10,000 for the purchase of a video camera, audio streaming software with archiving to the city webpage capabilities. Paliae -- Findines: Council approved the inclusion of the following into the draft budget: • At the request of the Kenai Central High School principal, a request was made for school resource police officer to work at KCHS and other city schools. It was noted, no school district funding was available and the school would provide office space and supplies. Council consensus was to include afull-time public safety officer and non-sworn officer (subtract approximately X7,200 from the budget as this position would take the place of one, half-time seasonal officer} and allow a sworn officer to work half-time in the schools. Salaries -- 139 KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 21, 2008 PAGE 2 of 3 Discussion foIlowed related to a salary increase of iwo percent {2%) (in addition to the COLA increase) who are at the tap end of the salary schedule. It was noted, there were current 12 employees (not counting police officers dug to the increase in office pay scales made to encourage officer recruitment anal to keep officers on the force). The two percent represented a step increase; the increase would not change the base salary; and, cost to the city would be approximately $11,600. Findings: Consensus was of agreement the issue should be presented in ordinance form. The remaining department budgets were reviewed: Water -- Findings: No changes. Sewer -- Findings: No changes. Sewer Treatment Plant -- Findings: No changes. Airport Fund -- Findings: No changes. AirportfAi~eld -- Findings: No changes. Airport Admiasstratioa -- Findings: No changes. Airport Other Than Buildings -- Findings: No changes. Airport Traiaing Facility -- A brief discussion took place related to need for additional parking. Findings: No changes. 140 KENAI CITY COUNCIL BUDGET WORK SESSION APRIL 21, 2008 PAGE 3 of 3 Senior Citizens -- Koch discussed changes in the format of the Senior Citizen budget in order to fmd the real costs for services, placing income and costs where they belong. Porter stated concerns she had with the budgets as follows: Bid not want to raise the activities position five hours as she believed food more important. Funds allocated for chairs in the dining room. It was noted, 100 chairs would be purchased at $70 apiece. Findings: Wait on increasing the activities position; cut $5,800 from the budget for added hours; remove referenced to Senior Connection as the $15,000 donations represent other than just Senior Connection; remove $15,000 donation and increase transfer from the General Fund ($9,200). Enterprise Fund -- A brief discussion took place related to the $50.00 increase for apartment rentals. Findings: Consensus: Raise the rental rate :?50.00 and no other changes. Permanent Fund, Land Sales -- Findings: No changes. Schedule of Replacements -- Findings: No changes. Wrap Up: Semmens stated he would prepare the ordinance using the numbers fmm the work sessions. He requested council to discuss any proposed amendments to the budget with him prior to the public hearing in order for him to have the correct amount information; etc. available. Koch noted SB221 (forwarded to the Governor for consideration) included in it $1 million for public improvements (fibrary, Muff erosion, water/sewer projects) and wanted to contact the Governor to emphasize the need. Because it was a work session and not a pubfic meeting where direction or changes could be made, it was suggested Koch write a letter of justification as discussed with the Capital Improvement List as previously approved by council and submitted to the Governor and Legislature. The work session ended at approximately 8:37 p.m. Notes prepared by: Carol L. Frees, City Clerk 141 .. w a ~ ur c~ z d a I-• a O ~ ~ ~ ~ 0 ~ Q ~ ~ U N Q r w ¢ ~ ~ o H o ,x 5 c°~v ~ a Q ~ N ~* I . ~ Z o z a U m o N r ~" a ~ 5 cv ~ v~ w O >' ~ r3 N ~ O L3 Z h W W N ~ W = ~ Z W U N U ~ ~ o ~ w O °z z ® ~ > y z > o 143 0 a a a J C_9 '~ d U W W Z S U T ~ o ~ o N C'J p N 6(j } W Q L1. (~ o W ~ ~ Z ~ w O {,~ ey ~ J ~ U ~ Q 0. U 0 0 m ~i M Z W W Z U' Z W U' Z J_ ()] W 0 CQ CL a Z Q Z O H U rr Z O U Z Q m m U W F- 2 K 4 z Z to W K Suggested. by: Administration CITY CAF KENAI ®RDINANCE NO. 231I-2OC>$ AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, FINDING THAT CERTAIN CITY-OWNED LAND, IDENTIFIED AS TSN Rl l W SEC 4 SEWARD MERIDIAN KN 088005.3--CENTRAL VIEW SUBDIVISION TRACT B, THIRD RECORDING DISTRICT, KENAI, ALASKA, (KPB PARCEL NO. 04901062j, IS DEDICATED FOR PARK PURPOSES. WHEREAS, Kenai Municipal Code 22.05.1 IO provides for the dedication of lands for a public purpose if so determined by the City Council by ordinance; and, WHEREAS, Resolution No. 2007-48 authorized the purchase of the property described above for wetlands mitigation to be retained by the City and reserved for park purposes; and, WHEREAS, on February 2, 2008, the City of Kenai issued and recorded a conservation easement on the property which is recorded at 2008-00 1 42 1-0 in the Kenai Recorder's Office; and, WHEREAS, the conservation easement restricts and regulates certain activities on the premises n~ order to preserve conservation values of the property; and, WHEREAS, the property is zoned Conservation and contains wetlands and drainage into the Kenai River. NOW, THEREFORE, BE iT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that certain City-owned, identified as T5N Rl 1 w SEC 4 Seward Meridian KN 0880053--Central View Subdivision Tract B, Third Recording District, Kenai, Alaska (KPB Parcel No. 04901062), is reserved for park purposes in compliance with the conservation easement on the property. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA this fourth day of June, 2005. PAT PORTER, MAYOR ATTEST: Carol L. Frees, City Clerk Introduced: May 24, 2008 Adopted: June 4, 2008 Effective: July 4, 2008 {5f7 J08}kh 147 Suggested by: Council/Administration CITI' OF KEI3~I ORDINANCE NO. 2312-20®8 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 14.05.010 BY ADDING A NEW SUBSECTION TO COMPENSATE PLANNING AND ZONING COMMISSIONERS Afi THE RATE OF $100 PER MONTH. WHEREAS, under Title 29 of the Alaska Statutes, the Planning and Zoning Commission has decision making authority for a variety of important planning and permitting land use issues for the City of Kenai; and, 4UHEREAS, the members of the Planning ar~d Zoning Commission naw receive na compensation for their duties; and, WHEREAS, based upon the considerable time devoted to the duties of Planning and Zoning Commissioners, they should receive compensation of $100 per month. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, that KMC 14.05.010 should be amended by adding a new subsection (d), as follows: jd} Members of the Planning and Zonine Commission shall be com+~ensated at *1?e rate of X1.00 ner month. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of June, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: May 20, 2008 Adopted: June 4, 2008 Effective: July 4, 2008 149 Suggested by: Administration CITY OF K.~NAY NO. 2323-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING THE ANNUAL BUDGET FOR THE FISCAL YEAR COMMENCING JULY I, 2008 AND ENDING JUNE 30, 2009. WHEREAS, it is a requirement of the Code of the City of Kenai, Alaska, that the City Council, not later than the tenth dog= of June, adopt a budget for the following fiscal year and make appropriation of the monies needed. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA as failows: Section l: That certain. document entitled "City of Kenai Fiscal Year 2009 Annual Budget" which is available for examination by the public in the Office of the City Clerk and is incorporated herein by reference is hereby adopted as the budget for the City of Kenai for the fiscal year commencing July 1, 2008 and ending June 30, 2009. Section 2: The following sums of money are hereby appropriated for the operations of the City of Kenai far rl-xe fiscal year cemmencing ar. the first day of July, 2008, and ending the 30th day of June, 2009, to be expended consistent with and subject to the restrictions, procedures, and purposes set forth in the Code of the City of Kenai and to be expended substantially by line item in the manner shown in the budget adopted by Section 1 hereof: General Fund $ 12,607,129 Congregate Housing 482,586 Permanent Funds 13,000 Water and Sewer Fund 1,872,316 Airport Fund 2,597,808 Senior Citizen Title III 534,627 Senior Citizens Fund 192,371 151 Ordinance No. 2313-2008 Page Two PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of June, ?008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: May 21, ?008 Adopted: June 4, 2008 Effective: July 1, 2008 Approved by Finance:~~~ (5/13/2008] hl 152 Suggested by: Councilor Smalley CITH C9F €SENAI mRDYNANCE NO. 23I4-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ENACTING KMC 23.55.080 PROVIDING FOR LONGEVITY PAY OF TWO PERCENT (2%] FOR CERTAIN EMPLOYEES IN STEP CC IN THE CITY OF KENAI SALARY SCHEDULE. WHEREAS, the City of Kenai Salary Schedule contains nine °Steps" from Step A to Step CC; and, WHEREAS, the time period to advance between Steps B to F is one year and to advance between F to CC is two years; and, WHEREAS, when an employee advances to a higher Step, he/she receives a two percent (2 ;%] pay increase; and, WHEREAS, it takes ten and one-half years to advance from Step A to Step CC; and, WHEREAS, when an employee reaches Step CC he/she is not able to advance to a higher Step, but does receive a cost of living adjustment in his/her Step when the entire payroA schedule is adjusted, and, WHEREAS, under the current system employees with over ten years continuous sercrice with the City are frozen at Step CC; and, `,~JHEP.EAS, Iongew: y pay would reward the employees for their long-term service w:u. the City and provide an incentive for them to remain in City service; and, WHEREAS, it is in the best interest of the City of Kenai to give certain employees frozen at Step CC a longevity pay bonus of two percent (2%). NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that KMC 23.55.086 Longevity Pay is enacted as follows: 23.55.080 Longevsty Pay All regular employees who have been at Step CC for a period of at least two years as of July 31 shall be paid a longevity bonus of two percent (2%) of his/her base annual salary (i.e. excluding overtime). The longevity pay shall be paid just once a year on the August payroll. Notwithstanding the above, any employee who has received a Range increase or a non-cost of living pay increase within their current pay Range in the 12 months prior to July 31 is not eligible far a Longevity Pay bonus. 153 Ordinance No. 2314-2008 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this fourth day of June, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: May 20, 2008 Adopted: June 4, 2008 Effective: Juty 4, 2008 154 Suggested by: Administration CITY OF I{ENAI ORDINANCE NO. 2345-2008 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $1,358.38 1N THE GENERAL FUND TO PAY FOR POLICE UNIFORMS AND EQUIPMENT. WHEREAS, the Kenai Police Department works cooperatively with the Drug Enforcement Administration {DEA) and Alaska Bureau of Alcohol and Drug Enforcement (ABADE) on Kenai Peninsula drug enforcement investigations that directly impact the City of I{enai; and, WHEREAS, the Kenai Police Department has received $1,358.38 from the DEA as equitable sharing of a cash forfeiture from a Kenai area drug dealer; and, WHEREAS, the Kenai Police Department needs to provide new uniforms and equipment to one { 1) Police Officer, and. four !4) Seasonal Enforcement Officer positions during the remainder of FY08; and, WHEREAS, the funds to pay for these a,7eeded uniform supplies and equipment are not available within the FY08 budget; and, WHEREAS, the transfer of these funds to the Police, Operating Supplies account will assist the department with the purchase of these items. NOV1, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Forfeitures $1,358.38 Increase Appropriations: Police -Operating Supplies $1,358.38 PASSED BY THE COUNCIL flF THE CITY OF KENAI, ALASItiS, this fourth day of June, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Cterk introduced: Adopted: Effective: Approved by Finance: (OS/13J2008) h1 May 21 ; 2008 June 4, 2008 June 4, 2008 155 Suggested by: Administration CITY OF KENAI QRDINANCE NO. 2315-200$ AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $24,500 FOR REPAIR OF THE RETAINING WALL ON SOUTH SPRUCE STREET. WHEREAS, the retaining wall at the end of South Spruce Street was damaged; and, WHEREAS, the persons responsible far the damage will make restitution through their insurance companies; and, WHEREAS, the street department repairs and maintenance account does not have sufficient funds to meet this and other needs through the end of the year: and, WHEREAS, the administration recommends the estimated insurance proceeds be appropriated for the repair proiect. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Restitution $24,800 Increase Appropriations: Street Department -Repair and Maintenance $24,800 PASSED BY THE COUNCIL OF THE CITY OF KEivAi, ALASKA, tnis fourth day of June, 2008. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: Adopted: Effective: Approved by Finance: (OS/ 14/2008) ch May 20; 2005 June 4, 2008 June 4, 2008 157 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2317-2008 ART ORDINANCE OF THE COUR'CIL OF THE CITY OF KENAI, ALASKA, ENACTING KMC 13.20.630 PROHIBITING TRESPASS IN POSTED ENVIRONMENTALLY SENSITIVE SARTD DUIti"E AREAS IN A PORTION OF THE NORTH SHORE OF THE KENAI BEACH. WHEREAS, the North Shore area of the Kenai Beach contains environmentally sensitive sand dunes that are vital to the local beach eco-system; and, ~XjHEREAS, increased use and activity on the North Shore, including the dip net fishery, has markedly increased the need for protection of the dunes; and, WHEREAS, motor vehicle anal/or foot traffic and activity on the sand dunes, and in particular the grassy areas on such sand dunes, has caused significant damage to them; and, WHEREAS, in order to protect the sand dunes from such damage, the City of Kenas needs to fence off the environmentally sensitive areas and post them as "NO TRESPASSING;° and, WHEREAS, such fencing and/or posting may be either temporary or permanent depending on the need to protect the environmentally sensitive areas; and, WHEREAS, it is not the intent of this ordinance to reduce use or access to the non- dune beach areas of the North Shore; and, WHEREAS, in order to enforce the "NO TRESPASSING" rule in the sand dunes, it should be a violation of the Kenai Municipal Cade to trespass on such areas; and, WHEREAS, it is in the best interest of the City of Kenai and its citizens to enact an ordinance making it illegal to trespass on the posted sand dunes. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI that the City of Kenai Code of Ordinances is hereby amended by adding: 2. Anew section to be numbered KMC 13.20.030 which shall read as Follows: IOViC 13.20.030 Protection of North Shore Sand Dunes [a] The intent of this section is to protect the environmentally sensitive sand dunes on a portion of the North Shore of the Kenai Beach. For purposes of this section the North. Shore 159 Ordinance No. 2317-2008 Page 2 of 2 area of the Kenai Beach is the area shown on Appendix III of Title 13 of the Kenai Municipal Code. [b] It is a violation; [i} to enter on sand dunes area(s) that are reasonably marked as "No Trespassing," or ii] to remain on such designated sand dune area after th.e person has been requested to leave the sand dune area. by someone with the apparent authority to do so. [c] The City Manager oz hisf her designee is authorized to cause the posting of signs designating "No Trespassing." [d) For purposes of this section, a `sand dune° is defined as a naturaIly occurring accumulation or sand ridges or mounds landward of the high water mark. [e] The provisions of this section do not apply to governmental officials in the performance of their offiicial duties, where such duties reasonably require the official to go upon the designated sand dune area. [fJ A violation of this section shall be punishable as provided in KMC 13.05.010. A map titled "AppendixSlI," and attached to this ordinance, to be codified and included in KMC 13.20. PASSED $Y THE COUTNCIL OF THE CITY OF KENAi, ALASKA, this fourth day of June, 2008. PP.T PORTER, MAYOR. ATTEST: Carol L. Freas, City Clerk Introduced: May 20, 2008 Adopted: June 4, 2008 Effective: July 4, 2008 160 Ordinance No. 2317-2008 W ~c ~~ 5~ r / Doti ~'~~ Appendix III 161 COUNCIL ON AGING MEETING MAY 8, X008 KENAI SENIOR CENTER 7:00 P.M. AGENDA YTEM I: CALL TO ORDER & ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETINt'r SiT ARC -- March 13, 2008 ITEM 4: PERSONS SCHEDULED fi0 BE HEARD a. Joe Maoney -- Kenai Youth Facility ITEM 5: OLD BUSINESS a. Discussion -- F'Y09 Budget ITEM 6: NEW BUSINESS ITEM 7: REPORTS a. Council on Aging Chair b. IIirector c. Council Liaison ITEM 8: QUESTIONS Sv COMMENTS ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM IO: IIdFORMATION a. Council Action Agendas of April 2 and 16, 2008. b. Memorandum -- Draft Ethics Ordinance ITEM Z I: ADJOURNMENT 163 COUNCIL ON AGING MEETING MAY 8, 2005 KENAI SENIOR CENTER 7:00 P.M. VICE CHAIR LINDA FLOWERS, PRESIDING MEETING SUMMARY %TEM 1: CALL TO ORDER & ROLL CALL Vice Chair Flowers called the meeting to order at approximately 7:00 p.m. Roll was confirmed as follows: Commissioners present: L. Flowers, E. Jones, R. Jurgensen, V. Geller, B. Osborn, M. Milewski Commissioners absent: J. Hollier, F, Wilson, H. Bronner Others present: Senior Center Director R. Craig A quorum was present. ITEM 2: AGENDA APPROVAL MOTION: Commissioner Geller MOVED to approve the agenda and Commissioner Osborn SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY -- March l3, 200$ The meeting summary of March 13, 2008 was approved as submitted. ITEM 4: PERSONS SCHEDULED TO BE HEARD 4-a. Joe. Mooney -- Kenai Yauth Facility Mooney spoke regarding a mentor program between seniors and youth 12 to 19 years old. ITEM 5: OLD BUSINESS 5-a. Diseussian -- FY09 Budget Craig reviewed the FY09 Senior Center budget that would be included in the City of Kenai FY09 budget. She added, the ordinance to approve the FY09 budget would be introduced at the May 20, 2008 City Council meeting. ITEM 6: NEW BUSINESS -- None YTEM 7: REPORTS 164 7-a. 'Council on Aging Chais -- None 7-1s. Direetor -- None ?-o. Council Lsaison -- None ITEM 8: QUESTIONS & COMMENTS -- None ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD -- None ITEM I0: INPORMATYON IO-a. Gouncil Action Agenda Items from April 2 and 16, 2008. IO-m. Memorandum -- Draft Ethics Ordinance ITEM I1: ADSOURNMENT MOTION: Council Member Osborn MOVED to adjourn and Council Member Geller SECONDED the motion. There were no objections. SO ORDERED. There beingmo further business before the Council, the meeting was adjourned at approximately 8:30 p.m. Meeting summary prepared and submitted by: Corene Hall; Deputy City Clerk COUNCIL ON AGING MEETING MAX 8, 2008 PAGE 2 165 KENAI AIRPORT COMMISSION MAY 8, 2008 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. AGENI3A ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY -- April 10, 2008 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM S: OLD BUSINESS ITEM 6: NEW BUSINESS a. Discussion/Recommendation --Fuel Flowage Fee ITEM 7: REPORT a. Commission Chair b. Airport Manager c. City Council Liaison ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS ITEM 9: PEyyRSO**NppS NOT SCHEDULED TO BE HEARD ITEM 1{F: IL\S`CL~48P8ATICli iTEiAiiv a. Kenai City Council Meeting Action Agendas for April 2 and 16, 2008. b. Memorandum -- Draft Ethics Ordinance c. Kenai Peninsula Air Fair Poster d. Kenai Cafe Spring Hours e. Aqua Massage Flyer ITEM II: 167 KENAI AIRPORT COMMISS%ON MAY 8, 2008 KE~AI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY IiNACKSTEDT, PRESIDING MEETING SUMMARY ITEM P: CALL TO ORDER AND ROLL CALL Chair Knackstedt called the meeting to order at approximately ?:O5 p.m. Roll was confirmed as follows: Commissioners present: J. Bielefeld, H. Knackstedt, C. Versaw, L. Porter Commissioners absent: J. Zirul, E. Mayer, D. Haralson Others present: Airport Manager M. Bondurant, Council Member B. Molloy A quorum was present. ITEM 2: AGENDA APPROVAL MOTION: Commissioner Bielefeld MOVED to approve the agenda and Commissioner Porter SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY -- April 10, 2008 MOTION: Commissioner Bielefeld MOVED to approve the meeting summary of April i0, 2008. Commissioner Versaw SECONDED the motion. There were no objections. SO ORDERED.' ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None ITEM 5: OLD BUSINESS -- None ITEM 6: NEW BUSINESS 5-a. DiscussionJRecoxnmendation -- Fuel Flowage Fee There was general discussion on the new fuel flowage fee and to whom it would apply. Commissioner comments included: • Some were in favor of the Fees. • Belief the airport should make money from real estate instead of fees. • Belief the fee would decrease business. 168 MOTION: Commissioner Porter MOi7ED to accept Administration's recommendation to adopt Ordinance 2303-2008. Commissioner Versaw SECONDED the motion. iTOTE: Zirul ~ ABSENT Bielefeld , NO Knackstedt YES ~ Versaw i YES Mayer ABSENT ~ Haralson ~ ABSENT- ~ Porter YES i MOTION FAILED. ITEM 7: REPORT 7-a. Commission Chair -- Knackstedt reported on the Permanent Fund Investment presentation he attended. 7-b. Airport Manager -- Bondurant reported on her attendance at the Aviation Trade Show in Anchorage; noted the urea building was out to bid; RFPs for professional services were being evaluated; new airport fees would go into effect on June 1, 2008; and, minimum standard development information would be in the next packet. 7-c. City Council Laaisoa -- Molloy reported of the signing on the Wal-mart property and other actior. agenda items from the May 7, 2008 meeting. ITEM S: COMMISSIONER COMMENTS AND QUESTIONS Bieleffeld -- reported he reviewed the draft ethics ordinance included in the packet and noted approximately 25% of the orainance wouid affect him and u passed, he would resign from the corr~rr~ission. Kaaekstedt -- Requested floatplane basin development be placed on the June agenda. ITEM 9: PERSONS NOT SCHEDULED TO BE BEARD -- None ITEM 10: INFORMIITIQN ITEMS 10-a. Kenai City Council Meeting Action Agendas for April 2 and 16, 2008. 10-b. Memorandum -- Draft Ethics Ordinance 10-c. Kenai Peninsula Air Fair Poster i0-d. Kenai Cafe Spring Hours 10-e. Aqua Massage Flyer AIRPORT COMMISSION MEETING MAY 8, 2008 PAGE 2 169 r~EM ii: AD,ra~RNNaENT Mc~~rzoN: Commissioner Bielefeld MOWED to adjourn and Commissioner Versau~ SECONDED the motion. There were no olajections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at approximately 8:20 p.m. Meeting summary prepared and submitted: Corene Hail, Deputy City Clerk AIRPORT COMMISSION MEETING MAY 8, 2008 PAGE 3 170 KENAI HARBOR COMMISSION MEETING MAY 12, 200$ CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1: CALL TO ORDER 8s ROLL CALL ITEM 2: AGENDA APFROi7AL ITEM $: APPROVAL OF MEETING SUMMARY -- April 7, 2008 ITEM 4: PERSONS SCHEDULED TO SE HEARD ITEM 5: OLD BUSINESS a. Dascussioa -- Bird Viewing Platform ITEM 6: NEST I3USENESS ITEM Z: REPORTS a. Director b, City Council Liaison ITEM $: COMMISSIONER COMMENTSIOUESTIONS ITEM 9: PERSONS NOT SCHEDULED TO SE HEARD ITEM 10: %N~'ORMATION a. Kenai City Council Action Agendas of April 2 and 16, 2008. b. Memorandum -- Draft Ethics Ordinance c. Dock Rate Schedule -- May 1, 2008 ITEM 11: ADJOURNMENT "Site visit to proposed location of bird viewing platform immediately follo`uing meeting. 171 IIENAI KARBOR COMMISSION MEETING MAX I2, 2005 CYTY COUNCIL CHAMBERS 7:00 F.M. CHAIR TOM THOMPSON, PRESIDING MEETING SUMMARY ITEM I: CALL TO ORDER & ROLL CALL Chair Thompson called the meeting to order at approximately 7:05 p.m. Roll was confirmed as follows: Commissioners present: P. Morin, G. Foster, A. Poynor, D. Gregory, T. Thompson, R. Peters Commissioners absent: B. Osborn Others present: Parks £~ 12ecreation Director B. Frates, Council Member M. Boyle A quorum was present. ITEM 2: AGENDA APPROVAL Frates noted the following change: ADD: 5-b. Dipnet Fishery MOTION: Commissioner Peters MOVED to approve the agenda including the above-mentioned Iaydown and Commissioner Gregory SECONDED the motion. There were na al7jartians. SO ^RDEIv~S3, ITEM 3: APPROVAL OF MEETING SUMMARY -- April 7, 2008 MOTION: Commissioner Peters MOVED to approve the meeting summary of April 7, 2008 and Commissioner Foster SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO I3E HEARD -- None ITEM 5: OLD BUSINESS 5-a. Discussion -- Bird Viewing Platform Because the Commission had a number of questions regarding the Bird Viewing Platform, it was noted Kenai Watershed Forum Executive Director Robert Ruffner was present to answer them. 172 Robert Ruffner, ExeeuYxve DareotorJKenai Watershed Forum -- Ruffner noted the follo~nng: • There could be a cost savings if work was done at the same time as the culvert replacement. + Ideally the work should be done in June prior to the dipnet fishery. • Pylons for the platform would be installed during late summer. + His office would work on obtaining the necessary permits. Commissioners agreed a site visit after the meeting would give a better visual of the parking situation and amount of restoration work needed. S-b. Discussion -- Dipnet Fishery Commissioner Peters reviewed an article written by Brandon Loomis in the Anchorage Daily News entitled, "Dipnetting Frenzy" and suggested accurate information be provided to the media early. ITEM 6: NEW BUSINESS -- None ITEM 7: REPORTS 7-a. Director -- Frates noted Council would be addressing a $70,000 appropriation in the Dock Improvement Capital Project Fund for culvert replacement and paving, a $40,000 appropriation for dock fuel, fencing and signage for the dunes, and, the fire incident at the dock facility. ?-b. City Counoai Liaison -- Boyle reviewed the draft ethics ordinance included in the packet and requested questions be directed to the city attorney. ITEM S: COMMISSIOP:ER COPdiMFPST^~f*,JUESTIONS -- None ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD Ken Tarbox, Impaired River Status -- Encouraged the City to request the Department of Environmental Conservation (DECD perform carbon sampling below Mile 10 of the Kenai River (specifically from Mile 1.5 to 5), otherwise this portion of the River could remain in an impaired status longer. ITEM 10: INFORMATION 10-a. Kenai City Council Acfion Agendas of April 2 and 16, 2008. 10-b. Memorandum -- Draft Ethics Ordinance 1®-e. Dock Rate Schedule -- May I, 2008 ITEM 11: F,DJOURNMENT HARBOR COMMISSION MEETING MARCH 10; 2008 PAGE 2 173 MOTYON: Commissioner Peters MOVED to adjourn and Commissioner Gregory SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at approximately 8:50 p.m. Meeting summary prepared and submitted by: Lorene Hall, Deputy City Clerk "The Commission adjourned and gathered for a site visit to the proposed location of the bird viewing platform. HARBOR COMMISSION MEETING MARCH 10, 2008 PAGE 3 174 KENAI LIBRARY COMMISSION KENAI COUNCIL CHAMBERS MAY 6, 2005 ?:d0 P.M. AGENDDA ITEM 1: CALL TO ORDER 8c ROLL CALL ITEM 2: AGENDA APPROVAL ITEM B: APPROVAL OF MEETING SUMMARY -- April 1, 2008 ITEM 4: PERSONS SGHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion -- Library Consultant for Fundraising b. Discussion -- Library Expansion Project ITEM 6: NEW BUSINESS ITEM 7: REPORTS a. Duector b. Friends of the Library c. City Council Liaison ITEM 8: COMMISSION GOMMENTS/QUESTIONS I T Elvi y: PERSONS NOT SCHEDULED Tv BE HEARD ITEM iQ: INFORMATION a. Kenai City Council Action Agendas of April 2 and 16, 2008. ITEM l I: 175 KENAI LIBRARY COMMISSION KENAI COUNCIL CHAMSERS MAY 6, 2008 7:00 P.M. CHAIR EILEEN BRXSON, FRESIDING MEETING SUMMARY ITEM 1: CALL TO ORDER ~ ROLL CALL Chair Bryson called the confirmed as follows: Commissioners present: Commissioners absent: Others present: meeting to order at approximately 7:05 p.m. Roll was K. Heus, E. Bryson, R. Peters, M. Graves, C. Brenekle, C. Cook E. DeForest Library Director M. Joiner, Council Member H. Smalley A quorum was present. YTEM 2: AGENDA APPROVAL Bryson noted the following: ADD: 10-b. Memorandum -- Draft Ethics Ordinance MOTION: Commissioner Heus IIlOSTED to approve tl,.e agenda including the above-sentioned laydown item. Commissioner Srenckle SECONDED the motion. There were no objections. SO ORDERED. YTEM 3: APPROVAL OF MEETING SUMMARY -- April 1, 2008 Commissioner Heus noted under item 5-b, Jim Evenson should be Thor Everison. MOTION: Commissioner Heus MOVED to approve the meeting summary of April 1, 2008 as corrected. Commissioner Brenckle SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None ITEM 5: OLD BUSINESS S-a. Discussion -- Library Consultant for Fundraising 176 Joiner noted the information included in the packet from the consultants. Heus reported there would be a meeting on Monday, May 12, 2008 at the Library to create a logo and slogan for the fundraising campaign. 5-b. Dacussion -- Library Expansion Project Joiner presented the drawings completed by Klauder and Company and an outline for the site visit on May 14, 2008 by the Rasmuson Foundation. It was suggested the site visit be publicized and refreshments be served. ITEM 5: NEW BUSINESS ITEM ?: REPORTS ?-a. bisector -- Joiner noted the May report included in the minutes. ?-b. Friends of the Labrarq -- Heus reported 50 people attended the Foreign Language Open House and noted there were three vacancies on the Friends Board. ?-e. Citq Council Liaisoss -- Smalley reviewed the action agenda items from the April 2 and 16 City Council meetings. ITEM 8: COMMISSION COMMENTSIOUESTIONS Several commissioners noted interest in the fishing rod loaner program. YTEM 9: PERSONS NOT SCHEDULED TO BE HE.4RI3 ITEM 10: ld-a. 'Kenai City Council P.ctian Agendas of April 2 a_nd 16, 2048. ITEM 11: ADJOURNMENT MOTION: Commissioner Heus MOVED to adjourn and Commissioner Peters SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at approximately 8:12 p.m. Meeting summary prepared and submitted by: Corene Hall, Deputy City Clerk LIBRARY COMMISSION MEETING MAY 6, 2008 PAGE 2 177 CITY OF KENAI PLANNING & Z®NING COMMISS: AGENDA CITY' couNCIL cHAMSERs May 14, zees - z:oo ~.:n. 1. CALL To oIZDER: a. Roll call b. Agenda Approval c. CoasentAgenda d. *Excused Absences *All items listed with an asterisk (*} are considered to be routine and non- controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. 2. *APPRC/VAL CF MINUTES: a. *April 23, 2008 3. SCHEDULED PU$LIC COMMENT: (10 Minutes) 4. CONSIDERATIClN OF PLATS: a. PZ08-23 -Highland Subdivision -Highland Pride Park - A replat of Lots 10-18, Block 1 and Lots 11-15, Block 3 Highlands Subdivision. Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. b. PZ08-24 - Fidalgo Commercial -Municipal Centre Replat - A replat of Lots 3- 13, Block 1, Fidalgo Commercial Center. Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. e, PZOR_')Q _ Redniibt Ter?-ace -Everson Replat _ A replat of T_.nts l8 and 19, Block Five, Redoubt Terrace Subdivision No. 4. `Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. d. PZ08-27 - FBO Subdivision -Fed Ex Addition - A replat of Lots 7 8, 8, Block 1, FBO Subdivision. Plat submitted by Terry Eastham, RLS, P.O. Box 2591, Soldotna, Alaska. 5. PUSLYC IiEARIritGS: a. P208-26 - An application for a Variance from height restrictions fora 120-foot cell tower for the property known as Lot 1-A, Grace Brethren Replat #2 (406 McCoIlum Drive), Kenai, Alaska. Application submitted by Alaska Digitel, 3127 Commercial Drive, Anchorage, Alaska. 6. OLD BUSINESS: 179 Agenda May 14, 200& Page 2 ?. NEW BUSIidESS: a. PZ08-21 (PZ02-61) - A request to transfer Conditional Use Permit for Townhouses (condominium deve2opmentJ from Shawn Anderson to John Laasch & Robert Favretto for the property described as Block 3, Five Iron Heights Subdivision (1700 Lawton Drive), Kenai, Alaska. Application submitted by John Laasch 8s Robert Favretto, 18506 Osprey Circle, Anchorage, Alaska. b. PZ08-22 (P208-21) - A request to amend the Iegai description for Conditionat Use Permit PZ08-21 to reflect the recorded legal description for the property. The property is described as Block 3, Five Iran Heights Subdivision (1700 Lawton Drive), Kenai, Alaska. Request submitted by John Laasch & Robert Favretto, 18506 Osprey Circle, Anchorage, Alaska. c. Approval -Addition to existing structure located on Lots 7 8v 8, Block 1, FBO Subdivision (427 North Willow Street), Kenai, Alaska as required in lease. Requested by Rockwell G. Smifh, Managing Partner, LOROC, LLC, P.O. Box 951, Kenai, Alaska. 8. PENDING ITEMS: 9. REPORTS: a. Ciiy Council b. Borough Planning c. Administration 10. PERSONS PRESENT NOT SCHEDULED: (3 Minutes} l I. INFORM,4TYON ITEMS: a. First Quarter Reports -Building PermitsJZoning Permits/Code Violations b. Kenai River Center Permit Application -Wild Pacific Salmon, Ina c. Kenai River Center Permit Appiieatgii -City of Kenai d. Kenai River Center Permit Application - Widemeyer 8s Lowe e. Zoning BuAetin (4/ 10/08 8v 4/25/08} f. Commissioner Brookman notice of absence 12. COMMISSION COMMENTS & QUESTIONS: 13. ADJOURNMENT: "~ 8 ~ ITEM 1: GALL TO ORDER Chair Twait called the meeting to order at approximately 7:03 p.m. 1-a. Rall Call Roll was confirmed as follows: Commissioners present: J. Brookman, K. Koester, S. Romain, J. Twait, P. Bryson Commissioners absent: T. Wisniewski, R. Wells Others present: City Planner M. Kebschul2, Council Member R. Ross A quorum was present. 1-6. ,Agenda Approval Kebschull noted the following correction: In the agenda, item 4-b. should read Municipal Square Replat rather than Municipal Center Replat. Commissioner Braokman noted the following: ADD TO: 5-a: Tower Structures -Received from P. Falkenberg FAA determination of No Hazard to Aar Navigation -Received from Alaska Digitel Alaska Digitel letter dated 5-7-08 with attachments 11-g. Ordinance 2311-2068 MOTION: Commissiorier Brookman MOLTED to approve the agenda including the above- mentioned lay downs and Commissioner Bryson SECONDED the motion. There were no objections. SO ORDERED. 1-c. Consent Agenda MOTION: 181 Commissioner Romain MOVED to approve the consent agenda and Commissioner Bryson SECONDED the motion. There were no objections. SO ORDERED. y-d. *Ertcused Abseuoes *All items listed with an asterisk (*} are considered to be routine and non- controversial by the Commission and will be approved by one motion. There will be no separate discussion of these items unless a Commission Member so requests, in which case the item will be removed from the Consent Agenda and considered in its normal sequence on the agenda as part of the General Orders. Approved by consent agenda. ITEM 2: *APPROVAL OF MINUTES -- Apri123, 2008 Approved by consent agenda ITEM 3: SCHEDULED PUBLIC COMMENT -- None ITEM 4: CON SY~ERATION OF PLATS 4-a. P7.08-23 -Highland Subdivision -Highland Pride Park - A replat of Lots 10-18, Block 1 and Lots 11-I5, Block 3 Highlands Subdivision. Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. Kebschull reviewed the staff report included in the: packet, recommending approval provided the well and easements are shown on the plat. Twait read the rules for public ilciu'iiig and opened e =;.cetii=g tc public hearing There being no comments, the public hearing was closed. MOTION: Commissioner Romain MOVED to approve PZ08-23 and Commissioner Koester SECONDED the motion. Commissioner Bryson recused himself for conflict of interest. VOTE: Brookman YES Koester -- _, YES Wisniewski ~ ABSENT Romain YES Wells ABSENT Twait YES Bryson ABSTAIN MOTION PASSED UNANIMOUSLY. PLANNING AND ZONING COMMISSION MEETING MAY 14, 2008 PAGE 2 182 4-b. PZ08-24 - Fidalgo Commercial -Municipal Centre Replat - A replat of Lots 3-13, Block 1, Fidalgo Commercial Center. Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. Kebschull reviewed the staff report included in the packet, noting this area included the police, fire, city hall and library and would create one large pazcel, Twait opened the meeting to pubfic hearing. There being no comments, the public hearing was closed. MOTION: Commissioner Rornain MOVED to approve P208-24 and Commissioner Brookman SECONDED the motion. VOTE: MOTION IaASSED L7NANIIVLOUSLY. 4-c. PZ08.25 -Redoubt Terrace -Everson Replat - A replat of Lots 18 and 19, B1oek Five, Redoubt Terrace Subdivision No. 4. Plat submitted by Integrity Surveys, 8195 Kenai Spur Highway, Kenai, Alaska. Kebschull reviewed the staff report included in the packet, neting the plat verify there were no encroachments. Twait opened the meeting to public hearing. There being no comments, the public hearing was closed. MOTION: Commissioner Brookman MOVED to approve PZ08-25 and Commissioner Romain SECONDED the motion. VOTE: PLANNING AND ZONING COMMISSION MEETING MAY 14, 2008 PAGE 3 183 MOTION PASSED UNANIMOUSLY. 4-d. P208-27 - FBO Subdivision -Fed Ex Addition - A replat of Lots 7 8v 8, Block 1, FBO Subdivision. Piat submitted by Terry Eastham, RLS, P.O. Box 2891, Soldotna, Alaska. Kebschull reviewed the staff report included in the packet, noting the FedEx building was built across the lot line, and removing the Line would aliow for an addifion to the building. Twait opened the meeting to pubfic hearing. There being no comments, the public hearing was closed. MOTION: Commissioner Koester MOVED to approve PZ08-27 and Commissioner Brookman SECONDED the motion. VOTE: Brookman i YES (Koester YES Wisniewski ABSENT Romain YES I Wells ABSENT Twait I YES MOTION PASSED UNANIMOUSLY. ITEM S: PUBLIC HEARINGS S-a. PZ08-2E - Ps application for a Varance from height restrctions for a 120-foot cell tower for the property known as Lot i-A, Grace Brethren Replat #2 (406 McCollum Drivej, Kenai, Alaska. Application submitted by Alaska Digitel, 3127 Commercial Drive, Anchorage, Alaska. Kebschull reviewed the staff report included in the packet, requesting denial of the variance. However, if the commission chose to approve the variance, she recommended the following four items: • Receive an Airspace Permit from the Federal Aviation Administration and provide the City of Kenai with a copy of the permit. • .Meet any requirements listed in the Airspace Permit. • Submit alandscape/site plan for the proposed development as required by KMC 14.25. • Proposed lighting on the tower must be directed down to the parking lot surface and use environmentally sensitive lights. Height of lights must be limited to no higher than the adjacent State of Alaska street lights. PLANNING AND ZONING COMMISSTOAr MEETING MAY 14, 2008 PAGE 4 184 T`wait opened the meeting to public hearing Wayne Haerer, Alaska Digitel - Presented a power point presentation on the cell tower's range, noting the space for the tower was leased from the Grace Brethren Church; the tower would be taxable and Alaska Digitel would pay the taxes. At a question from the commission, Haerer noted the foundation was built without a building permit. Patxicsa li alkenberg, 399 McCollum -Spoke against the variance, noting she had not received notice from the church or Alaska Digitel, and is concerned the tower would lower property values. Robert Bielefeld, Mile 9 Kenai Spur Highway -Spoke against the variance, noting the tower would be seen from his home. Roy Espy, 403 McCollum -Spoke against the variance, noting the tower should not be in a residential area Becky Espy, 903 Magic -Spoke against the variance Earl Moose, Representative -- Grace Brethren Church - Read a written statement from the Church, stating the Church believed the permits had been applied for and neighbors had been notified. The statement read, in part, "we no longer support this project; though bound by a contract if all permitting is approved. We apologize to our - neighbors and community for the contention and inconvenience this has caused each of you." Eric Wilcox, 416 McCollum -Spoke against the variance. .`3'yl'i7ia ~i't4lart, 4Q~i eti~:T.olliim - ~pCide aga~:.st the Var;an.Ce~ nOtnlg t'L:e property values would drop. Debbie Sonberg, 410 Cinderella -Spoke against this variance, noting she was not opposed to all variances. Bslly Stuart, 401 McCollum -Spoke against the variance, noting the tower would be an eyesore., Janice Espy, 403 McColltum -Spoke against the variance. There being no further comments, the public hearing was closed. MOTION: Commissioner Romain MOVED to approve PZ08-26 and Commissioner Bryson SECONDED the motion. PLANN1Ntx AND ZONING COMMISSION MEETING MAY 14, 2008 PAGE 5 185 MOTION TQ~ AMEND: Commissioner Bryson MOVED to amend PZ68-26, adding the four staff recommendations stated earlier and requiring the tower not exceed 100 feet. Commissioner Romain SECONDED the motion. VOTE ON THE AMENDMENT: Commissioner comments included: • Concerned with timing on project and that Alaska Digitel should control contractors and locations. • 'Appeared. to be a poorly conceived plan. • 120 foot tower not necessarily an eyesore. • Dilemma with allowing growth, meeting needs of businesses and neighborhoods. • Permit process should be followed. (building permit} MOTION FAILED. Twait read the 15-day appeals process procedure. YTEM ~: OLD BUSINESS -- None ITEM 7: NEW BUSYPSESS 7-a. PZOS-2I (PZ02-61j - A request to transfer Conditional lise Permit for Townhouses (condominium development) from Shawn Anderson to John Laasch & Robert Favretto for the property described as Block 3, Five Iron Heights Subdivision (1700 Lawton Drive}, Kenai, Alaska. Application submitted by John Laasch & Robert Favretto, 18506 Osprey Circle, Anchorage, Alaska. Kebschull reviewed the staff report included in the packet. PLANNING AND ZONING COMMISSION MEETING MAY 14, 2008 PAGE 6 186 MOTION PASSED UNANIMOUSLY. VOTE OPT THE AMENDED MOTION: MOTION: Commissioner Koester MOiIED to approve the transfer and Commissioner Romain SECONDED the motion. VOTE: Brookman ;YES ~ Koester j YES Wisniewski ABSENT Romain ;YES Wells ABSENT I Twax~ 't i YES Bryson YES ~ ~ MOTION PASSED UNANIMOUSLY. 7-b. PZO>3-22 tPZOS-21j - A request to amend the legal description for Conditional Use Permit PZ08-21 to reflect the recorded legal description for the property. The property is described as Block 3, Five Iron Hesghts Subdivision (1700 Lawton Drive), Kenai, Alaska. Request submitted by .3ahn Laasch &, Robert Favretto, 18506 Osprey Circle, Anchorage, Alaska. Kebschull reviewed the staff report included in the packet. MOTLONe Commissioner Romain MOVED to approve PZ08-22 and Commissioner Brookman SECONDED the motion. VOTE: ~~ r v„ I , E ~ ~fi ~ BrOOkman i i..cs IaaesteZ i i.S I W3smewSdi. AB~i.:rv i Romain ~ YES Wells 'i ABSENT j Twait j YES Bryson (YES j MOTION PASSED UNANIMOUSLY. 7-e. Approval -Addition to existing structure located on Lots 7 & 8, Block 1, FBO Subdivision (427 North Willow Street), Kenai, Alaska as required uz lease. Requested by Rockwell G. Smith, Managing Partner, LOROC, LLC, P,O. Box 95I, Kenai, Alaska, Kebschull reviewed the staff report included in the packet. MOTION: PLANNING AND ZONFNG COMMISSION 1VIEETING MAY I4, 2008 PAGE 7 187 Commissioner Brookman MOVED to approve the addition and Commissioner Koester SECONDED the motion. VOTE: ITEM 8: FENDING ITEMS -- None ITEM 4: REPORTS 9-a. City Gouneil -Ross reviewed the action agenda items from the May 7, 2008 meeting, and noted the Council was working with Administration to place an APOC opt-out on the October ballot. 9-b. Borough Plaaniag -Bryson reviewed the action agenda items from the April 28 and May 12, 2008 meetings. 9-c. Administration -Noted the quarterly reports were in the packet for review. FTEM 10: PERSONS PRESENT NOT SCHEDULED -- Nane ITEM 11: INFORMATYON ITEMS i i-a. First quarter Reports - Building Permits j Zoning Permits] Code Violations 11-h. Kenai River Center Permit Application -Wild Pacific Salmon, Inc. I 1-c. 'Kenai River Canter Permit Application -City of Kenai I1-d. Kenai River Canter Permit Application - Widameyer 8s Lowe II-e. Zoning BuIletin (4/ 10/08 8v 4/25/08) I I-£. Commissioner Brookman notice of absence ITEM 12: COMMISSION COMMENTS & t3UESTIONS -- None ITEM 13: ADJOURNMENT PLANNING AND ZONING COMMISSION MEETING MAY 14, 2005 PAGE 8 188 MOTYON PASSED UNANIMOUSLY. M®'PIUNf Commissioner Bryson N%QVED to adjourn and Com.rraissioner Romain SECQN23ED the mofion. There were no objecfions. SQ ORDER.ED. There being no further business before the Commission, the meeting was adjourned at approximately 8:57 p.m. Meeting summary prepared and submitted by: Carene HaA, Deputy City Clerk PLANNING AND ZONING COMMISSION MEETING MAY 14, 2008 PAGE 9 189 KENAI BEAUTIFICATION COMMITTEE MAY 13, 2008 7:00 P.M. fIENAI COUNCIL CHAMBERS AGENDA ITEM 1: CALL Td ORDER Ss ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SIIMMARY -- March 25, 2008 ITEM 4: PERSONS SCHEDULED Td SE HEARD ITEM 5: dLD SUSD1iESS a. Discussion -- Volunteer Plant Date ITEM 6: a. b. ITEM 7: a. b. c. ITEM 8: ITEM 9: ITEM 20: Discussion -- Garden of the Week Discussion -- Fail Bulb Planting REPORTS Committee Chair Parks &, Recreation Director Kenai City Council Liaison QUESTIONS AND COMMENTS PERSONS NOT SCHEDULED TO SE HEARD INFORMATIdN a. Kenai City Council Meeting Action Agendas of April 2 and 16, 200&. b. Memorandum -- Draft Ethics Ordinance c. Anchorage Daily News Article -- "4 Steps for Ending Weed Woes" ITEM 11: AD30URNMENT 191 KENAI BEAUTIFICATION COMMITTEE MAY 13, 2005 a:oa P.M. KENAI COUNCIL CHAMBERS CHAIR KAY SHEARER, PRESIDING MEETINCr SI7MMARY YTEM I: CALL TO ORDER ~ ROLL CALL Chair Shearer called the meet confirmed as follows: Committee Members present: Committee Members absent: Others present: ing to order at approximately 7:04 p.m. Roll was M. Dimmick, L. Seymour, P, Baxter, K. Shearer S. Hatch, M. LeFebvre Parks & Recreation Director B. Prates, Mayor Pat Porter A quorum was present. ITEM 2: AGENDA APPROVAL MOTION: Committee Member Dimmick MOVED to approve the agenda and Committee Member Baxter SECONDED the motion. There ware no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY -- March 25, 2008 Prates noted on the agenda Item 6-c. should read America in Bloom. MOTION: Committee Member Dimmick MOVED to approve the meeting summary of March 25, 2008 with the requested change. Committee Member Seymour SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO SE HEARD -- None ITEM 5: OLD BUSINESS 5-a. Disaussson -- Volunteer Plant Date Shearer reported the volunteer plant date would be Saturday, July 7, 2008 from 10:00 a.m. to 2:00 p.m. and a barbeque would follow compliments of the Kenai Firefighter's Association. Prates noted the beds would be prepared in advance and planting instructions distributed during check-in. 192 Mayor Porter noted she would look for funds to provide extra food. ITEM 6' NEiV BUSENESS -a. Diseussian -- Garden of the Week Frates reviewed the memorandum included in the packet and requested consideration of the name change to "Green Thumb Award." Committee members suggested four commercial awards be added to the eight residential awards. MOTION: Committee lviembor Seymour MOiTED to change the wording on the "Garden of the Week" sign to read "Green Thumb Award" and include eight residential. awards and four commercial awards between June 15 and September 15, 2008. Committee Member Dimmick SECONDED the motion. There were no objections. SO ORDERED. 6-lx. Discussion -- Fall Bulb Planting Shearer reported wanting to add fall bulb beds and suggested the airport triangle would be a great location. Frates noted consideration would need to be given to the underground sprinkler system and reported he would discuss the possibility with airport staff. Committee members would be researching passible designs and types of bulbs a_nd bring the information to the next meeting for consideration. ITEM ?: REPORTS n_ s+.s ry et. ..±e he o r7 n fa rn nff ?-ga.= '~..u5-aaaa..aEE@c ~-~AaiX -- u..~a.r.°. ~.. d It Wc,'..ld .. ,.. gaa.. ~d~a tQ n.._ the park strip during the carnival and inquired about returning volunteers. 7-b. Parks & Recreation Dsreetor -- Frates noted six seasonal hires had been hired and were assisting with pre-season activities and reported Golden Wheel Amusements requested use of the park strip from May 27 through June 3. 7-c. Kenai City Coummcii Liaison -- Porter reported on the FY09 budget status, and suggested linking photographs of the "Green Thumb Award" winners to the City's web page. ITEM 8: pUESTIONS AND COMMENTS -- None ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD -- None BEAUTIFICATION COMMITTEE MEETING MAY 13, 2008 PAGE 2 193 ITEM Z0: INFORMATION 10-a. Kenai. City Council Meeting Action Agendas of April 2 and 16, 2008. IO-b. .Memorandum -- Draft Ethics Ordinance IO-c. Anchorage Daily News Article -- "4 Steps for Ending Weed Woes" ITEM I1: ADJOURNMENT MOTION: Committee Member Dimmick MOVED to adjourn and Committee Member Baxter SECONDED the motion. There were no objections. SO ORDERED. There being na further business before the Committee, the meeting was adjourned at approazmately 8:13 p.m. Meeting summary prepared and submitted by: Corene Hall, Deputy City Clerk BEAUTIFICATION COMMITTEE MEETING MAY 13, 2008 PAGE 3 194 12. P T F TH I AIV ~~_, thect~af, EtENAl~~ALASKA "l/il/a~e with a Past, Git~r wi~~t a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 ; ti.G~~ Telephone: 907-283-7535 /FAX: 907-283-3014 7992 MEMO: TO: City Council FROM: Rick Koch DATE: May 14, 2008 SUBJECT: Kenai Municipai Airport Fees The purpose of this correspondence into transmit, for your information, the fee schedule for services at the Kenai Municipal Airport effective Tune 1, 2008. The City Manager is authorized to regulate these fees under KMC 2 L05.040. Thank you for your attention in this matter. ff you have any questions please contact me at your earliest conve~uence. 197 W O N W Z W W w N W W R O a Q a U 2 'G W X I U j° Ia IU Q 2 ~ ~ I . ~ ( O r j I , I I I I ~ N M m' C o j I ~ I , 1 ~ 1 I I ~ ~ :i I l ~ I ~ ( ; ~ i ! ~ i I I ~ I I I ~ j I ' I I i i ~ j ~ ~ I ' ~ 1 ~ , j ~ i ~ ~ I ~ ` I ~ ' ~ I ~ j ~ I I ~ j I C I I ~ i I j I ' ~ i ' ~ ~ ~ I ~ j i j 1 ''q ~ p j l j ~ i t ~ ' , l _ I ~o oo ; ~ Om ~ d,.. ( I ~ 1 ~ I i t ~ ~ l QI LI mT p1L I ~ ~ I I I ~ ~ ~ I ( j ~ j I . ~ d ._ $ ' I I ~ 1 ' 1 j i ~ i ( ~ ' Y m ~ d I I I ( I . 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N N ~ 6't O N ~ IL ~ ~ y M? ~ U Q > U Q 200 Kenai Community Library Monthly Report May 2048 Apri] Cirenlation Figures Adult Fiction 2,171 Internet Access 1,182 Adult Non-Fiction 1,760 Music 230 Periodicals 66 Puzzles 3 Juvenile Fiction 639 Videos 692 Juvenile Non-Fiction 269 DVDs 2,515 Easy Fiction 1,646 Audio books 215 Easy Non-Fiction 350 Miscellaneous 2 Interlibrary Loan 61 Computer Programs 34 Total Print 6,962 Total Non-Print 4,973 Tote] Circulation 11,935 Internet Express ITse G15 Tote] Catalog Searches 8,201 Library Door Count....... 8,990 In-House circulation 86 DoKmloadable Audio 142 Circulation figures for April 2008 were 25% higher than those in April 2007. Income Fines and Rental Books Xerox Lost/Damaged Total income 04108 Additions to callection Withdrawals from collection Interlibrary Loans Ordered Received Returned Loaned by us rdo}unteers Hours $1,234.05 302.50 56.00 $1,602,55 93 IIooks 57 49 54 34 9 80 Library Cards Issued April 2008 ~ Kasilaf 2 ~ Kenai 51 Nikiski 12 Soldotna 30 Sterling 8 Non-Resident 13 Internet Use 3 Organization & Other 9 Adult Programs .......... 8 Persons .............. 70 Children's & Family Programs.... 23 Attendees .............................. ... 328 We were notified that we dualify for $5;200 from the Gates Foundation towards new computer hardware acid software for a match of $2,600 from our budget. This money will be available over two years with a $1,300 cammiiment from us each of those years far the matching funds. 201 INTEFEiCE IUIEIVE®ANDUIVI KENAI FIRE DEPARTME~V'T Date: May 12, 2008 To: City Manager From: Fire C1vef TiIly Subject: Midmonth report Runs for t6ae timeframe of 4-17 to 5-'i2: Run total for the year 523 runs Tota( last year at this time 438 runs 20% increase in requests for service last 30 days: 126 requests for service. Summary of activities for last month: 1) Gofiference for n~eiStrSfCtiip :lt Ke{'t G5.1 T fJ lJtl I fa~i~l~t~/ 2) Continued involvement with KPC Paramedic program 3) Met with Pro Comm for build out planning of KPD/KFD dispatch 4) Participated in the Red Hat Parade 5} Hosted a Safe Kids Car Seat check at Statics 1 6} Captain Prior is teaching a University of Alaska college course on fire-ground hydraulics for department personnel 7) 3 departmen# members are attending Paramedic refresher in Nikiski 8} Attended Aspen suites Grand opening The Fire Marshal's office has been busy this last month. FM Wilcox completed 13 inspections, did 5 p{an reviews, dealt with 4 code enforcement issues and 1 fire investigation. 203 Airport Manager's Monthly Report May 2Q08 pab Airport Runway Safety Improvement Project: Pori of this project was the redesignation of the taxiways. Diamond Electric and Wince-Corthell-Bryson performed the switchover on Tuesday, April 22 in about 2 hours due to their goad punning. The project consisted of changing approximately 53 sign panels. The switchover went without a hitch and ail airport publications will have current runway information. Airport RFP: Two RFP's for Professional Services for Architectural!Engineering/Environmental & Construction Management Services were received on April 24`". A selection committee will be interviewing and ranking the proposers the week of May 19. A recommendation will then be sent to the City Manager for award at the June 4 Council meeting. Kenai Peninsula Air Fair: The 8`" Annual Kenai Peninsula Air Fair and Fun. Flight was held on Saturday, May 10. Great weather. and good food contributed to a very successful 2008 Air Fair. The EAA kicked off the event at the Soldotna Airport with their fund-raising breakfast Sixty-one (61) people registered for the fun flight in thirty-three (33) aircraft. The static displays were highlighted with participation from the Kulis Air Guard, USCG Air Station Kodiak, Forestry, Auska State Troopers, and the Alaska Army Guard, The 2008 KPAF Committee would like to thank cur financial sponsors: Cities of Kenai and Soldotna, Alaska Airmen's Assocution, Beacon Occupational,. Challenger Learni;,g ~.entcr; .rrOwiey PetrCleUm i;er`JICBS, and GCi, inv. The fv^IlOwiny SNGnS6r5 contributed advertising, food, prizes, music, etc: Alaska Flying Network, A Moments Notice, Alaska Sea Life Center, Alaska's t3est Water, Arby's, Aspen, Asplund Supply, Avis, Charlotte's, Conoco Phillips, Dan's TV, Era, EAA, Grant Aviation, Home Depot, Jersey Subs, Kaladi Brothers, Kenai Aviation, Kenai Peninsuu Emergency Services, Kenai Landing, Kenai Senior Center, Land's End Resort, McLane's Surveying, Peninsula Aero Tech, Renown Tours, Subway of Kenai, Sundog, Swiftwater 8i11, Taurianinen Engineering & Testing, Uptown Hotel, and Wince-Corthell-Bryson. A special thanks to Mayors Porter and Carey, Joe Moore, Zack Moore, James Dye, Bob Lee, and Miley Lee and all the military personnel that gave their time to this event. This event would not be possible wi#hout the many individuals that gave their time and support. Float Plane Basin: The float plane basin was opened on Friday, May 9`". The fueling facility is also operational. The Aioport crew also designed and installed new welcome signs at the basin. Terminal School Tours: Wi#h the school year drawing to a close, the airport is busy with tours for elementary students. The students not only tour the terminal but also go to the Tower and the Flight Service Station. 2o~~~p5 Page 2 -Airport Manager Report May 20081continued} Airport Urea Building Facility: The urea storage building for the airport is out to bid. A prebid is scheduled far 2:OOpm Tuesday, May 13 with bid open)ng on Thursday, May 22. Terming[ Bathroom Remodel: The south public bathrooms in the terminal building are being remodeled the week of May 12. The bathrooms witl have new fixtures, painting, and countertop. Thank you for your cooperation during this remodel and we apologize for any inconvenience. Alaska Airmen's Aviation Trade Shaw: The Airport and Beacon Occupational Nealth Services shared a booth at the trade show in Anchorage the weekend of May 2. The airport manager provided conceptual drawings of future lease lot development ideas at the float plane basin and the north ramp area. This was also a great opportunity to promofe the 2008 KPAF. The airpork manager received very favorable feedback and comments on the airport and its facilities. Airport Grounds Maintenance Position: Steve Kegler, grounds maintenance person, has resigned to take a position on the slope. Nis last day of work is Monday, May 19. The airport will seek to fill this position as soon as possible. www.ci.kenaLak.us 206 N V ~ ® W ~ - '8 Y Q Q ~ ~"` .h~+ ®'~. ~ ~ f- 2U ~~ Ys m m ,+ a m E~ 6 ° " ~ i I ~ ~ ~~ o ~, U m ~ h N i I ~ j a ~ ~ I I ~. ~ z ' m o o N ~ i ~ ~ O ~. y ~ _ a ~y j 'O m o ~ ~ ~ o Gam ~ ~''~ Q ~ O' li U ~ I r I d ~ ~ i R ~ ~ ~ ~ ~ R! '- ~ 1 m c ~ o i '~ as+ , sN N p i ~ d O m Z . + .~ U. 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M h, th I'.. h f~ h 01 O1 M h V C v C C V V C V' V V Q OJ O 0 fV W O 0 N W O o N W O a N N O o N ~ O 0 N W O 0 N OJ O 0 N ¢3 O 0 N W O 0 N N O 0 N W 6 0 N N O N N O N h M b' M ~ M ~ M N M N (h N M m m m apMpi qy m m m ~ eS~}}i m ~ V V V V C C V V ~ C V V OJ [D Q1 to QF O1 m m - m m m a' 208 "~'fEa~e witdr a Past, Gi~ with a Fut~ere" 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 -,r~%'~. Telephone: 907-283-3692 !FAX: 907-283-3693 SrWd fire city o f' KENIII~ SKA iVIER4~RAlvDVM To: Rick Koch, City Manager Through: Wayne Ogle, Public Works Director From: Robert J. Frates, Parks & Recreation Director Date: May 23, 200 RG: 1VIid-month Report The department currently has six seasonal maintenance staff members to assist with pre-season activities. Activities to date have been. facility clean-up and light maintenance, tunxing on water at various locations, playground and park inspections, turf aeration and ball field preparation. The Director will be attending a CPR class set for Wednesday, May I4"`. The Little League Association will be conducting their field clean up in conjunction. with the Parks Department May 3.5td and 16`h from 5:30-7:30PM. Representatives from the Kenai Peninsula Oilers will. be,joining the League's efforts on Thursday with major focus on the Sr. League Field. Opening ceremony is set for Saturday, May 17 beginning at noon. The Adutt Softball Association begins their season Tuesday, May 6"'. The now banners for the Spur Highway are scheduled to arrive May 16s' and scheduled for installation. the week of May 19`". The department has xeceived a number of calls and. registration forms for the Community Garden program. Gardens are scheduled for tilling the week of May 1.9a` in preparation for the traditional Memorial Day weekend plant date. Flowerbed preparation aad clean up is also scheduled For the week of May 19a'. A local vendor has been contacted abort painting the shelter on the park strip, This projeot will occur as soon as weather permits. The Kenai Fire Department responded to a fire at the Harbor facility that occurred May 6a'. Vender working on locatoon will be responsible for replacement of damaged floats, The Street Department spent a couple days last weak removing mud from the ramps. initial reports indioate that Copper River Sea Foods wilt have a larger fleet of boats operating this commercial fsshing season. Gorden. Wheel Amusements is planning to set up once again on the park strip beginning May 27t° and operating from May 30 - 7nne 1. 209 Memo Ta< Rick Koch, City Manager Pram: Chuck Kopp, Police Chief ~~"~' date: 05!13!2008 Re: Police Department Activity -April 2008 Officer David Ross attended an Identifj+ Theft seminar in Kenai. Officer Jay Sjogren attended athree-day Alaska Highway Safety Office sponsored Life Savers Conference in Portland for traffic safety improvements through community education and traffic enforcement. Officer Kelly Gearge attended a twa-day Police Athletic League conference in Tennessee sponsored by our local Kenai Peninsula Boys and Girls Gub. The Kenai Police Department and Boys and Girls Ciub jointly sponsor the Police Athletic League program that provides regular opportunities for officers to mentor and engage at-risk vouth in cur immunity. Offioer Trevor Miller participated in two days of Special Emergency Response Team (BERT} training with Alaska Stata Troopers. Officer Miller is a member of the Alaska Southern BERT team, amulti-agency team that responds to critical life safety incidents on the Kenai Peninsula. Officer Ben Langham taught the 2-week Kenai Middle School D.A.R.E. program to 7"' grade students. Officer Casey Hershberger attended a two-day cell phone forensics seminar in Anchorage. The department advertised for two open Dispatcher positions and for the four Seasonal Enforcement Officer positions. Officers investigated 6 traffic crashes, none of which resulted in injuries. 1 crash investigation resulted in an arrest for DWf. Officers made 62 arrests, wrote 288 reports, issued 108 traffic warnings, 55 citations for driving infractions and 50 seatbelt citations. 211 ~~ ~, co~TR~L xEr®~r April 204 zor18 zao~ 200 ?oo~ STRAP 6S 75 ADOPTED 45 44 Dags 53 60 Dogs 31 27 Cats 14 IS Cats 14 17 Other Animals 1 0 Other Animals 0 0 RELEASED B5' OWNER 39 ~9 CLAIMED 24 27 Dags 27 39 Dogs 22 27 Cats 12 20 Cats 2 0 Other Animals 0 0 Other Animals 0 0 D.O.A. 9 8 EL'THANIZED 37 63 Dogs 5 8 Dogs 27 dF Cats 4 0 Cats 9 18 Other Animals 0 0 Other 1 0 WILDLIFE RELEASE 1 0 Borough Animals 35 57 Field Investigations 172 87 Total Dogs 85 107 ~%olunteer hours 120 145 Total Cats 30 35 Total phone calls 1,137 fi77 Total Other. 1 0 Kennel Permits 0 0 213 I~E'.N.~,T ~'UL~CE TAP 'Tl'~' 107 SOUTH wILL(1W STREET KENAI, AK 9'1611 Telephone (907) 283-7879 Fax (907} 283-2267 -- 1~~~' IB93 TO: Lt. Ksm Wannamaker FROM: Michael Nusbaum`~`T Communications Sup 'sor DATE: May 1, 2008 RE: April 2008 Statistics During the month of April 521 incidents were generated as a result of calls for service. 80 of those calls were reported over 911. 9 were generated. as a result of hang-up 911 calls. No department members attending training during this month. 215 M1/MC)RANDiJM To: Rick Koch, Cit}r Manager From: Rachael S. Craig, Senior Center Director Date: May 13, 2008 Sub,~ect: April Monthly Report Total nnmber of days rented in April 2608: April Mont[rly Meal Count 2008 Served: Total Congregate Meals Served: 1,203 Total Home Meals Served: 1,954 Total Non-Seniors; 9 Monthly Meal Caunt 2003 Served: Total Cangregate Meals Served: 939 Total Home Meals Served: 1,281. Total Non-Senior Meals: 24 We had a total of 895 volunteer hours for the month of April. The Administrative Assistant had 40 appointments pertaining to Senior Care Benefits, Social Security, Medicare/Medicaid and general senior related issues. The Director completed the NTS grant. We submitted for funding in the amount of $315,775. The Director presented her budget to the United Way Allocation committee last week and she presents before the borough assembly during a work session on Monday, May 19`h. HARP held a driver safety 55 Alive class. 35 students were present for two evening classes. Tl.e sewers fixed Prom breakfast en S,inriav a„r;i 13a' to our Kenai Central High School. There were 150 students at the breakfast and about 15 seniors and staff cooking and serving breakfast. This event is a highlight of both generations! One of our seniors, Tom Holland received the "senior companion" of the state wide month award. Within the community, Tom acts as a helper and a friend to a couple of male elderly seniors. Kenai Senior Services is pleased that we are offer this service to the community. Last fiscal year, in addition to our senior companion volwiteers, we had 11,868 volunteer service hours in assisting to provide senior programs. 100 community members participated in the Art Project Open House on Sunday, April 20`h. The artists as well as the seniors were present to answer questions concerning the process of getting their portrait drawn. The project has grown and looked forward to by both the college students as well as the seniors. Por anyone's interest, the Director has a couple portraits on display in her office. The Phi Theta Kappa and the Art Students' League held a "Band-Aid" concert from 6- IOp.m. after the art extravaganza at KPC. Donations were collected for the home meals program. We provided a booth with senior service information; part of the Thursday - night Blue Grass Group was one of the 14 musical groups who performed as well as a short talk by the director. We had a good audience of students and seniors. 217 I N F R.MTI N ITE INFORMATION ITEMS KENAY CITY Cl7UNCIL MEETING MAY zo, aoos 5/20/2008 Purchase Orders Between $2,500 and $15,000 for coixncil review. 2. 5 J 13/2008 City of Kenai Dock Rate Schedule. 5/7/08 L. Magiera application for appointment consideration to the Parks Recreation Commission. 4 j2008 Kenai Municipal Airport Enplanement Report. 221 F- Z ° ~? f° a a o o o ~ ~ O •- ~ o ~ d o o o ro r d F ~ 0 ri cis ri N Z H Z N Z ~ ~ _ ~ u~ O O a5 ~S ~ J a ~ ~ O Q ~ (n {~ ~ Z Ct7 _ ~ ~ ~ ~ ~ ~ ~ ~ O ~U ~ N _ -~ ~ Q _W C w J F ~..) Z } ~ ~ ~ c ! ! ~ U g 0 ° ~ o o cCi ~- ~ 1= ~ d U N ~ ~ Q- ~ fA ® d ~ W d' N W W `'r Y ~ d q rUn ~° a ~ o ~ '~ ~ U x x UJ d m V a ° u ~ r ~ a" Z ~ ~ d l EI ~ ~ I- LL! 41 ti O w o Z ~ a V° ~ ~ H J m ~ d° ~ W K o J ~ ~ Y O ~ =~ ~ J U C7 ~ U W ~ U Z O = Z m O w ~ ~ O ~ U ~ U ~ 4 W d 0. > H Y d 223 CITI' ®F KE~flAI - ~QCNC RATE ~ I,~E®t1~E ~° ick .Koch, City Manager May 13, 2fD08 KEN,AE H/~,RBOR RATE SCHEC1lJLE The Gity .Manager shall establish the fees, rates, and charges for the billing and collections for the support of the harbor. The City Manager reserves the right to change the rate schedule at any time. There is a 6% sales tax added to the total invoice (3% Gity and 3% Borough). RATE 1. INon-product wharfaae (ice. nets, staples, etc.) 0.04/1b. ! Purchases- Purchases ! Purchases Under 500 500 gal. 2000 gal. e Gallons or more or mor 2. Fuel . f3asoline Regular 4.015 3.965 I State Marine Taxi .050 050 Federal Tax 184 .184 I 3otat $/ ai. 4.25 i -- 4.20 ___ piesei #2 ', 4.$73 ; 4.823 ''! 4.543 I j State Marine Tax ; .050 ! .050 ! ~ a050, ! _ Total $/ aI. 4.92 ~ 4.87 4.55 -- ~ 3. I 'Used Oil Dum in __ $1.00/ al. 4. _ Boat Launch Ram 0-10 min. _ $15.00 '' Includes Parkin with Trailer Each min. over 10 min, _ $1.00/min. Seasanal pass per boat = $150/season 5. 1 Parking Only If with trailer, musf ~ launch tee ' $10.001day j j ;Seasonal Pass far Parking_____ $100.06/Season 6, ~ Tie U Fee A. Skiffs tied to land side of concrete dock $7.00ida I Seasanal Pass er boat I $150Jseason B. Boats tied to buo in river $10.00/day i Seasonal Pass_per boat __ $150/season 1 7. 'Forkliftw/Operator (1/2-hr. minimum) _ $50.001hr. 8. l City Labor Charges for call out (2-hr. min.) ~ ( $40.OOlhr. i 9. j Other Items __ _ _ See Dock Manager Prior to Use '. Finance _ 225 CITY t7F I~dE1~AI "Village with apart -City wath a future. " >~~'~~' BACKGROUND AND PERSONAL DATA - -_ - ~_:, T CANDIDATES FOR APPOINTMENT COMMITTEES AND COMMISSIONS KENAI~ KA t2.E~EIVE® RETURN TO: ~,/ KENAI CITY CLERK 2I.o FIDALGO AVENUE MAY 1" 3 2006 KENAI, AK 99611 KEN~+'~ ~~'~° ~-E~OC Pr~aoNE: 2sa-~sas, ExT, 2ss ~ FAIC: ass-sobs DATE: { f p rp Ressdent of the City~~ossf Kenai? ~'.~l ~/~ / How long? 'U",r G~r~ Residence Address U'~D ~3.'1 !"~~~ 1~C~y'tC;~~.,Q~ ~ Lf Availing Address `~~~ -`1~f~_°~_ a~ ~,~ ~Q~~~ Home Telephone No. ~~~2~~~~~~~ Home Fax No. Business Telephone No Business Fax No. Email Address: 1~(7V'~~t--.YY~Q(~f ~'~Cf 'u` ~p}.~ , CO May we include your contact information on our web page? ALL }~I, If not all, w at information may we include? EMPLOYER: Job Tula NAME OF SPOUSE: Current membership in arganizatioas: Past organizational memberships: 1~.,°`~"+. ~f~~;C G ~t SL!~i~l cOI~MITTEES aR COMMISSIONS IN WHICH You ARE INTERESTED: ~~ K~ G~~1Ci 12E'CC' P G`~\G tr1 WHY DO YOU WANT TO SE INVOLVED WITH THIS COMMISSION OR COMMITTEE? h ~ (} "~ ,. `l \i WHAT BACKGROUND, EKPERIENCE, OR CREDENTIALS DO YOU POSSESS TO SRING TO THE BOARD, COMMISSION OR COMMITTEE MEMBERSHD?? i ~, , Sign~tfzrc ` 227 CHANGE ERA GRANT KENA( Combinad Month Total FROM 2007 AVIATION AVIATION „tea, AVIATION Month Total Janua 6,011 1,741 7,752 335 7,417 263 B,OtS Februa 5,431 5,601 7,D32 601 6.435 297 7,329 March 5,306 1,605 6,911 244 6,667 205 7,196 April 5,435 1,622 7,057 559 6.498 334 7,391 Ma 0 7,391 June 0 7,835 Jul 0 11,606 Au ust 0 10.211 Se temher 0 7,598 I October 0 .7,846 November 0 7,413 December 0 6,771 a 5 752 u 5-year Comparison Chart 2007 2006 2005 2004 2003 January 7,417 6,456 6,023 5,326 6,454 .w March 6,667 6,808 6,784 5.993 5,28D May 7,391 7.071 5,974 5,700 5,848 July it.606 51.370 10,860 10,654 9,445 September 7,598 7,359 6,886 6.838 6,435 November 7,413 7,068 6,938 6.245 5820 ... :: Totals - 93,684 90,070 83,523 62,0 09 76,T29 ' +,va ~¢ ~ if - ~ ' ~ ~ ~9' ~ ~ ~ ~~ '', 4f ~ ,...e., ~, 95000 i 90000 ~ 850DC 61Series? 80000 ~ .75000 " 7GD00 f 2007 2006 2005 2004 2003 229 T COUNCIL PACKET DISTRIBUTION COUNCIL MEETING DATE: ,~~~~• ~~ Mn or/Council Attorney Ta for/S rin er/Kebschull ~ Clerk Cit Mana er ~. Public Works ~"~- Police De artment ~ Finance d'~ En ineer ~ Senior Center ~ Airport ~.. Kim ~C Librar ,. Parks & Recreation Clarion Fire De artment ~! Schmidt ~ Mellish ~..I~A Sit-ud~n=h-=Re . KSRM ~ ~a Rr~e~a4c4e<, AGENDA DISTRIBUTION DELIVER Council and Student Representative Packets to Police Department Dispatch desk. The Clarion, KSRM, Mellish & Schmidt's Office will pick their packet up in my office. The portion of the agenda published by the Clarion should be emailed as soon as possible after Noon on packet day. The camera-ready agenda c:/myfiles/documents/minutes/agenda form for paper) is emailed to Denise at Peninsu/a C/orion (at email folder Work Session/Special Meetings, or Composition in Contacts or Ibell@acsalaska.net}. Home Page documents (agenda, resolutions, ordinances for public hearing, and ordinances for introduction) are usunlly emailed to me and I hold them in my HTML file. 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