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HomeMy WebLinkAbout2011-12-08 Airport Commission PacketKENAI AIRPORT COMMISSION DECEMBER 8, 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 -- November 10, 2011 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS 5 -a. Discussion -- Airport Regulations -- Chapters 11.05 - 12.050.090 ITEM 6: NEW BUSINESS 6 -a. Discussion -- Ma & Pa Alaskan Treasures, Inc. -- Draft Purchase Agreement ITEM 7: REPORT 7 -a. Commission Chair 7 -b. Airport Manager 7 -c. City Council Liaison ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION 8 -a. January 12, 2012 ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM 11: INFORMATION ITEMS 11 -a. 11 -b. October 2011 Airport Manager's Report November 2011 Airport Manager's Report ITEM 12: ADJOURNMENT PLEASE CONTACT US IF YOU WILL NOT BE ABLE TO ATTEND THE MEETING: COREY -- 283 -8250 OR MARY -- 283 -7951 item 30 KENAI AIRPORT COMMISSION NOVEMBER 10, 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: A quorum was present. Chair H. Knackstedt, J. Bielefeld, G. Feeken, R. Rogers J. Zirul, E. Mayer, L. Porter Airport Manager M. Bondurant, Administrative Assistant E. Shinn, Council Member Gabriel ITEM 2: AGENDA APPROVAL MOTION: Commissioner Bielefeld MOVED to approve the agenda as presented and Commissioner Rogers SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY -- October 13, 2011 Spelling corrections were noted. MOTION: Commissioner Bielefeld MOVED to approve the amended meeting summary of October 13, 2011 and Commissioner Rogers SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None. ITEM 5: OLD BUSINESS 5 -a. Discussion -- Airport Regulations -- Chapters 8.05.010 - 12.050.090 The Commission reviewed Chapters 8.05.010 through 10.05.030 and noted comments and changes would be included in the draft document for administration to review. ITEM 6: NEW BUSINESS -- None. ITEM 7: REPORT 7 -a. Commission Chair -- Knackstedt advised the Commission on Planning and Zoning decisions pertaining to airport land. 7 -b. Airport Manager -- Bondurant reported Eileen Bechtol with Bechtol Planning and Development plans to attend the January 12, 2012 commission meeting to request input regarding the City Comprehensive Plan. Bondurant noted the FAA had contacted her regarding Palmer Airport's desire to host a breakfast in a joint event with the Kenai Peninsula Air Fair. Bondurant noted the airport had been busy with snow removal; the airport was preparing to enter NOTAMS directly into the digital notam system; there was a meeting on November 8 with the Emergency Control Plan participants to review the plan and conduct an exercise which is a PART 1.39 requirement; and, noted the airport was collecting a $500 littering fine from an aircraft that left four bags of trash on the apron. 7 -c. City Council Liaison -- Council Member Gabriel reviewed the November 2, 2011 . City Council meeting. ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION 8 -a. December 8, 2011 No commissioners requested an excused absence from the December 8, 2011 meeting. ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS Bielefeld noted he had to shovel a snow berm by hand recently. ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD -- None. ITEM 11: INFORMATION ITEMS ITEM 12: MOTION: Alaska's Best Travel -- letter from Dottie Fischer October 2011 Enplanements October 2011 Float Plane Basin Activity FAA Alaskan Region Airports Division AIP FY1982 - 2011 Ordinance No. 2591.2011 Ordinance No. 2596 -2011 Resolution No. 2011 -75 ADJOURNMENT Commissioner Rogers 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 9:15 p.m. Meeting summary prepared and submitted by: Corene Hall, CMC, Deputy City Clerk AIRPORT COMMISSION MEETING NOVEMBER 10, 2011 PAGE 2 Municipal Airport Memo «Se vinwLhe4reatw- X2.YUA.1/ Pens sul&' 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907-283-3737 To: Airport Commission From: Mary Bondurant - Airport Manage Date: November 30, 2011 Subject: Updating - Airport Regulations ■ In continuing Airport Commissions review of the Airport Regulations, attached are Chapters 11.05 through 12.050.090. Please be prepared to discuss these at the meeting. As a note, there are only four chapters remaining to review at the January 2012 meeting. Airport staff will then incorporate any changes into a draft document that will be submitted to City Administration for review and comment. Attachments www.KenaiAirport.com (2) require that an aircraft with an ex.Cosive A be fueled serviced and of the Airport; and B de a b.. d d n a re ote or other desi.nated area he rt as soon as air traffic and safet. considerations allow d I section "ex.iosive" has the meanin. liven in AS 11.81.900 plosive" 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. fasiUity pound: 11.05.050 Labeling 11.05.060 Fueling facilities. 11.05.065 Commercial fueling. 11.05.070 Fueling distributorship JRepealed) 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. (c)(b) No persons shall smoke, light a match, or have any open flame within 50 feet of an aircraft being fueled or defueled. 34 (d)(e) No person shall operate any radio transmitter or receiver or operate the switch of any electrical circuitapplianco off or on an aircraft during fueling or defueling. (e)(* 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 soilyand 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(g)) (f1(e-) No person shall use any material during fueling or defueling of aircraft thatwhich is likely to cause a spark or be a source of ignition. (g,10) No person shall start an engine of any aircraft when there is any gasoline on the ground under thesh aircraft. (h){g) Fueling hoses, containers, storage tanks, and related equipment shall be maintained in a safe, sound and non - leaking condition. fah) All fueling and defueling of aircraft shall be conducted at least fifty (50) feet from any hangar or other building. (1) No person shall fuel or defuel an aircraft without adequate fire extinguishers or equivalent fire protection equipment immediately available to the fueling location. (k) All fueling defuelinq 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 training. An .erson who en.a.es in fuel delive r. fuelin. defueiin 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 45055(d) 35 There sh. _ . -.e-.- safely >toring, di,pensing and otherwise- handling fucl and labriconts on the Airport (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) 1.05.035 Fuel will revention and re Ian. a An..erson who en.a es in fuel deliver fueli n. defuelin. or 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 opy 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; (B) 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 DOTBPF amendment to 17 AAC 45.055.) 11.05.040 Fueling apparatus electrical bonding tacility greunde 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 thern.Adequate- grounding-forhe 36 ex ee (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 fueling defuelinq or fuel storage on the Airport shall place on the person's storage tank, tank truck, fuel tender or other fuel container on the AirportTherecholl be adequate marking and labeling-on-storage-tan c and nk -trucks, including identifieatien of to identify the contents by fuel type and octane rating. specific types of -fuels and -fuel (Ord. 305) 11.05.060 Fueling facilities. Any fuel storage tank fuel dispensing apparatus or other fuel handling facilityplaced 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 personA . note install- aireratt f eling facilities on the Aires 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 on tip^ ta"s^ as 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.All-suc-h installations- stt eoofe • e.r e' 11.05.065 Commercial fueling. No .erson shall en.a.e in fuel deliver dis.ensin. or storage for commercial .urposes on the Airport without first obtaining 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 11.05065 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-he a hangars or in -any other building on the Airport, unless: PROS-that-swell- the materials aremay -be kept (1) in aircraft in the - proper receptacles installed in the aircraft-for-such purpose,; or (2) 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 p be oil is kept in a room specifically designated for oil storage or stored a hangar unless 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. Sudh rec • a€ 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 Ia-any-hangar or anywhere 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 A !lesion the- Airport shall keep the oremises . ve e•-airo -ra mp - areas leased by them-respectively—a -and the apron and ramp areas used in their operations, clean and clear of oil, grease, wasteond other materials ander trash, except as may be specifically authorizedprevided to the contrary in the lease (b) No person shall keep uncovered trash containers on any part of the Airportin arty area. No motor vehicle for hauling trash, dirt, or any other materials shall be operated on the Airport unless thesueh 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- cen#imaat en 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 bed-earned necessary by the City Fire Chief 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. 12.05.070 Hazardous substance release. (a) A person who releases a hazardous substance on the Airport shall immediately contain and clean up the release, using methods that ensure that contamination does not enter or spread on or in Airport land 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 agency that 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 any regulatory 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 'clean up the release as the City determines appropriate under the circumstances ., *'e City may seek reimbursement for the City's costs of assessment, reporting ce °$ainment. and cleanup as applicable from any person responsible for the rele..`e. (The above section was adapted from 17 AAC 45.050.) 12.05.090 Special definitions. In this chapter (a) "hazardous substance" me .r' any substance that is defined under an environmental law as haza .. us waste hazardous substance, hazardous material toxic polluta ,.,contaminant petroleum, petroleum product or oil, (b) "release" ha9'the meaning given in AS 46.03.826; and (c) "res *- Ghsible," when used in regard to hazardous substance contamination, me,. '` having materially contributed to assumed under an assignment of lease, e-'reinq otherwise liable for contamination by law or contract; (These definitions were adapted from 17 AAC 45.900) Chapter 13.05 FEES AND PAYMENTSAIoono,,.,, _oRT_BILIJNC Sections: 13.05.010 Payments. 13.05.020 Delinquent bills. 13.05.030 Land rental charges. 13.05.040 Concessionaires. 13.05.050 Military / government aircraft. 13.05.060 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 enai R4LInicipal Airport Memo Itrenibri "Ser tngythe/GreaterKenai. Penammule 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907- 2834737 To: Airport Commission From: Mary Bondurant - Airport Manage Date: November 30, 2011 Subject: Ma & Pa Alaskan Treasures, Inc. V C/ At the February 10, 2011 meeting, City Administration discussed and asked for a positive motion from Commission to move forward with a purchase request from Robert and Debra Loveall for Lot 2, Block 1, Gusty Subdivision. Attached is a memo and draft purchase agreement updating Commission on the status of this request. The draft purchase agreement includes all the provisions suggested by Commission. Attachments www.KenaiAirport.com \the ct'fj/' KENAI, ALASKA MEM o: "Village with a Past, Gt'ty with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 / FAX: (907) 283 -3014 www.ci.kenai.ak.us TO: Mary Bondurant, Airport Manager FROM: Christine Cunningham, Assistant to City Manager "/ k it \I \THROUGH: Rick Koch, City Manager DATE: November 21, 2011 SUBJECT: Lot 2, Block 1, Gusty Subdivision The purpose of this correspondence is to provide an update on the request from Ma & Pa Alaskan Treasures, Inc. to purchase the above - referenced property it currently leases from the Kenai Municipal Airport. Administration discussed the request to purchase with the Airport Commission at its February 10, 2011 meeting. A motion in support of the sale was passed unanimously. The Commissioner comments included a belief that the sale would not be detrimental to the future expansion of the Airport and recommendations of height and noise restrictions as well as aviation easements be included in the sales agreement. Since that time, the City Council passed Ordinance 2553 -2011, authorizing the sale. The language in paragraph 3, of the attached draft purchase agreement, includes restrictions taken directly from the FAA deed of release and the ordinance authorizing the sale. Please schedule the draft purchase agreement as a discussion item on the next regularly scheduled Airport Commission meeting agenda. Attachment cc: Ma & Pa Alaskan Treasures, Inc. PURCHASE AND SALE AGREEMENT THIS AGREEMENT is made by and between the City of Kenai, an Alaska home rule municipality (Seller) and Ma & Pa Alaskan Treasures, Inc., an Alaska corporation (Buyer). RECITALS WHEREAS, Seller is the owner of real property located at 11472 Kenai Spur Highway in Kenai, Alaska, and described as Lot 2, Block 1, Gusty Subdivision, Kenai Recording District, Third Judicial District, State of Alaska (the Property); and, WHEREAS, the Property is leased to Buyer under a 55 -year lease of the Property dated August 20, 1970 (as amended and assigned to Buyer)(the Lease). and Buyer has applied to purchase the Property; and, WHEREAS, under the terms of that Lease. Buyer as Lessee already owns and has a right to the structural improvements on the Property (subject to some conditions that do not apply); and, WHEREAS, by City of Kenai Ordinance No. 2553 -2011, the Kenai City Council authorized the sale of the Property to Buyer; and, NOW, THEREFORE. for good and valuable consideration, the receipt of which is acknowledged, the parties agree as follows: 1. Sale. Seller hereby agrees to sell the Property to Buyer and Buyer hereby agrees to purchase the Property from Seller, subject to the terms and conditions set forth herein. 2. Purchase Price. (a) Buyer agrees to purchase the Property for the sum of TWO HUNDRED THOUSAND DOLLARS AND NO CENTS ($200,000 US) (the "Purchase Price "). The Purchase Price may be paid either through third -party financing or through owner financing under the terms set out in subsections 2(b) and (c), respectively. (b) If third -party financing is utilized by Buyer, the portion of the purchase price not paid in cash through application of any funds produced by Buyer at Closing shall be paid in full through third -party financing at Closing. Buyer represents that PURCHASE AND SALE AGREEMENT Page 1 of 9 U: \general \mapa. agt. purch.111611 Buyer has consulted with lending professionals and reasonably believes such financing is available to Buyer. (e) If owner financing is utilized by Buyer, Buyer shall pay a down payment of $30,000, which down payment shall due in cash (or its equivalent) at Closing. The balance due (remainder of the purchase price and any closing or other costs due from Buyer) shall be paid in monthly installments over a term of 20 years with interest accruing at a fixed rate of 7.5% per annum. These terms shall be set forth in a promissory note signed by Buyer and guaranteed individually by Debora R. Loveall and Robert B. Loveall, jointly and severally, and further shall be secured by a first deed of trust on the Property and on any and all improvements thereon. Buyer and Debora Loveall and Robert Loveall shall further execute any such other documents as may be necessary to establish this financing under these terms. 3. Title. Title shall be conveyed by quitclaim deed. The instrument conveying title to the Property shall further include the following restrictions, promises, and/or covenants: (a) that the City of Kenai reserves unto that the grantee expressly agree for itself and its heirs, executors, administrators, successors. transferees, 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 of the Property, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for landing on or at and for taking off from or operating on Kenai Municipal Airport; and, (h) that the grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to restrict the height of structures, objects of natural grown, and other obstructions on the Property to a height of not more than 242 above mean sea level; and, (c) that the grantee expressly agree for itself and its heirs, executors, administrators, successors, transferees, and assigns to prevent any use of the Property which would interfere with landing or taking off of aircraft at the Kenai Municipal Airport, or otherwise constitute an airport hazard; and, (d) that all covenants heretofore stated shall run with the land and shall inure to the benefit of, and be binding upon the heirs, executors, administrators, successors, transferees, and assigns of the parties to the contract for sale and conveyance; and, PURCHASE AND SALE AGREEMENT Page 2 of 9 U:\general\mapa.agt.purch.111611 (e) that the City shall have a first right of the City to repurchase the Property at fair market value at the time of repurchase should Buyer or any of its executors, administrators. successors, transferees, or assigns propose to sell or otherwise transfer the Property to another person or entity; and, (f) that the conveyance is subject to all liens, encumbrances, restrictions, and covenants of record and are specifically, without being limited thereto, subject to any unreleased restrictions contained in the deed or deeds by which the City received title to the land. 4. Closing. At the time of Closing, Seller shall deliver to Buyer a quitclaim deed for the Property properly executed and acknowledged in proper form for recording and such other instruments and documents as may be reasonably required and customarily given by a Seller to consummate the transaction contemplated, and as may be reasonably required by the title company. 5. Closing and Other Costs. All escrow fees and closing costs in connection with this sale shall be paid by Buyer unless other-wise stated in this agreement. If Buyer desires to obtain a preliminary commitment for title insurance or title insurance to the Property, it shall be the responsibility of Buyer to obtain such commitment or insurance and to pay all costs associated with the commitment or insurance. Seller acknowledges that Buyer has previously paid a $4,500 deposit which payment was utilized to pay for the cost of an appraisal of the Property, which cost is the responsibility of Buyer and is satisfied. Any and all prepaid expenses or income of any kind and all taxes and assessments shall be prorated to the date of Closing. Each party shall bear its own costs and attorney's fees, except as otherwise expressly provided. 6. Assessments. If at the time of Closing the Property or any part thereof shall be or shall have been affected by an assessment or assessments which are or may become payable in annual installments, whether or not the first installment is then a charge of lien or has been paid, then for the purposes of this agreement all the unpaid installments of any such assessment, including those which are to become due and payable after Closing, shall under no circumstances be deemed to be due and payable by Seller at PURCHASE AND SALE AGREEMENT Page 3 of 9 U :A general \ mapa.agt.purch.111611 Closing or otherwise. Any said liens or assessments shall be paid and discharged by Buyer, at or before the Closing or Buyer may elect to take the Property subject to said liens or assessments. 7. Casualty to Property. If all or part of any of the Property or any structure thereon is destroyed or damaged by fire or other casualty, Buyer shall have the option to either: (a) complete the closing; but in such event. the net proceeds of any insurance proceeds prior to Closing shall be resolved according to the terms of the August 20, 1970 Lease; or, (b) refuse to accept title to the Property, in which case any portion of the Purchase Price paid shall immediately be refunded to Buyer. 8. Operation of the Property -- Buyer. During the period between the date of this agreement and the Closing, Buyer shall comply with the material terms, conditions, and provisions of the Lease. 9. Property Condition —AS IS; No Warranties. Buyer acknowledges that the conveyance of the Property shall be made by Seller to Buyer on an "AS IS, WHERE IS" basis, and with all defects and faults, latent or otherwise, including without limitation fire and water /flood damage and the environmental condition of the Property. Buyer acknowledges that Buyer is purchasing the Property in its present condition and that Buyer is relying solely on Buyer's own prior possession of the Property and structures thereon and on Buyer's own examination and inspections of the Property. Buyer is not relying on any statements or representations made by Seller or any agents or representatives of Seller. Buyer acknowledges that Seller makes no warranty or representation, express or implied or arising by operation of law, including that Seller makes no warranty of condition, habitability, merchantability, or fitness for a particular purpose of the Property or any structure thereon, or with respect to the economical, functional, environmental, physical condition, or any other aspect of the Property or any structure thereon. Seller specifically disclaims any warranty, guaranty, or representation, oral or written, past, present or future, as to or concerning: (1) the nature and condition of the Property or any part thereof, including, but not limited to, its water, soil, or geology, or the suitability thereof for any and all activities and uses that Buyer may elect to conduct on the Property or within any structure on the Property, or any improvements Buyer may elect to construct on the Property, or any income to be derived therefrom, or any expenses to be PURCHASE AND SALE AGREEMENT Page 4 of 9 U:Ageneral\ mapa.agt.purch.l 1 1611 incurred with respect thereto, or any obligations or any other matter or thing relating to or affecting the same; (ii) the absence of asbestos or any environmentally hazardous substances on, in, or under the Property or on, in or under any property adjacent to or abutting the Property or on, in or under any structure on the Property; (iii) the manner of construction or condition or state of repair or lack of repair of any improvements on the Property; (iv) the nature or extent of any easement, restrictive covenant, right -of -way, lease, possession, lien, encumbrance, license, reservation, zoning, condition or other similar matter pertaining to the Property, or portion thereof; and (v) the compliance of the Property or the operation of the Property or portion thereof with any laws, rules, ordinances or regulations of any government or other body. The provisions of this paragraph shall survive the execution and delivery of the deed by Seller and the closing of the transaction contemplated by this agreement. 10. indemnification; Waiver. (a) Buyer agrees to indemnify and defend Seller from and against any and all losses and liabilities, claims, costs (including costs of settlement, attorney's fees, consultant and expert fees), judgments, penalties, fines, and /or damages from personal injury, death, or property damage of any nature, resulting or arising from the sale of the Property or resulting or arising from or attributable to the operations or activities of Buyer under the Lease and Buyer's activities on or about the Property prior to Closing. Buyer waives any right, claim, or cause of action that Buyer may have against Seller with respect to the environmental conditions existing at the Property on the date of Closing. (b) Further, if contamination of the Property or other property by a Hazardous Material(s) occurs or has occurred due to or arising in any way from Buyer's operations on the Property as an occupant and /or lessee of the Property prior to Closing (or thereafter as owner) Buyer shall indemnify and defend Seller from any and all losses and liabilities, claims, costs (including costs of settlement, attorney's fees, consultant and expert fees), judgments, penalties, fines, and /or damages (and including costs of settlement, attorney's fees, consultant and expert fees), which arise during or after Closing and as a result of such contamination. This indemnification of Seller by Buyer includes, but is not limited to, costs incurred in connection with any investigation of site conditions and /or any cleanup, rcmediation, removal, or restorative work required by any federal, state, or local governmental agency because of a Hazardous Material(s) being present in the soil or groundwater or under the Property or other properties affected by the contamination. PURCHASE AND SALE AGREEMENT Page 5 of 9 U :A general \mapa.agt.purch.111611 (c) "Hazardous Materials" shall mean (i) all substances, the clean up and disposal of which is regulated by the Comprehensive Environmental Response Compensation and Liability Act of 1980 (CERCLA) and the Resource Conservation Recovery Act (RCRA), both as amended and all implementing regulations; (ii) hazardous materials and hazardous substances as those terms are used in the applicable provisions of Title 46 of the Alaska Statutes and all implementing regulations, (and as amended from time to time); and, (iii) all substances containing petroleum or other hydrocarbons, asbestos, or other materials, substances, or waste that are or become regulated as hazardous or toxic under federal, state, or local law. (d) The provisions of this paragraph shall survive the execution and delivery of the deed by Seller and the closing of the transaction contemplated by this agreement. 11. Miscellaneous Disclosures. The structure on the Property is not conveyed as part of this sale of land. Notwithstanding, Seller provides notice to Buyer that radon gas is a naturally occurring radioactive gas, that, when it has accumulated in a building in sufficient quantities, may present a health risk to persons who are exposed to it over time. Buyer, in Buyer's sole discretion, may contact the State of Alaska, Department of Environmental Conservation, or other departments for additional information regarding radon and radon testing. 12. Delivery of Possession. Seller shall immediately after Closing, and without further notice or demand. deliver unto Buyer full possession of the Property. 13. No Broker. Seller and Buyer each represent and warrant to the other that it has not dealt with any broker regarding the Property and this transaction. Each party shall he responsible to defend, indemnify, and hold harmless the other as to any claim made by any person or entity for a commission claimed as being due as a consequence of the indemnifying party's acts or conduct. 14. Closing Date. Closing shall occur no later than 2011, at a title company or hank in the Kenai, Alaska area unless otherwise agreed by the parties. 15. Time. Time is of the essence in the performance of all obligations hereunder. 16. Notices. All notices, demands, and requests that may or are required to be given by either party to the other under this agreement shall be in writing and given by PURCHASE AND SALE AGREEMENT Page 6 of 9 U:A general \mapa.agt.purch.11161 1 first -class mail, postage prepaid, to Seller at City of Kenai, Attn: City Manager, 210 Fidalgo Avenue, Kenai, AK 99611, and to Buyer at 1 1472 Kenai Spur Highway, Suite 1, Kenai, AK 99611. 17. Relationship of the Parties. This agreement does not constitute an agreement of partnership or joint venture and does not authorize Seller to act as an agent for Buyer for any purpose nor does it authorize Buyer to act as an agent for Seller for any purpose. 18. Governing Law and Venue. This agreement shall be governed by and construed under the laws of the State of Alaska. Venue of any dispute shall be the Superior Court for the State of Alaska at Kenai. 19. Integration and Modification. This agreement contains the entire agreement of the parties. All negotiations, statements, representations, warranties, and assurances, whether oral or written, which are in any way related to the subject matter of this agreement or the performance of either party, are merged and integrated into the terms of this agreement. This agreement may not be modified or amended except by a writing signed by both parties. 20. Binding Effect. This agreeent shall be binding upon and inure to the benefit of the parties, their heirs, executors, administrators, successors, transferees, and assigns, and may be modified or cancelled only by a written instrument signed by both parties. 21. Survival. All warranties and representations in this agreement survive the execution and delivery of the deed by Seller and the closing of the transaction contemplated by this agreement. 22. Captions. All captions contained in this agreement are for convenience of reference only and shall not be considered in any way in connection with the interpretation or enforcement of any provision. 23. Authority. Each person signing this agreement on behalf of a party has been authorized to do so by a duly- enacted resolution of that parties' Board of Directors or Council (as may be required by law). 24. Multiple Counterparts. This agreement may be executed in multiple counterparts, each of which will signify each party's agreement to the terms, and together will constitute the Agreement. PURCHASE AND SALE AGREEMENT Page 7 of 9 U :Ageneral\mapa.agt.purch.111611 25. Effective Date. This agreement will become effective when all the parties have signed it. The date of this agreement is signed by the last party to sign it (as indicated by the date associated with the party's signature) will be deemed the date of this agreement. STATE OF ALASKA THIRD JUDICIAL DISTRICT SELLER: CITY OF KENAI By: Rick R. Koch Its: City Manager BUYER: MA & PA ALASKAN TREASURES, INC. By: Debra R. Loveall Its: President )' )ss The foregoing instrument was acknowledged before me this day of , 2011, by Rick Koch, City Manager of the City of Kenai, an Alaska municipal corporation, on behalf of the City. Notary Public for Alaska My Commission Expires: PURCHASE AND SALE AGREEMENT Page 8 of 9 U :Ageneral \mapa.agt.purch.111611 STATE OF ALASKA )ss THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this day of 2011, by Debra R. Loveall, President of Ma & Pa Alaskan Treasures, Inc., an Alaska Corporation, on behalf of the corporation. Notary Public of Alaska My Commission Expires: Approved as to form: Krista S. Stearns City Attorney PURCHASE AND SALE AGREEMENT Page 9 of 9 U :Ageneral\napa.agt.purch.111611 enai rtatanicipal Airport Iiten,I, Ilgs October 2011 Airport Manager's Report Airport Improvement Program: Apron Rehabilitation: The Airport and Finance Department are finalizing the close out documents. Master Plan — The kickoff date for the Airport Master Plan is scheduled for October 13. The consultants will be in town conducting a facility inventory and talking with airport staff, tenants, and airport users. Obstruction Clearing EA - Very few comments were received from the agencies and no one attended the Public Information meeting. WCB and Aries are proceeding and will address the comments and prepare the draft EA for another review. Float Plane Basin EA & Design: Staff is preparing the bid documents and the project will be bid ready when grant funds become available. Wildlife Hazard Assessment: Kyle Waters, from USDA /APHIS, arrived in Kenai the week of October 3. He is busy setting up an office and familiarizing himself with the airfield. Kyle will be on airport over the next 12 months conducting a wildlife hazard study. A biologist from Washington State will arrive to set up the study design next week. SRE — Phase 1: The airport received the new 14M Cat grader on Monday, October 3. Airport staff will be training on the new equipment over the next couple of weeks. The crew is very happy with the new equipment and all of its modifications. Annual Snow Removal Operations Meeting: This annual 139 requirement was held on Wednesday, October 5, 2011 and was very well attended by City personnel and airport tenants. Representatives from the Tower and Airway Facilities were on hand; in addition everyone was available to participate in initial and recurrent training requirements that addressed airport self inspections (day and night), snow removal plans, and communications. The Airport appreciates the participation from the other City Departments that were represented. Airport Emergency Control Plan (AECP): The Administrative Assistant has printed and distributed the new AECP to all participants in the plan for review. A meeting has been set for Tuesday, November 8, at 1pm in City Hall Council chambers for review and the annual tabletop exercise. Out of Office: The Airport Manager and Assistant to the Airport Manager will be out of the office October 10, 11 & 12 attending operations training at Anchorage International Airport. The Airport Manager will also be out of state the week of October 17 attending a training course on the airport 5010 Master Record. 2011 -10 Municipal Airport Airport Improvement Program: November 2011 Airport Manager's Report Apron Rehabilitation: The Airport and Finance Department are finalizing the close out documents. b. Master Plan — Tasks 1 & 2 of the Airport Master Plan are under way. Information is being gathered for existing airport conditions and aviation activity forecasts and a draft report for City Admin review should be available by February 2012. Obstruction Clearing EA - City Administration is reviewing the draft Environmental Assessment and the notification letters for the subject properties. Comments are due by Friday, November 4. The documents will be edited as required and then forwarded to the FAA for review and approval to advertise the documents' availability for review. Float Plane Basin EA & Design: Staff is preparing the bid documents and the project will be bid ready when grant funds become available. Airport Emergency Control Plan (AECP): A meeting has been set for Tuesday, November 8, at 1 pm in City Hall Council chambers for review of the new AECP and the annual tabletop exercise. All parties that would be involved if such an incident occurred at the Airport have been invited. Winter Is Here: Airport staff is busy with plowing and sanding and will soon be stringing lights for Christmas Comes to Kenai. Dottie Fischer — Alaska's Best Travel: After 17 years as a tenant in the Airport, Dottie Fischer is retiring. Dottie has provided a valuable service and will be missed. The terminal space she currently occupies will be available for lease after December 15, 2011. The Airport wishes Dottie the very best in a much deserved retirement! . UNITED STATES OF AMERICA, STATE OF ALASKA f 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 Aavort Commission PO #96573 a printed copy of which is hereto annexed was published in said paper one each and every day for one successive and consecutive clay in the issues on the following dates: X !/ L a? 7,✓ SUBSCRIBED AND SWORN to me before this 6th day of December 2011 7 Yt4V ®� NOTARY PUBLIC in favor for the State of Alaska. My Commission expires 26- Aue -12 _ i �Qi f Y g PUBLIC