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Home My WebLink About2010-07-08 Airport Commission PacketAGENDA ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY June 10, 2010 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS ITEM 6: NEW BUSINESS a. Discussion Proposed Change to Airport Reserve Boundary b. Discussion Proposed Sale of Airport Properties c. Discussion Five Year Airport Improvement Program ITEM 7: REPORT a. Commission Chair b. Airport Manager c. City Council Liaison ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFORMATION ITEMS a. Kenai City Council Meeting Action Agendas for June 2 and 16, 2010. b. June Airport Manager's Report ITEM 11: ADJOURNMENT KENAI AIRPORT COMMISSION JULY 8, 2010 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. PLEASE CONTACT U5 IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING: CAROL 283 -8231 OR MARY 283 -7951 ITEM 5: OLD BUSINESS KENAI AIRPORT COMMISSION JUNE 10, 2010 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY April 15, 2010 ITEM 4: PERSONS SCHEDULED TO BE HEARD a. Rick Koch, City Manager Proposed Changes to Apron Development South End a. Discussion 2011 Goals and Objectives b. Discussion Airport Bird Dog Update ITEM 6: NEW BUSINESS Item 3. a. Discussion Supplemental Environmental Assessment for Kenai Municipal Airport Improvement Projects ITEM 7: REPORT a. Commission Chair b. Airport Manager c. City Council Liaison ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFORMATION ITEMS a. Kenai City Council Meeting Action Agendas for May 19 and June 2, 2010. b. Airport Manager's Report April and May 2010 c. April 2010 Enplanement d. "Welcome Home Banner Clarion Dispatch Article e. Consent of Agreement Lot 1A, FBO Subdivision Dan O. Pitts f. March 2010 Report Airport Permanent Fund g. Mutual Rescission of Lease, ENA, LLC Lots 5 6, Block 1, FBO Subdivision h. Ordinance No. 2485 -2010 i. Lease Application Kenai Nikiski Pipe Line, LLC Letter from. City Manager Kenai AFSS, FAA Lease DTFAAL -08 -L -00001 ITEM 11: ADJOURNMENT KENAI AIRPORT COMMISSION JUNE 10, 2010 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING MEETING SUMMARY ITEM 1: CALL TO ORDER AND ROLL CALL Chair Knackstedt called the meeting to order at approximately p.m. Roll was confirmed as follows: Commissioners present: Commissioners absent: Staff /Council Liaison present: A quorum was present. ITEM 2: AGENDA APPROVAL MOTION: J. Zirul, J. Bielefeld, H. Knackstedt, L. Porter, G. Feeken, and R. Rogers E. Mayer Airport Manager M. Bondurant, Council Member J. Moore Commissioner Zirul MOVED to hear Item 5b prior to Persons Scheduled to be Heard and approve the agenda as amended. Commissioner Porter SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY April 15, 2010 MOTION: Commissioner Rogers MOVED to approve the meeting summary of April 15, 2010 and Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. ITEM 5 -b. Discussion Airport Bird Dog Update Item was moved to be heard prior to Persons Scheduled to be Heard. Olivia Pfeifer and Jane Brogan (Dog Whistle Goose Control) introduced the Airport Bird Control Dog, "Rose" to the Commission and demonstrated the dog's obedience commands. Commission thanked them for the presentation and wished them luck. ITEM 4: PERSONS SCHEDULED TO BE HEARD 4 -a. Rick Koch, City Manager Proposed Changes to Apron Development South End City Manager Koch reviewed a proposed change to the current Apron project, noting with very little investment by the City, high quality lease lots could be developed at the south end of the Apron; utilities were close by; and, the change had been forwarded to FAA for its review. ITEM 5: OLD BUSINESS 5 -a. Discussion 2011 Goals and Objectives The Commission reviewed the draft 2011 Goals Objectives which were included in the packet. MOTION: Commission Member Rogers MOVED to add "historic" after "terminal picture display of airport development" and approve the 2011 goals and objectives with the change. Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. 5 -b. Discussion Airport Bird Dog Update Heard prior to Persons Scheduled to be Heard. ITEM 6: NEW BUSINESS 6 -a. Discussion Supplemental Environmental Assessment for Kenai Municipal Airport Improvement Projects Airport Manager Bondurant updated the Commission on the environmental assessment, noting the comment period had been extended to June 4; two letters had been received; and, Aries would be drafting a response for City review and approval which would then be included in the final submission to FAA. ITEM 7: REPORT 7 -a. Commission Chair Thanked the Airport employees for their hard work on the Air Fair and added, he had enjoyed himself both the Soldotna and Kenai airports. 7 -b. Airport Manager Bondurant reported the following items: Tenth Air Fair was very successful and thanked the Commission members who volunteered with the event. There had been a lot of media coverage related to the Airport Bird Control dog. AIRPORT COMMISSION MEETING JUNE 10, 2010 PAGE 2 7 -c. City Council Liaison Council Member Moore reviewed the action agendas of the May 19 and June 2, 2010 Council meetings which were included in the packet. ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS Bielefeld Noted the EAA breakfast was very successful; 105 breakfasts were sold; there were 43 poker run participants; and, there was interest from an Anchorage EAA Chapter to participate in the 2011 Air Fair. Noted the construction project was trouble free and he appreciated the airport's efforts for safety. He had a great time at the Air Fair. ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD None. ITEM 10: INFORMATION ITEMS 10 -a. Kenai City Council Meeting Action Agendas for May 19 and June 2, 2010. 10 -b. Airport Manager's Report April and May 2010 10 -c. April 2010 Enplanement 10 -d. "Welcome Home Banner Clarion Dispatch Article 10 -e. Consent of Agreement Lot 1A, FBO Subdivision Dan O. Pitts 10 -f. March 2010 Report Airport Permanent Fund 10 -g. Mutual Rescission of Lease, ENA, LLC Lots 5 8v 6, Block 1, FBO Subdivision 10 -h. Ordinance No. 2485 -2010 10 -i. Lease Application Kenai Nikiski Pipe Line, LLC 10-j. Letter from City Manager Kenai AFSS, FAA Lease DTFAAL -08 -L -00001 ITEM 11: ADJOURNMENT MOTION: Commissioner Zirul MOVED to adjourn and Commissioner Porter SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at approximately 8:27 p.m. Meeting summary prepared and submitted by: Carol L. Freas, City Clerk AIRPORT COMMISSION MEETING JUNE 10, 2010 PAGE 3 KENAI, ALASKA MEMO: TO: Airport Commission FROM: Rick Koch, City Manager DATE: July 1, 2010 SUBJECT: Airport Reserve Boundary The purpose of this correspondence is to discuss a proposed change in the Airport Reserve Boundary as it relates to nine parcels identified on the attached map and located on the Kenai Spur Highway. There are five existing leases in the area identified which were issued for non aviation related activities. Any new leases within the Airport Reserve Boundary are required to be aviation related. Additionally, the marketability of the vacant properties currently available for lease is limited by the requirement that the use of the properties be aviation related. Attachment 1/ Vi la e with a Past, G ��'ern O 4 9 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 FAX: 907 283 -3014 tlllll 1992 Kenai S•ur Hi•hwav Pro•erties UNSUSDIV {DED J III GtlS I U Ip tld6itl' �e EY "e 1 m KENAI, ALASKA Ny MEMO: "Village with a Past, Gig TO: Airport Commission FROM: Rick Koch, City Manager DATE: July 1, 2010 SUBJECT: Potential Sale of Airport Properties 210 Fidaigo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 FAX: 907 283 -3014 The purpose of this correspondence is to discuss the following requests received by the City from leaseholders to purchase their leasehold properties. 1. Mr. Sidney Morris is the current lessee of Lot 1A, Block 1, Deshka Subdivision. The property is currently located on Frontage Road and Olgas Jewiery operates on the premises, as shown on the attached map. The lease was entered into in 1975 for a term of 55 years for the purpose of commercial uses. The lease does not grant the lessee the right to purchase, however, Mr. Morris stated that he was told by the previous Assistant to the City Manager that he would have the right to purchase his property "at any time." He does not recall when this conversation took place, but agreed that it was prior to the 2007 Code changes. The lease file does not contain any amendments or correspondence indicating the City granted Mr. Morris the right to purchase. 2. Ma Pa Alaskan Treasures, Inc. is the current lessee of Lot 2, Block 1, Gusty Subdivision. The property is currently located on the Kenai Spur Highway and Bargain Basement operates on the premises, as shown on the attached map. The lease was entered into in 1970 for a term of 55 years. The lessee submitted a request to purchase the property in February, 2009, however, since the property is located inside the Airport Reserve Boundary, the right to purchase had to be in the lease for the property to be sold. The City returned the application and deposit, informing the lessee that the property is not available for sale under the City's code. Both of the above lessees were told by former City personnel that they had the right to purchase their properties and both properties are Airport property, one located outside the Airport Reserve and one located in the area discussed in the July 1, 2010 memo to the Airport Commission regarding the Airport Reserve Boundary. The FAA Deed of Release allows for sale or long term lease of the property for non airport use. re =MON MINIIMI 0 o Municipal Airport Memo attachment "Serviced- t31e'@eaterKencti. Peninsular 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907. 2833737 To: Airport Commission From: Mary Bondurant Airport Manag Date: July 1, 2010 Subject: Revised Airport Improvement Program Attached for your review and recommendation is a revised Airport Improvement Program for the Kenai Airport. The program has been revised based on the work session discussions of May 14, 2010. Does Commission recommend the revised Airport Improvement Program for the Kenai Airport? www.KenaiAirport.com Year Project Assumed Entitlement Funds Project Funds Required (est) FAA Entitlement Funds Utilized Assumed Discretionary Funds State 2.556 Contribution Airport2.5% Contribution Entitlement Balance Additional City Provided Utilities 2010 Master Plan Document 51,100,000 $483,726 $459,540 50 512,093 512,093 $640,460 2010 Phase 1- FEB FA EA ohs, Design, &Ohs Clearing Design $238,747 $226,810 50 55,968 $5,969 5413,650 2010 Rw It -FA& obstruction &eating $150,000 $142,500 50 53,750 $3,750 5271,150 2011 2010 Totals 58 loader, Grader, Broom 51,100,000 5872,473 51,065,000 5828,850 50 $1,01.1,750 521,811 526,625 521,812 $26,625 51,371,150 2011 Aeronautical Survey AGI5 Base Map $257,440 50 5244,568 $6,436 56,436 2011 USDA Hazardous Wildlife Assessment $115,000 50 51.09,250 52,875 $2,875 2011 Dev Phl Foe 49, S& 1(6 l 4th Ave. Reafgn& Lease lots $2,537,097 $2,410,242 $0 563,427 563,428 5478,131 $65,000 2011 Totals 51,100,000 53,974,537 5139,438 52,410 242 $132,466 51 365,568 50 599,363 $3,466 599,364 53,486 2012 Design Ph I1 FPB Tw 5 V (Unctld) 51,445,665 2012 Dev Ph II- FPB Service Rd 2 Revetments 51,233,065 $967,534 $203,877 $30,827 $30,827 5478,131 2013 2012 Totals Dev -Ph 11 FPB Tw 5 V (Unctld) $1100,000 $1,372,503 52,533,119 51,100,000 $1,100,000 5203,877 $1,306,463 534,313 $63,328 $34,313 $63,328 5146,000 2013 2013 Design GA Parking Tw A.G.H. Rehab EA Design NE Apron Willow St. 1 200 5 5157,000 $0 5149,150 53,925 $3,925 $8,125 5325,000 $0 $308,750 58,125 20 Totals i 53,015,119 51,500000 54,764,363 575;37 $35;378 2014 Dev 700' NE Apron &W Ilow SG 51,100,000 52,740,000 $2,603,000 $0 568,500 568,500 2014 Dev GA Parking& Tw 4,6,8 Rehab 52,685,000 50 52,550,750 $67,125 567,125 2014 Design Terminal Rehab 5609,201 5578,741 50 515,230 515,230 2015 2014 Totals_ Ph 1 Dev Terminal Rehab 51,100,000 56,034,201 51,949,445 53,181,741 51,851,973 52,550,750 $0 5150,855 $48,736 150,855 548,736 2015 Totals 51,949,445 51,851,973 50 548,736 548;736 Dev Ph Il Terminal 2016 Rehab 54,924,214 4,678,003 $U $123,105 $123,108 2016 Totals 54,924,214 t 54,678,003 50 5123,105 5123,106 AIP Program Revised 7 -1 -10 ITEM A: CALL TO ORDER ACTION AGENDA KENAI CITY COUNCIL REGULAR MEETING JUNE 2, 2010 7 :00 P.M. KENAI CITY COUNCIL CHAMBERS http:/ /www.ci.kenai.ak.us DEVY\ Boa 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to 3 minutes per speaker. Persons may give their time over to another speaker present, however no single speaker present may speak for more than 30 minutes combined on their own and on others' behalf) *All items listed with an asterisk are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (Public comments limited to 10 minutes per speaker) ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment Limited to 3 minutes per speaker) ITEM D: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker. Persons may give their time over to another speaker present, however no single speaker present may speak for more than 30 minutes combined on their own and on others' behalf.) AMENDED AND PASSED. Ordinance No. 2484 2010 Adopting the Annual Budget for the Fiscal Year Commencing July 1, 2010 and Ending June 30, 2011. 2. AMENDED AND PASSED UNANIMOUSLY. Ordinance No. 2485 -2010 Increasing Estimated Revenues and Appropriations by $591,268 in the Airport Land Sales Petiitanent Fund and Both Increasing and Decreasing Estimated Revenues in the Airport Fund for Funds Received from the Airport Land Sales Permanent Fund. 3. PASSED UNANIMOUSLY. Ordinance No. 2486 -2010 Increasing Estimated Revenues and Appropriations by $8,552.95 in the General Fund for State Bureau of Highway Patrol Overtime Expenditures. 4. PASSED UNANIMOUSLY. Ordinance No. 2487 -2010 Increasing Estimated Revenues and Appropriations by $8,569.75 in the General Fund for State Traffic Grant Overtime Expenditures. 5. PASSED UNANIMOUSLY. Ordinance No. 2488 -2010 Amending KMC Chapter 6.05, Voting Qualifications and Procedures, to Change the Time for the Meeting of the Canvassing Board, to Amend the Process for Absentee Voting by Directing the Use of Pre -Paid Postage Return Envelopes and Reducing the Number of Witnesses Required, to Expand Certain Records Retention Requirements, and to Make Conforming Amendments. 6. PASSED UNANIMOUSLY. Resolution No. 2010 -31 Requesting the Kenai Peninsula Borough to Allocate S2,000,000 of its Volume Cap of Recovery Zone Facility Bonds to the City of Kenai for the Issuance of Revenue Bonds to Fund the Construction of a Commercial Building in the City. 7. PASSED UNANIMOUSLY. Resolution No. 2010 -32 Awarding a Contract to Harbor Enterprises, Inc., d /b /a Alaska Oil Sales, for Furnishing and Dispensing of Diesel and Unleaded Fuel. ITEM E: MINUTES 1. AMENDED AND APPROVED. *Regular Meeting of May 19, 2010. 2. APPROVED. *May 24, 2010 Budget Work Session Notes. ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. APPROVED. Ratification of Bills 2. APPROVED. Approval of Purchase Orders Exceeding $15,000 3. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2489 -2010 Local Amendments to the 2006 Uniform Plumbing Code, to Delete the Local Requirement That Underground Water Service Pipe Less Than Two Inches in Diameter Must be in Copper. 4. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2490 -2010 Increasing Estimated Revenues and Appropriations by $4,255 in the Airport Fund for a Donation Received From the Kenai Watershed Forum for the City's Summer Bird Hazing Program at the Kenai Airport. 5. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2491 -2010 Increasing Estimated Revenues and Appropriations by $1,500,000 in the Library Improvements Capital Project Fund. 6. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2492 -2010 Reducing Estimated Revenues and Appropriations by $1,500,000 in the General Fund and Library Improvements Capital Project Fund. 7. INTRODUCED/REGULAR AGENDA. Ordinance No. 2493 -2010 Amending KMC 13.40.040 to Provide for a Speed Limit of Fifteen (15) Miles Per Hour While Driving Motorized Vehicles on a Portion of the North Shore Public Beach Within the City of Kenai and Making Technical Corrections. 8. P. BRYSONRECOMMENDED UNANIMOUSLY. Action Item Appointment to Kenai Peninsula Borough Planning Commission. 9. NO ACTION TAKEN. Action Item Schedule Work Session /Town Hall Meeting Collaborative Leadership Training Review. ITEM H: COMMISSION /COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks Recreation Commission 6. Planning Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Mini -Grant Steering Committee d. Kenai Convention Visitors Bureau e. Reports of KPB Assembly, Legislators and Councils ITEM I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM K: DISCUSSION 1. Citizens (Public comment limited to 5 minutes per speaker) 2. Council MOVED TO 6/7/2010 SPECIAL MEETING. EXECUTIVE SESSION Annual Evaluations of City Manager and City Clerk ITEM L: PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) Resolution No. 2009 -68 Supporting Actions Building and Maintaining a Sustainable community Within the City of Kenai, and Supporting Networking with Local Governments on the Kenai Peninsula. (Clerk's Note: At its May 19, 2010 meeting, Resolution No. 2009 -68 was substituted and then postponed to July 7, 2010 for consideration and an additional public hearing.) Resolution No. 2010 -23 Opposing "An Initiative Creating an Alaska Anti Corruption Act" Which Will be on the 2010 Alaska Primary Election Ballot. (Clerk's Note: At its April 7, 2010 meeting, Council postponed Resolution No. 2010 -23 to its July 7, 2010 meeting. The motion to adopt is active.) ITEM M: ADJOURNMENT ITEM A: CALL TO ORDER ACTION AGENDA KENAI CITY COUNCIL REGULAR MEETING JUNE 16, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: /www.ci.kenai.ak.us 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to three (3) minutes per speaker. Persons may give their time over to another speaker present, however no single speaker present may speak for more than 30 minutes combined on their own and on others' behalf.) *All items listed with an asterisk are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (Public comments limited to ten (10) minutes per speaker) Janice Chumley, Invasive Plant Coordinator Alaska Invasive Weed Awareness Week and the City of Kenai Opportunity for Invasive Plant Controls. 2. Olivia Pfeiffer Bird Hazing Program Update. ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker) ITEM D: PUBLIC HEARINGS (Testimony limited to three (3) minutes per speaker. Persons may give their time over to another speaker present, however no single speaker present may speak for more than 30 minutes combined on their own and on others' behalf.) 1. PASSED UNANIMOUSLY. Ordinance No. 2489 -2010 Local Amendments to the 2006 Uniform Plumbing Code, to Delete the Local Requirement That Underground Water Service Pipe Less Than Two Inches in Diameter Must be in Copper. 2. PASSED UNANIMOUSLY. Ordinance No. 2490 -2010 Increasing Estimated Revenues and Appropriations by S4,255 in the Airport Fund for a Donation Received From the Kenai Watershed Forum for the City's Summer Bird Hazing Program at the Kenai Airport. 3. AMENDED AND PASSED UNANIMOUSLY. Ordinance No. 2491 -2010 Increasing Estimated Revenues and Appropriations by $1,500,000 in the Library Improvements Capital Project Fund. 4. AMENDED AND ASSED UNANIMOUSLY. Ordinance No. 2492 -2010 Reducing Estimated Revenues and Appropriations by 1,500,000 in the General Fund and Library Improvements Capital Project Fund. 5. PASSED UNANIMOUSLY. Resolution No. 2010 -34- Adopting the City of Kenai Updated Annex to the Kenai Peninsula Borough All- Hazard Mitigation Plan as an Official Plan. 6. PASSED UNANIMOUSLY. Resolution No. 2010 -35 Awarding a Contract to Kachemak Electric Co., Inc. for the Project Entitled Kenai Multipurpose Facility Lighting Upgrade -2010 for the Total Amount of $58,587.00. 7. PASSED UNANIMOUSLY. Resolution No. 2010 -36 Authorizing Sharing Cost Savings From the Calendar Year 2009 Health Insurance Plan with Employees. 8. PASSED UNANIMOUSLY. Resolution No. 2010 -37 Authorizing the City of Kenai to Issue Revenue Bonds, 2010 (Double Glacier Builders, LLC Project) in the Principal Amount of Not to Exceed 51,700,000; the Execution and Delivery of a Loan Agreement to Secure the Bonds; Fixing Certain Details of Such Bonds and Authorizing Their Sale. 9. PASSED UNANIMOUSLY. Resolution No. 2010 -38 Rejecting All Bids for the Project Entitled, "Elevated Light Penetrating Walkway Ramps Kenai Dunes 2010." 10. PASSED UNANIMOUSLY. Resolution No. 2010 -39 Awarding a Contract to Harbor Enterprises, Inc., d /b /a Alaska Oil Sales, for Furnishing and Delivering of Diesel Fuel. ITEM E: MINUTES 1. *Regular Meeting of June 2, 2010. 2. *Special Meeting of June 7, 2010. ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. APPROVED. Ratification of Bills 2. SUBSTITUTE APPROVED. Approval of Purchase Orders Exceeding $15,000 3. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2494 -2010 Amending the Kenai Municipal Code, Chapter 23.55 Entitled "Personnel," Including 23.55.030 Entitled "Qualification Pay 23.50.010 Entitled, "Employee Classification and, 23.55 Fiscal Year 2010 Operating Budget Salary Schedule. 4. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2495 -2010 Increasing Estimated Revenues and Appropriations by $50,000 in the Water, Sewer and Streets Capital Project Fund for Public Road, Water, and Sewer Improvements. 5. APPROVED. Action Item Amendments to Kenai City Council Policy for Commission, Committee, Board and Council on Aging Meetings and Work Sessions. 6. ORDINANCE AMENDMENT REQUESTED. Discussion Amendments to Kenai Municipal Code 1.10.060 Entitled, "Calling Special Meetings." 7. NO OBJECTION TO AMENDMENT. Discussion City of Kenai 401(A) Plan /Amendment ITEM H: COMMISSION /COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks Recreation Commission 6. Planning Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Mini -Grant Steering Committee d. Kenai Convention Visitors Bureau e. Reports of KPB Assembly, Legislators and Councils ITEM I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM K: ADDITIONAL PUBLIC COMMENT (Public comment limited to 5 minutes per speaker) 1. Citizen Comments 2. Council Comments EXECUTIVE SESSION None scheduled. ITEM L: PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) Resolution No. 2009 -68 Supporting Actions Building and Maintaining a Sustainable community Within the City of Kenai, and Supporting Networking with Local Governments on the Kenai Peninsula. (Clerk's Note: At the May 19, 2010 meeting, Resolution No. 2009 -68 was substituted and then postponed to July 7, 2010 for consideration and an additional public hearing.) Resolution No. 2010 -23 Opposing "An Initiative Creating an Alaska Anti Corruption Act" Which Will be on the 2010 Alaska Primary Election Ballot. (Clerk's Note: At its April 7, 2010 meeting, Council postponed Resolution No. 2010 -23 to its July 7, 2010 meeting. The motion to adopt is active.) Ordinance No. 2493 -2010 Amending KMC 13.40.040 to Provide for a Speed Limit of Fifteen (15) Miles Per Hour While Driving Motorized Vehicles on a Portion of the North Shore Public Beach Within the City of Kenai and Making Technical Corrections. (At its June 2, 2010 meeting, Council introduced Ordinance No. 2493 -2010 and subsequently postponed the public hearing to the first meeting in August, 2010 (August 4, 2010).) ITEM M: ADJOURNMENT enai Municipal Airport Airport Projects: Airport Manager's Report For June 2010 Taxiway F, G, H Lighting, Grading, Drainage Improvement: Project is complete and closeout documents are being prepared. Apron Rehabilitation: Coordination meetings were held from March to May with the contractor, City, ATCT, and based operators. Work began the week of May 18. KMA Proposed Float Plane Basin Facility Improvement Project: The comment period for the draft Supplemental Environmental Assessment was extended from May 21, to June 4, 2010. Comments may also be received at the June 16, Airport Commission meeting to be held at 7pm in City Council chambers. Responses will be drafted to all parties who submitted comments. Comments and the responses will be included in the final document for review and approval by the FAA. 10th Annual KPAF: With nice weather all around the peninsula, 43 participants had a great time participating in the 10th poker run. Heidi Reuss of Anchorage held the winning hand and went home with an outdoor barbeque donated by Horne Depot. Thank you to Alaska Roadbuilders, Kens Alaskan Tackle, Frames Things, Leadens Excavating, Peninsula Aero Technology, Alaska Aviation Heritage Museum, Challenger Learning Center, Kenai Aviation, Era Alaska, and Grant Aviation for the poker run prizes. Thank you to financial sponsors Crowley Fuel, GCI, Beacon Occupational Health Safety, Alaska Airmen's Association, and Aero Alaska. Thank you to master chefs Steve Horn, Mike Tarr, Rick Koch, and Duane Bannock. Also many thanks to Carol Bannock, Glenda. Feeken, Jack I ashot, Joe Moore, Carol Freas, and Jim Zirul. A special thank you to Mayor Porter and Govemor Parnell for sharing in the military appreciation event. Over 300 people enjoyed the barbeque along with great music provided by the Dixie Express from the USAF Band of the Pacific. This event would not be possible without the many individuals who give their time and support. Caring for the Kenai Airport Bird Dog: "Rose" arrived at the Kenai Airport on Monday, June 7th accompanied by owner, Jane Brogan, of Dog Whistle Goose Control. Training will be held with Olivia. and Matt Landry (airport staff) for four days beginning Tuesday, June 8'h. Rose will be on staff for approximately three months. Fish Haul Permits: Salamatof Seafood and Universal Air have been issued fish haul permits for this summer. 2010 -06 Item 14 -k tleuy KENAI, ALASKA MEMO: Vi llaye with a Past, Ct 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 FAX: 907 283 -3014 TO: Rick Koch, City Manager FROM: Christine Cunningham, Assistant to City Manager DATE: March 29, 2010 SUBJECT: Lot 2, Block 1, Gusty Subdivision Ma Pa Alaskan Treasures, Inc. Lease with a Future ties '1111' The purpose of this correspondence is to provide the requested timeline and comprehensive background in regard to the terminated land sale application made by the Lessee for the above referenced property, specifically with regard to Code changes affecting the Lessee's ability to purchase. 12/01/1963 Quitclaim Deed from FAA to the City of Kenai for certain properties of which the subject property is included. 06/27/1966 Ordinance No. 99 creates the "Airport Land System" and addresses the lease and sale of lands of such Airport Land System. The rights of lessees and /or rules and regulations governing the administration of City -owned lands are not addressed. 03/18/1970 Resolution 70 -5 dedicates the proceeds from sale or lease of [described] lands for Kenai Airport purposes. The subject property is included within the property description in the resolution. 08/20/1970 Deed of Release from FAA releases the property from the conditions, reservations and restrictions contained in the Quitclaim Deed with the following covenants: "(1) to use the revenues received from the sale or lease exclusively for the development, improvement, operation of the Kenai Airport; (2) to restrict the height of structures, objects of natural growth and other obstacles on the hereinafter described real property to a height of not more than 242 feet above mean sea level; (3) to prevent any use of the real property ...which would interfere with the landing or taking off of 1992 08/20/1970 06/06/1971 Property described as West 1/2 of Lot 2 Block 1 assigned to Ray Cason under the terms of the Lease 04/02/1975 11/06/1976 09/22/1977 01/24/1978 07/07/1978 aircraft at the Kenai Municipal Airport or otherwise constitute an airport hazard." The City enters into a lease with James Adkins and Edward Ferguson for the referenced property and two additional lots which are assigned separately at a later date. The term of the lease is for 55 years, commencing 08/20/1970 and expiring 06/30/2025. The lease does not grant the Lessee the right to purchase. Ordinance No. 258 -75 defines the rules and regulations governing the administration of City -owned Lands. Section 5 states "the filing of an application for a lease shall give the applicant no right to a lease or to the use of the land applied for." Section 9 states "The term of any given lease shall depend upon the durability of the proposed use, the amount of the investment in improvement proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment." Section 38 states "All leases or sales of property shall be made subject to restrictions and reservations in the patent, deed or other instrument under which the City holds." Ordinance No. 312 -76 establishes procedures for the sale of City -owned lands, adding Chapter 20, Lands, a new Article IV, which reads in part as follows: Section 1: Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands are no longer required for municipal purposes." Section 3: "...Public sale shall be by auction or competitive bid." Section 4: "The parcels of land to be sold shall be reviewed by the Planning Commission which shall make recommendations concerning desirable uses of the property, including projected need, if any, of the land for present or future recreational or other public use." Section 5: "Notice of sale shall be published in a newspaper of general circulation within the City once each week for two successive weeks not less than thirty days prior to the date of sale." Property described as East ''A of Lot 2 Block 1 assigned to Ray Cason under the terms of the Lease. Assignment for Security Purposes to Alaska Statebank for West '1/2 of Lot 2 Ordinance 400 -78 establishes policies and procedures relative to the lease of City Airport Lands. 07/27/1978 09/02/1978 09/21/1978 11/04/1978 02/17/1979 08/13/1980 01/02/1982 Section 1: Ordinance 258 -75 repealed in its entirety and chapters 5 and 10 reenacted into the City -owned Lands title of the Kenai Code. Chapter 5, 21.05.040 states, "The filing of an application for a lease shall give the applicant no right to a lease or to the use of the land applied for." Chapter 10, 21.10.260 states, "All leases or sales or property shall be made subject to restrictions and reservations in the patent, deed or other instrument under which the City holds." Assignment for Security purposes to Alaska Statebank for West 1 /2 of Lot 2 Ordinance 424 -78 amends Ordinance 400 -78 to include provisions regarding termination required to be included in all Airport Land Leases Ordinance 435 -78 amends Ordinance 400 -78 to include an amendment to the five -year redetermination, and a section regarding Rights Prior to Leasing to read, in part, as follows: "The filing of an application for a lease shall give the applicant no right to lease or to the use of the land applied for..." Ordinance 434 -78 amends Ordinance 400 -78, section regarding five year redetermination Ordinance 456 -78 amends Ordinance 312 -76 to provide for written notice to former owners of particular parcels retained for public purpose and adding a new section 9 to Ordinance 312 -76 pertaining to City -owned property deeded to the City by virtue of tax foreclosure. Deed of Trust to State of Alaska, Division of Loans and First National Bank of Anchorage for Lot 2, Block 1. 02/07/1981 Ordinance No. 612 -80 repeals KMC 22.05.060 and amends KMC 21, KMC 22.5 and KMC 7.3 to provide for the sale of City Lands (not devoted to airport uses). The re- enacted section 3 (a) reads, "All lands, except tax foreclosed lands, to which the City of Kenai holds title which are not restricted from sale by the Deed of Conveyance to the City or which have been released from such restrictions, which the City Council has determined are not required for a public purpose shall be listed for sale by the City Manager, except that lands which have been leased and have substantial improvements constructed thereon shall not be sold unless the Lessee has made a written request to the City to place the land for sale." 11/07/1981 Ordinance No. 711 -81 allows sale of leased lands to lessees under a contract sale to expedite and facilitate the sale of City lands to a lessee, however, it does not give existing lessees a specific right to purchase or preference right. Ordinance No. 684 -81 limits application of 21.10.130 (b), KMC 21.10.130(c) and KMC 21.10.130(d) to leases of land on the airport and restricted to aeronautical related uses. This ordinance relates to the 50% cap and acknowledges the City's obligation to provide the Airport Fund with sums which the 50% cap causes the Airport Fund to lose. 10/17/1983 02/04/1984 04/21/1984 06/16/1984 12/21/1984 02/04/1988 06/13/1988 06/14/1990 01/01/1993 Notice of Default and Sale, noticing that Ray Cason has breached the obligation secured by the Deed of Trust for property described as Lot 2, Block 1 due to failure to pay according to the terms of said obligation. Ordinance No. 910 -83 amends Title 22 by changing procedures relative to the sale of City Lands. Previously, KMC 22.05.030(a) (Ordinance 612 -80) specified that only the lessee of land with substantial improvements constructed thereon may initiate the sale of said land. Ord. No. 910 -83 states, "Administration believes that this protection should be provided to all lessees." A Memo dated 12/12/1983 from the Finance Director, Charles Brown, states, "[KMC 22.05.040(c)] says that in order to negotiate a sale of land, the land must be not leased land upon which substantial improvements have been made.' Everybody in the City Administration who was here at the time this section was written remembers the City Council instructing the City Attorney to make it possible for a lessee with a building on his lot to buy the land by negotiated sale. The Ordinance that was adopted really did the opposite." Ordinance No. 910 -83 repealed and re enacted this section. Ordinance No. 917 -84 amends KMC 21.10.060 and 040 to give preference to purchase application over lease applications under specified conditions, as follows, "If an application for the purchase of City -owned lands, previously authorized for sale by the Council, is received by the City prior to the P &Z Commission making an affirmative or negative recommendation to the Council regarding the lease application for the same property, said property shall be offered for sale in accordance with the provisions of the Code." Ordinance No. 932 -84 amends KMC 21.10.060 and adds a new section, KMC 21.10.140 relating to the effective period for a lease application, reducing it from 6 months to 45 days of approval and requiring the execution of the lease agreement within 14 days of mailing. Ordinance No. 994 -84 revises KMC 22.05, to establish requirements governing the sale closing procedures of City lands. Notice of Default, Deed of Trust Foreclosure provides notice of public auction to be held 05/10/1988 Deed of Trust between Thomas Wagoner and Dorothy Wagoner for described leasehold interest. Amendment to Lease references assignment to Thomas H. Wagoner and Dorothy C. Wagoner for referenced property and reflects lease rate renegotiation. Ordinance No. 1575 -93 clarifies the Lessees' right to negotiate the sale of their leased land, at not less than the fair market value, after making substantial developments. The Ordinance states, in part, "It is the desire of the Kenai City Council that leased land may be sold to a lessee for fair market value only after, to the satisfaction of the City Manager, development has been completed as detailed in the development schedule which has been incorporated into the lease agreement.KMC 22,05,040(c) was amended to read as follows: 01/28/1994 10/20/2000 01/18/2006 09/16/2006 05/04/2007 12/03/2008 02/23/2009 "If the tract of land (airport or otherwise) proposed to be sold is leased land [WHERE THE LEASE SETS FORTH A DEVELOPMENT SCHEDULE], the lessee may, at his request, negotiate the sale of said land at not less than the fair market value. The current lessee obtains this right to negotiate a sale only after, [HE HAS LEASED THE LAND FOR THE TWO -YEAR PERIOD IMMEDIATELY PRECEDING THE SALE OR THE LESSEE HAS] to the satisfaction of the City Manager, [COMPLETED] development has been completed as detailed in the development schedule which has been incorporated into the lease agreement [(THIS CONDITION APPLIES TO AIRPORT LANDS LEASED AFTER JUNE 1, 1986)]. If there is no development schedule the lessee may purchase the property if there has been substantial improvements as determined by the City Manager." Security Assignment of Lease to First National Bank of Anchorage for Lot 2, Block 1 Ordinance No. 1878 -2000 amends various parts of title 21 and Title 22 for the purpose of updating. Assignment of Lease to Ma Pa Alaskan Treasures, Inc. from Thomas Wagoner. Ordinance No. 2180 -2006 repeals existing land policies and provisions as a result of the City's undertaking of a Supplemental Airport Master Plan process in which a comprehensive review of City policies regarding the use, lease and sale of airport lands was completed. Numerous public hearings were held during the process, including City Council, Airport Commission, Planning and Zoning and the Kenai Economic Development Strategies group to increase public comment and participation. The Ordinance states, in part, "it is in the best interest of the City to create an Airport Reserve and modernize the leasing provisions regarding Airport Reserve land to prohibit land sales within the reserve." Ordinance No. 2219 -2007 amends KMC 21.15.190 by adding a new section allowing a lease applicant to request a contractual right to purchase the leased property at not less than fair market value within twelve months after completion of the developments as detailed in the Lease's development schedule. Email from Kim Howard, Assistant to the City Manager, to Rick Koch, City Manager and Cary Graves, City Attorney, indicating lessee would like to pursue purchasing leased lot. The email reads that lessee was told to "put his intention in writing along with $2,000 good faith deposit...I told the lessee that the sale would be based on fair market value from a new appraisal from the deposit." Land Sale Checklist has following notation for "Ordinance stating property is not required for public purpose: N/A Code prior to 2006 Amendment allowing sale applies" 02/23/2009 Letter from Ma Pa Alaskan Treasures, Inc. reads, "After our conversation with Kim at City of Kenai, we would like to put in our request to purchase..." The request to purchase includes an enclosed $2,000 check for appraisal on the property. 03/20/2009 City orders appraisal in the amount of $850 from Derry Associates 08/13/2009 Meeting with Mary Bondurant, Airport Manager; Marilyn Kebschull, City Planner; Christine Cunningham, Assistant to City Manager; Cary Graves, City Attorney and Rick Koch, City Manager. A determination was made that, for a lessee to purchase property within the Airport Reserve, the right to purchase had to be contained in the lease. That the lease was entered into prior to the 2006 code change, did not allow for the property to be sold. The City Attorney suggested writing a letter and City Manager authorized refunding the $2,000 good faith deposit. 08/14/2009 Memo from Christine Cunningham, Assistant to City Manager to City Manager, Airport Manager and City Attorney providing background information and states, in part, "Ordinance 2180 -2006 prohibits land sales within the Airport Reserve, although not intending to alter or amend existing leases during their original terms. Although the Lease... was entered into prior to the 2006 Code Revision, the lease does not grant the lessee the right to purchase." 08/20/2009 Letter to Ma Pa Alaskan Treasures, Inc. informing Lessee that property is not available for sale under the City's code and enclosing a check in the amount of $2,000, representing the full amount of the deposit received toward purchase. 10/09/2009 Facsimile Transmittal Letter from Reeves Amodio, LLC. written on behalf of the Lessee reiterating their request to purchase the lot they lease from the City and notifying the City of legal principles that demonstrate that the assertion the land is not available for sale is incorrect. The letter states, in part, "[Ms.] Howard informed the Lovealls that, if they bought Senator Wagoner's interest, they could purchase the lot any time prior to the expiration for the lease in 2025. In reliance on this representation from the City, the Lovealls consummated the deal." The letter also states, "...the lease itself states that the City must give the Lovealls 10 days advance notice of any changes to the rules or regulations governing the property," and asserts, "Since the City did not provide the Lovealls with the required notice, the amendment to the Code in September 2006 is not applicable to the Lovealls." The letter states that the "doctrines of estoppels and quasi estoppel operate to bar the City from refusing the Lovealls request to purchase the property," and further, that, "the City likely waived its right to object to the purchase after it accepted and cashed the Lovealls good faith deposit." 10/12/2009 Memo from Assistant to City Manager to City Manager and City Attorney providing requested background information regarding the terminated land sale application. Memo included the original lease and correspondence regarding the land sale as attachments. 12/12/2009 Letter from Krista Stearns, City Attorney to Tom Amodio in response to 10/09/09 letter states, in part, "The City is not persuaded that it has any legal or other obligation to sell the [property] to Ma Pa Treasures. Neither the lease, nor any course of dealing between the City and Ma Pa Treasures creates any obligation of the City to sell land that, by ordinance, it is prohibited from selling." The letter provides a detailed analysis of the City's position, and states, "[The] lease does not provide any right of a lessee to purchase the leased premises," and states, "the City also disagrees with the analysis regarding estoppels, quai- estoppel, lack of notice, and waiver." It later states, "An unsolicited application to purchase property gives the would -be purchaser no particular rights..." and addresses the allegedly inconsistent positions taken by the City, "include a statement by an employee that Ma Pa Treasures could submit an application to purchase City -owned property and next, the denial of that application based upon City Laws. Neither act is inconsistent with the other." The letter also addresses the argument that Ma Pa Treasures did not have notice of the ordinances, stating, "...the 10 -day notice requirement in sub paragraph 27(a) of the lease does not apply to changes in Ordinances... The lease distinguishes between adoption of 'rules and regulations' and laws, ordinances, or orders of any governmental authority.'" After reviewing the above referenced documents, it appears that the initial acceptance of the Lessee's Application package was based on an interpretation of the City's code to allow for the sale of property if the lease was executed prior to the 2006 Code change. Since the lease does not grant the lessee the specific right to purchase, and the Code did not address land sales at the time the lease was entered into (1970), neither the lease nor the Code granted the lessee any right to purchase. The code defining the rules and regulations for the administration of City -owned lands was adopted in 1975, and does not specifically address land sales. However, as the City developed its land leasing program, procedures were established for the sale of City -owned lands, and in the 1980's several Ordinances addressed the issue of "substantial improvements" on City lands, and addressed the rights of the lessee to initiate sale. In a 1983 Memo from Finance Director, Charles Brown, he states that, "Everybody in the City Administration who was here at the time this section was written remembers the City Council instructing the City Attorney to make it possible for a lessee with a building on his lot to buy the land by negotiated sale." Although the Ordinance accompanying this memo does not have as strong of language regarding the rights of the lessee, it does indicate the intent of the Ordinance. Lessees were able to purchase their leasehold property at the time the lease was assigned to Thomas Wagoner in February 1988. When the lease was subsequently assigned to Ma Pa Alaska Charters in January 2006, the substantial Code changes made that same year were not yet in effect, however the Supplemental Planning Assessment, of which the Code changes were a result, had been in the public process since April, 2004. cc: Krista Stearns, City Attorney