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HomeMy WebLinkAbout2011-02-10 Airport Commission PacketAGENDA ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY January 13, 2011. ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion /Recommendation Ma Pa Alaskan Treasures Purchase Request ITEM 6: NEW BUSINESS a. Discussion /Recommendation 1.1 Annual Kenai Peninsula Air Fair Poster ITEM 7: REPORT a. Commission Chair b. Airport Manager c. City Council Liaison KENAI AIRPORT COMMISSION FEBRUARY 10, 2011 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION a. March 7, 2011 (Identify if you are requesting an excused absence.) ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM 11: INFORMATION ITEMS ITEM 12: a. Kenai City Council Action Agendas of January 19 and February 2, 2011. b. Airport Manager's Report January 2011 c. January 2011 Enplanement d. FAA Alaska Aviation Fact Sheet e. Special Use Permit Buccaneer Alaska Operations, LLC ADJOURNMENT PLEASE CONTACT U5 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: ELECTION OF CHAIR AND VICE CHAIR ITEM 4: APPROVAL OF MEETING SUMMARY December 9, 2010 ITEM 5: PERSONS SCHEDULED TO BE HEARD ITEM 6: OLD BUSINESS ITEM 7: NEW BUSINESS a. Discussion /Recommendation Zoning Setbacks Airport Properties ITEM 8: REPORT a. Commission Chair b. Airport Manager c. City Council Liaison KENAI AIRPORT COMMISSION JANUARY 13, 2011 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. ITEM 9: NEXT MEETING ATTENDANCE NOTIFICATION a. February 10, 2011 ITEM 10: COMMISSIONER COMMENTS AND QUESTIONS ITEM 11: PERSONS NOT SCHEDULED TO BE HEARD ITEM 12: INFORMATION ITEMS a. Kenai City Council Meeting Action Agendas for December 15, 2010 and January 5, 2011. b. Airport Endowment Fund Investment Review c. Airport Manager's Report December 2010 d. December 2010 Enplanement e. Ordinance No. 2524 -2010 and Ordinance No. 2525 -2010 f. Resolution No. 2011 -01 and Resolution No. 2011 -03 g. Resolution No. 2011 -04 ITEM 13: ADJOURNMENT MEETING SUMMARY ITEM 1: CALL TO ORDER AND ROLL CALL Chair Knackstedt called the meeting to order at approximately 7:00 p.m. Roll was confirmed as follows: Commissioners present: Commissioners absent: Staff /Council Liaison present: A quorum was present. J. Zirul, J. Bielefeld, H. Knackstedt, G. Feeken and E. Mayer L. Porter and R. Rogers (excused) Airport Manager M. Bondurant and Council Member R. Marquis VOTE: There were no objections. SO ORDERED. ITEM 3: ELECTION OF CHAIR AND VICE CHAIR MOTION: Commissioner Zirul MOVED to nominate Henry Knackstedt as Chair and Commissioner Feeken SECONDED the motion. KENAI AIRPORT COMMISSION JANUARY 13, 2011 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING ITEM 2: AGENDA APPROVAL MOTION: Commissioner Zirul MOVED to approve the agenda as presented and Commissioner Feeken SECONDED the motion. There were no further nominations. VOTE: There were no objections. SO ORDERED. MOTION: Commissioner Bielefeld MOVED to nominate Jim Zirul as Vice Chair and Commissioner Mayer SECONDED the motion. There were no further nominations. VOTE: There were no objections. SO ORDERED. ITEM 4: MOTION: VOTE: MOTION: APPROVAL OF MEETING SUMMARY December 9, 2010 Commissioner Bielefeld MOVED to approve the meeting summary of December 9, 2010 and Commissioner Feeken SECONDED the motion. There were no objections. SO ORDERED. ITEM 5: PERSONS SCHEDULED TO BE HEARD None ITEM 6: OLD BUSINESS None ITEM 7: NEW BUSINESS 7 -a. Discussion /Recommendation Zoning Setbacks Airport Properties Marilyn Kebschull, City Planner Reviewed her memorandum (included in the packet) which discussed setbacks and offered clarification to Commissioner's questions. Kebschull also reported the City's Comprehensive Plan update work would begin soon and encouraged the Airport Commission to attend the work sessions and participate in the process as Airport lands would be included in the discussions. Commission comments included: Support of the setback process as it would expedite the zoning exemption. Support for the setback process. Commissioner Zirul MOVED to recommend accepting the paragraph written in the memorandum be added to Kenai Municipal Code, Section 14.24.020. Commissioner Feeken SECONDED the motion. VOTE: There were no objections. SO ORDERED. ITEM 8: REPORT AIRPORT COMMISSION MEETING JANUARY 13, 2011 PAGE 2 8 -a. Commission Chair Chair Knackstedt noted the following: Encouraged Commission members to attend the Open Meetings Act Training to be held on January 24 beginning at 6:00 p.m. in the Council Chambers. Notifications were forwarded to Commission members and the City Clerk requested those who planned to attend to RSVP to her. Agreed with and liked the purchase of properties on the west side of the Airport and, at the appropriate time, would want those properties (Cox and Hall) moved in the Reserve. 8 -b. Airport Manager Airport Manager Bondurant noted the following: Distributed copies of the City Lands booklet. Requested ideas for the Kenai Peninsula Air Faire poster. Airport Administration was working on a new car rental agreement and Request for Proposals for security at the airport. The eighth revision of the ECP was received. If a response was received from the FAA, she hoped to have the City Manager's recommendation on the Float Plane Basin development at the February meeting. 8 -c. City Council Liaison Council Member Marquis reviewed the action agendas of the December 19, 2010 and January 5, 2011 Council meetings which were included in the packet. He noted a work session would be held on February 15 to review the Dip Net Report and another work session on February 16 to review the utility rate study. ITEM 9: NEXT MEETING ATTENDANCE NOTIFICATION 9 -a. February 10, 2011 There were no notices of planned absences. ITEM 10: COMMISSIONER COMMENTS AND QUESTIONS Zirul Encouraged the return of the ABC dog as ravens had torn his wing covers. Knackstedt Encouraged the development of additional tie -downs close to the fence and the addition of electric tie downs. ITEM 11: PERSONS NOT SCHEDULED TO BE HEARD Marilyn Kebschull, City Planner Informed the Commission about Buccaneer drilling for natural gas on Airport property off of Marathon Road. Airport Manager Bondurant added it could turn into a long -term land lease from a Special Use Permit to drill for 30 -45 days. More information would be in the February meeting packet. ITEM 12: INFORMATION ITEMS AIRPORT COMMISSION MEETING JANUARY 13, 2011 PAGE 3 12 -a. Kenai City Council Meeting Action Agendas for December 15, 2010 and January 5, 2011. 12 -b. Airport Endowment Fund Investment Review 12 -c. Airport Manager's Report December 2010 12 -d. December 2010 Enplanement 12 -e. Ordinance No. 2524 -2010 and Ordinance No. 2525 -2010 12 -f. Resolution No. 2011 -01 and Resolution No. 2011 -03 12 -g. Resolution No. 2011 -04 ITEM 13: ADJOURNMENT MOTION: Commissioner Zirul MOVED to adjourn and Commissioner Feeken SECONDED the motion. VOTE: There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at approximately 8:24 p.m. Meeting summary prepared and submitted by: Carol L. Freas, City Clerk AIRPORT COMMISSION MEETING JANUARY 13, 2011 PAGE 4 the city al/ KENAIALASKA MEMO: Tillage with a Past, Gi ligel 5Q• 210 Fidalgo Avenue, Kenai, Alas'. Telephone: 907 283 -7535 FAX: 907 283 -3014 TO: Airport Commission FROM: Rick Koch DATE: February 3, 2011 SUBJECT: Lot 2, Block 1, Gusty Subdivision, Request to Purchase The purpose of this correspondence is to discuss a request from Ma Pa Alaskan Treasures, Inc. (Lessee) to purchase the above referenced property they currently lease from the Kenai Municipal Airport. In July of 2010 I came before you and discussed several airport properties that leaseholders had requested to purchase. At that time I informed you that it was Administration's position that even though the Lessee does not have an absolute right to purchase the property they currently lease, the record contains written communications from the City /Airport to the Lessee stating they could purchase the property. The current Lessee assumed the lease on January 18, 2006. On September 16, 2006, substantial modifications were made to the City code as it applied to airport leases. These modifications eliminated the right for a lessee to purchase leased property following the completion of development of improvements. On August 20, 1970 the FAA executed a Deed of Release which allowed for the sale of the property, subject to certain restrictions as shown on the attached March 29, 2010 memo from Cunningham to Koch. Administration recommends moving forward with the sale of the property to the Lessee, eiven certain restrictions, such as the dedication of an avigation easement, or a deed restriction, to the Airport /City which limits the height of improvements on the property to the existing condition. Based on the record of communication with the Lessee in which the Airport /City told the Lessee 1992 it had the right to purchase the property, Administration respectfully requests the Airport Commission affirmatively consider a motion to sell Lot 2, Block 2, Gusty Subdivision to Ma Pa Alaskan Treasures, Inc., for a price to be determined through appraisal. Thank you for your attention in this matter. attachment then /of KENAI, ALASKA MEMO: "ViUfaye with a Past, 210 Fidalgo Avenue, Kenai, Telephone: 907 283 -7535 Rick Koch, City Manager Christine Cunningham, Assistant to City Manager March 29, 2010 TO: FROM: DATE: SUBJECT: Lot 2, Block 1, Gusty Subdivision Ma Pa Alaskan Treasures, Inc. Lease Git Alaska 99611 7794 FAX: 907 283 -3014 The purpose of this correspondence is to provide the requested timeline and comprehensive background in regard to the terminated land sale application made by the Lessee for the above referenced property, specifically with regard to Code changes affecting the Lessee's ability to purchase. 12/01/1963 Quitclaim Deed from FAA to the City of Kenai for certain properties of which the subject property is included. 06/27/1966 Ordinance No. 99 creates the "Airport Land System" and addresses the lease and sale of lands of such Airport Land System. The rights of lessees and /or rules and regulations governing the administration of City -owned lands are not addressed. 03/18/1970 Resolution 70 -5 dedicates the proceeds from sale or lease of [described] lands for Kenai Airport purposes. The subject property is included within the property description in the resolution. 08/20/1970 Deed of Release from FAA releases the property from the conditions, reservations and restrictions contained in the Quitclaim Deed with the following covenants: "(1) to use the revenues received from the sale or lease exclusively for the development, improvement, operation of the Kenai Airport; (2) to restrict the height of structures, objects of natural growth and other obstacles on the hereinafter described real property to a height of not more than 242 feet above mean sea level; (3) to prevent any use of the real property ...which would interfere with the landing or taking off of '111r 1992 08/20/1970 06/06/1971 Property described as West 1/2 of Lot 2 Block 1 assigned to Ray Cason under the terms of the Lease 04/02/1975 11/06/1976 09/22/1977 01/24/1978 07/07/1978 aircraft at the Kenai Municipal Airport or otherwise constitute an airport hazard." The City enters into a lease with James Adkins and Edward Ferguson for the referenced property and two additional lots which are assigned separately at a later date. The term of the lease is for 55 years, commencing 08/20/1970 and expiring 06/30/2025. The lease does not grant the Lessee the right to purchase. Ordinance No. 258 -75 defines the rules and regulations governing the administration of City -owned Lands. Section 5 states "the filing of an application for a lease shall give the applicant no right to a lease or to the use of the land applied for." Section 9 states "The term of any given lease shall depend upon the durability of the proposed use, the amount of the investment in improvement proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment." Section 38 states "All leases or sales of property shall be made subject to restrictions and reservations in the patent, deed or other instrument under which the City holds." Ordinance No. 312 -76 establishes procedures for the sale of City -owned lands, adding Chapter 20, Lands, a new Article IV, which reads in part as follows: Section 1: Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands are no longer required for municipal purposes." Section 3: "...Public sale shall be by auction or competitive bid." Section 4: "The parcels of land to be sold shall be reviewed by the Planning Commission which shall make recommendations concerning desirable uses of the property, including projected need, if any, of the land for present or future recreational or other public use." Section 5: "Notice of sale shall be published in a newspaper of general circulation within the City once each week for two successive weeks not less than thirty days prior to the date of sale." Property described as East 1/2 of Lot 2 Block 1 assigned to Ray Cason under the terms of the Lease. Assignment for Security Purposes to Alaska Statebank for West'/ of Lot 2 Ordinance 400 -78 establishes policies and procedures relative to the lease of City Airport Lands. 07/27/1978 09/02/1978 09/21/1978 11/04/1978 02/17/1979 08/13/1980 Section 1: Ordinance 258 -75 repealed in its entirety and chapters 5 and 10 reenacted into the City -owned Lands title of the Kenai Code. Chapter 5, 21.05.040 states, "The filing of an application for a lease shall give the applicant no right to a lease or to the use of the land applied for." Chapter 10, 21.10.260 states, "All leases or sales or property shall be made subject to restrictions and reservations in the patent, deed or other instrument under which the City holds." Assignment for Security purposes to Alaska Statebank for West 'A of Lot 2 Ordinance 424 -78 amends Ordinance 400 -78 to include provisions regarding termination required to be included in all Airport Land Leases Ordinance 435 -78 amends Ordinance 400 -78 to include an amendment to the five -year redetermination, and a section regarding Rights Prior to Leasing to read, in part, as follows: "The filing of an application for a lease shall give the applicant no right to lease or to the use of the land applied for..." Ordinance 434 -78 amends Ordinance 400 -78, section regarding five year redetermination Ordinance 456 -78 amends Ordinance 312 -76 to provide for written notice to former owners of particular parcels retained for public purpose and adding a new section 9 to Ordinance 312 -76 pertaining to City -owned property deeded to the City by virtue of tax foreclosure. Deed of Trust to State of Alaska, Division of Loans and First National Bank of Anchorage for Lot 2, Block 1. 02/07/1981 Ordinance No. 612 -80 repeals KMC 22.05.060 and amends KMC 21, KMC 22.5 and KMC 7.3 to provide for the sale of City Lands (not devoted to airport uses). The re enacted section 3 (a) reads, "All lands, except tax foreclosed lands, to which the City of Kenai holds title which are not restricted from sale by the Deed of Conveyance to the City or which have been released from such restrictions, which the City Council has determined are not required for a public purpose shall be listed for sale by the City Manager, except that lands which have been leased and have substantial improvements constructed thereon shall not be sold unless the Lessee has made a written request to the City to place the land for sale." 11/07/1981 Ordinance No. 711 -81 allows sale of leased lands to lessees under a contract sale to expedite and facilitate the sale of City lands to a lessee, however, it does not give existing lessees a specific right to purchase or preference right. 01/02/1982 Ordinance No. 684 -81 limits application of 21.10.130 (b), KMC 21.10.130(c) and KMC 21.10.130(d) to leases of and on the airport and restricted to aeronautical related uses. This ordinance relates to the 50% cap and acknowledges the City's obligation to provide the Airport Fund with sums which the 50% cap causes the Airport Fund to lose. 10/17/1983 02/04/1984 04/21/1984 06/16/1984 12/21/1984 02/04/1988 06/13/1988 06/14/1990 01/01/1993 Notice of Default and Sale, noticing that Ray Cason has breached the obligation secured by the Deed of Trust for property described as Lot 2, Block 1 due to failure to pay according to the terms of said obligation. Ordinance No. 910 -83 amends Title 22 by changing procedures relative to the sale of City Lands. Previously, KMC 22.05.030(a) (Ordinance 612 -80) specified that only the lessee of land with substantial improvements constructed thereon may initiate the sale of said land. Ord. No. 910 -83 states, "Administration believes that this protection should be provided to all lessees." A Memo dated 12/12/1983 from the Finance Director, Charles Brown, states, "[KMC 22.05.040(c)] says that in order to negotiate a sale of land, the land must be 'not leased land upon which substantial improvements have been made.' Everybody in the City Administration who was here at the time this section was written remembers the City Council instructing the City Attorney to make it possible for a lessee with a building on his lot to buy the land by negotiated sale. The Ordinance that was adopted really did the opposite." Ordinance No. 910 -83 repealed and re enacted this section. Ordinance No. 917 -84 amends KMC 21.10.060 and 040 to give preference to purchase application over lease applications under specified conditions, as follows, "If an application for the purchase of City -owned lands, previously authorized for sale by the Council, is received by the City prior to the P &Z Commission making an affirmative or negative recommendation to the Council regarding the lease application for the same property, said property shall be offered for sale in accordance with the provisions of the Code." Ordinance No. 932 -84 amends KMC 21.10.060 and adds a new section, KMC 21.10.140 relating to the effective period for a lease application, reducing it from 6 months to 45 days of approval and requiring the execution of the lease agreement within 14 days of mailing. Ordinance No. 994 -84 revises KMC 22.05, to establish requirements governing the sale closing procedures of City lands. Notice of Default, Deed of Trust Foreclosure provides notice of public auction to be held 05/10/1988 Deed of Trust between Thomas Wagoner and Dorothy Wagoner for described leasehold interest. Amendment to Lease references assignment to Thomas H. Wagoner and Dorothy C. Wagoner for referenced property and reflects lease rate renegotiation. Ordinance No. 1575 -93 clarifies the Lessees' right to negotiate the sale of their leased land, at not less than the fair market value, after making substantial developments. The Ordinance states, in part, "It is the desire of the Kenai City Council that leased land may be sold to a lessee for fair market value only after, to the satisfaction of the City Manager, development has been completed as detailed in the development schedule which has been incorporated into the lease agreement.KMC 22,05,040(c) was amended to read as follows: 01/28/1994 10/20/2000 01/18/2006 09/16/2006 05/04/2007 12/03/2008 02/23/2009 02/23/2009 "If the tract of and (airport or otherwise) proposed to be sold is leased and [WHERE THE LEASE SETS FORTH A DEVELOPMENT SCHEDULE], the lessee may, at his request, negotiate the sale of said and at not less than the fair market value. The current lessee obtains this right to negotiate a sale only after, [HE HAS LEASED THE LAND FOR THE TWO -YEAR PERIOD IMMEDIATELY PRECEDING THE SALE OR THE LESSEE HAS] to the satisfaction of the City Manager, [COMPLETED] development has been completed as detailed in the development schedule which has been incorporated into the lease agreement [(THIS CONDITION APPLIES TO AIRPORT LANDS LEASED AFTER JUNE 1, 1986)]. If there is no development schedule, the lessee may purchase the property if there has been substantial improvements as determined by the City Manager." Security Assignment of Lease to First National Bank of Anchorage for Lot 2, Block 1 Ordinance No. 1878 -2000 amends various parts of title 21 and Title 22 for the purpose of updating. Assignment of Lease to Ma Pa Alaskan Treasures, Inc. from Thomas Wagoner. Ordinance No. 2180 -2006 repeals existing land policies and provisions as a result of the City's undertaking of a Supplemental Airport Master Plan process in which a comprehensive review of City policies regarding the use, lease and sale of airport lands was completed. Numerous public hearings were held during the process, including City Council, Airport Commission, Planning and Zoning and the Kenai Economic Development Strategies group to increase public comment and participation. The Ordinance states, in part, "it is in the best interest of the City to create an Airport Reserve and modernize the leasing provisions regarding Airport Reserve land to prohibit land sales within the reserve." Ordinance No. 2219 -2007 amends KMC 21.15.190 by adding a new section allowing a lease applicant to request a contractual right to purchase the leased property at not less than fair market value within twelve months after completion of the developments as detailed in the Lease's development schedule. Email from Kim Howard, Assistant to the City Manager, to Rick Koch, City Manager and Cary Graves, City Attorney, indicating lessee would like to pursue purchasing leased lot. The email reads that lessee was told to "put his intention in writing along with $2,000 good faith deposit... I told the lessee that the sale would be based on fair market value from a new appraisal from the deposit." Land Sale Checklist has following notation for "Ordinance stating property is not required for public purpose: N/A Code prior to 2006 Amendment allowing sale applies" Letter from Ma Pa Alaskan Treasures, Inc. reads, "After our conversation with Kim at City of Kenai, we would like to put in our request to purchase..." The request to purchase includes an enclosed $2,000 check for appraisal on the property. 03/20/2009 City orders appraisal in the amount of $850 from Derry Associates 08/13/2009 Meeting with Mary Bondurant, Airport Manager; Marilyn Kebschull, City Planner; Christine Cunningham, Assistant to City Manager; Cary Graves, City Attorney and Rick Koch, City Manager. A determination was made that, for a lessee to purchase property within the Airport Reserve, the right to purchase had to be contained in the lease. That the lease was entered into prior to the 2006 code change, did not allow for the property to be sold. The City Attorney suggested writing a letter and City Manager authorized refunding the $2,000 good faith deposit. 08/14/2009 Memo from Christine Cunningham, Assistant to City Manager to City Manager, Airport Manager and City Attorney providing background information and states, in part, "Ordinance 2180 -2006 prohibits land sales within the Airport Reserve, although not intending to alter or amend existing leases during their original terms. Although the Lease... was entered into prior to the 2006 Code Revision, the lease does not grant the lessee the right to purchase." 08/20/2009 Letter to Ma Pa Alaskan Treasures, Inc. informing Lessee that property is not available for sale under the City's code and enclosing a check in the amount of $2,000, representing the full amount of the deposit received toward purchase. 10/09/2009 Facsimile Transmittal Letter from Reeves Amodio, LLC. written on behalf of the Lessee reiterating their request to purchase the lot they lease from the City and notifying the City of legal principles that demonstrate that the assertion the land is not available for sale is incorrect. The letter states, in part, "[Ms.] Howard informed the Lovealis that, if they bought Senator Wagoner's interest, they could purchase the lot any time prior to the expiration for the lease in 2025. In reliance on this representation from the City, the Lovealis consummated the deal." The letter also states, "...the lease itself states that the City must give the Lovealis 10 days advance notice of any changes to the rules or regulations governing the property," and asserts, "Since the City did not provide the Lovealis with the required notice, the amendment to the Code in September 2006 is not applicable to the Lovealis." The letter states that the "doctrines of estoppels and quasi estoppel operate to bar the City from refusing the Lovealis request to purchase the property," and further, that, "the City likely waived its right to object to the purchase after it accepted and cashed the Lovealis good faith deposit." 10/12/2009 Memo from Assistant to City Manager to City Manager and City Attorney providing requested background information regarding the terminated land sale application. Memo included the original lease and correspondence regarding the land sale as attachments. 12/12/2009 Letter from Krista Stearns, City Attorney to Tom Amodio in response to 10/09/09 letter states; in part, "The City is not persuaded that it has any legal or other obligation to sell the [property] to Ma Pa Treasures. Neither the lease, nor any course of dealing between the City and Ma Pa Treasures creates any obligation of the City to sell land that, by ordinance, it is prohibited from selling." The letter provides a detailed analysis of the City's position, and states, "[The] lease does not provide any right of a lessee to purchase the leased premises," and states, "the City also disagrees with the analysis regarding estoppels, quai- estoppel, lack of notice, and waiver." It later states, "An unsolicited application to purchase property gives the would -be purchaser no particular rights..." and addresses the allegedly inconsistent positions taken by the City, "include a statement by an employee that Ma Pa Treasures could submit an application to purchase City -owned property and next, the denial of that application based upon City Laws. Neither act is inconsistent with the other." The letter also addresses the argument that Ma Pa Treasures did not have notice of the ordinances, stating, "...the 10 -day notice requirement in sub paragraph 27(a) of the lease does not apply to changes in Ordinances... The lease distinguishes between adoption of 'rules and regulations' and laws, ordinances, or orders of any governmental authority.'" After reviewing the above referenced documents, it appears that the initial acceptance of the Lessee's Application package was based on an interpretation of the City's code to allow for the sale of property if the lease was executed prior to the 2006 Code change. Since the lease does not grant the lessee the specific right to purchase, and the Code did not address land sales at the time the lease was entered into (1970), neither the lease nor the Code granted the lessee any right to purchase. The code defining the rules and regulations for the administration of City -owned lands was adopted in 1975, and does not specifically address land sales. However, as the City developed its land leasing program, procedures were established for the sale of City -owned lands, and in the 1980's several Ordinances addressed the issue of "substantial improvements" on City lands, and addressed the rights of the lessee to initiate sale. In a 1983 Memo from Finance Director, Charles Brown, he states that, "Everybody in the City Administration who was here at the time this section was written remembers the City Council instructing the City Attorney to make it possible for a lessee with a building on his lot to buy the and by negotiated sale." Although the Ordinance accompanying this memo does not have as strong of language regarding the rights of the lessee, it does indicate the intent of the Ordinance. Lessees were able to purchase their leasehold property at the time the lease was assigned to Thomas Wagoner in February 1988. When the lease was subsequently assigned to Ma Pa Alaska Charters in January 2006, the substantial Code changes made that same year were not yet in effect, however the Supplemental Planning Assessment, of which the Code changes were a result, had been in the public process since April, 2004. cc: Krista Stearns, City Attorney ena u Municipal Airport MEMO Please review and bring any suggestions to the meeting. Attachments To: From: Date: Subject: "Sewt g1theigreaterKenai. Peninsular 305 N. WILLOW ST. SUITE 200 KENAI, Al A SKA 99611 TELEPHONE 907-283-7951 FAX 907-283-3737 Airport Commission Mary Bondurant Airport Marla February 3, 2011 11 Annual KPAF Poster The 11 Annual Kenai Peninsula Air Fair is fast approaching. The airport staff is very busy with preparations. Letters outlining sponsorship opportunities have been mailed Advertising Design is in progress for the t -shirt, poster, and postcards. DD Form 2536 Request for Armed Forces Participation has been sent to the Flight Standards office in Anchorage for approval Attached are the past three years air fair posters for your review and comment. We would like to have the poster designed and printed by April 15 this year. This will allow us to promote this event at the Alaska Airmen's Trade Show in Anchorage on April 30 and May 1. Qo jUNE 5th,2o10 PENIN �pth ANNu OCCUPATIONAL HEALTH AND SAFETY SERVICES PUBLICWELCOME *ell:Maslce planes, parts services CROWLEY getmlasualco the city. of KENKV.ASKA Soldotna Airport STATIC DISPLAYS Kenai Airport EAA BREAKFAST BAR QUE PILOT REGISTRATION 1:00 p.m. to 3:00 p.m. 8:00 a.rn. to 11:00 a.m. Military Appreciation Event 2:00 p.m, Kenai Airport FOR INFORMATION CALL (907) 283 -7951 or (907) 262-4672 www.KenaiAirport.com nmsoldotna.maska.net the aye, AFMRI, Soldotna Airport EAA BREAKFAST PILOT REGISTRATION 8:00 a.m. to 11:00 a.m. B OCCUPATIONAL HEALTH AND SAFETY SERVICES PUBLIC WELCOME Military Appreciation Event 2:00 p.m. Kenai Airport gqi CROWLEY Kenai Airport BAR -B -QUE 1:00pm.to3 :00p.m. STATIC DISPLAYS FOR INFORMATION CALL (907) 283 -7951 or (907) 262 -4672 1 Soldotna 4 33.4 Military Ap.otgl Day it pu STATIC Soldotna Airport BREAKFAST AVIATION SVVAPMEET PILOT REGISTRATION 8:00 a.m. to 11:00 a.m. ALASKA FLYING fl A r. lts I I'4 PE NINS gtg, &mud MAY 1 OTH, 2008 OCCUPATIONAL HEALTH "^I'mrma AND SAFETY SERVICES c ALASKA Military Appreciation Event 200 p.m. Kenai Airport LIVE MUSIC! the et, ly■ of KENAI, AtASILA III 6 POKER RUN DISPLAYS Kenai Airport BAR-B-QUE 1:00 p.m. to 3:00 p.m. kf :er t4 A: ANS PSOC't Challenoer CROWLEY FOR INFORMATION CALL (907) 283-7951 or (907) 262-4672 www.KermiAirport.com www.soldotna.alaska.net ITEM A: CALL TO ORDER *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: 1. Frank Arbelovsky Senior Connection /Meals on Wheels ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment limited to 3 minutes per speaker) ITEM D: ACTION AGEN A KENAI CITY COUNCIL REGULAR MEETING JANUARY 19, 2011 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 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.) SCHEDULED PUBLIC COMMENTS (Public comment limited to 1 0 minutes per speaker) 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) 1. PASSED UNANIMOUSLY. Resolution No. 2011 -05 Supporting the Kenaitze Indian Tribe's Dena'ina Health and Wellness Clinic. 2. AMENDED/PASSED UNANIMOUSLY. Resolution No. 2011 06 Approving a Collections Policy for Delinquent Ambulance Bills Owed to the City. Ike 3. PASSED UNANIMOUSLY. OBJECTION TO CONTINUANCE OF LIQUOR LICENSE Alaskalanes, Inc., d /b /a Alaskalanes Bowling Center (License No. 3209) L&M Ventura, Inc., d /b /a Little Ski Mo Driue Inn (License No. 1774) 4 *Liquor License Renewal BPO Elks Lodge #2425 (License No. 368) ITEM E: MINUTES 1. APPROVED. *Regular Meeting of January 5, 2011. ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. APPROVED. Ratification of Bills 2. APPROVED. Approval of Purchase Orders Exceeding $15,000 3. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2527 2011 amending the Kenai Municipal Code, Chapter 14.05, Planning and Zoning Commission, to Add a New Section 14.05.015 Entitled "Appointment to Planning and Zoning Commission" Requiring Public Advertisement and Notice of Vacancies on the Commission, Permitting Any Member of the Council to Nominate a Person for Appointment to the Commission, and Defining the Tenn of Office. 4. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2528 2011 Amending the Kenai Municipal Code to Make Comprehensive Changes to All Rates, Charges, and Fees Imposed by the City in Kenai Municipal Code Titles 3, Animal Control; 4, Uniform Codes; 5, Business and Occupations; 11, Harbor and Harbor Facilities; 14, Planning and Zoning; 15, Private Property; 18, Streets and Sidewalks; 20, Transportation; 21, City Airport and Airport Lands; and 22, General Fund Lands, and to Include Rates, Charges, and Fees in a Fee Schedule Authorized Under KMC 7.15.100 Rather Than in a Code Ordinance, and Making Technical Changes and Corrections. 5. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2529 2011 Amending Chapter 7.30 of the Kenai Municipal Code, "Airport Land Sale Permanent Fund," to Rename the Chapter as "Land Sales Pei ivanent Funds" in Order to Establish Investment Guidelines for Sale Proceeds From the Sale of City Owned, Non -Trust Lands Just as the City Has Established Investment Guidelines for the Airport Land Sale Permanent Fund, and to Make Technical Corrections. 6. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2530 2011 Increasing Estimated Revenues and Appropriations by $31,819 in the Airport Land Sales Permanent Fund and Both Increasing and Decreasing Estimated Revenues in the Airport Fund for Funds Received From the Airport Land Sales Permanent Fund. 7. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2531 2011 Increasing Estimated Revenues and Appropriations in the Kenai Comprehensive Plan Project Fund by $50,000. ITEM H: COMMISSION /COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks Recreation Commission 6. Planning Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Mini -Grant Steering Committee d. Kenai Convention Visitors Bureau e. Reports of KPB Assembly, Legislators and Councils ITEM I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM K: ADDITIONAL PUBLIC COMMENT 1. Citizen Comments (Public comment limited to 5 minutes per speaker) 2. Council Member Comments EXECUTIVE SESSION Concerning a matter that could prejudice the reputation and character of another: City Manager Contract (at the Manager's request). Council met in an executive session to discussing extending City Manager's contract. Motion was passed unanimously to extend the contract for an additional three years. 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 FEBRUARY 2, 2011 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 (X) 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 (Publi comment limited to 10 minutes per speaker) ITEM C: UNSCHEDULED PUBLIC COMMENTS (Public comment ;United to 3 minutes per speaker) ITEM D: PUBLIC HEARINGS (Testimony limited to 3 minutes per speaker. Persons may give their time over to a nother 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. 2528 -2011 Amending the Kenai Municipal Code to Make Comprehensive Changes to All Rates, Charges, and Fees Imposed by the City in Kenai Municipal Code Titles 3, Animal Control; 4, Uniform Codes; 5, Business and Occupations; 11, Harbor and Harbor Facilities; 14, Planning and Zoning; 15, Private Property; 18, Streets and Sidewalks; 20, Transportation; 21, City Airport and Airport Lands; and 22, General Fund Lands, and to Include Rates, Charges, and Fees in a Fee Schedule Authorized Under KMC 7.15.100 Rather Than in a Code Ordinance, and Making Technical Changes and Corrections. 2. PASSED UNANIMOUSLY. Ordinance No. 2529 -2011 Amending Chapter 7.30 of the Kenai Municipal Code, "Airport Land Sale Permanent Fund," to Rename the Chapter as "Land Sales Permanent Funds" in Order to Establish Investment Guidelines for Sale Proceeds From the Sale of City Owned, Non -Trust Lands Just as the City Has Established Investment Guidelines for the Airport Land Sale Permanent Fund, and to Make Technical Corrections. 3. PASSED UNANIMOUSLY. Ordinance No. 2530 -2011 Increasing Estimated Revenues and Appropriations by S31,819 in the Airport Land Sales Permanent Fund and Both Increasing and Decreasing Estimated Revenues in the Airport Fund for Funds Received From the Airport Land Sales Permanent Fund. 4. PASSED UNANIMOUSLY. Ordinance No. 2531 -2011 Increasing Estimated Revenues and Appropriations in the Kenai Comprehensive Plan Project Fund by 550,000. 5. PASSED UNANIMOUSLY. Resolution No. 2011 -07 Supporting a Proposed Project by Escopeta Oil to Utilize a Jack -Up Drill Rig for Natural Gas and Oil Exploration in Cook Inlet. 6. PASSED UNANIMOUSLY. Resolution No. 2011 -08 In Support of Senate Bill 3, "An Act Providing for Funding for School Lunch and Breakfast." 7. PASSED UNANIMOUSLY. Resolution No. 2011 -09 Authorizing Amendment of the Regulations of the Kenai Municipal Cemetery to Delete References to Specific Fees and Charges so that Those Fees and Charges will be as Set Forth in a Comprehensive Fee Schedule Adopted by the City Council at Which Time the Fees Charged by the Kenai Municipal Cemetery May be Increased to Allow for Credit Card Acceptance for Payment of Cemetery Fees and Charges. 8. PASSED UNANIMOUSLY. Resolution No. 2011 -10 Authorizing Amendment of the Regulations of the Kenai Municipal Airport to Delete References to Specific Fees and Charges so that Those Fees and Charges Will be as Set Forth in a Comprehensive Fee Schedule Adopted by the City Council at Which Time the Fees Charged by the Airport May be Increased to Allow for Credit Card Acceptance for Payment of Airport Fees and Charges. 9. PASSED UNANIMOUSLY. Resolution No. 2011 -11 Authorizing Amendment of the Regulations of the Kenai Community Library to Delete References to Specific Fees and Service Charges so that Those Fees and Charges Will be as Set Forth in a Comprehensive Fee Schedule Adopted by the City Council. 10. PASSED UNANIMOUSLY. Resolution No. 2011 -12 Authorizing Amendment of the Regulations for Public Records Inspections to Delete References to Specific Fees and Charges so that Those Fees and charges will be as Set Forth in a Comprehensive Fee Schedule Adopted by the City Council at Which Time the Fees Charged for That Service May be Increased to Allow for Credit Card Acceptance for Payment. 11. PASSED UNANIMOUSLY. Resolution No. 2011 -13 Authorizing Amendment of the Public Utility Regulations and Rates Appended to the Kenai Municipal Code to Delete References to Specific Fees and Charges so that Those Rates, Fees, and Charges Will be as set Forth in a Comprehensive Fee Schedule Adopted by the City Council at Which Time Those Public Utility Rates, Fees, and Charges May be Increased to Allow for Credit Card Acceptance for Payment of Utility Rates, Fees, and Charges. 12. AMENDED/PASSED UNANIMOUSLY. Resolution No. 2011 -14 Supporting Sound Fisheries Management Practices and Diversified Harvest Opportunities in the Cook Inlet. 13. APPROVED /CONSENT AGENDA. *2011 -2011 Liquor License Renewals Peninsula Oilers Baseball Club, Inc., d /b /a Peninsula Oilers (Recreational Site /Seasonal, License #846) George Pitsilionis, d /b /a Pizza Paradisos (Beverage Dispensary, License #3032) Three Bears Alaska, Inc., d /b /a Three Bears Alaska, Inc. (Package Store, License No. 4118) ITEM E: MINUTES 1. APPROVED /CONSENT AGENDA. *Regular Meeting of January 19, 2011 ITEM F: UNFINISHED BUSINESS ITEM G: NEW BUSINESS 1. APPROVED. Ratification of Bills 2. APPROVED. Approval of Purchase Orders Exceeding $15,000 3. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2532 -2011 Increasing Estimated Revenues and Appropriations by 595,885.00 in the Airport Fund and Airport Improvement Capital Project Fund for the Engineering and Design of the Airport Apron Pavement Rehabilitation. 4, INTRODUCED /CONSENT AGENDA. *Ordinance No. 2533 -2011 Increasing Estimated Revenues and Appropriations by 52,000 in the General Fund Fire Department. 5. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2534 -2011 Increasing Estimated Revenues and Appropriations in the Airport and Airport Improvement Capital Project Fund by 535,000 for an Environmental Assessment of a Project to Remove Trees Along the Southwest Side of Runway 1L/ 19R that are a Hazard to Aviation. 6. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2535 -2011 Increasing Estimated Revenues and Appropriations by S23,964 in the General Fund for Police Equipment and Police Training. 7. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2536 -2011 Increasing Estimated Revenues and Appropriations in the General Fund Police Department by $26,500, Fire Department by $20,000, Parks Department by $3,500, and Boating Facility Department by $13,000 to Purchase Equipment Needed in Response to the Annual State of Alaska Personal Use Fishery that Takes Place on the City of Kenai Beaches and Utilizes City Facilities. 8. INTRODUCED /CONSENT AGENDA. *Ordinance No. 2537 -2011 Amending the Kenai Municipal Code Chapter 3.10, Control and Treatment of Animals, to Provide for a New Regulation of Beekeeping Within the City of Kenai Including the Citation Procedures and Penalties for Violation of Ordinances, and Making Technical Changes and Corrections. 9. APPROVED. Action Item /Approval Second Amendment to Amended City Manager Employment Contract (Three -Year Extension). 10. NONE SCHEDULED. Discussion /Action Schedule Work Session /Possible Amendments to Commission and Committee Appointments and Public Notification of Vacancies on Commissions and Committees. ITEM 11: COMMISSION /COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks Recreation Commission 6. Planning Zoning Commission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Mini -Grant Steering Committee d. Kenai Convention Visitors Bureau e. Reports of KPB Assembly, Legislators and Councils ITEM I: REPORT OF THE MAYOR ITEM J: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM K: ADDITIONAL PUBLIC COMMENT ITEM L: ITEM M: 1. Citizen Comments (Public comment limited to 5 minutes per speaker) 2. Council Member Comments EXECUTIVE SESSION None Scheduled. PENDING LEGISLATION (This item lists legislation which will be addressed at a later date as noted.) ADJOURNMENT enai Mltan ice pal Airport Airport Prefects: Apron Rehabilitation: Winter shutdown. Airport Manager's Report For January 2011 Float Plane Basin Facility Improvement Project: Wince Corthell- Bryson is continuing with the design effort. Master Plan City Administration is developing a work scope for this plan. Annual FAA 139 Inspection: The annual FAA certification inspection was held January 4 -7, 2011. Two FAA representatives reviewed ARFF curriculum, training records, fueling inspection records, airport self- inspection records, and other areas of the FAR 139 regulations that the airport must comply with. We expect to receive a Letter of Correction for runway edge flush mount lights, runway markings, obstructions, and a Wildlife Hazard Assessment. FY12 Budget: Airport staff is busy working on the fiscal year 2012 budget. Improvements under consideration will be landscaping upgrades, new carpet and vinyl in the terminal; terminal roof repairs including the glass walkway, sidewalk repair, and electric plug -ins for the rental cars. New Administrative Assistant: Erica Shinn joined the airport staff on December 21, 2010. Erica was previously a Dispatcher with the Kenai Police Department for 3 years. She is energetically approaching this position and responsibilities and is a welcome addition to the airport staff. 2011 Kenai Peninsula Air Fair: Saturday, June 4, 2011 is the date for the 11" Annual Kenai Peninsula Air Fair. We are always looking for event volunteers and new ideas for this event. If you can volunteer please contact Mary or Erica. 2011 -01 ERA GRANT Change KENAI Combined Month AVIATION AVIATION Total 2010 from AVIATION Month Total 2010 January 4,885 1,897 6,782 6,263 519 157 6,939 February March April May June July August September October November December Totals 4,885 1,897 6,782 6,263 519 157 6 939 72.03% January 2011 6,782 2010 2011 25000 22500 20000 17500 15000 12500 10000 7500 5000 2500 0 January $11,798 $13,455 s anae Terminal Vehicle Parking Revenues Vehicle Parking Revenues Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun FY10 FY11 Date: Subject: Air Commerce Federal Aviation Administration February 1, 2011 Alaska Aviation Fact Sheet Alaska's 591,004 square miles are served by: 3 Flight Standards district offices 1 certificate maintenance office 1 FAA Safety Team 1 aircraft certification office 3 Automated Flight Service Stations 14 auxiliary Flight Service Stations Pilots Aircraft: There are 8,165 active pilots and 10,947 registered aircraft in Alaska. Airports: Alaska has 289 public use land -based airports, 44 heliports and approximately 736 recorded landing areas (private, public, military) total. Of course pilots land on many of the thousands of lakes and gravel bars across the state where no constructed facility exists. The nun iher ofenr�lsnernent in Alaskr is T2 times the state population compared to 2.2 times the U.S. population for all states. The are 271 certified air carriers in Alaska providing scheduled and on- demand services. 8 FAA control towers and 4 military towers 2 terminal radar approach control facilities 1 air route traffic control center 147 aviation weather camera sites 138 automated weather monitoring systems Seaplanes: Lake Hood in Anchorage is the world's largest and busiest seaplane base. It accommodates an average of 175 takeoffs and landings daily, with the busiest day last year accommodating 1,403 operations. There were over 63,000 operations in 2010, when combined with the Lake Flood gravel strip. Alaska has the most seaplane bases in the country —146 Air Traffic Activity in 2010: Ted Stevens Anchorage International Airport 283,035 flight operations Lake Hood 63,727 Fairbanks 232,320 Juneau 94,323 Merrill Field, Anchorage Municipal Airport 150,371 Airport Improvement: Since 1982 the federal Airport Improvement Program has provided over $3.2 billion for airport construction, development and planning in Alaska. These federal funds were provided for more than 1,343 grants within the state. In 2010, the FAA Alaskan Region distributed $235.6 million in 58 grants to State and other "local" airport sponsors. SPECIAL USE PERMIT THE CITY OF KENAI (City) for the consideration, and pursuant to the conditions and requirements set forth below, hereby grants the right to use the Premises, identified in Exhibit A to this Permit, which exhibit is incorporated herein by reference in its entirety, to BUCCANEER ALASKA OPERATIONS, LLC: I. Term. Permittee shall have a non exclusive use of the Premises for a term of one year, to commence on the day of 2012. day of 2011, and to end on the 2. Premises. The Premises subject to this Permit is identified in Exhibit A, page and is further described as: A parcel of land for access and exploratory drilling located north of the fire training facility off Marathon Road in the City of Kenai situated in Section 33, Township 6 North, Range 11 West, Seward Meridian; all located within the Kenai Recording District, Third Judicial District, State of Alaska, and more particularly described as 'follows (courses and distances are Alaska State Plane Zone 4): Commencing at the northwest corner of Tract A -1 -A Baron Park Subdivision Fire Addition on the easterly right -of -way line of Marathon Road, Thence Course N 7 °26'03 "E Distance 343.29 ft. along said right -of -way line to the Point of Beginning, Thence Course N 89 °23'34 "E Distance 439.24 ft. Thence Course S 0 °36'26 "E Distance 340.00 ft. to a point on the northerly boundary of said Tract A -1 -A Thence Course N 89 °23'34 "E Distance 500.00 ft. along the northerly boundary of said Tract A -1 -A Thence Course N 0 °36'26 "W Distance 400.00 tt. Item Ile. Buccaneer Alaska Operations, LLC Page 1 of 7 Special Use Permit L:Agt.SUP.Buccaneer.012411 Thence Course S 89 °23'34 "W Distance 930.16 ft. to a point on the easterly right -of -way line of Marathon Road Thence Course S 7 °26'03 "W Distance 60.68 11. along said right -of -way line to the Point of Beginning thus embracing Area: 5.19 Acres (226,082 sq. ft.). 3. Use. The permitted use is to construct approximately 550 lineal feet of access road, a 400' x 500' drill pad, drill Kenai Loop #1 Well and production and compressions facilities for the sale of natural gas. This use is more specifically described in the "Plan of Operations" in the attached Exhibit A, and all such uses are subject to Permittee applying for and obtaining all required permits for such activities and to Permittee observing all conditions and requirements of said permits. The use of the Premises is limited to the purposes specified. This use is also subject to the administrative actions of the City of Kenai for public safety and the protection of maintenance of Premises and of adjacent and contiguous lands or facilities. 4. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, permits, certificates, and other documents required for its operations under the Permit and /or as described in Exhibit A. Permittee shall provide proof of compliance to the City upon request by the City. 5. No Exclusivity. The use by the Permittee of the Premises is limited to the uses and purposes specified herein and the Permits is not intended to grant any exclusive use to the described Premises except as otherwise provided herein. This use is also subject to the reasonable administrative actions of the City for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Without limitation of the foregoing, Permittee expressly recognizes and has notice that the access road to be constructed on the Premises by Permittee may be used by the City and the City's designees. 6. Improvements. Improvements described as the access road and drill pad shall remain in place following the term of this Permit and shall become the property of the City. Buccaneer Alaska Operations, LLC Page 2 of 7 Special Use Permit L: Agi.S U P. n uccaneer.01241 1 7. Permit Fees. Permittee shall pay a monthly fee of $1,333.33, plus applicable sales tax. This fee is computed based upon the following calculation: 200,000 s.f. x $1.00 s.f. 8% annual fee 12 months). The fee shall be due on or before the first day of each month beginning February 1, 2011. Checks, bank drafts, or postal money orders shall he made payable to the City of Kenai and delivered to the City Administration Building, Kenai, Alaska, 210 Fidalgo Ave., Kenai, Alaska 99611. Permittee further agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided, including but not limited to sales tax now enforced or levied in the future and computed upon fees due, with sales tax due in monthly installments at the same time Permit Fees are due. Permittee shall pay and be liable for interest at the rate of eight percent (8 per annum and penalties of ten percent (10 of the amount due, on any amount of money owed under this Pen which is not paid on or before the date it becomes due. 8. Insurance. Permittee, at the expense of the Permittee, shall provide insurance covering its activities on and /or in any way arising out of its use of the Premises. Permittee shall provide insurance coverage of the following types and minimum coverage limits. If Permittee's policy(ies) contain(s) higher limits, the City shall be entitled to coverage to the extent of the higher limits: Commercial General Liability including premises, all operations, property damage, personal injury and death, broad -fonn contractual, with a per occurrence limit of not less than $1.000,000 combined single limit. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non owned motor vehicles the lessee uses. Workers' Compensation Insurance for all Permittee's employees, coverage as required under AS 23.30.045, and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. Products and Completed Operations Liability Insurance. Permittee shall Buccaneer Alaska Operations, LLC Page 3 of 7 Special Use Permit L:Agt.SUP.Buccaneer.012411 provide Products and Completed Operations Liability Insurance in at least the following coverage limits: S100,000 bodily injury combined single limit per occurrence; $300,000 bodily injury aggregate; and, $100,000 property damage combined single limit per occurrence. All of the policies required above shall he issued by a company /corporation currently rated "A "or better by A.M. Best With respect to the policies of insurance listed above, Permittee shall provide the City with proof of insurance coverage in the form of an insurance policy or a certificate of insurance, together with proof that the premiums have been paid, showing the types and monetary limits of coverage secured. Permittee shall provide this proof of insurance to the City (attention to the City Manager) prior to beginning any activities on the Premises. All insurance must provide that the City be notified at least 30 days prior to any termination, cancellation, or material change in the insurance coverage. All policies shall name the City as an additional insured. If Permittee subcontracts any work on the Premises, all of its subcontractors shall be subject to the same insurance requirements. Permittee shall identify its subcontracts and provide the same evidence of insurance coverage to the City prior to the subcontractor performing work. 9. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend, and save harmless, the City of Kenai, its ofticers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and /or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities to which any or all of them may he subjected, to the extent such Liabilities are caused by or result from any negligent act or omission or willful misconduct of the Permittee in connection with its use of the Premises. This shall be a continuing release and shall remain in effect after termination of this Special use Permit. 10. Mutual Cancellation. This permit may be cancelled in whole or in part by either party with one (1) calendar month written notice. Buccaneer Alaska Operations, LLC Page 4 of 7 Special Use Permit L: Agt.S UP.B uccaneer.01241 1 11. No Alcohol. No possession or consumption of alcoholic beverages is permitted on the Premises. 12. No Joint Venture. The City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises. 13. Personalty. Any or all personal property placed or used upon lands or in facilities may be removed and /or impounded by the City, and when so removed and /or impounded, such property may he redeemed by the owner thereof only upon the payment to the City of the costs of removal plus its storage charges. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or its invitees to the Premises. 14. Assumption of Risk. Permittee will provide all proper safeguards and shall assume all risks incurred in its use of the Premises. 15. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 16. No Discrimination. Permittee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 17. Contact Information. The Contact information for the Permittee, and the person in responsible charge for Permittee during the term of the Permit, for purposes of notice and all communications from City to Permittee is: Mark Landt Buccaneer Alaska Operations, LLC 952 Echo Lane Houston, Texas 77024 Message Phone: 281.768.7650 Fax: 832.201.7495 Buccaneer Alaska Operations, LLC Page 5 of 7 Special Use Permit L:Agt.SUP.Buccaneer.012411 The Contact information for the City, and the person in responsible charge for Permittee during the term of the Permit, for purposes of notice and all communications from Permittee to the City is: City Manager 210 Fidalgo Avenue Kenai, AK 99611 Phone: 907.283.8223 Fax: 907.283.3014 Email: rkoch @ci.kenai.ak.us 18. Authority. By signing this Permit, Permittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the organization to bind the organization hereunder. Approved as to form: Krista S. Stearns City Attorney CITY OF KENAI By: Rick K. Koch City Manager BUCCANEER ALASKA OPERATIONS, LLC By: Title: Buccaneer Alaska Operations, LLC Page 6 of 7 Special Use Permit L:Agt.SU P.B uccaneer.01241 l STATE OF ALASKA ss. THIRD JUDICIAL DISTRICT THIS IS TO CERTIFY that on the day of February, 2011, the foregoing instrument was acknowledged before me by RICK K. KOCH, City Manager of the City of Kenai. Alaska, an Alaska home rule municipality, on behalf of the City. STATE OF ALASKA THIRD JUDICIAL DISTRICT Buccaneer Alaska Operations, LLC Special Use Permit L:Agt.SUP,Buccaneer.01241 1 s s. Notary Public for Alaska My Commission Expires: THIS IS TO CERTIFY that on the day of February, 2011, the foregoing instrument was acknowledged before Me by of BUCCANEER ALASKA OPERATIONS, LLC, an Alaska Limited Liability Company, on behalf of the company. Notary Public for Alaska My Commission Expires: Page 7 of 7 UNITED STATES OF AMERICA, STATE OF ALASKA PUBLISHER'S AFFIDAVIT 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: February 8, 2011 SUBSCRIBE') AND SWORN to me before thi, 9th da of February 2011 NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26- Aug -12 A1RPCP1 COMMlSSEON MEETING FEBRUARY 10, 2011 7:00 P.M. KENAI CITY COUNCIL CHAMBERS p...//www.d.kenakak.us ITEMS: OLD BUSINESS a. Discussion /Recommendation Ma Pa Alaskan Treas Purchase Request ITEM 6: NEW BUSINESS si Discussion/Recommendation 11` Annu Poster ITEM 11: ADJOURNMENT The public is invited to attend and participate. Additional in available through the City Clerk's offi ce at 210 Fidalgo Avenue website at http //www c7.kenai ak us. Carol L. Frees, City Clerk Kenai P eninsula:Air Fair 0574/2 ormation is or visit our os Russ `y©7AR Ism