HomeMy WebLinkAbout2025-06-12 Airport Commission PacketKenai Airport Commission
"I Regular Meeting
June 12, 2025 - 6:00 PM
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Kenai City Hall - Council Chambers
KµµaN A 210 Fidalgo Ave., Kenai, AK 99611
Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Agenda Approval
B. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker)
1. Bronze Bears Project, Mary Bondurant and Christine Cunningham
C. UNSCHEDULED PUBLIC COMMENT (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
D. APPROVAL OF MINUTES
,1..... May 8, 2025 Regular Meeting Minutes.......................................................................... Page 3
E. UNFINISHED BUSINESS
F. NEW BUSINESS
Discussion/Recommendation — Recommending Council Approve the Sixth Amendment to
the Airline Operating Agreement at the Kenai Municipal Airport ..................................... Page 6
Discussion/Recommendation — Recommending Council Approve a Special Use Permit with
UPSCO United Parcel Service for Aircraft Parking....................................................... Page 18
Discussion/Recommendation — Recommending Council Approve a Special Use Permit with
Crowley Fuels LLC for Apron Fueling Area................................................................. Page 28
Discussion/Recommendation — Recommending Council Approve a Special Use Permit with
Everts Air Fuel, Inc. for Aircraft Parking........................................................................ Page 39
Discussion/Recommendation — Recommending Council Approve a Lease of Airport Reserve
Land for the Property Described as Lot 3, Block 2, General Aviation Apron According to Plan
No. 73-68 with Shilling Rentals..................................................................................... Page 50
G. REPORTS
1. Airport Manager
2. Commission Chair
.... City Council Liaison...................................................................................................... Page 56
H. ADDITIONAL PUBLIC COMMENTS (Public comments limited to five (5) minutes per speaker)
I. NEXT MEETING ATTENDANCE NOTIFICATION -July 10, 2025
Airport Commission Page 1 of 2
June 12, 2025
1
J. COMMISSIONER COMMENTS AND QUESTIONS
K. ADJOURNMENT
L. INFORMATION ITEMS
J..... Administrative Report................................................................................................... Page 62
Registration is required to join the meeting remotely through Zoom. Please use the link below to register:
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The agenda and agenda items are posted on the City's website at ....................................................Inii.ciil'.X Copies of the agenda items are
available at the City Clerk's Office or outside of Council Chambers prior to the meeting. Please contact the Airport
Manager at 907-283-7951 for additional details.
**COMMISSIONERS, PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING**
Airport Commission Page 2 of 2
June 12, 2025 ❑
2
KENAI AIRPORT COMMISSION — REGULAR MEETING
MAY 8, 2025 — 6:00 P.M.
KENAI CITY COUNCIL CHAMBERS
210 FIDALGO AVE., KENAI, AK 99611
CHAIR GLENDA FEEKEN, PRESIDING
MINUTES
A. CALL TO ORDER
A Regular Meeting of the Airport Commission was held on May 8, 2025, in the Kenai City Council
Chambers, Kenai, AK. Chair Feeken called the meeting to order at approximately 6:00 p.m.
1. Pledge of Allegiance
Chair Feeken led those assembled in the Pledge of Allegiance.
2. Roll Call
There were present:
Glenda Feeken, Chair Paul Minelga, Vice Chair
James Bielefeld Jacob Caldwell
Dan Knesek James Zirul
A quorum was present.
Absent:
Cody Whicker
Also in attendance were:
Derek Ables, Airport Manager
Sarah Conley, Airport Administrative Assistant
Phil Daniel, City Council Liaison
**Joshua Bolling, Student Representative
3. Agenda Approval
MOTION:
Vice Chair Minelga MOVED to approve the agenda as presented. Commissioner Caldwell SECONDED
the motion.
VOTE: There being no objection; SO ORDERED.
B. SCHEDULED PUBLIC COMMENTS - None.
C. UNSCHEDULED PUBLIC COMMENTS - None.
D. APPROVAL OF MINUTES
1. April 10, 2025 Regular Meeting Minutes
MOTION:
Commissioner Bielefeld MOVED to approve the April 10, 2025 Airport Commission minutes
Commissioner Knesek SECONDED the motion.
VOTE: There being no objection; SO ORDERED.
Airport Commission Meeting Page 1 of 3
May 8, 2025
3
E. UNFINISHED BUSINESS — None.
F. NEW BUSINESS
1. Discussion/Recommendation -Recommending Council Award a Special Use Permit to Empire
Airlines for 11250 square feet of apron space for aircraft parking.
MOTION:
Commissioner Caldwell MOVED to recommend City Council award a Special Use Permit to Empire
Airlines for 11250 square feet of apron space for aircraft parking. Commissioner Bielefeld SECONDED
the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
2. Discussion/Recommendation — Recommending Council Approve the First Amendment to
the Agreement for ATM Services with Tyler Distributing Company, Inc.
MOTION:
Commissioner Knesek MOVED to recommend City Council approve the First Amendment to the
Agreement for ATM Services with Tyler Distributing Company, Inc. Commissioner Caldwell SECONDED
the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
3. Discussion/Recommendation — Recommending Council Award a contract for Janitorial
Services for the Airport Terminal.
MOTION:
Commissioner Caldwell MOVED to recommend City Council award a contract for Janitorial Services for
the Airport Terminal. Commissioner Bielefeld SECONDED the motion.
Airport Manager Ables gave a staff report from information provided in the packet.
UNANIMOUS CONSENT was requested on the motion.
VOTE: There being no objection; SO ORDERED.
G. REPORTS
1. Airport Manager — Airport Manager Ables reported on the following:
• Kenai Peninsula Air Fair is June 14.
• Aleutian Airlines starts flying June 6.
• Part 139 Inspection took place this week.
2. Commission Chair — Chair Feeken encouraged everyone to attend the Kenai Peninsula Air Fair.
3. City Council Liaison — Council Member Daniel reported on recent actions of the City Council.
[Clerk's Note: Commissioner Zirul arrived 6: 09 p.m.]
H. ADDITIONAL PUBLIC COMMENTS — None.
Airport Commission Meeting Page 2 of 3
May 8, 2025
4
I. NEXT MEETING ATTENDANCE NOTIFICATION —June 12, 2025
Commissioner Knesek noted he may attend remotely.
J. COMMISSION QUESTIONS AND COMMENTS
Vice Chair Minelga asked about the inspection; it was reported that it went well.
K. ADJOURNMENT
L. INFORMATIONAL ITEMS
Administrative Report
There being no further business before the Airport Commission, the meeting was adjourned at 6:12 p.m.
I certify the above represents accurate minutes of the Airport Commission meeting of May 8, 2025.
Meghan Thibodeau
Deputy City Clerk
** The student representative may cast advisory votes on all matters except those subject to executive
session discussion. Advisory votes shall be cast last in the roll call order and shall not affect the outcome
of the official commission vote. Advisory votes shall be recorded in the minutes. A student representative
may not move or second items during a commission meeting.
Airport Commission Meeting Page 3 of 3
May 8, 2025
5
-A,
Municipal Airport
Memo
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 907 23-7951
To: Airport Commission
FAX 907 283a=
From: Derek Ables — Airport Manager
Date: June 5, 2025
Subject: Airline Operating Agreement at the Kenai Municipal Airport
City Administration worked with an airline consultant to negotiate a five-year agreement
that beings July 1, 2025 through June 30, 2030. The City administration also met with
the airlines to discuss the 6t" amendment.
The first year of the agreement has no rate increases. Each of the subsequent four
years starting July 1, 2026 includes a 5% increase to the Exclusive Space, Joint Use
Space, Apron/GSE Rental Rate, and Landing Fee. Each year also includes an 18%
subsidy during the winter months and 6% Subsidy during the summer months. The City
shall also calculate the actual allocated joint used space rental amounts based on
actual passenger enplanement for the fiscal year.
Does Commission recommend Council approve the 6t" Amendment to the Airline
Agreement and Terminal Area Lease Authorizing the City to Enter Into such an
Agreement with Grant Aviation, Kenai Aviation, and Aleutian Airways?
Attachments- 6t" Amendment
www.KenaiAirport.com
SIXTH AMENDMENT
TO THE KENAI MUNICIPAL AIRPORT AIRLINE
OPERATING AGREEMENT AND TERMINAL AREA LEASE
THIS SIXTH AMENDMENT to the Kenai Municipal Airport Airline Operating
Agreement and Terminal Area Lease (the "Sixth Amendment") is made and entered into this
day of , 2025, by and between the City of Kenai, Alaska (the "City"), a political
subdivision of the State of Alaska, and ("Airline"), a corporation
organized and existing under the laws of the State of and authorized to do business in
the State of Alaska.
RECITALS
The circumstances surrounding the making of this Sixth Amendment are as follows:
A. City and Airline are parties to the Airline Operating Agreement and Terminal Area
Lease (the "Agreement") dated June 1, 2008 as amended by the First Amendment dated June 1,
2013, Second Amendment dated July 1, 2016, Third Amendment dated July 1, 2019, Fourth
Amendment dated July 1, 2020, and Fifth Amendment dated April 20, 2022 (herein referred to as
the "Agreement"), under which Airline operates an Air Transportation business and leases
property at the Kenai Municipal Airport.
B. Pursuant to Section 12.20 of the Agreement, the Agreement may be amended in
whole or in part without further consideration upon mutual written consent of City and Airline
who both herein wish to amend the Agreement.
C. Pursuant to Section 2.1 of the Agreement, the term originally began on June 1, 2008
and pursuant to Amendments is set to expire to June 30, 2025 unless further amended.
D. Pursuant to Section 5.2 of the Agreement, the Landing Fee charges shall be based on
the rate and amount then currently approved by the City as provided in Exhibit C.
E. Pursuant to Section 5.3 of the Agreement, rentals for the Airline's Exclusive Use
Space and Joint Use Space shall be based on the rate and amount then currently approved by the
City as provided in Exhibit C.
F. Pursuant to Section 5.4 of the Agreement, the Terminal Apron Aircraft Parking and
GSE Space rentals shall be based on the rate and amount then currently approved by the City as
provided in Exhibit C.
Sixth Amendment - Airline Operating
Agreement and Terminal Area Lease
Page I of 5
LESSOR
LESSEE
a
AMENDMENTS
1. Section 1.1.17 of the Agreement is amended to read in its entirety as follows:
"Signatory Airline(s)" shall mean those primarily commercial passenger service airlines
which provide Air Transportation pursuant to published schedules over specified routes
to and from the Airport and which hold the necessary authority from the FAA to provide
such transportation and that have executed substantially similar agreements to this
Agreement with the City, including term, covering the lease, use and occupancy of
facilities at the Airport. A Signatory Airline or an Affiliate of such airline must lease
Exclusive Use Space at the passenger terminal building, subject to the availability of
space solely determined at the discretion of the City and must operate at least weekly
service to the Airport on a year-round basis. Except as otherwise provided herein, no
Signatory Airline shall have any right pursuant to this Agreement to object to the City's
entry into the Agreement with any other airline.
2. Section 2.1 of the Agreement is amended to read in its entirety as follows:
The term of this amended Agreement (the "Term") shall begin on July 1, 2025
("Commencement Date") and shall terminate on June 30, 2030 (except as it may be
terminated or extended in accordance with this Agreement), and the rentals, fees, and
charges shall be effective on the Commencement Date, but only in the event that the
Premises are then tendered to Airline ready for use and occupancy in accordance with the
terms and provisions of this Agreement.
3. Section 5.3.3 of the Agreement is amended to read in its entirety as follows:
5.3.3 At any time during the current Fiscal Year, the City may decide in its sole
discretion to adjust projected enplanements for the current Fiscal Year provided in
Exhibit C. Such adjustment will result in calculated adjustments to the Airline's
allocated joint use space rental amounts for the remainder of the current Fiscal Year to
reflect the Airline's percent of total enplanements resulting from the City's revised
enplanement projection. However, if only one commercial passenger airline provides
service to the Airport for the remainder of the current Fiscal Year, such adjusted
percentage shall not exceed 50% of total projected enplanements for the current Fiscal
Year.
4. Section 5.3 of the Agreement is amended to include a new subsection 5.3.5 as follows:
5.3.5 Reconciliation of Prior Year Joint Space Rental Allocations - Within sixty (60)
days of the end of each Fiscal Year of the Agreement, the City shall calculate the actual
allocated joint use space rental amounts based on actual passenger enplanements for the
preceding Fiscal Year. The City shall then calculate the amounts of joint use space rental
amounts that should have been paid by each of the Signatory Airlines during the
preceding Fiscal Year based on such actual passenger enplanements following the
Sixth Amendment - Airline Operating
Agreement and Terminal Area Lease
Page 2 of 5
LESSOR
LESSEE
a
calculation methodology provided in Exhibit C. Amounts paid by Signatory Airlines in
excess of actual requirements (surpluses) shall be refunded by the City to the Signatory
Airlines that conducted Air Transportation operations at the Airport during the preceding
Fiscal Year within twenty (20) days of the City's completion of the reconciliation
calculation. The City shall prepare and transmit invoices to the Signatory Airlines that
conducted Air Transportation operations at the Airport for amounts actually required in
excess of amounts paid (deficits) within twenty (20) days of the City's completion of the
reconciliation calculation. Airline shall then pay the City within twenty (20) days of the
invoice date.
If any Signatory Airline's Agreement is terminated for any reason prior to the end of
Term specified in Section 2.1, the City in its sole discretion may conduct a reconciliation
calculation as described in this Section 5.3.5 as of the early termination date.
Under this Section 5.3.5, obligations of the City and the Signatory Airline shall survive
the expiration or earlier termination of this Agreement. Further, the City shall have the
right of offset for any reconciliation amounts it owes to the Airline against any other
obligation of the Signatory Airline to the City that is unpaid.
5. Section 10.2.3 of the Agreement is amended to read in its entirety as follows:
Airline may terminate this agreement if Airline terminates its Air Transportation business
at the Airport, at any time that Airline is not in default in its payments or other
obligations to City hereunder, by giving the Manager one -hundred eighty (180) days
advance written notice. Airline termination shall not be effective unless and until at least
one -hundred eighty (180) days have elapsed after written notice to City specifying the
date upon which such termination shall take effect.
6. Exhibit C - Airline Rate Schedule: Rental rates and fees for the first year of the
Agreement (Fiscal Year July 1, 2025 through June 30, 2026) will reflect no increases
from the prior year. For each subsequent Fiscal Year (July 1 through June 30) of the
Agreement, the Exclusive Space Annual Rental Rate, the Joint Use Space Annual Rental
Rate, the Apron/GSE Annual Rental Rate, and Signatory Landing Fee in Exhibit C will
reflect a 5% annual increase. For every year of the Agreement, rental rates for Joint Use
Space will be subsidized by 18% during the six month period October through March
(the "winter" months) and rental rates for Joint Use Space will be subsidized by 6%
during the six month period April through September (the "summer" months).
7. All other terms and conditions of the Agreement shall continue in full force and effect
except as modified by this Sixth Amendment.
Sixth Amendment - Airline Operating LESSOR
Agreement and Terminal Area Lease LESSEE
Page 3 of 5
a
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year
stated in the individual acknowledgments below.
CITY OF KENAI
Terry Eubank
Its: City Manager
(If Lessee is a Corporation)
ATTEST:
Name
Title
Sixth Amendment - Airline Operating
Agreement and Terminal Area Lease
L00
Page 4 of 5
First Last Name
Its:
LESSOR
LESSEE
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
The foregoing instrument was acknowledged before me this day of
, 2025, by Terry Eubank, City Manager of the City of Kenai, an Alaska
municipal corporation, on behalf of the City.
Notary Public in and for Alaska
My Commission expires:
STATE OF ALASKA )
) ss
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY the foregoing instrument was acknowledged before me this
day of , 2025, by President of an
Alaska corporation, on behalf of the corporation.
Approved by Kenai City Council
Approved as to lease form by City Attorney
Approved by Finance Director
Approved by City Manager
Return to: City Clerk
210 Fidalgo Ave.
Kenai, AK 99611
Sixth Amendment - Airline Operating
Agreement and Terminal Area Lease
Notary Public in and for Alaska
My Commission expires:
Page 5of5
LESSOR
LESSEE
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100
Y
KENAI
_ -_ _ - - .enai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 I www kenai.city
MEMORANDUM
TO: Airport Commission
THROUGH: Derek Ables, Airport Manager
FROM: Sarah Conley, Airport Administrative Assistant
DATE: June 4, 2025
SUBJECT: UPSCO United Parcel Service Special Use Permit
UPSCO United Parcel Service is requesting a Special Use Permit for aircraft parking and loading
on approximately 4,000 square feet of apron space adjacent to their lease lot.
This permit would be effective for 12 months, from July 1, 2025 through June 30, 2026.
UPSCO United Parcel Service Co. INC is current on all fees owed to the City and a current
Certificate of Insurance is on file.
Does Commission recommend Council approve the Special Use Permit to UPSCO United
Parcel Service?
Attachments- Application, Exhibit A, Special Use Permit Draft
Attachment(s)
F-I
SPECIAL USE PERMIT
The CITY OF KENAI (City) grants to UPSCO United Parcel Service Co., Inc.
(Permittee), whose address is a Special Use Permit to conduct aeronautical and/or
aviation -related activities at the Kenai Municipal Airport subject to the requirements and
the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 4,000 square feet as
described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2025 and
ending on June 30, 2026. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2025.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of $466.67 ($1.40/SF/Year) plus
applicable sales tax. *Adjusted for the City of Kenai Schedule of Rates, Charges, and
Fees for Fiscal Year 2026.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of one hundred dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of ten percent (10%) per annum, and penalty of ten percent
(10%) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the
date paid in full. Failure to timely make payments is grounds for termination of this Permit.
(See ¶ 22, Termination)
Special Use Permit UPSCO (Aircraft Loading & Parking) Page 1 of 7
21
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following
purpose(s):
Aircraft Loading and Parking.
NOTE: This permit does not guarantee the exclusive use of the area
identified in Exhibit A. City reserves the right to re -assign Permittee, upon
reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai
Municipal Code and municipal regulations governing the Kenai Municipal
Airport and as those laws and regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial
enterprise not contemplated by this Permit is prohibited without the written
consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in
an area of the Airport other than that specifically designated for that purpose
by the Airport Manager or designated representative. The Airport Manager
or designated representative reserves the right to designate reasonable areas
where aircraft owners may perform services on their own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
Special Use Permit UPSCO (Aircraft Loading & Parking) Page 2 of 7
22
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government -operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad -form contractual, with a per -
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non -
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated "A-" or
Special Use Permit UPSCO (Aircraft Loading & Parking) Page 3 of 7
23
better by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
ill. Permittee shall request a waiver of subrogation against City from
Permittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
V. Evidence of insurance coverage must be submitted to City by July 1,
2025. The effective date of the insurance shall be no later than July 1,
2025.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
Special Use Permit UPSCO (Aircraft Loading & Parking) Page 4 of 7
24
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
13. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
14. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
15. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
16. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
17. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
18. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
19. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
Special Use Permit UPSCO (Aircraft Loading & Parking) Page 5 of 7
25
20. Personality. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25.00 per day. The City of
Kenai is not responsible for any damage to or theft of any personality of Permittee or of its
customers.
21. Termination; Default. This Permit may be terminated by either party hereto by
giving thirty (30) days advance written notice to the other party. City may terminate the
Permit immediately, or upon notice shorter than thirty (30) days, to protect public health
and safety or due to a failure of Permittee to comply with condition or term of this Permit
which failure remains uncured after notice by City to Permittee providing Permittee with a
reasonable time period under the circumstances to correct the violation or breach.
22. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates, charges and fees. Permittee shall make payment within thirty (30) days following
the end of each month and without demand or invoicing from City. Permittee shall also
provide Airport Administration with monthly certified gross take -off weight reports within
ten (10) days following the end of each month for landings for the preceding month.
Airport landing fees shall be paid at the Airport Administration Building, 305 North
Willow Street, Suite 200, Kenai, AK 99611.
23. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on
each aircraft impounded. In addition, a daily storage fee shall be charged for each day the
aircraft remains impounded. Any impounded aircraft that is not redeemed within ninety
(90) days after impoundment shall be considered abandoned and shall be subject to sale at
public auction. Notice of any auction shall be published. Publication shall be in a
newspaper of general circulation in that area for at least once during each of three (3)
consecutive weeks not more than thirty (30) days nor less than seven (7) days before the
time of the auction.
Special Use Permit UPSCO (Aircraft Loading & Parking) Page 6 of 7
26
CITY OF KENAI
Terry Eubank
City Manager
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Date
UPSCO United Parcel Service Co., Inc.
Tyler McNeese Date
Business Manager
ACKNOWLEDGMENTS
ss.
THIS IS TO CERTIFY that on this day of , 2025, the foregoing
instrument was acknowledged before me by TERRY EUBANK, City Manager, of the City
of Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , 2025, the foregoing
instrument was acknowledged before me by Tyler McNeese, the Business Manager, on
behalf of UPSCO, United Parcel Service Co., Inc.
Notary Public for Alaska
My Commission Expires:
Approved as to Form:
Scott Bloom
City Attorney
Special Use Permit UPSCO (Aircraft Loading & Parking)
Page 7 of 7
27
MEMORANDUM
TO: Airport Commission
THROUGH: Derek Ables, Airport Manager
FROM: Sarah Conley, Airport Administrative Assistant
DATE: June 4, 2025
SUBJECT: Crowley Fuels LLC Special Use Permit
Crowley Fuels LLC is requesting a Special Use Permit for aviation fueling on approximately
35,000 square feet of apron fueling area.
This permit would be effective for 12 months, from July 1, 2025 through June 30, 2026.
Crowley Fuels LLC is current on all fees owed to the City and a current Certificate of Insurance is
on file.
Does Commission recommend Council approve the Special Use Permit to Crowley Fuels
LLC?
Attachments- Application, Exhibit A, Special Use Permit Draft
28
City of Kenai
Special Use Permit
Application
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legal or phiysica� description Description of the pr,oiposed business, or act�ivfty inlended:i Aircraft fue inig services,
�s the area to be Used in front of or immed0tely
the same or s! 0 YES ANO
Would the use under this, permit interfere Wth other bUisinesses, through ex�c:essive noise,
you p
What is the term requies,ted (�not to exceed one ypar),?
Requested
Signature: 224^ �� �1
uu� uuuiuui II uu uuuuui II lip
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Print N�amie: Director, Contract Compliance & Pricing
For City Use OrilyDate NI o
LI General Fund 0! pon Reserve: Land City Council ActionlResolution.
L1 Airport Fund 011 Outside Airpart Reserve Account Niumber:
29
EXHIBIT A
F 30
SPECIAL USE PERMIT
The CITY OF KENAI (City) grants to CROWLEY FUELS LLC (Permittee), whose
address is , a Special Use Permit for the fueling area on the apron at the Kenai
Municipal Airport subject to the requirements and the conditions set forth below.
1. Premises. Permittee shall have the non-exclusive right to use 35,000 square feet as
described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2025 and
ending on June 30, 2026. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2025.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of $1,866.67 ($0.64/SF/Year) plus
applicable sales tax. *Adjusted for the City of Kenai Schedule of Rates, Charges, and
Fees for Fiscal Year 2026.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due
(KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure
to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination)
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following
purpose(s):
Special Use Permit FY2025Crowley (Apron Fueling Area) Pagel of 8
31
Aviation Fueling on Apron Fueling Area. NOTE: This permit does not guarantee the
exclusive use of the area identified in Exhibit A. City reserves the right to re -assign
Permittee, upon reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code
and municipal regulations governing the Kenai Municipal Airport and as those laws and
regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial enterprise not
contemplated by this Permit is prohibited without the written consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in an area of the
Airport other than that specifically designated for that purpose by the Airport Manager or
designated representative. The Airport Manager or designated representative reserves the
right to designate reasonable areas where aircraft owners may perform services on their
own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
Special Use Permit FY2025Crowley (Apron Fueling Area) Page 2 of 8
32
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government -operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad -form contractual, with a per -
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non -
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated "A-" or
better by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
ill. Permittee shall request a waiver of subrogation against City from
Special Use Permit FY2025Crowley (Apron Fueling Area) Page 3 of 8
33
Permittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least thirty (30) days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
V. Evidence of insurance coverage must be submitted to City by July 1,
2025. The effective date of the insurance shall be no later than July 1,
2025.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
Special Use Permit FY2025Crowley (Apron Fueling Area) Page 4 of 8
34
discharge of petroleum products or hazardous materials due to Permittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times. Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee's activities.
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above -ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft -parking ramp, inside an aircraft hangar, or within 50'
of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, the National Fire Protection Associations'
"Standard for Aircraft Fueling Servicing" in NFPA 407 (1996 version), and the current
version of the International Fire Codes. All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
14. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
Special Use Permit FY2025Crowley (Apron Fueling Area) Page 5 of 8
35
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
21. Personalty. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai
is not responsible for any damage to or theft of any personalty of Permittee or of its
customers.
22. Termination; Default. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
Special Use Permit FY2025Crowley (Apron Fueling Area) Page 6 of 8
36
to a failure of Permittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates, charges and fees. Permittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City. Permittee shall also provide
Airport Administration with monthly certified gross take -off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite
200, Kenai, AK 99611.
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on
each aircraft impounded. In addition, a daily storage fee shall be charged for each day the
aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days
after impoundment shall be considered abandoned and shall be subject to sale at public
auction. Notice of any auction shall be published. Publication shall be in a newspaper of
general circulation in that area for at least once during each of three consecutive weeks not
more than 30 days nor less than seven days before the time of the auction.
25. Definitions. As used in this Permit, "Permittee" means Crowley Fuels LLC., and
where the context reasonably indicates, its officers, agents, and employees. "Airport"
means the Kenai Municipal Airport.
Special Use Permit FY2025Crowley (Apron Fueling Area) Page 7 of 8
37
CITY OF KENAI
Terry Eubank
City Manager
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
Date
CROWLEY FUELS LLC
Jenny Silva
Director, Contract
Pricing
ACKNOWLEDGMENTS
ss.
Date
Compliance &
THIS IS TO CERTIFY that on this day of , 2025, the foregoing
instrument was acknowledged before me by Terry Eubank, City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , 2025, the foregoing
instrument was acknowledged before me by, Jenny Silva, Director of Contract
Compliance & Pricing, Crowley Fuels LLC, on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Special Use Permit FY2025Crowley (Apron Fueling Area)
Page 8 of 8
38
MEMORANDUM
TO: Airport Commission
THROUGH: Derek Ables, Airport Manager
FROM: Sarah Conley, Airport Administrative Assistant
DATE: June 4, 2025
SUBJECT: Everts Air Fuel, Inc. Special Use Permit
Everts Air Fuel, Inc. is requesting a Special Use Permit for aviation fueling on approximately
30,000 square feet of apron for aircraft loading and parking.
This permit would be effective for 12 months, from July 1, 2025 through June 30, 2026.
Everts Air Fuel is current on all fees owed to the City and a current Certificate of Insurance is on
file.
Does Commission recommend Council approve the Special Use Permit to Everts Air Fuel,
Inc.?
Attachments- Application, Exhibit A, Special Use Permit Draft
39
SPECIAL USE PERMIT
The CITY OF KENAI (City) grants to EVERTS AIR FUEL, INC. (Permittee), whose
address , a Special Use Permit to conduct aeronautical and/or aviation -related
activities at the Kenai Municipal Airport subject to the requirements and the conditions set
forth below.
1. Premises. Permittee shall have the non-exclusive right to use 30,000 square feet as
described in the attached Exhibit A for the uses identified in this Permit.
2. Term. The term of this Permit shall be for 1 year commencing on July 1, 2025 and
ending on June 30, 2026. Regardless of the date of signature, this Permit shall be effective as
of July 1, 2025.
3. Permit Fees. Permittee shall pay the following fees for the privileges extended to
Permittee under this Permit:
A. Permit: Permittee shall pay a monthly fee of $1,600.00 ($0.64/SF/Year) plus
applicable sales tax.
B. Proximity Card for Gate Access: In addition to the general permit fee,
Permittee shall pay a deposit of One Hundred Dollars ($100.00) for the use of each
proximity card issued to Permittee by City to allow for gate access to the Airport to
conduct the uses permitted hereunder. City shall refund this deposit to Permittee
when the card is returned to City. City may exercise a right of offset to apply the
deposit to any outstanding balance due to City from Permittee at the termination of
this Permit.
C. Other Fees: City may assess additional fees for aviation or aviation support
activities and uses not defined in this Permit. If a fee has not been established for
those activities or services, a fee will be established by the Airport Manager.
Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo
Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport
Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees
are payable in advance of each month unless otherwise provided. In the event of
delinquency, interest at the rate of 10% per annum, and penalty of 10% shall also be due
(KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure
to timely make payments is grounds for termination of this Permit. (See ¶ 22, Termination)
4. Use. City authorizes Permittee's non-exclusive use of the Premises for the following
purpose(s):
Special Use Permit —Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Pagel of 8
F42
Aircraft Loading and Parking.
NOTE: This permit does not guarantee the exclusive use of the area
identified in Exhibit A. City reserves the right to re -assign Permittee, upon
reasonable notice, to other areas as airport needs may require.
Permittee shall have the right of ingress and egress to the Airport using only designated
gate access locations (which may require a proximity card) for the use of the Premises.
This Permit, and any access rights allowed hereunder, are for Permittee's use only and may
not be transferred or assigned.
Use of the Premises by Permittee is subject to the reasonable administrative actions of the
City of Kenai for the protection and maintenance of the Premises and of adjacent and
contiguous lands or facilities and is further subject to the following conditions:
Permittee acknowledges that the use granted herein is subject to the Kenai
Municipal Code and municipal regulations governing the Kenai Municipal
Airport and as those laws and regulations may be amended from time to time.
Solicitation of donations or operation of a business or other commercial
enterprise not contemplated by this Permit is prohibited without the written
consent of City.
No person may repair an aircraft, aircraft engine, propeller, or apparatus in
an area of the Airport other than that specifically designated for that purpose
by the Airport Manager or designated representative. The Airport Manager
or designated representative reserves the right to designate reasonable areas
where aircraft owners may perform services on their own aircraft.
5. Airport Operations. Permittee shall ensure that the Permittee, its employees, and
guests, and anyone else acting by, on behalf of, or under the authority of Permittee on the
Airport, that perform any repairs or activities authorized under this Permit act in a manner
that ensures the safety of people and the Airport, the protection of public health and the
environment, and the safety and integrity of the Airport and any premises on the Airport.
Permittee shall employ qualified personnel and maintain equipment sufficient for the
purposes of this provision. The Permittee shall immediately notify City of any condition,
problem, malfunction, or other occurrence that threatens the safety of the Airport, the safety
of persons using the Airport, the public health or the environment, or the safety or integrity
of any premises on the Airport.
Special Use Permit —Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 2 of 8
F43
6. Inspection. The Federal Aviation Administration (FAA) and/or City shall have the
right and authority to inspect, at any time for any purpose whatsoever, the Premises as well
as any and all equipment used by the Permittee under this Permit.
7. Coordination with Airport Management. Permittee shall coordinate all activities
on the Airport with Airport Management, or a designated representative, and shall abide
by all reasonable decisions and directives of the Airport Management regarding general
use of the Airport by Permittee.
8. Radio Transmitting Equipment. Permittee shall discontinue the use of any
machine or device which interferes with any government -operated transmitter, receiver, or
navigation aid until the cause of the interference is eliminated.
9. Insurance. Permittee shall secure and keep in force adequate insurance, as stated
below, to protect City and Permittee. Where specific limits are stated, the limits are the
minimum acceptable limits. If Permittee's insurance policy contains higher limits, City is
entitled to coverage to the extent of the higher limits.
A. Commercial General Liability insurance, including premises, all operations,
property damage, personal injury and death, broad -form contractual, with a per -
occurrence limit of not less than $1,000,000 combined single limit. The policy must
include an endorsement under which the insurer extends coverage to Permittee's fuel
handling activities. The policy must name the City as an additional insured.
B. Worker's compensation insurance with coverage for all employees engaged in
work under this Permit or at the Premises as required by AS 23.30.045. Permittee is
further responsible to provide worker's compensation insurance for any
subcontractor who directly or indirectly provides services to Permittee under this
Permit.
C. Commercial Automobile Coverage with not less than $1,000,000 combined
single limit per occurrence. This insurance must cover all owned, hired, and non -
owned motor vehicles the Permittee uses on the Airport. The policy must name the
City as an additional insured.
D. All insurance required must meet the following additional requirements:
i. All policies will be by a company/corporation currently rated "A-" or
better by A.M. Best.
ii. Permittee shall submit to the City proof of continuous insurance
coverage in the form of insurance policies, certificates, endorsements,
Special Use Permit —Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 3 of 8
F44
or a combination thereof, and signed by a person authorized by the
insurer to bind coverage on its behalf.
ill. Permittee shall request a waiver of subrogation against City from
Permittee's insurer and the waiver of subrogation, where possible,
shall be provided at no cost to City.
iv. Provide the City with notification at least 30 days before any
termination, cancellation, or material change in insurance coverage of
any policy required hereunder.
V. Evidence of insurance coverage must be submitted to City by July 1,
2023. The effective date of the insurance shall be no later than July 1,
2023.
City may increase the amount or revise the type of required insurance on written demand
without requiring amendments to this Permit. City will base any increase or revision on
reasonable and justifiable grounds. Within two weeks of the written demand, Permittee
shall submit to City evidence of insurance coverage that meets the requirements of the City.
10. Assumption of Risk. Permittee assumes full control and sole responsibility as
between Permittee and City for the activities of Permittee, its personnel, employees, and
persons acting on behalf of or under the authority of the Permittee anywhere on the Airport.
Permittee shall provide all proper safeguards and shall assume all risks incurred in its
activities on and access to the Kenai Municipal Airport and its exercise of the privileges
granted in this Permit.
11. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully
indemnify, defend, and hold harmless, the City of Kenai, its officers, agents, employees,
and volunteers from and against all actions, damages, costs, liability, claims, losses,
judgments, penalties, and expenses of every type and description, including any fees and/or
costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees
and expenses incurred in enforcing this provision (hereafter collectively referred to as
"Liabilities"), to which any or all of them may be subjected, to the extent such Liabilities
are caused by or result from any negligent act or omission or willful misconduct of the
Permittee in connection with or arising from or out of Permittee's activities on or use of
the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's
exercise of the privileges granted in this Permit. This shall be a continuing obligation and
shall remain in effect after termination of this Permit.
12. Fuel Spill Prevention and Response Plan. Areas of the Apron have been seal coated
to protect asphalt from adverse effects of petroleum product spills. The City requires that
Special Use Permit —Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 4 of 8
F45
Permittee provide adequate absorbent materials and tools available on the Premises and at the
airport in order to maintain a fuel spill and response capability. Permittee shall be liable for
any damage caused by and costs associated with any spill, the cleanup of any spill, or the
discharge of petroleum products or hazardous materials due to Permittee's use of the Apron
and/or use of the Airport.
Permittee shall provide to City an acceptable fuel spill prevention and response plan and
will maintain fuel spill and response capability. Permittee further agrees to have a copy of
the fuel spill prevention and response plan located in the Permittee's fuel dispensing
equipment at all times. Permittee must comply with the Airport's Storm Water Pollution
Prevention Plan as appropriate to Permittee's activities.
Permittee shall not store any personal property, solid waste, petroleum products, Hazardous
Material as defined by 14 CFR § 171.8, hazardous waste (ignitable, corrosive, reactive, or
toxic) or any hazardous substance on any portion of the Airport. Permittee is aware that
there are significant penalties for improperly disposing of the Hazardous Materials and
other waste and for submitting false information regarding Hazardous Materials, including
the possibility of fine and imprisonment for knowing violations.
Permittee shall immediately remove the material in the event of spillage or dripping of
gasoline, oil, grease, or any other material which may be unsightly or detrimental to the
pavement or surface in or on any area of the Airport.
Permittee may not construct or install any above -ground or underground fuel storage tanks
or dispensing systems at the Airport.
No person shall smoke on an aircraft -parking ramp, inside an aircraft hangar, or within 50'
of any aircraft fuel facility or fuel truck.
Permittee is subject to FAA Advisory Circular 150/5230-4 Aircraft Fuel Storage,
Handling, and Dispensing on Airports, the National Fire Protection Associations'
"Standard for Aircraft Fueling Servicing" in NFPA 407 (1996 version), and the current
version of the International Fire Codes. All inspections of fuel facilities, by City or other
regulating entities to which Permittee is subject, shall be conducted to assure compliance
with the fire safety practices listed in these referenced documents.
13. Hazardous Substances and Materials. Permittee shall conform and be subject to
the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous
substances and materials.
14. No Discrimination. Permittee shall not discriminate against any person because of
the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes
Special Use Permit —Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 5 of 8
F46
the right of City to take any action necessary to enforce this requirement of the Permit.
Permittee will furnish services provided under this Permit on a reasonable, and not unjustly
discriminatory, basis to all users of the Airport and shall charge reasonable, and not
unjustly discriminatory, prices for each product or service provided at the Airport.
15. Licenses and Permits. Permittee shall obtain and maintain all required federal,
state, and local licenses, certificates, and other documents required for its operations under
the Permit. Permittee shall provide proof of compliance to City upon request by the City.
16. Compliance with Law/Grant Assurances. This Permit, and Permittee's activities
conducted under this Permit, is subject to all executive orders, policies and operational
guidelines and all applicable requirements of federal, state, and City statutes, ordinances,
and regulations in effect during the term of this Permit. Further, Permittee shall comply
with all applicable requirements imposed on the Airport by federal law to ensure that the
Airport's eligibility for federal money or for participation in federal aviation programs is
not jeopardized. This Permit is subordinate to the City's grant assurances and federal
obligations.
17. No Exclusivity. The privileges granted under this Permit are not exclusive to
Permittee. City has the right to grant to others any right or privilege on the Airport.
18. Assignment. The privileges granted under this Permit are personal to Permittee and
may not be assigned by Permittee.
19. No Joint Venture. City shall not be construed or held to be a partner or joint
venturer of Permittee in the conduct of its business or activities on the Premises or
elsewhere at the Kenai Municipal Airport.
20. No Waiver. Failure to insist upon a strict compliance with the terms, conditions,
and requirements herein contained, or referred to, shall not constitute or be construed as a
waiver or relinquishment of the right to exercise such terms, conditions, or requirements.
21. Personalty. Permittee shall remove any and all personal property, including all
vehicles, from the Premises at the termination of this Permit (or any renewal thereof).
Personal property placed or used upon the Premises will be removed and/or impounded by
the City, if not removed upon termination of this Permit and when so removed and/or
impounded, such property may be redeemed by the owner thereof only upon the payment
to the City of the costs of removal plus storage charges of $25 per day. The City of Kenai
is not responsible for any damage to or theft of any personality of Permittee or of its
customers.
Special Use Permit —Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 6 of 8
F47
22. Termination; Default. This Permit may be terminated by either party hereto by
giving 30 days advance written notice to the other party. City may terminate the Permit
immediately, or upon notice shorter than 30 days, to protect public health and safety or due
to a failure of Permittee to comply with condition or term of this Permit which failure
remains uncured after notice by City to Permittee providing Permittee with a reasonable
time period under the circumstances to correct the violation or breach.
23. Landing Fees; Fee Schedule. Timely payment of landing fees and other required
Airport fees is a condition of this Permit and, as such, failure to timely pay landing and
other airport fees is grounds for termination. Without limiting the foregoing, Permittee
shall pay landing fees for aircraft landings as set out in the City's comprehensive schedule
of rates, charges and fees. Permittee shall make payment within 30 days following the end
of each month and without demand or invoicing from City. Permittee shall also provide
Airport Administration with monthly certified gross take -off weight reports within ten days
following the end of each month for landings for the preceding month. Airport landing
fees shall be paid at the Airport Administration Building, 305 North Willow Street, Suite
200, Kenai, AK 99611.
24. Impoundment. At the discretion of the Airport Manager, City may impound any
aircraft parked on the Premises after termination of this Permit. Impoundment may be
accomplished by affixing a seal to the door of the aircraft or the moving of the aircraft for
impoundment purposes. Inconvenience or damage that may result from such movement
will be at the risk of Permittee. An impoundment fee plus a towage fee shall be charged on
each aircraft impounded. In addition, a daily storage fee shall be charged for each day the
aircraft remains impounded. Any impounded aircraft that is not redeemed within 90 days
after impoundment shall be considered abandoned and shall be subject to sale at public
auction. Notice of any auction shall be published. Publication shall be in a newspaper of
general circulation in that area for at least once during each of three consecutive weeks not
more than 30 days nor less than seven days before the time of the auction.
25. Definitions. As used in this Permit, "Permittee" means Everts Air Fuel, Inc. and
where the context reasonably indicates, its officers, agents, and employees. "Airport"
means the Kenai Municipal Airport.
Special Use Permit —Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 7 of 8
F48
CITY OF KENAI
M.
Terry Eubank
City Manager
STATE OF ALASKA
THIRD JUDICIAL DISTRICT
EVERTS AIR FUEL, INC.
By:
Date Brian Fay
General Manager
ACKNOWLEDGMENTS
ss.
Date
THIS IS TO CERTIFY that on this day of , 2025, the foregoing
instrument was acknowledged before me by Terry Eubank , City Manager, of the City of
Kenai, an Alaska municipal corporation, on behalf of the City.
Notary Public for Alaska
My Commission Expires:
STATE OF ALASKA )
) ss.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of , 2025, the foregoing
instrument was acknowledged before me by Brian Fay, General Manager, Everts Air Fuel,
Inc., on behalf of the State of Alaska.
Notary Public for Alaska
My Commission Expires:
APPROVED AS TO FORM:
Scott M. Bloom, City Attorney
Special Use Permit —Everts Air Fuel, Inc. (Ramp Aircraft Loading & Parking) Page 8 of 8
F49
KENAI
_ -_ _ - - .enai 1210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 I www kenai.city
MEMORANDUM
TO: Airport Commission
THROUGH: Derek Ables, Airport Manager
FROM: Brandon McElrea, Planning Technician
DATE: June 4, 2025
SUBJECT: Action/Approval — Lease of Airport Reserve Land for the Property
Described as Lot 3, Block 2, General Aviation Apron According to Plat No.
73-68
Schilling Rentals, LLC ("Schilling Rentals") submitted a land lease renewal application of Airport
Reserve Land for the property described as Lot 3, Block 2, General Aviation Apron Subdivision,
located at 155 Granite Point Court (KPB Parcel No. 04324006). Pursuant to Kenai Municipal Code
(KMC) 21.10.080(e) Length of Lease Term, the applicant is requesting a term of 45 years based
on a professional opinion of remaining useful life, supplied by Larson Engineering & Design. The
30-day notice of competitive land lease application will expire on June 16, 2025. As -of -date, the
City has not received any competing lease applications for the subject property.
The applicant intends to continue to use the premises for aviation related purposes. Shilling
Rentals currently holds several leases with the City and is in compliance with the terms and
conditions of their leases.
The subject property is approximately 1.15 acres and located within the Airport Light Industrial
(ALI) Zone. The intent of the ALI Zone is to protect the viability of the Kenai Municipal Airport as
a significant resource to the community by encouraging compatible land uses and reducing
hazards that may endanger the lives and property of the public and aviation users. The continuing
use is permitted in the ALI Zone and is an airport compatible use. Furthermore, the use is
consistent with the 2016 Imagine Kenai 2030 Comprehensive Plan. It supports Goal 5-
Transportation, which has a vision for Kenai Municipal Airport as a gateway to the Kenai
Peninsula.
Does the Airport Commission recommend the City approve a lease renewal application
from Schilling Rentals, LLC for Lot 3, Block 2, General Aviation Apron for a term of 45
years? The Kenai City Council will be notified of the Airport Commission's decision as part of
their evaluation of the lease application. The Airport Commission makes their decision on lease
applications based on the proposed developments compliance with the Airport Land Use Plan,
Federal Aviation Administration regulations, Airport Master Plan, Airport Improvement Program
assurances, and Airport operations. The Planning and Zoning Commission will also review the
application and provide a recommendation to City Council.
Thank you for your consideration.
Attachments
Aerial Map
Application
Professional Opinion
Page 2 of 2
The City of Kenai I wwwLenai.city
51
mw ... .............. //11111//�//�,�,,,,. . .......
. . ....... FOILrrr
Proposed: Use (check one), xi Aeronautical 1 Non-Aeronauticail
. ....... . ...... --- . . ......................... . . ................... - ............ . ..... . ...... . . ...
Do you plan to construct new or additional improvements? (if Yes, aniswer next five questions) L YES 12� NO
............... - — - ------
the improvement change or alter theuse under an, existing lease'? t-- YES NO:)
2, What is the proposed use of the imipirovemient?
. . ....... . ....................... ......
3. What is the estimated value of the irnprovement?
4, d type of improvement?
5, What are the dates construction is estimated to commence a nd be completed?
(generally, construction must be completed within two years)
Est i m ated Start Diate: Estimated Completion Date
Describe the proposed buisiness or activity intended�
Aeronautical operations & storage
How does the proposed lease support a thriving business, residential, recreational, or cultural community?
He,lps to support the community by supporting, local airlines,
Lease Assignment Only: What is the name of the individuat or legal entity the lease is to, be assigned?
Renewal of an Existing Lease (at least one year of term remainiin, Requires new development.
9 i
Lease Term based on: Estimated cost of new improvements and I purchase Price (optional)
il Renewal of an Expiring Lease (less than one year of term; remaininig)& Does not require new development.
Lease Term based oin- F- Purchase Price x � Professional" Estimate of Riem,a in�ng Usefu 1; Life
-I Fair Market Value a"ppraisal andlor 7 Estimated cost of new improvements (optional)
Requested Term for Renewal Based on Term Table, not to exceed'45 Yearsi 45 years. —
Submitting an application for a lease does not give the applicant a, right to d in the application. rhe appilicatilon
shafl expire twelve (12) months after the date the appkcalion, has been rnadie if the City and the applicant have not, by that time, entered into a
�ease, unless the City Council for gioad cause grants an extension for a period not to exceed wix (6) moinths, The Cfty has no obfigation to
U, v�
not in the best inlerest of the City
.. ........... . .......... ........ . 4 2 1/ 2025
Print Naime�
.... ......
April 301, 2025
Rob Marsters
Schilling Rentals
Rei- Lot 3, Block 2i GAA Sub No1 Amended — — BOding Inspection
Mr. �Marsters,
Larsoinii Engineering & Design, P.C. has inspected the structures liocated at
I
property, wi�thiin the Kenai, Airport land leases.
The existing buildings have been recently re -roofed and sided within the last 10 years, 11 did not see signs
of structural material degradation while onsite.
In my professioopinion, I the buildings have proper maintenance, the remaining usefull life will e!xceei
45 years.
Sincerely,,
Signature:
12FZTWTWJZ��
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LAP$C3N ENWNPMRINES & DESMN, — S3 5 11 0 VCCID AVE, KENAa, AIK 996 1 1
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A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
7
N
X
E.
Kenai City Council - Regular Meeting
May 21, 2025 — 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
Action Agenda
3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non -controversial by the council
and will be approved by one motion. There will be no separate discussion of these items unless a
council member so requests, in which case the item will be removed from the consent agenda and
considered in its normal sequence on the agenda as part of the General Orders.
SCHEDULED ADMINISTRATIVE REPORTS
SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker;
twenty (20) minutes aggregated)
Alaska Christian College Update, Dr. Keith Hamilton, President of Alaska Christian College.
2. Kenai Peninsula Children's Advocacy Centers, Request for Funding, Executive Director &
Children's Advocacy Center Director Lindsey Collins, Kenai Child Advocacy Center Manager
Morgan Lyons, and Ryan Grimm.
UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
PUBLIC HEARINGS
ENACTED WITHOUT OBJECTION. Ordinance No. 3470-2025 - Amending the Official Zoning
Map and Land Use Table by Rezoning Twenty -Eight Properties Located Near the Intersection
of the Kenai Spur Highway and Wildwood Drive from Suburban Residential (RS) to General
Commercial (CG) Zoning District. (Administration)
2. FAILED. Resolution No. 2025-32 - Declaring a Right -Of -Way for a 60' by 156' Portion of the
Unnamed Road Along Wildwood Drive as Dedicated on Lots 11& 12, Block 8, Black Gold
Estates 2025 Replat (Plat K1399), Not Needed for a Public Purpose and Consenting to Its
Vacation. (Administration)
3. ADOPTED UNANIMOUSLY. Resolution No. 2025-33 - Authorizing Award of the City -Owned
Lands Appraisal Contract. (Administration)
4. ADOPTED UNANIMOUSLY. Resolution No. 2025-34 - Authorizing the City Manager to Enter
into an Agreement for Janitorial Services at the Kenai Municipal Airport Terminal.
(Administration)
Kenai City Council - Regular Meeting Page 1 of 3
May 21, 2025
56
I
G
H
MINUTES
*Regular Meeting of May 7, 2025. (City Clerk)
UNFINISHED BUSINESS
AMENDED BYSUBST/TUTE. Ordinance No. 3469-2025 - Amending KMC 1.85.060-Conflicts
of Interest Prohibited, to Allow Municipal Officers and City Employees to Participate in Certain
Sales Open to the Public Through a Public Process and Narrowing the Existing Prohibition on
Purchases to Personal Property Items. (Douthit) [On 05/07/25 this item was postponed to
05121125]
• ENACTED UNANIMOUSLY AS AMENDED. Ordinance No. 3469-2025 Substitute
- Amending KMC 1.85.060-Conflicts of Interest Prohibited, to Allow City Employees to
Participate in Certain Sales Open to the Public Through a Public Process and Narrowing
the Existing Prohibition on Purchases to Personal Property Items. (Douthit)
NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
2. *Ordinance No. 3471-2025 - Adopting the Annual Budget, Salary Schedule and Employee
Classification Plan for the Fiscal Year Commencing July 1, 2025 and Ending June 30, 2026 and
Committing $2,850,457 of General Fund, Fund Balance for Future Capital
Improvements. (Administration)
3. *Ordinance No. 3472-2025 - Accepting and Appropriating Grant Funds from the Alaska High
Intensity Drug Trafficking Area for Drug Investigation Overtime Expenditures. (Administration)
4. *Ordinance No. 3473-2025 - Accepting and Appropriating a Grant Received Through the
American Society for the Prevention of Cruelty to Animals to the Kenai Animal Shelter for
Attendance at the Alaska Animal Control Association 2025 Training Conference.
(Administration)
5. *Ordinance No. 3474-2025 - Increasing Estimated Revenues and Appropriation in the
Wastewater, Water & Sewer, and Municipal Roadway Improvements Capital Project Funds to
Transfer Residual Balance from Completed Projects Back to their Original Funding Sources.
(Administration)
6. *Ordinance No. 3475-2025 - Increasing Estimated Revenues and Appropriations in the
General Fund — Legislative Department and Increasing the Purchase Order Amount to BDO
USA, P.C. for the FY2024 and FY2025 Financial Audits. (Administration)
7. APPROVED UNANIMOUSLY. Action/Approval - Extension to Memorandum of
Understanding with the Kenai Historical Society. (Administration)
8. SCHEDULED FOR 712125 AT 2:00 P.M. Discussion — Scheduling a Board of Adjustment
Appeal Hearing.
COMMISSION REPORTS
1. Council on Aging Commission
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
Kenai City Council - Regular Meeting Page 2 of 3
May 21, 2025
6. Beautification Commission
J. REPORT OF THE MAYOR
K. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
L. ADDITIONAL PUBLIC COMMENTS
1. Citizens Comments (Public comments limited to five (5) minutes per speaker)
2. Council Comments
M. EXECUTIVE SESSION
N. PENDING ITEMS
O. ADJOURNMENT
P. INFORMATION ITEMS
The agenda and supporting documents are posted on the City's website at.www. kenai. city, Copies of
resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk's Office at 90 7-283-823 1.
Registration is required o join the meeting remotely through Zoom. Please use the following link to
register:
I I .:://u rnr lb.. f .... /ir . Uing/irg ii heir/ IIh.......lK If: .c
Kenai City Council - Regular Meeting Page 3 of 3
May 21, 2025
58
Kenai City Council - Regular Meeting
June 04, 2025 — 6:00 PM
Kenai City Council Chambers
210 Fidalgo Avenue, Kenai, Alaska
K E N A I
ww.....kena..i.,,,,,,,.c't
...........................................!........,,
**TelephonicNirtual Information a 3**
Action Agenda
A. CALL TO ORDER
1. Pledge of Allegiance
2. Roll Call
3. Approval of the Agenda and Consent Agenda (Public comments on Consent Agenda Items
limited to three (3) minutes per speaker; thirty (30) minutes aggregated)
*All items listed with an asterisk (*) are considered to be routine and non -controversial by the
council and will be approved by one motion. There will be no separate discussion of these items
unless a council member so requests, in which case the item will be removed from the consent
agenda and considered in its normal sequence on the agenda as part of the General Orders.
B. SCHEDULED ADMINISTRATIVE REPORTS
C. SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker;
twenty (20) minutes aggregated)
D. UNSCHEDULED PUBLIC COMMENTS (Public comments limited to three (3) minutes per speaker;
thirty (30) minutes aggregated)
E. PUBLIC HEARINGS
ENACTED AS AMENDED UNANIMOUSLY. Ordinance No. 3471-2025 - Adopting the Annual
Budget, Salary Schedule and Employee Classification Plan for the Fiscal Year Commencing
July 1, 2025 and Ending June 30, 2026 and Committing $2,850,457 of General Fund, Fund
Balance for Future Capital Improvements. (Administration)
2. ENACTED UNANIMOUSLY. Ordinance No. 3472-2025 - Accepting and Appropriating Grant
Funds from the Alaska High Intensity Drug Trafficking Area for Drug Investigation Overtime
Expenditures. (Administration)
3. ENACTED UNANIMOUSLY. Ordinance No. 3473-2025 -Accepting and Appropriating a Grant
Received Through the American Society for the Prevention of Cruelty to Animals to the Kenai
Animal Shelter for Attendance at the Alaska Animal Control Association 2025 Training
Conference. (Administration)
4. ENACTED UNANIMOUSLY. Ordinance No. 3474-2025 - Increasing Estimated Revenues and
Appropriation in the Wastewater, Water & Sewer, and Municipal Roadway Improvements
Capital Project Funds to Transfer Residual Balance from Completed Projects Back to their
Original Funding Sources. (Administration)
5. ENACTED UNANIMOUSLY. Ordinance No. 3475-2025 - Increasing Estimated Revenues and
Appropriations in the General Fund — Legislative Department and Increasing the Purchase
Order Amount to BDO USA, P.C. for the FY2024 and FY2025 Financial Audits. (Administration)
Kenai City Council - Regular Meeting Page 1 of 3
June 04, 2025
6. ADOPTED UNANIMOUSLY. Resolution No. 2025-35 - Approving a Memorandum of
Understanding Between the City of Kenai and the Salamatof Tribe to Recognize Areas of Mutual
Concern and Support, establish a Framework for Cooperative Relationships, and Promote
Government -to -Government Communication for the Benefit of the Community of Kenai as a
Whole. (Daniel)
7. ADOPTED UNANIMOUSLY. Resolution No. 2025-36 - Approving a Memorandum of
Understanding Between the City of Kenai and the Kenaitze Indian Tribe to Recognize Areas of
Mutual Concern and Support, establish a Framework for Cooperative Relationships, and
Promote Government -to -Government Communication for the Benefit of the Community of Kenai
as a Whole. (Daniel)
8. ADOPTED UNANIMOUSLY. Resolution No. 2025-37 - Approving a Limited Road
Maintenance Agreement Between the City of Kenai and the Kenaitze Indian Tribe.
(Administration)
9. REFERRED TO THE PLANNINGI // JULY 2,
. Resolution No. 2025-38 - Renaming South Spruce Street to Kenai Beach Street.
(Knackstedt)
10. ADOPTED UNANIMOUSLY. Resolution No. 2025-39 - Fixing the Rate of Levy of Property
Tax for the Fiscal Year Commencing July 1, 2025 and Ending June 30, 2026. (Administration)
11. ADOPTED UNANIMOUSLY. Resolution No. 2025-40 - Amending the Comprehensive
Schedule of Rates, Charges and Fees to Incorporate Fiscal Year 2026 Budget Changes to
Include Adjusting Airport Fees, Animal Control Fees, Library Fees, Multipurpose Facility Fees,
Building Permit Fees and Adjusting the Monthly Rental Rates for Vintage Pointe.
(Administration)
F. MINUTES
1. *Regular Meeting of May 21, 2025. (City Clerk)
G. UNFINISHED BUSINESS
H. NEW BUSINESS
1. *Action/Approval - Bills to be Ratified. (Administration)
2. *Action/Approval - Purchase Orders and Purchase Order Amendments Requiring Council
Approval in Accordance with KMC 7.15.020. (Administration)
3. *Action/Approval - Special Use Permit to Empire Airlines, Inc. for Use of 11,250 Square Feet
of Apron Space at the Kenai Municipal Airport for Aircraft Parking. (Administration)
4. *Action/Approval - First Amendment to the Agreement with Tyler Distributing Company, Inc.
for ATM Services at the Kenai Municipal Airport Terminal. (Administration)
5. *Ordinance No. 3476-2025 - Increasing Estimated Revenues and Appropriations in the
General Fund - Fire Department Personnel Budget for Fiscal Year 2025 for Unanticipated
Overtime Costs Resulting from Vacancies and Retirements. (Administration)
6. *Ordinance No. 3477-2025 - Increasing Estimated Revenues and Appropriations in the
General Fund - Police Department and Accepting Grants from the United States Department of
Justice and Alaska Municipal League Joint Insurance Association for the Purchase of a Ballistic
Vest. (Administration)
Kenai City Council - Regular Meeting Page 2 of 3
June 04, 2025
60
7. *Ordinance No. 3478-2025 - Enacting Kenai Municipal Code Section 13.30.070 - Travel
Through Private or Public Property, and Incorporating a Fine into Kenai Municipal Code
13.10.015 - Minor Offense Fine Schedule. (Administration)
I. COMMISSION REPORTS
1. Council on Aging Commission
2. Airport Commission
3. Harbor Commission
4. Parks and Recreation Commission
5. Planning and Zoning Commission
6. Beautification Commission
J. REPORT OF THE MAYOR
K. ADMINISTRATION REPORTS
1. City Manager
2. City Attorney
3. City Clerk
L. ADDITIONAL PUBLIC COMMENTS
1. Citizens Comments (Public comments limited to five (5) minutes per speaker)
2. Council Comments
M. EXECUTIVE SESSION
N. PENDING ITEMS
O. ADJOURNMENT
P. INFORMATION ITEMS
The agenda and supporting documents are posted on the City's website at.www. kenai. city, Copies of
resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior
to the meeting. For additional information, please contact the City Clerk at 907-283-8231.
Registration is required o join the meeting remotely through Zoom. Please use the following link to
register:
I tt s-Hus02welb.z.00m.us/mee-lin /ire iisteir/zU�7iri::14O1F�Oi/ OVVIIII IE::31E:::::ol�7rnr
I..................................................................................................................................................g..............0.................................................................................................X..........................1.............................................,
Kenai City Council - Regular Meeting Page 3 of 3
June 04, 2025
61
ENA
Airline
Enplanements
iiiijit
Kenai
Grant
Kenai
Total
Total
Change from
Month
2025
2025
2,024
2024
2025
2024
2024 to 2025
J(,jrira
January
4466
70-03
1719
--54-69
532
February
4001
917
3207
1553
4918
4760
158
c
March
3973
1072
3508
1325
5045
4833
212
Aprni14464
1071
3847
1326
5535
5173
362
q v
May
+4024
1546
5570
June
4635
1624
6259
July
6585
2231
................
............................. .
8816
August
7584
2798
10382
September
5291
1583
6874
October
5090
1528
................. . . ........... .
6618
.....
November
4301
1267
5568
December
4338
1321
5659
Total 116904
14063
55628
. ....
1982 . . 1 ...
...... ..... ... .
....... 20967
754491
1264,
12000
10000
8000
6000
4000
2000
0
-- Total 2025 Total 2024
wM
im Grant 2025 F Kenai 2025
F 62
ENA Air Traffic Control Tower Operations
Year
2022
2023
20247-2025
January
2882
4009
4927
4451
February
3117
2965
4313
5250
March
4069
4874
5192
6099
April
4697
4957
6022
6215�
May
5472
6786
6297
June
6072
5660
6998
July
5654
6337
6991
August
5020
6007
7602
September
5215
5950
6118
October
5312
5724
5710
November
3517
3404
5140
December
2907
36991
4010
Total
53934
60372
69320
220151
8000
7000
6000
5000
4000
3000
2000
1000
0
2022 --4"-2023 2024 -*-- 2025
80000
70000
60000
50000
40000
30000
20000
10000
0
2022 2023 2024 2M
F 63
ENA Terminal Vehicle Parking Revenue
Year
January
February
March
$
$
$
2024
17,977
19,877
20,848
$
$
$
2025
22,502
21,354
24,111
April
$
22,493
$
24,932
May
$
20,728
iJune
$
21,572
July
$
25,668
August
$
25,555
September
$
23,259
October
$
32,284
November
$
26,099
December
$
25,763
Total
----------
$
L-Z.—
282,124
�92,898
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
$5,000
F 64
5 \\\\
Kenai.........................................
.
RONZE
I
June 12, 2025
Kenai Airport Co
nrn,n�r t�ti n,r
.....................
A distinctive & memorable
welcome for visitors and
the community.
This unique bronze sculpture, featuring a brown bear
sow and her two cubs, will provide an unforgettable
experience, enhancing the cultural and artistic
landscape of the community. It will also serve as a
popular photo opportunity, encouraging social media
sharing and broadening the reach of Kenai's cultural
presence.
By integrating wildlife and culture into
infrastructure, the sculpture highlights the terminal
and serves as a powerful landmark, celebrating the
natural beauty, wildlife, connection to nature, and
our community's rich cultural and artistic landscape.
• • • • • • • • • • • • • • • • • • • • •
The Sculptures
The life-size and life -like sculptures are designed to capture the essence of the Kenai Peninsula and its wild
treasures and beauty. The interactive element of the sculpture is a key feature. The adult sow, having just
caught a salmon, is making her way towards one of the yearling cubs on the bank. On the other stream bank,
another brown bear cub stands and makes direct eye contact with airport passengers and visitors, creating a
unique and engaging experience.
"In order to get to the salmon in the Kenai River, bears must travel through neighborhoods."
—City of Kenai All -America City Presentation (2011)
T
• • • • • • • • • • • • • • • • • • • • •
The Landscaping
The landscaping depicts a stream and surrounding stream banks. The dry stream starts back in the corner of the
outdoor plaza and "flows" towards the existing sidewalk and ramp that leads to the "departure" entrance.
Polished river rock, boulders, and driftwood make up the stream bed in which the sow bear stands. Out of the
stream and on opposite stream banks, tall grass, native wildflowers, and some driftwood are arranged on the
banks.
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414
• • • • • • • • • • • • • • • • • • • • •
The Collaboration
Kenai has a rich history, thriving arts and culture scene, and deep
connection to the land and wildlife.
• Kenaitze Indian Tribe — Honoring the Dena'ina people, who have
lived in this region for thousands of years, and their deep
connection to the land and wildlife.
• Kenai Chamber of Commerce & Visitors Center — Showcasing the
rich history, natural beauty, and cultural heritage of the Kenai
Peninsula.
• Kenai Art Center — Supporting local artists and fostering
creativity, making art an integral part of the community.
• Kenai National Wildlife Refuge — Protecting diverse ecosystems
and providing opportunities for education, recreation, and wildlife
conservation.
• Kenai Municipal Airport — Serving as the gateway to the Kenai
Peninsula and providing a welcoming space for residents and
visitors.
'7FA(40'
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The Kenai Bronze Bear
Sculpture Working Group
Michael Bernard (past contributor)
Joel Isaak (current member)
Mary Bondurant
Matt Conner
Christine Cunningham
Henry Knackstedt
Kenaitze Indian Tribe
Kenai Airport Manager
(retired)
Kenai National Wildlife Refuge
City of Kenai
City of Kenai City Council
Marion Nelson Kenai Art Center
Samantha Springer Kenai Chamber of Commerce
and Visitor Center J
p\ BRoN
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PTVAE yAp
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ift"
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"Grandfather Ggagga, we are entering your forest.
We won't stay long and we won't take much.
We ask that you grant us safe passage while we
are here."
............ 0** 0 0* ...... 0** 0 0 0 0 0 0 0 0 0 0* 00
—Dena'ina Oral History
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Investing in Our Community
This project is made possible through community
investment. Our sponsors are leading the way in making the
Kenai Bronze Bear Family Sculpture a reality!
Special thanks to our Title Sponsors: Grant Aviation and
Three Bears Alaska and all who help bring this community
project to life. Join us!
GRANT
AVIATION
a1;111LI1/S:
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25%
71
For
rY
Thank you to
our sponsors! ON
GRANT
AVIATION
EAR
N�
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Lure
!,ss visit - ...
-
RICK AND
M BOBBIE
MARATHON BALDWIN
®
ALASKA
LYNDENo
CHANNEL
ENGINEERING
Consultantsuc
The Lynden Family of Companies
The Timeline
2019-2020 ;
Initial idea as part of Terminal Rehab Project
Fall 2023 :
City Council & Airport Commission Support
Fall 2023
Landscape design accommodates bears
Spring 2024
First Meeting of Working Group
Ongoing
Letters of Support
Fall 2024
Website (www.kenaibronze.com) live!
Ongoing
Corporate Sponsor Requests
Ongoing ;
Community Presentations
Ongoing
Community Events
Ongoing
Community Fundraising
Spring 2025
Grant Applications
Summer 2025
Contract with Bronze Artist
Summer 2025
Bronze Casting
Fall 2025
Installation
Fall 2025 ;
Unveiling!
.....................
The Casting Process
Sculpting the Original Model
Creating the Mold & Wax Replica
Preparing for Casting
Bronze Casting
Welding & Refining
Patination & Finishing
Installation & Unveiling
Thank You!
BRO�Z�
� F
O G
\tAr URE 440,/
www.kenaibronze.com
A community -led effort is bringing a life-
size bronze sculpture of a brown bear sow
and her two cubs to the entrance of the
Kenai Municipal Airport, creating an
unforgettable first impression for visitors
and residents.
This sculpture will depict a mother brown
bear with a freshly caught salmon while
one curious cub locks eyes with arriving
travelers and the other eagerly waits on
the bank serves as a powerful symbol of
Kenai's untamed beauty and a welcoming
landmark, inviting all who pass through to
connect with the land, the wildlife, and the
adventure that awaits.
ant to help?
We'd love youl
Project Cost
The three bronze bear sculptures cost
approi Gately $200,0M including
installation. The Kenai Bronze Bear
1 amily Sculpture Working Group Is
partnering to work toward funding the
project through:
Corporate sponsorships
Individual donations
omnunty events& 4undraisers
a Grant opportunities
All sponsorships and donations will be
recognized at the Kenai Municipa
Airport.
Com
i t tKenai
Air
H port Fall _2025!
Welcome Message
"Grandfather Ggagga, we are entering
your forest. We won't stay long and we
won't take much. We ask that you grant us
safe passage while we are here."
—Dena'ina Oral History
Sponsors
With gratitude to Title Sponsors Grant
Aviation and Three Bears Alaska —and all
who help bring this community project to
life. Join us!
C AND
BOBBIE
B.
immENoitgEERm 0a