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HomeMy WebLinkAboutRESOLUTION 2003-48Suggested by: Administration City of Kenai RE~OLUTION NO. 2003-48 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA TRANSFERRING $6,500 FROM THE GENERAL FUND TO THE AIRPORT LAND SYSTEM SPECIAL REVENUE FUND TO PAY FOR CERTAIN UTILITIES AT THE KENAI ALASKA REGIONAL AIRCRAFT RESCUE AND FIRE FIGHTING TRAINING CENTER AND AUTHORIZING A LEASE AGREEMENT WITH THE ARCTIC WINTER GAMES HOST SOCIETY. WHEREAS, the Arctic Winter Games Host Society is seeking office space; and, WHEREAS, the City has office space available in the upstairs portion of the Kenai Alaska Regional Aircraft Rescue and Fire Fighting Training Center; and, WHEREAS, the FAA has approved a below fair market value lease of the space; and, WHEREAS, one of the conditions of the FAA approval is that the Airport Fund would not bear the cost of utilities; and, WHEREAS, funds are appropriated in the General Fund non-departmental transfers account. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that: Section 1' The $6,500 previously appropriated to match the State Municipal matching grant be transferred to the Airport Land System Special Revenue Fund to pay utilities on the rental space used by the Arctic Winter Games Host Society in the Kenai Alaska Regional Aircraft Rescue and Fire Fighting Training Center; and, Section 2: The Administration is authorized to negotiate and execute an FAA approved lease agreement with the Arctic Winter Games Host Society for space available on the second floor of the Kenai Alaska Regional Aircraft Rescue and Fire Fighting Training Center. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASI<~ this 1 st day of October, 2003.  ~J~ H N~LIA~I S,- 1V~AY O R ATTEST: Carol L. Freas, City Clerk Approved by Finance 'f~. (10/25/2003) hl KENAI, ALASKA 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 /FAX: 907-283-3014 MEMORANDUM TO: FROM: DATE: RE' Mayor Williams and City Council Me~pbers Linda L. Snow, City Manager September 25, 2003 Arctic Winter Games Host Society At the September 17th City Council meeting, the Administration was asked to contact the Arctic Winter Games Host Society with a proposal to contribute the Alaska Regional Fire Training Facility second floor for their use as the Host Society headquarters until no longer needed after the 2006 Games are concluded. On September 18th, after discussions with the City Attorney, the Airport Manager, and the Finance Director regarding the circumstances under which Federal Aviation Administration (FAA) regulations might allow a less than fair market value (FMV) lease of the subject facilities, I contacted Ms. Terri Nettles, Administrative Assistant for the Host Society to inform her of Council's interest in making the proposal described above. Additionally, I advised her of our requirement to obtain FAA approval for such a proposal, as well as a statement of compatible use by AAI/ESI, operating as the Pacific Rim Institute of Safety and Management (PRISM), the current building occupants. I also talked with Mayor Dale Bagley, in his capacity as the Host Society President. Both Ms. Nettles and Mr. Bagley were very pleased with the idea of the lease proposal and wished to visit the facility later that same day. I then spoke with Dave Bumett, PRISM Director, who indicated his agreement that the Arctic Winter Games Host Society would be a compatible use with that of PRISM and, further, that he would be happy to meet the Host Society group later in the day when they toured the-facility. I received a telephone call from Mr. Bagley on September 22nd, indicating his opinion that there were no problems with the proposal that he could see. He requested a copy of the draft lease in advance of the October 9th Host Society Board of Directors meeting for the Board's consideration. Based upon tentative verbal approval by the FAA, in response to an emailed request for consideration by the Airport Manager, the Administration has begun efforts to develop a draft lease for review by the FAA at their request. According to the FAA, the draft lease must contain, as a minimum, the following: . A condition that the Airport shall bear no costs as a result of this agreement, including all utilities and maintenance costs associated with the use of the leased space. The Administration recommends this condition be met by Council approval of City of Kenai Resolution No. 2003-48 transferring previously appropriated municipal matching grant funds from the General Fund to the Airport System Special Revenue Fund for payment of the leased property utility costs for the for the leased term in this fiscal year. 2. A stipulation that the lease will be terminated or renegotiated at FMV if an interested party is willing to lease the space for aviation purposes or for FMV for non-aviation purposes. ge A stipulation that the subject lease will be for a limited period of time, with a designated "drop dead" date for termination and corresponding vacation of the premises. Further, a stipulation that the lease area be specifically defined. ,, 4. A lease clause requiring the tenant to return the property in like or better condition. 5. A condition that no property alterations will occur to the facility unless the Airport grants prior approval. The Administration is continuing to work with FAA on developing the lease document and again recommends Council approval of Resolution 2003-48 authorizing the Administration to negotiate and enter into an FAA approved lease document with the Arctic Winter Games Host Society for the second floor space at the Fire Training Facility.