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HomeMy WebLinkAbout2011-11-10 Airport Commission PacketKENAI AIRPORT COMMISSION NOVEMBER 10, 2011 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY -- October 13, 2011 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion -- Airport Regulations -- Chapters 8.05.010 - 12.050.090 ITEM 6: NEW BUSINESS ITEM 7: REPORT a. Commission Chair b. Airport Manager c. City Council Liaison ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION a. December 8, 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 a. Alaska's Best Travel -- letter from Dottie Fischer b. October 2011 Enplanements c. October 2011 Float Plane Basin Activity d. FAA Alaskan Region Airports Division AIP FY1982 - 2011 e. Ordinance No. 2591.2011 f. Ordinance No. 2596 -2011 g. Resolution No. 2011 -75 ITEM 12: ADJOURNMENT PLEASE CONTACT U5 IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING: COREY - - 283 -8250 OR MARY -- 283 -7951 KENAI AIRPORT COMMISSION OCTOBER 13, 2011 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING MEETING SUMMARY ITEM 1: CALL TO ORDER AND ROLL CALL Chair Knackstedt called the meeting to order at approximately 7:00 p.m. Roll was confirmed as follows: Commissioners present: Commissioners absent: Staff /Council Liaison present: Chair H. Knackstedt, J. Zirul, J. Bielefeld, G. Feeken, R. Rogers, L. Porter E. Mayer Airport Manager M. Bondurant, Administrative Assistant E. Shinn A quorum was present. ITEM 2: AGENDA APPROVAL Knackstedt suggested switching items 5 and 6 due to the guest speakers. MOTION: Commissioner Bielefeld MOVED to approve the agenda as amended and Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY 3 -a. September 8, 2011 3 -b. August 11, 2011 MOTION: Commissioner Zirul MOVED to approve the meeting summaries of August 11 and September 8, 2011 and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: ITEM 5: 5 -a. PERSONS SCHEDULED TO BE HEARD OLD BUSINESS Discussion -- Airport Regulations -- Chapters 6.05.010 -- 7.05.040 Airport Manager Bondurant reported the commission reviewed chapters 6.05.010 through 7.05 -040 and noted comments and changes would be included in the draft document for Administration review. ITEM 6: NEW BUSINESS 6 -a. Discussion -- Airport Obstruction Tree Removal Project John Sounders, Aires Consultant, and Casey Madden, Wince, Corthell & Bryson gave the Commission an update on the obstruction clearing. General discussion occurred. Bondurant noted a draft plan would be available in approximately 1 month. 6 -b. Discussion -- Airport Master Plan Sounders and Madden reported on the master plan process, noting the project would take approximately 18 months. Administration would be establishing an advisory committee for assistance and review. ITEM 7: REPORT 7 -a. Commission Chair -- No report. 7 -b. Airport Manager -- Bondurant reported on the annual snow removal meeting, the upcoming work on the Airport Emergency Plan, and training she and Shinn had attended in Anchorage. 7 -c. City Council Liaison -- No report. ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION 8 -a. November 10, 2011 -- Commissioner Zirul noted he would not be attending, and Commissioner Porter noted he may be unavailable. ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS Porter requested the status on the electric gate. ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD -- None. ITEM 11: INFORMATION ITEMS 11 -a. Airport Manager's Reports 11 -b. Special Use Permit -- CONAM Construction Company 11 -c. September 2011 Float Plane Basin Activity 11 -d. September 2011 Enplanements 11 -e. Airport Report Today ITEM 12: ADJOURNMENT AIRPORT COMMISSION MEETING OCTOBER 13, 2011 PAGE 2 MOTION: Commissioner Zirul MOVED to adjourn and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at approximately 8:30 p.m. Meeting summary prepared and submitted by: Corene Hall, CMC, Deputy City Clerk AIRPORT COMMISSION MEETING OCTOBER 13, 2011 PAGE 3 ena u Municipal Airport Memo °I.m 5o. «S r, ;, r Qvratex Kena.+i f e+'iivutaa%' 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907- 283-7951 FAX 907-283-3737 To Airport Commission From: Mary Bondurant - Airport Manag Date: November 3, 2011 Subject: Updating - Airport Regulations In continuing Airport Commissions review of the Airport Regulations, attached are Chapters 8.05.010 through 12.050.090. Please be prepared to discuss these at the meeting. After a review of the regulations in entirety, Commission recommendations will be incorporated into a draft document that will be submitted to City Administration for review. Attachments www.KenaiAirport.com An air carrier or other All commercial operators of aircraft operating from the Kenai Municipal Airport shall register each aircraft with the Airport Manager prior to commencing operations at the Airport. The&ush registration (a) must be in writing. (b) may be submitted in person or by mail; and (c) must providechow the (1) the make, model, registration number, and certificated maximum gross aircraft take -off weight of the aircraft;-along-with (2) the name and mailing address of the registered owner and hielhcr cerrestaddressnd (3) such other information as the Airport Manager may reasonably require. auakraatioe- shall-de- given- before- seoh- sommers+al operation.; shall eemmenee- eperation. Sections: 8.05.010 8.05.020 8.05.030 8.05.090 Chapter 8.05 Aior,_„�n rr ACCIDENTS Aircraft Aaccidents. Motor vehicle accidents. Bodily injury and property damage. Airport- pcose#y- damages: Special definitions. (I expanded this chapter to include all types of accidents and damage. Some of the language was adapted from 17 ARC 45.120.) 8.05.010 Aircraft Accidents. ca) The owner or operator of an aircraft involved in an aircraft accident or incident on the Airport shall report the accident or incident to the Airport Manager and the Federal Aviation Administration (a) immediately, if the aircraft or a condition of the airport poses an imminent safety hazard 21 (b) within one hour of the accident or incident or as soon as possible thereafter, if the accident or incident involves bodily injury or death or damage to any one person's property In excess of 5500- and (c) if otherwise. within twenty-four hours of the accident or incident or as soon as possible thereafter. (p) The accident report shall Include (1) the make model and registration number of the aircraft involved; (2) the names and mailing addresses of the.persons involved; J a description of the accident or incident; and j4) such other information as the Airport Manager or the Federal Aviation Administration rnay reasonably require. Persens- iavetvedin- aircraft accide +its- inve1viagpersenal-injury, or prep damage-in Airpef#- shall ..snake- a- fuµrepnrt- hereof to the- Airpect c Federal - Aviation- Agensy -ass - _e dent -as possible. Said report-& a14- Include...names•andaddr-esse .: ved-and-of-any witnesses 8.05.020 Moto eehicta accidentsAicpmrt- property damages. (a) The owner or operator of a motor vehicle involved in an accident that occurs on City - owned property in the Airport Reserve, other than a public street, shall report the accident to the Airport Manager (a) within one hour after the accident or as soon as possible thereafter if the accident involves bodily injury or death or damage to any one person's property in excess of $500- and (b) if otherwise, within twenty-four hours of the accident or as soon as possible thereafter. (b) The accident report shall include (1) the make, model, license plate number of the vehicle involved: (2) the names and mailing addresses of the persons involved; (3) the name and address of the vehicle's registered owner; 22 (4) a description of the accident; and (5) such other information as the Airport Manager may reasonably require 8.05.030 Bodil. dn,p ae d » roperty damage. (a) Any person who damagesing, by any means, any a fence gate, gate control light, fixture, or other City -owned property on the Airport -property- means- e- ccntaet- withh -an aircf othe-rreaes, shall (1) report thesuch damage (A) immediately to the Airport Manager el:Nee -or and the Federal Aviation Administration Flight Service Station, if the damage is likely to adversely impact the safety of aircraft operations on, or the security of the Airport; or (B) as soon as possible, but no later than 48 hours after the damage occurred, to the Airport Manager if the damage will not adversely impact the safety of aircraft operations on. or the security of, the Airport'. (2) personnel immec#ate,y and shall -be fully responsible (A) to pay all costs related to the repair, restoration or replacement of the damaged property including the City's legal and administrative costs; and (B) for any bodily in'ur or .ro.ert. damage that occurs as a direct or indirect result of the person's damage to City -owned property, repair -the damage- or- replac-e he- wil4- repor!- any - incident- e- damages-upon -the fai are of an airc e -do se- ) If a person who is injured on the Airport by, or owns property on the Airport damaged by, the City, a City employee, or by City -owned property, the injured person or their representative, or the owner of the damaged property as applicable, shall report the accident to the Airport Manager within (1) one hour after the intury or damage or as soon as possible thereafter if the accident involves bodily injury or death or damage to any one person's property in excess of $500; and (2) if otherwise, within twenty -four hours of the accident or as soon as possible thereafter. 8.05.090 Special definitions. 23 In this chapter, (a) "aircraft accident" has the meaning given in 49 C.F.R. 830.2, as amended through January 1, 2006; (b) "incident" has the meaning given in 49 C.F.R. 830.2, as amended through January 1 2006. Chapter 9.05 AIRCRAFT OPERATION Sections: 9.05.010 Engine tests. 9.05.020 Aircraft Ccertification. 9.05.030 Equipment. 9.05.040 Instrument approach. 9.05.050 Student pilots. 9.05.060 Runway useage. 9.05.070 Helicopters. 9.05.080 Aircraft repair. 9.05.010 Engine tests. (a) An Aaircraft engine shall riot be warmed up or run in prolonged - engine test operations in any area of the Airport or in any manner that would result in a hazard to other aircraft, persons or property. (b) Under no circumstances shall a person engage in an prolonged- aircraft engine test operations, unless -be-pe (1) a competent operator is at the controls of the aircraft; or (2) the aircraft is securely tied down at both wings and tail, and a with- barricade is placed around the entire perimeter of the propeller area or let intake and exhaust areas, as applicable to the aircraft; and (3) in the case of an engine run -up of more than 60 seconds duration takes place between the hours of 7:00 AM and 10:00 PM, prevailing local time. (Given the near proximity of residential areas to the airport, it seems prudent to have a curfew of some sort on engine testing.) 9.05.020 Certification. 24 All aircraft operating on the Kenai Municipal Airport must bear current airworthiness certificates issued by the Federal Aviation Administration. 9.05.030 Equipment. No aircraft shall be operated on the Airport regularly-unless it is equipped with tail or nose wheel, and wheel brakes, or skis when conditions permit, except with the permission of the Airport Manager. (`regularly" is one of those words that the parties in a dispute almost always define differently. It is best to not use the word.) 9.05.040 Instrument approach. Instrument approach procedure at Kenai- MunicipalAirport shall be the procedure as specifically authorized by the Regional Director, Federal Aviation AdministrationAgency. (Isn't this a redundant statement of the obvious? The City has no authority to establish instrument approach procedures and the FAA - adopted procedures apply regardless of whether or not the City has a regulation on the subject.) 9.05.050 Student pilots. A-11—student—pi—lots;—prier—to—Before making his or hertheir first solo flight from the Airport a student pilot must have — made -a visit to-the Flight Service Station whenwhich aircraft traffic is in progress and observerobservingffaffis-and Flight Service Station personnel in the process of managing aircraft trafficpreeedwes. Each student pilot shallwil ask the Flight Service Specialist on duty at the time of the visit to make the appropriate entry in his leg- beeklogbook to verify the student pilot's compliance with this requirement. 9.05.060 Runway usea'e. (a) Airplanes taking off and landing at the KIT "Municipal- Airport will follow the rules and regulations established by the Federal Aviation Administration. (This seems to be another superfluous statement.) (b) A pilot taxiing an aircraft on the Airport shall use the taxiways and water lanes established for that purpose, subject to such aircraft size, type or weight restrictions as may be established by the Airport Manager.Airplane- taxiing attached taxiing-diagram- (The reference to an "attached" diagram is too obscure for a regulation.) (c) Upon landing a fixed wing aircraft, the pilot shall taxi the aircraftTaxiing shall-be-done straight down the runway - after - touchdown, and aircraft-shall -urn- onto- the-fifstexist and exit at the first available taxiway, unless directed otherwise - or - -as- directed by the Federal Aviation Administration FAA - Control Tower. 25 (d) No pilot shall turn an aircraftTurns of 180 degrees on the runway unless the maneuver is approved by the Federal Aviation Administration are - expressly -p ohibited except- by - FAA- Control Tower approval. 9.05.070 Helicopters. (a) A pilot operating a All - helicopters carrying a sling loads to or from the Airport shallmust fly a course away from areas congested with aircraft and buildings with -prier approval -and direction - #rem- he- FAA-Gentrel- Tower. (The intent of the deleted phrase wasn't clear since all aircraft arrivals and departures from the airport are subject to tower control, anyway. As originally written, the provision could be read as meaning a sling - loaded helicopter could only avoid populated areas if the tower approved. Otherwise, flights over populated areas would be OK.) (b) A pilot operating, a helicopter on the Airport shall land and take off only at locations designated or approved for that purpose by the Airport Manager. Helicopter-landings andtaike -er`fs af!ixe ne wally- -te-be to a+'8from- respee44vepads, eopter- landings aad-take -offs ar. ^rma y rth ramp service- areas} -Use-of th unWiror- Taxiway -C s- per+ Witted-+ het leapter-land+ngs- and..take -e#s at places-other tt M1ann or s„ designated-mustbe- olearedby -ih2 AirppO4 M&Rag2f- OFhls- repre3ent ti Emergency-operation will be-as directed- by- €ederal -AaiaY (See - Appendix -& r a 3- (Ords. 316, 327) (For better flexibility, l recommend against including specific operational locations and routes in the regulations. Giving the FAA a "blank check" to direct aircraft operations on the airport during an emergency could expose the City to some expensive liabilities. As owner of the airport, the City has the ultimate responsibility for the airport. If the FAA makes a bad call in an emergency under this regulation, the City could get stuck with the bill by virtue of the delegation of authority to the FAA.) serrrise areafsj- er.aO#h- ramp -. -T to-be -to- and - from - the- movementare 9.05.080 Aircraft repair. (a) No person shall -on-a regular basis, shag commercial) maintain, modify. or repair an aircraft, aircraft engine, propeller or other aircraft equipment on the Airport property unless the personhe (1) holds a business activity permit issued by the Airport Manager under 10.05.015' or (2) is employed by, or doing business as a fixed base operator on the Airport_ (b) A person shall only perform the maintenance. modification or repairs described in 9.05.080(a) norshal1- repairs-be ade-in any an areaatherthan that specifically designated or approved by the Airport manager for thatsuch purpose. 26 Chapter 10.05 GENERAL RULES OF CONDUCTENFORRR QN Sections: 10.05.010 General rules of conduct. 10_05.015. Business activity permit. 10.05.020 Penalties. 10.05.025 Violation of regulations. 10.05.030 Non - responsibility. 1-0-05048 — - Regu•!akions. 10.05.050 Emlosives on the Airport. 10.05.010 General Rules of Conduct. () No person shall, without the permission of the Airport Manager: (1a) Destroy, injure, deface or disturb in any way any buildings, signs, equipment, marker, or other structure, tree, flower, lawn or other property on the Airport ply. (2b) Alter, make additions to, erect any building or sign, or make any excavations on the Airport- without- the - consent -ef- the -A e e• ._(This is stated in the introductory sentence of 010.) (3e) Wilftilty- aAbandon any personaterganizational property on the Airport. (Why should the City be concerned about a person's motive in abandoning something on the Airport? Whether the abandonment is willful or due to neglect, the act should be prohibited.) (44) Enter a Movement Areathe- Airport -aant-area or-ramp._(Note _l believe this provision could be deleted entirely because, by definition, a "movement area" is included within a "field area' which is covered in (1), now "(9) ".) (5e) No- person chat!- ilnterfere with, tamper with, unlawfully remove or injure any part of the Airport or any of the equipment thereof. (60 1‘,1e{ erson - shall-kKnowingly or willfully make any false statement or report to the Airport Manager or agony Airport employee. (g)-No- person s•_.. ,... esFtampec- Wit#,• any- •ai engine-of- such - aircraft: or se -any- aircraft, - airsraftparts- ir}strumenis -or ools,cvithout permission -eft.- e:. ; s K o specific e: _ ° -_ rpo ttUaneger- (1 moved this to 27 (e) because the last phrase didn't fit with the preamble sentence at the beginning of 10.05.010(a).) (7h) Nopersen- shah- Eenter any restricted area posted as being closed to the public except as may be permitted by these regulations. (81) No- person - shah- eEnter upon the field area except: (i?) persons assigned to duty therein by the Airport Manager; (112) authorized representatives of the Airport and Federal Aviation Adm inistrationAgenoy; (11i3) persons authorized by the Airport Manager; and, (1v4) passengerspersons, under appropriate supervision, entering the area for purposes of boardin or leavin an aircraftentbarkafion- an44erdar- ration. Q) - -No- person sktaihengage n a ausinee, 01-G ommerc+a1-activity -0f-any- nature whatever on- ihe- Atrporfiexcep€-wiih --#he- approval -of the-Airport - Manager-by-a- permit issued-by -he- 4irport Manager-and it ens-annaay be prescr s s o- ode-ofQr iaanees -_ (The state lost in an Alaska Supreme Court decision (Herrick, et al, v State of Alaska; early 1980's) because of an all- encompassing regulation like this. DOT &PF's inability to uniformly enforce the excessively broad regulation against every single business that did any kind of commercial activity on the airport (newspaper boys, pizza delivery folks, Amway -type sales people, real estate agents, etc.) was the reason the state lost the case. As a result, the State Attorney General advised the DOT &PF Commissioner to specifically list in regulation the commercial activities for which a lease or permit would be required. This existing provision Q) sets up the City for a loss in the same kind of airport leaseholder litigation. So, I recommend it be deleted and replaced with my proposed 10.05.15, below.) (10k) No- person- sba#+pPost, distribute or display signs, advertisements, circulars or any other printed matter at the Airport except with the approval of, and in the manner prescribed b_y the Airport Managerand-onty -in-see (111) Napersen -wall- '[Travel on the Airport other than on the roads, walks, or places provided for the particular class of traffic the person is using. (12m) Hinder or obstruct another person vehicle or aircraft from the lawful use of the Airport .Pie persor} shah- eccepy -he -roads am alke -in such o— mane- -as -to hinder or obstruct -heir proper use (14n) Nn-person- shaB-oOperate any type of vehicle for the disposal of garbage, ashes, or other waste material on the Airport- withoutMe approval of the Airport Manager. (This last phrase is stated in the introductory sentence of 010.) 28 (be) Any person who has been denied the use of the Airport by the Airport Manager under Chapter 3.05 of these regulations shall come upon or use the Airport only while travelling through as a passenger in a taxicab or other vehicle when enplaning or deplaning as a passenger of an aircraft operating on the Airport. (cp) All shops, garages, equipment and facilities. which are not the property of the City of Kenai, are expressly for the conduct of the owners or lessees business operations. No persons other than the owners or lessees or their employees shall make use of these facilities without individual and specific permission of the owners or lessees. (This is a confusing provision that either bars customers of these businesses from entering their premises without first obtaining the business owner's "individual and specific permission" or it authorizes subleasing with only the lessee's permission required (no City consent). Without knowing the history or intent behind this provision, I would recommend deleting it entirely.) (d) A person using the Airport shall comply with (1) the Airport re.ulations Kenai Munici.al Code and other a law' cable (2) orders the Airport Manager issues under applicable City, state or federal law. and (1) instructions, requirements, and restrictions that the Airport Manager has posted or indicated by sign signal, or other control device unless otherwise directed by an authorized person directin. aircraft vehicle, or pedestrian traffic. (e) No person shall interfere or tamper with, any aircraft or put in motion the engine of any aircraft or use any aircraft. aircraft parts, instruments or tools on the Airport without permission of the aircraft owner or by specific direction of the Airport Manager. (This is the relocated and slightly modified section (g).) (f) A person may not dump snow anywhere on the Airport except (1) in a location the Airport Manager has designated for that purpose' (2) in a manner and location approved in writinq by the Airport Manager; or (3) as specifically authorized under a lease or permit issued to the person by the City. (Adapted from 17 AAC 45.020(e)). (q) Except in an emergency or after recei.t of it oval from the Airport Manager to do so a person may not moor load, unload, launch, operate, or test a boat or boat motor in the waters of the float pond on the Airport. (Adapted from 17 AAC 45.020(h)). 29 10.05.015 Business activit .e i it Except as expressly authorized under a lease or City - approved sublease or as expressly authorized under a concession a•reement or other permit issued by the City or the Airport Manager a person must before engaging in any of the following on the Airport hold a current business activity permit issued under this section expressly authorizing the conduct of that business on the Airport: (1) an aircraft maintenance or repair business; (2) a business that performs aircraft ground handling services; (3)_a business that provides a fuel delivery or mobile aircraft fueling or defueling service,- offerin for sale or providing goods or services commercially to the general public in a City-operated airline terminal building 4 sellin (5) a vehicle rental business; (6) an aircraft or aircraft parts sales business (7) a valet parking service. (8) a food service business. (b) If the Airport Manager determines the action is in the best interest of the City the Manager may as a condition of a business activit .ermit limit the conduct of the permittee's business to one or more specific locations on the Airport. (c) A person who seeks a business activity permit under this section must submit a written request to the Airport Manager and must include (1) the non - refundable application fee specified in Chapter 13.05 and (2) a written description of the services and operations the applicant proposes to conduct under the permit. (d) The Airport Manager will grant a request for a business activit hermit unless the Manager determines that (1) the applicant has violated a provision of the Airport regulations Federal Aviation Administration regulations or the Kenai Munial Code, which violation the applicant has not resolved to the Airport Manager's satisfaction; 30 (2J the applicant has violated a material term of a contract lease or permit with the Clwhich violation the applicant has not resolved to the Airrport Manager's satisfaction: (3) the applicant is in arrears on a rental payment or other material financial obligation due the City; (4) the proposed activity would interfere with or is otherwise incompatible with the security, safety, maintenance. or operation of the Airport; O the proposed activity! would violate JA) applicable law' (8) the City's obligations under revenue bonds issued in connection with the Airport; (C) an exclusive ri.ht the Cit r has •ranted to another .arson on the Airport: (D) a covenant running with the land of the Airport; or (E) an applicable requirement or assurance to which the City is committed under a .rant from the Federal Aviation Administration issued in connection with the Airport; or (6) the proposed activity would be inconsistent with sound airport planning. (e) A decision by the Airport Manager to deny an application for a business activity permit will be in writing. jif As a condition of a business activity permit issued under this section 10.05.015, the permittee must (1) pay the business activity permit fee required under Chapter 13.05 and (2) provide insurance coverage that the Airport Manager determines is comparable to the insurance coverage the City requires of a and leaseholder or terminal buildinq space tenant operating a business like that authorized in the permittee's business activity permit. (g)_A business activity permit is not transferable and shall be issued for a term the Airport Manager determines is in the best interest of the City but not exceeding five years. 31 For purposes of this section 10.05.015. a business activity is conducted on the Airport if the activit. includin an, transportation offered or arranged by the operator of the activity. (1) is conducted all or in part on the Airport; or (2) derives business on the Airport and offers or arranges for transportation between an off - airport location and a location on the Airport. (This entire section is based on 17 AAC 45.105 and a portion of 17 AAC 45.010(g)) 10.05.020 Penalties. Any person who .:' •. violates any Airport regulation,-preseibed-herei-n, or any order or instruction issued thereunder_ shall be subject to a fine of -in- keeping therewith, shall -be- guilty of a- violation- and- upontonvietien- thereof, - maybe -fined -not more than five hundred dollars ($500.00) or imprisonmented for not more than thirty (30) days, or both, under the authority of the Kenai Municipal CodeCed of ^•' n n City -of- Kenai. (Ord. 1858 -2000) (Here again, "knowingly and willfully" are pretty tough to prove.) 90.05.025 Violation of regulations. (a) If a person acts in violation of the Airport regulations or fails to act as required by the regulations the Airport Manager may in addition to the penalties under 10.05.020 take one or more of the following actions: (1) order the person to either immediately or within a specified time IAALstop the violation' (B) begin the required act; or (C) leave the airport' (2) provide written notice to the person that describes how the person may correct the violation or omission and the time within which the violation or omission must be corrected: (3) correct the violation or omission; or (4) in an emergency or when the Airport Manager finds such assistance necessary for safety, maintenance or operation of the airport, request enforcement assistance by the City Police Department. 32 b If the Ai on Manager acts under a)(3) of this section 10.05.025 to correct a violation or omission by a person, the City may seek reimbursement from the person of all costs. plus interestt that the City incurs in acting to correct the violation or omission including site assessment costs, clean up costs, collection costs legal and administrative costs applicable fines and costs resulting from interference with or delay of projects or operations on the Airport. (c) If the Federal Aviation Administration fines the City for a violation of a federal statute or regulation or for an occurrence or omission on the Airport, the person who caused the violation occurrence or omission shall, upon written demand from the City reimburse the City for the amount of the fine, plus interest and the costs incurred by the City in obtaining the reimbursement. (10.05.025 is based on portions of 17 AAC 45.020.) 10.05.030 Non - responsibility. The City of Kenai assumes no responsibility for loss, injury or damage to persons or property on the Airport, or using Airport facilities by reason of fire, theft, vandalism, wind, flood, snow, earthquake or collision damage, nor does the Cltyit assume any responsibility for injury to persons while on the Airport or while using the facilities thereof. 19,05.010 Regulations These-regulations -supefee-deiand cancel -all-provions-cules and...Pegulations- se¢- feah -by .J ope,ra1'nn f 1hr. Ke na4 Me City or other agency with respoct to the- _ _. - n�,�,,.,gorz.,-.., a Field: (Whatever purpose this provision might have served in the past, it is meaningless now, especially since it does not include any date references to establish its effectiveness.) 10.05.050 Explosives on the Airport. a) A person who brin s or .ossesses an explosive to or on the Airport shall comply with the hazardous materials provisions of 49 C.F.R. Part 175, as amended through January 1, 2006. (b) A person shall give the Airport Manager at least 24 hours advance written notice before brin.in. explosives onto the Air ort. (c) The Airport Manager may. based on considerations of the safety of Airport users and the general public, (1) condition direct supervise, or prohibit an operation involving an explosive on the Airport: and 33 (2) require that an aircraft with an explosive aboard (A) be fueled serviced and parked in a remote or other designated area of the Airport; and allow. fp) depart the Airport as soon as air traffic and safety considerations (d) In this section. "explosive" has the meaning given in AS 11.8 900; "explosive" also includes fireworks as defined in AS 18.72.100. Chapter 11.05 FUEL Sections: 11.05.010 Fueling and fuel storage -- General. 11.05.020 Fueling sources. 11.05.030 Fueling personnel training. 11.05.035 Fuel spill prevention and response plan. 11.05.040 Fueling apparatus electrical bonding, facii 11.05.050 Labeling 11.05.060 Fueling facilities. 11.05.065 Commercial fueling. 11.05.070 Fueling distributorship (Repealed) 11.05.010 Fueling and Fuel Storage—General. (a) No aircraft shall be fueled or defueled while the engine is running, unless running the engine is allowed for hot fueling under National Fire Protection Association Code 407. "Standard for Aircraft Fuel Servicing ". 2001 edition which is adopted in this regulation by reference. (Based on 17 AAC 45.055(e)(3). I don't know your local fire codes, or the City's preference in this case, but hot fueling is allowed at state airports (it's frequently necessary for emergency helicopter operations like fire fighting, multiple medical evacuations, etc.) (b) No aircraft shall be fueled or defueled while the engine is being warmed by applications of exterior heat; or while thesuch aircraft is in a hangar or an enclosed space. (b)fta) No persons shall smoke, light a match. or have any open flame within 50 feet of an aircraft being fueled or defueled. 34 (d)(a) No person shall operate any radio transmitter on receiver, or operate the switch of any electrical circuitapplionee eff-sr on an aircraft during fueling or defueling. (e)(c$ Persons engaged in the fueling or defueling of aircraft shall make every possible effort to prevent the overflow or spilling of the - fuel. In the event of a fuel overflow or spill. the person shall immediately take appropriate measures to contain and clean up the fuel prevent the fuel from draining into soil and report the overflow or spill to the Airport Manager. The person shall also promptly report the fuel overflow or spill to each regulatory agency that requires a report of that overflow or spill and repair any fuel leak and equipment failure or defect that caused or contributed to the overflow or spill. (Based on 17 AAC 45.055(8)) (f�.(e) No person shall use any material during fueling or defueling of aircraft thatwksieh is likely to cause a spark or be a source of ignition. fg)(f3 No person shall start an engine of any aircraft when there is any gasoline on the ground under thesush aircraft. (h)(g) Fueling hoses, containers, storage tanks and related equipment shall be maintained in a safe, sound and non - leaking condition. ffl(h) All fueling and defueling of aircraft shall be conducted at least fifty (50) feet from any hangar or other building. (i) No person shall fuel or defuel an aircraft without adequate fire extinguishers or equivalent fire protection equipment immediately available to the fueling location. Lk) All fueling, defueling, and fuel transfer on the Airport shall be conducted in accordance with applicable City and State of Alaska fire codes. 11.05.020 Fueling sources. Aircraft fueling shall be conducted only from approved type pumps or fueling trucks, and only by those authorized by the Airport Manager. No person shall fuel aircraft from barrels, drums, or cans under any condition or circumstances. However, the Airport Manager may waive this regulation for a dealer or when conditions do not permit fueling at designated areas. 11.05.030 Fueling personnel tralninar. Any person who engages in fuel delivery, fueling, defuelinq or fuel storage on the Airport shall ensure that they and all their personnel who handle fuel on the Airport are trained in safe fuel handling practices, fire safety, spill prevention and spill response(Based on 17 AAC 45.055(d) 35 Thereshall-be -seu# icier+ t -numbeeof •haired- persennefiand -prsee a .fely steeng; dispensing- and- etherwise.handlingfuel andifubcisantsen the— A:rpe4. (The existing wording doesn't identify who has the burden to supply the trained personnel. It just says someone must do it. I suppose that if nobody else does it, the City would have to.) (Ord. 305) 1.145.035 FueEwapiff prevention and response plan. (a) Any person who engages in fuel delivery, fueling, defuelingor fuel storage on the Airport shall maintain spill prevention and response capability readily accessible to the site or on the vehicle where the fuel is handled, stored, transported. or dispensed. (b) Any person who engages in commercial fuel delivery, fueling, defuelinq or fuel storage on the Airport shall, before operating,on the Airport (1) submit to the Airport Manager a copy the person's Spill Prevention Control and Countermeasures Plan prepared under 14 CFR 112: or (2) if 14 CFR 112 does not apply to the person's fuel related activities on the Airport. submit to the Airport Manager a written fuel spill prevention and response plan that includes (A) the measures the person will take to prevent a spill or release of fuel: (8) the steps the person will take in the event of a spill or release of fuel to (i) stop the spill or release and (ii) contain and prevent spreading or migration of any fuel released - (C) the person's plan for immediate notification describing any spill or release of fuel to the Airport Manager and to each regulatory agency that requires such a report. (3) Neither the submission of a plan by a person under this section 11.05.035 nor the receipt of the plan by the Airport Manager shall be construed as approval of the plan by the Airport Manager or the City. (This section 035 is partially based on a pending DOT &PF amendment to 17 AAC 45055.) 11,05.040 Fueling apparatus electrical bonding4fac4ity- greun€1e Before fueling an aircraft from a tanker truck, fuel tender. or fixed fueling facility, the aircraft and the truck, tender or fixed facility shall be connected by cable so as to establish a condition of zero electric potential between them.Adequate- greunding1er-the aircraft- and- fueling- faeWty s ",altbe-4nstalfed andimmediate-firepretection -er 36 e is>laers will be provided.- (Ord. 305) (Again, I don't know your local codes, but to the best of my knowledge, the goal is "zero electrical potential ", not "grounding ") 11.05.050 Labeling. In addition to any labels or signs required by applicable law a person who engages in fuel delivery, fuelin defuelin or fuel storage on the Airport shall place on the person's storage tank, tank truck fuel tender or other fuel container on the AirporiTere -shal -be adequate marking and labeling on storage-tanks-and ne ud g of to identify the contents by fuel type and octane rating . specific typ ectane- designations- (Ord. 305) 11.05.060 Fueling facilities. Any fuel storage tank, fuel dispensing apparatus or other fuel handling facility olaced or used on the Airport must conform to applicable environmental law and the City's fire prevention code. Before constructing or installing a fuel storage tank fuel dispensing apparatus or other fuel handling facility on the Airport. a personAN ersons- i&hing-to ^ instatkair,c eting facilities- on- the-Akperf must (a) obtain a lease for the land from the City-, (b) submit to the Airport Manager plans for the construction or installation and any other related information < -- _ _lion 35 the Airport Manager may require in order to provide for the safety of the public; and, (c) obtain the Airport Manager's written approval to proceed.AN••• oenterm-teithe-ftren y of Kenai. Comearerc at fueiinru. No person shall engage in fuel delivery dispensing or storage for commercial purposes on the Airport without first obtainin a land lease or business activity permit from the City authorizing the activity and paying any fee required under Chapter 13.05. (I don't know what the former 11.05.065 said about fuel sales, etc., but the City needs to have solid control over fuel-related commercial activities on the airport.) 11.05.070 Fueling distributorship. (Repealed - Res. 90 -66) Chapter 12.05 Safety and Sanitation 37 Sections: 12.05.010 Storage. 12.05.020 Open flame operations. 12.05.030 Smoking. 12.05.040 General requirements. 12.05.050 Fire extinguishers. 12.05.060 Hazards. 12.05.070 Hazardous substance release. 12.05.090 Special definitions. 12.05.010 Storage. (a) No person shall keep or store any flammable liquids, gases, signal flares or other similar materials in-the a hangars or in -any other building on the Airport, unless; P-ROVID-E—D-that-such- the materials aremaytee kept ft) in aircraft in the—proper receptacles installed in the aircraft-for-suc1- purpose;; or r in rooms or areas specifically approved for such storage by the Airport Manager, or in Underwriter's Approved Safety Cans. ( "Underwriter's Approved Safety Cans" seems kind of vague. Exactly what is the City looking for here?) (b) No person shall keep or store lubricating or waste oils in or about an aircraft the hangars, unless the ROVl ..a r+frat rial- may-be oil is kept in a room specifically designated for oil storage or stored P-ROV f E-k ktd -R - H €R4hat, rm re than s' cuppl: of4ut catieg -ell-may- be- keptan- eraboutahangar-ualess in containers or receptacles approved by insurance underwriters. ( "insurance underwriters" is awfully vague and unenforceable. Exactly what is the City looking for here ?) (c) Lessees shall provide suitable metal receptacles with covers for the storage of waste, rags and other rubbish. Suchxece-ptac1esahatl-be+netal All used waste and used rags or other rubbish shall be removed in accordance with the City ordinance governing trash and rubbish disposal. 12.05.020 Open flame operations. Except as may be specifically authorized by the Airport Manager, no person shall conduct any open flame operations any4 a4gar•er- antwhere on the Airport unless fire extinguishers are close at hand to control any hazard that may arise. 12.05.030 Smoking. 38 No person shall smoke on the Airport, in any hangar or shop, servicing area, gasoline storage area or in any building, room or place on the Airport where smoking is specifically prohibited by the City Fire Chief or the Airport Manager. 12.05.040 General requirements. (a) The holder of a land lease on the Atl lessees - the- Airport shall keep the premiseshangar- apron- andramp -areas leased by them xespeGtivc -yror -and the apron and ramp areas used in their operations, clean and clear of oil, grease, wasteandeNaer materials ander trash, except as may be specifically authorizedprevided- to the contrary in the leaseanyspeclf rG- ease- er- cenk4�acts. (b) No person shall keep uncovered trash containers on any part of the Airportin -any ar a. No motor vehicle for hauling trash, dirt, or any other materials shall be operated on the Airport unless thesuch vehicle is constructed so as to prevent the contents thereof from dropping, shifting or leaking, or otherwise escaping - therefrom. No person shall spill dirt or any other materials from a vehicles on the Airport. Areas used for trash or garbage containers shall be kept clean and sanitary at all times. (c) No persons shall dispose of garbage, papers, refuse or other material on the Airport except in receptacles provided for that purpose, and in complianceon- cenfim alien with the City of Kenai ordinance on garbage and trash removal. 12.05.050 Fire extinguishers. All tenants or lessees on the Airport shall supply and maintain such adequate and readily accessible fire extinguishers as are provided by Fire Underwriters for the particular hazard involved or -as may be determined to bedeemed necessary by the City Fire Chief-af -the- City -e Kene1. 12.05.060 Hazards. No tenant or lessee on the Airport shall store or stock material or equipment in such a manner as to constitute a hazard to persons or property. 12.05.0770 Hazardous substance release. (a) A person who releases a hazardous substance on the Airport shall immediately contain and clean up the release usin methods that ensure that contamination does not enter or spread on or in Airport and or water or in an Airport storm water drainage system. A person responsible under this chapter for a release shall immediately report the release to the Airport Manager and to each regulatory agencyjhat requires such a report. Submission of a report to the Airport Manager under this subsection does not satisfy any other applicable requirement for reporting a release of a hazardous substance to an re.ulator agency that has jurisdiction. 39 (b) If a person responsible under this chapter for a release does not take immediate action to report, contain, and clean up the release, the City may report, contain, or clean up the release as the City determines appropriate under the circumstances. The City may seek reimbursement for the Cites costs of assessment, reporting containment and cleanup as applicable from any person responsible for the release. (The above section was adapted from 17 AAC 45.050.) 12.05.000 Special definitions, In this chapter (a) "hazardous substance" means any substance that is defined under an environmental law as hazardous waste. hazardous substance hazardous material toxic pollutant contaminant petroleum petroleum product or oil' b "release" has the meani iven in AS 46.03.826: and c " responsible " when used in re +ard to hazardous substance contamination. means having materials contributed to assumed under an assignment of lease, or being otherwise liable for contamination by law or contract- (These definitions were adapted from 17 AAC 45.900) Sections: 13.05.010 13.05.020 13.05.030 13.05.040 13.05.050 13.05,060 Chapter 13.05 FEES AND PAYMENTSAIRPCORT434LL4l4G Payments. Delinquent bills. Land Ground- rental charges. Concessionaires. Military / government aircraft. Airport user fees and terminal rent 13.05.010 Payments. All billings are payable at the City Clerk's office within fifteen (15) days after presentation unless otherwise noted thereon. (How is the date of 'presentation" determined? Is it the date of the bill, the date the bill is mailed, or the date the person receives the bill? Whichever way the City prefers to 40 )lern ha. Alaska's Best Travel 0:tuba- 11,2911 City of Kenai Airport Management 210 Fidalgo Ave. Kenai, AK 99611 Dear Mary Bondurant; After nearly 17 years of being a tenant in the Kenai Airport, it is time for me to retire. 1 will vacate my rental suite 120, on or by the I 56 of December, 2011. I will arrange for J & D Painting to repaint the walls at my expense. I will return keys for the door, remove all signage, disconnect the telephone service and arrange for mail forwarding. I have leased thru many airport managers beginning with Randy and ending with you. I want to say that it has been a pleasure working with you and your staff. Should you need attention to other details, please reach me on my cell at 907- 690 -2339. Sincerely, Alaska's Best Travel enai Municipal Airp® 72.67% 27.33% Item 1Ib October, 2011 8,142 GRANT 2,225 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 4,883 1,815 6,698 5,976 722 148 6,846 March 5,139 2,054 7,193 6,810 383 180 7,373 April 4,701 1,908 6,609 6,384 225 179 6,788 May 4,941 2,030 6,971 6,478 493 186 7,157 June 5,521 2,138 7,659 7,005 654 286 7,945 July 8,371 2,305 10,676 10292 384 414 11,090 August 7,645 2,757 10,402 9,853 549 399 10,801 September 5,635 2,261 7,896 7,109 787 418 8,314 October 5,917 2,225 8,142 7,613 529 305 8,447 November 7,371 December 6,435 Totals 57,638 21,390 79,028 87,589 5,245 2,672 81,700 September 2011 $16,883 2012 $20,279 $27,500 $25,000 $22,500 $20,000 $17,500 $15,000 $12,500 $10,000 $7,500 $5,000 $2,500 $0 ;A.,. .anar Terminal - Vehicle Parking Revenues Vehicle Parking Revenues Jul Aug Sept Oct Nov Dec lan Feb Mar Apr May Jun ■FY11 a FY12 Municipal Airport item I lc. FLOAT PLANE BASIN ACTIVITY 2007- 2011 OPERATIONS Month 2011 2010 2009 2008 2007 APRIL 0 0 0 0 0 MAY 49 109 118 66 0 JUNE 135 170 190 118 72 JULY 162 228 242 242 178 AUGUST 124 192 278 192 221 SEPTEMBER 86 83 146 119 173 OCTOBER 56 20 68 48 30 NOVEMBER Closed Closed Closed Closed Closed Total 612! 802 10 2 785 674 not reported FUEL SALES Month MAY JUNE JULY AUGUST SEPTEMBER OCTOBER Total 2011 2010 2009 2008 2007 $150 $521 $368 $561 $0 $2,558 $2,027 $2,714 $3,443 $988 $4,421 $3,870 $2,815 $3,252 $2,660 $3,535 $2,497 $3,390 $3,506 $2,721 $2,211 $1,447 $2,498 $1,735 $2,493 $576 $43 $642 $100 $162 $13,451 $ 1.0,405 $12,427 $12,596 $9,024 Slips Rented Private Commerical 12 0 Rev 6/2008 ItemIW. FAA ALASKAN REGION AIRPORTS DIVISION AIRPORT IMPROVEMENT FROG' • M (AIP) FY 1982 - FY 2011 Note: Each project within a "Various Locations" grant is listed under the specific airport where the work or equipment is being applied. For those projects, the various grant number is listed and the project description begins with "[Various Grntj ". Obligated: Closed: Entitlement Discretionary TOTAL 3 -02- 0341 - 001 -1997 Improve Snow Removal Equipment Building (ST BD SN) Install Runway Lighting (ST RW LI) Construct Taxiway (ST TW CO) Extend Runway 17/35 (ST RW IM) Expand Apron (ST AP IM) 6/13/1997 6/7/2000 $240,000 6/13/1997 6/7/2000 $175,000 6/13/1997 6/7/2000 $100,000 6/13/1997 6/7/2000 $2,114,390 6/13/1997 6/7/2000 $400,000 $3,674,390 $0 $240,000 $0 $175,000 $0 $100,000 $0 $2,114,390 $0 $400,000 $0 $3,674,390 Kenai Kenai Municipal (ENA) 3 -02- 0142 - 001 -1983 3 -02 -0142- 002 -1985 3 -02- 0142 -003 -1986 3 -02- 0142- 004 -1987 3 -02- 0142 - 005 -1988 3 -02- 0142 - 006 -1989 3 -02- 0142 -007 -1989 3 -02- 0142 - 008 -1990 3 -02 -0142- 009 -1991 3 -02- 0142 - 010 -1991 3 -02- 0142 - 011 -1991 3 -02- 0142 -012 -1992 3 -02- 0142 - 013 -1992 3 -02- 0142 - 014 -1993 3 -02- 0142 - 015 -1993 3 -02- 0142 - 016 -1993 3 -02- 0142 -017 -1993 3 -02- 0142 - 018 -1994 3 -02- 0142- 019 -1994 3 -02- 0142 - 020 -1995 3- 02- 0142 -021 -1995 3 -02- 0142 -022 -1997 3 -02- 0142- 023 -1997 Install Apron Lighting (ST AP LI) Rehabilitate Apron (RE AP IM) Construct Apron (CA AP CO) Acquire Aircraft Rescue & Fire Fighting Safety Equipment (ST EQ MS) Conduct Airport Master Plan Study (PL PL MA) Rehabilitate Runway 1/19 (RE RW IM) Construct Taxiway (CA TW CO) Rehabilitate Apron (RE AP IM) Install Apron Lighting (ST AP LI) Construct Taxiway (ST TW CO) Construct Runway 01/19 (ST RW CO) Acquire Security Equipment (SA EQ SE) Construct Taxiway (ST TW CO) Construct Taxiway (ST TW CO) Improve Access Road (OT GT AC) Rehabilitate Taxiway (RE TW IM) Conduct Miscellaneous Study (PL PL MS) Rehabilitate Runway 1 (RE RW IM) Rehabilitate Taxiway (RE T W IM) Rehabilitate Runway Lighting (RE RW LI) Construct Taxiway (ST TW CO) Acquire Snow Removal Equipment (ST EQ SN) Acquire Land for Development (ST LA DV) Acquire Aircraft Rescue & Fire Fighting Vehicle (SA RF) Improve Runway Safety Area 1/19 (ST RW SF) Acquire Security Equipment (SA EQ SE) Acquire Snow Removal Equipment (ST EQ SN) Acquire Snow Removal Equipment (ST EQ SN) Rehabilitate Taxiway (RE TW IM) Acquire Security Equipment (SA EQ SE) Install Guidance Signs (SA OT SG) Acquire Snow Removal Equipment (ST EQ SN) Conduct Airport Master Plan Study (PL PL MA) Acquire Snow Removal Equipment (ST EQ SN) Extend Taxiway (ST TW IM) Construct Runway 1R -19L (ST RW CO) Construct Aircraft Rescue & Fire Fighting Training Facility (ST OT RF) 9/28/1983 9/28/1983 9/28/1983 9/28/1983 1/17/1986 $24,750 $0 $24,750 1/17/1986 $214,116 $0 $214,116 1/17/1986 $236,208 $0 $236,208 1/17/1986 $12,375 $0 $12,375 9/25/1985 4/19/1988 567,060 $0 $67,060 9/9/1986 2/4/1988 $336,562 $0 $336,562 9/9/1986 2/4/1988 $60,570 $0 $60,570 9/9/1986 2/4/1988 $269,766 $0 $269,766 9/9/1986 2/4/1988 $30,937 $0 $30,937 8/27/1987 4/20/1990 $7,433 $0 57,433 8/27/1987 4/20/1990 $576,367 $0 $576,367 8/27/1987 4/20/1990 $26,219 $0 $26,219 8/27/1987 4/20/1990 $18,592 50 $18,592 8/27/1987 4/20/1990 $63,234 $0 $63,234 8/27/1987 4/20/1990 $42,768 $0 $42,768 9/14/1988 4/11/1990 $247,384 $0 $247,384 4/21/1989 11/17/1992 $53,242 $0 553,242 8/23/1989 12/4/1990 $687,838 $0 $687,838 8/23/1989 12/4/1990 $193,523 $0 $193,523 8/23/1989 12/4/1990 $146,980 $0 $146,980 8/23/1990 2/28/1991 5230,368 50 $230,368 9/10/1991 11/17/1992 $96,383 $0 $96,383 8/7/1991 10/9/1991 $147,611 50 $147,611 EQ 9/9/1991 10/13/1992 $270,832 $0 $270,832 5/28/1992 9/8/1992 12/2/1992 1/28/1993 6/15/1993 7/13/1993 6/20/1994 6/22/1994 6/5/1995 4/25/1995 7/8/1997 7/8/1997 12/17/1997 1/10/1996 $1,452,816 $0 51,452,816 12/22/1994 $129,122 $8,254 $137,376 11/15/1993 $172,678 $0 5172,678 11/22/1993 $242,944 $0 $242,944 12/20/1994 5172,926 $0 $172,926 12/13/1994 $79,510 50 $79,510 1/12/1996 $34,888 $0 834,888 6/1/1995 $207,943 $0 $207,943 8/15/2000 $281,155 $0 $281,155 10/24/1998 $197,847 $0 5197,847 12/6/2000 $788,749 $445,083 $1,233,832 12/6/2000 8303,482 $0 $303,482 9/26/2000 $53,128 $6,017,761 $6,070,889 Wednesday, October 12, 2011 Page 50 of 103 Obligated: Closed: Entitlement Discretionary TOTAL 3 -02- 0142- 023 -1997 3 -02- 0142 - 024 -1998 3 -02- 0142 - 025 -1999 3 -02- 0142 - 026 -2000 3 -02- 0142 -027 -2001 3 -02- 0142 - 028 -2002 3 -02- 0142 -029 -2002 3 -02- 0142 - 030 -2002 3 -02 -0142- 031 -2003 3 -02 -0142- 032 -2004 3 -02- 0142 - 033 -2004 3 -02 -0142- 034 -2005 3 -02- 0142 - 035 -2006 3- 02- 0142 -037 -2007 3 -02- 0142 - 038 -2008 3 -02- 0142- 039 -2009 3 -02- 0142 - 040 -2009 3 -02- 0142 - 041 -2009 3 -02- 0142 - 042 -2009 3 -02- 0142 - 043 -2009 3 -02- 0142 -044 -2010 3 -02- 0142 -045 -2010 3 -02 -0142- 046 -2011 3 -02- 0142 - 047 -2011 3 -02 -0142- 048 -2011 Construct Aircraft Rescue & Fire Fighting Training 12/17/1997 9/26/2000 $1,671,894 $1,682,200 53,354,094 Facility (ST OT RF) Construct Aircraft Rescue & Fire Fighting Training 4/29/1998 9/26/2000 50 $2200,000 $2,200,000 Facility (ST OT RF) Acquire Snow Removal Equipment (ST EQ SN) Improve Aircraft Rescue & Fire Fighting Building (SA 8D EX) Improve Aircraft Rescue & Fire Fighting Building (SA BD 4/16/2001 2/24/2005 $2,162,263 $1,900,000 $4,062,263 EX) Acquire Snow Removal Equipment (loader, sander /truck unit) (ST EQ SN) Security Enhancements (SE SE SE) Extend Runway Safety Area (Environmental) Phase 1 (SA RW SF) Extend Runway (Environmental) Phase 1 (ST RW IM) Acquire Handicap Passenger Lift Device (ST TE MS) Improve Access Road (ADA Access) (OT GT AC) Update Airport Master Plan Study (PL PL MA) Security Enhancements (ST EQ SE) Extend Taxiway (Multi -Year, Year 2) (ST TW IM) Extend Taxiway Extend Twy P (ST TW IM) Rehabilitate Runway 01L/19R RSA, provide standard(Phase 2) (RE RW IM) Improve Seaplane Base extend & widen waterlane (phase 1) (ST SB CO) Improve Seaplane Base extend & widen waterlane (phase 2a) (ST SB CO) Rehabilitate Runway 01U1 9R Rehabilitate runway lighting (RE RW IM) Rehabilitate Runway 01 L/19R (Phase 2) (RE RW IM) Improve Seaplane Base extend & widen waterlane (phase 2b) (ST S8 CO) Rehabilitate Runway 01U1 9R rehab. runway 1/19 & provide RSA (phase 3) (RE RW IM) Construct Sand and Chemical Storage Building Construct Sand /Urea Bldg (ST BD SN) Acquire Snow Removal Equipment Acquire Plow Truck Attachment (ST EQ SN) Acquire Aircraft Rescue & Fire Fighting Vehicle Acquire ARFF Truck (SA EQ RF) Rehabilitate Apron Rehab Apron, Phase 1 (Design and Construction Block 1, FY09 Part A) (RE AP IM) Rehabilitate Apron Rehab Apron, Phase 2 (Design and Construction Block 1, FY09 Phase 8) (RE AP IM) Rehabilitate Apron Apron Rehabilitation - 2009 ARRA Funded (RE AP IM) Construct Apron Float Plane Basin Development, Phase 1 (ST AP CO) Conduct Airport Master Plan Study Supplemental Master Plan (PL PL MA) Acquire Snow Removal Equipment Acquire SRE, FY11 Phase 1: Grader /Loader (ST EQ SN) Wildlife Hazard Assessments (PL PL WH) Acquire Snow Removal Equipment Acquire SRE, FY 11 Phase 2: Tow Broom (ST EQ SN) 3/24/1999 6/12/2000 $267,816 $0 $267,816 8/4/2000 8/27/2004 $671,853 50 $671,853 9/19/2002 6/30/2004 $206,923 $0 $206,923 9/19/2002 4/21/2006 $78,125 $241,389 $319,514 9/19/2002 8/1/2006 $163,204 $4,617 5167,821 9/19/2002 8/1/2006 $188,359 50 5188,359 8/21/2003 5/22/2007 530,937 $0 $30,937 8/21/2003 5/22/2007 $955,086 50 $955,086 8/25/2004 4/14/2008 $350,489 $9 $350,498 8/30/2004 2/14/2007 5506,666 $0 $506,666 5/24/2005 4/10/2007 $364,079 50 5364,079 5/24/2005 4/10/2007 $1,677,996 50 51,677,996 7/24/2006 8/28/2009 50 $2,500,000 $2,500,000 7/24/2006 8/28/2009 $383,763 50 $383,763 7/24/2006 8/28/2009 $1,200,000 50 $1,200,000 7/24/2006 8/28/2009 $348,566 50 $348,566 7/24/2006 8/28/2009 $720,991 54,540,286 55,261,277 4/20/2007 6/21/2010 $27,567 $1,000,000 $1,027,567 4/20/2007 6/21/2010 $367,916 $2,515,429 $2,883,345 6/11/2008 8/12/2009 $432,436 50 $432,436 2/2/2009 5/4/2010 551,841 $0 $51,841 2/12/2009 6/13/2011 $0 $843,698 $843,698 2/2/2009 $721,837 50 $721,837 6/22/2009 $1,211,400 $2,891,950 $4,103,350 5/18/2009 12/10/2010 $0 $0 $0 8/13/2010 5199,614 50 $199,614 7/23/2010 5531,608 50 5531,608 3/14/2011 $666,476 5181,517 $847,993 3/14/2011 $118,037 50 $118,037 8/25/2011 $789,347 $0 $789,347 Wednesday, October 12, 2011 Page 51 of 103 the ay of KENAI, ALASKA Itevfle® Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2591 -2011 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $761,650 IN THE KENAI INDUSTRIAL PARK CAPITAL PROJECT FUND FOR A STATE GRANT. WHEREAS, the City of Kenai received a grant from the State of Alaska for $761,650 for Kenai Industrial Park Development; and, WHEREAS, it is in the best interest of the City of Kenai to appropriate these grant funds for the purpose intended. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Kenai Industrial Park Capital Project Fund Increase Estimated Revenues: State Grant Increase Appropriations: Construction $761,650 $761,650 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of November, 2011. Corene Hall, Deputy City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: October 19, 2011 Adopted: November 2, 2011 Effective: November 2, 2011 New Text Underlined [DELETED TEXT BRACKETED] KENAI, ALASKA "Village with a Past, Gi with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 MEMO: TO: City Council FROM: Rick Koch DATE: October 27, 2011 SUBJECT: Ordinance 2591 -2011, Increasing Estimated Revenues and Appropriations by $761,650 in the Kenai Industrial Park Capital Project Fund The purpose of this correspondence is to submit for your action, and recommend approval of the above referenced ordinance. This ordinance will appropriate $761,650 from a State Grant for construction of the Kenai Industrial Park located along marathon Road in proximity to the Kenai Municipal Airport. Thank you for your attention in this matter. If you have any questions, please contact me at your convenience. the ay or KENAI. ALASKA Suggeste CITY OF KENAI ORDINANCE NO. 2596 -2011 Item i t AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $100 IN THE AIRPORT FUND AND BY 54,000 IN THE AIRPORT IMPROVEMENT CAPITAL PROJECT FUND FOR THE FINAL ENGINEERING AND DESIGN OF THE AIRPORT APRON PAVEMENT REHABILITATION. WHEREAS, the FAA has approved funding for additional work to be included in the Apron Improvement Project; and, WHEREAS, the estimated cost of the additional work is $4,000; and, WHEREAS, the FAA will fund 95 %, the State of Alaska will fund 2.5 %, and the Airport Fund will provide 2.5 %. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, estimated revenues and appropriations be increased as follows: Airport Fund Increase Estimated Revenues: Appropriation of Fund Balance Increase Appropriations: Transfer to Capital Project Fund Airport Improvements Capital Project Fund Increase Estimated Revenues: Transfer from Airport Fund Federal Grants State Grants Increase Appropriations Engineering $100 100 $100 $3,800 $100 4,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of November, 2011. ATTEST: Corene Hall, Deputy City Clerk 74 Approved by Finance: 7 PAT PORTER, MAYOR Introduced: October 19, 2011 Adopted: November 2, 2011 Effective: November 2, 2011 i@1t8nicipsal Airport Memo "Serving't e'Qlr rK.evtrw Pent-flak()) 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907,283-7951 FAX 907-283-3737 To: Rick R. Koch- City Manager From: Mary Bondurant — Airport Manager Date: August 10, 2011 Subject: Ordinance No. 2596 -2011 The above ordinance is necessary to cover the professional services performed by the Airport consultants, Wince - Corthell- Bryson, on the Apron Rehabilitation Project and costs associated with the close out process. The FAA has reviewed and approved the revised engineering budget for the Apron Rehabilitation Project. Attachment www. ci. kenatak. us. the a, of KENA ,ALASKA Suggested t CITY OF KENAI RESOLUTION NO. 2011 -75 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE OF TRACT A -2, KENAI SPUR AIRPORT LEASE PROPERTY, T 5N R 11W SECTION 5, SEWARD MERIDIAN, THIRD JUDICIAL DISTRICT, STATE OF ALASKA, ACCORDING TO ATTACHED PRELIMINARY PLAT, WITH BUCCANEER ALASKA OPERATIONS, LLC. WHEREAS, Buccaneer Alaska Operations, LLC (Buccaneer) submitted an application to lease airport lands located outside of the Airport Reserve identified as Tract A -2 of the preliminary plat titled Replat Tract "A" Kenai Spur Airport Lease Property; and, WHEREAS, the Planning and Zoning Commission reviewed the application at its October 26 meeting and found that the lease was in compliance with the Zoning Ordinance and the Comprehensive Plan; and, WHEREAS, KMC 21.15.160(b) states the following: The City Manager may enter into a land lease that deviates from the standard form adopted under subsection (a) of this section, if: (1) The Manager believes the action is in the best interest of the City; and (2) The lease is approved as to folio_ by the City Attorney; and (3) The lease is approved by resolution of the City Council. WHEREAS, the City Manager believes that a deviation from the standard form is in the best interest of the City and the City Attorney has approved the attached Lease as to form; and, WHEREAS, KMC 21.15.010(b) states the following: The City may sell, convey, exchange, transfer, donate, dedicate, direct, or assign to use, or otherwise dispose of airport land outside of the Airport Reserve, including property acquired, held for, or devoted to a public use, in accordance with this chapter. Disposal or sale of lands shall be made only when, in the judgment of the City Council, such lands are not required by the City for a public purpose. ; and, WHEREAS, It is in the best interests of the City to lease Tract A -2 in order to generate revenue for the Kenai Municipal Airport and the property to be leased to Buccaneer LLC is not needed for a public purpose. Resolution No. 2011 -75 Page 2 of 2 NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the Council Authorizes the City Manager to enter into a Lease of Tract A -2, Kenai Spur Airport Lease Property, T 5N R 11W Section 5, Seward Meridian, Third Judicial District, State of Alaska, According to Attached Preliminary Plat Marked as "Exhibit A" with Buccaneer Alaska Operations, LLC. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of November, 2011. ATTEST: Corene Hall, CMC, Deputy City Clerk PAT PORTER, MAYOR then af; K I, ALASKA MEMO: "V ��aye with a Past, Gi y with a Future" 210 Fidalgo 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 27, 2011 SUBJECT: Resolution No. 2011 -75 — Buccaneer Alaska Operations, LLC, Tract A -2, Replat Tract "A" Kenai Spur- Airport Lease Property Attached is a lease application and proposed lease for the referenced Airport property located outside the Airport Reserve. Buccaneer Alaska Operations, LLC (Buccaneer) wishes to lease the property in order to install a "pig catcher, metering skid with coalescing filter and 6 inch pipeline for delivery of gas from Kenai Loop Field." The development plan calls for a 8'x20'x 8' tall pre- fabricated metal building (metering skid), enclosed on three sides, and painted to match the existing building with fencing material that matches existing fencing. A portion of the subject property is currently leased to Kenai Nikiski Pipeline, LLC (KNPL). KNPL submitted a request to amend its current lease with the City to delete a portion of the lease area to allow for Buccaneer to proceed with a lease for Tract A -2 as depicted in the attached proposed replat submitted by Buccaneer. The application to amend KNPL's lease with the City for Tract A -1 is being processed concurrent to Buccaneer's application for a new lease. Tract A -3 identified on the proposed replat is an undeveloped portion of Tract A which fronts the Kenai Spur Highway and is not requested for lease by either Buccaneer or KNPL. The Planning & Zoning Commission reviewed Buccaneer's lease application at its October 26 meeting. The Commission found that the lease was in compliance with the Zoning Ordinance and the Comprehensive Plan. At the same meeting, the Commission voted unanimously to proceed with the amendment to KNPL's lease concurrent with approval of Buccaneer's lease. October 27, 2011 Resolution No. 2011-75 - Buccaneer Alaska Operations, LLC, Tract A -2, Replat Tract "A" Kenai Spur - Airport Lease Property Page 2 of 2 The standard lease form used for airport leases outside the Airport Reserve was approved by Resolution No. 2007 -05, however, the attached lease was amended to raise the insurance requirement for Comprehensive General Liability from 1,000,000 to 5,000,000 in order to enhance insurance protection and includes a deviation from the rent redetermination schedule to require that the first rent redetermination occur in 2015 rather than 2017. Scheduling rent redeterminations in years ending in zero (0) or five (5) reduces the cost of administering leases. Buccaneer is current in their payments to the City and the Kenai Peninsula Borough. The City Attorney has reviewed the attached Lease of Airport Lands and approved it as to form. Should Council approve the Lease, the original would be forwarded to the Buccaneer for signature. cc: Mark Landt, Buccaneer Alaska Operations, LLC Attachments CITY OF KENAI 21.0 Fidalgo Avenue, Kenai, Alaska 99611 -7794 (907) 283 -7535 Ext. 223 LEASE APPLICATION For Land Outside the Kenai Municipal Airport Reserve +�iOR?Citl'3�1iIJSE;ONf:Y: `:`: 1. Name f Applicant Buccaneer Alaska Operations, LLC 2. Busineiss Name Same 3. Business Type (circle one) sole proprietor partnership comoradon L C 4. AK Business License No, 951676 5. Maili4 Address 952 Echo Lane, Suite 420, Houston, Texas 77024 6. Teleph me 713 468 -1678 7. Email Address mlandt @buccaneeralaska. com 8. Kenai ?eninsula Borough Sales Tax No. (if applicable) 9. Land Requested: platted, give legal description Attached 04501029 1$ not platted, attach a site plan showing the proposed dimensions and location on the Airport. I0. Proposed Use of the Property (Be specific) pig catcher, metering skid with coalescing filter and 6 inch pipeline for delivery of gas from Kenai Loop Field. 11. Lease Tenn Desired 20 years 12. If yoi plan to construct improvements or otherwise develop the property: a Attach a Development Plan (see attached checklist) bi Describe the building type, construction materials, size, etc. cl Construction beginning date November 2 , 2011 d Construction completion date (maximum of two years) Jain nary 1 . 2012 eII Estimated total cost of the proposed development & improvements $ 14. If yoi: would like the City to consider any additional information relating to your proposal, please put it in writing and submit it with this application. APPLIC,ANT"S SIGNATURE: rinted name: r / ;At- APPLICANT'S SIGNATURE: Printed name: Title: Page 1 of 3 CERTIFICATE OF OWNERSHIP AND DEDICATION hereby certify that 1 om the !owner of the real property shown a described hereon and that 1 hereby adopt to s plan of be :elan and by my free consent dedicate au rights-al-way and public areas to public use and grant all easements to the use shown. CITY or KENAI NOTARY'$ ACKNOWLEDGEMENT FOR: Subscribed and sworn before me this TRACT D F, G�G ;496 s PLAT APPROVAL This plot was approved by the KENAI PENINSULA 909000Ii PLANNING COMMISSION at me meeting or JULY 19, 2090, KENAI PENINSULA BOROUGH by Aatbarlied official KN -1531 A -2 16,021 SF 037 AC �N 83`49'20. 22 42' A -1 13,037 59 0.30 AC \�o ?oJ 2 edVy. \`O0.O \ 7 \OQ' LOT 1 9 X TRACT B -1 KN -96016 / \ y / 0' tee\ e v, Q- ' J \(-3065 / �v X20.00 A -3 15.849 SF 036 AC NORTH NOTES 44 *it egg♦ �^ *J 5N 'OI�� Affitis ,_ 6N THIS P ` _� G #' nil UrESEI VICINITY MAP Scale 1` = 1/4 Mile 1)) Water supply and sewage dlypasol systems shall be permitted only in c nfermonce with applicable requirements of 18 AAC 72 and le AAC ao 2) Na direct access to state m ir'o'ned ROWS pemsltted tin ess approved by State of Alaska Deportment of transportation and Public RaNM1ties. 3) Na permanAnt structure shall be constructed or placed within a easement which would interfere with then ability of a uxnity to use an ease t. 4) BUILDING SET BACK- A building set bock of 25 ft. is required from all streets rights - of-way unless a lesser standard re approved by resolution of the appropriate Pimaing Commission. REPLAT TRACT "A" KENAI SPLJR-A/RPORT LEASE PROPERTY CITY OF KENAI 210 FIDALGO AVE. KENAI. AK 99611 LOCATION 1.03 AC MA SITUATED 611HI6 A 90911014 OF GOVT LOTS I /BID 2. SECTION 5, 75N, 8114, 5.4., AK AND THE KENAI PENINSULA BOROUGH IN THE KENAI RECORDING DISTRICT_ I 13057 KENAI MUNICIPAL AIRPORT Lease Application for Land Outside the Kenai Municipal Airport Reserve DEVELOPMENT PLAN CHECKLIST (All items must be included before a lease application will be accepted.) A DEVELOPMENT PLAN MUST INCLUDE A DRAWING AND A NARRATIVE. 1. Drawings must be drawn to scale, but need not be prepared by an architect or engineer. Drawings must show the following: a. The layout of the lot showing the height(s), size(s) and location(s) of all ➢ Existing buildings ➢ Proposed buildings ➢ Existing and proposed antennas, poles, and towers b. Parking facilities (location and number of spaces) N/A c. Site improvements ➢ Areas to be cleared and method of disposal ➢ Proposed gravel or paved areas ➢ Landscaping plan (retention of natural vegetation and/or proposed planting areas) d. Building set backs e. Drainage plan and snow storage areas f. Traffic circulation plan (all entrances, exits and on -site access) g. Location of sign(s) — (sign permit required before installation) h. Fencing — (permit required before installation if height exceeds 6 feet) i. Curb cuts (where applicable) 2. Narrative must explain how your proposed use and development of the property will conform with: a. the zoning ordinance of the City h. the comprehensive plan of the City Installation of a 8'x20'x 8' tall pre fabricated metal building (metering skid), enclosed on three sides, and painted to match the existing building with fencing material that matches existing fencing. / TRACT 8-1 / / � ua, v 17 SCALE ,atir Bk \ / J >,- f • 1 r ,oyn " -- .� ,t i V/'�(�'RE i' 11---11 Il as, j$ nil 0.37 AC 9 �\ ( ,� Ca. � Roos u it I ' ,� —Jl • I 1- 1 I ( L. � I E:E, , I t1 BUCCANEER KENAI LOOP PIPELINE METER FACILITY SITE PLAN a C II V j\ 3 ( ; �_ .�-' t_ Ig ____..psi( —I „.....c..--„,,,,, _II ' : I I el i ACCES9 v» �I }nl , 1 CC t•to»N'W-� _ .a P.,n -� ( I t I FUTURE Q o S' , ki 15,889 SF 0.36 AC I 1 1 i ,: I � a ;;� ktg 11 w FUTURE {VII l I �t I f11 i ti 3,037 SF 0.30"AC • I/ ands, Inc at iaz� y � .m 'im ix,E m "`p es :o -` —. _ W> °- 11 E 1 1._ _ _ c-_.�_ _!.�_ t- MAINMAINNOTES STREET 1. PROPERTY IS CURRENTLY ONE S P PiBs,�T L011p4 PARCEL TRACT A KENAI SPURAIRPORT Vi LEASE PROPERTY SUM /ARSON. __ _ ----- ”— — --- -i _ 2. PROPOSED LOT USES ARE SHOWN — FOR TRACTS Al. A2,8g1 - ,-__�� wn.xm choanm su `�F 10Ft LEASE OF AIRPORT LANDS (Outside the Kenai Municipal Airport Reserve) THIS AGREEMENT, entered into this day of , 2011, by and between the CITY OF KENAI, 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794, a home -rule municipal corporation of Alaska (City), and BUCCANEER ALASKA OPERATIONS, LLC individually, whose address is 952 Echo Lane, Suite 420, Houston, Texas 77024, (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 lease to the Lessee the following described property (the demised premises) located in the Kenai Recording District, Third Judicial District, State of Alaska: Tract A -2, Kenai Spur Airport Lease Property, T 5N R 11W Section 5, Seward Meridian, Third Judicial District, State of Alaska, According to attached preliminary plat marked as "Exhibit A" and incorporated here by reference A. PURPOSE: The purpose for which the Lease is issued is: Location of pig catcher, metering skid (3 -sided metal structure that is approximately 8' x 20' x 8' in size) with coalescing filter, and the installation of an underground 6 -inch pipeline for delivery of gas from Kenai Loop Field to. B. TERM: The term of this Lease is for twenty (20) years, commencing on the 1st day of November, 2011, and ending on June 30, 2021. C. RENTAL PAYMENT: Subject to the terms of General Covenant No. D.9 of this Lease, rent 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. D.9) of the demised premises. The rent effective November 1, 2011, shall be $7,362.10 per year, plus applicable sales tax, based on the fair market value of $92,026.31 as of the date of this Lease, and thereafter rent is subject to redetermination pursuant to General Covenant No. D.9. 2. 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. Lease of Airport Lands— Page 1 of 19 Lessor: Lessee: 3. Rent for any period that is less than one (1) year shall be prorated based on the rate of the last full year. 4. In addition to the rents specified above, subject to General Covenant No. D.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) Interest at the rate of eight percent (8 %) per annum and ten percent (1O %) 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: 1. 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. Lease of Airport Lands — Page 2 of 19 Lessor: 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 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, cash, 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 99M 1. 7. CONSTRUCTION APPROVAL AND STANDARDS: Building construction shall be 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. In addition to other improvements and requirements set forth herein, construction shall include those structures and improvements set forth in the Development Plan Check List marked as "Exhibit B" and incorporated here by reference. 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 tenninate 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 be 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. Rent shall be first subject to redetermination for the fiscal year beginning July 1, 2015 based upon the fair market value of the premises. At each five (5) year interval thereafter, the City will have the fair market value determined by a qualified independent appraiser. Lease of Airport Lands — Page 3 of 19 Lessor: Lessee: 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 City (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 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. 13. RIGHT OF INSPECTION: City shall have the right at all reasonable times 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, or 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 Lessee, its 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, but need not be limited to insurance coverages commonly known as, or similar in kind to, public liability, products liability, property damage, cargo, aircraft, fire, 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 be by a company /corporation currently rated "A -" or better by A.M. Best. Lease of Airport Lands — Page 4 of 19 Lessor: Lessee: 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. 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 certificates of insurance within thirty (30) days of the date hereof as follows: Comprehensive General Liability Combined Single Limit (Bodily Injury and Property Damage): $5,000,000 Workmen's Compensation - As required by Alaska Statutes 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 be 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. The City may, at intervals of not less than five years from the beginning date of the term of this Lease and upon written notice to Lessee, revise the insurance requirements required under this Lease. City's determination to revise the insurance requirements will be based on the risks relative to the Lessee's operations, any insurance guidelines adopted by the City, and/or any change in applicable law. 15. COLLECTION ON UNPAID MONIES: Any or all rents, charges, fees, or other consideration which are due and unpaid at the expiration of voluntary or involuntary Lease of Airport Lands — Page 5 of 19 Lessor: Lessee: 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 modification shall not act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee financial Toss. 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 pennitted 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: 1) 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 Lease of Airport Lands — Page 6 of 19 Lessor: Lessee: 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. 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, during 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. Lease of Airport Lands —Page 7 of 19 Lessor: Lessee: 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 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 manner 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. Lease of Airport Lands — Page 8 of 19 Lessor: Lessee: 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 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. FINANCING: (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 may at any time acquire such lease shall be relieved of any further liability under such lease from and after a transfer of such lease. Lease of Airport Lands — Page 9 of 19 Lessor: Lessee: (b) A leasehold mortgagee, beneficiary of a deed of trust or security assignee, shall have and be 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 be 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 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 terms herein contained, subject to the following conditions: (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. (e) If a lending institution or its nominee or wholly owned subsidiary corporation shall hold a mortgage, deed of trust, or similar security interest in and to this Lease and shalt thereafter acquire a leasehold estate, derived either from such instruments or from the City, and if such institution, nominee, or corporation Lease of Airport Lands — Page 10 of 19 Lessor: Lessee: 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. 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 term 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 cheticals, 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. Lease of Airport Lands — Page l L of 19 Lessor: Lessee: As used herein, "hazard material" means a material or substance, as defined in 49 C.F.R. 1718, 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.F.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. 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, or regulation as aforesaid with respect thereto, including zoning ordinances, rules and regulations. Lease of Airport Lands — Page 12 of 19 Lessor: Lessee: 34. CARE OF PREMISES: Lessee, at its own cost and expense shall keep the teased 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 liens obtainable or 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 connection 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 shall 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 be 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 Lease of Airport Lands — Page 13 of 19 Lessor: Lessee: ground lease and all the terms of any mortgage, deed of trust, or security assignment 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 INTEREST: 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 14 of 19 Lessor: Lessee: 41. NOTICES: (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. (b) 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 least 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 terra, 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 15 of 19 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 be 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 16 of 19 Lessor: Lessee: only after, to the satisfaction of the City 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 WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. LESSOR: CITY OF KENAI By: Rick R. Koch City Manager LESSEE: BUCCANEER ALASKA OPERATIONS, LLC By: Its: (If Lessee is a corporate style entity) ATTEST: Name Title Lease of Airport Lands — Page 17 of 19 Lessor: Lessee: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this day of , 2011, by , the of Buccaneer Alaska Operations, LLC, an Alaska limited liability company, on behalf of the limited liability company. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before nie this day of , 2011, by Rick R. Koch, City Manager for the City of Kenai. Approved as to lease form by City Attorney: Approved by Finance Director: Lease approved by Council on Notary Public for Alaska My Commission Expires: Lease of Airport Lands — Page 18 of 19 Lessor: Lessee: Corene Hall, Acting City Clerk Lease of Airport Lands — Page 19 of 19 Lessor: Lessee: CERTIFICATE OE OWNERSHIP AND DEDICATION hare9y "'Mt tam re the t the "el news 1 n de.; 419 MecE 09 Preen and that Im hereby Vein this pion al una--. a by tar free teemcate m rights -at -way Rebus v es to public us. el grant ml easements to the use shown. DIY OF KENAI NOTARYS_ACKNONIEDQENt I FOR: Subscribed anE sworn before me ma doy lay m.f mnson enures 3010 PLAT APPROVAL PEMINAA .0s 997/9099 ey f9e <00A SVIA BORWLH PLANNING COLIMISSION at the 0191699 0l 2010. JULY 19. KENAI PENIrvOULA 909011 0 a TRACT 0 fig at // / ‘, G �44 H6 Y. /p KN -1531 LOT 1 TRACT B -1 A -2 16,02107027 AC N BT45IDepE A -1 13,027570,20 AC \(ODA 1 \■U, KN -96016 NOTES c) w0FC supply w «age a nntemz enau h >d vn i`1� ac 9a lomaance h 0p0 c e reedy a 10 AAG a B A 2) Na wheat access to state ^OPtalnee ROWS p9 ,il19a dsleso 0p7 l0ae stele of Masse OTiartmel of Inansoort allow had Rubric reasnies 3) No a e ry awn a� m a aced 900 n ta) m,Allet trains Interere with me ability o a u utility to use bork streets !ants -Of P 0Wayy unless c■lia a tstandout :s6u7e7romd by s'e soun00 of the appropriate 71091119 = mmiseal. RED DST. REPLAT TRACT 530 KENAI SPUR — AIRPORT LEASE PROPERTY PTY OF KENAI 2m FIDAL 0 AK, NN, 9 0,00 1)00 102 AC. MA 0IFOAIED AMA A POR RON OF GOYS LOTS PimNRAA 97,00001 TIN'1107 KENAI H(CO011900 KENAI m X D 1 I TRACT ! I__ _ I i ± \ I eIIIIIII� C� N. l' dlt �a �� II (( �RE h 6.021500.37 AC/ { ,n� a Coe. H tea. I�- i I � � --I, i ..�.i_ ifs _ _ _ 1 i y t I' 1 4I 1 1 E.m I OM 1111 AIIIIIIII BUCCANEER KENAI LOOP PIPELINE METER FACILITY SITE PLAN _ .e t "PI i I \.1 "� G f ♦ACCESS /I I i ell ew.rw_ /11 Ln1 ! $ � Ili �i .. _..== riI / - i i i , I! ffii- • J I" I i !, l .�15_y.w �.J / m,,,J 1 FUTURE (3, 1 i RI Aa i 0 pI 15.$49 SF 0.96 AC 3 11 .� lj c18 I 1 I '_ Li; It n 1. nod FNVPE ICI :�Ii A.9 ,i-' 1 ,I I ' it 13.037 SF 0.30-75e- I i. I ^ ^ $p ::fl: GALVA* INC ,:n AUT MAIN STREET pyy 1. PROPERTY ISRR YO E L.T LOOI- PARCEL TRACTANF.NAI SPURTURPORT LEASE PROPERTY SUBONWON. 2. ORGANISM LOT IIR£SSRE SKIM Nu... w i__ _ —"'-- — _ TOR TRACTS Al. A2..9 M. ''''' 1 OFI BUCCANEER LEAdE PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, 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 [196573 a printed copy of which is hereto annexed was published in said paper one each and every day consecutive for one successive and day following dates: November 8, 2011 in the issues on the SUBSCRIBED AND SWORN to me before 8th day of November 2011 NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26- Aug -12 KENAIAIRPORT COMMISSION NOVEMBER. 10, 2011 7:00 P.M. KENAI CITY COUNCIL CHAMBERS htto://www,ci.kenai.ak.us AGENDA ITEM 5: OLD BUSINESS a. Discussion::— Airport Regulations -- Chapters 8.05:010 - 12.050,090 ITEM 11: ADJOURNMENT 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://www.ci.kenai ak,us Corene Hall, CMC Deputy City Clerk 0941/211