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HomeMy WebLinkAbout2010-12-09 Airport Commission PacketAGENDA I TEM 1: CALL TO ORDER AND ROLL CALL /ITEM 2: AGENDA APPROVAL /ITEM 3: APPROVAL OF MEETING SUMMARY October 14, 2010 c ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion /Recommendation Float Plane Basin Development Alternatives ITEM 6: NEW BUSINESS a. Discussion FY12 Airport Budget b. Discussion /Recommendation Terminal Side Ramp "Welcome Sign" ITEM 7• REPORT a. Commission Chair b. Airport Manager c. City Council Liaison KENAI AIRPORT COMMISSION DECEMBER 9, 2010 KENAI CITY COUNCIL CHAMBERS 7 :00 P.M. ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION a. January 13, 2011 ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM 11: INFORMATION ITEMS a. Kenai City Council Meeting Action Agendas for November 3, 23 and December 1, 2010. b. Kenai Nikiski Pipeline, LLC (KNPL) Lease Application (Portion of Tract A, Plat No. 78 -111. c. 11/12/2010 M. Bondurant memorandum of appreciation/Randy Parrish, Shop Foreman. d. Snow Plowing /Sanding Services Contract /Airport Terminal Building, Kenai Flight Service Station and Alaska Fire Training Facility. e. Kathy Chircop, Realtor, d /b /a Reflections Realty Group of Kenai /Assignment and Assumption of Lease Agreement. f. 11/3/2010 Alaskan Region Airport Certification Bulletin g. 10/2010 and 11/2010 Airport Manager Reports 11/30/2010 Memorandum regarding Kenai Municipal Airport Supplemental Planning Assessment Status of Implementation. ITEM 12: ADJOURNMENT PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING: CAROL 283 -8231 OR MARY 283 -7951 AGENDA ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY Augu st 12, 2010 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion Float Plane Basin Lease Lot Alternatives Wince Corthell- Bryson ITEM 6: NEW BUSINESS a. Discussion Commission Duties and the Relationship Between Commissions, Administration and Council b. Discussion Scheduling 11 th Kenai Peninsula Air Fair c. Discussion /Request Cancel or Reschedule November Meeting Date ITEM 7: REPORT a. Commission Chair b. Airport Manager c. City Council Liaison KENAI AIRPORT COMMISSION OCTOBER 14, 2010 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION a. November 11, 2010 (Veterans Day) ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM 11: INFORMATION ITEMS a. Kenai City Council Meeting Action Agendas for September 15 and October 6, 2010. b. Airport Bulletin 03 -2010 Open and Unattended Gates c. Airport Bulletin 04 -2010 Airport Winter Snow Removal Operation d. Float Plane Basin Activity 2006 2010 e. September 2010 Enplanement f. Airport Manager's Report September 2010, October 2010 g• Airport Improvement Program FY1982 FY2010 ITEM 12: ADJOURNMENT Chair Knackstedt called the me confirmed as follows: Commissioners present: Commissioners absent: Staff/ Council Liaison present: A quorum was present. ITEM 2: MOTION: ITEM 3: MOTION: ITEM 4: ITEM 5: 5 -a. KENAI AIRPORT COMMISSION OCTOBER 14, 2010 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING ITEM 1: CALL TO ORDER AND ROLL CALL AGENDA APPROVAL MEETING SUMMARY ting to order at approximately 7:00 p.m. Roll was J. Zirul, J. Bielefeld, H. Knackstedt, E. Mayer, G. Feeken, R. Rogers L. Porter Airport Manager M. Bondurant, Council Member J. Moore Commissioner Knackstedt noted Casey Madden had not arrived and recommended moving Item 5 to after Item 6. Commissioner Knackstedt MOVED to approve the agenda with the above noted change and Commissioner Mayer SECONDED the motion. There were no objections. SO ORDERED APPROVAL OF MEETING SUMMARY August 12, 2010 Commissioner Bielefeld MOVED to approve the meeting summary of August 12, 2010 and Commissioner Rogers SECONDED the motion. There were no objections. SO ORDERED. PERSONS SCHEDULED TO BE HEARD None OLD BUSINESS Discussion Float Plane Basin Lease Lot Alternatives Wince Corthell- Bryson Deputy Clerk's Note: This item was discussed after Item 6, as Mr. Madden had not yet arrived. Casey Madden, Wince Corthell -Bryson Reviewed four alternatives to the design of lease lots on the east side of the floatplane basin. General discussion occurred. Commission requested minor changes to Alte native #2, which would be forwarded to the Airport Manager and who would forward to the Commission for review and comment. Council Member Moore requested the final configuration be sent to Council for review. ITEM 6: NEW BUSINESS 6 -a. Discussion Commission Duties and the Relationship Between Commissions, Administration and Council Airport Manager Bondurant noted City Manager Koch had a conflict and was not able to attend and informed the Commission the item would be rescheduled. 6 -b. Discussion Scheduling 1 lth Kenai. Peninsula Air Fair Commission reviewed the calendar for the 2011 Kenai Peninsula Air Fair. MOTION: Commissioner Rogers MOVED to set the 2011 Kenai Peninsula Air Fair for June 4, 2011. Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. 6 -c. Discussion /Request Cancel or Reschedule November Meeting Date MOTION: Commissioner Rogers MOVED to request the City Clerk cancel the November Airport Commission Meeting and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. ITEM 7: REPORT 7 -a. Commission Chair None 7 -b. Airport Manager Bondurant reviewed the following: Information items in the packet. The snow plowing /sanding contract was out to bid. The Apron Rehab project was completed for the winter. Hertz would be out of the terminal as of October 31, 2010. Car rental agreements would expire December 31, 2010, and Administration was working on new agreements. AIRPORT COMMISSION MEETING OCTOBER 14, 2010 PAGE 2 The Airport Ad 2010. 7 -c. City Council Liaison Council Member Moore reported the election results and reviewed the Action Agenda items included in the packet. Commission invited the new Council Members to attend a future Airport Commission meeting. ITEM 8: 8 -a. The Co ITEM 9: ITEM 10: ITEM 11: 11 -a. miss NEXT MEETING ATTENDANCE NOTIFICATION November 11, 2010 (Veterans Day) on requested cancellation of the November meeting. COMMISSIONER COMMENTS AND QUESTIONS Knackstedt noted he thought the "temporary" transient parking had not been done very well. PERSONS NOT SCHEDULED TO BE HEARD None INFORMATION ITEMS There being no further business before the Commission, the meeting was adjourned at approximately 8:13 p.m. Meeting summary prepared and submitted by: Corene Hall, CMC, Deputy City Clerk ni.strative Assistan t would be retiring October 29, Kenai City Council Meeting Action Agendas for September 15 and October 6, 2010. Airport Bulletin 03 -2010 Open and Unattended Gates Airport Bulletin 04 -2010 Airport Winter Snow Removal Operation Float Plane Basin Activity 2006 2010 September 2010 Enplanement Airport Manager's Report September 2010, October 2010 Airport Improvement Program FY1982 FY2010 ITEM 12: ADJOURNMENT MOTION: Commissioner Bielefeld MOVED to adjourn and Commissioner Rogers SECONDED the motion. There were no objections. SO ORDERED. AIRPORT COMMISSION MEETING OCTOBER 14, 2010 PAGE 3 Municipal Airport Memo Attachments "Servinwt QreaZx 1Cena& Peninsula:" 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907- 283 -3737 www.ci.kenai.ak.us. To: Airport Commission From: Mary Bondurant Airport Manag Date: December 2, 2010 Subject: Float Plane Basin Development Alternatives Attached for your review and recommendation are the float plane basin lease lot alternative drawings based on your recent comments. Please review and be prepared to discuss at the December 9, 2010 meeting. WINCE CORTHELL BRYSON Consulting Engineers Box 1041 Kenai, Alaska 99611 Phone 907- 283 -4672 Fax 907 -283 -4676 E Mail cmadden(2wcbalaskacom TO: Mary Bondurant FROM: Casey Madden DATE: November 12, 2010 SUBJECT: Float Plan Basin Development Alternatives Attached are the following drawings that have been prepared from conceptual to Design Development Alternatives. 1. Environmental Assessment Conceptual Drawing 1 -EA 2. Alternatives presented to Commission October meeti ng m Drawings 1 -3 3. Alternatives including Commission comments Drawings 4 -6 4. Alternatives including our recent discussions concenung access, security, and buffering Drawings 6A -6C While Drawing 5 provides a mix of lease lot size accommodating Tee Hangar and. individual Hangar space, comments back to date from Commission members, so far, favor the Drawing 6 concept. As Taxiway S is the same in all alternatives and the design differences in Drawings 5 and 6 are negligible I have prepared Drawings 6A for the Phase One Development, followed by Drawings 6B and 6C showing how the future Development on the West side might proceed. The modification, shown on Drawing 6A, includes relocating the Basin Access Gate to the 5 °i Avenue alignment, providing a separate secure gate for the Water Utility to access their water tank and pump house, and bringing in security fencing with the access road to secure the Taxi Way's and Lease Lots from the unsecure area. The proposed design provides the following benefits 1. Reduces the Access road construction by about 50% 2. Provides direct access for now to the transient camping area on the west side 3. Provides a large buffer to private property to the west, and/or opens property along Taxi Way "S" for leasing. The existing access road would be salvaged for its construction materials and the area reclaimed and planted. 4. Shortens the Sand Haul from the west side stockpile by over a third (38 5. Constructs a portion of the service road required for the Phase Two Revetment construction The proposed alternative also lends itself well to future development on the west side of the Basin, both with the current "future" development plan shown on Drawing 1 -EA, or with the concept of providing buffer along the Airport Boundary as shown on Drawing 6C. None of the Alternatives deviate significantly from the concept contained in the recent Environmental Assessment and in fact mitigate some of the impacts and concerns of neighboring property owners. In addition. to the above described changes we have shown, on Drawings 6B and 6C, your request to provide for Commercial Transient Slips in the turnaround area at the north end of the water taxiway. These slips could be accessed along the existing service road however would require some fencing and gating as well as development of a small. area for shore side facilities, that is yet to be determined. Philip W. Bryson PE Alan N. Corthel PE Frank W. Wince PE (Ret.) Mark E. Manning PE E. Casey Madden PE I can proceed with the Taxiway S design as it is pretty much where it needs to be and entails the majority of the critical features for the overall project, however will need a decision on which Alternative or combination is desired for the Taxi Lane and Lease Lot configuration to the North of Taxiway S. Philip W. Bryson PE Alan N. Corthell PE Frank W. Wince PE (Ret.) Mark E. Blanning PE E. Casey Madden PE City of Kenai Fiscal Year 2012 Operating Budget Budget Projection Fund: 008 Airport Fund Original Actual Actual Budget FY 2009 FY 2010 FY 2011 Revenues State Federal Grants 64,935 31,902 28,540 Usage Fees Fuel Sales 9,533 13,136 10,000 Fuel Flowage 87,724 27,806 22,500 Float Plane 1,274 1,123 1,800 Tie Down 9,590 7,175 12,000 Landing 221,188 233,548 272,250 Plane Parking 20,356 29,869 32,000 Total Usage Fees 349,665 312,657 350,550 Rents and Leases Land 459,441 472,497 480,000 Fish Hauling 10,242 3,344 7,000 Total Rents and Leases 469,683 475,841 487,000 Miscellaneous Penalty and Interest 1,834 3,153 3,000 Interest on Investments 144,598 31,080 55,000 Other 29,683 22,895 5,000 Total Miscellaneous 176,115 57,128 63,000 Terminal Revenue Parking Fees 167,017 163,461 190,000 Rents and Leases 179,268 203,501 210,000 Penalty and Interest 1,052 1,000 Car Rental Commissions 206,465 160,627 170,000 Advertising Commissions 7,422 5,958 7,000 Grants Miscellaneous 7,269 9,995 6,500 Total Terminal Revenue 568,493 543,542 584,500 Transfers In General Fund Capital Project Fund Airport Land Trust Fund Total Transfers In Expenditures Airport Terminal Airport Airfield Airport Administration Airport Other Buildings and Areas Airport Training Facility 1,000 63,380 291,937 904,447 968,157 291,937 967,827 969,157 Total Revenues 1,920,828 2,388,897 2,482,747 507,768 502,790 545,702 1,617,702 1,371,420 1,554,453 282,024 235,285 259,735 770,194 296,188 167,689 164,138 86,504 80,000 Total Expenditures Contribution To /(From) Fund Balance: Projected Lapse (6 Adjusted (Deficit) /Surplus Beginning Fund Balance Ending Fund Balance City of Kenai Fiscal Year 2012 Operating Budget Budget Projection Fund: 008 Airport Fund Original Actual Actual Budget FY 2009 FY 2010 FY 2011 3,341,826 2,492,187 2,607,579 (1,420,998) (103,290) (124,832) 156,455 31,623 5,151,933 3,730,935 3,505,695 3,730,935 3,627,645 3,537,318 Account Number Expense Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health Life Insurance 0900 Supplemental Retirement Total Salaries Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating Repair Supplies 2024 Small Tools /Minor Equipment 2025 Snack Bar Supplies 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel Transportation 4534 Advertising 4535 Printing Binding 4536 Insurance 4537 Utilities 4538 Repair Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667.._.- Duce Publications 4999 General Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Capital Outlay Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery Equipment 9090 Transfers Total Capital Outlay and Transfers City of Kenai Fiscal Year 2012 Operating Budget Airport Fund Summary by Line Item FY2090 Actual Five year Historical Average Original Budget FY2011 335,785 307,212 351,466 30,056 43,360 43,500 6,114 7,464 12,654 4,715 4,624 5,218 893 989 692 97,465 91,483 110,435 830 254 1,942 11,108 13,220 11,772 65,752 67,142 64,740 8,721 8,155 9,100 561,439 543,903 611,519 1,393 1,634 2,750 165,390 151,205 189,000 20,141 20,645 14,800 329 645 1,400 67,923 60,801 53,000 21,000 22,948 28,800 10,385 7,203 10,100 7,229 9,242 15,400 2,871 2,569 5,500 9 3, 047 106,270 102,300 263,150 252,270 322,910 273,993 266,187 286,080 15,564 13,143 20,000 77 92 650 382 347 520 40,000 2,490 17,552 3,450 18,505 Total Maint. and Operations 945,364 951,258 19,000 24,001 45,517 60,958 961,383 1,032,293 1,096,660 34,000 20,000 845,400 985,384 1,157,768 899,400 Department Total: 2,492,187 2,652,929 2,607,579 Account Number Expense Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health Life Insurance 0900 Supplemental Retirement Total Salaries &Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating Repair Supplies 2024 Small Tools /Minor Equipment 2025 Snack Bar Supplies 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel Transportation 4534 Advertising 4535 Printing Binding 4536 Insurance 4537 Utilities 4538 Repair Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations Capital Outlay Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery Equipment 9090 Transfers Out Total Capital Outlay and Transfers City of Kenai Fiscal Year 2012 Operating Budget Fund: 008 Airport Fund Department: 65 Airport Terminal FY2010 Actual 83 18,031 2,257 192 4,799 455 453 9,192 108,896 186,764 6,452 Five year Historical Average 58,642 50,920 3,167 3,534 347 613 891 798 5 16,975 14,924 415 119 2,197 2,506 12,301 13,441 1,791 1,435 96,726 88,295 96 14,919 2,480 74 1,274 4,845 915 656 326 9,908 104,869 180,924 4,928 977 415 18,505 338,551 345,134 12,013 2,403 55,500 55,500 Original Budget FY2011 60,995 1,250 2,181 934 17,404 322 2,330 14,619 2,008 102,043 250 15,000 1,600 500 1,000 6,000 2,600 1,000 500 9,600 139,029 170,080 6,900 10,000 1,500 365,559 20,000 58,100 67,513 57,903 78,100 Department Total: 502,790 491,332 545,702 Account Number Expense Description Salaries and Benefits 0100 Salaries 0200 Overtime 0250 Holiday Pay 0300 Leave 0400 Medicare 0450 Social Security 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health Life Insurance 0900 Supplemental Retirement Total Salaries Benefits Maintenance and Operations 2021 Office Supplies 2022 Operating Repair Supplies 2024 Small Tools /Minor Equipment 2025 Snack Bar Supplies 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel Transportation 4534 Advertising 4535 Printing Binding 4536 Insurance 4537 Utilities 4538 Repair Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 466 Dues Publications 4999 Contingency 5041 Miscellaneous 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations Capital Outlay Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery Equipment 9090 Transfers Out Total Capital Outlay and Transfers City of Kenai Fiscal Year 2012 Operating Budget Fund: 008 Airport Fund Department: 65 Airport Airfield FY2010 Actual 121,033 115,208 128,544 26,759 37,868 41,000 3,878 3,044 3,307 2,158 2,238 2,506 260 169 37,503 38,171 47,405 52 768 6,846 9,123 7,090 25,597 26,733 18,795 3,364 3,072 3,342 227,398 235,678 252,757 333 137,513 14,534 306 13,136 4,364 441 81,854 127,234 46,745 7,116 60 98 Five year Historical Average 351 124,899 13,849 75 2,747 14,768 2,492 104 310 94,822 125,480 37,627 7,024 37 177 Original Budget FY2011 500 160,000 10,500 200 500 16,500 2,500 300 1,000 90,100 144,046 86,000 8,100 150 150 10,000 150 433,734 424,762 530,696 11,988 698,300 11,018 6,958 821,768 710,288 839,744 771,000 Department Total: 1,371,420 1,500,184 1,554,453 14,000 757,000 City of Kenai Fiscal Year 2012 Operating Budget Fund: 008 Airport Fund Department: 65 Airport Administration Five year Original Account Expense FY2010 Historical Budget Number Description Actual Average FY2011 Salaries and Benefits 0100 Salaries 112,617 103,379 116,826 0200 Overtime 1,056 0250 Holiday Pay 0300 Leave 1,542 3,269 5,812 0400 Medicare 1,666 1,558 1,778 0450 Social Security 87 0500 PERS 31,021 26,701 32,665 0600 Unemployment Insurance 613 0700 Workers Compensation 642 665 987 0800 Health Life Insurance 19,557 18,290 20,884 0900 Supplemental Retirement 2,549 2,526 2,500 Total Salaries Benefits 169,594 157,531 182,065 Maintenance and Operations 2021 Office Supplies 480 966 1,500 2022 Operating Repair Supplies 498 236 1,000 2024 Small Tools /Minor Equipment 3,350 2,896 2,500 2025 Snack Bar Supplies 2026 Computer Software 329 426 500 4531 Professional Services 511 1,485 1,500 4532 Communications 3,065 2,979 5,000 4533 Travel Transportation 6,021 3,796 5,000 4534 Advertising 6,726 8,276 13,100 4535 Printing Binding 1,977 1,933 3,000 4536 Insurance 2,001 1,540 2,600 4537 Utilities 4538 Repair Maintenance 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 17 55 500 4667 Dues Publications 382 327 370 4999 Contingency 10,000 5041 Miscellaneous 734 706 800 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations 26,091 25,621 47,370 Capital Outlay Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery Equipment 9090 Transfers Out 39,600 46,260 30,300 Total Capital Outlay and Transfers 39,600 46,260 30,300 Department Total: 235,285 229,412 259,735 City of Kenai Fiscal Year 2012 Operating Budget Fund: 008 Airport Fund Department: 65 Other Buildings and Areas Five year Original Account Expense FY2010 Historical Budget Number Description Actual Average FY2011 Salaries and Benefits 0100 Salaries 43,493 36,439 45,101 0200 Overtime 130 128 1,250 0250 Holiday Pay 0300 Leave 347 538 1,354 0400 Medicare 0450 Social Security 633 602 692 0500 PERS 11,966 11,687 12,961 0600 Unemployment Insurance 415 83 239 0700 Workers Compensation 1,423 926 1,365 0800 Health Life Insurance 8,297 8,678 10,442 0900 Supplemental Retirement 1,017 1,122 1,250 Total Salaries Benefits 67,721 60,203 74,654 Maintenance and Operations 2021 Office Supplies 497 218 500 2022 Operating Repair Supplies 9,348 10,262 13,000 2024 Small Tools /Minor Equipment 1,016 200 2025 Snack Bar Supplies 2026 Computer Software 70 200 4531 Professional Services 31,776 32,278 10,000 4532 Communications 9 1,300 4533 Travel Transportation 4534 Advertising 48 14 1,000 4535 Printing Binding 1,000 4536 Insurance 4537 Utilities 8,489 6,123 14,835 4538 Repair Maintenance 7,742 13,521 15,000 4539 Rentals 1,996 1,191 5,000 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues Publications 4999 Contingency 10,000 5041 Miscellaneous 588 16,151 1,000 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations 60,484 80,853 73,035 Capital Outlay Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery Equipment 9090 Transfers Out Total Capital Outlay and Transfers Department Total: 19,000 32,096 54,000 167,983 98,965 296,188 345 20,000 167,983 204,061 20,000 167,689 City of Kenai Fiscal Year 2012 Operating Budget Fund: 008 Airport Fund Department: 65 Airport Training Facility Five year Original Account Expense FY2010 Historical Budget Number Description Actual Average FY2019 Salaries and Benefits 0100 Salaries 1,266 0200 Overtime 774 0250 Holiday Pay 0300 Leave 0400 Medicare 30 0450 Social Security 126 0500 PERS 0600 Unemployment Insurance 0700 Workers Compensation 0800 Health Life Insurance 0900 Supplemental Retirement Total Salaries Benefits 2 Maintenance and Operations 2021 Office Supplies 3 2022 Operating Repair Supplies 889 2024 Small Tools /Minor Equipment 404 2025 Snack Bar Supplies 2026 Computer Software 4531 Professional Services 35,138 23,017 40,000 4532 Communications 347 4533 Travel Transportation 4534 Advertising 192 4535 Printing Binding 4536 Insurance 4537 Utilities 18,531 15,798 25,000 4538 Repair Maintenance 32,742 34,115 15,000 4539 Rentals 4540 Equip. Fund Pmts. 4541 Postage 4666 Books 4667 Dues Publications 20 4999 Contingency 5041 Miscellaneous 93 103 5045 Depreciation 5047 Grants to Agencies Total Maint. and Operations 86,504 74,888 80,000 Capital Outlay Transfers 8061 Land 8062 Buildings 8063 Improvements 8064 Machinery Equipment 9090 Transfers Out 9,800 Total Capital Outlay and Transfers 9,800 Department Total: 86,504 86,884 80,000 Fixed Income Cash Cash Equivalents Wells Fargo Secured Money Market Total Cash Cash Equivalents Government Corporate Securities Government Securities Corporate Securities Total Government Corporate Securities Total Fixed Income Equities Domestic Equities Standard Poors 500 Index Standard Poor's 600 Small -Cap Index Standard Poor's 400 Mid -Cap Index Total Domestic Equities International Equities Vanguard Europe Pacific ETF Vanguard Emerging Market ETF Total International Equities CITY OF KENAI AIRPORT PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY September 30, 2010 31- 0ec -09 31- Mar -10 30Jun -10 30- Sep -10 Yield Weight Weight Maximum 187,867 76,610 53,097 271,956 0.15% 187,867 76,610 53,097 271,956 4,754,201 4,789,317 4,621,118 4,772,025 3.01% 3,290,374 3,514,392 3,345,929 3,408,195 5.56% 8,044,575 8,303,709 7,967,047 8,180,220 4.07% 8,232,442 8,380,319 8,020,144 8,452,176 3.94% 4298% 45.00% 65.00% 4,254,445 4,466,709 4,150,321 5,039,068 1,158,970 1,259,151 946,367 815,560 2,320,741 2,522,335 2,098,396 1,885,323 7,734,156 8,248,195 7,195,084 7,739,951 2,036,029 2,061,032 1,189,087 2,166,337 1,283,300 1,319,295 1,834,985 1,422, 898 3,319,329 3,380,327 3,024,072 3,589,235 Real Estate Vanguard REIT ETF 978,151 1.067,133 821,153 919,889 138% 500% 1000% Total Real Estate 978,151 1,067,133 821,153 919,889 338% 5.00% 10.00% Total Equities 12,031,636 12,695,655 11,040,309 12,249,075 Total Portfolio 20,264,078 21,075,974 19,060,453 20,701,251 7796% 100.01% 100.00% 150.00% 20.00 ®POMOfo aeenchm 75.00% 50.00% 25.00% 0.00% Current or Current Fair Market Value Average Portfolio Target Portfolio Portfolio Composition Fled home Standard B Poets 500 Standard Poor's 000 Standard .1 Poore 400 Vanguard Europe Vanguard Emerging Vanguard REIT ETF Index Small-Cap Index MI4Cap Index Padtk 050 Markel ETF ISCuifenlPartloia Weight a t 0 IP H olm Weight I2Maximum Ponf Weight Portfolio Performance 2124% 20.00% 25.00% 5.39% 5.00% 10.00% 1061% 10.00% 15.00% 37.24% 35.00% 50.00% 10.70% 10.00% 15.00% 5.71% 5.00% 10.00% 16.41% 15.00% 25.00% Last 1 Year 10 Net 11 39e M E N T T S L I S T A I N A B L October 15, 2010 Mr. Terry Eubank Finance Director City of Kenai 210 Fidalgo Avenue Kenai, AK. 99611 Dear Terry; N'V ES 1- 1fN sent via email ALASKA PERM A CAA1TAL MANAGEMENT Enclosed is our September report for the Airport Permanent Fund, which includes a portfolio appraisal and transactions. As this report coincides with the end of a calendar quarter, performance data is included. At month -end, the market value of the portfolio was $20,728,894. Based upon the composition of the portfolio, the annual cash flow would be $300,195. Our monthly commentary is attached. Please let me know if we can help in any way. Sincerely, Bert Wagnon Senior Vice President O E a) 7 O M N Qi .-r d rn a) M W in CO O 01 0 C 0 C W L- CU S_ (O oJ URI a To m FN; ti Uffe CO o CD s V] C N Imo C ell 0J p C s+ NN LL Q u u o .cc c u E ft a V t u La co m J m ro 10 J co N O N E z u c v m v c A u u 4 3 d 1 V (sso.9) u+nyay lalolauaalad o w 00) W Oct 2 4 N m 0 o v U v O c C Q C p4 a. r. 0 O m 0 a 0 v 6 v 7 E =0 Q N 0 o H V N N N ON 0 0 N N v 00 0 2 00 P m v y O d' b G N" a M W no a 0, 0 a a O N C G O O 0 '0 0 rn 00 00 0 G co co. 0 co O N N N P r V` 0 0 Q` i0 A P O 8 W N b O\ 0 m '0 00 0, N N N 0 N r m M o 0 0 0 0 w op 0 n. m "4. r O" rn S of Q N N T C Oi O q O a 00 G O O en N 0 V N N O 0 00 O O W h N N N N OI0 O N O 0 N C 0 N N V0 N '0 `0 1 0 N 0 M O U W f� 10 O O o e c 0 CO W Oi N" 0" b Ot N" c v, 00 O+ N 'O O N N v0 00 'n N h N N N N N N :N V b O' r 0 O O co M N 0 G. 0. o ON 0 l Vi V '0 00 O m 0 co O O O 0 0 0 0 0 0 0 0 O O 0 O 0 O 0 0 0 N C 0 00 O a N O O O O O O N N d' N 0O C 00 O CC 8 N P N M Qo m G. o m o" 8 e 00 LC N 0 o. 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W,� Pa r, H.. u]U �..O ®NON O--�O� o O o 7 -n ze r v, ul U ogac n o 5o 5 o 5 o o r o d N a °a a N a c. r, a° u) o o 04 v) w C7Q Q <n<QdQd d v;� y oa oa a d 0 0 0 azx O Q O^ p H o O H v� HI h."" W Q Q n U m N o c O ti O c' 7; m Q+ V� V] Q IU M� M O O W H� H 0 0 o o al Q 0 0 al R y o 0 E6 0 A X C 0 0 0 h n k. 0 Y N C V E ez 9 D D co 7 F 'an v m o o o o 5> °2 maw gym a 00 Q a q q 0 0. 0 a `o t a 0, a 6 4 'O a a a '0 -o as 'o a -o 3 3 -o o a o ..0 v 01:1 o w o 0 0 0 0 0 0 0 0 0 0 0 N d O r. C� U a 0 m, M re-, O O o o O nO' N 0 0 0 N M M 01 M U O 6 0' 6 0' 01 0' 01 D C CT 0' 0 0 0 O O 0 0 0 O O 0 0 0 W IND L O O O O 0 0 O O O O o O O O O O O O ^r^ 4 ri O 4 4 4 4 O O O O O 4 4 d' r O 0 0 el Fr 0\ O\ C, T 0T 0' CT CT CT C, CT d. 8 8 o, P U o 0 co '3 0 0 o 0 0 o O O o 0 0 0 0 o enal nicipal Airport Memo Attachments "Serving-the/ Qreater Kona,& panty' 14 tia:' 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907- 2837951 FAX 907 -2R3 3737 To: Airport Commission From: Mary Bondurant Airport Manag Date: December 2. 2010 Subject: Airport Welcome Sign www. KenaiAirport. com Several times it has been brought to the attention of Airport Administration that there should be a "welcome" sign on the airfield side of the terminal. I have been working with a local vendor to create a sign to install on the overhead canopy. Also attached is a sample for your review. I would appreciate Commission's thoughts, ideas and suggestions. 2 pas Kenai Municipal Airport Mary 283 -7951 fax 283 -3737 mbondurant @ci.kenai.ak,us 7/14/09 the city of KENAI, ALASKA Welcomes You Munidpai Airport Kenai Municipal Airport Mary 283 -7951 fax 283 -3737 mbondurant @ci.kenai.ak.us the city of s KENAI, ALASKA K enai Municipal Airpo Welcomes You Authorized and Approved 8/19/09 907 262- 4294/fax 260- 1997 /www.gfshermansigns.com ITEM A: CALL TO ORDER ACTION AGENDA KENAI CITY COUNCIL REGULAR MEETING NOVEMBER 3, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: www.ci. kenai.ak.us 1. Pledge of Allegiance 2. Roll Call 3. MIKE BOYLE, VICE MAYOR ELECTION OF VICE MAYOR 4. Agenda Approval 5. 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.) *Ali 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 comment 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) PASSED UNANIMOUSLY. Ordinance No. 2516 -2010 Increasing Estimated Revenues and Appropriations by S13,800 in the Visitors Center Fund for Professional Services to Provide for a Collection Inventory. 2. PASSED UNANIMOUSLY. Ordinance No. 2517 2010 Decreasing Estimated Revenues and Appropriations by $8,167.75 in the Congregate Housing Capital Project Fund Due to the Settlement Reached With the Insurance Company. 3. PASSED UNANIMOUSLY. Ordinance No. 2518 Increasing Estimated Revenues and Appropriations by $30,000 in the General Fund and Vintage Pointe Capital Project Funds for Needed ADA Improvements. 4. PASSED UNANIMOUSLY. Resolution No. 2010 -61 Awarding a Contract to Alaska Sure Seal for Snowplowing /Sanding Services at the Kenai Airport for an Amount Not to Exceed 525,000. ITEM E: MINUTES 1. APPROVED /CONSENT AGENDA. *Regular Meeting of October 20, 2010. ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. APPROVED. Ratification of Bills 2. APPROVED. Approval of Purchase Orders Exceeding $15,000 3. APPROVED. Action /Approval Assignment and Assumption of Lease Agreement from Kathy Chircop d /b /a Reflection Realty Group of Kenai to Alaska Realty Group, Inc. APPROVED. Action /Approval Am.endment /Kenai Convention Visitors Bureau, Inc. Facilities Management Agreement of the Kenai Visitors Cultural Center. SCHEDULED /12 /13/2010, 6:00 P.M. Discussion /Action Schedule Board of Adjustment Hearing /Vincent L. Goddard, on Behalf of the Inlet Entities in the Matters of: Appeal of Planning Zoning Commission Approval of PZI0 -41 An Application for a Conditional Use Permit for a Natural Gas Storage Facility for the Property Known as SE1 /4 SE14 Section 4, Township 5 N, Range 11 W SAKI (1377 Bridge Access Road). Application Submitted by Cook Inlet Natural Gas Storage Alaska, LLC, P.O. Box 190989, Anchorage, Alaska 99519 -0989; and, PZ10 -42 An Application for a Conditional Use Permit for a Natural Gas Storage Facility Well Pad for the Property Known as Tract F, Boat Ramp Subdivision (1430 Bridge Access Road). Application Submitted by Cook Inlet Natural Gas Storage Alaska, LLC, P.O. Box 190989, Anchorage, Alaska 99519 -0989. 6. Discussion /Action Council Commission /Committee Liaison Assignments. 7. NO ACTION. Discussion /Action: Telephonic Participation for Planning Zoning Commissioners at Commission. Meetings 8. ADDED SCHEDULED FOR 11/23/2010, 6:00 P.M. Discussion /Action Schedule Board of Adjustment Hearing Appeal of Administrative Notice of Abatement and Enforcement Order, Lynford Disque d /b /a Circle D Restoration and racing (Outside Storage Yard) 2021 Wyatt Way (KN E1/2 W1 /2 NW1 /4 NW1 /4) /Violation fo KMC 14.20.050(h) and KMC 12.25.030. 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. SCHEDULED SPECIAL COUNCIL MEETING/11/10/2010, 5:00 P.M. Consideration of Resolution /Little Davis Bacon. Act Amendment City Manager 2. Attorney 3. City Clerk ITEM K: ADDITIONAL PUBLIC COMMENT Citizen Cninmer is (Public comment li r., ,i .,.,,;pl.'f. ^s per speaker) Council Member Comments EXECUTIVE SESSION None scheduled. ITEM L: PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) ITEM M: ADJOURNMENT ITEM A: CALL TO ORDER ACTION AGENDA KENAI CITY COUNCIL REGULAR MEETING NOVEMBER 23, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htto://www.ci.kenai.ak.us 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment iin ited 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:) `Ali 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 comment 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.) APPROVED UNANIMOUSLY/Resolution No. 2010 -63 Authorizing the Transfer of $20,000 from the Police Salaries Account to the Police Overtime Account. ITEM E: MINUTES 1. APPROVED Regular Meeting of November 3, 2010. 2. APPROVED/ Special Meeting of November 10, 2010. ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. APPROVED. Ratification of Bills 2. APPROVED. Approval of Purchase Orders Exceeding 15,000 3. INTRODUCED/Ordinance No. 2519 -2010 Amending Title 3 of the Kenai Municipal Code, "Animal Control," to Amend the Definition of the Term "Kennel' to Distinguish Between Commercial and Non Commercial Kennels, to Establish a Notice Process for Kennel License Applications and Renewals, and to Provide for a New Appeal Process of Kennel Licensing Decisions. 4. INTRODUCED/Ordinance No. 2520 -2010 Amending KMC Section 7.15.100, Setting Fee Schedules, to Provide for the Establishment of a Fee Schedule and to Require that Changes to Rates, Charges, or Fees of the City Shall be Proposed by the City Manager and be Effective After Approval of the City Council. 5. INTRODUCED/Ordinance No. 2521 -2010 Increasin.g Estimated Revenues and Appropriations by $4,033.18 in the General Fund for State Bureau of Highway Patrol Overtime Expenditures. 6. INTRODUCED/Ordinance No. 2522 -2010 Increasing Estimated Revenues and Appropriations by S2,069.53 in the General Fund for Training Funds Provided by the Alaska Police Standards Council. 7. CONFIRMED DECEMBER 21, 2010/Discussion Confi.rm /Schedule Work Session with Legislators 8. SCHEDULED DECEMBER 15, 2010/Discussion Schedule Work Session Wind Power Generation Study 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 ITEM K: ADDITIONAL PUBLIC COMMENT EXECUTIVE SESSION None scheduled. ITEM L: ITEM M: 2. Attorney 3. City Clerk 1, Citizen Comments (Public comment limited to 5 minutes per speaker) 2. Council Member Comments PENDING LEGISLATION (This item lists legislation which will he addressed at a later date as noted.) ADJOURNMENT ITEM A: CALL TO ORDER ACTION AGENDA KENAI CITY COUNCIL REGULAR MEETING DECEMBER 1, 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 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 comment limited to 10 m.in.utes per speaker) 1. John Bost, Mikunda Cottrell Co. Presentation of FY 10 Comprehensive Annual Financial Report. ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment limit to 3 minutes per speaker) ITEM D: PUBLIC HEARINGS (Testim.ony 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) POSTPONED /DECEMBER 15, 2010. Ordinance No. 2519 -2010 Amending Title 3 of the Kenai Municipal Code, "Animal Control," to Amend the Definition of the Term "Kennel" to Distinguish Between Commercial and Non Commercial Kennels, to Establish a Notice Process for Kennel License Applications and Renewals, and to Provide for a New Appeal Process of Kennel Licensing Decisions. 2. PASSED UNANIMOUSLY. Ordinance No. 2520 -2010 Amending KMC Section 7.15.100, Setting Fee Schedules, to Provide for the Establishment of a Fee Schedule and to Require that Changes to Rates, Charges, or Fees of the City Shall be Proposed by the City Manager and be Effective After Approval of the City Council. 3. PASSED UNANIMOUSLY. Ordinance No. 2521 -2010 Increasing Estimated Revenues and Appropriations by $4,033.18 in the General Fund for State Bureau of Highway Patrol Overtime Expenditures. 4. PASSED UNANIMOUSLY. Ordinance No. 2522 -2010 Increasing Estimated Revenues and Appropriations by S2,069.53 in the General Fund for Training Funds Provided by the Alaska Police Standards Council. ITEM E: MINUTES ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. APPROVED. Ratification of Bills 2. NONE. Approval of Purchase Orders Exceeding $15,000 3. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2523 -2010 Increasing Estimated Revenues and Appropriations by $2,600.77 in the General Fund for State Traffic Grant Overtime Expenditures. 4. OPEN MEETINGS ACT /JANUARY 24, 2010, 6:00 P.M. Discussion /Action Schedule Work Session /Open Meetings Act and Public Records Training. ITEM H: COMMISSION/ COMMITTEE REPORTS i. 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 1 Citizen COmments (Public comment limited to 5 minutes per speaker) 2. Council Member Comments EXECUTIVE SESSION None scheduled. ITEM L: PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) ITEM M: ADJOURNMENT KENAI, ALASKA MEMO "Village with a Past, Ci y with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -75351 FAX: (907) 283 -3014 www.d.kenai.ak.us TO: Kenai City Council THRU: Rick Koch, City Manager FROM: Christine Cunningham, Assistant to the City Manager DATE: October 14, 2010 RE: Kenai Nikiski Pipe Line, LLC (KNPL) Lease Application Portion of Tract A, Plat No. 78 -111 Attached is the proposed lease for the referenced property, located outside the Airport Reserve, Kenai Nikiski Pipe Line, LLC (KNPL) applied 10 lease the property which is the site of an existing small concrete pad, an antenna tower and conduit for the concrete pad to an existing valve vault on an adjacent portion of property beneath Main Street Loop in Kenai. A Special Use Permit (SUP) entered into on October 19, 1998 for a term of ten (10) years granted Marathon Oil Company the right to install the concrete pad, antenna tower and conduit. KNPL is a subsidiary of Marathon Oil and it is operated by Marathon Pipe Line LLC. KNPL wishes to lease an approximately 22,575 square foot portion of the property as shown on "Exhibit A." The term of the proposed Lease is for twenty (20) years, commencing October 20, 2008, the date after which the SUP expired. Pursuant to KMC 21.15.120 Principles and policy of lease rates, the lease rate is determined based on 8% of the fair market value, and the proposed rent for the referenced parcel is $12,240.00 per year based on a value of $153,000.00 as concluded by the appraisal report prepared by Derry Associates, Inc. effective August 9, 2010. The Planning and Zoning Commission reviewed KNPL's lease application at its meeting on October 14, 2010 where it found that the lease application conformed to the Comprehensive Plan and Zoning Code. The City Attorney has reviewed the attached lease and has no objections as to form. cc: Mary Bondurant, Airport Manager Greg Newman, Kenai Nikiski Pipe Line, LLC Attachments the cit f KENA ALASKA MEMO: "Vt!laye with a Past, Cc 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 283 -7535 FAX: 907- 283 -3014 TO: Christine Cunningham, Assistant to City Ma'nagl r FROM: Marilyn Kebschull, Planning Administrator, DATE: October 14, 2010 SUBJECT: Lease Application Kenai Nikiski Pipe Line LLC (KNPL) Portion of Tract A, Kenai Spur Airport Lease Property, Plat No. 78 -111 At their meeting on October 13, 2010, the Planning Zoning Commission reviewed the above referenced lease application. The Commission found that the lease conforms to the Comprehensive Plan and Zoning Code and recommended the City proceed with the lease. with a Fgtrsre" t_ ,957 gfr LEASE OF AIRPORT LANDS (Outside the Kenai Municipal Airport Reserve) THIS AGREEMENT, entered into this day of 2010, by and between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794, a home -rule municipal corporation of Alaska, hereinafter called "City and KENAI NIKISKI PIPELINE, LLC (KNPL) whose address is Attention Field Services, 539 South Main Street, Findlay, OH, 45840, hereinafter called. "Lessee That the City, in consideration of the payments of the rents and performance of all the covenants herein contained by the Lessee, does hereby demise and Iease to the Lessee the following described property in the Kenai Recording District, Third Judicial District, State of Alaska; to wit: A portion of Tract A, Kenai Spur- Airport Lease Property Plat No. 78-111, NE1 /4, Section 5, Township 05 North, Range 11 West, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska as shown on Attachment "A A. PURPOSE: The purpose for which the Lease is issued is: Location of a pipeline valve in a concrete vault and concrete pad for antenna tower and small building. B. TERM: The term of this Lease is for twenty (20) years, commencing on the 20 day of October, 2008 to the 31 day of June, 2028. C. RENTAL PAYMENT: Subject to the terms of General Covenant No. 9 of this Lease, rental for the above- described land shall be payable as follows: 1. The annual rental rate shall be 8% of the fair market value (as set forth and defined in. General Covenant No.9) of the demised premises. The rental effective October 20, 2008, shall be $12,240.00 per year, plus applicable sales tax, based on a value of $153,000.00, subject to redetermination pursuant to General Covenant No. 9. Annual rent for the fiscal year beginning July 1 and ending June 30 shall be payable in advance on or before the first day of July of each year. If the annual rent exceeds $2,400, then the Lessee may opt at the time of the execution hereof or at the beginning of each new Lease year to pay rent in equal monthly installments, payable in advance on or before the first day of July and on or before the first of each month thereafter. 3. Rental for any period that is less than one (1) year shall be prorated based on the rate of the last full year. Lease of Airport Lands Page 1 of 17 Lessor: Lessee: 4, In addition to the rents specified above, subject to General Covenant No, 9, Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: (a) Taxes pertaining to the leasehold interest of the Lessee, (b) Sales tax now enforced or levied in the future computed upon rent payable in monthly installments whether rent is paid on a monthly or yearly basis. (e) Lessee agrees to pay all taxes and assessments levied in the future by the City of Kenai, as if Lessee was considered the legal owner of record of the leased property. (d) hnterest at the rate of eight percent (8 per annum and ten percent (10 penalties of any amount of money owed under this Lease which. is not paid on or before the date it becomes due. D. GENERAL COVENANTS: USES: Except as provided herein, any regular use of lands or facilities without the written consent of the City is prohibited. This prohibition shall not apply to use of areas designated by the City for specified public uses, such as passenger terminals, automobile parking areas, and streets. 2. USES NOT CONTEMPLATED PROHIBITED: The promotion or operation of any part or kind of business or commercial enterprise, other than as specifically set forth herein, upon, in or above airport lands, without the written consent of the City is prohibited. 3, ASSIGNMENT OR SUBLETTING: Lessee with City's prior written consent, which will not be unreasonably denied, may assign or sublet, in whole or in part, its rights as Lessee hereunder, Any assignee of part or all of the leased premises shall assume the duties and obligations of the Lessee as to such part or all of the leased premises. No such assignment, however, will discharge Lessee from its duties and obligations hereunder. 4. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to recording costs, shall be paid by Lessee. 5, TREATMENT OF DEMISE: The Lessee agrees to keep the premises clean and in good order at its own expense, allowing no damage, waste, nor destruction thereof, nor removing any material therefrom, without written permission of the City. At the expiration Lease of Airport Lands —Page 2 of l7 Lessor: Lessee: of the term fixed, or any sooner determination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. 6. PAYMENT OF RENT: Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building 210 Fidalgo Avenue, Kenai, Alaska 99611. 7. CONSTRUCTION APPROVAL AND STANDARDS: Building construction shall he neat and presentable and compatible with its uses and surroundings. Prior to placing of fill material and /or construction of buildings on a leased area, the Lessee shall submit a plan of proposed development of property to the City, which shall be approved in writing for all permanent improvements. 8. DEFAULT RIGHT OF ENTRY: Should default be made in the payment of any portion of the rent or fees when due, or in any of the covenants or conditions contained in the Lease or in any regulations now or hereinafter in force, then in such event the City shall by written notice give Lessee thirty (30) days to cure such default or defaults, after which if the default is not cured, the City may terminate the Lease, reenter and take possession of the premises, and remove all persons therefrom. 9. RENT ESCALATION: In the event this Lease is for a term in excess of five (5) years, the amount of rents or fees specified herein shall, at the option of either party, be subject to redetermination for increase or decrease based on the percentage rate (set in C.1 above) of fair market value. No increase or decrease in the amount of rents or fees shall be effective, until after thirty (30) days written notice. Fair Market Value is defined as "the highest price estimated in terms of money which a property will bring if exposed for sale on the open market allowing a reasonable period of time to find a purchaser who buys with knowledge of all the uses to which it is adapted and for which it is capable of being used This Fair Market Value will he based on the condition of the land on the date of this lease plus the value of improvements, if any, made by the City subsequent to the date of this Lease which would affect the value of the property, At each five (5) year interval, the City will have the fair market value determined by a qualified independent appraiser. 10. LEASE UTILIZATION: Leased lands shall be utilized for purposes within the scope of the approved application (made a part of this Lease and attached hereto), the terms of the Lease, the terms of the deed under which the land was granted to the Ciry (and any releases pertinent thereto), in conformity with the ordinances of the City and Borough, with Kenai Airport Regulations, and in substantial conformity with the comprehensive plan. Utilization or development for other than the allowed uses shall constitute a violation of the Lease and subject the Lease to cancellation at any time. Failure to substantially complete the development plan of Lease of Airport Lands Page 3 of i7 Lessor: Lessee: the land, consistent with the proposed use and terms of the Lease, shall constitute grounds for cancellation. 11. CONDITION OF PREMISES: The premises demised herein are unimproved and are leased on an as is, where is" basis. 12. UNDERLYING TITLE: The interests transferred, or conveyed by this Lease are subject to any and all of the covenants, terms, or conditions contained in the instruments conveying title or other interests to the City. li. [LIGHT OF INSPECTION: City shall have the right at all reasonable time to enter the premises, or any part thereof, for the purposes of inspection. 14. INDEMNIFICATION AND INSURANCE: Lessee covenants to indemnify, defend, save and hold the City, its elected and appointed officials, agents and employees harmless from all actions, suits, liabilities, 01 damages, or liability of any nature, kind or character, including costs, expenses and attorney's fees resulting from or arising out of any acts of commission or omission by the lessee, his agents, employees, customers, invitees, or arising from or out of the Lessee's occupation, or use of the premises demised, or privileges granted, and to pay all costs connected therewith. Lessee, at the expense of Lessee, shall keep in force, during the term of this agreement, insurance issued by responsible insurance companies authorized to do business in Alaska, in forms, kinds and amounts as determined and directed by the City for the protection of City and/or Lessee. Insurance requirement hereunder shall be subject to the sole determination of the City. Said insurance may include, hut need not be limited to insurance coverages commonly known as, or similar in kind to, public liability, products liability, property damage, cargo, aircraft, foe, workmen's compensation, comprehensive, builders risk, and such other insurance coverage as deemed required in the sole determination of the City. All policies or endorsements thereto shall in all cases where possible name City as Additional Named Insured thereunder and shall contain a waiver of subrogation against the City. All insurance shall he by a company /corporation currently rated "A or better by A.M. Best. Upon approval by City of all insurance required, in the forms, kinds and amounts directed to be procured, Lessee shall deliver all policy originals or duplicate originals and endorsements thereto to the City for incorporation within this agreement as attachment thereto. In any event, Lessee is not to commence to exercise any of the rights and privileges granted under this agreement until such time as all insurance directed and required to be furnished by Lessee is in full force and effect. Lease of Airport Lands Page 4 of 17 Lessor: Lessee: Lessee expressly understands and agrees that any insurance protection furnished by Lessee hereunder shall in no way limit its responsibility to indemnify and save harmless Lessor under the provisions of this agreement. No policy of insurance shall be cancelled or amended with respect to the City without thirty (30) days written notice by registered or certified mail to City by the insurance company. Until otherwise directed in writing by the City Manager, Lessee shall provide set tificates of insurance within thirty (30) days of the date hereof as follows'. Comprehensive General Liability Combined Single Limit (Bodily Injury and Property Damage): $1,000,000 Workmen's Compensation Statutory Lirnits Notwithstanding anything to the contrary, if Lessee fails or neglects to secure required insurance or if said policy or policies are terminated, altered, or changed in any manner not acceptable to the City, then and in that event this lease may he cancelled and terminated, without penalty, on five (5) days written prior notice to Lessee. The City may approve a self insurance program in lieu of the insurance requirements in this section, if the City finds in its sole discretion that such self- insurance program adequately protects the City. The typical amount of insurance coverage required is subject to review and adjustment at the discretion of the City at each five (5) year renegotiation of the lease. a ID MONIES: Any or all rents, charges, fees, or COLLECTION ON UNPAID u�5 0 other consideration which are due and unpaid at the expiration of voluntary or involuntary termination or cancellation of this Lease, shall be a charge against the Lessee and Lessee's property, real or personal, and the City shall have such lien rights as are allowed by law. 16. EASEMENT GRANTS RESERVED: City reserves the right to grant and control easements in, or above the land leased. No such grant or easement will be made that will unreasonably interfere with the Lessee's use of the land, and Lessee shall have free access and use of any and all parking and loading rights, rights of ingress and egress now or hereafter appertaining to the leased premises. 17. LEASE SUBORDINATE TO FINANCING REQUIREMENTS: Lessee agrees that City may modify this Lease to meet revised requirements for Federal or State grants, or to conform to the requirements of any revenue bond covenant. However, the Lease of Airport Lands Page 5 of 17 Lessor: Lessee: modification shall not act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee financial loss. 18. SURRENDER ON TERMINATION: Lessee shall, on the Last day of the term of this Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the term of this Lease or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in City without requirement of any deed, conveyance, or bill of sale thereon. However, if City should require any such document in confirmation hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed by any and all governmental units in connection herewith. Provided, however, that Lessee shall retain title to and remove from the Premises at the Lessor's sole expense, any building, other improvement, or building equipment that the City has determined in writing to the Lessor: I) has exceeded its useful life; 2) is damaged beyond reasonable repair; 3) is a hindrance to the future use of the Premises; and 4) is of negligible value. 19. AIRCRAFT OPERATIONS PROTECTED: (a) There is hereby reserved to the City, its successors and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in the airspace above the surface and all improvements approved by the City of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now or hereafter used for navigation of or flight in the air, using said airspace for landing at, taking off from, or operating on the Kenai Airport. (When the City approves plans for improvements pursuant to paragraph 7, the City to the extent of those improvements releases the easement here expressed.) (b) The Lessee by accepting this conveyance expressly agrees for itself, its representatives, successors, and assigns, that it will not erect nor permit the erection of any structure or object, nor permit the growth of any trees on the land conveyed hereunder, which would be an airport obstruction within the standards established under the Federal Aviation Administration Regulations, Part 77, as amended. In the event the aforesaid covenant is breached, the City reserves the right to enter on the land conveyed hereunder and to remove the offending structure or object, and to cut the offending tree, all of which shall be at the expense of the Lessee or its heirs, successors or assigns. Lease of Airport Lands Page 6 of 17 Lessor: Lessee: 20. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and covenants that the Lessee, upon paying rent and performing other covenants, terms, and conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and enjoy the said leased premises, except that any inconvenience caused by public works projects in or about the leasehold premises shall not be construed as a denial of the right of quiet or peaceable possession. 21. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which, daring the term hereof may become a Lien upon or which may be levied by the State, Borough, City, or any other tax levying body, upon any taxable possessory right which Lessee may have in or to the property by reason of its use or occupancy or the terms of this lease, provided however, that nothing herein contained shall prevent Lessee from contesting any increase in such tax or assessment through procedures outlined in State statutes. 22. SPECIAL SERVICES: Lessee agrees to pay the City a reasonable charge for any special services or facilities not provided for herein if requested by Lessee in writing, and if the City agrees to provide such services or facilities. 23. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that the City shall not be construed or held to be a partner or joint venturer of Lessee in the conduct of business on the demised premises; and it is expressly understood and agreed that the relationship between the parties hereto is, and shall at all times remain landlord and tenant. 24. DEFAULT BANKRUPTCY. ETC.: If the Lessee shall make any assignment for the benefit of creditors or shall be adjudged a bankrupt, or if a receiver is appointed for the Lessee or Lessee's assets, or any interest under this Lease, and if the appointment of the receiver is not vacated within thirty (30) days, or if a voluntary petition is fled under Section 18(a) of the Bankruptcy Act by the Lessee, then and in any event, the City may, upon giving the Lessee thirty (30) days' notice, terminate this lease. 25. NONDISCRIMINATION: The Lessee, for himself, his heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land, that: (a) No person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities; (b) In the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the grounds of race, color, or Lease of Airport Lands —Page 7 of 17 Lessor: Lessee: national origin shall be excluded from participation, denied the benefits of, or otherwise be subjected to discrimination; (c) The Lessee shall use the premises in compliance with all other requirements imposed by or pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally- assisted Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. (d) In the event facilities are constructed, maintained, or otherwise operated on the said property described in this Lease, for a purpose involving the provision of similar services or benefits, the Lessee shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to Title 49, Code of Federal Regulations, Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Nondiscrimination in Federally- assisted Programs of the Department of Transportation Effectuation of Title VI of the Civil Rights Act of 1964, and as said Regulations may be amended. 26. PARTIAL INVALIDITY: If any term, provision, condition, or part of this Lease is declared by a court of competent jurisdiction to be invalid or unconstitutional, the remaining terms, provisions, conditions, or parts shall continue in full force and effect as though such declaration was not made. 27. MODIFICATIONS: No lease may be modified orally or in any mariner other than by an agreement in writing, signed by all parties in interest or their successors in interest. Any such modification shall require Council approval. 28. WARRANTY: The City does not warrant that the property which is the subject of this Lease is suited for the use authorized herein, and no guarantee is given or implied that it shall be profitable or suitable to employ the property to such use. 29. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce reasonable rules and regulations governing the demised premises and the public areas and facilities used in connection therewith. Except in cases of emergency, no rule or regulation hereafter adopted or amended by the City shall become applicable unless Lessee has been given thirty (30) days notice of adoption or amendment thereof 30. NON LIABILITY: City shall not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's right hereunder, on account of the exercise of any such right or authority as provided in this or the preceding section, nor shall Lessee be entitled to terminate the whole or any portion of the leasehold estate herein created, by reason of the Lease of Airport Lands Page 8 of 17 Lessor: Lessee: exercise of such rights or authority, unless the exercise thereof shall so interfere with Lessee's use and occupancy of the leasehold estate as to constitute a termination in whole or in part of this lease by operation of law in accordance with the laws of the State of Alaska and of the United States made applicable to the states. 31. FR \I A NCING: (a) For the purpose of interim or permanent financing or refinancing from time to time of the improvements to be placed upon the leased premises, and for no other purpose, Lessee, after giving written notice thereof to the City, may encumber by mortgage, deed of trust, assignment or other appropriate instrument, Lessee's interest in the leased premises and in and to this Lease, provided such encumbrance pertains only to such leasehold interest and does not pertain to or create any interest in City's title to the leased premises. If such mortgage, deed of trust, or assignment shall be held by a bank or other established lending or financial institution. (which terms shall include an established insurance company and qualified pension or profit sharing trust) and such institution shall acquire the Lessee's interest in such Lease as a result of a sale under said encumbrance pursuant to a foreclosure or other remedy of the secured party, or through any transfer in lieu of foreclosure, or through settlement of or arising out of any pending or contemplated foreclosure action, such lending institution shall have the privilege of transferring its interest in such Lease to a nominee or a wholly owned subsidiary corporation with the prior consent of the City, provided, however, such transferee shall assume all of the covenants and conditions required to be performed by the Lessee, whereupon such lending institution shall be relieved of any further liability under such Lessee from any default after such transfer. Such lending institution or the nominee or wholly owned subsidiary corporation to which it may have transferred such Lease, or any other lending institution which case shall at any time acquire such i hall be relieved of any further liability under such lease from and after a transfer of such lease. (b) A leasehold mortgagee, beneficiary of a deed of trust or security assignee, shall have and he subrogated to any and all rights of the Lessee with respect to the curing of any default hereunder by Lessee. (c) If the holder of any such mortgage, or the beneficiary of any such deed of trust, or the security assignee shall give the City before any default shall have occurred in the Lease, a written notice containing the name and post office address of such holder, the City shall thereafter give to such holder a copy of each notice of default by the Lessee at the same time as any notice of default shall he given by the City to the Lessee, and the City will not thereafter accept any surrender or enter into any modification of this Lease without the prior written consent of the Lease of Airport Lands Page 9 of 17 Lessor'. Lessee: holder of any first mortgage, beneficial interest under a first deed of trust, or security assignee, in this Lease. (d) If, by reason of any default of the Lessee, either this lease or any extension thereof shall be terminated at the election of the City prior to the stated expiration therefor, the City will enter into a new Lease with the leasehold mortgagee for the remainder of the term, effective as of the date of such termination, at the rent and additional rent, and on the terns herein contained, subject to the following conditions: (e) if a lending institution or its nominee or who :Arced subsidiary corporation shall hold a mortgage, deed of trust, or similar security interest in and to this Lease and shall thereafter acquire a leasehold estate, derived either from such instruments or from the City, and if such institution, nominee, or corporation shall desire to assign this Lease or any new Lease obtained from the City (other than to a nominee or to a wholly owned subsidiary corporation as permitted by the above provisions) to an assignee who will undertake to perform and observe the conditions in such Lease required to be performed by the Lessee, the City shall not unreasonably withhold its consent to such assignment and assumption, and any such lending institution, nominee, or subsidiary shall be relieved of any further liability under such Lease from and after such assignment. If the proposed assignor shall assert that the City is unreasonably withholding its consent to any such proposed assignment, such dispute shall be resolved by arbitration. Lease of Airport Lands Page 10 of 17 (1) Such mortgagee, beneficiary or security assignee, shall make written request to the City for such new Lease within twenty (20) days after the date of such termination and such written request shall be accompanied by a payment to the City of all sums then due to the City under this Lease. (2) Such mortgagee, beneficiary, or security assignee, shall pay to the City, at the time of the execution and delivery of such new lease any and all sums due thereunder in addition to those which would at the time of the execution and delivery thereof be due under this Lease but for such termination, and in addition thereto, any reasonable expenses, including legal and attorneys' fees, to which the City shall have been subjected by reason of such. default. (3) Such mortgagee, beneficiary, or security assignee shall, on or before the execution and delivery of such new Lease, perform all the other conditions required to be performed by the Lessee to the extent that the Lessee shall have failed to perform such conditions. Lessor: Lessee: 32. HAZARDOUS MATERIALS AND HAZARDOUS WASTE: City and Lessee agree that each shall comply with all applicable laws and regulations concerning hazardous chemicals and other hazardous materials, and shall properly store, transfer and use all hazardous chemicals and other hazardous materials and not create any environmental hazards on the lands leased herein. Should any hazardous chemicals or hazardous materials of any kind or nature whatsoever, or hazardous' wastes to be released by Lessee upon the subject lands during the tern of this lease, Lessee shall immediately report such release to the City Manager or other appropriate City official and to any other agency as may be required by law, and Lessee shall, at its own cost, assess, contain and clean up such spilled materials in the most expedient manner allowable by law. City and Lessee agree to hold harmless and indemnify the other from, and to assume all duties, responsibilities and liabilities at the indemnifying party's sole cost and expense (for payment of penalties, sanctions, forfeitures, losses, costs or damages), for responding to any action, notice, claim, order, summons, citation, directive, litigation, investigation or proceeding which is related to (i) failure to comply with any local, state or federal statutes, regulations, or ordinances pertaining to hazardous chemicals, hazardous materials, hazardous wastes, or any environmental conditions or matters as may now or hereafter be in effect, and (ii) any environmental conditions that arise out of or are in any way related to the condition of the property or activities conducted by the party thereon, unless the environmental conditions that are caused by the other party. The indemnifications of this paragraph specifically include reasonable costs, expenses and fees incurred in connection with any investigation of property conditions or any clean -up, remediation, removal or restoration work required by any governmental authority. The provisions of this paragraph will survive the expiration or termination of this right to terminate this Lease upon notice to the City of Kenai. Interference is defined as anything that prohibits the uses specified in Section 3 of this lease, As used herein, "hazardous chemical" means a chemical that is a physical hazard or a health hazard. As used herein, "hazard material" means a material or substance, as defined in 49 C.F.R. 171.8, and any other substance determined by the federal government, the state of Alaska or City of Kenai, to pose a significant health and safety hazard As used herein, "hazardous waste" means a hazardous waste as identified by the Environmental Protection Agency under 40 C.P.R. 261, and any other hazardous waste as defined by the federal government, the state of Alaska or City of Kenai. The covenants and obligations described in this article shall survive the termination of this lease. Lease of Airport Lands Page 11 of 17 Lessor: Lessee: Notwithstanding anything to the contrary, in order to aid the Lessee in the financing of the improvements to be situated herein, City agrees that in the event the proposed mortgagee, beneficiary, or security assignee under any interim or permanent loan on the security of the leasehold interest of the Lessee and the improvements to be situated thereon so requires, the City will make a reasonable effort to amend this Lease in order to satisfy such requirements upon the express condition and understanding, however, that such variance in language will not materially prejudice the City's right hereunder nor be such as to alter in any way the rental obligations of the Lessee hereunder nor its obligations to comply with all existing laws and regulations of the City relating to the leasing of airport lands, and to all applicable Federal statutes, rules and regulations, and all covenants and conditions of the deed by which the City holds title to the land. 33. COMPLIANCE WITH LAWS: Lessee shall comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the leased premises or the sidewalks, alleys, streets, and ways adjacent thereto or any buildings, structures, fixtures and improvements or the use thereof, whether or not any such laws, ordinances, and regulations which may be hereafter enacted involve a change of policy on the part of the governmental body enacting the same. Lessee agrees to hold City financially harmless: (a) From the consequences of any violation of such laws, ordinances, and/or regulations; and (b) From all claims for damages on account of injuries, death, or property damage resulting from such violation. (c) Lessee further agrees it will not permit any unlawful occupation, business, or trade to be conducted on said premises or any use to be made thereof contrary to any law, ordinance, er regulation as aforesaid with respect thereto, ir ?adin` --o zoning ordinances, rules and regulations. 34, CARE OF PREMISES: Lessee, at its own cost and expense shall keep the leased premises, all improvements which at any time during the term of this Lease may be situated thereon, and any and all appurtenances thereunto belonging, in good condition and repair during the entire term of this Lease. 35. SANITATION: The Lessee shall comply with all regulations or ordinances of the City that are promulgated for the promotion of sanitation. The premises of the lease shall be kept in neat, clean, and sanitary condition, and every effort shall be made to prevent the pollution of water. 36. LESSEE'S OBLIGATION TO REMOVE LIENS: Lessee will not permit any liens including, but not limited to, mechanics', laborers', or materialmen's Iiens obtainable or Lease of Airport Lands Page 12 of 17 Lessor: Lessee: available under the then existing laws, to stand against the leased premises or improvements for any labor or material furnished to Lessee or claimed to have been furnished to Lessee or to the Lessee's agents, contractors, or sublessees, in cotmection with work of any character performed or claimed to have been performed on said premises or improvements by or at the direction or sufferance of Lessee,, provided, however, Lessee shalt have the right to provide a bond as contemplated by Alaska law and contest the validity or amount of any such lien or claimed lien. On final determination of such lien or such claim for lien, Lessee will immediately pay any judgement rendered with all proper costs and charges and shall have such lien released or judgement satisfied at Lessee's own expense. 37. CONDEMNATION: In the event the leased premises or any part thereof shall be condemned and taken for a public or a quasi-public use, then upon payment of any award or compensation arising from such condemnation, there shall be such division of the proceeds, such abatement in rent payable during the term or any extension of the term hereof, and such other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If the City and Lessee are unable to agree within thirty (30) days after such an award has been paid into Court, upon what division, annual abatement in rent, and other adjustments are just and equitable, the dispute shall he determined by arbitration. 38. PROTECTION OF SUBTENANTS: To protect the position of any subtenant(s) hereafter properly obtaining any interests in the leasehold estate granted Lessee hereunder, City agrees that in the event of the cancellation, termination, expiration, or surrender of this Lease (the ground lease), the City will accept the Subtenant, its successors and assigns, as its lessee for a period equal to the full unelapsed portion of the term of the sublease, including any extensions or renewals thereof, not exceeding the term of this Lease, upon the same covenants and conditions therein contained, to the extent that said covenants and conditions are not inconsistent with any of the terms and conditions of this Lease, provided such subtenant shall make full and complete attornment to the City for the balance of the term of such sublease so as to establish direct privity of estate and contract between the City and the subtenant with the same force and effect as though such sublease was originally made directly between the City and such subtenant; and further provided such subtenant agrees to comply with all the provisions of the ground lease and all the terms of any mortgage, deed of trust, or security assigmnent to which such leasehold estate is subject, except the payment of rent under the ground lease and the payment of any debt service under any such mortgage, deed of trust, or security assignment. 39. SUCCESSORS IN IN 1 EREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations on assignment as are provided for herein. 40. GOVERNING LAW: This indenture of Lease shall be governed in all respects by the laws of the State of Alaska. Lease of Airport Lands Page 13 of 17 Lessor: Lessee: 41. NOIICES: (a) Any notices required by this Lease shall be in writing and shall be deemed to be duly given only if delivered personally or mailed by certified or registered mail in a prepaid envelope addressed to the parties at the address set forth in the opening paragraph of this lease unless such address has been changed pursuant to sub paragraph (b) hereafter, and in that case shall to the most recent address so changed. Any notice so mailed shall be deemed delivered on the date it is deposited in a U.S. general or branch post office. The City shall also mail a copy of any notice given to the Lessee, by registered or certified mail, to any leasehold lender (mortgagee, beneficiary of a deed of trust, security assignee) who shall have given the City notice of such mortgage, deed of trust, or security assignment. (h) Any such addresses may be changed by an appropriate notice in writing to all other parties affected provided such change of address is given to the other parties by the means outlined in paragraph (a) above at Ieast fifteen (15) days prior to the giving of the particular notice in issue. 42. RIGHTS OF MORTGAGEE OR LIENHOLDER. In the event of cancellation or forfeiture of a lease for cause, the holder of a property recorded mortgage, deed of trust, conditional assignment or collateral assignment will have the option to acquire the Lease for the unexpired term thereof, subject to the terms and conditions as in the original lease. 43. ENTRY AND RE-ENTRY: In the event that the Lease should be terminated as hereinbefore provided, or by summary proceedings or otherwise, or in the event that the demised lands or any part thereof should. be abandoned by the Lessee during said term, the Lessor or its agents, servants, or representatives may, immediately or any time thereafter, re- enter, and resume possession of said lands or such part thereof, and remove all persons and property therefrom, either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefor, No re -entry by the Lessor shall be deemed an acceptance of a surrender of the Lease. 44. RETENTION OF RENTAL: In the event that the Lease should be terminated because of any breach by the Lessee as herein provided, the rental payment last made by the Lessee shall be retained by the Lessor as partial or total liquidated damages for said breach. Lease of Airport Lands Page 1 of 17 Lessor: Lessee: 45. WRITTEN WAIVER: The receipt of rent by the Lessor with knowledge of any breach of the Lease by the Lessee, or any default on the part of the Lessee in observance or performance of any of the conditions or covenants of the Lease, shall not be deemed to he a waiver of any provisions of the Lease. No failure on the part of the Lessor to enforce any covenant or provision therein contained, nor any waiver of any right thereunder by the Lessor, unless in writing, shall discharge or invalidate such covenants or provisions, or affect the right of the Lessor to enforce the same in the event of any subsequent breach or default. The receipt, by the Lessor, of any rent or any other sum of money after the termination, in any manner, of the term therein demised, or after the giving of the Lessor of any notice thereunder to effect such termination, shall not reinstate, continue, or extend the resultant term therein demised, or destroy, or in any manner impair the efficacy of any such notice of termination as may have been given thereunder by the Lessor to the Lessee prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by the Lessor. 46. BUILDING AND ZONING CODES: Leased lands shall be utilized in accordance with the building and zoning ordinances and rules and regulations of said authority. Failure to do so shall constitute default. 47. FIRE PROTECTION: The Lessee will take all reasonable precautions to prevent, and take all necessary action to suppress destructive or uncontrolled fires and comply with all laws, regulations, and rules promulgated and enforced by the City for fire protection within the area wherein the leased premises are located. 48. PERSONAL USE OF MATERIALS: All coal, oil, gas and other minerals and all deposits of stone or gravel valuable for extraction or utilization are excepted from the operation of a surface Lease. Specifically, the Lessee of the surface rights shall not sell or remove for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes; provided, however, that material required for the development of the leasehold may be used if its use is first approved by the City Manager. 49. MUTUAL CANCELLATION: Leases in good standing may be cancelled in whole or in part at any time upon mutual written agreement by Lessee and the City Council. 50. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leasehold premises to be used for an unlawful purpose. 51. APPROVAL OF OTHER AUTHORITIES: The issuance by the City of leases does not relieve the Lessee of responsibility of obtaining licenses or permits as may be required by duly authorized Borough, State or Federal agencies. 52. REQUEST TO PURCHASE: If the tract of land proposed to be sold is leased land where the lease sets forth a development schedule, the lessee may request the sale of said land at not less than fair market value. The current lessee obtains the right to request a sale Lease of Airport Lands Page 15 of 7 Lessor: Lessee: only after, to the satisfaction of the Ciry Manager, completed development as detailed in the development schedule that has been incorporated into the lease agreement. The decision whether or not to sell the property rests within the sole discretion of the City_ 53. NOTICE OF CONSTRUCTION: Lessee agrees to notify the City in writing three days prior to commencing any construction project valued in excess of $1,000.00 upon the property. Lessee agrees to assist in the posting of a notice of non responsibility and maintenance of the notice upon the property during construction. Lessee agrees that in the event of the Lessee's failure to notify the City as provided above, Lessee shall indemnify the City against any materialmen's liens as defined in AS 34.35.050 which arise as a result of construction upon the premises. IN WITNESS WITEREOF, the parties hereto have hereunto set their hands the day and year stated in the individual acknowledgments below. (If Lessee is a Corporation) ATTEST: Name Title Lease of Airport Lands Page 16 of 17 LESSOR: CITY OF KENAI By: Rick R. Koch City Manager LESSEE,: By: Lessor: Lessee: STATE OF ALASKA THIRD JUDICIAL DISTRICT STATE OF ALASKA THIRD JUDICIAL DISTRICT Carol Freas, City Clerk Lease of Airport Lands Page 17 of 17 ss. THIS IS TO CERTIFY that on this day of 2010, Name: Title: of being personally known to me or having produced satisfactory evidence of identification, appeared before inc and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said corporation. ss. THIS IS TO CERTIFY that on this day of 2010, Rick R. Koch, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me an.d acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Approved as to lease form by City Attorney: t, a r9 Approved by Finance Director: Lease approved by Council on Notary Public for Alaska My Commission Expires: Notary Public for Alaska My Commission Expires: Lessor: Lessee: LINE TABLE LINE BEARING LENGTH L1 538 20.19' L2 N51 "4l 30.11' L3 N50 30.59' L4 N39'54'22'E 34.03' L5 5 38.92' L6 N39'39'23 E 15,28' L7 850'50'58 'E 8.48' I L8 539'56'23 7.22' L9 551 "E 12.32' L10 538'29'18 "W 23.60' Bo r Scale W N s a7 N47 "E 163.52' 491 1 Cr—C\ Tract A a 20.21 l50 S 0848' r es .6. .5 metal building oo t1 1' N4972'37.9 161002' Wharf dve 547 "W lease parcel 30' Access Ensemere LEGEND 0 Reber (found 6 foot chain \link fence steel tower Scale 50' KENAI Drawn: SH RECORDING DISTRICT Surveyed: June 28, 2010 #210069 Plat: 7S -111 Pile :210069 Kenai S.ur A' ort. Pro ert F.B. 2010 -2 20:69,73 NOT A VALID COPY WITHOUT A SEAL X IB 1Pirac v) 135.61' of r N N O O Kenai -S r Ar High 230' R0W C. UMW 0 Date: 16 Auo,_2010 20 INTEGRI TY SURVEYS, INC, 43335 K—Becch Rd. Ste. 10 Soldotnc, AK 99669 SURVEYORS PHONE (907) 262 -5573 ELANI FAX (907) 262 -5574 ereby certify that this survey is a representatio the conditions that were found of the e of the field survey which was performed on: Tract A Kenai Spur— Airport Lease Property and that this document does not constitute o boundary survey and is subject to any inaccur— acies that a subsequent boundary survey may disclose. The information contained on this drawing shall not be used to establish any fence, structure or other improvements. Exclusion Note: It is the responsibility of the Owner to determine the existence of any easements, covenants, or restrictions which do not appear forded subdivision plat. METES AND BOUNDS DESCRIPTION FOR PROPOSED LEASE PARCEL ON TRACT A Located within Tract A of Kenai Spur Airport Lease Property Plat No. 78 -111, NE1 /4, NE1 /4, Section 5, Township 05 North, Range 11 West, Seward Meridian, City of Kenai, Kenai Recording District, Kenai Peninsula Borough, Alaska More particularly described as follows: Beginning at the most northerly comer of Tract A, common with Tract B and Tract C, also being the TRUE POINT OF BEGINNING; Thence, S42 °31'00 "E 148.19 feet adjoining common lot line of Tract A and Tract B to a point; Thence, S43 °29'37 "W 162.51 feet to a point common with the Main Street right of way; Thence, 137.14 feet adjoining said right of way along a non tangential curve concave to the southwest having a radius of 1386.20 feet, with a cord bearing of N51 °19'39 "W and a cord distance of 137.08 feet, to a point common with Tract C and Tract A; Thence 35.48 feet adjoining the common lot line of Tract C and Tract A along a tangential curve concave to the east having a radius of 20.00 feet, with a cord bearing of NO3 °20'21 "W and a cord distance of 31.01 feet to a point; Thence N47 °29'00 "E 163.52' adjoining common lot line of Tract A and Tract C to a point common with the most northerly corner of Tract A, also being the TRUE POINT OF BEGINNING. Described area is 26,636 square feet more or less. Exhibit A is attached here to. Exhibit A is a drawing showing the conditions on site at the time the field survey was performed. 0'= S6 /I6 //BUFF rat ,eanenn_s, ena i un lc i pal Airport Memo To: Thank you, Randy. "Servtnwthe'Q recite, KevtaL'Pevl.inaular 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907-283-3737 Rick R. Koch- City Manager From: Mary Bondurant Airport Mana Earl Hicks Operations Supervis Date: November 12, 2010 Subject: Appreciation Randy Parrish, Shop Foreman We would like to say thank you to Randy Parrish for his recent efforts maintaining and repairing airport equipment during the first winter storm of the season. Randy came in four times over that weekend to accomplish fast and speedy turnarounds for the breakdowns; and we had plenty. We would not have been able to keep the runway open without his time and efforts. The airport has never been treated so good. His attitude is "call me anytime www.kenaiairport.com Memo To: Rick R. Koch City Manager Terry Eubank Finance Director From: Mary Bondurant Airport Manager Date: October 12, 2010 Please contact me if you have any questions. "Sewivtwt3we'QreafrKenai. Peninsula; 305 P1. WLLOW St SUITE 200 KENN, ALASKA 99599 TELEPHONE 907-283-7951 FAX 907. 2833737 Subject: Snow Plowing /Sanding Services Contract at the Kenai Airport Terminal Building, Kenai Flight Service Station, and Alaska Fire Training Facility In January 2010, a Letter of Correction from the FAA Airport Certification Inspector noted the lack of sufficient qualified personnel to accomplish snow removal operations at the airport during a mild snow event. Solutions were discussed during the FY11 Airport work sessions to address this and meet the part 139 requirement that the airport have sufficient qualified personnel. At the direction of the City Manager, additional City staff were assigned to be on -call to the airport for snow removal operations and a bid package was prepared to secure a plowing /sanding contract for the parking lots at the airport terminal building, Kenai Flight Service Station, and Alaska Fire Training Facility. The intent is to free -up staff from low priority parking lot maintenance to allow for the high priority of runway /taxiway /apron plowing and sanding. The Invitation to Bid is scheduled to advertise on October 14, 15 and 17. Bid opening is Monday, October 25, and the contract awarded at the November 3, 2010 Council meeting. I recommend transferring $10,000 from the Airfield /Overtime account and $15,000 from the Terminal /Improvements Other Than Buildings account for a total of $25,000 into M &O /Repairs and Maintenance to cover this contract. www.ci.kenai.ak us. Memo To: From: Date: Subject: Alaska Sure Seal "Secviitutthereater K:evuxv t enu,vtwdar 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907,2033737 Rick R. Koch City Manager Terry Eubank Finance Director Mary Bondurant —Airport Manage October 26, 2010 Bid Results Airport Snow Plowing /Sanding Services The Airport advertised on October 14, 15, 17, 2010 for snow plowing /sanding services at the Kenai Airport terminal building and various associated parking lots. Three (3) bid packets were picked up and two (2) bids were received on October 25 at 2:00p.m. The Operations Supervisor and reviewed the, following bids: 1. Snow Plowing 2. Sanding 3. Sand Redoubt View Enterprises 1. Snow Plowing 2 Sanding 3. Sand www.ci.kenai.ak.us. -12- $115.00 per hour 40.00 per hour 50.00 cubic yard $500.00 per hour $110.00 per hour 50.00 cubic yard Both bids were found to be qualified, responsive, and responsible. It is our recommendation that the contract be awarded to Alaska Sure Seal, the bidder who submitted the lowest responsive bid at the November 3, 2010 Council meeting. thr KENAI, ALASKA A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AWARDING A CONTRACT TO ALASKA SURE SEAL FOR SNOWPLOWING /SANDING SERVICES AT THE KENAI AIRPORT FOR AN AMOUNT NOT TO EXCEED S25,000. WHEREAS, on October 14, 2010, the City of Kenai requested bids for snowplowing /sanding services at the Kenai Airport Terminal Building and various parking lots; and, WHEREAS, a competitive sealed bid process is a reasonable and acceptable means of securing services; and, WHEREAS, two bids were received on October 25, 2010 for the contract 2010 2011 winter season (and may be extended for two successive one year terms by mutual consent of the City and the Contractor); and, WHEREAS, the bid amounts received were as follows: Bidder CITY OF KENAI RESOLUTION NO. 2010 -61 Alaska Sure Seal Item 1 Snowplowing Per Hour $1 15.00 Item 2 Sander Per Hour 40.00 Item 3 Sand Cubic Yard 50.00 Redoubt View Enterprises Item 1 Snowplowing Per Hour $500.00 Item 2 Sander Per Hour $110.00 Item 3 Sand Cubic Yard 50.00 WHEREAS, both bids were found to be qualified, responsive, and responsible; and, WHEREAS, City Administration has determined. Alaska Sure Seal submitted the lowest qualified, responsive, and responsible bid; and, WHEREAS, the recommendation from the City Administration is to award the contract to Alaska Sure Seal for an amount not to exceed $25,000; and, WHEREAS, sufficient monies are appropriated in the Airport /M &O /Repairs and Maintenance budget. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the bid for the snowplowing sanding services be awarded to Alaska Sure Seal. New Text Underlined PLLETED TEXT BRACKET -10- Suggested by: Administration 1 Resolution No. 2010 -61 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this third day of November, 2010. ATTEST: Carol L. Freas, City Clerk Approved by Finance: 7' New Text Underlined' [DELETED TEXT BRACKETED1 PAT PORTER, MAYOR KENAI, SKA MEM 0: wctn a Past Ct y with a Ftctrsre 210 Fidaigo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 FAX: (907) 283 -3014 www.ci.kenai.ak,us TO: Rick Koch, City Manager FROM: Christine Cunningham, Assistant to the City Manager DATE: October 28, 2010 SUBJECT: Assignment and Assumption of Lease Agreement Kathy Chircop, Realtor, d /b /a Reflections Realty Group of Kenai currently leases 150' of office space at the Kenai Municipal Airport Terminal and has requested to assign her lease to Alaska Realty Group, Inc. Attached is the request as well as the proposed Assignment and Assumption of Lease Agreement. The lease states, "The Lessee shall not assign all or any portion of this lease without the City's prior written consent," Kathy Chircop and Alaska Realty Gorup, Inc. are in compliance with the City of Kenai and the Borough sales tax payments. The City Attorney has reviewed the document and has no objection to the form. If Council approves the assignment, the Assignment and Assumption of Lease Agreement can be executed. Attachment cc: Kathy Chircop, Realtor, d /b /a Reflections Realty Group Mary Bondurant, Airport Manager Sincerely, Kathy Chircop- Broker TOO/ too'a 0aZ ALASKA REALTY GROUP, INC. Located in the Kenai Airport 305 N. Willow STE 106 Kenai, AK 99611 Office (907)335 -3333 Fax (907)2E3-3883 To Whom It May Concern: Please make note of our address, business name, phone number, etc. If you could input into your system and change over the lease, billing, and any other documents that are still in the previous occupants name, we would greatly appreciate it. If you have any questions, feel free to contact us. Thank you so much. 9r:Et o100 2 ?'WJO ASSIGNMENT AND ASSUMPTION OF LEASE AGREEMENT Kathy E. Chircop, Lessor under that certain Lease of Airport Facilities dated December 1, 2009, by and between the. City of Kenai (Lessor) and Kathy Chircop d /b /a. Reflections Realty Group of Kenai (Lessee) dated December 1, 2009, covering the following- described premises located in the City of Kenai: Office space #21, first floor, terminal building, Kenai Municipal Airport, Kenai Recording District, Kenai, Alaska, within the NW /a, SE 1/4, Section 32, T6N, RI 1 W, S.M, consisting of 150 square feet, more or less (the Lease), hereby assigns all of her right, title, and interest in that lease to Alaska Realty Group, Inc. and subject to all the conditions and terms contained in the Lease. Assignee hereby assumes and agrees to perform all duties and obligations required of Lessee by the Lease and to pay all outstanding 'liabilities and obligations which may be due and owing, or may have been due and owing, prior to the effective date of this Assignment and Assumption of Lease. LESSEE /ASSIGNOR KATHY E. CHIRCOP: Assignment And Assumption Of Lease Agreement airport /Chi¢op /ASSienLrnse21 100310 tc athy E. Chircop ASSIGNEE ALASKA REALTY GROUP, INC.: Kathy E. Chircop President Page I of3 STATE OF ALASKA )ss THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that the foregoing document was acknowledged before me this t� day of Oc q 0 1 0 by Kathy E. Chircop. CuBB R y Notary Public for Alaska Ki s 'to, 'to, tie. rt My Commission Expires: we b STATE OF ALASKA THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that on this Li day of October, POc 0, h of foregoing instrument was acknowledged before the by Kath I Realty Group Inc.. an Alaska corporation, on behalf of the corporation. )ss occuGidl rte TAFtV... fJ 4 .e tss i Crdcl R'T TO ASSICNEIv1IvT -•�•7rorb�t The City of Kenai hereby consents to the assignment of the above referenced lease from }Cathy-' E. Chircop to Alaska Realty Group, Inc. Lessor's consent to assignment shall not be deemed to be a consent to any further or subsequent assignment. CITY OF ICENAI Assignment And Assumption Of Lease Agreement airgoriChireop /AssienLease2I I 005 ID Notary Public for Aka .My Commission. Expires: By: Rick R. Koch City Manager fl Page 2 of 3 STA_ 1'E OF ALASKA. )ss THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this day of October, 2010, by Rick Koch, City Manager of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Approved. as to form. IL k Kr:sta S. Stearns City Attorney Return to: City of Kenai 210 Fidaigo .Ave. Kenai, AK 99611 Assignment And Assumption Of Lease Agreement oirponA'hircop /AssienLease2I 100510 Notary Public for Alaska Iviy Commission Expires: Page 3 of 3 Alaskan Region Airport Certification Cert Bulletin Issued Nov 3, 2010 FAA, AK Region, Airports Division Airport Certification Staff, AAL -605 222 West 7 Avenue, #14 Anchorage, Alaska 99513 (907) 271- 3815, (907) 271 -2851 FAX We are sending this bulletin to all towered Airport Operators within the State of Alaska. SUBJECT: Reduction of Runway Incursions in Alaska, FY 2011 A runway incursion is any unauthorized intrusion onto a runway, regardless of whether or not an aircraft presents a potential conflict. This is an international standard, defined by ICAO and adopted by FAA in 2008. BACKGROUND: The reduction in the number and the severity of runway incursions is one of the FAA's top priorities. Every year, the FAA conducts hundreds of safety seminars across the nation to encourage safe practices on our airports. OBSERVATIONS: Within the State of Alaska there have been no recorded surface incidents or runway incursions for fiscal year 2011. The regional average across the nation is 6 per region during this timeframe. You are commended for this impressive and safety oriented approach to the new fiscal year. Now that we are entering our winter season we are asking that you continue to focus on situational awareness, driver training, runway safety, and clear /concise communication procedures. Keep up the good work! If you have any questions, contact David Wahto, Airport Certification Inspector at 271- 3815, david.g.wahto ©faa.gov Municipal i .Airport Airport Projects: enai Airport Manager's Report For October 2010 Apron Rehabilitation: The Contractor is shutting down for the winter. The apron was opened up in its entirety on Monday, October 11. The Contractor will return in the spring for runway painting, miscellaneous paving projects, etc. Float Plane Basin Facility Improvement Project: The Phase 1 Design process will be performed over the winter by Wince- Corthell- Bryson. Master Plan City Administration will be meeting on Thursday, October 14, to discuss the process. Annual Snow Removal Operations Meeting: All airports subject to icing conditions or annual snowfall of 6 inches or more are required by part 139 to have a Snow and Ice Control Committee and a written Snow and Ice Control Plan that focuses on topics improving operational safety. A plan requirement is an annual preseason planning meeting to address needs of airport users and improve runway safety and communications between various offices involved or impacted by a storm event. All tenants and users are invited to this meeting at 8:30a.m. on Thursday, October 14 in Council Chambers. Lease Lot Inspections: The Airport Manager and Assistant to the City Manager are inspecting lease lots inside the perimeter fence in accordance with grant assurances and lease compli Thank to Kenai Aviation, R Id But and A Maintenance c a.. `y you 0 K a. a wiu Butler, an Aram ivr accommodating us on Monday, October 11. Letters will be sent notifying tenants of any noncompliance lease issues when all the inspections are complete. Airport Emergency Control Plan (AECP): An Airport Emergency Plan Advisory Circular issued on June 19, 2009 required all part 139 airports to revise their existing Airport Emergency Control Plans (AECP) based on the new standards and submit to the FAA by June 19, 2010. The FAA recognized this effort as a significant workload for certificate holders. Based on recommendations from FAA Airport Certification Inspectors the deadline was extended to December 31, 2010 and a grant was secured under the FAA Airport Improvement Program for the re- write. The Airport Manager and Fire Chief are working very closely with DOWLHKM and expect to have the Airport's rewrite completed by December 31, 2010. New Air Traffic Manager: Shahid Gill (likes to be called "Gill is the new Air Traffic Manager in the Kenai Tower. He has worked in the lower 48 for SERCO; but most recently came from Dubai. Airport Administrative Assistant Lori Holleman, Administrative Assistant, at the Airport is retiring. Her last day will be Friday, October 29. Please stop by and wish her well. The vacancy will be advertised the end of October. 2010 -10 Municipal Airport Airport Projects: Apron Rehabilitation: Project is shut down for winter. Float Plane Basin Facility Improvement Protect: The Phase 1 Design process is continuing. Master Plan City Administration will be meeting with the FAA on December 1 to develop a work scope for this plan. Car Rental Concession Agreements These agreements expire on December 31, 2010. City Manager and Airport Manager met with representatives from the car rental agencies to review the bid process. Bid documents are being reviewed and prepared to bid out the first of December. Winter Storm The airport received many compliments from the airlines on the excellent snow plowing /sanding services they received during the recent winter storm. There were no flight delays or cancellations due to unsafe operating conditions. Airport Administrative Assistant Position Vacancy The position was advertised and thirty (30) applications were picked up on Monday, November 8. Airport Administration is screening the applications and anticipates interviewing applicants the week of November 22. Out of State The Airport will out of state November 14 through vut GI .�itaic lile n pGt n Manager VJII{ be Gui 01 &t a2 Sunday, iv0'velmucl i-r iniGUgil Saturday, November 20. I will return to work on Monday, November 22. T'he/Kena- &A(.vportStaff wo-u1d' Lace/ to- wt Yveveryonea safe nd'happy Tha.+nlostOvin f{oUd.ay! 2010 -10 ftiec(yg he/ KENAI, ALASKA M attachment "Village with a Past, Cc 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907- 283 -7535 FAX: 907 283 -3014 If you have any questions, please contact me at your convenience. TO: City Council Airport Commission FROM: Rick Koch DATE: November 30, 2010 SUBJECT: Kenai Municipal Airport Supplemental Planning. Assessment, Status of Implementation with a Future 1992 The purpose of this correspondence is to submit for your review a status report identifying actions which were recommended by the consultant in the "Kenai Municipal Airport Supplemental Planning Assessment —Phase 2 Report." The consultant recommended the Kenai Municipal Airport (hereafter "Airport undertake fifty (50) specific actions. The Airport adopted forty -five (45) of the consultant's recommendations, several with minor amendments. Five (5) of the consultant's recommendations were not adopted as they were determined to be impracticable or would have instituted management changes deemed to be not in the best interest of the Airport. Attached is a spreadsheet identifying, and providing the status of, each of the consultant's recommendations. As all of the accepted recommendations have either been completed, or are on -going maintenance items, there will be no further status reports to the City Council or Airport Commission regarding the Kenai Municipal Airport Supplemental Planning Assessment. Appendix B /Pages 9 -12 Figure 11 C /Page 4 l atnSd 6 sated /8 B /Pages 3 -5 I Figure 12 B /Page 5 Figure! 2 B /Pages 5 -6 Figure 3 B /Pages 6 -9 Figure 5 Ph 1 Report Pages 18 -33 Fi ure 11 31,`ll satn6id bl sa /9 'Reviewed Annually I Not in Report Not in Report I Admin. Schedule For Implementation ataldwoQ ataldwoQ ataldwoQ ataldwoQ ataldwoQ ataldwoQ 1 Complete ataldwoQ ataldwoQ tied() ataldwoQ I Does Admin. Recommend Implementation Y/N C A L In- Process Responsibility City Attorney taeeuev podtiv 'Airport Manager Airport Manager!, Airport Manager Airport Manager Airport Manager !Airport Manager !Airport Manager 1 City Manager tauusld lttO Consultant Recommended Action Adopt an ordinance to establish the Airport Reserve and prohibit sale of lands within the reserve Update Airport Layout Plan (ALP) to include larger terminal area apron Update ALP to include larger terminal area Update ALP to include relocated Building Restriction 1 'Line (BRL) and consolidated lease lots 'Update ALP to include Northeast Airpark Update ALP to include relocated gravel strip, alternative 2 Update ALP to widen the floatplane water lane and extend it to the north Update ALP to include airport reserve and and use plan Amend the capital improvement program to include recommendations from the Phase 1 and 2 reports 1 Request FAA release of Airport land outside the Airport Reserve !Complete upgrades to the City's GIS for the airport Consultant Recommended Schedule Land Use Plan I 1st Quarter 06. 1st Quarter 06 1 sl Quarter 06 1st Quarter 06 1st Quarter 06 1st Quarter 06 1st Quarter 06 90 tapenQ is l 1st Quarter 06 I 1st Quarter 06 1st Quarter 06 Z III L_7] 8 6 Of I 11 czd 0 0 N N CA 0 o rt L e c i 4 z H 0 p cv W cep C 4 uL Appendix Page/Figure C /Page 5 C /Pages 16 -18 Not in Report C /Pages 4 -5 L gseSedl0 I 9 abed/0 O L-L se6ad /O C /Pages 11 -12 D1 /Pages 10 -12 C /Page 14 C /Pages 14 -15 1 C /Page 15 I I S l abed /O C /pages 12 -13 I C /page 15 I C /page 16 I C/pages 5 -7 Admin. Schedule For Implementation alaldwoQ 9UON LIOZ GOON alaldwoQ Complete. I alaldwoQ aUON alaldwoQ I eedwoo Feb -07 alaldwoQ Complete alaldwo0 alaldwoQ alaldwoQ oes Admin. Recommend Implementation Y/N Z Z L Re -zone As Required N/A alaldwoQ N N A A I A N A Responsibility rehareoj Alp 011issv City Manager City Attorney City Attorney AauJ011y Al!O City Attorney I Aaw ia6eueW Alp Aawopy Alp Aawo Aawotly Al!Q City Attorney I City Planner City Attorney I City Attorney Asst to the City Manager Consultant Recommended Actio Terminate submittal of airport appraisals to the FAA for approval Transition to a reconstituted Airport Commission with more direct authority over the airport Adopt revised /updated airport regulations Obtain exemption from Borough platting requirements for Airport Reserve Lands Establish new method of setting and adjusting and rental rates based on airport-wide appraisal conducted every 5 years Delete the fixed 6 percent annual lease rate Set new lease term guidelines Enabling incentives to encourage private development of airport land J I Allow the City to require lease applicants to provide a business plan and evidence of financial ability ,Protect the City from environmental liability Modify the rights of a mortgage and sub lessee under ',a lease ,Update insurance requirements 'Adopt an "Airport' zoning classification to cover all ',airport reserve lands Update the City's land lease form Prepare a summary of KMC provisions applicable to airport tenants ("minimum standards Complete airport-wide appraisal and implement new ',land rental rates Consultant Recommended Schedule Property Management November 05 1st Quarter 06 2nd Quarter 08 I 1st Quarter 06 90 iapeno is l 1 1st Quarter 06 I e r 1 st Quarter 06 I 1st Quarter 06I 1st Quarter 06 1st Quarter 06 1st Quarter 06 1st Quarter 06 90 Jepen0 is L 90 Je Jen0 416 I 2nd Quarter 06 2nd Quarter 06 4th Quarter 06 Zl El I in 1 9l O I Ll Teri- F61- 0 N I lZ I 1 IezI bZ 1931 9Z LZ O cep o o r®I $a 4 J E H E o WM F WW t\11 6 W e H r` p S P cen r PAGE 2 OF 5 amowabed xipuaddb D1 /Pages 8 -9 D1 /Page 8 D3 /Page 41 D1 /Pages 10 -12 D1 /Page 12 D2 /Pages 4 -5 D2 /Pages 5 -6 g ebedzC7 D2 /Page 6 D2/Page 7 8 L a Admin. Schedule For Implementation ataldwoD alaldwoD ataldwoD Case -by -Case Consideration Complete Olg ad ataldwoD Complete alaldwoD month -to -month Does Admin. Recommend Implementation Y/N A A N/A alaldwoD i i z Responsibility Finance Director Finance Director Finance Director Airport Manager, Finance Director Airport Manager Asst to Airport Manager Asst to Airport Manager Asst to Airport Manager Ass't to Airport Manager A ss't to Airport Manager Consultant Recommended Action Revise KMC to eliminate unnecessary restrictions on use of airport revenues and land sale proceeds Revise KMC to combine three existing airport funds into a single airport enterprise fund Revise KMC to include a less restrictive investment policy for airport cash balances Consider adopting policies to lease rather than sell Airport Land (outside of airport reserve), and using a portion of Airport cash balances to develop revenue producing capital investments Draft a new airline operating agreement and terminal '..building lease to reflect formula based rates and other 'common industry practices Modify rental car concession agreements Modify restaurant concession agreement Modify lounge lease Modify travel agency concession agreement Modify advertising concession agreement Consultant Recommended Schedule Financial Plan 90 JepenJ 1st. 1st Quarter 06 I 1st Quarter 06 1st Quarter 06 Prior to expiration of current lease Prior to expiration of current agreement Prior to expiration of current agreement Prior to expiration of current lease Prior to expiration of current agreement Prior to expiration of current agreement I a Z 6Z I OE, CO CO CO N CO 0 cop con 0 cip 0 N a x w fl■ w cr cr w 0 Appendix Page/Figure D2 /Page 9 D3 /Pages 41 -42 r b-Lb sabed /EQ D3 /Page 42 D3 /Pages 42 -44 I— D3/Page 42 A /Page 6 Admin. Schedule For Implementation alaldwoQ alaldwoQ ajar' woo alaldwoQ alaldwoQ alaldwoQ alaldwoQ alaldwoQ Does admin. Recommend Implementation Y/N A As amended Complete Y/N Responsibility Airport Manager Finance Director Airport Manager Finance Director Airport Manager Airport Manager Finance Director Airport Manager Airport Manager City Council Finance Director Consultant Recommended Action Modify public parking fees Establish direct and indirect cost centers within the Airport Enterprise Fund and implement cost accounting allocation procedures Calculate formula -based airline landing fees and terminal rent to be adjusted annually Increase landing fees by ordinance Negotiate airline operating agreement and terminal building lease and implement formula -based rate structure Revise the aviation activity report to include aircraft landing weight Adopt the Financial Plan and acknowledge the necessity of improving airport revenues /costs to mitigate the projected exhaustion of airport cash balances in the long -term future Finalize evaluation of airport costs allocation and airport revenues =Consultant Schedule 1st Quarter 06 3rd Quarter 06 l 3rd Quarter 06 1 1st Quarter 06 Prior to expiration current lease 90 Julien() 15 1st Quarter 06 1st Quarter 06 0) m O a Lt N 1 EOI 0 Cot con 0 coo cr 1 ,NAI MUNICIPAL AIRPORT SUPPLEMENT/ PAGE 4 OF 5 0 0 Z E 0 0 0 e 0 0. CC N 0 N _c o O m N C N E c ro CC c o O co, E E 0 0 U cc ro O a 0 0 m c 0 ro CL in 3 o 0 ff (o C m 0 m c a in 0 0 E 0 U T 0 0 c 2 U 0 0 O 0 c O U as _Td U c o .0 _c t6 c ro 0 E o cL LT) 0 2 ERA GRANT Change KENAI Combined Month AVIATION AVIATION Total 2009 from AVIATION Month Total 2009 Janua February 4,466 1,797 6,263 6,824 -561 129 6,392 4,171 1,805 5,976 5,971 5 110 6,086 March 4,787 2,023 6,810 6.029 781 116 6,926 April Ma Jul 4,366 2,018 6,384 5,804 580 126 6,510 4,556 1,922 6,478 6.611 -133 198 6,676 4.879 2,126 7,005 148 202 7,207 7,825 2,467 10,292 680 270 10,562 Au. us t 7,271 2,582 9,853 9,153 700 246 10,099 Se.tember 5,148 1,961 7,109 7,379 -270 224 7,553 October 5,555 2,058 7,613 6,919 694 185 7,798 November 6,714 December 6,260 Totals 53,024 20,759 73,783 84.133 1,930 1,806 75,809 enai 27.03% GRANT 2,058 evs.arnicnpat sanrp®rt 72.97% October 2010 7,613 October 2009/2010 515,024 516,883 2010/2011 25000 22500 20000 12500 10000 7500 5000 2500 0 Terminal Vehicle Parking Revenues 1 Vehicle Parking Revenues Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun R FY10 „1 FY11 Mar: Bondurant From: Cc: Subject: Carol L. Freas, City Clerk City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 Phone: (907) 283 -8231 Fax: (907) 283-5068 Carol Freas [cfreas @ci.kenai.ak.us] Tuesday, October 19, 2010 4:18 PM barry_eldridge @yahoo.com; hvsmalley @yahoo.com; cpajoe @altrogco.com; mboyle @alaska.com; kenaimayor10 @msn.com; bob @molloyforcouncil.com; Ryan Marquis terry @bookeyforkenai.com; briangabriel @acsalaska.net.; Mary Bondurant; Rick Koch; Lorene Hall November Airport Commission Meeting Cancellation Good afternoon, At its October 14 meeting, the Airport Commission requested its November meeting be cancelled due to it fall on November 11 (a City holiday) and because there was no current new business for the agenda. Pursuant to the Kenai City Council Po /icy for Commission, Committee, Board and Council on Aging Meetings and Work Sessions, 1 have cancelled the meeting. The next regular meeting is scheduled for December 9, 2010. If you have any questions with regard to the cancellation, please contact me. Thanks! AIRPORT COMMISSION MEETING DECEMBER 9, 2010 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http://www.ci.kenai.ak.us ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion /Recommendation Float Plane Basin Development Alternatives ITEM 6: NEW BUSINESS a. Discussion FY12 Airport Budget b. Discussion /Recommendation Terminal Side Ramp "Welcome Sign" The public is invited to attend and participate. Additional information is available through the City Clerk's office at 210 Fidalgo Avenue, or visit our website at http: /Iwww.ci.kenai.ak.us. Carol L. Freas, City Clerk D PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, 1 STATE OF ALASKA ss: Denise Reece being first duly sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legals of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Airport Commission PO #93524 a printed copy of which is hereto annexed was published in said paper one each and every day for one successive and consecutive day in the issues on the following dates: December 7, 2010 X SUBSCRIBED AND SWORN to me before this 7th day of o 7010 NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26- Aug -12 mm Budget lion —Ter goat Sarin Developm ttend and p Additional info m3atron is Clerk's office'.: at 210 Fidalgo Avenue, or visit our Carol L Freas, City clerlt 0516/211 AIRPORT COMMISSION ME. DECEMBER 9, 2010 7:00 P.M. KEtNAI CITYCOUNCIL CNANI i ii J /www.c' kehai.ak. ITEM 4: PERSONS SCHEDULED TO BE NEAR ITEM St OLD BUSINESS a, Discussion/Recommendation Alternatives ITEM 6: NEW BUSINESS a Discussion FY12 Airport b, Discussion /Recommenda The pubhc (s ava fable through th e wehsite at http: /www,a.kenai akw