HomeMy WebLinkAbout2006-08-10 Airport Commission Packet
KENAi AdRPORT CONIIUIISSION
AUGUST 10, 2006
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
AGENDA
ITEM l:
ITEM 2:
ITEM 3:
ITEM 4:
ITEM 5:
a.
ITEM 6:
ITEM 7:
a.
b.
c.
ITEM 8:
ITEM 9:
ITEM 10:
CALL TO ORDER AND ROLL CALL
AGENDA APPROVAL
APPROVAL OF MEETING SUMMARY -- July 13, 2006
PERSONS SCHEDULED TO BE HEARD
OLD BUSINESS
Discussion -- Proposed Amendments to Kenai Municipal Code Title 21
Entitled, "Kenai Municipal Airport and the Airport Reserve."
NEW BUSINESS -- None
REPORT
Comrnission Chair
Airport Manager
City Council Liaison
COMR~IISSIONER COMI~~NTS AND QUESTIONS
PERSONS NOT SCHEDULED TO BE HEARD
a. Kenai City Councff Meeting Action Agendas for July 19 and August 2,
2006.
b. Airport Manager's Monthly Report -- July 12, 2006
ITEM 11:
PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO
ATTEND THE MEETING:
CAROL -- 283-8231 OR,
REBECGA/MARY -- 283-7951
INFORMATION ITEMS
KEfltAI AIRPORT COMMISSYON
JULY 13, 2006
KENAI CITY COUNCIL CIIAMBERS
7:00 P.M.
AGENDA
ITEM 1: CALL TO ORDER AND ROLL CALL
ITEM 2: AGENDA APPROVAL
I~EM 3: APPROVAL OF MEETING SUMMARY -- June 8, 2006
ITEM 4: PERSONS SCHEDULED TO BE HEARD
ITEM 5: OLD BUSINESS
iaEm 6:
I
a. Recommendation -- Lease Applications/Indwm Properties, LLC (Kenneth
Dunbarj:
l. Lot 9, Block i, FBO Subdivision
2. Lot 10, Block 1, FBO Subdivision
3. Lot 11, Block 1, FBO Subdivlsion
b. Recommendation -- Lease Application/Indcom Properties, LLC (Kenneth
Dunbar) - Lot 2, Block 1, General Aviation Apron Subdivision #1, Amended.
ITEM 7: REPORT
a. Commission Chair
b. Airport Manager
a City Council Liaison
ITEM 8: COMMISSIONER COMMENTS AND qUESTIONS
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10: INFORMATYON ITEMS
a. Kenai City Council Meeting Action Agendas for June 21 and July 5, 2006.
b. 6/2006 Kenai Municipal Airport Enplanement Report
ITEM 11: ADJOURNMENT
REMINDER:
JOINT WORK SESSION WITH REPRESENTATIVES OF KEDS, PLANNING &
ZONING COMMISSION ANDCITY MANAGER KOCH -- T.3~ P.M.
KENAI AIRPORT COPnM%SSYOIV
JULY 13, 2006
KENAI CITY COUNCII. CHAMBERS
7:00 P.M.
CHAIR HENRY KNACKSTEDT, PRESIDING
MEETING SUMNlARY
ITEM 1: CALL TO ORDER AND ROLL CALL
Chair Knackstedt called
confumed as follows:
Commissioners present:
Commissioners absent:
Others present:
A quorum was present.
the meeting to order at approximately 7:00 p.m. Roll was
B. Bielefeld, H. Knackstedt. C. Versaw, L. Porter, E. Mayer
(arrived at 7:20 p.m.J
d. Hazalson and J. Zirul
Councff Member L. Swarner, Airport Manager R. Cronkhite,
Department Assistant 1VI. Bondurant, City Manager R. Koch
ITEM 2: AGENDA APPROVAL
MOTION:
Commissioner Bielefeid MOVED for approval of the agenda as presented and
Coinmissioner Porter SECONDED the motion. There were no objections. SO
ORDERED.
YTEM 3: APPROVAL OF MEETYNG SUMMARY -- June 8, 2006
MOTION:
Commissioner Bielefeld MOVED for approval of the June 8, 2006 meeting summary
and Coiruuissioner Porter SECONDED the motion. There were no objections. SO
ORDERED.
YTEM 4: PERSONS SCHEDULED TO BE HEARD -- None.
YTEM 5: OLD BUSINESS -- None.
ITEM 6: NEW BUSINESS
6-a. Recommendation -- Lease Applications/Indcom Properties, LLC
(Kenneth Dunbar):
6-al. Lot 9, Biock i, FBO Subdivision
6-a2. Lot 10, Block 1, FBO Subdivision
6-a3. Lot i l, Biock 1, FBO Subd'avision
Fred Braun/Ken Dunbaz -- Braun clarified the intent for the lease of the property is to
build commercial/air cargo with development on Lot 11 first.
Corn3nission discussion included a concern sufficient ramp space would be available
and it was noted, requirements of the bullding code would manage those issues.
MOTION:
~oiiunissioner Versaw MOVED to recommend approval of the lease of Lots 9, 10, and
11 for buffding of commercial aircraft hangars as it complies with the Airport Master
Plan. Cominissioner Porter SECONDED the motion.
VOTE:
Zirul Absent Bielefeld Yes Knackstedt Yes
Versaw Yes Ma er Yes Haralson Absent
Porter Yes
MOTION PASSED UNANIMOUSLY.
6-b. Recommendation -- Lease Application/Indcom Properties, LLC (Kenneth
Dunbar) - L,ot 2, Block 1, General Aviation Apron Subdivision # 1,
Amended.
Fred Braun/Ken Dunbar -- Braun indicated Dunbar would like to begin construction
as soon as possible. Braun provided information concerning other properties in the
area in which Dunbar also has interest.
Comniission discussion followed related to lease purchase options.
MOTION:
Coriunissioner Versaw MOVED to recommend approval of lease of Lot 2, Block l,
General Aviation Apron Subdivision # i, Amended for general aviation T-hangars and
verify the use complies with the Airport Master Plan. Corrunissioner Porter
SECONDED the motion.
VOTE:
Zirul Absent Bielefeld Yes Knackstedt Yes
Versaw Yes Ma er Yes Haralson Absent
Porter Yes
MOTION PASSED UNA1vIMOUSLY.
ITEM ?: REPORT
AIRPORT COMMISSION MEETING
JULY 13, 2006
PAGE 2
1-a. Commission Chair - Chair Knackstedt gave an overview of renovations
being made by the Civil Air Patrol.
7-b.- Airport Manager -- No report.
7-c. City Council Liaison -- No report.
ITEM 8: CONII4IISSIONER COD~IlVIENTS AND QUESTIONS -- None.
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD -- None.
ITEM 10:
10-a. Kenai City Council Meeting Action Agendas for June 21 and July 5, 2006.
10-b. 6/2006 Kenai Municipal Airport Enplanement Report.
ITEM 11:
MOTIOlU:
Comnussioner Versaw MOVED to adjourn and Commissioner Porter SECONDED the
motion. There were no objections. SO ORDEREA
Meeting summary prepared by:
Carol L. Freas, City Clerk
AIRPORT COMMISSION MEETING
JCJLY 13, 2006
PAGE 3
~
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en '
Municigsal Airport
Mt,1`110
m 5 - ~-
"Serving the Greater Kenai
Peninsula"
305 N. WILLOW ST. SUI7E 2W 66~NNN, ALASKA 99611
YEJFPFfONE ~7,2837951
FAX 907-2833737
To: Airport Commission
From: Rebecca Cronkhite - Airport Manager ~
Date: August 3, 2006
Subject: Final Review KMC Title 21
The attached documents include the changes proposed by administration and the
Ordinance adopting those changes to KMC Title 21. This information was on the
consent agenda at the August 2 City Councif ineeting and is scheduled for public
hearing on August 16.
Severai Airport Commissioners have requested the opportunity to review and discuss
this ordinance during the commission meeting. Administration will review any comments
generated by the Airport Commission, and if in agreement include them in a substitute
ordinance. In any event, the comments of the Airport Commission will accompany the
City Manager's recommendation.
www.ci.kenai.ak.us.
Suggesfed by: Admuustration
CITY OF KENAI
ORDINANCE NO. 2150-2006
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, REPEALING
THE EXISTING KMC 21.05 (AIRPORT ADMINISTRATION AND OPERATION), KMC
21.10 (LEASING OF AIRPORT LANDS), KMC 21.15 (PROVISIONS REQUIRED) AND
EfiVIC 21.20 (POLICY GOVERNING MODIFICATION OF EXISTING LEASES}, AND
REPLACING THEM WITH KMC 21.05 (AIRPORT ADMINISTRATION AND OPERATION),
KMC 21.10 (LEASING OF AIRPORT RESERVE LANDS) AND KMC 21.15 (LEASE AND
SALE OF AIRPORT LAND OUTSIDE OF THE AIRPORT RESERVE).
WHEREAS, the City of Kenai has undertaken a Supplemental Airport Master Pian
process in which a comprehensive review of city policies regazding the use. lease and
sale of airport lands was completed: and.
WHEREAS, numerous public hearings were held during the process, including
meetings with the Kenai City Councff. Airport Commission. Planning and Zoning
Commission, the Kenai Economic Development Strategies group, and members of the
public, in order to increase public comment and participation during the process; and,
WHEREAS, it is in the best interest of the City of Kenai to create an Airport Reserve
and moderni2e the leasing provisions regarding Airport Reserve land and to prohibit
land sales within the reserve; and,
WHEREt1S, it is in the best interest of the City of Kenai to modernize its leasing
procedures for airport land outside the Airport Reserve and to eliminate the ability of
new lessees to have the vested right to purchase the leased property once the
properiy's development plan has been completed: and,
WHEREAS, there may be instances where it is in the best interest of the City of Kenai
to sell or convey some airport properLy outside of the Airport Reserve: and.
WHEREAS, it is not the intent of this ordinance to alter or amend existing leases
during their original terms: and,
WHEFtEAS, extensions or renewals of existing leases not governed by the terms of that
lease shall be processed according to the provisions of this ordinance, and,
WHERF.AS. it is in the best interest of the City of Kenai to enact the new policies and
procedures as shown in Attachments A. B and C.
NOW, THEREFORE, BE PI' ORDAINED BY THE COUNCIL OF THE C1TY OF KENAI,
AI,ASKA that: KMC 21.05. 21.10, 21.15 and 21.20 are hereby repealed and KMC
21.05, 21.10 and 21.15 as shown on Attachments A. B and C are hereby enacted.
Ordinance No. 2180-2006
Page 2 of 2
PASSED BY THE COUNCIL OF THE CITY OF KENAI, AL[ISKA, this 16~~ day of August,
2006.
PAT PORTER. MAYOR
A'I`PEST:
Carol L. Freas, City Clerk
Introduced: August 2, 2006
Adopted: August 16, 2006
Effective: September 16, 2006
{7/27/06 sp)
Tfitle 21
KENAI MUNICIPAL AIRPORT AND THE AIRPORT RESERVE
Chapters:
21.05 Airport Administration and Opeeation
2~.10 Leasing of Airport Reserve Lands
21.15 Leasing of Non-Airport Reserve Lands
21.20 Airport Commission
Chapter 21.05
AIRPORT ADMINISTRATION AND OPERATION
Sections:
21.05.010
21.05.020
21.05.030
21.05.040
21.05.050
21.05.060
21.05.070
21.05.080
Airport Reserve.
Airport Reserve boundary map.
Definitions.
Regutation of the airport.
Use or occupancy of the Airport Reserve.
Paeking automobiles and aircraft.
Environmental requirements.
Penalties.
21.05.010 Airport Reserve.
(a) There is established an Airport Reserve for the development, expansion, maintenance,
operation, protection, and perpetuation of the Kenai Municipal Airport. The boundaries of the
Airport Reserve are established as shown on the map codified as 21.05.020.
(b) No city-owned land within the Airport Reserve shall be sold or otherwise conveyed out of
City ownership for any purpose, except as provided in a lease executed by the City before the
effective date of this section.
21.05.020 Airport Reserve Boundary Map.
(See Appendix I to this Chapter.)
21.05.030 Definitions.
Unless the context requires otherwise, the following words or phrases have the meaning
given below when used in this Title 21.
(a) "Airport" means ail the facilities and land of the Kenai Municipal Aiiport within the Airport
Reserve.
(b) "Airpor[ Manager" means the official to whom the City Manager has delegated the authority
and responsibility of managing and directing the activities of the airport. "Airport Manager"
includes that person's authorized representative.
Ordinance 2180-2006 Attachment A
Page I of 4
(c) "Airport Reserve" means the city-owned land reserved from sale and designated under
Z1.05.010 and 21.05.020.
(d) "City Manager" means the official to whom the City Council has delegated the responsibility
of managing and directing all activities of the City. "City Manager° inciudes those persons to
whom the Manager has delegated responsibility to perform functions under this Title 21.
21.05.040 Regulation of airport.
The City Manager may regulate the manner in which the airport is operated with
reference to safety, accommodation, user fees, and service to the public. The City Manager is
aathorized to adopt, amend, and repeal such rules and regulations as may be necessary.
Regulations promulgated under authority of this section are effective on the date designated by
the City Manager. The City Council may by resolution at any meeting revise or repeal any
regulation adopted under authority of this section. In this connection, the rules and regulations
adopted prior to the enactment of this section are hereby ratified, approved, and continued in full
force and effect until further amended or repealed by subsequent action of the City Manager.
21.05.050 Use or Occupancy of the Airport Reserve.
No person may use or occupy city-owned land ar facilities within the Airport Reserve for
any purpose unless,
(a) the portion of the land or facility being used or occupied is designated by the city for pubiic
use and the person's use or occupancy conforms to that public use; or
(b) the person first obtains a lease, permit, concession, or other written pernussion fram the City
anthorizing the use or occupancy; or
(c) the person is on a premises with the express or imptied consent of the lessee, permittee, or
concessionaire.
21.05.060 Parking automobiles and aircraft.
It shall be unlawful for a person [o park an aircraft or automobile on the airport in any
location or in any manner contrary to a regulation adopted under KMC 21.05.030, or a rule or
order issued by the Airport Manager pursuant to a regulation adopted under KMC 21.05.030.
The Airport Manager, including the manager's designated representative, shall be vested with
full police powers under the authority of the City to enforce the provisions of this section.
21.05.0'70 Environmental requirements.
(a) A person using the airport shall comply with all applicable environmental laws.
(b) A lessee, pernuttee, or concessionaire who is required under any environmental law to
submit a report or other document about a violation or potential violation of an environmental
law to a regulatory agency shall provide a copy of the document to the City Manager. Any
person who receives a permit from an environmental regulatory agency in connection with the
person's use of the airport shall, within ten (10) days of receipt of the pernut, provide a copy of
the permit to the City Manager.
(c) A lessee, pernilttee, or concessionaire shail provide to the City Manager a copy of
(1) any notice of violation or other notice, claim, or citation alleging a violation of an
environmental law affecting airport property that a regulatory agency issues to or files
against that lessee, pernuttee, or concessionaire; and
Ordinance 2180-2006 Attachment A
Page 2 of 4
(2) any compiaint filed in a court that alleges violation by the lessee, permittee, or
concessionaire of an environmental law affecting airport property.
(d) The City Manager shall require a person responsible for the contamination of airport
property to remediate and return contaminated airport property to an environmentally acceptable
condition to the satisfaction of any regulatory agency having jurisdiction. However, any
regulatory agency approval of a proposed remediation plan that limits the future use of airport
property is subject to approval by the City Manager before the responsible person may begin
remediation activities on the airport. A person remediating contaminated airport property may
nQt unreasonably interfere with
-(1) a lessee's use of, or access to, the lessee's premises, unless
(i) the contamination is a direct result of the lessee's operations; or
(ii) the lessee first expressly consents; or
(2) the operation or development of the airport unless the City Manager first expressly
consents.
(e) If the City Manager has cause to believe a premises or other property on the airport may
have been contaminated, the Manager may cause to be performed an environmental assessment
on the premises or property to establish the presence and source of any contamination and to
describe the environmentai condition of the premises or property. While performing the
assessment, the City will not unreasonably interfere with a lessee's use of, or access to, the
lessee's premises unless the lessee first expressly consents. The City will assume the cost of the
assessment of a premises or property if contamination is not found on the premises or property.
ff contamination is found on the premises or property, the person responsible for the
contamination shall, upon notice from the City Manager,
(1) reimburse the City for the cost of the assessment; and
(2) clean up the contamination.
(f~ For purposes of this section 21.05.060, interference with
(1) a lessee's use of, or access to, the lessee's premises is unreasonable if the interference
(i) poses a safety hazazd or a substantial disruption of the lessee's use of, or access to, the
lessee's premises; or
(ii) can be avoided without materially increasing the cost or materially decreasing the
effectiveness of the effort to achieve remediation satisfactory ro all agencies having
jurisdiction, or a reasonable environmental assessment, as applicable;
(2) the operation or development of the airport is unreasonable if the interference poses a
safety hazard or a material disruption of the operation or development of the airport.
(g) For the purposes of this chapter 21.05, the following terms are defined as follows:
(1) "Contamination"-the unpernutted presence of any released Hazazdous Substance.
(2) "Environmental Assessment" - an assessment of property, prepared in a manner
consistent with generally accepted professional practices, that is supported by reports and
tests that deternune the environmental condition of property and the presence, type,
concentration, and extent of a Hazardous Substance in, on, and under the surface of the
property.
(3) "Environmental Law"-any applicable federal, state, or local statute, law, regulation,
ordinance, code, permit, order, decision, judgment of any govemmental entity relating to
environmental matters, including littering and dumping.
Ordinance 2180-2006 Attachment A
Page 3 of 4
(4) "Aazardous Substance"-any substance that is defined under an Environmental Law as
hazazdous waste, Hazardous Substance, hazardous material, toxic, pollutant, contaminant,
petroleum, petroleum product, or oiL
(5} "Materially Contributed To"-to cause the release or migration of a Hazardous Substance
iri a repoftable quantity as defined under applicable Environmental Law.
(6) "Responsible"-when used in regazd to environmental contamination, means having
materialiy contributed to, assumed under an assignment, or being otherwise liable for by law
or contract.
21.05.080 Penalties.
Violations of this chapter shall be punished as provided for violations in KMC 13.05.010.
Ordinance 2180-2006 Attachment A
Page 4 of 4
~ Chapter 21.10
LEASING OT AIRPORT RESERVE LANDS
Sections:
21.10.010
21.10.020
21.10.030
21,10.040
21.10.050
21.10.060
21.10.070
21.10.080
21.10.090
21.10.100
21.10.140
21.10.120
21.10.130
21.10.140
21.10.150
21.10.160
21.10.170
21.20.180
Airport reserve -and.
Lands avai(able for leasing.
Qualifications of applicants or bidders.
Applications.
Filing fee and deposit.
No right of occupancy; Application expiration.
Peocessing procedure.
Lease amendment or renewal.
Length of lease term.
Rental rate determination.
Reimbursement for cityconstructed improvements.
Lease utilization.
Bidding procedure.
Lease execution.
Form of lease.
Re-evaluation of rent.
Use permits.
Acquisition of real property.
21.10.010 Airport reserve land.
(a) This chapter applies to airport-owned land within the Airport Reserve.
(b) The provisions of this chapter shall not alter or amend the terms or rights granted under
leases existing prior to the effective date of this chapter.
(c) Pending lease appiications filed prior to the effective date of this chapter shall come under the
provisions of KMC 21.10-20. Otherwise the provisions of this chapter shall apply.
21.10.020 Lands available for leaseng.
(a) Subject to the provisions of this chapter, city-owned land within the Airport Reserve may be
leased as provided in this chapter unless the land is idendfied in the latest Federal Aviation
Administration-approved Airport Layout Plan for the airport or in the latest Airport Land Use
Plan as being required for the operation or safety of the airport, or for the construction,
preservation, future construction, or future expansion of facilities on the airport, including
(1) runways, runway safety azeas, ta~ciways, aprons, water lanes, water ta~ciways, and other
aircraft operational azeas;
(2) access roads, public streets, pazking lots, and other facilities for use by motor vehicles;
and
(3) public ternunal buildings.
(b) Notwithstanding (a) of this section,
(1) apron space may be leased, but only for aircraft fueling, loading, unloading, pazking and
maneuvering purposes; and
Ordinance No. 2180-2006 Attachment B
Page 1 of 10
(2) land required for the future construction or future expansion of airport facilities:
(i) may be leased for an interim period not extending beyond the date on whirh the City
Manager determines the land will be required for the construction or expansion; out
(ii) may not be leased if the CiCy Manager deternunes thaY granCing the lease would
interfere with, or jeopardize, Che safe operation of the airport.
21.10.030 Quali~cations of applicants or bidders.
An applicant or bidder for a lease is qualified if the applicant or bidder:
(a),Is an individual at least eighteen (18) yeazs of age;
(bj Is a group, association, or corporation which is authorized to conduct business under the laws
of Alaska; or
(c) Is acting as an agent for another and has qualified by filing with the City Manager a proper
power of attorney or a letter of authorization creating such agency. The agent shall represent only
one (1) principal to the exclusion of himself. The term °agenY' includes real estate brokers and
agents.
21.10.040 Applications.
(a) All applications for lease of lands shall be submitted to the City Manager on forms provided
by the City Manager, together with the non-refundable filing fee and any applicable deposit
required under 21.10.050. The City Manager shall not accept an application that the Manager
determines to be incomplete. Upon receipt of a complete application, filing fee, and any
applicable deposit, the City Manager shall cause the application to be stamped with the date and
time of its receipt.
(b) With every application, the applicant shall submit
(1) a development plan, showing and stating:
(i) The purpose of the proposed lease;
(ii) The use, nature, proposed location on the premises, and estimated cost of
improvements to be constructed;
(iii) The type of construction;
(iv) The anticipated construction beginning and completion dates; and
(v) Whether the intended use and proposed devetopment conforms with the
(i) zoning ordinance of the City;
(ii) comprehensive plan of ihe City;
(iii) latest Federal Aviation Administration-approved Airport Layout Plan for the
airport; and
(iv) the latest Airport Land Use Plan.
(2) A business plan, if the applicant proposes to operate a business on the proposed premises.
The plan must include
(i) a comprehensive description of the proposed business;
(ii) the number of people the applicant expects to employ in the business during its first
full yeaz of operation;
(iii) the number of customers the applicant expects business to serve during its first full
yeaz of operation;
(iv) the applicant's source of capital. If the applicant pians to borrow funds, include a
letter from a bank or other lending institution expressing interest in providing capital; and
Ordinance No. 2180-2006 Attachment B
Page 2 of 10
(v) the applicant's estimate of the gross receipts of the business during its first year of fuli
operation;
(3) A site plan, if the land the applicant desires to lease is not a platted lot or tract. The site
plan must show the location and dimensions of the proposed lease site, but need not be
prepazed by an engineer or surveyor; and
(4) A KPB tax eompiiance certificate and statement thaC the applicant is current with any
charges, fees, rents, taxes or other sums due and payable to the City.
(c) Anytime during the processing of a lease application, the City Manager may request, and the
a~~licant shall supply, any clarification or additional information that the City Manager
reasonably determines is necessary for the City to make a final decision on the application.
21.10.050 Filing fee and deposit.
(a) When submitting an application for lease of land, the applicant shall
(1) pay a non-refundable filing fee in the amount of one hundred dollazs ($100.00); and
(2) make a deposit to show good faith and secure the City in payment of any costs in the
following amounes:
(i) An appraisal cosC recovery deposit of two thousand dollars ($2,000.00); and
(ii) An engineering, surveying and consulting cost recovery deposit of two thousand
dollazs ($2,000.00).
(b) If the City decides to reject the applicant's application and not enter into a lease with the
applicant through no fault of the appiicant or failure of the applicant to comply with any
requirement of this chapter, any deposit made under (a)(2) of this Section .050 will be retumed to
the applicant.
(c) If the City enters into a lease with the applicant any deposit made by the applicant under (a)
of this section .050 will be appiied to the City's engineering, appraisal, and consulting costs
related to the processing of the applicant's application and entering into the lease. The City will
apply any unused balance of a deposit to the rent payable under the lease. If the City's costs
exceed the amount of any deposit, the applicant shall pay the shortage to the City as a condition
of the lease.
(d) If the applicant fails to comply with any requirement of this chapter, causes inordinate delay,
as determined by the City Manager, or refuses to sign a(ease offered to the applicant, the City
Manager will reject the applicant's application and apply any deposit made by the applicant
under (a) of this section to the City's appraisal, engineering, and consulting costs incurred in
connection with the applicant's application. If the City's costs for appraisal, engineering and
consulting wsts exceed the deposits, the applicant will be responsible for these costs. The City
will return any unused deposit balance to the applicant.
21.10A60 No right of occupancy; Application expiration.
(a) Submitting an application for a lease does not give the applicant a right to lease or use the
land requested in the application.
(b) If the City does not reject the application, an application shall expire on Che earlier of the
following
(1) twelve (12) months after the date stamped on the application under 21.10.040(a) if the
City and the applicant have not, by that time, entered into a lease, unless the Council for good
cause grants an extension for a period not to exceed six (6) months; or
Ordinance No. 2180-2006 Attachment B
Page 3 of 10
(2) the deadline date established under KMC 21.10.140, including any extension of time
granted thereunder.
21.10.070 Application processing procedure.
(a) Initial Application Review by:
(1) Assistant to the City Manager (for application completeness; conformance with Title 21);
(2) Airport Manager (for conformance with the Airport Land Use Plan, Airport L,ayout Plan,
Airport Master Plan, FAA regulations, AIP grant assurances, and airport operations);
,(3) City Planner (for conformance with the Airport Land Use Plan, Comprehensive Plan,
` municipal zoning, and future airQort improvement projects); and
(4) City Manager (for adequacy of the applicant's business plan and construction financing
plans).
(b) The above staff shail present to the City Manager their joint recommendation for action on
the application, such as Rejection, Approval, or Approval of a staff altemative.
(c) If the City Manager concurs with the staff recommendation, the Manager will:
(1) issue a rejection letter, stating the reasons for rejection; or
(2) refer the application to the Airport Commission and [he Planning & Zoning Commission
for review and comment, together with the Manager's recommendation for Approval or
Approval of the staff alternative; and
(3) Inform the City Council of the Manager's recommendation.
(d) If the City Manager refers the application to the Commissions, the City Manager will
consider the recommendations of the Corrunissions and
(1) Issue a rejection letter, stating the reasons for rejection; or .
(2) Approve the application or staff alternative, and direct the staff to issue the lease; and
(3) Inform the City Councii of the Manager's decision to approve or reject the appiication; or
(4) Obtain the City CounciPs concusence if the Manager's decision to approve or reject the
application is contrary to the recommendations of the Commissions.
(e) An applicant whose application is rejec[ed by the City Manager may appeai to the City
Council within fifteen (15) days following the date on which the Manager's rejection letter was
hand delivered or placed in the U.S. maii.
(~ If another complete and otherwise approvabie application for lease of the same property is
submitted by a different applicant before the City Manager enters into a lease with the first
applicant, the City Manager will forward the applications, the Manager's recommendation and
the commissions' recommendations to the City Council for approval of the appiication
anticipated to best serve the interests of the City. The Council may approve one of the
applications or direct the City Manager to award a lease of the property by sealed bid.
(g) Grounds for the City Manager to reject an application include,
(1) the applicanYs failure to provide any ciarification or information required under this
chapter;
(2) the applicant's proposed developmenC or use of the land is inconsistent with
(i) the zoning ordinance of the City;
(ii) the comprehensive plan of the City;
(iii) the latest Federal Aviation Administration-approved Airport Layout Plan for the
airport;
(iv) any obligation of the City under the Airport Sponsor Grant Assurances to the Federal
Aviation Administration;
Ordinance No. 2180-2006 Attachment B
Page 4 of 10
(v) the latest Airport Land Use Plan; or
(vi) a regulation of the Federal Aviation Administration applicable to the airport.
(3) the applicant's proposed development or use of the land would violate a federal, state, or
local law, including an ordinance or regulation of the City;
(4) the applicant's failure to reasonably demonstrate the financial viability of the applicanYs
proposed development or of the business the applicant proposes to operate;
(5) the appiicant is in default of any chazges, fees, renCS, Caxes, or other sums due and payable
to the City;
_(6) the applicant is in default of a requiremenC of any lease or contract with the CiCy;
-(7) the application is rejected by the City Council in favor of another application for the same
land under paragraph (~ above;
(8) the City Council decides, under (fl above, to reject all appiications and award a lease of
the land by sealed bid; and
(9) the City Manager or the City Council determines that approval of the application is not in
the bestinterest of the City.
(h) The City Council may waive provisions of this chapter ro lease property or interests in real
property with the United States, the state or an Alaska political subdivision when in the judgment
of the council it is advantageous to the municipality to do so.
21.10.080 Lease Amendment or Renewal.
An application submitted by an existing tenant for an amendment, term extension, or
renewal of the tenanYs lease shall be subject to the requirements and procedures of KNIC
21.10.010 - 21.10.070, except that
(a) KMC 21.10.040(b)(1) and (2) shall not apply to an application that does not include a
proposal to construct new improvements on the premises.
(b) KMC 21.10.040(b)(2} shall not apply to an application that does not include a proposal to
add, delete, or alter a business authorized under the lease.
(c) the appraisal deposit under KMC 21.10.050(a)(2)(i) shall not be required for an application
for a lease amendment that, if approved, will not al[er the size or value of the premises; and
(d) the deposits under KMC 21.10.050(a)(2)(i) and (ii) shali not be required for an appiication
for a lease amendment that, if approved, will make only administrative changes in the lease and
will not alter the authorized use, size, or value of the premises or if the City Manager determines
the City will not incur any engineering, surveying or consul[ing costs.
21.10.090 Length of Lease Term.
(a) The length of term for a lease granted for land within the Airport Reserve will be based on
the amount of investment the applicant proposes to make in the construction of new permanent
improvements on the premises during the first 24 months foilowing the beginning date of the
lease or lease extension.
(h) The length of term for a lease renewal shall be based on the appraised value of the
permanent improvements on the property as set forth in the table in subsection (d)(1).
(c) If the applicant proposes to make less than $100,000 in new parmanent improvements on the
premises, the maacimum term of a new lease shall be five (5) yeazs.
(d) If the applicant proposes to invest $100,000 or more in new permanent improvements on the
premises,
Ordinance No. 2180-2006 Attachment B
Page 5 of 10
(1) the maximum term of a new lease or a renewal of an expiring lease shall be deternrined
according to the following table:
Applicant's Investment
(in U.S. Dollars} Maximum
is at Least Term of Years
I.ess than $100,000 5
$100,000 15
- $125,000 16
$150,000 17
$175,000 18
$200,000 19
$225,000 20
$250,000 21
$275,000 22
$300,000 23
$325,000 24
$350,000 25
$375,000 26
$400,000 27
$425,000 28
$450,000 29
$475,000 30
$500,000 31
$525,000 32
$550,000 33
$575,000 34
$600,000 or more 35
(2) the maximum term extension for an existing lease shali be one (1) year for each $25,000
of additional investment, provided that Che total of the remaining lease term and the exCension
shall not exceed 35 years.
(e) In the lease granted to the applicant, the City Manager will include a provision requiring the
applicant to substantialiy compiete the proposed permanent improvements within a reasonable
period of time, considering the cost and nature of the improvements. Provided however, that the
time allowed shall not exceed 24 months after the effective date of the lease.
(~ Tn the lease extension granted to the applicant, the City Manager will include a provision
requiring the applicant to complete the additional proposed permanent improvements within a
reasonabie time period, considering the cost and nature of the irnprovements provided that the
time period shall not exceed twenty-four (24) months after the effective date of the lease
extension.
(g) The City Manager will include a provision in a lease or lease extension requiring the lessee to
provide a performance bond, deposit, personal guazantee, or other security if the Manager
deternunes security is necessary or prudent to ensure the applicant's completion of the
permanent improvements within the time period set under (e) or (~ of this section. T'he City
Manager will determine the form and amount of the security according to the best interest of the
Ordinance No. 2180-2006 Attachment B
Page 6 of 10
City, considering the nature and scope of the proposed improvements and the financial
responsibility of the applicant.
(h) The applicant shall, within 30 days afCer completion of the permanent improvements, submif
to the Ciry Manager written documentation that the improvements have been completed as
required under (e) or (~ of this section.
(i) If the applicant shows good cause to the City Manager, and the Manager determines the
action is not inconsistent with the City's best interest, the Manager may grant an extension that is
sufficient to allow for the compieuon of the permanent improvements or for submission of
dQCUmentation that the permanent improvements have been completed under this section. No
eztension or combination of extensions granted under either subsection (e) or (t~ will exceed 12
months.
(j) If, within the time required under (e) or (~ of this section, including any extension granted
under (i) of this section, the applicant fails to complete the required pertnanent improvements,
the City Manager will execute the forfeiture of the performance bond, deposit, personal
guarantee, or other security posted by the applicant under (g) of this section to the extent
necessary to reimburse the City for all costs and damages, including administrative and legal
costs, arising from the applicant's failure to complete [he required improvements, and initiate
cancellation of the lease or reduce the term of the lease to a period consistent with the portion of
the improvements substantially completed in a timely manner according to the best interests of
the CiCy.
(k) When used in this section, the following terms shall have the meanings given:
(1) "expiring lease," means a lease with less than one (i) yeaz of term remaining;
(2) "`exisdng lease," means a lease with at least one (1) year of term remaining;
(3) "permanent improvement," a fixed addition or change to land that is not temporary or
portabie;
(i) "permanent improvement" includes
(A) a building, building addition, retaining wall, storage tank, earthwork, fill
material, gravel, and pavement; and
(B) remediation of contamination for which the applicant is not responsible;
(ii) "permanent improvement" excludes items of ordinary maintenance, such as glass
replacement, painting, roof repairs, door repairs, plumbing repairs, floor covering
replacement, or pavement patching.
21.10.100 Rental rate determination.
(a) Beginning in 2007 and at intervais of approximately five (5) yeazs thereafter,xhe City
Manager shall retain the services of an independent, qualified real estate appraiser, certified
under Alaska Statute 08.87 to deternune a zone-based square foot lease rate for all land within
the Airport Reserve that is under lease or available for lease based on the fair mazket value of the
property and the appropriate mazket lease rate for property within the Airport Reserve. L.ease
applications filed after the effective date of this chapter but prior to completion of the initial lease
rate deternunation shall have a rental rate of eight percent (8%) of fair mazket value.
(b) Following the date on which the City Manager accepts the determinations made under (a) of
this section, the Manager shall establish rental amounts for leases as follows:
(1) for each new lease granted by the City under this chapter, the rental shall be as
determined under (a} of this section; and
Ordinance No. 2180-2006 Attachment B
Page 7 of 10
(2) for leases in existence prior to the effective date of this chapter, the lease rate shall be
detemuned as provided in the lease.
(c) Under this section, when deternuning the fair mazket value of the premises of an existing
lease, an appraiser shall appraise the property
(1) in its condition as of the inception of the lease;
(2) plus any improvements or amenities subsequently provided by the City; but
(3) excluding any improvements or amenities provided by the City under 21.10.110, if lessee
has reimbursed the City, or entered into an agreement to reimburse the City, for the wst of
_ihe improvements or amenities.
21.10.110 Reimbursement for city-constructed improvements.
(a) The City Manager may include in a lease a requirement for the lessee to reimburse the City
for the City's cost of:
(1) land clearing, gravel fill, utility extensions and other improvements or amenities on or in
direct connection with the premises, constructed by the City prior to the effective date of the
lease; or
(2) land clearing, gravel fill, utility extensions and other improvements or amenities on or in
direct connection with the premises, which the City agrees to consuuct as a condition of the
lease, subject to City Council approval.
(b) The Lessee shall reimburse the City for the City's cost of constructing the improvements in
ten (10) equal annual payments, plus interest at eight percent (8%) per yeaz on the unpaid
balance. The Lessee may pay the entire remaining balance to the City at any time during the
term of the lease.
21.10.120 Lease utilization.
Leased lands shail be utilized for purposes within the scope of the application, the terms
of the lease and in conformity with the ordinances of the City, and in substantial confornuty with
the Comprehensive Plan and Airport Master Plan. Utilization or development for other than the
allowed uses shall constitute a violation of the lease and subject the lease to cancellation at any
time. Failure to substantially complete the development plan for the land shali constitute
grounds for cancellation.
21.10.130 B[dding procedure.
With the approval of the City Councii, the City Manager may designate a specific lot or
(ots to be teased through competitive sealed bid. In a sealed bid offering, the City Manager shall
awazd the lease to the qualified bidder that offers the highest one-time premium payment, in
addition to the lease rent established under this chapter. Provided however, that high bidder and
the bidder's lease proposal shall be subject to all provisions of lease appiication review and
appmval under this chapter.
21.10.140 Lease execution.
When issuing a lease to an applicant, the City Manager shall hand deliver or mail the
document to the appiicant. The applicant shall have thirty (30) days from the date on which the
lease is hand delivered to the appiicant or deposiYed in the U.S. mait within which to execute and
return the lease to the City Manager. If the applicant shows good cause to the City Manager, and
the Manager deternunes the action is not inconsistent with the City's best interest, the Manager
Ordinance No. 2180-2006 Attachment B
Page 8 of 10
will grant an extension not exceeding thirty (30) days for the applicant to execuCe and return the
lease. Upon the failure of the applicant to timely execute and retum the lease agreement, the
City Manager shall withdraw the offer of the lease in writing.
21.10.150 Form of lease.
(a) When leasing land under this Title 21, the City Manager shall use a standard lease form that
is:
(1) drafted to
(i) provide a reasonable basis for the lessee's use of the premises;
- (ii) foster the safe, effective, and efficient operation of the airport;
(iii) conform with the applicable requirements of the KNIC, including this Tide 21,
Alaska statutes, Federal Aviation Administration regulations, and other applicable federal
law; and
(iv) provide for the best interest of the City.
(2) approved as to form by the City Attorney; and
(3) adopted by resolution of the City Council.
(b) The City Manager may enter into a land lease that deviates from the standazd form adopted
under (a) of this section, if
(i) the Manager believes the action is in the best interest of the City;
(2) the lease is approved as to form by the City Attorney; and
(3) the lease is approved by resolution of the City Council.
21.10.160 Re-evaluation of rent.
(a) At intervals of not less than five (5) years, or at such other time as may be specified in a lease
executed before the effective date of the enactment of this section, the City Manager shall
increase or decrease the rent chazged in the lease to the amount deternuned under 21.10.100.
(b) The City Manager shall change the rent in a lease by giving the lessee written notice at least
thirty (30) days in advance of the effective date of the change.
(c) The "Fair Market Value" of the Premises shall be equal to the then-fair mazket rate for
similar commercial property in the City of Kenai, Alaska (the "Relevant Area"). Ciry shall give
notice to L.essee of City's estimation of the Fair Mazket Value not later than thirty (30) days prior
to the expiration of the then-applicable five-year period, as evidenced and supported by the
written opinion of a real estate appraiser certified under Alaska Statute 8.87, selected and paid
for by the City, familiar with the Relevant Area and who would qualify as an expert witness (the
"First Appraiser"). If L.essee disagrees with such estimate, it shall advise the City in writing
thereof within thirty (30) days of Lessee's receipt of such estimate, as evidenced and supported
by the written opinion of a real estate appraiser certified under Alaska Statute 8.87 (selected and
paid for by I.essee) familiaz with the Relevant Area and who would qualify as an expert witness
(the "Second Appraiser"). The parties shall promptly meet to attempt to resolve their differences
between the First Appraiser and the Second Appraiser concerning the Fair Mazket Value of the
Premises. If City and L.essee cannot agree upon such value then, with ail deliberate speed, they
shall direct the First Appraiser and the Second Appraiser to expeditiously and mutually select a
third real estate appraiser qualified under Alaska Statute 8.87 (selected and paid for jointly by the
parties) familiar with the Relevant Area (the "Third Appraiser"). Within thirty (30) days after
the Third Appraiser has been appointed, the Third Appraiser shall decide which of the two
respective appraisals from the First Appraiser and the Second Appraiser most closely reflects the
Ordinance No. 2180-2006 Attachment B
Page 9 of 10
Fair Market Value of the Premises. The Fair Market Value of the Premises shail iirebuttably be
presumed to be the value contained in such appraisal selected by the Third Appraiser, and the
rental shali be redetermined based on such value. Notwithstanding anything to the contrary
herein, rental shail continue to be paid at the then-applicable rate until any such new rental rate is
established, and Lessee and City shail promptly pay or refund, as the case may be, any variance
in the rental, without interest thereon accruing to the extent [o paid/refunded in a timely fashion.
21.10.170 Use Permits
~ The council may authorize the city manager to grant permits for the temporary use of real
property owned by the city for a period not to exceed one (i) yeaz, without appraisal of the value
of the property or competitive process, for any purpose compatible with the zoning of the land,
and on such terms and for such rentals as the council shall determine.
21.10>180 Acquisition of Real Property
(a) The city, by authorization of the city council, expressed in a resolution for such purpose, may
purchase or acquire an interest in, lease or real property needed for a public use within the airport
reserve on such terms and conditions as the councii 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;
(b) Because of the unique value of real property, the city need not acquire or lease real property
by competitive bidding.
Oadinance No. 2180-2006 Attachment B
Pa~e 10 of 10
Chapter 21.15
LEASE AND SALE OF AIRPORT LAND OUTSIDE
OF THE AIRPORT RESERVE
Sections:
21.15.010 Airport land outside of the Airport Reserve.
21.15.020 Qualifications of applicants or bidders.
2115.030 Applications.
21.15.040 Filing fee and deposit.
21.15.450 Rights prior to leasing.
21.15.060 Processing procedure.
21.15.070 Review.
21.15.080 Appraisal.
21.15.090 Terms of lease.
21.15.100 Annual minimum rental.
21.15.110 Bidding procedure.
21.15.120 Principles and policy of lease rates.
21.15.130 Reimbursement for city-constructed improvements.
21.15.140 Lease execution.
21.15.150 Lease utilization.
' 21.15.160 Form of lease.
21.15.170 Conveyance to encourage new enterprises.
21.15.180 Sale.
21.15.190 Sale prosedure.
21.15.200 Terms for financing sale of City lands.
21.15.210 Determination as to need for public use.
21.15.220 Property exchanges.
21.15.230 Prnperty sale to adjacent owners.
21.15.240 Grant or devotion.
21.15.250 Use permits.
21.15.260 Acquisitian of reat property.
21.15.010 Airport land outside of the Airport Reseeve.
(a) This chapter appties to airport land outside of the Airport Reserve.
(b) The City may seil, convey, exchange, transfer, donate, dedicaee, direct, or assign to use, or
otherwise dispose of airport land outside of the Airport Reserve, including property acquired,
held for, or devoted to a public use, in accordance with this chapter. Disposal or sale of lands
shall be made only when, in the judgment of the City Council, such lands are not required by the
City for a public purpose.
(c) The City may lease, sell or dispose of real property by warranty or quit-claim deed, easement,
grant, pernut, license, deed of trust, mortgage, contract for sale of real property, plat dedication,
lease, or any othes lawful method or mode of conveyance or grant. Any instrument requiring
execution by the City shall be signed by the City Manager and attested by the City Clerk. The
form of any instrument shall be approved by the City Attorney.
Ordinance 2180-2006 Attachment C
Page I of 11
(d) The provisions of this chapter shall not alter or amend the terms or rights granted under
leases existing prior to the effective date of this chapter.
(e) Pending lease applications filed prior to the effective date of this chapter shalt come under the
currently exisung provisions of KMC 21.10-20 and KMC 22.05.030-.045. Otherwise the
provisions of this chapter shall apply.
21.15.020 Qualifications of applicants or bidders.
An applicant or bidder for a lease is qualified if the applicant or bidder:
(a) ~s an individaal at least eighteen (18) years of age or over; or
(b) Is a group, association, or coiporation which is authorized to conduct business under the taws
of Alaska; or
(c) Is acting as an agent for another and has qualified by filing with the City Manager a pmper
power of attorney or a letter of authorization creating such agency. The agent shall represent
only (1) one principal to the exclusion of himself. The term "agent" inciudes real estate brokers
and agents.
21.15.030 Applications.
(a) All appdications for lease of lands shall be filed with the City Manager on forms provided by
the City available at City Hall. Applications shall be dated on receipt and payment of filing fee
and deposit. No applicatian will be accepted by the City Manager unless it appears to the City
Manager to be complete. Filing fees aze not refundable.
(b) With every application, the appiicanc shall submit a development plan, showing and stating:
(1) The puzpose of the proposed lease;
(2) The use, value and nature of improvements to be constructed;
(3) The type of construction;
(4) The dates construction is estimated to commence and be completed (maximum of two (2)
yeacs); and
(5) Whether intended use complies with the zoning ordinance and comprehensive plan of the
City. Applications shall become a part of the lease.
21.15.040 Filing fee and deposi~
(a) When submitting an application for lease of land, the applicant shall
(1) pay a non-refundable filing fee in the amount of one hundred dotlars ($100.00); and
(2) make a deposit [o show good faith and secure the City in payment of any costs in the
following amounts:
(i) an appraisal cost recovery deposit of two thousand dollars ($2,000.00); and
(ii) an engineering, surveying and consulting cost recovery deposit of two thousand
dollars ($2,000.00).
(b) If the City decides to reject the applicant's application and not enter into a lease with the
applicant through no fault of the appiicant or failure of the appiicant to comply with any
requirement of this chapter, any deposit made under (a)(2) of this section will be retumed to the
applicant.
(c) If the City enters into a lease with the applicant any deposit made by the applicant under
(a)(2) of this section wilI be applied to the City's engineering, appraisal, and consuiting costs
related to the processing of the applicanYs application and entering into the lease. The City will
apply any unused balance of a deposit to the rent payable under the lease. If the City's costs
Ordinance 2180.2006 Aaachment C
Page 2 of 11
exceed the amount of any deposit, the applicant shall pay the shortage to the City as a condition
of the lease.
(d) If the applicant fails to comply with any requirement of this chapter, causes inordinate delay,
as deternuned by the City Manager, or refuses to sign a lease offered to the applicant, the City
Manager will reject Yhe applicant's application and apply any deposit made by the applicant
under (a) of this section to the City's appraisal, engineering, and consulting costs incurred in
connection with the applicant's application. If the City's costs for appraisal, engineering and
consulting costs exceed the deposits, the applicant will be responsible for these costs. The City
~u~ll return any unused deposit balance to the applicant.
21.15.050 Rights prior to leasing.
The filing of an application for a lease shall give the applicant no right to lease or to the
use of the land for which they have applied. The appiication shall expire within twelve (12)
months after the application has been made if a lease has not been entered into between the City
and the applicant by that [ime unless the City Council for good cause grants an extension. No
extension may be granted for a period longer than six (6) additional months. I.ease rates are
subject to change on the basis of an appraisal done every twelve (12) months on the propercy
applied for.
21.15.060 Processing procedure.
(a) Applications shall be forwazded to the Planning and Zoning Commission upon receipt. The
Planning and Zoning Commission shall normally consider applications for specific lands on a
first-come, first-served basis if the Commission finds that the appiication is complete and
conforms to the comprehensive plan and the Kenai Zoning Code. Where there is difficulty in
obtaining a perfected application, details as to development plans, etc., or where the appiicant
fails to comply with directions or requests of the Planning and Zoning Commission, any such
priority will be lost. Tf an application for the purchase of City-owned lands, previously
authorized for sale by the Council, is received by the City prior to the Kenai Planning and
Zoning Commission making an affirmative or negative recommendation to the Council
regarding the lease application for the same property, the City may elect to sell said property in
accordance with the provisions of the Code.
(b) The City Council shall normally consider a lease proposal only after approval of the Planning
and Zoning Commission. However, appeals of Planning and Zoning Commission disapproval
may be made to the City Council. Completed lease applications must be presented to the City
Councii within thirty (30) days after approval by the Planning and Zoning Commission.
(c) Where there are two (2) or more applications for the same airport lands for different uses,
then if the Planning and Zoning Commission makes a finding that a subsequent application
would result in use of the lands for a higher and better purpose with a greater benefit to the City
of Kenai and the citizens thereof, then the lease will be issued to such applicant notwithstanding
the provisions of subpazagraph (a) in this section which provide for teasing on a first-come, first-
served basis. Any applicant may appeal to the City Council from a finding or a refusal to find by
the Planning and Zoning Commission by filing an appeal with the City Cierk within seven (7)
days after the finding is made or refused by the Planning and Zoning Commission.
(d) The decision whether or not to lease land rests in the sole discretion of the City Council.
Ordinance 2180-2006 Attachment C
Page 3 of 11
21.15.070 Review.
No leased land may be changed in use, nor may any renewal lease be issued until the
proposed use or renewal has been reviewed by the Planning Commission and approved by the
Council.
21.15.080 Appraisal.
No land shall be leased, or a renewal lease issued, unless the same has been apgraised
within a twelve (12) month period prior to the date fixed for beginning of the term of the lease or
reuewal lease. No lancd shall be leased for less than the approved appraised annual rental.
Appraisals shall reflect ihe number and value of City services rendered the land in question.
21.15.090 Terms of tease.
All leases shall be approved by the City Council before the same shail become effecuve.
The term of any given lease shall depend upon the durability of the proposed use, the amount of
investment in improvement proposed and made, and the nature of the improvement proposed
with respect to durability and time required to amortize the proposed investment.
21.15.100 Annual minimum rental.
(a) Annual minimum rentals shall be computed from the approved appraised market value
utilizing the method as described in KMC 21.15.120 below.
(b) Upon execution of the lease, the lands become taxable to the extent of its leasehotd interest
and lessee shall pay all real property taxes levied upon such leasehold interest in these lands, and
shall pay any special assessments and talces as if he were the owner of said land. .
(c) Rent shall be paid annually in advance. Said payments shall be prorated to conform to the
City of Kenai's fiscal year beginning July 1 and ending 7une 30. If the equivalent monthly
payment exceeds two hundred dollars ($200.00), then the lessee shall have the option of making
payments on a monthly basis.
(d) I.essee shall be responsible for all sales taxes applicable to its operations.
21.15.110 Bidding procedure.
As an exception to general policy listed above, the City Council may designate a specific
lot or lots to be made available only for bid. This provision shall appiy only when there is no
outstanding application pending on the lot or lots. As designated. sealed bids shall be zeceived
offering a one-time premium in addition to the established lease rate. Highest bid, however,
shall be subject to all provisions of review and approval established for all other lease
applications.
21.15.120 Principles and policy of lease rates.
(a) A fair return to the Airport System is mandated by the terms and conditions af the quitclaim
deed and appropriate deeds of release, granting these lands to the Airport System by the Federal
Government. To ensure a fair return, all leases for a period in excess of five (5) years shall
include a redetermination ctause as of the fifth anniversary, and all lands for lease shall be
appraised prior to lease and again prior to redeternrination. I.ease rates:
(1) Shall be based on fair market value of the land, including an appropriate consideration of
facilities and services availabie (public water, public sewer, storm sewers, and other
Ordinance 2180-2Q06 Attachment C
Page 4 of I 1
public utilities) as deternuned by a qualified independent appraiser, considering the best
use of the specified land; and,
(2) Shall be eigh[ percent (8 %) of fair mazket value.
(b) For leases in existence prior to the effective date of this chapter, the lease rate
redetersnination shall be as provided in the lease.
(c) The City Manager shall change the rent in a lease by giving the tessee wriCCen notice at least
thirty (30) days in advance of the effective date of the change.
(d) The "Fair Market Value" of the Premises shall be equal to the then-fair mazket rate for
si~nilaz commercial property in the City of Kenai, Alaska (the "Relevant Area"). City shall give
notice to I.essee of City's estimation of the Fair Mazket Value not later than thirty (30) days prior
to the expiration of the then-applicable five-year period, as evidenced and supported by the
written opinion of a reai estate appraiser certified under Alaska Statute 8.87, selected and paid
for by the City, familiar with the Relevant Area and who would qualify as an expert witness (the
"First Appraiser"). If I.essee disagrees with such estimate, it shall advise the City in writing
thereof within thirty (30) days of I.essee's receipt of such estimate, as evidenced and supported
by the written opinion of a real estate appraiser certified under Alaska Statute 8.87 (selected and
paid for by Lessee) familiu with the Relevant Area and who would qualify as an expert witness
(the "Second Appraiser"). The parties shall promptly meet to attempt to resolve their differences
between the First Appraiser and the Second Appraiser concerning the Fair Mazket Value of the
Premises. If City and Lessee cannot agree upon such value then, with all deliberate speed, they
shall direct the First Appraiser and the Second Appraiser to expedi[iously and mutually select a
third real estate appraiser certified under Alaska Statute 8.87 (selected and paid for jointly by the
parties) familiar with the Relevant Area (the "Third Appraiser"). Within thirty (30) days after
the Third Appraiser has been appointed, the Third Appraiser shall decide which of the two
respective appraisals from the First Appraiser and the Second Appraiser most closely reflects the
Fair Mazket Value of the Premises. The Fair Mazket Value of the Premises shail irrebuttably be
presumed to be the value contained in such appraisal selected by the Third Appraiser, and the
rental shall be redetermined based on such value. Notwithstanding anything to the contrary
herein, rental shall continue to be paid at the then-applicable rate until any such new rental rate is
established, and I.essee and City shall promptly pay or refund, as the case may be, any variance
in the rental, without interest thereon accruing to the extent to paid/refunded in a timely fashion.
21.15.130 Reimbursement for city-constructed improvements.
(a) The City Manager may include in a lease a requirement for the lessee to reimburse the City
for the City's cost of
(1) land clearing, gravel fill, utility extensions and other improvements or amenities on or in
direct connection with the premises, constructed by the City prior to the effective date of
the lease; or
(2) land clearing, gravel fiIl, utility extensions and other improvements or amenities on or in
direct connection with the premises, which the City agrees to construct as a condition of
the lease, subject to City Council approval.
(b) The Lessee shall reimburse the City for the City's cost of constructing the improvements in
ten (10) equal annual payments, plus interest at eight percent (8%) per yeaz on the unpaid
balance. The I.essee may pay the entire remaining balance to the City at any time during the
term of the lease.
Ordinance 2180-2006 Attachment C
Page 5 of 11
21.15.140 Lease execution.
The lease applican[ shall execute and return the appropriate lease aereement wir.h the City
of Kenai within thirty (30) days of mailing the agreement to said appiicant. The lease agreement
shall be prepared in accordance with the requirements of this title. Failure to execute and return
the lease agreement within the specified period shall result in the forfeiture of all leasing rights.
21.15.150 Lease utilization.
I.eased lands shall be utilized for puiposes within the scope of the application, the terms
of3he lease and in confornuty with the ordinances of the City, and in substandal conformity with
the comprehensive plan. Utilization or development for other than the ailowed uses shall
constitute a violation of the lease and subject the lease to cancellation at any time. Failure to
substantially complete the development plan for the land, consistent with the proposed use and
terms of the lease, shall constitute grounds for canceliation.
21.15.160 Form of lease.
(a) When leasing land under this Title 21, the City Manager shall use a standard lease form that
is
(1) drafted to
(i) provide a reasonable basis for the lessee's use of [he premises;
(ii) foster the safe, effective, and efficient operation of the airport;
(iii) conform with the applicable requirements of the KMC, including this Title 21,
Alaska statutes, Federal Aviation Administration regulations, and other applicable
federal law; and
(iv) provide for the best interest of the City.
(2) approved as to form by the City Attorney; and
(3) adopted by resolution of the City Council.
(b) The City Manager may enter into a(and lease that deviates from the standard form adopted
under (a) of this section, if
(1) the Manager believes the action is in the best interest of the City; and
(2) the lease is approved as to form by the City Attorney; and
(3) the lease is approved by resolution of the City Council.
21.15.170 Conveyance to encourage new enterprises.
(a) Notwithstanding any other provisions of this chapter, where it is found that encouragement of
a new commercial, industrial or non-profit enterprise wouid increase the economic stability of
the City of Kenai and would be beneficiai to the City of Kenai, the City Council by resolu6on so
finding may direct conveyance of one or more parcels of City land by the City Manager to such
enterprise upon such terms as to price, conditions of conveyance, and with such contingencies as
may be set forth in said resolution.
(b) In the event the land directed to be conveyed under subsection (a) above consists in part or in
whole of airport lands, then the resolution ordering its conveyance will not be effective until the
City Councii by ordinance has appropriated from the general fund to be dedicated to the airport
the difference between the appraised fair market value of said airport lands and the purchase
price, if any, set forth in sazd resolution.
Ordinance 2180-2006 Attachment C
Page 6 of 12
21.15.180 Sale.
(a) Airport land outside the airport reserve to which the City of Kenai holds title which are not
restricted from sale by the Deed of Conveyance to the City, or which have been released from
such restrictions, which the City Council has detemuned are not required for a public purpose,
may be listed for sale by the City Manager, except that lands which have been leased shali not be
sold unless the Lessee has made a written request to the City to place the land for sale. The
decision whether or not to seil the land rests in the sole discretion of the City.
(b) Sales of land pursuant to subsection (a) above shail be made at not less than fair mazket
va#ue. The purchaser shall execute the "Agreement For Sale of Land" within six months of the
date of appraisal. The City Manager has the option to dispose of such properties in accordance
with the sale procedures set out in this Title:
(1) By negotiated sale; or
(2) By outcry auction to the highest responsible bidder; or
(3) By competitive sealed bids to the highest responsible bidder.
In the event that the sale is not closed within six months of the date of appraisal, the buyer will
be chazged, upon closing, interest computed in accordance with the applicable provisions of the
Kenai Municipal Code, based upon the total sales price for the number of days past the
expiration of the six-month period.
21.15.190 Sale procedure.
(a) The City Manager will obtain such an appraisal for a determination of the minimum price on
said land.
(b) Where any party, hereinafter calied "Applicant," requests that a tract or tracts of land be sold
for which an appraisat will be required, which will require subdividing, platting, or surveying
and staking, or which will require advertising or incurring any other expenditu;es by the City
prior to sale,
(1) No actions in prepazation for sale will be taken by the City until an agreement to purchase
shail be properly executed and filed with the City Manager for the purchase of such land
with payment of sufficient good faith deposit, which shall consist of cash or its equivalent
deposited with the Finance Officer of the City of Kenai, as may be determined by the
City Manager, to cover all expenses of the City and such agreement to purchase shall
further contain the agreement by appiicant to pay any additional costs if said good faith
deposit is insufficient to pay all costs incurred by the City.
(2) If at any time during the process of preparing for sale, the applicant gives notice to the
City Manager of withdrawal of the requese for sale, the City Manager shall stop all
procedures, shall pay expenses incurred prior to termination of sale procedures, and shall
reimburse applicant for any good faith deposit advanced in excess of ail expenses
incurred. (However, if another party desires the sale to proceed, files an application for
sale, executes and files an agreement to purchase, and advances sufficient funds
therefore, then the prior applicant will be reimbursed for expenses chazges which can be
attributed to the subsequent applicant.)
(3) If all actions necessary for preparation for sale have been accomplished, and if neither the
applicant nor any other party purchases said land when fixst offered far sale after such
request, then all expenses incurred in prepazation for the sale will be paid from the good-
faith deposit, and the balance, if any, shall be returned to the applicant. If the sums
Ordinance 2180-2006 Attachment C
Page 7 of 11
advanced as good faith deposit are insufficient to pay all of the costs, the applicant will
be billed for the balance due and normal collection procedures followed.
(4) If the land applied for is sold on public sale set in response to such request to anyone
other than applicant, then on closing of said sale, the good-faith deposit will be refunded
in total to the applicant. The City's expenses will be first deducted from the deposit of
the successful bidder.
(5) If the land in question is sold to applicant, the good-faith deposit advanced, after
deducting the City's expenses, will be applied on the payment due at closing.
(6) If the land in question is to be sold by sealed bid and the appiicant has submitted a valid
- bid, but said applicant is not the high bidder, he may purchase the land by tendering the
City a bid equal to the high bid within five days of the bid opening. If the land sale is
initiated in accordance with KMC 21.15.060(a), the applicant shall be defined as that
party submitting the initial lease application.
(c) If the tract of land proposed to be sold is leased land, the lessee may request the sale of said
land at not less than the fair mazket value. The cunent lessee may request to negotiate a sale
only after, to the satisfaction of the City Manager, development has been comp(eted as detailed
in the development schedule which has been incorporated into the lease agreement. If there is no
development schedule, the lessee may request to purchase the property if there have been
substantial improvements as deternvned by the City Manager. The decision whether or not to
sell the land to the lessee rests in the sole discretion of [he City.
(d) If the tract of land proposed to be sold is not leased land, or is leased land without substantial
improvements, then the tract of land may oniy be sold by outcry auction or by competitive sealed
bids. The decision whether or not to sell the land rests in the sole discretion of the City. If the
tract is to be put up for such competitive auction or sealed bid sale, notice of sale and the mannes ~
in which the land is to be sold shail be published in a newspaper of general circulation within the
City once each week for two successive weeks not less than 30 days prior to the date of sale;
such notice shall also be posted in at least three pubiic places within the City at least 30 days
prior to the date of sale, and such other notice may be given by such other means as may be
considered advisable by the City Manager. Such notice must contain:
(1) the legai description of the land,
(2) a brief physical description of the land,
(3) the area and general location of the land,
(4) the minimum acceptable offer for the land (which shali be its appraised fair mazket
value),
(5) the terms under which the land will be sold,
(6) any limitations on the sale of said land,
(7) the time and place set for the auction or bid opening,
(8) the amount of deposit to be submitted with each bid in order to cover the City's expenses
such as survey, appraisal, and reviews,
(9) any other matters concerning the sale of which the City Manager believes the public
should be informed.
(e) Where a real estate agent furnishes a buyer for City land, the closing agent shall be authorized
to pay said agent a real estate commission of five percent (5%) of the purchase price for the land
or five percent (5%) of the appraised fair market value of the land, whichever is lower, under the
following terms and conditions:
(1) The City Manager shall provide a non-exclusive listing of lands available for sale.
Ordinance 2180-2006 <`.~?~o.chment C
I'a,~3e 8 oF 11
(2) No commission shali be paid to an agent where said agent is a party, or in priviry with a
party, to said sale.
(~ Closing of sale of City lands shall be handled by a title or escrow company within the city
which specializes in closing of real estate sales.
(g) Conveyance of City lands shall be by quit claim or warranty deed furnished by the City, and
buyers are advised that all such conveyances are subject to all liens, encumbrances, restrictions,
and covenants of record and are specifically, without being limited thereto, subject to any
unreleased restrictions contained in the deed or deeds by which the City received title to the land.
Tl~e deed shall be signed by the City Manager and attested by the City Clerk. The form of the
deed shall be approved by the City Attorney.
(h) If a buyer desires to obtain a preliminary commitment for title insurance or title insurance to
the land, then it shall be the responsibility of the buyer to obtain such commitment or insurance
and to pay for the same.
(i) If the tract or tracts of land are sold under terms by which the City is to accept a note as a
portion of the purchase price, the note and accompanying deed of trust must be prepazed by an
attorney, but must be approved by the City Attorney prior to closing.
(j) Said note shall be placed for collection with a bank selected by the City Manager, which may
be changed from time to time, and which shall be the bank in which City funds are deposited.
The set-up fee to initiate collection may be negotiated, and the buyer shall pay the annual
collection fees for such bank collection.
(k) To enable the Ciry to compete on an equal basis with private enterprise in lands disposal, the
City Manager is hereby authorized to negotiate a division of the costs of sale listed in KMC
21.15.190(~(g)(h)(i) and (j) to a maximum of fifty percent (50%) of the required costs being
borne by the City.
21.15.200 Terms for financing sale of City lands.
(a) In order to expedite and facilitate the sale of City lands, the City Manager is hereby
authorized to accept terms far said sales and may accept a note secured by a deed of trust for a
portion of the purchase price thereof, subject to the following restrictions:
(1) If the sale is to a lessee who has placed a lien for financing upon the land or
improvements, then the City Manager is not authorized to sell [he land except for total
cash payment, provided, however, that the City Manager may accept a note secured by a
deed of trust subordinate to the existing security interest if the amount of the note thereby
secured is within the difference between the fair mazket value of the land with
improvements, and the sum of all prior security interests. The sale documents shall be
subject to the same restrictions contained in che lease as the lease provides at the time of
sale.
(2) Prior to making a determination to accept a note and deed of trust from a prospective
purchaser, the City Manager shall secure a preliminary commitment for title insurance (at
purchaser's expense) and a review of the grantee index covering the party desiring to
purchase the land from the title company in the local recording district, and no credit will
be advanced on such sale if there are any delinquent liens or unpaid judgments found in
the title company report until any such judgments or liens are paid and releases therefore
have been filed.
(3) In the event of a credit sale, the down payment required shall be deternuned by the City
Manager, but shall not be less than fifteen percent (15%) of the sales price.
Ordinance 2180-2006 Attachment C
Page 9 of 11
(b) If the City Manager determines that it is in [he Ciry's interest to sell City lands, the sale shall ~
be either a cash transaction or by a note secured by a deed of trust, subject to pazagraph (a)
above, and by no other means. The note and deed of trust shall carry terms as follows:
(1) The term of such note may be set by the City Manager, buC is shall provide for monthly
payments and not exceed twenty (20) yeazs unless a longer period for a specific sale of
land is approved by resolution of the City Council.
(2) Such note shall bear interest at a rate to be determined by the City Council by resoluCion.
21.15.210 Determination as to need for public use.
(a~ Whether land shall be acquired, retained, devoted, or dedicated to a public use shall be
determined by ordinance which shall contain the public use for which said property is to be
dedicated, the legal description of the property, and the address or a general description of the
property sufficient to provide the public with notice of its location.
(b) Whether land previousiy dedicated to a public use should be dedicated to a different public
use or should no longer be needed by the City for public use shall be deternuned by the City
Council by ordinance which shall contain the new public use for which said property is to be
dedicated or the reason the land is no longer needed for public use, the legal description of the
property, and the address or a generai description of the property sufficient to provide the public
with notice of its location.
21.15.220 Property exshanges.
The Council may approve, by resolution, after public notice and an opportunity for public
hearing, the conveyance and exchange of a pazcel of City property for property owned by ,
another person subject to such conditions as Council may impose on the exchange, whenever in
the judgment of the City Council it is advantageous to the City to make the property exchange
and the City shall receive property (inciuding a portion of money) at least equivalent ro the value
of the property exchanged by the City.
21.15.230 Property sale to adjacent owners.
The council may approve, by resolution, after public notice and an opportunity for public
hearing, the sale and conveyance of a parcel of City property at its appraised value to the owner
of adjacent land whenever, in the judgment of the City Council, the parcei of land is of such
small size, shape, or location that it could not be put to practical use by any other party and, in
addition thereto, where there is no foreseeable need of the land for any future use by the City.
21.15.240 Grant or devotion.
(a) The Council, by ordinance, may lease, grant or devote real property no longer needed by the
City for a public purpose to the United States, the State of Alaska, a local political subdivision of
the State of Alaska (including the City of Kenai general fund), or any agency of any of these
governments or non-profit corporation, for a considerauon agreed upon between the City and
grantee without a public sale if the grant or devotion is advantageous to the City.
(b) In the event the land directed to be conveyed under subsection (a) above consists in part nr in
whole of airport lands, then the ordinance ordering its conveyance will not be effective until the
City Council by ordinance has appropriated from the general fund to be dedicated to the airport
the difference between the appraised fair mazket value of said aiiport lands and the purchase
price, if any, set forth in said resolution.
Ordinance 2180-2006 Attachment C
Page 10 of 11
21.15.250 Use permits.
The council may authorize the city manager to grant permits for the temporary use of real
property owned by the city for a period not to exceed one (1) year, without appraisal of the value
of the property or public auction, for any purpose compatible with the zoning of the land, and on
such terms and for such rentals as the council shall determine.
21.15.260 Acquisition of Real Property
(a~The city, by authorization of the city council, expressed in a resolution for such purpose, may
purchase or acquire an interest in, lease or real property needed for a public use within the airport
reserve on such terms and conditions as the council shall determine, but no purchase shalI be
made until a qualiFied appraiser has appraised the property and given the council an independent
opinion as to the ful] and true value thereof;
(b) Because of the unique value of real property, the city need not acquire or lease real property
by competitive bidding.
Ordinance 2180-2006 Attachment C
Page 11 of I1
KMC 21.05.020
AIRPORT RESERVE BOUNDARY MAP
APPENDIX i
~--------i
~
~ I
.~~em /0-a
AGE~A
KEN1iI CITY COUNCIL - REGULAR MEETIIVG
JULY 19, 2006
?:00 P.M.
BENAI CITY COUNCII. CHAMBERS
http: //www.ci.kenai.ak.us
I1'EM A: CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. Consent Agenda
•All items listed with an asterisk (*) aze 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 councff 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: SCEiEDULED PUBLIC COMMENTS (10 minutes)
i. Maqor Porter -- Introduction of Guests/Russian Far East/Alaska City
Links Program Exchange.
ITEM C: UNSCIiEDULED PUBLIC COMII~NTS (3 minutes)
ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS
ITEM E: PUBLIC HEARINGS
Ordinance No. 2168-2006 -- Amending KMC 1.15.130 to Allow Council
Members to Telephonically Attend Up to Six (6) Additional Council
Meetings During a'I~velve (12) Month Period if the Member is Physically
Unable to Attend Due to the Need for Extended Medical Caze and
Treatment of the Member or the Member's Immediate Family.
(Cierl~s Note: Ordinance No. 2168-2006 received a mottnn to adopt at the Juree 7,
2006 Council Meeting, was postponed to June 2I. 2006 with recommended
reuisions to the Juiy 5, 2006 meetirtg. Ordinance No. 2168-2006 was postponed
a# the July 5, 2006 meedng to Ju~.j 19. 2006. The motion to aciopt is aciwe and
on the, floor. If U ts the intention to adopt a substitute, a motion to adopt a
substiiute is required.)
~~~,,, e, s a. Snbstitute A. Ordinance No. 2168-2006 -- Amending KMC
P~`°`GG~ 1.15.130 to Allow Council Members to Telephonically Attend Up to
~~ph~/ Six (6) Additional Council Meetings During a Twelve (12) Month
Period if the Member is Physically Unable to Attend Due to the
Need for Extended Medical Caze and'IYeatment of the Member or
the Member's Immediate Family.
~'~~~ b. Substitute B, Ordinance No. 2165-2006 -- ~mending F~'VIC
1.15.130 to Allow Council Members to Telephonically Attend Up to
Six (6) Additional Council Meetings During a Thirty-Six (36) Month
Period if the Membes is Physically Unable to Attend Due to the
Need for Extended Medical Care and 1Yeatrttent of the Member or
the Member's Immediate Family.
2. Ordinance No. 2171-2006 -- Increasing Estimated Revenues and
_ Appropriations by $11,680.065 in the Runway Safety Area Improvements
Capital Project Fund.
(Cierk's Note: Ordinance No. 2171-2006 received a rrwiiorz to adopt at the July 5,
2006 Councii Meeting and was posiponed to Ju1y 19, 2006. The motiDn to adopt
is actiue nnd on the floor. If tt is the intenrion to approve the substitute, a motton
to arlopt the subsiitute is required.)
~y~,~ ~ a. Substitute Ordinance No. 2171-2006 -- Increasing Estimated
Revenues and Appropriations by $8,654,232 in the Runway Safety
Area Improvements Capital Project Fund.
~~~~ 3. Ordinance No. 21~2-2006 -- Adding Local Amendments to the
International Building Code, 2003 Edition (KMC 4.05.015) and the
International Residentiai Code. 2003 Edition, (KMC 4.32.015) By
Including a Provision in Each Stating that Building Permits Expire'I~vo
(2) Years After the Date of Issuance Unless an Extension is Granted by
the Building Official.
~~~~ 4. Urdinance No. 2173-2006 -- Amending the Kenai Zoning Code at KMC
14.20.150 to Prevent the Same or Substantially Similar Conditional Use
Pernut Applicatzons From Being Considered by the Pianning and Zoning
Commission More Than Once in Any Nine Month Period.
~~ ~ 5. Ordiaaace No. 2174-2006 -- Amending KMC 12.20.030 by Better
Describing and DeBning What Constitutes Prohibited "Junk" and "Litter"
~ ~eC~~ Under the City Code.
~~,~~~, 6. IZesolution No. 2006-38 -- Transferring $10.000 in the General Fund to
~ Purchase a Copier for the Police Department.
'7. Resolutioa No. 2006-39 -- Approving a Contract to QAP for the Project
Entitied. "Kenai Municipal Airport Runway Improvements: Safety Areas.
Pavement, & Lighting 2006-2007" for the Total Amount of 4,977,920.00.
8. Resoiutioa No. 2006-40 -- Designating Departrnent Assistant II Jenifer
Lockwood As Deputy City Clesk.
9. Resolution No. 2006-41 -~ ReJecting All Bids for the Project Entitled,
"Set Net Drive LID -- 2006 - VIP Drive to Watergate Way.° -
ITEM F: MINUTES
ITEM G:
*Regular Meeting of July 5, 2006.
"6/27/Q6 Councii/Library Commission Work Session Notes.
~~~~ 1. Approval - Assignment of Lease, Lot 1, Block 1, Gusty Subdivision
~ a. Assignment of Lease/Edward A. Ferguson to Sun Sims
~~ja b. Amendment to Lease/Updating Insurance Requirements, Use and
Rent Escalation Clause
(Clerk's Note: The Assignment of Lease. Lot 1, Biock 1, Gusty Subdiuision
received a motinn to approue at the July 5, 2006 Council Meeting and was
subsequentLy postponed to July 19, 2006. The motion to approve is actiue and on
the,fioor. A rtwtiDn to amend will be required to approve proposed revisiorts to the
Amendment to Lease.)
~OY~ 2.
~ ~e°JU~3.
.uJ
~~ '~'PEM i:
' , /~'~-deel 1.
,~p/~^o~~t' a.
3.
Discussion -- Bryan Lowe Request
Discussion -- Proposed Library Expansion Sites Update
NEW BUSINESS
Bills to be Ratifled
Approval of Purchase Orders Exceeding $15,000
°Ordinance No. 2175-2006 -- Increasing Estimated Revenues and
Appropriations by $6.250 in the General Fund for a Librarv Grant.
4. *Ordinance No. 2176-2006 -- Increasing Estimated Revenues and
Appropriations by $17,187.05 in the Generai Fund for an Alaska
Highway Safety Program Grant.
5. 'Osdiaance No. 2177-2006 -- Increasing Estimated Revenues and
Approprlations by $2,500 in the General Fund for Police Training.
6. 'Ordinaace No. 2178-2006 -- ~lnding that Certain City-Owned Land,
Described as 'IYact A, Park View Subdivision (Parcel No. 04701015),
Consisting of 2.092 Acres and Shown on the Attached Map, is Required
for a Public Purpose.
~
7. Approval -- Authorizing the City Manager to Execute an Underground
~~~ , Easement Across City-Owned 1Ydeland and Uplands for the Purposes of
Installation of Fiber-Optic Communication Cables.
ITEM I: COMMISSION/COMMITTEE REPORTS
1. Council on Aging
2. Airport Commission
3. Harbor Conunission
4. Library Commission
5. Parks & Recreation Comnussion
6. Pianning & Zoning Commission
7. Miscellaneous Commissions and Comsnittees
a. Beautification Committee
b. Alaska Municipai League Report
YTEM J: REPORT OF THE MAYOR
ITEM K: ADMIliTISTRATION REPORTS
1. City Manager
2. Attomey
3. City Clerk
ITEM L: DISCUSSION
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION -- Evaluation of City Clerk.
ITEM M: .419JOURNMENT
AGENDA
KENAi CITY COUNCIL - REGULAR MEETING
?sUGUST 2, 2006
7:00 P.M.
KENAi CITY COUNCIL CFIAMBERS
http: / /ww~v.ci.kenai.ak.us
I~'EM A: CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
4. ConsentAgenda
*All items listed with an asterisk (*) are considered to be routine and non-
controversial by the council and wili 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: SCIiEDULED PUBLIC COMMENTS (10 minutes)
~~p%`G L, Penny Cazty, Salamatof Native Association -- Proposed
GGZG'u Development/±6 Acres- Marathon Road.
ITEM C: UNSCIiEDULED PUBLIC COMMENTS (3 minutes)
ITEM D: REPORTS OF KPB ASSEMBLY LEGISLATORS AND COUNCILS
ITEM E: PUBLIC HEARINGS
~~e~~ ~~ l. Ordinance No. 2175-2006 -- Increasing Estimated Revenues and
Appropriations by $6,250 in the General Fund for a Library Grant.
~U~,~( 2. Ordinance No. 2176-2006 -- Increasing Estimated Revenues and
Appropriations by $17,187.05 in the General Fund for an Alaska
Highway Safety Program Grant.
~~.~ 3. Ordinance No. 2177-2006 -- Increasing Estimated Revenues and
Appropriations by $2,500 in the General Fund for Police Training.
~~ll.~ 4. Ordinanee No. 2178-2006 -- Finding That Certain City-Owned Land,
~ Described as 1Yact A, Park View Subdivision (Parcel No. 047010I8),
~~ /t/~ `'
~ Consisting of 2.092 Acres and Shown on the Attached Map, is Required
for a Public Purpose.
~~~,~~ 5. Resolution No. 2006-42 -- Approving a Contract to Zubeck, Inc. for the
Project Entitled Kenai Maintenance Shop Sewer Extension - 2006 for the
Total Amount of $58,136.70.
~~'~~~' 6. Resolutaon No. 2006-43 -- Rejecting Ali Bids for the Project Entitied
Kenai Soccer Park Construction -- 2006.
~~~~/ij. 7. Resolution No. 2006-44 -- Rejecting All Bids for the Project Entitled Leif
Hansen Park Sprinklers -- 2006.
j~~,~d ~ 8. Resolution No. 2006-45 --17ansferring $80,000 in the Airport Shop
Site Remediation Capital Project Fund.
~~~ 9. Resolution No. 2006-46 -- Transferring $75,000 in the Wellhouse 4
Capital Project Fund From Construction to Engineering.
ITEM F: MINUTES
*Regular Meeting of July 19, 2006.
YTEM G:
YTEM H: NEW BUSINESS
~Dr6~~ l. Bilis to be Ratified
~r~~ 2. Approvai of Purchase Orders Exceeding $15,000
3. *Osdinance No. 2179-2006 -- Increasing Estimated Revenues and
Appropriations by $250,000 in the Airport Fund to Purchase Fire
'I7aining Props and Equipment.
4. *Ordinance No. 2180-2006 -- Repealing the Existing KMC 21.05
(Airport Administration and Operation), KMC 21.10 (Leasing of Airport
Lands), KMC 21.15 (Provisions Required) and KMC 21.20 (Policy
Governing Modification of Existing Leases), and Replacing'I'hem With
KMC 21.05 (Airport Administration and Operation), KMC 21.10 (Leasing
of Airport Reseroe Lands) and KMC 21.15 (Lease and Sale of Airport Land
Outside of the Airport Reserve).
~/~`e~ 5. Approval -- Lease Application -- Lot 2, Block 1, General Aviation Apron
Sub. #1, Amended - Indcom Properties, LLC (Kenneth Dunbar)
~ "~
~ 6. Approval -- Lease Applications - Lots 9, 10, and 11, Block 1, F.B.O.
/~~~ Subdivision - Indcom Properties, LLC (Kenneth Dunbar).
~~~~ 7. Approval -- Amendments to City of Kenai Mini-Grant
~~+!~'~~ Overview/Procedures.
~~~~~,/8. Discussion -- Identification of Priorities for $322,000 I.egislative Alaska
Department of Commerce & Community Economic Development Grant
Funding.
Cp~cc,! ul:/%9
~~~~G, 9. I3iscussion -- Proposed Statewide Anti-Methamphetamine Abuse
~ Education Campaign.
10. Discussion -- Extension of Construction Schedule/Lots 13 & 14, Block
~~~' 1, Cook Inlet Industrial Air Park -- David and Michael Schiliing, d/b/a
Schilling Rentals.
ITEM I: COMMISSION/COMMITTEE REPORTS
_ 1. Council on Aging
2. Airport Coimnission
3. Harbor Conunission
4. Library Commission
5. Pazks & Recreation Cominission
6. Planning & Zoning Coimnission
7. Miscellaneous Coinmissions and Coininittees
a. Beautification Cominittee
b. Alaska Municipal League Report
c. Stranded Gas
ITEM J: REPORT OF THE MAYOR
ITEM K: ADMIIVI~TRATION REPORTS
l. City Manager
2. Attorney
3. City Clerk
ITEM L:
1. Citizens (five minutes)
2. Council
-- None Scheduled
ITEM M: ADJOURNMENT
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Munieepal Airport
Airport Manager's
Monthly Report
July 12, 2006
Projects: Several small airport improvement projects are in the works. A new sprinkler
system is now installed to serve the public side of the Terminal building. This
automated system allows for more efficient watering of grass, flower beds and hanging
baskets while freeing staff up for other duties.
The first phase construction of a pubiic parking lot at the south end of the airport
to serve charter companies and general aviation begins Friday with the perimeter fence
relocation. After that, our crews will go in and grade and hang signage. The new
parking lot surface will be improved with roto-mill from the runway project. A variety of
payment options are available for this parking lot. Our current tenants will have the
option of purchasing designated spots on a year-round basis for their customers and
employees, a self pay station wili be provided for the pubiic, and a coupon or permit
parking system will be availabie for frequent users.
The pavement markings in front of the Terminal have been repainted and new
signage instalied in the transient aircraft parking area.
Fish Haul: We continue to see increased fish haui flights by Northern Air Cargo,
Lyndon Transport and Universal Air.
Enplanements: Numbers are up almost 11 % over last year and July is traditionally the
busiest month for passengers. In addition to an increase in scheduled air carrier
enplanements, we also are seeing an increase in charter activity. Activity in the short
and long term parking lots is stable for the summer season; therefore, our assumption is
that the increase in summer tra~c is primarily due to tourism and outside business
interests.
Lease Lots: We have conducted several tours for persons interested in leasing airport
property for hangar construction and T-hangars and Ms. Howard is processing four
airport lease applications.
Corporate Jet Activity: The Kenai River Classic was held July 6 through 9~h, and
corporate jets started arriving the night of July 5. Four jets elected to remain in Kenai
parked on our ramp; while four other jets dropped off passengers and returned during the
weekend. The jets ranged in size from Gulfstream V's owned by General Dynamics and
Honeyweii to Shell Oii's Falcon 2000 and Oshkosh's Citation. Airport staff assisted in
parking aircraft, escorting passengers, and assisting pilots with securing fuel and catering
needs. The airport collected around $350 in parking and landing fees.