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HomeMy WebLinkAbout2012-05-02 Council PacketCOUNCIL PACKET DISTRIBUTION MAKE 19 PACKETS Council Meeting Date: Mayor Council - 4 packets City Manager City Attorney 1 Clerk Finance Library Fire Department Cunningham Kebschull Student Rep. y. KSRM Hall Binder Mellish Schmidt ELECTRONIC COPY NOTICE Send out notice to All with link to Council Packet DELIVER Council and Student Rep packets to Police Department Dispatch Desk. Clarion, KSRM, Mellish & Schmidt pick up their packets in the Clerk's Office. 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Term. Permittee shall have a non - exclusive use of the Premises to commence on the 5th day of May, 2012, and to end on the 28th day of February, 2013. 2. Premises. The Premises subject to this Pennit is identified in Exhibit A, page and is further described as: A parcel of land for access and exploratory drilling located north of the fire training facility off Marathon Road on City of Kenai lands situated in the unsubdivided portion of the NW 1/4 Section 33,Township 6 North, Range 11 West, Seward Meridian; all Located within the Kenai Recording District (KN), Third Judicial District, State of Alaska, and more particularly described as follows (courses and distances are Alaska State Plane Zone 4): Commencing at the northwest corner of Tract A -1 -A Baron Park Subdivision Fire Addition KN 97 -51 on the easterly right -of -way line of Marathon Road, Thence Course N 7°26'03 "E Distance 343.38 ft. along said right -of -way line to the Point of Beginning, being Corner No. 1; Thence Course N 89 °23'34 "E Distance 338.64 ft. across City of Kenai Land to Comer No. 2; Thence Course S 0 °36'26 "E Distance 340.00 ft. across City of Kenai land to a point of intersection on the northerly boundary of said Tract A -I -A being Corner No. 3; Thence Course N 89 °23'34 "E Distance 500.00 ft. across City of Kenai land along the northerly boundary of said Tract A -1 -A to Comer No. 4; Thence Course N 0 °36'26 "W Distance 400.00 ft. across City of Kenai to Corner No. 4 Thence Course S 89 "23'34 "W Distance 830.16 ft. to a point on the easterly right -of -way line of Marathon Road being Corner No. 6; Thence Course S 7 °26'03 "W Distance 60.68 ft. along said right -of -way line to the Comer No. 1, the Point of Beginning thus embracing Area: 5.05 Acres (226,064 sq. ft.). Buccaneer Alaska, LLC Page 1 of 7 Special Use Permit 3. Use. The permitted use is to construct approximately 550 lineal feet of access road, a 400' x 500' drill pad, drill Kenai Loop #1 Well and production and compressions facilities for the sale of natural gas. This use is more specifically described in the "Plan of Operations" in the attached Exhibit A, and all such uses are subject to Permittee applying for and obtaining all required permits for such activities and to Permittee observing all conditions and requirements of said permits. The use of the Premises is limited to the purposes specified. This use is also subject to the administrative actions of the City of Kenai for public safety and the protection of maintenance of Premises and of adjacent and contiguous lands or facilities. 4. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, permits, certificates, and other documents required for its operations under the Permit and /or as described in Exhibit A. Permittee shall provide proof of compliance to the City upon request by the City. 5. No Exclusivity. The use by the Permittee of the Premises is limited to the uses and purposes specified herein and the Permits is not intended to grant any exclusive use to the described Premises except as otherwise provided herein. This use is also subject to the reasonable administrative actions of the City for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Without limitation of the foregoing, Permittee expressly recognizes and has notice that the access road to be constructed on the Premises by Permittee may he used by the City and the City's designees. 6. Improvements. Improvements described as the access road and drill pad shall remain in place following the term of this Permit and shall become the property of the City. 7. Permit Fees. Pen nittee shall pay a monthly fee of $1,333.33, plus applicable sales tax. This fee is computed based upon the following calculation: 200,000 s.f. x $1.00 s.f. / 8% annual fee / 12 months). The fee shall be due on or before the first day of each month beginning May 1, 2012. Checks, hank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, Kenai, Alaska, 210 Fidalgo Ave., Kenai, Alaska 99611. Permittee further agrees to pay to the appropriate parties all levies, assessments, and . charges as hereinafter provided or as may become due otherwise, including but not Buccaneer Alaska, LLC Page 2 of 7 Special Use Permit limited to any amounts due from Permittee and owed to the City under any other agreement or permit now existing or later issued and sales tax now enforced or levied in the future and computed upon fees due, with sales tax due in monthly installments at the same time Permit Fees are due. Permittee shall pay and be liable for interest at the rate of eight percent (8 %) per annum and penalties of ten percent (10 %) of the amount due, on any amount of inoney owed under this Permit which is not paid on or before the date it becomes due. 8. Insurance. Permittee, at the expense of the Permittee, shall provide insurance covering its activities on and/or in any way arising out of its use of the Premises Permittee shall provide insurance coverage of the following types and minimum coverage limits. If Permittee's policy(ies) contain(s) higher limits, the City shall be entitled to coverage to the extent of the higher limits: Commercial General Liability including premises, all operations, property damage, personal injury and death, broad -form contractual, with a per - occurrence limit of not less than. $1,000,000 combined single limit. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non- owned motor vehicles the lessee uses. Workers' Compensation Insurance for all Pennittee's employees, coverage as required under AS 23.30.045, and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. Products and Completed Operations Liability Insurance. Permittee shall provide Products and Completed Operations Liability Insurance in at least the following coverage limits' • $100,000 bodily injury combined single limit per occurrence; • $300,000 bodily injury aggregate; and, • $100,000 property damage combined single limit per occurrence. All of the policies required above shall be issued by a company /corporation currently rated "A - "or better by A.M. Best. With respect to the policies of insurance listed above, Permittee shall provide the City with proof of insurance coverage in the form of an insurance policy or a certificate of insurance, together with proof that the premiuns have been paid, showing the types and monetary limits of coverage secured. Permittee shall provide this proof of insurance to Buccaneer Alaska, LLC Page 3 of 7 Special Use Permit the City (attention to the City Manager) prior to beginning any activities on the Premises. All insurance must provide that the City be notified at least 30 days prior to any termination, cancellation, or material change in the insurance coverage. All policies shall name the City as an additional insured. If Permittee subcontracts any work on the Premises, all of its subcontractors shall be subject to the same insurance requirements. Pennittee shall identify its subcontracts and provide the same evidence of insurance coverage to the City prior to the subcontractor performing work. 9. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend, and save harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and /or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities "), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any breach of this Permit or from any negligent act or omission or willful misconduct of the Pennittee in connection with its use of the Premises and its activities thereon. 10. Assignment. Permittee may not assign, by grant or implication, the whole or any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this Permit which an assignee fails to perform. 11. Permittee's Obligation to Prevent and Remove Liens. Pennittee will not permit any liens including, but not limited to, mechanics', laborers', material men's, or mining liens or any other liens obtainable or available under existing law, to stand against the Premises or improvements on the Premises for any labor or material furnished to Permittee or to any related entity (including Buccaneer Alaska Operations, LLC or Buccaneer Energy, Ltd.) or claimed to have been furnished to Permittee or to the Permittee's agents, contractors, or related entities, in connection with materials supplied to Permittee for its activities on the Premises and/or in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Permittee. Provided, however, the Pennittee 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. Upon a final determination of the lien or claim for lien, the Pennittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee's own expense. Buccaneer Alaska, LLC Page 4 of 7 Special Use Permit 12. Mutual Cancellation. This permit may be cancelled in whole or in part by either party with one (1) calendar month written notice. In the event that the Penult is cancelled by City, or upon the Permittee's abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or representatives may, immediately or any time thereafter, re- enter, and resume possession of the Premises or portion thereof, and remove all persons and property therefrom, without being liable for any damages to Permittee. 13. No Alcohol. No possession or consumption of alcoholic beverages is permitted on the Premises. 14. No Joint Venture. The City shall not be construed or held to be a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises. 15. Personalty. Any or all personal property placed or used upon lands or in facilities may be removed and /or impounded by the City, and when so removed and /or impounded, such property may he redeemed by the owner thereof only upon the payment to the City of the costs of removal plus its storage charges. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or its invitees to the Premises. 16. Assumption of Risk. Permittee will provide all proper safeguards and shall assume all risks incurred in its use of the Premises. 17. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements. 18. No Discrimination. Permittee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 19. Payment of City's Costs. Permittee will pay all reasonable actual expenses, costs, and actual attorney fees City may incur, with or without formal action, to enforce, defend, or protect the City's property interest in the Premises and the City's rights under this Permit, including any expense incurred with respect to environmental compliance, bankruptcy, liens, or any proceeding that involves the Permit, the Premises, or improvements or personal property on the Premises. Permittee will make payment within 30 days of the date of each notice from City of any amounts payable under this provision. Buccaneer Alaska, LLC Page 5 of 7 Special Use Permit 20. Contact Information. The Contact information for the Permittee, and the person in responsible charge for Permittee during the term of the Permit, for purposes of notice and all communications from City to Permittee is: Mark Landt Buccaneer Alaska, LLC 952 Echo Lane Houston, Texas 77024 Message Phone: 281.768.7650 Fax: 832.201.7495 The Contact information for the City, and the person in responsible charge for Permittee during the tern of the Permit, for purposes of notice and all communications from Permittee to the City is: City Manager 210 Fidalgo Avenue Kenai, AK 99611 Phone: 907.283.8223 Fax: 907.283.3014 Email: rkoch @ci.kenai.ak.us 21. Authority. By signing this Permit, Pennittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the organization to bind the organization hereunder. 22. Survival. The obligations and duties of Permittee under paragraphs 9 and 11 of this permit shall survive the cancellation, termination or expiration of this permit. CITY OF KENAI By: Rick K. Koch City Manager Buccaneer Alaska, LLC Page 6 of 7 Special Use Permit STATE OF ALASKA ) ss THIRD JUDICIAL DISTRICT BUCCANEER ALASKA, LLC By: Mark R. Landt Vice President of Land and Business Development The foregoing instrument was acknowledged before me this day of 2012, 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: STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this day of 2012, by Mark R. Landt, Vice President of Land and Business Development, of Buccaneer Alaska, LLC, an Alaska limited liability company, on behalf of the Company. Notary Public for Alaska My Commission Expires: Approved as to form: Krista S. Stearns City Attorney L:AAgts\Buccaneer \Buccaneer SUP 050212 Buccaneer Alaska, LLC Page 7 of 7 Special Use Permit AGENDA KENAI CITY COUNCIL - REGULAR MEETING MAY 2, 2012 7 :00 P.M. KENAI CITY COUNCIL CHAMBERS http: / /v✓ww.ci.kenai.ak.us A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) *All items listed with an asterisk ( *) are considered to be routine and non - controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) 1. Charles Green, NANA Construction, LLC -- Status Update on Kenai Loop #1 Project for Buccaneer C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS (Testimony limited to three (3) minutes per speaker; thirty (30) minutes aggregated) 1. Ordinance No. 2624 -2012 -- increasing Water & Sewer Fund Estimated Revenues And Appropriations By $10,911 For Costs In Excess Of Budgeted Amounts. 1 2. Ordinance No. 2625 -2012 -- Increasing Airport Fund Estimated Revenues And Appropriations By $20,069 For Costs In Excess Of Budgeted Amounts. 4 3. Ordinance No. 2626 -2012 -- Increasing General Fund Estimated Revenues And Appropriations By $231,638 For Costs In Excess Of Budgeted Amounts And Authorizing A Budget Transfer Within The General Fund In The Amount Of $33,000. 6 4. Ordinance No. 2627 -2012 -- Increasing Estimated Revenues and Appropriations by $26,515 In The General Fund For Proqa Emergency Medical Dispatching Software. 13 City of Kenai Council Meeting Agenda Page 1 of 3 April 18, 2012 5. Ordinance No. 2628 -2012 -- Increasing Estimated Revenues and Appropriations By $16,847.35 In The General Fund For Police Digital Evidence Software And Investigative Equipment. 15 6. Ordinance No. 2629 -2012 -- Amending the Official Kenai Zoning Map by Rezoning a Portion of Lot 1 -Al, R.M. Thompson Subdivision, 2012 Addition from Light Industrial (IL) to General Commercial (CG) 17 7. Resolution No. 2012-23 -- Authorizing a Budget Transfer of $10,000 Within the Water and Sewer Special Revenue Fund - Sewer Department .... .22 8. Resolution No. 2012 -24 -- Supporting Funding for, and Implementation of, a Plan for Upgrades and Improvements to the Seward and Sterling Highways. 24 E. MINUTES 1. *Regular Meeting of April 18, 2012 25 2. *Work Session Notes of April 23, 2012 32 F. UNFINISHED BUSINESS - None G. NEW BUSINESS 1. Action /Approval -- Bills to be Ratified 33 2. Action /Approval -- Purchase Orders Exceeding $15,000 34 3. *Ordinance No. 2630 -2012 -- Increasing Estimated Revenues and Appropriations in the General Fund for Professional Services Observing and Monitoring Three Dimensional Seismic Surveying Being Conducted on City Property and in City Right -Of -Ways. 35 4. Action /Approval -- Lease Agreement between the City of Kenai and Russell Winger for Lot 3, Block 4, General Aviation Apron, located within the Airport Reserve 38 5. Action /Approval -- Buccaneer Alaska Operations, LLC Special Use Permit 71 6. Action /Approval -- Assignment of Lease from Wolverine Leasing to Schilling Rentals, LLC for Lot 1A, Block 4, General Aviation Apron. 82 7. Action /Approval -- Kenai Municipal Airport Lease of Airport Facilities to Alaska Realty Group, Inc. for Office Space No. 9 in the Terminal Building.. 89 H. COMMISSION /COMMITTEE REPORTS 1. Council on Aging City of Kenai Council Meeting Agenda Page 2 of 3 April 18, 2012 2. Airport Commission 104 3. Harbor Commission 4 Library Commission 107 5. Parks and Recreation Commission 6. Planning and Zoning Commission 7. Beautification Committee I. REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager 108 2. City Attorney 3. City Clerk K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) 2. Council Comments L. EXECUTIVE SESSION -- None. M. PENDING ITEMS 1. Ordinance No, 2597 -2011 - Amending Kenai Municipal Code 14.22.010, Land Use Table, to Make Comprehensive Changes to the Uses Allowed in the Suburban Residential (RS), Suburban Residential 1 (RS1), Suburban Residential 2 (RS2), Rural Residential (RR), Rural Residential RR -1, and the Urban Residential (RU) Zoning Districts. [Clerk's Note: At its November 16, 2011 meeting, Council postponed Ordinance No. 2597 -2011 to the August 1, 2012 meeting and the ordinance was referred back to the Planning and Zoning Commission so the Commission could continue to consider the changes proposed in this work product during the Comprehensive Plan process.] N. ADJOURNMENT INFORMATION ITEMS 1. Purchase Orders between 52,500 and $15,000 for Council Review 134 2. Budget Transfer in Capital Projects in Excess of $5,000 - None The agenda and supporting documents are posted on the City's website at www.ci.kenai.ak.us . Copies of resolutions and ordinances are available at the City Clerk's Office or outside the Council Chamber prior to the meeting. For additional information, please contact the City Clerk's Office at 907 - 283 -7535 ext 231. City of Kenai Council Meeting Agenda Page 3 of 3 April 18, 2012 the 4' of KENAL ALASKA Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2624 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING WATER 84 SEWER FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $10,911 FOR COSTS IN EXCESS OF BUDGETED AMOUNTS. WHEREAS, the extended period of time needed to recruit personal for a vacancy created by employee retirement increased the overtime demand on the remaining employees of the department, $4,824; and, WHEREAS, larger than expected annual leave cash outs have depleted the leave account in the Waste Water Treatment departments requiring additiona] funds to complete the fiscal year S6,087, and, WHEREAS, supplemental funds are needed for the remainder of the fiscal year to continue operations of the system. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Water & Sewer Fund Increase Estimated Revenues: Appropriation of Fund Balance State of Alaska - PERS On- behalf Funding $10,593 318 $1 911 Increase Appropriations: Water Department Overtime $ 2,425 Medicare 36 PERS 745 $ 3,206 Sewer Department Overtime $ 1,225 Medicare 18 PERS 375 S 1,618 Waste Water Treatment Plant Leave $ 6,000 Medicare 87 $ 6,087 New Text Underlined [DELETED TEXT BRACKETEDI 1 Ordinance No. 2624 -2012 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of May, 2012. ATTEST: Sandra Modigh, City Cleric Approved by Finance: PAT PORTER, MAYOR Introduced: April 18, 2012 Adopted: May 2, 2012 Effective: May 2, 2012 New Text Underlined; [DELETED TEXT BRACKETED] 2 the of KENAI, ALASKA "Village with a fast C. with a Future 210 FideIgo Avenue, Kenai, Alaska 99611 -7794 ut ice Telephone: (907) 283 -7535, Ext. 236 / FAX: (907) 283 -3014 11!111 (I MEMO SDUM TO: Rick Koch, City Manager FROM: Sean Wedemeyer, Public Works Directo DATE: April 12, 2012 SUBJECT: INCREASING WATER & SEWER FUND APPROPRIATIONS 1592 Rick, The extended period of time needed to recruit a new Water and Sewer Foreman increased the overtime demand on the remaining employees of the department. This is the basis for the request for an increase in the Water and Sewer Fund Appropriations in Ordinance No. 2624 -2012. 3 Me KENAI KENALMASKA Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2625 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING AIRPORT FUND ESTIMATED REVENUES AND APPROPRIATIONS BY 520,069 FOR COSTS IN EXCESS OF BUDGETED AMOUNTS. WHEREAS, above average snowfall this past winter required overtime by City personnel in excess of budgeted amounts, 529,088; and, WHEREAS, adequate snow removal is critical to safe operations at the Kenai Airport; and, WHEREAS, supplemental funds are needed for the remainder of the fiscal year to continue airport operations. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Airport Fund Increase Estimated Revenues: Appropriation of Fund Balance State of Alaska - PERS On- behalf Funding $19,438 631 $20,069 Increase Appropriations: - Airport Airfield Wages $ 5,000 Overtime 12,000 Medicare 246 Social Security 608 PERS 2,215 $20 069 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of May, 2012. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk Introduced: April 18, 2012 Approved by Finance: ��+- Adopted: May 2, 2012 Effective: May 2, 2012 . New Text. Underlined' ]DELETED TEXT BRACKETED] 4 Memo To: Rick R. Koch - City Manager From: Mary Bondurant — Airport Man ag\" Date: April 12, 2012 Subject: Ordinance 2625.2012 - Airfield Overtime Due to the heavy snowfall and the hours required to perform snow and ice control to ensure safe aircraft operations, the airfield overtime budget is exhausted and over spent. There is a need to appropriate funds to cover the overtime wage shortage and continued airport operations for the remainder of FY12. If you have any questions, please contact me. rrvr. cLken 5 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2626 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING GENERAL FUND ESTIMATED REVENUES AND APPROPRIATIONS BY $231,638 FOR COSTS IN EXCESS OF BUDGETED AMOUNTS AND AUTHORIZING A BUDGET TRANSFER WITHIN THE GENERAL FUND IN THE AMOUNT OF $33,000. WHEREAS, above average snowfall this past winter required overtime by City personnel in excess of budgeted amounts, $29,088; and, WHEREAS, additional overtime at the City dock in managing the 2011 State imposed Personal Use Fishery was unbudgeted, $7,674; and, WHEREAS, the recruitment period for the City's Information Technology Manager was longer than expected requiring contract support in excess of budgeted, $7,000; and, WHEREAS, overtime by the City's previous capital projects manager was not budgeted and was the result of extra hours worked prior to leaving the employment of the City, $3,603; and, WHEREAS, the Communications Department implemented a new computer aided dispatch system this fiscal year which required unbudgeted overtime during the training phase for the new system, $4,627; and, WHEREAS, employee attrition and larger than expected annual leave cash outs have depleted leave and unemployment insurance accounts in various departments requiring additional funds to complete the fiscal year $39,504, and, WHEREAS, modifications to administrative work schedules had and adverse impact of Fire Department overtime and the administration has been working with the department on a new and more efficient response matrix to reduce future overtime needs, $140,142; and, WHEREAS, Ordinance 2599 -2011 mistakenly allocated insurance savings from workers compensation to other insurance types and transferred the available budget. $33,000 of the insurance savings is related to workers compensation and this ordinance will correct the misallocation; and, WHEREAS, supplemental funds and a budget transfer are needed for the remainder of the fiscal year to continue City services. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: New Text Underlined• [DELETED TEXT BRACKETED 6 Ordinance No. 2626 -2012 Page 2 of 3 General Fund Increase Estimated. Revenues: Appropriation of Fund Balance State of Alaska - PERS On- behalf Funding $219,483 12,155 $aaL638 Increase Appropriations: Manager - Leave $ 5,100 Police - Leave 13,255 Public Works Administration - Leave 2,000 Library - Leave 6,508 Recreation - Leave 2,078 Parks - Leave 2,078 Buildings - ESC 6,760 Parks - ESC 1,283 Fire - Overtime 106,000 Streets - Overtime 22,000 Communications - Overtime 3,500 Public Works Administration - Overtime 2,725 Dock - Overtime 6,200 Manager - Medicare 59 Police - Medicare 192 Fire - Medicare 1,535 Communications - Medicare 51 Public Works Administration - Medicare 69 Streets - Medicare 319 Library - Medicare 96 Recreation - Medicare 33 Parks - Medicare 33 Dock - Medicare 90 Fire - PERS 23,320 Communications - PERS 770 Public Works Administration - 599 Streets - 4,840 Dock - 990 Non - Departmental - PERS 12,155 Non. - Departmental - Professional Services 7,000 $231 638 New Text Underlined; [DELETED TEXT BRACKETEDJ 7 Ordinance No. 2626 -2012 Page 3 of 3 BE IT FURTHER ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the following budget transfer be authorized: Genera]. Fund Budget Decrease Police - Workers Compensation Insurance S 13,000 Fire - Workers Compensation Insurance 17,000 Streets - Workers Compensation Insurance 3,000 $33,000 Budget Increase Non - Departmental - Insurance $33,000, PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of May, 2012. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER. MAYOR Introduced: April 18, 2012 Adopted: May 2, 2012 Effective: May 2, 2012 New Text Underlined; [DELETED TEXT BRACKETED! 8 it Al, ALASKA 17i ll!aye with a Past Ci with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907- 283 -7535 ext 221 / FAX: 907 - 283 -3014 To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: April 12, 2012 Re: Ordinance 2626-2012 With the end of the fiscal year approaching the Finance Department has been working with various City departments to review their budgets. As a result a number of needed adjustments have been identified for General Fund departments. A memo has been provided by each department head in support of their needed adjustments. This memo will address supplemental funding identified in the 3`d and 6th WHEREAS's as well as the budget adjustment in the 8 "' WHEREAS. WHEREAS -3 The FY12 Budget included funding for information technology (IT) professional services during the period of recruitment for the new IT Manager. The recruitment period extended beyond the budgeted period requiring one month of extra professional services to maintain the City's IT network. Additional funding in the amount of S7,000 is being requested to cover these expenses. WHEREAS - 6 Employee attrition and larger than expected annual leave cash outs have depleted wage accounts in various departments requiring additional funds to complete the fiscal year $39,504: Manager - Leave Police - Leave Parks - Leave Parks - Unemployment Recreation - Medicare Public Works - Medicare Library - Leave 55,100 $13,255 $2,078 $1,283 $33 $29 $6,508 Manager - Medicare Police - Medicare Parks - Medicare Recreation - Leave Public Works - Leave Buildings - Unemployment Library - Medicare $59 192 $33 $2,078 $2,000 $6,760 $96 WHEREAS -8 Ordinance 2599 -2011 authorized a budget revision transferring savings from the City's insurance renewal to an information technology. In preparation of the ordinance 1 mistakenly calculated the insurance savings only on general liability and property coverage. The actual savings of $96,260 is correct but $38,096 of the savings was related to workers compensation coverage. Ordinance 2626 -2012 will correct this mistake by moving available budget from workers compensation accounts hack into the City's insurance account. 9 of KENAI, ALASKA Tillage with a Past, Gity witlr a Future /1 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 m CM Telephone: (907) 283 -7535, Ext. 236 / FAX: (907) 283 -3014 11I I rI MKMO NDUM TO: Rick Koch, City Manager FROM Sean Wedemeyer, Public Works Director DATE: April 12, 2012 SUBJECT: INCREASING GENERAL FUND APPROPRIATIONS 1992 Rick, Above average snowfall during this past winter required overtime by City personnel in excess of budgeted amounts. Additional overtime at the City dock in managing the 2011 Personal Use (Dipnet) Fishery was unbudgeted. An additional person was hired to manage the increased traffic and hours of operation in 2011. The proposed FY 2013 includes a budget item for this position. Overtime by the City's previous capital projects manager was not budgeted and was the result of extra hours worked prior to leaving the employment of the City. This is the basis for the request for an increase in the General Fund Appropriations in Ordinance No. 2626 -2012. 10 K "Village with a Past, Gi with a Future 210 Fidaigo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7536 / FAX: 907- 283 -3014 MEMO: TO: City Manager Koch FROM: Fire Chief Tilly DATE: April 12, 2012 SUBJECT: Ordinance 2626 -2012 Rick, This memo addresses Ordinance 2626 -2012 specifically #7 Whereas. Changes to the work schedules of two of the administrative staff originated from a desire to meet the workloads and increase the accessibility to their respective offices by the public, contractors and other agencies that they closely work in conjunction with. Because of this change, there was a decrease in the ability to cover scheduled leave, Work has proceeded to address the recall system which will be initiated soon and addressing of the response matrix for the department will have positive effects on future overtime needs. 11 I. e city of K NAI, ALASKA Village with a Past, Ci y with a Future Kenai Police Department w 107 S. Willow St., Kenai. Alaska 99611 I VIII Telephone: 907- 283 -7879 / FAX: 907 - 283 -2267 11 1992 MEMO' TO: Rick Koch — City Manager FROM: Gus Sandahl — Police Chief DATE: 4/12/12 SUBJECT: Communications Overtime Appropriation The dispatch (communications) overtime account is currently depleted to a negative balance of $5,029.55. The dispatch center had a vacancy for a month, which left the department with $3,602.56 in unspent salaries to offset the overtime depletion. Despite the unspent salaries, the overtime balance will still have a negative balance at year end. The primary reason for the significant overtime depletion was a result of acquiring CAD (Computer Aided Dispatch). This was a Borough grant funded project that brought our dispatch center more into the 21" Century. Instead of hand writing all of the dispatch oriented activity, it is now entered via CAD. The dispatchers are now proficient with CAD entries, and overtime has subsequently decreased. However, the initial implementation of CAD required significant overtime to train dispatchers on its use. I am requesting an appropriation of $3,500 to the general fund, communications overtime account to provide adequate overtime funding for the dispatch center for the remainder of FY12. The communications supervisor and I will monitor the communications overtime availability with a conservative mindset (as always). Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2627 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY 526,515 IN THE GENERAL FUND FOR PROQA EMERGENCY MEDICAL DISPATCHING SOFTWARE. WHEREAS, in October of 2011 . the Kenai Communications Center was awarded a State Homeland Security grant to acquire ProQA emergency medical dispatching software, which included training and tech support; and, WHEREAS, a representative from State Homeland Security initially told the Communications Supervisor that SHS could pay the bill directly to the vendor; and, WHEREAS, the software installation and training are complete, and now SHS states they cannot pay the bill directly to the vendor, and that they can only reimburse the City; and, WHERAS, installation and use of this system has enhanced dispatchers effectiveness when dealing with emergency medical calls. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: State Grant Increase Appropriations: Communications — Computer Software $26,515 $26,615 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2012. ATTEST: Sandra Modigh, City Clerk Approved by Finance: 1 PAT PORTER, MAYOR Introduced: April 18th, 2012 Adopted: May 2nd, 2012 Effective: May 2nd, 2012 New Text Underlined; [DELETED TEXT BRACKETED) 13 then ./ of RENAL ALASKA "l/illaye with a Past, C# with a Future" Kenai Police Department 107 S. Willow St., Kenai, Alaska 99611 Telephone: 907 - 283 -7879 / FAX: 907 - 283 -2267 MEMO: TO: Rick Koch, City Manager THRU: Gus Sandahl — Police Chief FROM: Mike Nusbaum — Communications Supervisor DATE: 4/9/12 SUBJECT: ProQA Software Grant In October of 2011, . I received notice that our grant application to State Homeland Security to acquire ProQA emergency medical dispatching software was approved. At that time, I was told by a State Homeland Security representative that we could send the software invoice directly to the state for payment. As a result the software has been installed and the invoice was forwarded to SHS. However, on 4/9/12, 1 was informed that they could only reimburse funds, and can't pay vendors directly. After we have paid Priority Dispatch, I will request reimbursement for the sane amount. I am requesting an ordinance appropriating $26,515 into the general fund, communications computer software account to pay for ProQA emergency medical dispatching software by Priority Dispatch. This is a sole source product, in that it is the computer version of the emergency medical dispatch cards that dispatchers are already using at every dispatcher center on the Peninsula. Other products, offered by different companies, are not compatible with the existing emergency medical dispatch cards that our dispatchers will continue to use as a supplement to the ProQA software, The total bill of $26,515 included software, training, and a one year annual maintenance agreement. I intend to request the annual maintenance agreement ($1,395) in subsequent years. Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2628 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS BY $16,847.35 IN THE GENERAL FUND FOR POLICE DIGITAL EVIDENCE SOFTWARE AND INVESTIGATIVE EQUIPMENT. WHEREAS, the Kenai Police Department has received notice from the Court authorizing the forfeiture of drug seizure cash currently in the possession of the City of Kenai; and, WHEREAS, the evidence custodian has transferred the cash from the evidence safe to the City finance department; and, WHEREAS, the Police Department wishes to utilize a large portion of the cash forfeitures to purchase digital evidence software from Veripic at a total cost of $16,779; and, WHEREAS, the Police Department will spend the remaining $68.35 in cash forfeitures to purchase investigative equipment. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Forfeiture Increase Appropriations: Police - Computer Software Police - Small Tools $16,847.35 $16,779.00 68.35 $16,847.35 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2012. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: April 18Th, 2012 Adopted: May 2nd, 2012 Effective: May 2nd, 2012 Lew Text li xnderlined; [DELETED TEXT BRACKETED] 15 the co'tyof NM, fiVillaye with a Past, Ci y with a Future Kenai Police Department 107 S. Willow St, Kenai, Alaska 99611 Telephone: 907 - 283 -7879 / FAX: 907- 283 -2267 MEMO: TO: Rick Koch — City Manager FROM: Gus Sandahl — Police Chief DATE: 4/9112 SUBJECT: Cash Forfeiture Appropriation The General Fund currently holds $16,847.35 in cash seizures that the Kenai Court has ordered forfeited to the "City of Kenai Police Department," and in some cases ordered forfeited to the "investigating agency." The forfeitures are a result of drug investigations in which the Kenai Police Department was the primary investigating agency. I am requesting an ordinance appropriating $1.6,779 into the general fund, police computer software account to pay for digital evidence software, developed by Veripic. The purchase price of $16,779 includes a 12 month software license maintenance contract ($2,730) and webex training ($399)_ It is our intent to purchase the maintenance contract for subsequent years. The software has unique qualities that make it a sole source product. By comparison, we have priced another digital evidence software product, and the cost is several thousand more. 1 am requesting the remaining $68.35 to be appropriated into the general fund, police small tools account to help pay for police investigative equipment. 1'111. 1992 Meaty of KENAI. ALASKA Suggested by: Planning & Zoning Commissio CITY OF KENAI ORDINANCE NO. 2629 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE OFFICIAL KENAI ZONING MAP BY REZONING A PORTION OF, LOT 1 -Al, R.M. THOMPSON SUBDIVISION, 2012 ADDITION FROM LIGHT INDUSTRIAL (IL) TO GENERAL COMMERCIAL (CGS. WHEREAS, this property was replatted and as result of that platting action a split - zone was created; and, WHEREAS, the property is currently zoned Light Industrial and General Commercial; and, WHEREAS, the City's Administration recommended, and the Planning & Zoning Commission concurred, that the property should be rezoned to eliminate the split -zone situation created by the replat; and, WHEREAS, the property owner initiated action to rezone the property to General Commercial; and, WHEREAS, the 2003 City of Kenai Comprehensive Plan identifies the area as Neighborhood Commercial; and WHEREAS, the 2003 Comprehensive Plan defines the Neighborhood Commercial zone as, "areas along the arterial road system, that are suitable for small -scale neighborhood- serving retail, service, and office uses... "; and, WHEREAS, by adding the property to the General Commercial that immediately adjacent zone will be enlarged and the rezoning will eliminate a split -zone situation; and, WHEREAS, the rezone of the property to General Commercial meets the requirements of KMC 14.20.270; and, WHEREAS, on April 11, 2012, the City of Kenai's Planning and Zoning Commission voted unanimously to recommend to the City Council that the property be rezoned to General Commercial; and, WHEREAS, the area to be rezoned is shown on Attachment A; and, WHEREAS, it is in the best interest of the City of Kenai to rezone the area shown on Attachment A to General Commercial (CG); and, New Text Underlined • [DELETED TEXT BRACKETED) 17 Ordinance No. 2629 -2012 Page 2 of 2 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the official Kenai Zoning Map is amended by rezoning a portion of Lot 1- Al, R.M. Thompson Subdivision, 2012 . Addition from Light Industrial (IL) to General Commercial (CG), as shown on Attachment A. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May 2012. ATTEST: Corene Hall, CMC Deputy City Clerk PAT PORTER, MAYOR Introduced: April 18, 2012 Adopted: May 2, 2012 Effective: June 2, 2012 New Text Underlined* [DELETED TEXT BRACKETED 18 cfyof KENAI. SKA CITY OF KENAI PLANNING AND ZONING COMMISSION RESOLUTION NO. PZ12 -09 REZONE PERMIT A RESOLUTION OF THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAI RECOMMENDING APPROVAL TO THE KENAI CITY COUNCIL OF THE REQUESTED REZONING SUBMITTED BY NAME: Graydon CowaiIl dba Friendship Mission LEGAL: A Portion of Lot 141, R.M. Thompson Subdivision 2012 Addition (A Subdivision of R.M. Thompson Subdivision 2011 Addition & Radar Subdivision) Preliminary Plat Including the following parcels: Street Address KPB Parcel No. Legal 14639 Kenai. Spur Highway Includes — 03914228 03914222 03914223 R.M. Thompson Subdivision, 2011 Addition — Includes: Lot IA, R.M. Thompson. Subdivision Friendship Mission Replat Lot 25, B3, Radar Subdivision Lot 26, 63, Radar Subdivision 1518 Ninilchik Drive 03914220 Lot 23, B3, Radar Subdivision 1516 Ninilchik Drive 03914221 Lot 24, B3, Radar Subdivision WHEREAS, the Commission finds the following: 1. The subject properties currently zoned General Commercial & Light Industrial 2. The present land use plan designation is Commercial 3. The proposed zoning district is Neighborhood. Residential 4. An appropriate public hearing as required was conducted April 11, 2012 5. That the following additional facts have been found to exist: a. That the proposed rezone will eliminate a split -zone situation created by a platting action. 6. Applicant must comply with all Federal, State, and local regulations. NOW, THEREFORE BE IT RESOLVED, by the Planning and Zoning Commission of the City of Kenai that the petitioned REZONING of a portion of Lot 1A -1, R.M. Thompson Subdivision 2012 Addition is hereby recommended to the Kenai City Council. PASSED BY THE PLANNING AND ZONING COMMISSION OF THE CITY OF KENAL, ALASKA, APRIL 11, 200 •"" CHAIRPERSON: 19 Proposed Rezossne i f industri& Gereral Commercial ezo:.e .-.rea 20 Attachment A NUTS. \ \ Vtlety 1.1Ww [11.1. 414.77<.< p 44y der Zankt3t" d V V" r \ .<22. p<v2.221 24, 22 onvst4 1.24 ta`..2.0,2 r141-1 r<<Zrom-r I finftn LT 5. \ <5‘ -At" on ns, nnn 4n, 4, pot- g2,0 nn.0, '0. tos 25 2 Pr ,s nso 422.2. lk; 2 <V 417,9 /4 4, -1 20 .42 022. 1111ASIC13.33M.11:: 1:104131701..11 ""'4,224.,":".77r01,1414;''A enn-400711P1'n°4"`"" c.a., nn. (n. nnninn", nnn nn, .22,2 t Let IA-1 \F% NORTH t 1,n- vw GE- 1/11 duLd. <2<d- [1 N71,11,- 'AXIL - t-1/A\ TRV 121<1.71.2 <PER <AA< <22..”1,221 ly,ryyzAppe Igyzjyy, nflThi,113 P.VS pr cer, 5FIY.WIdd r"TrfaMrAn<C<<"2 IdE Id1W11 .<2 It<2.22 22, 12<-14, 25,2,2 <2, Int 2.<2.2242, <• 11A, de <LW, tg■ <1 tit 22222 SW , SWF/Ma filInan tcqs At en.„E0 cs/nr/tnra. Or, enlpnSlal! 2877 trZiat7n,V Pw- 07,7” (-^,F• tt<2274.27-3 rat fur .170‘052n •me.f.nrel r.<2.2,25 0,4: < WWI" W131” Ril. l'i.c.47.7n--LN SUrrilv!sK,,, 2012 acni4,04; INTEGINTY SURVEYS INC, 49,01, 5,A1n1 <”22<4 2." 411143111,":1 Joni. CITY OF KENAI RESOLUTION NO. 2012 -23 Suggested by: Administration A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AUTHORIZING A BUDGET TRANSFER OF $10,000 WITHIN THE WATER AND SEWER SPECIAL REVENUE FUND - SEWER DEPARTMENT. WHEREAS, the Sewer Department experienced unbudgeted expenses to the Operating and Repair Supplies account; and, WHEREAS, the Sewer Department Operating and Repair Supplies budget is depleted and not sufficient to cover the estimated operational cost through the end of FY2012; and WHEREAS, contingency funds are budgeted for just such occurrences. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the following budget transfers he made: From: Water and Sewer Fund Sewer Department - Contingency To: Water and Sewer Fund Sewer Department - Operating and Repair Supplies $10,000 $10,000 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this second day of May, 2012. ATTEST: Corene Hall, Deputy City C lc Approved by Finance: PAT PORTER, MAYOR 22 the uyof KENAI, ALASKA "Village with a Past, C with a Futrsre" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535, Ext. 236 / FAX: (907) 283 -3014 lir 1992 MEMO NDUM Yv\ TO: Rick Koch, City Manager FROM: Sean Wedemeyer, Public Works Director DATE: April 17th, 2012 SUBJECT: Sewer Budget Transfer Rick, The account 010 - 466 -2022 for the Sewer Department is nearly depleted. This is due to above average operating and maintenance expenditures including transducer and motor starter replacements, manhole appurtenances, and safety gear replacement. I propose to replenish the account with $10,000 from the contingency account 010 - 466 -4999. This is the basis for the request for a budget transfer in Resolution 2012 -23. 23 Mc afro( KENAI, ALASKA Suggested by: Mayor Pat Porter CITY OF KENAI RESOLUTION NO. 2012-24 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, SUPPORTING FUNDING FOR, AND IMPLEMENTATION OF, A PLAN FOR UPGRADES AND IMPROVEMENTS TO THE SEWARD AND STERLING HIGHWAYS. WHEREAS, the Seward and Sterling Highways are among the most critical and heavily traveled traffic corridors in the State of Alaska; and, WHEREAS, use of these transportation corridors can only be expected to increase; and, WHEREAS, the Seward and Sterling Highways provide access for all visitors and users to our communities and our state resources; and, WHEREAS, geography, weather and roadway configurations combine to make the traffic corridors from Kenai to Anchorage, Seward and Homer unacceptably dangerous; and, WHEREAS, upgrades, re- location and re- construction of the Seward and Sterling Highways will result in fewer traffic accidents and fatalities; and, WHEREAS, improved traveling safety for our families, children, businesses, citizens and visitors is a necessity. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that the City of Kenai supports funding for, and implementation of, a plan for upgrades and improvements to the Seward and Sterling Highways. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 2nd day of May, 2012. ATTEST: Corene Hall, Deputy City Clerk 24 PAT PORTER, MAYOR PENDING APPROVAL KENAI CITY COUNCIL - REGULAR MEETING APRIL 18, 2012 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http:/ /www.ci.kenai.ak.us MAYOR PAT PORTER, PRESIDING MINUTES A. CALL TO ORDER Mayor Porter called the meeting to order at approximately 7:00 p.m. A -1. Pledge of Allegiance Mayor Porter led those assembled in the Pledge of Allegiance. A -2. Roll Call There were present: Pat Porter, Mayor Terry Bookey Mike Boyle Brian Gabriel Ryan Marquis, Vice -Mayor Robert Molloy Tim Navarre comprising a quorum of the Council. Also in attendance were: Austin Daly, Student Representative Rick Koch, City Manager Krista Stearns, City Attorney Corene Hall, Deputy City Clerk A -3. Agenda Approval Mayor Porter requested the following change: REMOVE: 0-9. Action /Approval -- ADOT /PF MOA for Beaver Loop Roadway. MOTION: Council Member Bookey MOVED to approve the agenda as amended and requested UNANIMOUS CONSENT. Council Member Marquis SECONDED the motion. There were no objections. SO ORDERED. A -4. Consent Agenda 25 KENAI CITY COUNCIL MEETING APRIL 18, 2012 PAGE 2 MOTION: Council Member Bookey MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Marquis SECONDED the motion. Mayor Porter asked if there were any public comments regarding the consent agenda. There being no one wishing to speak, the public hearing was closed. There were no objections. SO ORDERED. `All items listed with an asterisk (`) are considered to be routine and non - controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. B. SCHEDULED PUBLIC COMMENTS -- None. C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) Megan Haserodt, Kenai Watershed Forum -- spoke about new signage for the bird viewing area near the City Dock, Brooke Carroll, Buccaneer Alaska Operations, LLC -- read a news release regarding moving forward with a project finance facility to purchase the Glacier I Drilling Rig. D. PUBLIC HEARINGS D -1. Ordinance No. 2622 -2012 - Authorizing the City Manager to Enter into a Lease Preference Right Agreement with Thomas Wagoner and Dorothy Wagoner with Respect to Lot 2, Block 1, Gusty Subdivision (11472 Kenai Spur Highway) Located within the Airport Reserve. MOTION: Council Member Marquis MOVED to enact Ordinance No. 2622 -2012 and Council Member Gabriel SECONDED the motion. There were no public or council member comments. VOTE: MOTION PASSED UNANIMOUSLY. D -2. Ordinance No. 2623 -2012 - Amending Kenai Municipal Code Section 23.25.060, "Overtime," to Eliminate the Payment of Overtime in Excess of 26 KENAI CITY COUNCIL MEETING APRIL 18, 2012 PAGE 3 Fair Labor Standards Act (FLSA) Rates to Temporary Employees and Making Technical Corrections. MOTION: Council Member Navarre MOVED to approve Ordinance No. 2623 -2012 and Council Member Marquis SECONDED the motion. Council Member Boyle spoke against the ordinance. Council Member Navarre and Student Representative Daly spoke in favor of the ordinance. VOTE: MOTION PASSED. YEA: Bookey, Gabriel, Marquis, Molloy, Navarre, Porter NAY: Boyle * Student Representative Daly: Yes E. MINUTES E -1. *Regular Meeting of April 4, 2012 Approved by consent agenda. F. UNFINISHED BUSINESS - None G. NEW BUSINESS G -1. Action /Approval - Bills to be Ratified MOTION: Council Member Bookey MOVED to ratify the bills and requested UNANIMOUS CONSENT. Council Member Marquis SECONDED the motion. There were no objections. SO ORDERED. 0-2. Action /Approval - Purchase Orders Exceeding $ 15,000 MOTION: Council Member Bookey MOVED to approve purchase orders exceeding 515,000 and requested UNANIMOUS CONSENT. Council Member Molloy SECONDED the motion. There were no objections. SO ORDERED. 27 KENAI CITY COUNCIL MEETING APRIL 18, 2012 PAGE 4 G -3. *Ordinance No. 2624 -2012 -- Increasing Water & Sewer Fund Estimated Revenues And Appropriations By $10,911 For Costs In Excess Of Budgeted Amounts. Introduced by approval of the consent agenda. G -4. *Ordinance No. 2625 -2012 -- Increasing Airport Fund Estimated Revenues And Appropriations By $20,069 For Costs In Excess Of Budgeted Amounts. Introduced by approval of the consent agenda, G -5. *Ordinance No. 2626 -2012 -- Increasing General Fund Estimated Revenues And Appropriations By $231,638 For Costs In Excess Of Budgeted Amounts And Authorizing A Budget Transfer Within The General Fund In The Amount Of S33,000. Introduced by approval of the consent agenda. G-6. *Ordinance No. 2627 -2012 -- Increasing Estimated Revenues And. Appropriations By S26,515 In The General. Fund For Proqa Emergency Medical Dispatching Software. Introduced by approval of the consent agenda, G -7. *Ordinance No. 2628 -2012 -- Increasing Estimated Revenues And Appropriations By $16,847.35 In The General Fund For Police Digital Evidence Software And Investigative Equipment. Introduced by approval of the consent agenda. 0-8. *Ordinance No. 2629 -2012 -- Amending the Official Kenai Zoning Map by Rezoning a Portion of Lot 1 -Al, R.M. Thompson Subdivision, 2012 Addition from Light Industrial (IL) to General Commercial (CG). Introduced by approval of the consent agenda. G -9. Action /Approval -- ADOT /PF MOA for Beaver Loop Roadway. Removed from the agenda at the beginning of the meeting. H. COMMISSION /COMMITTEE REPORTS Council on Aging -- Council Member Marquis reported on the Meals on Wheels policy discussed at the April 12 meeting. 28 KENAI CITY COUNCIL MEETING APRIL 18, 2012 PAGE 5 11-2. Airport Commission -- Council Member Gabriel reported on the budget discussion at the April 12 meeting. H -3. Harbor Commission -- Council Member Molloy reported the next meeting would be May 7, 2012. H -4. Library Commission -- No report. H -5. Parks and Recreation Commission -- Council Member Bookey reported on the April 5 meeting and requested a special meeting on June 4 to provide a summer parks update. 11-6. Planning and Zoning Commission -- Mayor Porter reported on the April 11 meeting. H -7. Beautification Committee -- Mayor Porter noted the April 10 meeting did not have quorum. I. REPORT OF THE MAYOR Mayor Porter reported on the following: • She heard Senator Begich speak about the safety issues on the highways of Alaska. • She read a proclamation for the Lee Shore Center on Sexual Assault Awareness Month. • She welcomed the Alaska Government Finance Officers Association Conference. • She suggested commission and committee work sessions have an agenda. This was supported by the council. • She suggested the May 10 special meeting be scheduled for 6:00 rather than 7:00 p.m. This was approved. J. ADMINISTRATION REPORTS J -1. City Manager -- City Manager Koch reported on the following: • He had positive interactions with legislators in Juneau. • The Airport recently received the Balchen /Post Award for snow removal efforts at small commercial airports. • He would have a transmittal memorandum regarding the budget to the council members before the work session on April 23. Porter asked for an update on repairs at the Senior Center. Koch reported there would be a report from the engineer soon. Marquis asked if the City would be reimbursed for the seismic study. Koch replied yes. 29 KENAI CITY COUNCIL MEETING APRIL 18, 2012 PAGE 6 Gabriel thanked Koch for updates on the legislative sessions. J -2. City Attorney -- City Attorney Stearns noted oral arguments in the CINGSA case would be next week and noted she had attended a code enforcement workshop. J -3. City Clerk -- Deputy City Clerk Hall reported there would be a shortened packet week for the May 2 meeting due to scheduling issues. K. ADDITIONAL PUBLIC COMMENT K -I. Citizens Comments -- None. K -2. Council Comments Navarre thanked the legislators for their work in Juneau and thanked Koch for his work with the legislators. Daly reported on prom, fund raising and sporting events at Kenai Central High School. Molloy commented on Linda Murphy's testimony at a prior meeting. L. EXECUTIVE SESSION -- discussing pending litigation of which immediate knowledge would have an adverse effect on the finances of the City and to give direction to the City Manager and City Attorney regarding the handling of a specific legal matter -- Tammy Spillman v. City of Kenai, Superior Court Case No. 3KN -11 -00693 CI. MOTION: Council. Member Marquis MOVED to convene into executive session and requested the City Manager and City Attorney attend. Council . Member Bookey SECONDED the motion. VOTE: MOTION PASSED UNANIMOUSLY. BREAK: 7:45 P.M. BACK TO ORDER: 8:56 P.M. Council Member Molloy reported. the Council met in Executive Session and made the following motion: MOTION: Council Member Molloy MOVED to reject the settlement offer dated April 6, 2012 and Council Member Bookey SECONDED the motion. 30 KENAI CITY COUNCIL MEETING APRIL 18, 2012 PAGE 7 VOTE: MOTION PASSED UNANIMOUSLY. Molloy reported the Council gave direction to the City Manager and City Attorney. M. PENDING ITEMS M -1. Ordinance No. 2597 -2011 - Amending Kenai Municipal Code 14.22.010, Land Use Table, to Make Comprehensive Changes to the Uses Allowed in the Suburban Residential (RS), Suburban Residential 1 (RS1), Suburban Residential 2 (RS2), Rural Residential (RR), Rural Residential RR -1, and the Urban Residential (RU) Zoning Districts. /Clerk's Note: At its November 16, 2011 meeting, Council postponed Ordinance No. 2597-2011 to the August 1, 2012 meeting and the ordinance was referred back to the Planning and Zoning Commission so the Commission could continue to consider the changes proposed in this work product during the Comprehensive Plan process] N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at approximately 9:09 p.m. Minutes prepared and submitted by: Corene Hall, CMC, Deputy City Clerk 31 PENDING APPROVAL CITY OF KENAI BUDGET WORK SESSION CITY COUNCIL CHAMBERS APRIL 23, 2012 6:00 P.M. Council Members present: Staff present: Also in attendance: ITEM 1: OVERVIEW NOTES Mayor Pat Porter, Vice Mayor Ryan Marquis, Terry Bookey, Robert Molloy, Brian Gabriel, Tim Navarre, Mike Boyle City Manager Rick Koch, Finance Director Terry Eubank, City Attorney Krista Stearns, Deputy City Clerk Lorene Hall Airport Manager Mary Bondurant, Capital Projects Manager Sean Wedemeyer, City Planner Marilyn Kebschull, Library Director Mary Jo Joiner, IT Manager Dan Castirnore, Fire Chief Mike Tilly, Police Chief Gus Sandahl, Senior Center Director Rachael Craig, Parks and Recreation Director Bob Frates Mayor Porter started the meeting at approximately 6:00 p.m. Finance Director Eubank reviewed the memorandum, noting healthcare saw an increase of 3.1 percent, personnel saw a COLA of 3.6 percent, and PERS on behalf saw an increase of 5 percent. ITEM 2: AGENDA REVIEW 2 -a. Review of Budget by Department There were discussions of each department within the budget. Changes were suggested and made. ITEM 3: SCHEDULE ADDITIONAL WORK SESSIONS) Since the budget discussion was complete, there was no additional work session scheduled. ITEM 4: ADJOURNMENT The work session finished at approximately 9:36 p.m. Notes prepared and submitted by: Corene Hall, CMC, Deputy City Clerk 32 PAYMENTS OVER $15,000.00 WHICH NEED COUNCIL RATIFICATION COUNCIL MEETING OF : MAY 2, 2012 VENDOR DESCRIPTION DEPARTMENT ACCOUNT AMOUNT HOMER ELECTRIC W W INVESTMENTS ELE=CTRIC USAGE VARIOUS UTILITIES 82,358.14 VENDOR DESCRIPTION MATURITY DATE AMOUNT Effect. Int. PURCHASE ORDERS OVER $15,000.00 WHICH NEED COUNCIL APPROVAL COUNCIL MEETING OF: MAY 2, 2012 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT DUMPSTER SCREEN FOSTER CONSTRUCTION CONSTRUCTION PARKS /RECREATION PROFESSIONAL SERVICES 20,525.00 W 4iNCREASE OF EXISTING PURCHASE ORDER VENDOR DESCRIPTION P.O. # - DEPT. REASON AMOUNT TOTAL PO AMT Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2630 -2012 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING ESTIMATED REVENUES AND APPROPRIATIONS IN THE GENERAL FUND FOR PROFESSIONAL SERVICES OBSERVING AND MONITORING THREE DIMENSIONAL SEISMIC SURVEYING BEING CONDUCTED ON CITY PROPERTY AND IN CITY RIGHT - OF -WAYS. WHEREAS, Buccaneer Alaska LLC has conducted three dimensional seismic surveying within the City for the purpose of mapping existing natural gas deposits as well as identifying new deposits for exploration and development; and, WHEREAS, the Oil & Gas industry has a been critical in the success and development of the City; and, WHEREAS, the City issued an excavation permit allowing Buccaneer Alaska, LLC and its contractors access to City property and right -of -ways for the purpose of three dimensional seismic surveying; and, WHEREAS, in order to insure the safety of the public and the City's infrastructure, the excavation permit required Buccaneer Alaska LLC to reimburse the City for the cost of an independent third party to observe seismic surveying activity when in close proximity to public structures or City infrastructure; and, WHEREAS, future oil and gas exploration and development will be critical to the City in maintaining quality, high paying jobs for the citizens of Kenai and requiring a independent observer will help insure protection of public and private property during seismic surveying activity. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: General Fund Increase Estimated Revenues: Miscellaneous Income $16,005 Increase Appropriations: Manager - Professional Services $16,005 New Text Underlined. [DELETED TEXT BRACK"ETEDI 35 Ordinance No. 2630 -2012 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 16th day of May, 2012. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: May 2ncl, 2012 Adopted: May 161h, 2012 Effective: May 16th, 2012 New Text Underlined; IDELETED TEXT BRACKETED] 36 "Village with a Past, C# with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 ext 221 / FAX: 907 - 283 -3014 To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: April 24, 2012 Re: Ordinance 2630 -2012 The purpose of this memo is to provide additional information in support of Ordinance 2630- 2012 which will appropriate funds billed and to be received from Buccaneer Alaska LLC (BA LLC). BA LLC has conducted three dimensional seismic surveying of the Kenai area in an effort to map existing and identify new deposits of natural gas for exploration and development. BA LLC requested and was granted an excavation penult for access to City owned lands and right -of- ways in performance of the seismic surveying. As a condition of that permit, and in an effort to protect public and private property, BA LLC was required to reimburse the City for an independent observer who was present during seismic mapping when in proximity to public structures or City infrastructure. The City contracted with the engineering film of Hattenburg Dilley and Linnell for these observation services at a total cost of $16,005. This ordinance will appropriate the funds billed to BA LLC for the payment of these services. 37 the af,., NAl ALASKA MEMO: "Village with a Past Gity with a Futare" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 / FAX: (907) 283 -3014 www.ci.kenai.ak.us Rick Koch, City Manager \\\:1:0: FROM: Christine Cunningham, Assistant to City Manager DATE: April 24, 2012 SUBJECT: Russell Winger Lease Renewal, Lot 3, Block 4, General Aviation Apron Russell Winger, who operates Aero Maintenance, has leased the referenced property located inside the Airport Reserve for "aircraft storage and maintenance" since the Lease was assigned on April 1, 2003. The term will expire on June 30, 2012. Mr. Winger has submitted an application for a ten -year renewal of his lease. Since the application does not include a proposal to construct new improvements on the premises, or a proposal to add, delete, or alter a business authorized under the lease, the maximum term allowed under the City's Code is five years. The application was reviewed by the Planning Commission at its March 28 meeting, and the Commission voted unanimously to recommend the City proceed with the lease renewal. The application was reviewed by the Airport Commission at its April 12 meeting, and the Commission recommended to Council that the City Manager enter into a five year lease with consideration to be given for an extension of term. Attached is the proposed lease for the referenced property. The lease form was approved by Council in Resolution 2007 -06. The lease includes the following deviations from the lease form which were reviewed by the City Attorney and determined as non - material: b Annual rent was established using the latest Airport Reserve Zone -Based Appraisal, prepared by Derry & Associates on April 10, 2010, and the lease renegotiation cycle was amended under Article V: Adjustment of Rents and Fees so that the first renegotiation of rent would take place in 2015 rather than 2017. Since new construction is not being proposed, any construction or maintenance would be subject to all ordinances under the lease, including building permits, and variance requirements. The 20 -foot building setback referenced in the lease form, 38 Page 2 of 2 April 24, 2012 Russell Winger Lease Renewal, Lot 3, Block 4, GAA Article XIV, Paragraph 7, does not match the current zoning code requirements. To preserve numbering in the lease, Paragraph 7 is intentionally left blank. In paragraph 10 of the same article, damage to improvements, the following language was added due to existing non - conforming improvements on the property: If a structure is non - conforming, the requirements of the Kenai Zoning Code apply (see, e.g., KMC 14.20.050(d)). If there is any conflict between this Lease and the Kenai Zoning Code with respect to repairs or reconstruction of non- conforming structures, the requirements of the Code shall prevail. Mr. Winger is in compliance with both the City and the Borough. If the Kenai City Council approves the attached Lease, it can be executed by the parties. Attachments cc: Russell Winger 39 Lot 3, Block 4, General Aviation Apron Subdivision Russell Winger Lease Agreement Subject Property 40 April 23, 2012 KENAI MUNICIPAL AIRPORT LEASE OF AIRPORT RESERVE LANDS THIS LEASE AGREEMENT entered into this day of , 2012, by and between the CITY OF KENAI, ("City ") 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794, and RUSSELL WINGER individually, ( "Lessee ") whose address is P.O. Box 355, Soldotna, AK 99669. DEFINITIONS For the purposes of this Lease the following terms are defined as follows: 1. Airport - the Kenai Municipal Airport, including all the runways, taxiways, aprons, water lanes, water taxiways, and all City -owned real estate located within the boundaries of the Airport Reserve as defined in KMC 21.05.010 -020. 2. Airport Manager — the official to whom the City Manager of the City has delegated the authority and responsibility of managing and directing the activities of the Airport. "Airport Manager" includes that person's authorized representative. 3. City - the City of Kenai, Alaska, a home rule municipal corporation of Alaska. 4. City Manager - the official to whom the Kenai City Council has delegated the responsibility of managing and directing all activities of the City. 5. Contamination - the unpermitted presence of any released Hazardous Substance. 6. Environmental Law - any applicable federal, state, or local statute, law, regulation, ordinance, code, permit, order, decision, judgment of any governmental entity relating to LEASE OF AIRPORT RESERVE LANDS Page I. of 31 41 City: Lessee: environmental [natters, including littering and dumping. 7. FAA — the abbreviation for the Federal Aviation Administration. 8. Hazardous Substance - any substance that is defined under an Environmental Law as hazardous waste, Hazardous Substance, hazardous material, toxic, pollutant, contaminant, petroleum, petroleum product, or oil. 9. KMC — the abbreviation for the Kenai Muni al Code. 10. Permanent Improvement - a fixed addition or change to land that is not temporary or portable, including a building, building addition, gravel fill, paving, retaining wall, storage tank, and well. ARTICLE 1 PREMISES LEASED A. PREMISES: In consideration of Lessee's payment of the rents and performance of all the covenants of this Lease, the City leases to the Lessee, and the Lessee leases from the City, the following described property ( "Premises ") in the Kenai Recording District, Third Judicial District, State of Alaska and located on the Airport; to wit: Lot 3, Block 4, General Aviation Apron B. NO WARRANTY: Except as may be provided in this Lease, the City makes no specific warranties, expressed or implied, concerning the condition of the Premises including, survey, soils, wetlands, access, and suitability or profitability for any use including those authorized by this Lease, its environmental condition, or the presence or absence of Hazardous Substances in, on, and under the surface. The Lessee takes the Premises on an "as is" basis and without warranty, subject to any and all of the covenants, terms, and conditions affecting the City's title to the Premises. ARTICLE II RIGHTS AND USES A. AUTHORIZED USES 1. USE OF PREMISES: The City authorizes the Lessee to use the Premises for the following purposes only: Aircraft Storage and Maintenance. LEASE OF AIRPORT RESERVE LANDS Page 2 of 3l 42 City: Lessee: 2. CONTINUOUS OPERATIONS: Unless the City approves otherwise in writing, the Lessee will operate its business on the Premises on a continuous basis, uninterrupted by any period of closure over 15 consecutive days or 30 aggregate days within any I2- month period of the term of this lease. The Lessee will give the City written notice before closing the Lessee's business on the Premises for more than 1.0 consecutive days. The notice must state the reason for the closure and the date on which the Lessee will re -open for business. This provision does not apply to any period during which the Lessee is unable to operate its business as a result of an act or directive of the City, or as a result of a closure of the Airport or loss of the Lessee's buildings on the Premises due to fire or natural disaster or order of public authority. B. RIGHTS RESERVED TO THE CITY. 1. RIGHT TO GRANT TO OTHERS: The City reserves the right to grant to others any rights and privileges not specifically granted to the Lessee on an exclusive basis. The rights and privileges granted to the Lessee in this Lease are the only rights and privileges granted to the Lessee by this Lease. 2. EASEMENTS: The City reserves the right to make grants to third parties or reserve to the City easements or rights of way through, on, or above the Premises. The City will not grant or reserve any easement or right of way that unreasonably interferes with the Lessee's authorized uses of the Premises. 3. INGRESS, EGRESS AND INSPECTION: The City reserves the right of ingress to and egress from the Premises and the right to enter any part of the Premises, including buildings, for the purpose of inspection or environmental testing at any time. Except in the case of an emergency, all inspections and environmental testing will he coordinated with the Lessee to minimize interference with the Lessee's authorized uses of the Premises. 4. RIGHT OF FLIGHT: 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 of the Premises. This public right of flight will include the right to cause in the airspace any noise inherent in the operation of any aircraft used for navigation or flight through the airspace or landing at, taking off from, or operation on the Airport. LEASE OF AIRPORT RESERVE LANDS Page 3 of 31 43 City: Lessee: C. PROHIBITED USES Unless specifically authorized by this Lease or an amendment to this Lease, the following are prohibited: 1. Any use of the Premises other than those authorized in this Lease. 2. Any use of the Premises that is in violation of a City Ordinance or an Airport regulation. The outside storage on the Premises of junk, salvage aircraft or vehicle parts, non- operational support equipment, unused or damaged equipment or material, or solid waste or debris unless allowed pursuant to a conditional use permit under KMC 14.20. 4. The disposal on the Premises or the Airport of waste materials generated by the Lessee, including any Hazardous Substance, slash, overburden, and construction waste. 5. The stripping, wasting, or removing any natural material from the Premises without the prior written approval of the City. 6. Erecting structures or allowing growth of natural objects that would constitute an obstruction to air navigation, or allowing any activity on the Premises that would interfere with or be a hazard to the flight of aircraft, or interfere with air navigation or communication facilities, serving the Airport. 7. Any use or activity that is prohibited by applicable law or regulation. ARTICLE III TERM & HOLDOVER A. TERM: The term of this Lease is for five (5) years, from the 1st day of July, 2012 to the 30`1' day of June, 2017. B. HOLDOVER: If the Lessee holds over and remains in possession of the Premises after the expiration, cancellation or termination of this Lease, the holding over will not operate as an extension of the term of this Lease, but only creates a month -to -month tenancy, regardless of any rent payments accepted by the City. The Lessee's obligations for performance under this Lease will continue during the month -to -month tenancy. The City or Lessee may terminate the Lessee's holdover with ten (10) days' advance written notice. LEASE OF AIRPORT RESERVE LANDS Page 4of31 44 City: Lessee: ARTICLE IV RENTS AND FEES A. RENT: The rent for the Premises is $4,200.00 per year, as established by the City pursuant KMC 21.10.100 and as subject to adjustment under Article V of this Lease, plus applicable sales tax. The rent shall be payable annually in advance of the first day of each year of the term of this Lease. All payments required by this Lease must be made in U.S. dollars. If the annual rent exceeds S2,400, the Lessee may, upon written notice to the City, choose to pay the rent in equal monthly installments, payable in advance on or before the anniversary date of the term of this Lease and thereafter at monthly intervals. No conversion of the payment schedule from annual to monthly shall result in the City receiving less rent than it would have received had the conversion not taken place. B. RENT PRORATED: Rental for any period less than one (1) year shall be prorated on the basis of the rent payable under this Lease in the last hill year previous to the prorating. C. ADDITIONAL RENT: In addition to the rent specified in (A) of this Article, Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as follows: 1. Taxes pertaining to the leasehold interest of the Lessee. Sales tax now enforced or levied in the future, computed upon rent payable in monthly installments whether the Lessee pays rent under this Lease on a monthly or annual basis. 3. All taxes and assessments levied in the future by the City, as if Lessee was the legal owner of record of the Premises. 4. Reimbursement for City constructed improvements under Article XV. D. PAYMENTS: The Lessee shall make checks, bank drafts, or postal money orders payable to the City of Kenai and deliver payments to City of Kenai, Finance Department, 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 or any other address the City may designate in writing to the Lessee. E. INTEREST: Beginning the day after payment is due, all unpaid rents, charges, and fees required under this Lease will accrue interest at the rate of eight percent (8.0 %) per =nun. Interest on disputed amounts will not be charged to the Lessee if the dispute is resolved in the Lessee's favor. F. LATE PAYMENT PENALTY: in addition to any interest payable under Provision (E) of this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease, LEASE OF AIRPORT RESERVE LANDS Page 5 of 31 45 City: Lessee: the City will charge, and the Lessee shall pay, an administrative penalty of ten percent (10.0 %) of the amount due and unpaid.. G. COURTESY BILLINGS: Lessee acknowledges that any billing statement issued by the City is provided only as a courtesy. The Lessee is obligated to pay all rents and fees when due, regardless of whether or not the Lessee receives a billing statement from the City. H. LIEN AGAINST LESSEE: Any rent, charge, fee, or other consideration which is due and unpaid at the expiration, termination, or cancellation of this Lease will be a lien against the Lessee's property, real or personal. I. PAYMENT OF CITY'S COSTS: The Lessee will pay all reasonable actual expenses, costs, and attorney fees City may incur, with or without formal action, to enforce, defend, or protect this Lease or City's rights under this Lease, including any expense incurred with respect to environmental compliance, bankruptcy or any proceeding that involves the Lessee, the Lease, the Premises, or improvements or personal property on. the Premises. The Lessee will make payment within 30 days of the date of each notice from City of any amounts payable under this provision. J. PAYMENT FOR SPECIAL SERVICES: Lessee agrees to pay the City a reasonable fee for any special services or facilities the City agrees to perform, which the City is not otherwise obligated by this Lease to provide and which the Lessee requests from the City in writing. ARTICLE V ADJUSTMENT OF RENT AND FEES A. RENT OR FEE ADJUSTMENT: At intervals of approximately five (5) years, the City shall, in its sole discretion, adjust the rent or a fee payable by the Lessee under Article IV or other provision of this lease. The first rent adjustnient shall be made in 2015. The amount to which the City increases or decreases any rent or fee shall be established in accordance with KMC 21.10.100 and 21.10.160. Any rent change by the City shall be based on the fair market value of: 1. The Premises in its condition on the ten n beginning date stated in Article III or in the case of a lease renewal or extension, the beginning date for the original lease; plus 2. Any improvements made by the City subsequent to that date, the cost of which is not reimbursed by the Lessee. LEASE OF AIRPORT RESERVE LANDS Page 6 of 31 46 City: Lessee: No rent or fee change shall be effective until 30 days after the date of the City's written notice to the Lessee. if the Lessee believes that any changed rent exceeds the fair market rent for the Premises, the Lessee may appeal the rent change to the City under KMC 21.10.160. B. CITY - CONSTRUCTED IMPROVEMENTS: Improvements constructed by the City on, or in connection with, the Premises shall not be considered a part of the Premises for the purpose of establishing the rent under (a) of this Article, if the Lessee, as a condition of this lease, reitnburses the City for the City's construction costs pursuant to KMC 21.10.110. ARTICLE VI ASSIGNMENT & SUBLETTING A. INVALID WITHOUT CITY'S CONSENT: The Lessee may not assign, sublet, or grant a security interest in, by grant or implication, the whole or any part of this Lease, the Premises, or any improvement on the Premises without the written consent of the City. Any proposed assignment, sublease, or security interest must be written and must be submitted to the City hearing the original, notarized signature of all parties. The Lessee may submit unsi_ened draft documents for the City's conceptual review. However, the City's conceptual approval of a draft document may not be construed as the City's consent to any assignment, sublease, or security interest. All provisions in this Lease extend to and bind the assignees and sublessees of the Lessee, B. NO WAIVER OF CONSENT: The City's consent to one assignment, sublease, or security interest will not waive the requirement for the Lessee to obtain the City's consent to any other assignment, sublease, or security interest. C. ASSIGNEE / LESSEE OBLIGATIONS: An assignment must include a provision stating that the assignee accepts responsibility for all of the assignor's (Lessee's) obligations under this Lease, including environmental liability and responsibility. However, unless the City specifically releases the Lessee in writing, the City may hold the Lessee responsible for performing any obligation under this lease which an assignee fails to perform.. D. OCCUPANCY BEFORE CITY CONSENT: An assignee or sublessee may not occupy the Premises before the City consents to the assignment or sublease in writing. E. CONFLICT OF PROVISIONS: In the event of a conflict between this Lease and an assignment or a sublease, the tenns of this Lease control. F. LESSEE NOT RELIEVED OF OBLIGATIONS: The City's consent to any sublease does not relieve or otherwise alter the Lessee's obligations under this Lease. G. SECURITY ASSIGNMENTS AND FINANCING: LEASE OF AIRPORT RESERVE LANDS Page 7of31 47 City: Lessee: Subject to the requirements of (A) of this Article VI, the Lessee may assign a security interest in this Lease. The security interest may be in the form of a mortgage, deed of trust, assignment or other appropriate instrument, provided: a. the security interest pertains only to the Lessee's leasehold interest; b. the security interest does not pertain to or create any interest in City's title to the Premises; and c. the documents providing for the security interest are acceptable to the City. 2. If the assignment of a security interest to which the City has consented shall be held by an established lending or financial institution, including a bank, an established insurance company and qualified pension or profit sharing trust, and the lending institution acquires the Lessee's interest in this Lease as a result of a foreclosure action 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, the lending institution may transfer its interest in this Lease to a nominee or a wholly owned subsidiary corporation with the prior written consent of the City, provided, the transferee assumes all of the covenants and conditions required to he performed by the Lessee (including payment of any monies owed by Lessee to the City under the lease). In the event of such a transfer, the lending institution shall be relieved of any further liability under this Lessee. A holder of a security interest in this Lease consented to by the City shall have, and be subrogated to, any and all rights of the Lessee with respect to the curing of any default of this Lease by Lessee. 4, If, before any default has occurred in the Lease, the holder of a security interest in this Lease consented to by the City gives the City a written notice of the holder's post office address, the City shall thereafter a. by regular U.S. mail, send to the holder a copy of each notice of default at the sane time as the City gives notice of default to the Lessee; and b not accept any surrender or enter into any modification of this Lease without the prior written consent of the holder, which the holder shall not unreasonably delay or withhold.. LEASE OF AIRPORT RESERVE LANDS Page 8 of 31 48 City: Lessee: S. The City will enter into a new lease of the Premises with the holder of a security interest consented to by the City, if the City terminates this Lease prior to its normal expiration due to a default by the Lessee. The new lease shall be for the remainder of the tenn of this Lease and shall be effective as of the termination of this Lease. The City's grant of the new lease shall be subject to the following conditions: a. the new lease shall be effective on the date this Lease is terminated; b. the new lease shall be for the same rem, additional rent, and covenants as this Lease; e. By no later than the twentieth (20th) day following the termination of this Lease, the security holder must submit a written request to the City for the new lease, together with payment of all rent, additional rent and other sums then due to the City under this Lease. d. The security holder 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, e. The security holder shall, on or before the execution of the new lease, perform all the other obligations of the Lessee under this Lease to the extent the Lessee failed to perform them prior to the termination of this Lease, 6. A holder of a security interest consented to by the City that takes possession of this Lease or enters into a new lease with the City shall not be released from the obligations and liabilities of this Lease or the new lease unless the holder assigns its leasehold estate to an assignee who is financially capable and otherwise qualified to undertake to perform and observe the conditions of this Lease or the new lease and the City consents to the assignment. The City's consent will not be unreasonably withheld. If the security holder asserts that the City is unreasonably withholding its consent to a proposed assignment, the dispute shall be resolved by arbitration, ARTICLE VII MAINTENANCE, SNOW REMOVAL & UTILITIES LEASE OF AIRPORT RESERVE LANDS Page 9 of 31 49 City: Lessee: A. MAINTENANCE At no cost to the City, the Lessee will keep the Premises and all improvements on the Premises clean, neat and presentable, as reasonably determined by the City. 2. At no cost to the City, the Lessee will provide for all maintenance and services at the Premises as may be necessary to facilitate the Lessee's compliance with this Lease and the Lessee's use of the Premises. 3. The Lessee shall comply with all regulations or ordinances of the City that are promulgated for the promotion of sanitation. At no cost to the City, the Lessee shall keep the Premises in a clean and sanitary condition, and control activities on the Premises to prevent the pollution of water. 4. The Lessee agrees to comply with all decisions and directions of the City's Airport Manager regarding maintenance and operation of the Airport, and the use of the Airport by the Lessee. B. SNOW REMOVAL 1. At no cost to the City, the Lessee is responsible for snow removal on the Premises. The Lessee shall dispose of snow in an off - Premises location approved in writing by the City or provide suitable snow storage within the boundaries of the Premises in accordance with all applicable federal and state laws. At the request of the Airport Manager, the Lessee shall suhrnit a snow removal plan for the Premises to the Manager for review. Upon approval of the Lessee's plan by the Airport Manager, the Lessee shall conduct all snow removal operations on the Premises in accordance with the approved plan. 2. Lessee shall not deposit snow on an apron, taxiway, safety area, or other aircraft- maneuvering surface provided for common use by others without the prior written approval of the Airport Manager. 3. Lessee agrees to not allow an accumulation of snow on the Premises that would cause interference with adjoining leaseholders or other users of the Airport. C. UTILITIES. Unless specifically provided otherwise in this Lease, the Lessee shall, at no cost to the City, provide for all utilities at the Premises necessary to facilitate the Lessee's use of the Premises. LEASE OF AIRPORT RESERVE LANDS Page 10 of 31 50 City: Lessee: ARTICLE VIII OPERATIONS A. OPERATIONS ON THE AIRPORT: The Lessee will ensure that the Lessee, its employees, guests, contractors, sublessees, and vendors that perform any activity or function authorized under this Lease shall do so in a manner that ensures the safety of people, the protection of public health and the environment, and the safety and integrity of the Airport and the Premises. B. LESSEE'S CONTROL AND RESPONSIBILITY The Lessee will assume full control and sole responsibility as between Lessee and City for the activities of' the Lessee, the Lessee's personnel and employees, and anyone else acting by, on behalf of, or under the authority of the Lessee on the Airport, including the Premises. 2. The Lessee will immediately notify the City of any condition, problem, malfunction or other occurrence that threatens the safety of people or the Airport, harm to public health or the environment, or the safety or integrity of the Premises. C. RADIO INTERFERENCE: The Lessee will discontinue the use of any machine or device that interferes with any government- operated transmitter, receiver, or navigation aid until the cause of the interference is eliminated. D. WILDLIFE: The Lessee acknowledges that a concentration of birds or other wildlife on an airport constitutes a significant hazard to aircraft operations. The Lessee agrees to keep the Premises clean of fish slime, fish waste, or any other material that might attract birds or other wildlife. The Lessee accepts full responsibility to maintain the Premises, control operations, and take all reasonable measures to prevent a concentration of birds or other wildlife on the Premises. E. PARKING: The Lessee will provide adequate vehicle, equipment, and aircraft parking space on the Premises for Lessee's business or activities, or confine parking to such other places on the Airport as may be approved or designated in writing by the Airport Manager. ARTICLE IX ENVIRONMENTAL PROVISIONS A. HAZARDOUS SUBSTANCE 1. The Lessee will conduct it business and /or operation on the Premises in LEASE OF AIRPORT RESERVE LANDS Page 11 of 31 51 City: Lessee: compliance with all environmental laws and permits. If hazardous substances are handled on the Premises, the Lessee agrees to have properly trained personnel and adequate procedures for safely storing, dispensing, and otherwise handling Hazardous Substances in accordance with all applicable federal, state and local. laws. Lessee will promptly give the City notice of proceeding to abate or settle matters relating to the presence of a Hazardous Substance on the Premises or from Lessee's operations on the Airport. The Lessee will allow the City to participate in any such proceedings. B. ENVIRONMENTAL INDEMNIFICATION If Contamination of the Premises or other property by a Hazardous Substance occurs from the Lessee's operations on the Premises the Lessee will indemnify, defend, and hold the City harmless from any and all claims, judgments, damages, penalties, fines, costs, liabilities, or losses, including, but not limited to, sums paid in settlement of claims, attorney's fees, consultant fees, and expert fees, which arise during or after the term of this Lease as a result of such Contamination. This indemnification of the City by Lessee includes, but is not limited to, costs incurred in connection with any investigation of site conditions or any cleanup, remediation, removal, or restorative work required by any federal, state, or local governmental agency because of a Hazardous Substance being present in the soil or groundwater or under the Premises or other properties affected by the Contamination. C. RDMEDIATION I. In the event of a Hazardous Substance spill on the Premises, the Lessee will immediately notify the City and the Alaska Department of Environmental Conversation and act, promptly, at its sole expense, to contain the spill, repair, any damage, absorb and clean up the spill area, and restore the Premises to a condition satisfactory to the City and otherwise comply with the applicable portions of any environmental law. 2. In addition to any notices required by this Lease, the Lessee will immediately notify and copy the City in writing of any of the following: A. Any permit, enforcement, clean up, lien, removal or other governmental or regulatory action instituted, completed, or threatened pursuant to an Environmental Law. B. Any claim made or threatened by any person against the Lessee or arising from the Lessee's operations authorized by this Lease, relating to damage, contribution, compensation, loss or injury resulting, from, or claimed to LEASE OF AIRPORT RESERVE LANDS Page 12 of 31 52 City: Lessee: result from any Hazardous Substances in, on, or under the Airport; or C. Any report made by, or on behalf of the Lessee to any environmental agency arising out of or in connection with any Hazardous Substances in, on, or removed from the Premises, including any complaints, notices, warnings, or asserted violations. 3. Remediation and restoration of the contaminated area must meet all applicable state and federal regulations and must meet the requirements of all governing regulatory authorities. D. ENVIRONMENTAL AUDIT The Lessee will provide the City with all investigative data, test results, reports , and any other information gathered or analyzed as part of or in relation to any Environmental Assessment, characterization or audit on the Premises or the Airport that Lessee performs or causes to be performed after the starting date of this Lease. The Lessee will submit the data, result, report or information to the City within 60 days following the date on which it becomes available to the Lessee. E. RELEASE OF LESSEE The City releases the Lessee from liability to the City for Contamination and the presence of Hazardous Substances that existed prior to the commencement date of this lease unless caused or materially contributed to by the Lessee. F. SURVIVAL OF OBLIGATIONS The obligations and duties of the City and Lessee under Article IX of this lease shall survive the cancellation, termination or expiration of this lease. ARTICLE X INDEMNIFICATION & INSURANCE INDEMNIFICATION The Lessee will indemnify, save harmless, and defend the City, its officers, agents, and employees from and against any and all liabilities, losses, suits, administrative actions, claims, awards, judgments, fines, demands, damages, injunctive relief or penalties of any nature or kind to the full extent of the loss or obligation for property damage, personal injury, death, violation of any regulation or grant agreement, or any other injury or hann resulting from or arising out of any acts or commission of or omission by the Lessee, his agents, employees, LEASE OF AIRPORT RESERVE LANDS Page 13 of 31 53 City: Lessee: customers, invitees or arising out of the Lessee's occupation or use of the premises demised or privileges granted, and to pay all costs connected therewith. This indemnification of the City by the Lessee shall include sums paid in settlement of claims, attorney fees, consultant fees, expert fees, or other costs and expenses, directly or indirectly arising from, connected to or on account of this Lease as it relates to the Lessee, the Lessee's activities at or relating to the Airport, or any act or omission by the Lessee, or by any of its officers, employees, agents, contractors or sublessees. These indemnity obligations are in addition to, and not Limited by, the Lessee's obligation to provide insurance, and shall survive the expiration or earlier termination of this Lease. 2. The Lessee shall give the City prompt notice of any suit, claim, action or other matter affecting the City to which Paragraph 1, above, may apply, together with a copy of any letter by an attorney on behalf of a complainant, any complaint filed in court, and any notice or complaint by any regulatory agency. The City shall have the right, at its option, to participate cooperatively in the defense of, and settlement negotiations regarding, any such matter, without relieving the Lessee of any of its obligations vender this provision. As to any amount paid to others for personal injury or property damage with respect to which an act or omission of the City is a legal cause, notwithstanding Paragraph 1 of this section, the Lessee and the City shall reimburse each other according to the principles of comparative fault. If liability to a third party is subject to apportionment according to comparative fault under this provision, the Lessee and the City shall seek in good faith to achieve non - judicial agreement as to apportionment of fault as between themselves. This apportionment of liability between the City and the Lessee shall not be construed to affect the rights of any person who is not a party to this Lease. B. INSURANCE: At no expense to the City, the Lessee will obtain and keep in force during the term of this Lease, insurance of the type and limits required by this provision. Where specific limits are set, they will be the minimum acceptable limits. If the Lessee's policy contains higher limits, the City will be entitled to coverage to the extent of the higher limits. At the time insurance is obtained by the Lessee, all insurance shall be by a company/corporation rated "A -" or better by A.M. Best. The following policies of insurance are required with the following minimum amounts: 1. Commercial General Liability, including Premises, all operations, property damage, products and completed operations, and personal injury and death, broad -form contractual, with a per - occurrence limit of not less than 51,000,000 combined single limit. If this lease authorizes the Lessee to engage in the sale or the commercial dispensing or storage of aviation fuel, the policy must not exclude LEASE OF AIRPORT RESERVE LANDS Page 14 of 31 54 City: Lessee: of the Lessee's fuel handling activities. This policy must name the City as an . additional insured. 2. Commercial Automobile Coverage with not less than S 1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non -owned motor vehicles used by the Lessee, Workers Compensation Insurance. The Lessee will provide and maintain, for all employees, coverage as required under AS 23.30.045, and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. 4. The Lessee will provide the City with proof of insurance coverage in the fonn of an insurance policy or a certificate of insurance, together with proof that the premiums have been paid, showing the types and monetary limits of coverage secured, All insurance required by this provision must provide that the City he notified at least 30 days prior to any termination, cancellation, or material change in the insurance coverage. 5. If the Lessee's insurance coverage lapses or is cancelled, Lessee will immediately, upon written notice by the City, halt all operations on the Airport, including the Premises. The Lessee will not resume operations until the City receives evidence that the Lessee has obtained current insurance coverage meeting the requirements of this Lease. 6. The City may, at intervals of not less than five years from the beginning date of the temi of this Lease and upon written notice to Lessee, revise the insurance requirements required under this Lease. City's detennination 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 any change in applicable law. 7. If the Lessee subleases all or any portion of the Premises under the provisions of this Lease, the Lessee will require the sublessee to provide to the insurance coverage required of the Lessee under this Article X. ARTICLE XI LAWS & TAXES A. COMPLIANCE WITH LAW: Lessee shall coinply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the Airport, the LEASE OF AIRPORT RESERVE LANDS Page 15 of 31 55 City: Lessee: Premises or the sidewalks, alleys, streets, and ways adjacent to the Premises, 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: I. From the consequences of any violation of such laws, ordinances, and/or regulations; and 2. From all claims for damages on account of injuries, death, or property damage resulting from such violation. B. UNLAWFUL ACTIVITY: The Lessee shall not permit any unlawful use, occupation, business, or trade to be conducted on the Premises contrary to any law, ordinance, or regulation, including zoning ordinances, rules and regulations. C. LICENSES AND PERMITS: The Lessee will obtain all necessary licenses and permits, pay all taxes and special assessments lawfully imposed upon the Premises, and pay other fees and charges assessed under applicable law. Nothing in this Lease prevents the Lessee from challenging any taxes or special assessments to the appropriate authority. D. LITIGATION: The KMC, including regulations promulgated thereunder, and the laws of the State of Alaska will govern in any dispute between the Lessee and City. If a dispute continues after exhaustion of administration remedies, any lawsuit must be brought in the courts of the State of Alaska, in Kenai, Alaska. E. LESSEE TO PAY TAXES: Lessee shall pay all lawful taxes and assessments which, during the term of this Lease 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 Premises or improvements on the Premises by reason of its use or occupancy or the terms of this Lease provided, however, that nothing in this provision shall prevent Lessee from contesting any increase in a tax or assessment under any applicable law, ordinance, or regulation. F. 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 temps, provisions, conditions, or parts shall continue in full force and effect as though the declaration had not been made. ARTICLE XII LEASE TERMINATION LEASE OF AIRPORT RESERVE LANDS Page 16of31 56 City: Lessee: A. CANCELLATION: The City may, after 30 days' written notice to the Lessee, cancel this Lease and recover possession of the Premises if any of the following violations occur, unless the violation is cured within the 30 days: 1. The Lessee fails to pay when due the rents, additional rents, charges, or other sums specified in this Lease, including any increases made under this Lease. 2. The Lessee's check for payment of any sum due under this Lease is returned for insufficient funds. The Lessee uses or authorizes the use of the Premises for any purpose not authorized by this Lease. 4. The Lessee fails to fully perform and comply with any provision in this Lease. The court enters a judgment of insolvency against the Lessee. 6. A trustee or receiver is appointed for the Lessee's assets in a proceeding brought by or against the Lessee, or the Lessee files a voluntary petition in bankruptcy. 7. Failure by the Lessee to comply with any land development or permanent improvement constriction required by this Lease. B. ENTRY AND RE- ENTRY: In the event that the Lease should be terminated in accordance with this Article XII, or by summary proceedings or otherwise, or upon the Lessee's abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or representatives may, immediately or any time thereafter, re- enter, and resume possession of the Premises or portion thereof, and remove all persons and property therefrom, without being liable for any damages therefore. No re -entry by the City shall he deemed an acceptance of a surrender of the Lease. C. CONTINUING OBLIGATIONS UNTIL PREMISES VACATED: The Lessee will continue to pay City rent after the expiration, termination, or cancellation of this lease and to abide by the lease obligations, including providing proof of insurance coverage, through the date Lessee relinquishes possession of and completely vacates the Premises. City will consider the Premises completely vacated if the Lessee has; 1. Remediated any environmental contamination for which the Lessee is responsible; and 2. Restored the Premises to a neat and clean physical condition acceptable to the City. LEASE OF AIRPORT RESERVE LANDS Page 17 of 31 57 City: Lessee: D. REASONABLE CURE 1. In the case of a violation that cannot be reasonably cured within 30 days, a notice of cancellation issued by the City to the Lessee under this Article is stayed if, within the 30 -day notice period, the Lessee begins and continues expeditious action to cure the violation. The City will determine if a violation cannot be reasonably cured within 30 days and what constitutes expeditious action. 2. In the case where, in City's sole determination, Lessee's violation is considered an imminent threat to the airport, public health or safety, or the environment, City will direct the Lessee to stop the activity immediately and may reduce the period to cure the violation, or the City may correct the violation pursuant to (E) of this Article. E. RIGHT OF CITY TO PERFORM: 1. If, after 30 days following notice the Lessee fails or refuses to perform any action required by this Lease, the City will have the right, but not the obligation, to perform any or all such actions required by this Lease at the sole expense of the Lessee. The City will not take action if the Lessee begins and continues expeditious action to perform any action required by this Lease that cannot he reasonably completed within 30 days. The City will, at its sole discretion, determine what constitutes expeditious action and if an action cannot be reasonably performed in 30 days. The City will submit to the Lessee an invoice for the expenses incurred by the City in the performance by the City of any required action. The Lessee will pay the amount of each invoice within 30 days from issuance. 2. If Lessee fails or refuses to perform any action that has been deemed an imminent threat the City will have the right, but not lhe obligation, to perform any or all such actions required to expeditiously correct the imminent threat. Lessee shall reimburse the City for any cost, including legal fees and administrative costs reasonably incurred by the City in acting to correct the imminent threat violation. F. WAIVER: A waiver by the City of any default by the Lessee of any provision of this Lease will not operate as a waiver of any subsequent default. If the City waives a default, the City is not required to provide notice to the Lessee to restore or revive any term or condition under this Lease. The waiver by the City of any provision in this Lease cannot be enforced or relied upon unless the waiver is in writing and signed on behalf of the City. The City's failure to insist upon the strict performance by the Lessee of any provision in this Lease is not a waiver or relinquishment for the future, and the provision will continue in full force. LEASE OF AIRPORT RESERVE LANDS Page 18 of 31 58 City: Lessee: G. AIRPORT CLOSURE: 1. If the City closes the airport to aircraft operations for sixty (60) days or less, this Lease will remain in full force and effect without adjustment 2. If the City closes the Airport to aircraft operations for more than sixty (60) days, but not permanently, and this Lease is for aviation or direct aviation support uses, the Lessee may, upon written notice to the City, either terminate the Lease or retain the Lease and receive a fifty (50 %) percent rent reduction or credit for that portion of the closure that exceeds sixty (60) days. If the City permanently closes the Airport to aircraft operations and (a) this Lease is for aviation or direct aviation support uses, the Lessee may terminate this agreement by written notice to the City; or (b) this Lease is for non - aviation uses, the Lessee may request in writing to have the Lease terminated. The City will consider the Lessee's request in light of the City's best interest and either terminate the Lease, or deny the Lessee's request in writing. H. DISASTERS The Lessee or City may cancel this lease upon written notice to the other party if; 1. the Premises becomes unusable through no fault of either party and performance under this lease becomes impossible; or 2, the Airport becomes unusable through no fault of either party and the perfommance under this lease becomes impossible. If the Lessee elects in writing that it will continue to operate after notice from City to Lessee that the Airport has become unusable, the Lessee's obligations under the Lease will continue, but City shall be under no obligation to continue to perform. Causes for termination of the lease under this provision (H) include acts of God, the public enemy, and the United States. I. NATIONAL EMERGENCY: If the federal government declares a national emergency, neither party may hold the other liable for any inability to perform any part of this Lease as a result of the national emergency. LEASE OF AIRPORT RESERVE LANDS Page 19 of 31 59 City: Lessee: J. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII, Lessee shall, on the last day of the temr of this Lease (including any extension or renewal thereof) or upon any earlier termination of this Lease, surrender and deliver up the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for Loans to City. ARTICLE XIII GENERAL COVENANTS A. USE OF THE AIRPORT: Except as provided herein, any regular use of Airport 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. B. COSTS AND EXPENSES: Costs and expenses incident to this lease, including but not limited to recording costs, shall be paid by Lessee. C. CARE OF THE PREMISES: The Lessee shall keep the Premises clean and in good order at the Lessee's 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 earlier termination of the Lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. D. CONSTRUCTION APPROVAL AND STANDARDS: Any building construction on the Premises by the Lessee must be compatible with its surroundings and consistent with the uses authorized under this Lease, as detemrrined by the City. The Lessee must obtain the City's written approval before placing fill material, beginning any land development, or constructing or demolishing any improvements on the Premises, and before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation, together with specifications or any other information the City reasonably requires. Further, the Lessee will submit to City evidence of the Lessee's compliance with Federal Aviation Administration regulation 14 CFR Part 77. E. LEASE SUBORDINATE TO AIRPORT 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 LEASE OF AIRPORT RESERVE LANDS Page 20 of 31 60 City: Lessee: shall not act to reduce the rights or privileges granted the Lessee by this Lease, nor act to cause the Lessee financial loss. F. RIGHT TO ENJOYMENT AND PEACEABLE POSSESSION: City hereby agrees and covenants that the Lessee, upon paying rent and performing other covenants, terns, and conditions of this Lease, shall have the right to quietly and peacefully hold, use, occupy, and enjoy the Premises, except that the following shall not construed as a denial of the right of quiet or peaceable possession: 1. Any inconvenience caused by public works projects in or about the Premises; and Any other entries by the City on the Premises reserved or authorized under other provisions of this Lease. G. NO PARTNERSHIP OR JOINT VENTURE CREATED: It is expressly understood that the City shall not he construed or held to he a partner or joint venture of Lessee in the conduct of the Lessee's activities or business on the Premises. The relationship between the City and the Lessee is, and shall at all times remain, strictly that of landlord and tenant, respectively. H. DISCRIMINATION: The Lessee will not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or state law. The Lessee recognizes the right of the City to take any action necessary to enforce this provision, including actions required pursuant to any federal or state law. I. AFFIRMATIVE ACTION: If required by 14 CFR Part 152, subpart E, the Lessee will undertake an affirmative action program to insure that no person will be excluded from participating in any employment activities offered by the Lessee on the grounds of race, creed, color, national origin, or sex. No person may he excluded on these grounds from participating in or receiving the services or benefits of any program or activity covered by subpart E. The Lessee further agrees that it will require its suborganization(s) provide assurance to the City to the same effect that they will also undertake affirmative action programs and require assurances from their suborganization(s) as required by 14 CFR, Part 152, subpart E. Tenant shall use the premises in compliance with all other requirements imposed by or pursuant to title 49, code of Federal Regulations, DOT, 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 the Regulation may be amended. J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms, conditions, and agreements of the parties and supersedes any previous understandings or LEASE OF AIRPORT RESERVE LANDS Page 21 of 31 61 City: Lessee: agreements regarding the Premises whether oral or written. No modification or amendment of this Lease is effective unless in writing and signed on behalf of the City and the Lessee. K. RIGHT TO ADOPT RULES: City reserves the right to adopt, amend, and enforce reasonable rules and regulations governing the Airport, including the Premises. The City shall not be liable to Lessee for any diminution or deprivation of possession, or of Lessee's rights under this Lease, on account of the exercise of the City's authority reserved under this provision. Furthermore, the Lessee shall not be entitled to terminate the whole or any portion of the leasehold estate created under this Lease, by reason of the exercise of the City's authority reserved under this provision, unless the exercise thereof so interferes with Lessee's use and occupancy of the Premises as to constitute a termination, in whole or in part, of this Lease by operation of law under the laws of the State of Alaska and of the United States made applicable to the states. L. LESSEE'S OBLIGATION TO PREVENT AND 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 Premises or improvements on the Premises 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 the Premises or improvements by or at the direction or sufferance of Lessee. Provided, however, the Lessee shall have the right to provide a bond as contemjnlated by Alaska law and contest the validity or amount of any such lien or claimed lien. Upon a final determination of the lien or claim for lien, the Lessee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Lessee's own expense. M. CONDEMNATION: In the event the 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 the condemnation or taking, the City and the Lessee shall make a good faith effort to agree upon 1. the division of the proceeds; 2, the abatement in rent payable during the temp or any extension of the term of this Lease; and 3. other adjustments as the parties may agree upon as being just and equitable under all the circumstances. If, within thirty (30) days after the award has been paid into Court, the City and Lessee are unable to agree upon what division, abatement in rent, and other adjustments as are just and equitable, the dispute shall be determined by arbitration. LEASE OF AIRPORT RESERVE LANDS Page 22 of 31 62 City: Lessee: N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the patties hereto, subject to such specific limitations on assignment as are provided for in this Lease. 0. NOTICES: Any notices required by this Lease must be in writing and must he delivered personally or mailed by certified or registered mail in a prepaid envelope. A mailed notice a. must be addressed to the respective party at the address written on the first page of this Lease or to the latest address designated in accordance with (2) of this Provision (0); and b. shall be deemed delivered on the date it is deposited in a U.S. general or branch post office. 2. The City or the Lessee may, from time to time, designate a new address at which they will receive notices by providing the other party with written notice at least 15 days prior to the effective date of the change. An address change notice must be delivered according to the procedure set out in (1) of this Provision (0). P. RETENTION OF RENTAL: In the event the City terminates this Lease because of any breach by the Lessee, the City shall retain any unused balance of the rental payment last made by the Lessee City as partial or total liquidated damages for the breach. Q. 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 on the Airport. R. PERSONAL USE OF MATERIALS: No interest in coal, oil, gas or any other mineral, or in any deposit of stone or gravel valuable for extraction or utilization is included in the Premises or in the rights granted by this lease.. The Lessee shall not sell or remove from the Premises for use elsewhere any timber, stone, gravel, peat moss, topsoil or any other material valuable for building or commercial purposes. S. APPROVAL OF OTHER. AUTHORITIES: The granting of this lease by the City does not relieve the Lessee of the responsibility to obtain any license or pemit as may be required by federal, state, or local law. T. EXECUTION BY THE PARTIES: This Lease is of no effect unless signed by the Lessee, or a duly authorized representative of Lessee, and an authorized representative of the LEASE OF AIRPORT RESERVE LANDS Page 23 of 31 63 City: Lessee: City. U. CAPTIONS: The captions of the provisions of this Lease are for convenience only and do not necessarily define, limit, describe, or construe the contents of any provision. V. RIGHTS OF CONSTRUCTION: This Lease is intended to make public property available for private use, while at all times protecting the public interest to the greatest extent possible. Following the rule that transfers of interest in public property are to be strictly construed in favor of the public property landlord, all rights granted to the Lessee under this Lease will be strictly construed, and all rights of the City and the protections of the public interest will be liberally construed. W. LESSEE ACKNOWLEDGEMENT: The Lessee acknowledges that the Lessee has read this Lease and fully understands its tenn.s, that the Lessee has been fully advised or has had the opportunity of advice by separate legal counsel, and voluntarily executes this Lease. Lessee also acknowledges and agrees that the rule of interpretation under which a document is construed against the drafter will not apply to this Lease. X. APPROVAL BY LESSOR: Any approval required of the Lessor by this Lease will no be unreasonably withheld. The Lessor's approval does not waive the Lessee's legal responsibility or liability to comply with all applicable federal and state laws and regulations. ARTICLE XIV SURVEY, IMPROVEMENTS AND PERFORMANCE BOND A. SURVEY: The Lessee is solely responsible, at its sole expense, to confirm or establish the physical location of the boundaries of the Premises prior to beginning any construction thereon, including clearing grubbing, back - filling and environmental sampling. Any survey of the Premises shall be performed by a. Land Surveyor registered in. the State of Alaska. The Lessee shall furnish the City with a copy of the plat of any survey performed on the Premises by, or on behalf of. the Lessee. B. IMPROVEMENTS. LEASE OF AIRPORT RESERVE LANDS Page 24 of 31 64 City: Lessee: REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including N /A, by no later than N /A, with an appraised value of at least SN /A. In addition to the as -built drawings required by this Lease, the Lessee must submit to the City written evidence that the Lessee has completed the land development and constructed improvements on the Premises with an aggregate cost or investment of not less than SN /A. The evidence of cost must be submitted to the City within sixty (60) days of the completion of the development and improvements, but by no later than N /A. a. Costs considered toward the aggregate cost of permanent improvements include building construction, design, labor, materials, materials shipping, permits, equipment, soil testing, environmental baseline report, and environmental assessment directly related to the construction; premises and as -built surveys; site preparation, including excavation, geotextile fabric, filling, grading, fill material, gravel, and pavement, remediation of environmental contamination (unless Lessee caused or materially contributed to the contamination); and utility connection costs. b. The cost of Permanent Improvements excludes (i) work performed by the City and not reimbursed by the Lessee; and (ii) work performed by the Lessee and reimbursed by the City. 2. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete the required construction within the time allowed under (B)(1) of this Article, including any extensions granted, the City will execute against and the Lessee will forfeit, any bond or other guarantee given by the Lessee and, as applicable, City will a. initiate cancellation of the lease; or h. reduce the term of the lease to a period that is consistent with the portion of the required construction. timely completed. 3. APPEARANCE: When completed, all improvements on the Premises must be neat, presentable, and compatible with the authorized use of the Premises under this Lease, as determined by the City. LEASE OF AIRPORT RESERVE LANDS Page 25 a31 65 City: Lessee: 4. CITY APPROVAL REQUIRED: The Lessee must first obtain the City's written approval before beginning any land development, construction or demolition of any improvements on the Premises, or before beginning any alterations, modifications, or renovation of existing structures on the Premises. The Lessee must submit to the City detailed drawings of the proposed development, alteration, modification, or renovation. Further, the Lessee will submit to City evidence of the Lessee's compliance with the FAA regulation 14 CFR Part 77. S. CITY APPROVAL WITHHELD: The City's approval of any construction, alteration, modification, or renovation will not be withheld unless: a. the Lessee fails to demonstrate adequate financial resources to complete the project; b. the project plans, specifications, and agency approvals are incomplete; c. the proposed project would result in a violation of an applicable ordinance, regulation, or law; d. the proposed project would interfere with or is incompatible with the safety, security, maintenance, or operation of the airport; e. the proposed project is inconsistent with the Airport Master Plan; f. the proposed project is inconsistent with the terms of the lease, zoning ordinances, or the City's Comprehensive Plan; g the project plans do not make sufficient provision for drainage, aircraft, vehicle, and equipment parking, or for snow storage; or h. the proposed project does not conform to generally recognized engineering principles or applicable fire or building codes. 6. DEMOLITION: Prior to any demolition of any structure(s) on the Premises, Lessee will deliver to City a written scope of work that, at a minimum, lists the structure(s) that are to be demolished and the timeframe for demolition and removal of the debris from the Airport. City will review Lessee's scope for demolition and issue Lessee written approval for the work to be done. 7. BUILDING SETBACK: This paragraph intentionally left blank. 8. AS -BUILT DRAWINGS: Within sixty (60) days after completion of construction or placement of improvements upon the Premises, the Lessee will deliver to the City a copy of an as -built drawing, acceptable to the City, showing the location and dimensions of the improvements, giving distances to all Premises' boundaries. If the Lessee constructs underground improvements, the Lessee will appropriately mark the surface of the land with adequate surface markers. The type, quantity, and distance between such markers will be subject to approval of the City. LEASE OF AIRPORT RESERVE LANDS Page 26 of 31 66 City: Lessee: 9. AIRPORT SECURITY FENCING: If any construction by the Lessee requires a realignment or alteration of an existing security fence on the Premises or boundary of the Premises, the Lessee agrees to realign or alter the fence in a manner approved in writing by the Airport Manager. Anytime the fence must be breached to allow the Lessee to complete improvement construction or fence modifications, the Lessee shall, at the Lessee's sole expense place temporary barriers to maintain the security of the Airport, as determined by the Airport Manager. If damage occurs to a security fence on the Premises or boundary of the Premises in connection with the Lessee's use or occupation of the Premises, the Lessee shall promptly repair the fence to the satisfaction of the Airport Manager. 10. DAMAGE TO IMPROVEMENTS: If Lessee's improvements of the Premises are damaged or destroyed, Lessee will cause the improvements to be repaired or rebuilt, and restored to normal function within two (2) years following the damage or destruction. If the Lessee fails to timely rebuild or restore the improvements, the City may, at its sole discretion, either reduce the term of this Lease commensurate with the estimated value of the Lessee's remaining, fully functional improvements on the Premises, or cancel this Lease. If a structure is non- conf`or,nin.g, the requirements of the Kenai Zoning Code apply (see, e.g., KMC 14.20.050(d)). If there is any conflict between this Lease and the Kenai Zoning Code with respect to repairs or reconstruction of non - conforming structures, the requirements of the Code shall prevail. DAMAGE NEAR EXPIRATION: If Lessee's improvements are damaged to the extent that more than 50% of the space is unusable and the damage occurs within five years of the expiration of' the term of this Lease, Lessee may remove the damaged improvements, restore the Premises and terminate this Lease. C. PERFORMANCE BOND : Prior to beginning the construction of permanent improvements required under (B)(1) of this Article, the Lessee shall submit to the City a performance bond, deposit, or other security in the amount of $N /A. The form of the bond or other security shall be subject to the City's approval. LEASE OF AIRPORT RESERVE LANDS Page 27 of 31 67 City: Lessee: D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the tens 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 dear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the tenn of this Lease, including any extension or renewal, 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. E. NOTICE OF CONSTRUCTION: The Lessee agrees to notify the City in writing three days prior to commencing any construction project valued in excess of S1,000.00 on the Premises. The Lessee agrees to assist in the posting of a notice of non- responsibility and maintenance of the notice on the Premises during construction, Lessee agrees that in the event the Lessee fails to notify the City as required by this Provision (f), the Lessee shall indemnify the City against any materialmen's liens as defined in AS 34.35.050 which arise as a result of construction on the premises. ARTICLE XV SPECIAL PROVISIONS A. CITY CONSTRUCTED IMPROVEMENTS. l.. ALTERNATIVE ONE — The City commits to construct improvements after the lease is signed. (a) As part of the exchange of consideration of this lease, the City will, at the City's expense, cause the following improvements to be constructed on or in connection with the Premises: N/A (b) The City's total cost of the improvement construction shall not exceed $N /A without the Lessee's written concurrence, (0) The Lessee shall reimburse the City for the City's cost of constructing the improvements. The reimbursement shall be made in ten (10) equal annual payments, plus interest at eight percent (8%) per year on the unpaid balance. The Lessee may pay the entire remaining balance to the City earlier than due. LEASE OF AIRPORT RESERVE LANDS Page 28 of 31 68 City: Lessee: (d) After completing the improvements, the City will give the Lessee written notice of the City's total cost of constructing the improvements and the date on which the Lessee's reimbursement payments shall begin, which date shall be no earlier than 60 days after the date of the City's notice. The Lessee's annual reimbursement payment for each succeeding year shall be made to the City by no later than the anniversary of date on which the first payment was due. (e) Failure by the Lessee to timely reimburse the City as required under (b) through (d) of this provision shall be grounds for tennination of this lease by the City. 2. ALTERNATIVE TWO — The City builds improvements before the lease is si rated. (a) The Lessee acknowledges that prior to the execution of this lease, the City constructed the following improvements on or in connection with the Premises: N /A. (b) The City's total cost to construct the improvements was SN /A. (c) As part of the consideration of this lease, the Lessee shall reimburse the City for the City's cost of constructing the improvements. The reimbursement shall be made in ten (1.0) equal annual payments, plus interest at eight percent (8 %) per year on the unpaid balance. The Lessee may pay the entire remaining balance to the City earlier than due. (d) The Lessee shall make the first reimbursement payment to the City by no later than the tirst anniversary of the lease term beginning date given in Article III of this Lease. The Lessee's annual reimbursement payment for each succeeding year shall be made to the City by no later than the anniversary of date on which the first payment was due. (e) Failure by the Lessee to timely reimburse the City as required under (c) and (d) of this provision shall be grounds for termination of this Lease by the City. IN W I'I'NESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. CITY OF KENAI LEASE OF AIRPORT RESERVE LANDS Page 29 of 31 69 City: Lessee: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRIC f ) THIS IS TO CERTIFY that on this day of , 2012, Rick R. Koch, City Manager of the City of Kenai, Alaska, being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing instrument on behalf of said City. Approved as to lease form by City Attorney: Approved by Finance Director: Lease approved by Council on Sandra Modigh, City Cleric 7, Notary Public for Alaska My Commission Expires: LEASE OF AIRPORT RESERVE LANDS Page 31 of 31 70 City: Lessee: KENAI ALASKA MEMO: 'V /laye with a Past, Ci 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: Kenai City Council ‘I\ FROM: Rick Koch, City Manager DATE: April 24, 2012 SUBJECT: Buccaneer Alaska Operations, LLC, Special Use Permit The purpose of this memo is to provide additional information in support of the attached Special Use Permit to Buccaneer Alaska Operations, LLC (Buccaneer) for a term of one year. Since the April 4, 2012 Council Meeting in which Council approved a Special Use Permit (SUP) which will expire on May 4, 2012, the City has executed the SUP and proposes additional language recommended by the City Attorney in the attached SUP as follows: 1. Paragraph 10 requires the City's written consent to an assignment. 2. Paragraph 11 addresses the permittee's obligation to prevent and remove liens. 3. Paragraph 12 address re -entry of the Premises in the event of cancellation, 4. Paragraph 19 requires payment of City's costs associated with protecting the City's rights under the SUP Administration recommends approval of the attached Special Use Permit, which will enable Buccaneer to continue to utilize the property while its lease application is pending review. cc: Mark Landt, Buccaneer Alaska Operations, LLC Attachments 71 Village e with a Past, Gel with a Fritrcre" 210 Fidelg© Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 ! FAX: (907) 283 -3014 wwrw,ci.kenai.ak.us TO: Kenai City Council FROM: Christine Cunningham, Assistant to City Manager JATHROUGH: Rick Koch, City Manager DATE: March 28, 2 012 SUBJECT: Special Use Permit, Buccaneer Alaska Operations, LLC The purpose of this memo is to provide additional information in support of the attached Special Use Permit to Buccaneer Alaska Operations, LLC. (Buccaneer). The property subject to the permit is located on Airport Land located outside the Airport Reserve in the proposed Kenai Industrial Park Subdivision on Marathon Road. Buccaneer has operated at this location under a previous Permit approved by the City Council at its March 2, 2011 Council Meeting. That non- exclusive Permit expired on March 1, 2012. The City of Kenai Planning Commission approved a Conditional Use permit for Buccaneer for the extraction of natural resources at this site on January 26, 2011, and the permit continues as long as the use does not cease for an extended period of time. Since issuance of the original Permit, Buccaneer has installed an access road, gravel pad, production facilities and a flowline for the Kenai Loop No. 1 Well. Buccaneer has submitted a Lease Application to lease the property for future drilling and production facilities for a term of 20 years. The application has not yet been accepted as complete pending additional information to be submitted by Buccaneer as well as a formal response from the FAA releasing the and for the purpose of lease for non- aviation utilization. The City Attorney has reviewed the attached Special Use Permit and has no objection as to form, Should the City Council approve the Permit, Buccaneer will be able to continue to utilize the property while its lease application is pending review. Attachments cc: Mark Landt, Buccaneer Alaska Operations, LLC 72 SPECIAL USE PERMIT THE CITY OF KENAI (City) for the consideration, and pursuant to the conditions and requirements set forth below, hereby grants the right to use the Premises, identified in Exhibit A to this Permit, which exhibit is incorporated herein by reference in its entirety, to BUCCANEER ALASKA, LLC: 1. Term. Permittee shall have a non- exclusive use of the Premises to commence on the 5`" day of May, 2012, and to end on the 28th day of February, 2013. 2. Premises. The Premises subject to this Permit is identified in Exhibit A, page and is further described as: A parcel of land for access and exploratory drilling located north of the fire training facility off Marathon Road on City of Kenai lands situated in the unsubdivided portion of the NW 1/4 Section 33,Township 6 North, Range 11 West, Seward Meridian; all located within the Kenai Recording District (KN), Third Judicial District, State of Alaska, and more particularly described as follows (courses and distances are Alaska State Plane Zone 4): Commencing at the northwest corner of Tract A -1 -A Baron Park Subdivision Fire Addition KN 97 -51 on the easterly right -of -way line of Marathon Road, Thence Course N 7 °26'03 "E Distance 343.38 ft. along said right -of -way line to the Point of Beginning, being Corner No. 1; Thence Course N 89 °23'34 "E Distance 338.64 ft. across City of Kenai Land to Comer No. 2; Thence Course S 0 °36'26 "E Distance 340.00 ft. across City of Kenai land to a point of intersection on the northerly boundary of said Tract A -1 -A being Corner No. 3; Thence Course N 89 °23'34 "E Distance 500.00 ft. across City of Kenai land along the northerly boundary of said Tract A -1 -A to Comer No. 4; Thence Course N 0 °36'26 "W Distance 400.00 ft. across City of Kenai to Corner No. 4 Thence Course S 89 °23'34 "W Distance 830.16 ft. to a point on the easterly right -of -way line of Marathon Road being Corner No. 6; Buccaneer Alaska Operations, LLC Special Use Permit L: `A gts \Buccaneer \b uccaneer.S UP.042412 73 Page 1 of 8 Thence Course S 7 °26'03 "W Distance 60.68 ft. along said right -of -way line to the Corner No. 1, the Point of Beginning thus embracing Area: 5.05 Acres (226,064 sq. ft.). 3. Use. The permitted use is to construct approximately 550 lineal feet of access road, a 400' x 500' drill pad, drill Kenai Loop #1 Well and production and compressions facilities for the sale of natural gas. This use is more specifically described in the "Plan of Operations" in the attached Exhibit A, and all such uses are subject to Permittee applying for and obtaining all required permits for such activities and to Permittee observing all conditions and requirements of said permits. The use of the Premises is limited to the purposes specified. This use is also subject to the administrative actions of the City of Kenai for public safety and the protection of maintenance of Premises and of adjacent and contiguous lands or facilities. 4. Licenses and Permits. Permittee shall obtain and maintain all required federal, state, and local licenses, permits, certificates, and other documents required for its operations under the Permit and /or as described in Exhibit A. Permittee shall provide proof of compliance to the City upon request by the City. 5. No Exclusivity. The use by the Permittee of the 'Premises is limited to the uses and purposes specified herein and the Perrnits is not intended to grant any exclusive use to the described Premises except as otherwise provided herein. This use is also subject to the reasonable administrative actions of the City for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities. Without limitation of the foregoing, Permittee expressly recognizes and has notice that the access road to he constructed on the Premises by Permittee may be used. by the City and the City's designees. 6. Improvements. Improvements described as the access road and drill pad shall remain in place following the term of this Permit and shall become the property of the City. 7. Permit Fees. Permittee shall pay a monthly fee of $1,333.33, plus applicable sales tax. This fee is computed based upon the following calculation: 200,000 s.f. x $1.00 s.f. / 8% annual fee / 12 months). The fee shall be due on or before the first day of each month beginning May 1, 2012. Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, Kenai, Alaska, 210 Pidalgo Ave., Kenai, Alaska 99611. Buccaneer Alaska Operations, LLC Special Use Permit t. \Agts \Buccaneer \buccaneer.SUP.042412 74 Page 2 of 8 Permittee further agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided, including but not limited to any amounts due from Permittee and owed to the City under any other agreement or permit now existing or later issued and sales tax now enforced or levied in the future and computed upon fees due, with sales tax due in monthly installments at the same time Permit Fees are due. Permittee shall pay and be Liable for interest at the rate of eight percent (8 %) per annum and penalties of ten percent (10 %) of the amount due, on any amount of money owed under this Permit which is not paid on or before the date it becomes due. 8. Insurance. Permittee, at the expense of the Permittee, shall provide insurance covering its activities on and /or in any way arising out of its use of the Premises. Permittee shall provide insurance coverage of the following types and minimum coverage limits. If Permittee's policy(ies) contain(s) higher limits, the City shall be entitled to coverage to the extent of the higher limits: Commercial General Liabilitv including premises, all operations, property damage, personal injury and death, broad -form contractual, with a per- occurrence limit of not less than $1,000,000 combined single limit. Commercial Automobile Coverage with not less than $1,000,000 combined single limit per occurrence. This insurance must cover all owned, hired, and non -owned motor vehicles the lessee uses. Workers' Compensation Insurance for all Permittee's employees, coverage as required under AS 23.30.045, and, where applicable, any other statutory obligations. The policy must waive subrogation against the City. Products and Com. leted O *erations Liability Insurance. Permittee shall provide Products and Completed Operations Liability Insurance in at least the following coverage limits: • $100,000 bodily injury combined single limit per occurrence; ® $300,000 bodily injury aggregate; and, w $100,000 property damage combined single limit per occurrence. All of the policies required above shall be issued by a company /corporation currently rated `A - "or better by A.M. Best. Buccaneer Alaska Operations, LLC Special Use Permit L:\Agts\Buccaneertuccaneer.SUP.042412 75 Page 3 of 8 With respect to the policies of insurance listed above, Pennittee shall provide the City with proof of insurance coverage in the form of an insurance policy or a certificate of insurance, together with proof that the premiums have been paid, showing the types and monetary Limits of coverage secured. Permittee shall provide this proof of insurance to the City (attention to the City Manager) prior to beginning any activities on the Premises. All insurance must provide that the City be notified at least 30 days prior to any tennination, cancellation, or material change in the insurance coverage. All policies shall name the City as an additional insured. If Permittee subcontracts any work on the Premises, all of its subcontractors shall be subject to the same insurance requirements. Permittee shall identify its subcontracts and provide the same evidence of insurance coverage to the City prior to the subcontractor performing work. 9. INDEMNITY, DEFEND, AND HOLD HARMLESS AGREEMENT. Permittee agrees to fully indemnify, defend, and save harmless, the City of Kenai, its officers, agents, employees, and volunteers from and against all actions, damages, costs, liability, claims, losses, judgments, penalties, and expenses of every type and description, including any fees and /or costs reasonably incurred by the City's staff attorneys and outside attorneys and any fees and expenses incurred in enforcing this provision (hereafter collectively referred to as "Liabilities "), to which any or all of them may be subjected, to the extent such Liabilities are caused by or result from any breach of this Permit or from any negligent act or omission or willful misconduct of the Permittee in connection with its use of the Premises and its activities thereon. 10. Assignment. Permittee may not assign, sublet, or grant a security interest in, by grant or implication, the whole or any part of this Permit, the Premises, or any improvement on the Premises without the written consent of the City. Unless the City specifically releases the Permittee in writing, the City may hold the Permittee responsible for performing any obligation under this Permit which an assignee fails to perform. 11. Permittee's Obligation to Prevent and Remove Liens. Permittee will not permit any liens including, but not limited to, mechanics', laborers', material men's, or mining liens or any other liens obtainable or available under existing law, to stand against the Premises or improvements on the Premises for any labor or material furnished. to Permittee or to any related entity (including Buccaneer Alaska Operations, LLC or Buccaneer Energy, Ltd.) or claimed to have been furnished to Permittee or to the Pennittee's agents, contractors, or related entities, in connection with materials supplied to Permittee for its activities on the Premises and /or in connection with work of any character performed or claimed to have been performed on the Premises or improvements by or at the direction or sufferance of Permittee. Provided, however, the Permittee shall Buccaneer Alaska Operations, LLC Special. Use Permit L:\Agts1Buccaneer\buccaneer.SUP.042412 76 Page 4 of 8 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. Upon a final determination of the lien or claim for lien, the Permittee will immediately pay any judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied at Permittee's own. expense. 12. Mutual Cancellation. This permit may be cancelled in whole or in part by either party with one (1) calendar month written notice. In the event that the Permit is cancelled by City, or upon the Permittee's abandonment of the Premises or a portion of the Premises, the City or its agents, servants, or representatives may, immediately or any time thereafter, re- enter, and resume possession of the Premises or portion thereof, and remove all persons and property therefrom, without being liable for any damages to Permittee. 13. No Alcohol. No possession or consumption of alcoholic beverages is permitted on the Premises. 14. No Joint Venture. The City shall not be construed or held to he a partner or joint venturer of Permittee in the conduct of its business or activities on the Premises. 15. Personalty. Any or all personal property placed or used upon lands or in fac may be removed and /or impounded by the City, and when so removed and/or impounded, such property may be redeemed by the owner thereof only upon the payment to the City of the costs of removal plus its storage charges. The City of Kenai is not responsible for any damage to or theft of any personalty of Permittee or its invitees to the Premises. 16. Assumption of Risk. Permittee will provide all proper safeguards and shall assume all risks incurred in its use of the Premises. 17. No Waiver. Failure to insist upon a strict compliance with the terms, conditions, and requirements herein contained, or referred to, shall not constitute or be construed as a waiver or relinquishment of the right to exercise such terms, conditions, or requirements, 18. No Discrimination. Permittee will not discriminate on the grounds of race, color, religion, national origin, ancestry; age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Permittee recognizes the right of the City to take any action necessary to enforce this requirement. 19. Payment of City's Costs. Permittee will pay all reasonable actual expenses, costs, and actual attorney fees City may incur, with or without formal action, to enforce, Buccaneer Alaska Operations, LLC Special Use Permit L: \Agts \Buccaneer \buccaneer. SU?.042412 77 Page 5 of 8 defend, or protect the City's property interest in the Premises and the City's rights under this Permit, including any expense incurred with respect to environmental compliance, bankruptcy, liens, or any proceeding that involves the Permit, the Premises, or improvements or personal property on the Premises. Permittee will make payment within 30 days of the date of each notice from City of any amounts payable under this provision. 20. Contact Information. The Contact information for the Permittee, and the person in responsible charge for Permittee during the term of the Permit, for purposes of notice and all communications from City to Pennittee is: Mark. Landt Buccaneer Alaska, LLC 952 Echo Lane Houston, Texas 77024 Message Phone: 281.768.7650 Fax: 832.201.7495 The Contact information for the City, and the person in responsible charge for Permittee during the term of the Permit, for purposes of notice and all communications from Permittee to the City is: City Manager 210 Fidalgo Avenue Kenai, AK 99611 Phone: 907.283.8223 Fax: 907.283.3014 Email: rkoch @ci.kenai.ak.us 21. Authority. By signing this Permit, Permittee represents that it has read this agreement and it agrees to be bound by the terms and conditions herein and that the person signing this Permit is duly authorized by the organization to bind the organization hereunder. 22. Survival. The obligations and duties of Permittee under paragraphs 9 and 11 of this permit shall survive the cancellation, termination or expiration of this permit. [SIGNATURE PAGES TO FOLLOW] Buccaneer Alaska Operations, LLC Special Use Permit L: \Agts \Buccaneer \buccaneer. SUP.042412 78 Page 6 of 8 CITY OF' KENAI By: Rick K. Koch City Manager BUCCANEER ALASKA, LLC By: Mark R. Lands Vice President of Land and Business Development STATE OF ALASKA ) ) ss THIRD JUDICIAL DISTRICT ) The foregoing instrument was acknowledged before me this day of 2012, 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: Buccaneer Alaska Operations, LLC': Special Use Permit L: \Agts \Buccaneer \buccaneer. S U P.042412 79 Page 7 of 8 STATE OF ALASKA ) ss. THIRD JUDICIAL DISTRICT The foregoing instrument was acknowledged before me this _ day of 2012, by Mark R. Landt, Vice President of Land and Business Development, of Buccaneer Alaska, LLC, an Alaska (united liability company, on behalf of the Company. Approved as to form: Krista S. Stearns City Attorney Buccaneer Alaska Operations, LLC Special Use Permit L: \A gts\B uccaneer \buccaneer. 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Village with a Past, Gity with a Fixture" 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 G ' DATE: April 24, 2012 SUBJECT: Assignment and Assumption of Lease Agreement Lot 1A, Block 4, General Aviation Apron 2011 Wolverine Leasing has requested an assignment of its lease on the above referenced property to Schilling Rentals, LLC. The property is identified on the attached map and is airport land located inside of the Airport Reserve. The Lease is for a term of 67 years, beginning May 20, 1981 and expiring June 30, 2036. The purpose for which the lease is issued is: "Aircraft related activities such as, but not limited to, Aircraft Repair and Maintenance, Airport hangars including "T" hangars, aircraft parking, sale of aviation parts and products, lawful flight activities." The Lease requires the written consent of the City for any assignment, and states that such assignment will not be "unreasonably denied." Both parties are in compliance with the City and the Kenai Peninsula Borough. The City Attorney has reviewed the attached documents and has no objection to the form. If Council approves the assignment, the Assignment of Lease and Consent to Assignment can be executed. cc: Wolverine Leasing Attachments 82 Lot 1A, Block 4, General Aviation Apron Subdivision Wolverine Leasing Assignment to Schilling Rentals, LLC 83 April 24, 2012 CONSENT TO ASSIGNMENT The City of Kenai, Lessor under that certain lease recorded June 16, 198, at Book 172, Pages 257 -272, Kenai Recording District and thereafter amended (collectively, the Lease), hereby consents to the assignment of the Lease from Wolverine Leasing, whose address is address is P.O. Box 8553, Kenai, Alaska 99611 (Assignor), to Schilling Rentals, LLC, whose address is 47 Spur View Drive, Kenai, AK 99611 (Assignee) under the terms and conditions stated in that Assignment to Lease dated , 2012 between Assignor and Assignee. The Lease covers property located in the City of Kenai which property is more particularly described as Lot IA, Block 4, General Aviation Apron, according to Plat No. 87 -93. Lessor's consent to assignment shall not be deemed to change the scope or extent of any rights or obligations under the Lease. This Consent is given by the City of Kenai without waiving any right or action or releasing the Assignor from any liability or responsibility under the Lease. The City of Kenai's consent shall not he deemed to be a consent to any further or subsequent sublease or assignment of the Lease. Dated this day of , 2012. CITY OF KENAI By: Rick R. Koch City Manager Consent to Assignment Page 1 of 2 84 STATE OF ALASKA ) THIRD JUDICIAL DISTRICT ) ss ) The foregoing instrument was acknowledged before me this day of 2012, 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: Approved as to form: rista S. Stearns City Attorney RECORD IN THE KENAI RECORDING DISTRICT AND RETURN TO: City of Kenai 210 Fidalgo Ave. Kenai, AK 99611 Consent to Assignment Page 2 of 2 85 ASSIGNMENT OF LEASE This ASSIGNMENT AND ASSUMPTION OF LEASE (this "Assignment "), is entered into as of , 2012, by and among Wolverine Leasing( "Assignor "), whose address is P. 0. Box 1866, Kenai, AK 99611 and Schilling Rentals, LLC, an Alaska limited liability company ( "Assignee "), whose address is 47 Spur View Drive, Kenai, AK 99611. Assignor, as "Tenant," and the City of Kenai as "Landlord," are parties to that tease dated May 20, 1981, which lease was recorded at Book 172 Page 257 -272, in the records of the Kenai Recording District, Third Judicial District, State of Alaska, and amendments to the same (the "Lease"), presently covering certain property in Kenai, Alaska described as Lot 1A, Block 4, General Aviation Apron, according to Plat No. 87 -93; and NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valuable consideration, the receipt and adequacy of which are expressly acknowledged, the Parties agree as follows: Assignment and Assumption. (a) Assignor hereby assigns, transfers, and sets over unto Assignee (i) all of Assignor's right, title, and interest in the leasehold estate subject to all of the terms and conditions contained in the Lease; (ii) all of its obligations now existing or to arise under the Lease, and (iii) any aggregate security deposit heretofore made by Assignor pursuant to the Lease. Assignor will deliver possession of the Premises to Assignee on the Effective Date. (b) Assignee hereby accepts the foregoing assignment and hereby agrees to comply fully with all of the terms and all obligations of the Lease including previously existing teens and obligations as well as those arising or accruing on or after the Effective Date. Assignee hereby assumes and agrees to perform all duties and obligations required of Lessee under the Lease and to pay all outstanding liabilities and obligations which may be due and owing, or may have been due and owing, prior to the Effective Date of this Assignment of Lease. 3. Miscellaneous. (a) Headings. The section headings used herein are inserted for convenience only and shall not affect in any way the meaning or interpretation of this Agreement. (b) Governing Law; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Alaska. If any such dispute results in a Assignment of Lease Page 1 of 3 86 lawsuit, the parties will bring the lawsuit before the courts of the State of Alaska in the Third Judicial District at Kenai, (c) Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together will constitute one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Assignment as of the day and year first above written. ASSIGNOR: Wolverine Leasing By: Name: Title: State of Alaska ss. Third Judicial District On this day of March 2012, before me, personally appeared (Name) (Title) of Wolverine Leasing being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing Assignment on behalf of Salamatof Seafoods, Inc. Notary Public in and for Alaska My commission expires: ASSIGNEE: Schilling Rentals, LLC By: Name: Title: Assignment of Lease Page 2 of 3 87 State of Alaska ) ) ss. Third Judicial District On this day of March 2012, before me, personally appeared (Name) (Title) of Schilling Rentals, LLC. being personally known to me or having produced satisfactory evidence of identification, appeared before me and acknowledged the voluntary and authorized execution of the foregoing Assignment on behalf of the Company. Notary Public in and for Alaska My commission expires: RECORD IN THE KENAI RECORDING DISTRICT AND RETURN TO City of Kenai 210 Pida&go Ave. Kenai, AK 99611 Assignment of Lease Page 3 of 3 88 Memo Int r% Grant rKenai Peninsular 305 N. WILLOW ST. SUrrE 200 KENAE, ALASKA 99611 TELEPHONE 907J937951 FAX 907. 281.3737 To: Rick R. Koch — City Manager From: Mary L. Bondurant - Airport Manage Date: April 13, 2012 Subject: Request for Office Space — Alaska Realty Group, inc. At the April 12, 2012 Airport Commission meeting, Commission reviewed Alaska Realty Group, Inc's., request to lease an additional 300 square feet in the terminal building. The lease term is from April 1, 2012 to May 31, 2013 with the option to extend by mutual written consent of the City and the Lessee. The Commission recommends to Council that the City Manager enter into a lease with Alaska Realty Group, Inc. Please contact me if you have any questions. www.ci.kenai.ak.us. 89 CITY OF KENAI KENAI MUNICIPAL AIRPORT LEASE OF AIRPORT FACILITIES THIS AGREEMENT is made by and between the CITY OF KENAI, 210 Fidalgo Avenue, Suite 200, Kenai, Alaska 99611, a municipal corporation organized and existing under the laws of the State of Alaska (City), hereinafter called "City" and ALASKA REALTY GROUP, INC., an Alaska corporation, 305 N. Willow, Suite 160, Kenai, Alaska, 99611, "Lessee." In consideration of the rights and obligations under this Lease, the parties agree as follows: A. PREMISES; PURPOSE: In consideration of the payments of the rents and performance of all the covenants herein contained by the Lessee, the City leases to Lessee the following described property in the Kenai Recording District, State of Alaska; to wit: Office space #9, first floor, terminal building, Kenai Municipal Airport, Kenai Recording District, Kenai, Alaska, within the NW 1/4, SE A, Section 32, T6N, R11 W, S.M, and consisting of 300 square feet, more or less (referred to here as the premises or leased premises). The purpose of this lease is to operate a real estate office at the location shown as Space 9 on Exhibit "A" attached hereto. The Lessee is allowed to offer the additional services listed below on a non - exclusive basis: Wi -Fi R. TERM: The term of this lease is from April 1, 2012, to May 31, 2013, with the option to extend by mutual written consent of the City and the Lessee. C. RENTAL PAYMENT: The Lessee shall pay the City monthly rent based on the established airport rentai rate by the square footage of the space (300), for the privilege of conducting business authorized herein, plus an applicable tax. April 1, 2012, to May 31, 2012 $2.86 x 300 $858.00 June 1, 2012, to May 31, 2013 $3.15x300 $945.00 The Lessee shall pay the City the monthly rent on or before the first day of each month beginning April 1, 2012. AK Realty Group Page 1 of 13 City March 26, 2012 Lessee 90 Checks, bank drafts, or postal money orders shall be made payable to the City of Kenai and delivered to the City Administration Building, Kenai, Alaska, 210 FidaIgo Ave.,Suite 200, Kenai, Alaska 99611 on or before the first of each month. In addition to the rents specified above, the Lessee agrees to pay to the appropriate parties all levies, assessments, and charges as hereinafter provided: a) 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. b) Interest at the rate of eight percent (8 %) per annum and ten percent (10 %) penalties of any amount of money owed under this lease, which is not paid on, or before the date, it becomes due. Costs and Expenses: Costs and expenses incident to this lease, including but not limited to, recording costs shall be paid by Lessee. D. GENERAL COVENANTS: 1. USES: The City reserves the right to grant others any right or privilege not specifically granted the Lessee. The rights and privileges granted the Lessee under this agreement are the only rights and privileges granted the Lessee. The Lessee has no easements, rights, or privileges, express or implied, other than those specifically granted under this agreement. 2. USES NOT CONTEMPLATED PROHIBITED: The Lessee will not sell any service or product unless described in this agreement without the advance written approval of the City. If a question or dispute arises concerning the sale of any service or product, the Lessee may submit a written request to the City asking for a review and decision. The City will deliver a written decision to the Lessee and the decision of the City is final. 3. ASSIGNMENT OR SUBLETTING: The Lessee shall not assign all or any portion of this lease, nor shall it enter into any sublease of Premises under this lease, without the City's prior written consent, and any attempted assignment or sublease without such advance written approval will be void and of no effect. 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 Lessee's duties and obligations hereunder. 4. PREMISES MAINTENANCE: The Lessee will maintain the premises in good repair, appearance, and in a safe condition at all times. At its own expense, the Lessee will paint, repair, or replace wall coverings, doors, counters, furnishings, fixtures, or AK Realty Group Page 2 of 13 City March 26, 2012 Lessee 91 other items as their condition may require, The Lessee will not delay any action the City determines necessary for safety or to maintain the premises in good repair and appearance. The Lessee will pay for any nonstandard lighting fixtures, extraordinary power, or cleaning services caused by the Lessee which, in the City's determination, are beyond the scope of normal services provided by the City. The Lessee is responsible for the cost and installation of any electrical conduit or wiring beyond what is available on the premises as of April 1, 2012. If the Lessee causes damage to the City or an airport tenant due to inadequate maintenance by the Lessee of any of Lessee's equipment, fixtures, or systems, the Lessee will repair the damage at its own expense. If the Lessee does not repair the damage, the City will repair the damage and bill the Lessee for the City's costs. The Lessee will pay the City within 30 days of the billing date. At the expiration of the term fixed, or any earlier termination of the lease, the Lessee will peaceably and quietly quit and surrender the premises to the City. 5. CONSTRUCTION APPROVAL AND STANDARDS: Before beginning construction or installation of any improvement or alteration, the Lessee shall first obtain prior written approval from the City before altering the premises. Building construction shall be neat, presentable, and compatible with its uses and surroundings. The cost of any additional improvements to the terminal space shall be at the Lessee's expense. 6. DEFAULT RIGHT OF ENTRY: Should default be made in the payment of any portion of the rent or fees when due, or in any of the covenants or conditions contained in the lease or in any regulations now or hereinafter in force, then in such event the City shall by written notice give Lessee thirty (30) days to cure such default or defaults, after which if the default is not cured, the City may terminate the lease, reenter and take possession of the premises, and remove all persons there from. 7. CONDITION OF PREMISES: The City will deliver the premises to the Lessee on April 1, 2012. The Lessee accepts the premises in their then - present condition and "as is." The Lessee acknowledges that the City's obligation is limited to making the premises available to the Lessee for its use. 8. OFFER TO LEASE ACCEPTANCE: The lease is subject to application laws and regulations of City, and may be withdrawn without notice at any time after thirty (30) days from submission thereof, unless within such thirty (30) days the Lessee executes the lease to the City. 9. 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. AK Realty Group Page 3 of 13 City March 26, 2012 Lessee 92 10. RIGHT OF INSPECTION: The City shall have the right at all reasonable times to enter the premises, or any part thereof, for the purposes of inspection. The Lessee will provide the City emergency access to the premises either by delivering keys to the premises or by providing emergency telephone numbers where the City may reach the Lessee or Lessee's agent on a 24 -hour basis. 11. INDEMNIFICATION: The Lessee shall indemnify, defend, and hold the City, its agents, officers, and employees harmless from any liability, action, claim, suit, or loss for property damage or personal injury or death of whatever kind resulting from or arising out of any act or omission by the Lessee or the Lessee's agents, employees, or clients or arising from or connected with the Lessee's rights and privileges granted under this Agreement. In any litigation brought by a third party against the City or the Lessee that specifically challenges the rights granted in General Covenants D1, the Lessee would assume the responsibility to defend the City and the Lessee. The City will assist in the defense of the rights granted. The City is not required to indemnify the Lessee for any attorney fees the Lessee incurs to defend the City. 12. INSURANCE: The Lessee will, throughout the term of this lease and at its own expense, secure and keep in force insurance, as stated below, to protect the City and the Lessee. Where specific limits are stated, they are the minimum acceptable limits. If the Lessee's insurance policy contains higher limits, the City is entitled to coverage to the extent of the higher limits. a. Comprehensive general liability insurance with coverage limits not less than ONE MILLION DOLLARS ($1,000,000) combined single limit per occurrence where generally applicable, including in- terminal operations, independent contractors, products, and completed operations, broad form property damage, blanket contractual, and personal injury endorsements. Worker's Compensation insurance with coverage for all employees engaged in work under this Agreement as required by AS 23.30.045. The Lessee is responsible for Worker's Compensation insurance for any subcontractor who directly or indirectly provides services under this Agreement. c. Comprehensive automobile liability insurance covering all owned, hired, and non -owned vehicles with coverage limits not less than $250,000 combined single limit per occurrence. AK Realty Group Page 4 of 13 City March 26, 2012 Lessee 93 All insurance required by this General Covenant must meet the following requirements: a. For comprehensive general liability insurance, name the City additional insured. b. For worker's compensation insurance, general liability and automobile liability insurance include a waiver of subrogation so that the insurer waives all rights of subrogation against the City for payments made under the policy. c. Provide the City notification at least 20 days before any termination, cancellation, or material change in insurance coverage. d. All policies will be by a company /corporation currently rated "A - "or better by A.M. Best, Evidence of Insurance Coverage: a. The Lessee will submit to the City proof of continuous insurance coverage in the form of insurance policies, certificates, endorsements, or a combination thereof, and signed by a person authorized by the insurer to bind coverage on its behalf. b. Evidence of insurance coverage must be submitted to the City by April 1, 2012. The effective date of the insurance will be no later than April 1, 2012. The indemnification and insurance coverage requirements stated in Sections A and B above do not relieve the Lessee of any other obligation under this Agreement. The City may increase the amount or revise the type of required insurance on written demand without requiring amendments to this Agreement. The City will base any increase or revision on reasonable and justifiable grounds. Within two weeks of the written demand, the Lessee will submit to the City evidence of insurance coverage that meets the requirements of the City. 13. COLLECTION OF UNPAID MONIES: Any or all rents, charges, fees, or other considerations which are due and unpaid at the expiration of voluntary or involuntary termination or cancellation of this lease, shall be a charge against the Lessee and Lessee's property, real or personal, and the City shall have such lien rights as are allowed by law, and enforcement by distrait may be made by the City or its authorized agent. AK Realty Group Page 5 of 13 City March 26, 2012 Lessee 94 14. 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 loss. 15. 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 the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly permitted by the City in writing, and free and clear of all liens and encumbrances other than those created by and for loans to City. Upon the end of the term of this lease or any earlier termination thereof, title to the buildings, improvements and building equipment shall automatically vest in City without requirement of any deed, conveyance, or bill of sale thereon. However, if City should require any such document in confirmation hereof, Lessee shall execute, acknowledge, and deliver the same and shall pay any charge, tax, and fee asserted or imposed by any and all governmental units in connection herewith. 16. RULES: Lessee shall observe, obey, and comply with all applicable rules, etc., of the State or Federal governments. 17. 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 leased premises shall not be construed as a denial of the right of quiet and peaceable possession. The Lessee will conduct its operation in a first - class, businesslike, efficient, courteous, and accommodating manner. The Lessee will conduct all business in an orderly and peaceful manner without interfering with other tenants, users, or occupants of the airport. 18. LESSEE TO PAY TAXES: The Lessee will obtain all necessary licenses and permits, 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 provided for by law. AK Realty Group Page 6 of 13 City March 26, 2012 Lessee 95 19. SPECIAL SERVICES: Lessee agrees to pay City a reasonable charge for any special services or facilities required by Lessee in writing, which services or facilities are not provided for herein. 20. 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. 21. DISADVANTAGED BUSINESS ENTERPRISES (DBEs): The City of Kenai's policy is to ensure that DBEs have the maximum opportunity to participate in the performance of Airport concession contracts. (a) Lessee's obligation: The Lessee will ensure that DBEs have the maximum opportunity to participate in the performance of this agreement. This agreement is subject to the requirements of the United States Department of Transportation's regulations, 49 CFR, Part 23, Subpart F. The Lessee agrees that it will not discriminate against any business owner because of the owner's race, color, national origin, or sex in connection with the award or performance of any concession agreement covered by 49 CFR, Part 23, Subpart F. The Lessee agrees to include the above statements in any subsequent concession arrangements that it enters and cause those businesses to similarly include the statements in further agreements. The Lessee will comply with all applicable laws and regulations regarding the fair and equitable treatment of DBEs now in effect or which may subsequently take effect during this Agreement. The Lessee will include a provision to this effect in any subcontract or other arrangement for DBE participation entered into under this Agreement. 22. 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. 23. 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. 24. 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 shall be profitable or suitable to employ the property to such use. AK Realty Group Page 7 of 13 City March 26, 2012 Lessee 96 25. COMPLIANCE WITH LAWS: The 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. The Lessee agrees to hold the 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. 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. 26. LESSEE'S OBLIGATION TO REMOVE LIENS: Lessee will not permit any liens including, but not limited to, mechanics', laborers', or material men'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 sub lessees, 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 judgment rendered with all proper costs and charges and shall have such lien released or judgment satisfied as Lessee's own expenses. 27. CONDEMNATION: In the event the leased premises or any part thereof shall be condemned and taken for a public or 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 of 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. 28. PROTECTION OF SUBTENANTS: To protect the position of any subtenant(s), hereafter properly obtaining any interests in the leasehold estate granted Lessee, City agrees that in the event of the cancellation, termination, expiration, or AK Realty Group Page 8 of 13 City March 26, 2012 Lessee 97 surrender of this lease (the ground lease), the City will accept the subtenant, its successors and assigns, as its lessee for a period equal to the full unelapsed portion of the term of the sublease, including any extensions or renewals, thereof, not exceeding the term of this lease, upon the same covenants and conditions therein contained, to the extent that said covenants and conditions are not inconsistent with any of the terms and conditions of this lease, provided such subtenant shall make full and complete attornment to the City for the balance of the term of such sublease so as to establish direct privity of estate and contract between the City and the subtenant with the same force and effect as though such sublease was originally made directly between the City and such subtenant; and further provided such subtenant agrees to comply with all the provisions of the ground lease and all the terms of any mortgage, deed of trust, or security 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. 29. SUCCESSORS IN INTEREST: This lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties thereto, subject to such specific limitations on assignments as are provided for herein. 30. GOVERNING LAW: This lease shall be governed by all respects by the laws of the State of Alaska. In the event of any dispute arising out of this agreement and such dispute results in a lawsuit, the parties will bring the lawsuit before the courts of the State of Alaska in the Third Judicial District at Kenai. 31. 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 be mailed 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. AK Realty Group Page 9 of 13 City March 26, 2012 Lessee 98 32. ENTRY AND RE- ENTRY: In the event that the lease should be terminated as hereinbefore provided, or by summary proceedings or otherwise, or in the event that the demised lands or any part thereof should be abandoned by the Lessee during said term, the City, its agents, 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 there from, either by summary proceedings or by a suitable action or proceeding at law without being liable for any damages therefore. No re -entry by the City shall be deemed an acceptance of a surrender of the lease. 33. RETENTION OF RENT: 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 City as partial or total liquidated damages for said breach. 34, WRITTEN WAIVER: The receipt of rent by the City 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 this lease, shall not be deemed a waiver of any provisions of the lease. No failure on the part of the City to enforce any covenant or provision therein contained, nor any waiver of any right there under by the City, unless in writing, shall discharge or invalidate such covenants or provisions, or affect the right of the City to enforce the same in the event of any subsequent breach or default. The receipt, by the City, 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 City of any notice there under 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 there under by the City 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 City. 35. EXPIRATION OF LEASE: Unless the lease is renewed or sooner terminated as provided herein, the Lessee shall peaceably and quietly leave, surrender, and yield up unto the City all of the leased land on or before the last day of the term of the lease. 36. ARE 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. 37. 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. 38. UNLAWFUL USE PROHIBITED: Lessee shall not allow the leased premises to be used for an unlawful purpose. AK Realty Group Page 10 of 13 City March 26, 2012 Lessee 99 39. 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. 40. EMPLOYEE PARKING: Terminal employees may use non - exclusive employee vehicle parking facilities at no charge. All employees must register their vehicle(s) at the Airport Manager's office to receive a vehicle - parking permit to park while on the job. Non - terminal employees may request parking through the Airport Manager's office on a case -by -case basis. Lessee shall be held accountable for Lessee's employees' use of designated vehicle parking facilities and shall assure that employees comply with all applicable airport directives. 41. JANITORIAL AND CLEANING SERVICES: The Lessee will provide, at its own expense, the day -to -day janitorial and cleaning services and supplies necessary to maintain the premises except for those services provided by the City. The Lessee will maintain the premises in a clean, neat, and sanitary condition. 42. TRASH, GARBAGE, AND REFUSE: The Lessee will provide for the adequate sanitary handling and removal of all trash, garbage, and other refuse caused as a result of the Lessee's operations. The Lessee will coordinate a schedule and procedure of trash removal with the City. The Lessee will provide and use suitably covered or sealed receptacles for all garbage, trash, and other refuse from its operations inside the Terminal. 43, UTILITIES: The City agrees to pay all public utility bills for electricity, gas, water, and all other utilities used or consumed, on the Premises and to procure at its expense all meters and permits necessary for making connections and continuing utility services. 44. SIGNS: The Lessee may, at the discretion of the City, install signs on the premises to identify its business but must first obtain written approval from the City. The design and location of any sign is subject to the City's approval. 45. SMOKING: Neither the Lessee nor its employees may smoke on the leased premises. 46. BUSINESS SOLICITATION: The Lessee will only solicit and conduct business on the premises as authorized under this Agreement. 47, NO DISCRIMINATION: Lessee shall not discriminate on the grounds of race, color, religion, national origin, ancestry, age, or sex against any patron, employee, applicant for employment, or other person or group of persons in any manner prohibited by federal or State law. Lessee recognizes the right of the City to take any action necessary to enforce this requirement. AK Realty Group Page 11 of 13 City March 26, 2012 Lessee 100 IN WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. CITY: CITY OF KENAI By: Rick R. Koch — City Manager LESSEE: ALASKA REALTY GROUP, INC. STATE OF ALASKA )ss THIRD JUDICIAL DISTRICT By: Kathy E. Chircop — President The foregoing instrument was acknowledged before me this _ day of 2012, by Rick Koch, City Manager of the City of Kenai, an Alaska municipal corporation, on behalf of the City. STATE OF ALASKA )ss THIRD JUDICIAL DISTRICT Notary Public in and for Alaska My Commission expires: THIS IS TO CERTIFY the foregoing instrument was acknowledged before me this day of , 2012, by Kathy E. Chircop, President of Alaska Realty Group, Inc., an Alaska corporation, on behalf of the corporation. Notary Public in and for Alaska My Commission expires: AK Realty Group Page 12 of 13 City March 26, 2012 Lessee 101 Approved by Kenai City Council Approved as to Lease form by City Attorney Approved by Finance Director Approved by City Manager Return to: Krista Stearns — City Attorney City of Kenai 210 Fidalgo Avenue, Suite 200 Kenai, Alaska 99611 -7794 L:\ Airport \Agts \Chircop \AK. Realty. Space9.032612 AK Realty Group Page 13 of 13 City March 26, 2012 Lessee 102 0 CA) f 4. N.... 444., 44, 37V.7.c .1mdrara 1 at 1 0 -es PENDING APPROVA KENAI AIRPORT COMMISSION APRIL 12, 2012 KENAI CITY COUNCIL CHAMBERS 7 :00 P.M. VICE CHAIR JAMES BIELEFELD, PRESIDING MEETING SUMMARY ITEM 1: CALL TO ORDER AND ROLL CALL Vice Chair Bielefeld 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. ITEM 2: MOTION: Vice Chair J. Bielefeld, J. Zirul, G. Feeken, K. Roser, L, Porter H. Knackstedt, R. Rogers Airport Manager M. Bondurant, Assistant E. Shinn, Council Member B. Gabriel AGENDA APPROVAL Commissioner Porter MOVED to approve the agenda as presented and Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY - January 12, 2012 MOTION: Commissioner Porter MOVED to approve the meeting summary of January 12, 2012 and Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: ITEM 5: ITEM 6: 6 -a. PERSONS SC SCHEDULED TO BE HEARD -- None. OLD BUSINESS -- None, NEW BUSINESS Discussion - FY13 Airport Budget - City Manager & Finance Director City Manager Koch and Finance Director Eubank gave a presentation on the FY2012 Airport budget. General discussion followed. 6 -b. Discussion /Recommendation -- Lease Renewal Russ Winger (Aero Maintenance) 104 Bielefeld rioted a request from the lessee for a 10 year lease, noted he provided a much needed service, would like to make improvements and sell the business and that a longer lease would be more appealing to a potential buyer. City Manager Koch noted the term was determined by code and while this could be changed, it was not an option at this time MOTION: Commissioner Porter MOVED to recommend a five year lease with the stipulation a longer term be considered with a change in the code. Commissioner Zirul SECONDED the motion. There were no objections. SO ORDERED. 6 -c. Discussion /Recommendation -- Proposal for Office Space Kathy Chircop (Alaska Realty Group, Inc.) Bondurant noted the Alaska Realty Group would like a second area. MOTION: Commissioner Zirul MOVED to recommend a lease to Alaska Realty Group, Inc. and Commissioner Porter SECONDED the motion. There were no objections. SO ORDERED. ITEM 7: REPORT 7 -a. Commission Chair -- No report. 7 -b. Airport Manager -- No report. 7 -c. City Council Liaison -- Council Member Gabriel reported on the April 4, 2012 City Council Meeting. ITEM 8: NEXT MEETING ATTENDANCE NOTIFICATION 8 -a. May 10, 2012 (Identify if you are requesting an excused absence.) Commissioners Zirul and Porter requested excused absences from the May 10, 2012 meeting. ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS Bielefeld noted there were bumps and dips in the taxiways and requested they be looked at. He also spoke about FAA setting up "zones" for communication. ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD -- None. 105 AIRPORT COMMISSION MEETING APRIL 12, 2012 PAGE 2 ITEM 11: INFORMATION ITEMS 11 -a. Era Alaska Letter - February 24, 2012 11 -b. Grant Aviation - Email February 22, 2012 11 -c. Memo on Comprehensive Plan Survey - Planning Administration 11 -d. March 2012 Enplanement Report 11 -e. January Airport Managers Report 11 -E February Airport Managers Report 11 -g. March Airport Managers Report 11 -h. Alaska Aviation Fact Sheet - February 2012 11 -i. AAAE Email - Award of Excellence 2011 11 -j. Sen. Mark Begich Letter 11 -k. Imagine Kenai 2030 Comprehensive newsletter ITEM 12: MOTION: ADJOURNMENT Commissioner Zirul MOVED to adjourn and Commissioner Porter SECONDED the motion. There were no objections. SO ORDERED. There being no further business before the Commission, the meeting was adjourned at approximately 8:30 p.m. Meeting summary prepared and submitted by: Corene Hall, CMC, Deputy City Clerk 106 AIRPORT COMMISSION MEETING APRIL 12, 2012 PAGE 3 u a( KEH Ali ALASKA CITY OF KENAI "Village with a past — City with a future." BACKGROUND AND PERSONAL DATA - CANDIDATES FOR APPOINTMENT COMMITTEES AND COMMISSIONS RETURN TO: KENAI CITY CLERK 210 FIDALGO AVENUE KENAI, AK 99611 PHONE: 283 -7535, EXT. 231 FAX: 283 -5068 Resident of the City of Kenai? (-0-9 Residence Address �� ( S % 47) 1 Mailing Address Home Fax No. Business Fax No, May we include your contact informa include? How tong? Home Telephone No. O�..-tGc� Business Telephone No Email Address, on on our web page? ALL If not all, what information may we EMPLOYER: Job Title NAME OF SPOUSE: Current membership in organizations. Past organizational memberships' COMMITTEES OR COMMISSIONS IN WHICH YOU ARE INTERESTED: WHY DO YOU WANT TO BE INVOLVED WITH THIS COMMISSION OR COMMITTEE? WHAT BACKGROUND, EXPERIENCE, OR CREDENTIALS DO YOU POSSESS TO BRING TO THE BOARD, COMMISSION OR COMMITTEE MEMBERSHIP? (,/r'0f' -�.. �(s.9,ki rLt_ , ,Ji'l,U- C.i. /oa Signature 107 �k pY Cd 1 FINANCE DEPARTMENT QUARTERLY EXPENDITURE To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: April 25, 2012 Subject: Quarterly Financial Report REPORT — March 2012 Attached is a relatively easily produced quarterly financial report for the general fund, airport fund, and water /sewer fund as of March 31, 2012. This report is essentially on a cash basis, so there are accounts that may not look reasonable. In the General Fund for example, sales and property tax revenue only includes payments made to the City by the Borough. through March. The first calendar quarter 2012 sales tax filings and tax payments are not in at this point and we will not be received for this quarter until the end of April or early May. State and Federal is below budget in all funds because of PERS aid. The State doesn't actually give us any money. Instead they make an `on- behalf payment to the pension system. Similarly we have not booked an expenditure for the PERS the State is covering, so the Non - Departmental department is way under budget. At year -end we will record revenue and expenditures for these items. 108 REVENUES Appropriation of Fund Balance Taxes Licenses/Permits and Ambulance State /Federal Dock/Multipurpose/Miscellaneous Fines and Forfeitures Interest and Miscellaneous Transfers /Central Admin Fees Total Revenues EXPENDITURES & TRANSFERS General Government 01 City Clerk 11 Legislative 12 Legal 13 City Manager 15 Finance 16 Land Administration 18 Non - Departmental 19 Planning and Zoning 20 Safety Total General Government Public Safety 21 Police 22 Fire 23 Communications 29 Animal Control Total Public Safety Public Works 31 Public Works Administration 32 Shop 33 Streets 34 Buildings 35 Street Lighting 36 Dock Total Public Works Parks and Recreation & Culture 03 Visitor Center 40 Library 45 Recreation 46 Parks 47 Beautification Total Parks and Recreation Total Operating Expenditures Transfer to other funds Senior Citizen Municipal Park Improvements Capital Proj, Cemetery Improvements Capital Proj. Comprehensive Plan Project Library Expansion Capital Project Central Heights Street Lighting Imp. Information Technology Capital Proj. Debt Service Total Transfer to other funds Total Expenditures & Transfers Net Revenues over(under) Expenditures Quarterly General Fund Expenditure Report For Quarter Ended March 31, 2012 Original* FY2011 FY2012 Actual Budget $ - $ 738,342 8,889,727 9,116,403 542,302 381,000 1,334,102 1,326,655 180,620 165,000 221,736 106,000 720,074 787,680 1,259,000 1,429.600 Amended Bu3 dgef $ 795,362 9,116,403 381,000 1,643,536 171,500 144,481 802,860 1,429,600 YID Actual Variance $ 48,634 $ (746,728) 6.11% 6,338,525 (2,777,878) 69.53% 339,382 (41,618) 89.08% 1,127,001 (516,534) 68.57% 155,754 (15,746) 90,82% 105,135 (39,346) 72.77% 418,237 (384,623) 52.09% 970,350 (459,250) 67.88% 13147 561 14,050,680 14,484,741 9,503,018 (4 981 7231 65.61% $ 231,602 153,879 255,707 339,901 409,182 22,734 972,443 225,244 2,010 2.612,702 $ 250,595 170,771 279,790 285,110 559,632 35,550 933,426 257,794 9 150 2,781,818 $ 242,095 174,771 279,790 355,960 559,632 39,387 966,395 257,794 9150 2,884,974 $ 137,606 118,438 198,206 243,052 389,116 14,136 262,021 170,102 1 030 1 533 705 2,548,126 2,734,326 2,813,961 2,008,954 2,395,172 2,609,985 2,609,985 1,918,451 675,005 743,747 743,747 540,669 297,599 320,938 320.938 241,083 5 915 902 6 400 996 6488,631 4,709,157 178,849 164,267 164,267 115,832 564,558 614,365 614,365 394,433 870,345 1,000,496 1,031,996 536,920 508,964 403,599 422,181 280,961 140,193 142,851 142,851 75,703 112,657 188,642 188,642 62,783 2.375 566 2,514,220 2.564,302 1 466,633 188,187 179,280 181,155 128,620 647,960 761,188 789,454 551,178 394,766 427,874 442,919 310,296 379,637 421,639 533,682 325,438 80 074 153 680 180,762 75 077 1.690 624 1,943,661 2,127,972 1 390 609 $ 104,489 56,333 81,584 112,908 170,516 25,251 704,374 87,692 8120 1351,269 805,007 691,534 203,078 79 855 1.779 474 48,435 219,932 495,076 141,220 67,148 125,859 1,097,669 52,535 238,276 132,623 208,244 105 685 737,363 43.16% 32.23% 29.16% 31.72% 30,47% 64,11% 72.89% 34.02% 88.74% 46.84% 28.61% 26.50% 27,30% 24,88% 27.42% 29.49% 35.80% 47.97% 33.45% 47.01% 66.72% 42.81% 29.00% 30.18% 29.94% 39.02% 58.47% 34,65% 12,594,794 13,648,695 14,065 879 9,100,105 4 965 774 35.30% 118,546 112,166 119,666 91,625 30,000 - - - 30,000 50,000 50,000 50,000 70,000 17,470 17,470 300,000 - 41,000 41,000 - 100,000 - - - 63,000 63,000 133,423 139 819 139,819 139,819 681,969 401.985 430 955 402,914 13,276,763 14,050,680 14,496,834 9,503,018 $ (129,202) $ • $ (12,093) $ 0 * Note: The original budget includes outstanding encumbrances at 6!3012011. 109 28,042 23,43% 0.00% 0.00% 28.Q42 6.51% 4,993,816 34.45% $ 12,093 REVENUES Appropriation of Fund Balance State /Federal Interest, Leases & Fees Terminal Revenues Landing Fees Transfers In Total Revenues EXPENDITURES & TRANSFERS Terminal Area Airfield Administration Other Buildings & Areas Training Facility Total Expenditures Transfer to other funds Airport Improvement Capital Projects Total Transfer to other funds Total Expenditures & Transfers Net Revenues over Expenditures Quarterly Airport Fund Expenditure Report For Quarter Ended March 31, 2012 FY2011 Actual 42.518 696,310 558,176 300,004 1,054.723 2,651,731 Original * FY2012 Budget $ 63,757 34,354 643,333 621,032 299,475 1,037,483 Amended Budget $ 109,199 $ 34,354 643,333 621,032 299,475 1,037,483 YTD Actual 614,384 423,600 251,143 Variance $ (109,199) 0.00°/ (34,354) 0.00% (28,949) 95.50% (197,432) 68.21% (48,332) 83.86% (1,037,483) 0.00% 2,699,434 2,744 876 1.289 128 (1 455 7481 46.96% $ 517,071 $ 585,484 $ 585,484 $ 396,108 $ 189,376 32.35% 1,454,334 1,578,641 1,578,641 1,106,251 472,390 29.92% 233,276 298,884 298,884 186,105 110,780 37.06% 236,506 166,425 166,425 88,084 78,341 47.07% 63.483 70 000 70.000 31 614 38,386 54.84% 2,504.670 2.699,434 2,699,434 1,810,161 889,273 32.94% 92,365 - 45 442 92,365 - 45,442 45 442 - 0.00% 45,442 - 0.00% 2 597 035 2 699 434 2,744,876 1,855,603 889,273 32.40% $ 54,696 " Note: The original budget includes outstanding encumbrances at 6/30/2011. 110 $ (566,475) $ .566,475 REVENUES Appropriation of Fund Balance State/Federal Water /Sewer Fees Penalty and Interest Interest and Miscellaneous Total Revenues EXPENDITURES & TRANSFERS Water Sewer Wastewater Treatment Plant Total Expenditures Transfer to other funds - W ater & Sewer Capital Projects Total Transfer to other funds Total Expenditures & Transfers Net Revenues over Expenditures Quarterly Water Sewer Fund Expenditure Report For Quarter Ended March 31; 2012 FY2011 Actual 38,559 1,743,655 25,109 23,931 1,831,254 Original" FY2012 Budget $ 288,431 41,446 1,807,723 26,000 28,000 2,191,600 $ 579,307 $ 373,694 869,653 1,822,654 501,088 501,088 2,323,742 Amended Budget $ 288,431 41,446 1,807,723 26,000 28,000 2191 600 785,543 $ 442,238 963,819 2.191,600 2.191,600 $ (492,488) $ * Note: The original budget includes outstanding encumbrances at 6/30/2011. 111 785,543 442,238 963 819 2,191,600 YTD ctuai Variance $ - $ (288,431) 0.00% - (41,446) 0.00% 1,360,443 (447,280) 75.26% 28,770 2,770 110.65% 3,953 (24,047) 14.12% 1,393167 (798.4331 63.57% $ 437,489 $ 348,054 4431% 231,619 210,619 47.6338 631.796 332.023 34.45% 1300,905 890,695 40.64% 2,191,600 1,300,905 890,695 40.64% 92,262 $ 1,689,129) FINANCE DEPARTMENT QUARTERLY INVESTMENT REPORT March 2012 TO: Rick Koch, City Manager FROM: Terry Eubank, Finance Director DATE: April 25, 2012 SUBJECT: Quarter ending March 31, 2012 Investment Report City of Kenai Investment Portfolio At March 31, 2012 the City had investments with a market value of $17,399,628 that is down from $18,448,645 at December 31, 2011. Ongoing payments for some of the City's larger capital projects are causing the decline in the portfolios size. The City's portfolio is yielding 0.26% that is down from 0.34% at December 31, 2012. Market interest rates continue to fluctuate with rates falling in this quarter. City's Investment Portfolio US Agency Securities $ 8,994,580 AML Investment Pool 1,362,049 Wells Fargo Money Market 6,424,725 Bank Balance 618,274 Total $ 17.399.62 Permanent Fund Investments The first quarter 2012 saw volatility in the market and continued growth with the quarter ending performance yielding 7.59 %. Since inception the portfolio has returned 11.14% and in the last year the portfolio has returned 3.87%. As of June 30, 2011 the portfolio value was $23,348,815, comprised of $20,920,217 (89.60 %) Airport Land Sale Permanent Fund and $2,428,598 (10.40 %) General Land Sale Permanent Fund monies. At March 31, 2012 the portfolio had a balance of $25,120,512 comprised of $22,507,658 (89.60 %) Airport Land Sale Permanent Fund and 52,612,854 (10.40 %) General Land Sale Permanent Fund monies. With the Airport Land Sale Permanent Fund's year ending December 31, 2011 balance of $20,920,217 the allowable transfer to airport operations for FY2012 will be 51,011,485. With the continued strong performance of the fund the FY12 withdraw for airport operations has yet to be made but will take place prior to year end. 112 CITY OF KENAI INVESTMENT PORTFOLIO SUMMARY March 31, 2012 Cash & Cash Equivalents Wells Fargo Checking Wells Fargo Secured Money Market arch 31, 2012 Fair Market Current Value Yield 618,274 6,424,725 0.00% 0.01 % FDIC Insured Certificates of Deposit - 0.00% Alaska Municipal League Investment Pool 1,362,049 0.01 Total Cash & Cash Equivalents 8,405,048 0.01% Government Securities Maturities Less than 1 Year Maturities 1 to 2 Years Maturities Greater than 2 Years Total Government Securities Total Portfolio Average Yield 0.00% 5,995,880 0.44% 2,998,700 0.59% 8,994,580 0.49% 7,399,628 12.02z2 Investment Portfolio - Purchase Price Investment Portfolio - Fair Value 06/30/11 Fair Value Adjustment - 06/30111 Fair Value Adjustment - 12/31/11 Cummulative Change in Fair Value $ 17,401,179 17, 400, 019 (1,160) (391) 759 r 512,000,000 $0,000,000 $4,000.000 Portfolio Liquidity Liquidity 20% Miniirum Maturity 1- 2 years Ma urity over 2 years 0% Maximum DPoN0y MininmmiMa,.1mU, Actual I 113 ,ITY OF KENAI INVESTMENTS 3/31/2012 SECURITY FHLB 0.606/27/13 FHLMC 0.457/26/13 Step 7/1210 1.0 FHLMC 0.30 3/21/14 FNMA 0.5 1/25/16 Step 1/13 1%, 1/14 1.25% 1/15 1.75% FNMA 0.75 3/1117 Step 1/13 1%, 1/14 1.25 %. 1/15 2.00 %, and 1116 3.0% TOTAL CUSIP original cos/ 313374000 1,000,000. 3134G2TR3 2,000,000 3134634155 2,996,360 3138E7098 2,000,000 3136FTW70 999,771 8,996,13083 CITY OF KENAI Investments 03.31 -12 C0K Current year cost or 06/30/11 03/31/12 Market Value Market Value 998,840.00 1,000,020.00 2,000000.00 1,999,760.00 2,995,360.00 2,996,10200 2,000.000.00 999770.83 8,994,971 114 1,998,480.00 1,000,220.00 8,994,580.00 Unrealized Gain Accrued EFFECT. DATE DATE or Loss Interest RATE PURCH. DUE 1,180.00 - 0.600 6/27/2011 6/27/2013 (240.00) - 0.450 7/26/2011 7/26/2013 (260.00) - 0.370 7/26/2011 3/21/2014 (1,520.00) 449.17 (390.83) 0.600 7/26/2011 1/25/2016 0.775 7/26/2011 3/1/2017 0.480 Fixed Income Cash & Cash Equivalents Wells Fargo Secured Money Market Total Cash & Cash Equivalents CITY OF KENAI PERMANENT FUND INVESTMENT PORTFOLIO SUMMARY March 31, 2012 Current or Current Fair Market Value Average Portfolio Target Portfolio 30Jun -01 30- Sep -11 31- Dec -11 31 -Mar -12 Yield Weight Weight Maximum 148836 231,563 451,284 580,912 0,01% 1,93% 148,836 231,563 451,284 580,912 Government & Corporate Securities Government Securities 5,034,168 5,082,747 5,317,558 5,181,890 0.97% 22.77% Corporate Securities 4,605,222 4,287,694 408O614 4,605,676 222% 1748% Total Government & Corporate Securities 9.639 390 9,370,441 9,398,172 9.787,566 1 49% Total Fixed Income 9,788,226 9,602,004 9,849456 10,368,478 1,4454 42.1854 45,00% 65.0054 Equities Domestic Equities Standard & Poor's 500 Index Standard & Poor's 600 Small -Cap Index Standard & Poor's 400 Mid -Cap Index Total Domestic Equities 6,033,324 5,356,974 5,710,752 6,539,043 1,011,963 807,969 1,056,533 1,180,439 2,190,727 1,748.770 2,079,073 2,600,358 9,236,014 7,913,713 8,846,368 9,319,840 24.48% 4.52% 890% 37.90% 20.00% 5.00% 10.00% 35.00% 25.00% 10.00% 15.00% 50.00% International Equities Vanguard Europe Pacific ETF 2,564,155 2,222,600 2,259,483 2,510,291 9.68% 10.00% 15.00% Vanguard Emerging Market ETF 1,742,055 1,283,789 1,369,064 1,797,658 5.86% 5.00% 10.00% Total International Equities 4,306,210 3,506,389 3,628,547 4,307,949 15.54% 15.00% 25.00% Real Estate Vanguard REIT ETF Total Real Estate Total Equities Total Portfolio 7s.00y 1,061 546 898,517 1,024,454 1,124,250 1.061,546 898,517 1,024,454 1,124,250 14,603,770 12,318,619 13,499,359 14,752,039 24,391,996 21,920,623 23,348,815 25 120,517 Portfolio Composition 4.381, 5.00% 10.00% 4.38%0 5.00% 10,00 %a 100.00% 100.00% 150.0035 26.00% sunders n Pe w „me. el DCurrem PCR5,5a Wei07,t 6l Wf crffr,U p4: nM dm'vm ParlfoL Portfolio Performance Oncost, is comma 9.57% 115 April 9, 2012 Mr. Terry Eubank Finance Director City of Kenai 210 FideIgo Avenue Kenai, AK. 99611 Dear Terry; ER Apcm CAPITAL MM6EMENT sent via email Enclosed is our March report for the Airport Permanent Fund, which includes a portfolio appraisal and transactions. As this report coincides with the end of a calendar quarter, performance data is included. First quarter performance was decent both on an absolute and relative basis. At month -end, the market value of the portfolio was $25,120,516. Based upon the composition of the portfolio at month -end, the annual cash flow would be $326,988, excluding dividends on the equity positions. Any questions call. Sincerely, Bert Wagnon Senior Vice - President 116 Brandy Nidai, CFA Senior Investment Analyst TY OF KENAI - AIRPORT PERMANENT FUND Account Statement - Quarter Ending March 31, 2012 ACCOUNT ACTIVITY Portfolio Value on 12 -31 -11 Contributions Withdrawals Change in Market Value Interest Dividends Portfolio Value on 03 -31 -12 INVESTMENT PERFORMANCE Current Account Benchmark: Equity Blend Percent Total Return (Gross) 23,348,815 0 -1,030 1,647,646 79,393 45,692 25,120,516 MANAGEMENT TEAM Director of Client Relations: Your Portfolio Manager: Contact Phone Number: PORTFOLIO COMPOSITION Real Estate Emer Mkts 5% 7% ALASKA PERMANENT :APIYAL MANAGEMENT Laura Bruce, CFP, ChFC Laura @apcm.net Bert Wagnon Jason Roth 907/272 -7575 US Sm Ca 5% Curet J Current Yeal ti 1 Latest 1 1 Ire epti me rh Quartz Date Year 1.07 7.59 J 59 j 3.87 ! 11.14 I 0.87 7_00 7_00 i_ 4 96 u 11.46 Perfarmancefor Periods One Year and Greaterare Annualized Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITY OF KEN,AI - AIRPORT PERMANENT FUND March 31, 2012 Yield Average Total Market Pet. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Fnconse interest Maturity U.S. TREASURY 600,000 175 TREASURY NOltS 0.625% Due 12 -31 -12 400,000 US TREASURY NOTES 1.250% Due 10 -31 -15 1,075,000 US TREASURY NOTES 2.625 %Due I1 -15 -20 Accrued Interest AGENCIES 500,000 PNC FUNDING CORP- FD IC GUARANTEED 2.300% Due 06 -22-12 500,000 FNMA 2.875 %Duc 12-11-13 1-� 500,000 PHLB 18-1 5.375 %Duc 05 -18 -16 00 250,000 FNMA 0.750 %Due 11 -29 -16 450,000 EHLMC 4.875% Due 06 -13-18 Accrued Interest FNMA & Fi3LMC 190,175 151-11,MC 4.00% POOL 014203 4.00098 Due 04 -01 -26 Accrued Interest CORPORATE BONDS 200,000 BERKSHIRE HA ITIAWAY INC 2.125% Due 02 -11 -13 200,000 ULAXOSMITHKLINE CAP INC 4.850 %Due 05 -15 -13 200,000 TOYOTA MOTOR CREDIT t 375% Due 08 -12 -13 200,000 BARRICK GOLD FINANCE C.O. 6.125% Due 09 -15-13 200,000 IBM CORP 6.500% Due 10 -15 -13 200,000 MERRILL LYNCH & CO 5.450% Due 07-15-14 100.52 603,141 100.32 601,896 2.40 3,750 948 0.20 98.15 392,586 101.99 407,968 1.62 5,000 2,102 0.69 191.12 1,087,030 105.16 1,130,513 4.50 28,219 10,698 1.97 13,748 0.05 2,082,756 2,154,125 8.58 13,748 100.82 504,100 100.47 502,343 2.00 11,500 3,162 0.21 102.07 510,339 104,27 521,343 2.08 14,375 4,392 0.35 110.35 551,726 118.19 590,929 235 26,875 9,929 0.88 100.00 250,000 100.07 250,165 1.00 1,875 635 0.74 110.66 497,970 119.28 536,755 2.14 21,937 6,581 I.60 24,700 0.10 2,314,135 2,426,236 9.66 24,700 104.56 198,852 105.65 200,928 0.80 7,607 634 1.36 634 0.00 198,852 201,562 0.80 634 100 -16 200,312 101.44 202,890 0.81 4,250 590 0.44 93.74 187,474 104.97 209,932 0.84 9,700 3,664 0.41 101.03 202,052 101.20 202,394 081 2,750 374 0.49 111.45 222,898 107.26 214,514 0.85 12250 544 1.08 103,71 207,422 10896 217,924 0.87 13,000 5,994 0.64 98.47 196,946 104.62 209,236 0.83 10,900 2,301 3.33 Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITY OF KENAI - AIRPORT PERMANENT FUND March 31, 2012 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Intone Interest Alaturi 200,000 3P MORGAN CHASE & CO 88.88 177,764 108.66 217,318 0.87 9,500 792 1.69 4/750% Due 03 -01 -15 200,000 MORGAN STANLEY 6.000% Due 04 -28 -15 200,000 HSBC FINANCE CORP 5.500% Due 01 -19-16 200,000 COMCAST CORP 5,900% Due 03 -I5 -16 250,000 SRITLSH COLLIM131A PROV OF 2.100% Due 05 -18 -16 200,000 CONOCOPHILLIPS CANADA 89.87 179,748 117.66 235,312 0.94 11,250 5,187 1.58 5.625% Due 10 -15 -16 200,000 JOHN DEERE CAPITAL CORP 102.52 205,032 102.01 204,012 0,81 4,000 1,322 1.56 2.000% Due 01 -13 -17 200,000 STATOR, ASA 101.11 202,212 107.27 214,542 0.85 6,250 764 1.70 3.125% Due 08 -17 -17 1-'' 200,000 WACHOVIA CORPGLOIIAL MEDIUM 85.50 171,000 116.26 232,526 0.93 11,500 1,917 2.71 I"' 5.750% Due 02 -01 -18 200,000 MCDONALDS CORP MIEN 104.35 208,698 119.67 239,350 0.95 10,700 892 1.83 5.350% Due 03 -01 -18 200,000 CENTRAL ELECTRIC CAP CORP. 84.71 169,416 115.91 231,818 0.92 11,250 4,687 2.76 5.625% Due 05 -01 -18 200,000 SOUTHERN CAL EDISON 122.07 244,134 120.01 240,014 0.96 11,000 1,406 2.12 5 -500% Due 08 -15 -18 500,000 GOLDMAN SACHS GROUP LTC, 116.51 582,570 114.25 571,265 2.27 37,500 4,792 5.02 7.500% Due 02 -15 -19 Accrued Interest 84.00 168,000 104.67 209.336 0.83 12,000 5,100 4.36 96.28 192,568 108.36 216.724 0.86 11,000 2,200 3.14 116.19 232,384 115.46 230,924 0.92 11,800 524 1.83 99 -98 249,952 104.26 260,655 1,04 5,250 1,940 404 DOMESTIC LARGE CAP EQUITY FUNDS /ETF 39,337 SPDR S &P 500 Ell, TRUST DOMESTIC MID CAP EQURY FUNDS/ETF 26,208 [SHARES S &P MIDCAP 400 DOMESTIC SMALLL CAP EQUITY FUNDS/ETF 15,469 ISR /MIES 8 80P SMALLCAP 600 INDEX INTERNATIONAL FUNDS/ETF 73,767 VANGUARD MSC( EAPE ETE EMERGING MARKET FUNDS/ETF 41,354 VANGUARD EMERGING MARKETEIF 44,991 0.18 4,200,582 4,605,677 18,33 44,991 98.88 3,889,747 140.81 5,539,043 22,05 NA 58,06 1,521,577 99.22 2,600,358 10,35 NA 47.91 741,084 76.31 1,180,439 4.70 NA 29.15 2,149,994 34.03 2,510.2291 9,99 NA 30,40 1.257,216 43.47 1,797,658 7.16 NA Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITY OF KENAI - AIRPORT PERMANENT FUND Mnrrh 3/, 2012 Yield Average Total Market Pct. Anneal Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity REAL ESTATE 17,663 YANG OAItDR El' rF 7 31,37 554,025 63.65 1,124,250 4.48 NA TREASURY BILLS 400,000 US TREASURY BILLS 0.000% Due 05 -31 -12 CASH AND EQUIVALENTS DIVIDEND ACCRUAL Wells Fargo Secured MoneyMlarket Account TOTAL PORTFOLIO 99.83 399,332 99.99 25,781 555,131 580,912 19,890.213 399,964 1.59 NA 0 0.05 25,781 0.10 555,131 2.21 580,912 2.31 25,120,516 100 326,988 84,073 Alaska Permanent Capital Management Co. TRANSACTION SUMMARY CITY OF KEA'AL - AIRPORT PERMANENT FUND From 03 -01 -12 To 03 -31 -12 Trade Settle Trade Date Date Security Quantity Amount DIVIDEND DOMESTIC LARGE CAP EQUITY FUNDS/ETF 03 -16 -12 04 -30 -12 SPDR S&P 500 ETF TRUST DOMESTIC MID CAP EQUITY FUNDSIETF 03 -26 -12 03 -30 -12 ISHARES S &P M1DCAP 400 DOMESTIC SMALL CAP EQUITY FUNDS /ETF 03 -26 -12 03 -30 -12 ISHARES S &P SMALLCAP 600 INDEX INTERNATIONAL FUNDS /ITT 03 -22 -12 03 -28 -12 VANGUARD MSC1 EAFE ETF REAL ESTATE 03 -26 -12 03 -30-12 VANGUARD REIT ETF INTEREST CASH AND EQUIVALENTS 03 -01 -12 03 -01 -12 Wells Fargo Secured MoneyMarket Account 25,780.92 6,764.26 3,468.78 811.44 8.866.83 45,692,23 16.66 CORPORATE BONDS 03 -01 -12 03 -01 -12 JP MORGAN CHASE& CO 4,750.00 4.750% Due 03 -01 -15 03 -01 -12 03 -01 -12 MCDONALDS CORP M/T/N 5,350.00 5.350°% Due 03 -0J -18 03 -01 -12 03 -15 -12 I3ARRICK GOLD FINANCE 6,125.00 CO. 6.125% Due 09 -15 -13 Alaska Permanent Capital Management Co. TRANSACTION SUMMARY CITY OF KENAI - AIRPORT PERMANENT FUND From 03 -01 -12 To 03 -31 -12 Trade Settle Date Date Security 03 -15 -12 03 -15 -12 COMCAST CORP 5900% Due 03 -15 -16 Quantity Trade Amount 5,900.00 22,125.00 FNMA & FHLMC 03 -15 -12 03 -15 -12 FILLMC 4.00% P001. 656.36 G14203 4.000% Due 04 -01 -26 22,798.02 PRINCIPAL PAYDOWNS FNMA & FHLMC 03d5-12 03 -15 -12 FHLMC 4.00 %POOL 6,731.99 6,731.99 N G14203 4.000% Due 04 -01 -26 ... _._... _. .....6,731.99 SALES, MATURITIES, AND CALLS DOMESTIC LARGE CAP EQUITY FUNDSIETF 03 -26 -12 03 -29 -12 SPDR S&P 500 EH [RUST WITHDRAW CASH AND EQUIVALENTS 03 -20 -12 03 -20-12 Wells Fargo Secured MoneyMarket Account 2,659.0000 374,892.31 374,892.31 338.04 338,04 Alaska Permanent Capital Management Co. REALIZED GAINS AND LOSSES CITY OF KENAI - AIRPORT PERMANENT FUND From 03 -01 -12 Through. 03 -31 -12 Avg. Cost Date Quantity Security Basis 03 -15 -12 03 -26 -12 6,731.99 FI-ILMC 4.00% POOL G14203 4.000% Due 04 -01 -26 2,659.0000 SPDR S &P 500 ETF TRUST TOTAL GAINS TOTAL LOSSES N CO Proceeds Gain Or Loss 7,039.14 6,731.99 262,928.98 374,892.31 269,968.12 381,624.30 - 307.15 111,963.33 111,963.33 - 307.15 111,656.18 Alaska Permanent Capital Management Co. CASH LEDGER CITY OF KENAI - AIRPORT PERMANENT FUND From 03 -0142 To 03 -31 -12 Trade Settle Fran Date Date Code Activity Security DIVIDEND ACCRUAL 03 -01 -12 Beginning Balance 03 -16 -12 04 -30 -12 dp Dividend 03 -31 -12 Ending Balance Wells Fargo Secured MoneyMarket Account 03 -01 -12 Beginning Balance 03- 01. -12 03 -01 -12 dp Interest 03 -01 -12 03 -01 -12 dp Interest 03-01-12 03 -01 -12 dp Interest 03 -01 -12 03 -15 -12 dp Interest 03 -15 -12 03 -15 -12 dp Interest 03 -15 -12 03 -15 -12 dp Interest 03 -15 -12 03 -15 -12 dp Paydown 03 -20 -12 03 -20-12 wd withdrawal 03 -22 -12 03 -28 -12 dp Dividend 03 -26 -12 03 -29 -12 dp Sale 03 -26 -12 03 -30-12 dp Dividend 03 -26 -12 03 -30-12 dp Dividend SPDR S &P 500 ETF TRUST JP MORGA'N CHASE & CO 4.750% Due 03 -01 -15 MCDONALDS CORP M/T/N 5.350% Due 03 -01 -18 Wells Fargo Secured MoneyMarket Account BARRICK GOLD FINANCE CO. 6.125% Due 09-15-13 FHLMC 4.00% POOL G14203 4.000% Due 04-01 -26 COMCAST CORP 5.900% Due 03 -15 -16 FFILMC 4.00% POOL G14203 4.000% Due 04 -01 -26 from Portfolio VANGUARD MSCI EASE EIF SPDR S &P 500 Ell, TRUST ISIIARES S &P MIDCAP 400 VANGUARD REIT' ETF Amount 0.00 25,780.92 25,780.92 131,135.77 4,750.00 5,350.00 16.66 6,125.00 656.36 5,900.00 6,731.99 - 338.04 811.44 374,892.31 6,764.26 8,866.83 r CFI Alaska Permanent Capital Management Co. CASH LEDGER CITY" OF KENAI - AIRPORT PERMANENT FUND From 03 -01 -12 To 03 -31 -12 Trade Settle Trail Date Dace Code Activity Security Amount 03 -26-12 03 -3042 dp Dividend IS1IARES S &P SMALLCAP 600 3,468.78 INDEX 93-31-12 Ending Balance 555,131.36 9 CITY OF KENAI - AIRPORT PERMANENT FUND Account Statement - Quarter Ending March 31, 2012 ACCOUNT ACTIVITY Portfolio Value on 12 -31 -11 Contributions Withdrawals Change in Market Value Interest Dividends Portfolio Value on 03 -31 -12 INVESTMENT PERFORMANCE Current Account Benchmark; Equity Wend al Return (Gross) 23, 348, 815 0 -1,030 1,647,646 79,393 45,692 25,120,516 Cu rent . Yeart Q7 59 Data rune I 0.87 7 00 [ 7.59 ie 0.87. >.OP 1 7.00 1 Performancefor Periods One Year and Greater are Annualized MANAGEMENT TEAM Director of Client Relations: Your Portfolio Manager: Contact Phone Number: PORTFOLIO COMPOSITION US Sal Cap 5% Real Estate. Emer Mkts 5% 70/0 ALASKA; PER MAN APC CAPITAL MANAGEMENT Laura Bruce, CFP, ChFC Laura@apcm.net Bert Wagnon Jason Roth 907/272 -7575 Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITY OF KEN AI - AIRPORT PERMANENT FUND March 31. 2012 Yield Average Total Market Pet, Annual Accrued to Quantity Security Cost Average Cost Price Value Assets income Interest Maturity U.S. TREASURY 600,000 US TREASURY NOTES 100.52 603,141 100.32 601,896 2.40 3,750 948 0.20 0.625 %Due 1231 -12 400,000 US TREASURY NOTES 9815 392,586 10199 407,968 1.62 5,000 2,102 0.69 1.250% Due 10 -31 -15 1,075,000 US TREASURY NOTES 10112 1,087,030 105.16 1,130,513 4.50 28,219 10,698 1.97 2.625 %Due 11 -15 -20 Accrued interest 13,748 0.05 2,082,756 2,154,125 8.58 13,748 AGENCIES 500,000 PNC FUNDING CORP - FDIC GUARANTEED 100.82 504,100 100.47 502,343 2.00 11,500 3,162 0.21 2100% Due 06 -22 -12 500,000 FNMA - 102.07 510,339 104.27 521,343 2.08 14,375 4,392 0.35 2.875% Due 12 -11 -13 1-4 500,000 FHLB 110.35 551,726 118.19 590,929 2.35 26,875 9,929 0.88 N 5.375% Due 05 -18 -16 '551 250,000 FNMA 100.00 250,000 100 .07 250,165 1.00 1,875 635 0.74 0.750% Due 11-29 -16 450,000 F13LMC 110.66 497,970 119.28 536,755 2.14 21,937 6,581 1.60 4.875% Due 06 -13 -I8 Accrued Interest 24,700 0.10 2,314,135 2,426,236 9.66 24,700 FNMA & FIHLMC 190,175 FHLMC 4.00% POOL 014203 104.56 198.852 105.65 200,928 0.80 7,607 634 1.36 4.000% Due 04 -01 -26 Accrued Interest 634 0_00 201,562 0,80 634 198,852 CORPORATE BONDS 200,000 BERKSHIREHA'PHAWAY INC 100.16 200,312 I0144 202,890 0.81 4,250 590 0,44 2.125% Due 0241 -13 200,000 GLAXOSMIFHKLNE CAP INC 93.74 187,474 10497 209,932 0.84 9,700 3,664 0.41 4.850% Duc 05 -15 -13 200,000 TOYOTA MOTOR CREDIT 101,03 202,052 101.20 202,394 0.81 2,750 374 0.49 1.375% Due 08 -12 -13 200,000 BARIUM GOLD FINANCE CO. 111.45 222,898 107.26 214,514 0.85 12,250 544 1.08 6. 12588 Due 09 -15 -13 200,000 IBM CORP 103.71 207,422 108.96 217,924 0.87 13,000 5,994 0.64 6.500% Due 10 -15 -13 200,000 MERRILL LYNCH & CO 9847 196,946 104.62 209,236 0.83 10,900 2,301 3.33 5.450 %Due 07 -15 -14 Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITY OF KENAI - AIRPORT PERMANENT FUND March 31, 2012 Yield Average Total Market Pct. Annual Accrued to Quantity Cost Average Cost Price Value Assets Income Interest Maturity 200,000 7P MORGAN CHASE &CO 88.88 177.764 108.66 217,318 0.87 9,500 792 1.69 4.750% Due 03 -01 -15 200,000 M,ORGAN STANLEY 84.00 168,000 104.67 299,336 0.83 12,000 5,100 4.36 6.0008/0 Due 04 -28 -15 200,000 HSBC FINANCE CORP 96.28 192,568 108.36 216,724 0.86 11,000 2,200 3.14 5.50086 Due 01 -19 -16 200,000 COMCAST CORP 11.6.19 232,384 115.46 230,924 0,92 11,800 524 1.83 5.900% Due 03 -15 -16 250,000 BRITISH COLUMBIA PROV OF 9498 249,952 10426 260,655 1.04 5,250 1,940 1.04 2.100% Due 05 -18-16 200,000 CONOCOPIIILLIPS CANADA 89,87 179,748 117,66 235,312 0.94 11,250 5,187 1.58 5_625% Due 10 -15 -16 200,000 JOHN DEERE CAPITAL. CORP 102.52 205,032 102.01 204,012 0,81 4,000 1,322 1.56 2-000% Doe 01 -13-17 200,000 STATOR. ASA 101.11 202,212 107.27 214,542 0.85 6,250 764 1.70 3.125% Dne 08 -17 -17 F-+ 200,000 WACHOVIA CORP GLOBAL MEDIUM 85.50 171,000 116.26 232,526 0.93 11,500 1,917 2.71 N 5.750% Due 02 -01 -18 00 200.,000 MCDONALDS CORP M/T /N 104.35 208,698 119.67 239,350 0.95 10,700 892 1.83 5.350% Due 03-01 -18 200,000 GENERAL ELECTRIC CAP CORP. 84.71 169,416 115.91 231,818 0.92 11,250 4,687 2.76 5.625% Due 05 -01 -18 200,000 SOUTHERN CAL EDISON 122.07 244,134 120.01 240,014 0.96 11,000 1,406 2.12 5.590% Duo 08 -15.18 500,000 GOLDMAN SACHS GROUP INC. 116.51 582,570 114.25 571,265 2.27 37,500 4,792 5.02 7500% Due 02 -15 -19 Accrued Interest 44,991 0.18 4,200,582 4,605,677 18.33 44,991 DOMESTIC LARGE CAP EQUITY FUNDS/ETF 39,337 SPDR S &P 500 ELF TRUST 98.88 3,889,747 140.81 5,539,043 22.05 NA DOMESTIC MID CAI' EQUITY FUI4DS!ETF 26,208 !SHARES S &P MIDCAP 400 DOMESTIC SMALL CAP EQUITY FUNDS/ETF 15,469 ISITARES S &P SMALLCAP 600 INDEX INTERNATIONAL FUNDS /ETF 73,767 VANG17ARD MSCI TAFE ELF EMERGING MARKET FUNDS /ETF 41,354 VANGUARD EMERGING MARKET ETF 58.06 1,521,577 99.22 2.600,358 10.35 NA 4791 741,084 76.31 1,180,439 4.70 NA 29.15 2,149,994 34.03 2,510,291 9.99 NA 30.40 1,257,216 43.47 1,797,658 7.16 NA Alaska Permanent Capital Management Co. PORTFOLIO APPRAISAL CITY OF KENAI - AIRPORT PERMANENT FUND March 31, 2012 Yield Average Total Market Pct. Annual Accrued to Quantity Security Cost Average Cost Price Value Assets Income Interest Maturity REAL ESTATE 17,663 VANGUARD REITETF 31.37 554,025 63.65 1,124,250 4.48 NA TREASURY BILLS 400,000 118 TREASURY 131L1 0.000 % Due 05 -31 -12 99.83 399,332 99.99 399,964 1.59 NA 0 0.05 CASH AND EQUIVALENTS DIVIDEND ACCRUAL. 25,781 25,781 0.10 Wells Fargo Secured Mnncy51arket Account 555,131 555,01 2.21 580,912 _ 580,912 2.31 TOTAL PORTFOLIO .. - 19.890,213 25,120,516 100 326,988 84,073 Alaska Permanent Capital Management Co. TRANSACTION SUMMARY CITY OF KENAI - AIRPORT PERMANENT FUND From 03 -01 -12 7b 03 -31 -12 Trade Settle Trade Date Date Security Quantity Amount DIVIDEND DOMESTIC LARGE CAP EQUITY FIJNDS /ETF 03 -16 -12 04 -30 -12 SPDR S &P 500 ETF TRUST DOMESTIC MID CAP EQUITY FUNDS /PTT 03 -26 -12 03 -30 -12 ISHARES S&P MIDCAP 400 DOMESTIC SMALL CAP EQUITY FUNDS /ETP 03 -26 -12 03 -30-12 ISHARES S &P SMALLCAP 600 INDEX INTERNATIONAL FUNDS /E1I- 03 -22 -12 03 -28 -12 VANGUARD MSCI EAFE ETF 25,780.92 6,764.26 3,468.78 811.44 REAL ESTATE 03 -26 -12 03 -30 -12 VANGUARD RETT ETF 8,866 -83 45,692.23 INTEREST CASH AND EQUIVALENTS 03 -01 -12 03 -01 -12 Wells Fargo Secured MoneyMarket Account 16.66 CORPORATE BONDS 03 -01 -12 03 -01 -12 .1P MORGAN CHASE & CO 4,750.00 4.750% Due 03 -01 -15 03 -01 -12 03 -01 -12 MCDONA LDS CORP M /I /N 5,350.00 5.350% Due 03 -01 -18 03 -01 -12 03 -15 -12 BARRICK GOLD FINANCE 6,125.00 CO. 6.125% Due 09 -15 -13 Alaska Permanent Capital Management Co. TRANSACTION SUMMARY CITY OF KENAI - AIRPORT PERMANENT F From 03 -01 -12 To 03 -31 -12 Vin Trade Settle Trade Date Date Security Quantity Amount 03 -15 -12 03 -15 -12 COMC'AST CORP 5,900.00 5.900% Due 03 -15 -16 22,125.00 FNMA & FHLMC 03 -15 -12 03 -15 -12 FHLMC 4.00% POOL 656.36 G14203 4.000 % Due 04-01-26 _.... 22,798.02 PRINCIPAL PAYDOWNS FNMA & FFILMC 03 -15 -12 03 -15 -12 FITLMC 4.00% POOL G14203 4.000% Due 04 -01 -26 SALES, MATURITIES, AND CALLS DOMESTIC LARGE CAP EQUITY FUNDS /ETF 03 -26 -12 03 -29 -12 SPDR S &P 500 ETF TRUST WITHDRAW CASH AND EQUIVALENTS 03 -20 -12 03 -20 -12 Wells Fargo Secured MoneyMarket Account 6,73L99 6,731.99 ,7 2,659.0000 374,892.31 374,892.31 338.04 338.04 Alaska Permanent Capital Management Co, REALIZED GAINS AND LOSSES CITY OF KENAI - AIRPORT PERMANENT FUND From 03 -01 -12 Through 03 -31 -12 Avg. Cost Date Quantity Security Basis Proceeds Gain Or Loss 03 -15 -12 6,731.99 FHLMC 4.00% POOL 7,039.14 6,731.99 - 307.15 G14203 4.000% Due 04 -01 -26 03 -26 -12 2,659.0000 SPDR S &P 500 ETF TRUST 262,928.98 374,892.31 111,963.33 TOTAL GAINS 111,963.33 TOTAL LOSSES - 307.15 269,968,12 381,624.30 111,656.18 W W Alaska Permanent Capital Management Co, CASH LEDGER CITY OF KENAI - AIRPORT PERMANENT FUND From 03 -07 -11 To 03 -31 -11 Trade Settle Iran Date Date Code Actg. DIVIDEND ACCRUAL, 03 -01 -12 Beginning Balance 03 -16 -12 04 -30 -12 dp Dividend 03 -31 -12 Ending Balance Wells Fargo Secured lMoneyMarket Account 03 -01 -12 Beginning Balance 03 -01 -12 03 -01-12 dp Interest 03 -01 -12 03 -01 -12 03 -01 -12 03 -15 -12 03-1512 03 -15 -12 03 -20-12 03 -22 -12 03 -26-12 03 -26 -12 03 -26 -12 03 -01 -12 03 -01 -12 0315 -12 03 -15 -I2 03- 15 -1.2 03 -15 -12 03 -20 -12 03 -28 -12 03 -29 -12 03 -30 -12 03 -30 -12 dp Interest dp Interest dp Interest dp Interest dp Interest dp Paydown wd Withdrawal rip Dividend dp Sale dp Dividend dp Dividend Security SPDR S &P 500 ET P TRUST JP MORGAN CHASE & CO 4.750% Due 03 -01 -15 MCDONALDS CORP WIN 5.350% Due 03 -01 -18 10,/e1Is Fargo Seared Money Markel Account BARRICK GOLD FINANCE CO. 6.125% Due 09 -15 -13 FHLMC 4.00% POOL 014203 4.000% Due 04 -01 -26 COMCAST CORP 5.900% Due 03 -15 -16 F HLMC 4.00% POOL G14203 4.000% Due 04 -01 -26 from Portfolio VANGUARD MSCI EAFE CIF SPDR S &P 500 ETF TRUST [SHARES S &P MIDCAP 400 VANGUARD RE1T ETF Amount 0.00 25,780.92 25,780.92 131,135.77 4,750.00 5,350.00 16.66 6,125.00 656.36 5,900.00 6,731.99 -338.04 811.44 374,892.31. 6,764.26 8,866.83 PURCHASE ORDERS BETWEEN $2,500.00 AND $15,000.00 FOR COUNCIL REVIEW COUNCIL MEETING OF: MAY 2, 2012 VENDOR DESCRIPTION DEPT. ACCOUNT AMOUNT KENAI QUALITY FLOORING REPLACE N/S TERM. WALK -OFF CARPET TERMINAL REPAIR & MAINTENANCE 3,991.13 KENAI QUALITY FLOORING REPLACE CARPET STAIRS/VESTIBULE TERMINAL REPAIR & MAINTENANCE 2,640.46 CH2M HILL DISCHARGE PERMIT PROPOSAL WWTP PROFESSIONAL SERVICES 3,000.00 CARQUEST AUTO CUMMINGS REBUILT ENGINE SHOP OPERATING SUPPLIES 7,000.00 ALASKA GARDEN & PET SUPPLY FERTILIZER PARKS OPERATING SUPPLIES 1,594.00 INGRAM LIBRARY SERVICES BOOKS LIBRARY BOOKS 4,000.00 F1 W NOTICE OF PUBLIC HEARING MAY 2, 2012 CITY OF KENAI COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai will conduct a public hearing on the following Ordinance(s) and /or Resolution(s) on the above -noted meeting date. 1. Ordinance No. 2624 -2012 -- Increasing Water & Sewer Fund Estimated Revenues And Appropriations By $10,911 For Costs In Excess Of Budgeted Amounts. 2. Ordinance No. 2625 -2012 -- Increasing Airport Fund Estimated Revenues And Appropriations By S20,069 For Costs In Excess Of Budgeted Amounts. 3. Ordinance No. 2626 -2012 -- Increasing General Fund Estimated Revenues And Appropriations By $231,638 For Costs In Excess Of Budgeted Amounts And Authorizing A Budget Transfer Within The General Fund In The Amount Of $33,000. 4. Ordinance No. 2627 -2012 -- Increasing Estimated Revenues and Appropriations By 526,515 In The General Fund For Proqa Emergency Medical Dispatching Software. 5. Ordinance No. 2628 -2012 -- Increasing Estimated Revenues and Appropriations by $16,847.35 In The General Fund For Police Digital Evidence Software And Investigative Equipment. 6. Ordinance No. 2629 -2012 -- Amending the Official Kenai Zoning Map by Rezoning a Portion of Lot 1 -Al, R.M. Thompson Subdivision, 2012 Addition from Light Industrial (IL) to General Commercial (CG). 7. Resolution No. 2012 -23 -- Authorizing a Budget Transfer of $10,000 Within the Water and Sewer Special Revenue Fund - Sewer Department. 8. Resolution No. 2012 -24 -- Supporting Funding for, and Implementation of, a Plan for Upgrades and Improvements to the Seward and Sterling Highways. The public hearing will commence at 7:00 p.m., or as soon thereafter as business permits, in the Kenai City Council Chambers, 210 Fidalgo Avenue, Kenai, Alaska, 99611. All interested persons are invited to attend the meeting and participate in the public discussion. Written comments may be sent to the Kenai City Council, c/o Kenai City Clerk, 21.0 Fidalgo Avenue, Kenai, AK, 99611. Copies of the ordinances and /or resolutions are available in the Office of the Kenai City Clerk and will be available at the meeting for public review. Please be advised, subject to legal limitations, ordinances and /or resolutions may be amended by the Council prior to adoption without further public notice. Corene Hall, Deputy City Clerk Posted: April 25, 2012 PUBLISHER'S AFFIDAVIT UNITED STATES OF AMERICA, STATE OF ALASKA Denise Reece ss: being first duly sworn, on oath deposes and says: That I am and was at all times here in this affidavit mentions, Supervisor of Legais of the Peninsula Clarion, a news- paper of general circulation and published at Kenai, Alaska, that the Council Agenda PO 496546 a printed copy of which is hereto annexed was published in said paper one each and every day for one successive and consecutive day in the issues on the following dates: April 30, 2012 SUBSCRIBED AND SWORN to me before thi. 4th d , of May - 2012 NOTARY PUBLIC in favo State of Alaska. My Commission expires or the 26- Aug -12 KENAI A COUNCIL — REGULAR MEETING MAY 2, 2012 7:00 @;M. KENAI CITY COUNCIL: CHAMBERS htto'dlwww ci K nai e aI< ua TEAR D: PUBLIC HEARINGS t:.. Ordinance No. 2624-2012 Increasing Water & Sewer Fund Estimated Revenues And Appropriations By $10,911 For Costs In Excess Of Budgeted Amoun s 2 Ordinance No. 2625.2012 — Increasing Airport Fund Esti--'^'' Revenues. And Appropriations By $20,069 For Costs In Excess Of Budgeted Amoun s. Ordinance No. 26264012 -- Increasing General Fund Estimated Revenues And Appropriations By $231,638 For Costs in Excess Of Budgeted Amounts And Authorizing A Budget Transfer Within The General Fund In The Amount Of $33,000. Ordinance No. 2627.2012 — Increasing Estimated Revenue. Appropriations By $26,515 In The General Fund For Proqa Emergency. Medical Dispatching Software. Ordinance No. 2628-2012 — Increasing Estimated Revenues And Appropriations By $16847.35 In The General Fund For Police Digital Evidence Software And Investigative Equipment. Ordinance No 2629 -2012 — Amending the Official Kenai Zoning Map by Rezoning a Portion of Lot 1-Al, R.M. Thompson Subdivision, 2012 Addition from Light Industrial (IL) to General Commercial (GG) 7. Resolution: No 2012 43 Authorizing a Budget Transfer of $10,000 Within the Water and 'I: Sewer Special Revenue Fund - ':Sewer. Department. 8. Resolution No. 2012 -24 - Supporting Funding for and Implementation of, a Plan for Upgrades and Improvements to the Seward and Sterling Highways. ITEM G: NEW BUSINESS:.: 1 Action /Approval — Bills to be Ratified 2. ActionlApproval — Purchase Orders Exceeding $15,000 `Ordinance No 2630-2012 — Increasing Estimated Revenues and Appropriations m the General Fund for Professional Services Observing and Monitoring Three Dimensional Seismic Surveying Being Conducted on 0 ty Property and in City Right -Of -Ways. 4. ActionlApproval -- Lease Agreement between the City of Kenai and Russell Winger for Lot 3, Block 4 General Aviation Apron, Located'' within the Airport Reserve. ActionlApproval — Buccaneer Alaska Operations, LLC Special Usa.: Permit 8. ActionlApproval — Assignment of Lease from Wolverine Leasing TO Schilling Rentals, LLC for Lot 1A, Block 4, General Aviation Apron. 7 Action /Approval -- Kenai Municipal' Airport Lease of Airport Facilities to Alaska.. Realty Group, Inc, for Office Space No 9 in the Terminal Building, ITEM L: EXECUTIVE SESSION -- None. ITEM N: ADJOURNMENT public is invited to attend and participate. Additional information available through the City Clerk's office at 210 Fidalgo Avenue, or visit our website at e s • .w. -it Corene Hall, Deputy City Clerk