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HomeMy WebLinkAbout2014-12-03 Council PacketCITY OF KENAI NOTICE OF ORDINANCES AND RESOLUTIONS ADOPTED AT THE DECEMBER 3, 2014 KENAI CITY COUNCIL MEETING NOTICE IS HEREBY GIVEN the City of Kenai Council passed the following Ordinance(s) and /or Resolution(s) at the above - referenced meeting. Ordinance No. 2800 -2014 — Accepting and Appropriating a Donation from Hilcorp Energy Company to Assist with the Annual Kenai Senior Center Thanksgiving Dinner. 2. Ordinance No. 2801 -2014 — Accepting and Appropriating a Grant from the State of Alaska Library for Employee Travel and Training. 3. Resolution No. 2014 -69 — Adopting an Alternative Allocation Method for the FY15 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in FMA 14: Cook Inlet. 4. Resolution No. 2014 -70 — Amending Article IV, Rents and Fees of the Lease Form for Airport Reserve Lands between the City of Kenai and Legacy Electric, LLC for Lot 2, Block 1, General Aviation Apron, Located within the Airport Reserve. Copies of the ordinances and /or resolutions are available in the Office of the Kenai City Clerk. Please be advised, subject to legal limitations, ordinances and /or resolutions may have been amended by the Council prior to adoption without further public notice. 7 Sandr' / odigh, CMC, i y Clerk Posted: December 4, 2014 A. C. ACTION AGENDA KENAI CITY COUNCIL — REGULAR MEETING DECEMBER 3, 2014 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.cit y CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. BRIAN GABRIEL ELECTED. Election of Vice Mayor 4. Agenda Approval 5. 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. SCHEDULED PUBLIC COMMENTS (Public comment limited to ten (10) minutes per speaker) UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS ENACTED UNANIMOUSLY. Ordinance No. 2800 -2014 — Accepting and Appropriating a Donation from Hilcorp Energy Company to Assist with the Annual Kenai Senior Center Thanksgiving Dinner. 2. ENACTED UNANIMOUSLY. Ordinance No. 2801 -2014 — Accepting and Appropriating a Grant from the State of Alaska Library for Employee Travel and Training. 3. ADOPTED UNANIMOUSLY. Resolution No. 2014 -69 — Adopting an Alternative Allocation Method for the FY15 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in FMA 14: Cook Inlet. 4. ADOPTED UNANIMOUSLY. Resolution No. 2014 -70 — Amending Article IV, Rents and Fees of the Lease Form for Airport Reserve Lands between the City of Kenai and Legacy Electric, LLC for Lot 2, Block 1, General Aviation Apron, Located within the Airport Reserve. E. MINUTES APPROVED BYCONSENTAGENDA. *Regular Meeting of November 19, 2014 APPROVED BY CONSENT AGENDA. *Work Session Notes of November 20, 2014 F. UNFINISHED BUSINESS 1. APPROVED AS AMENDED. Action /Approval —Special Use Permit Between the City Of Kenai and Hilcorp Alaska, LLC for Parking of 37 Non - Commercial Passenger Vehicles in Designated Areas at the Kenai Municipal Airport. [Clerk's Note: At its November 5th meeting, Council postponed this item to the December 3rd.] 2. APPROVED AS AMENDED. Action /Approval —Consent to Sublease between Dan O. Pitts and Hilcorp Alaska for Lot 2A1, FBO Subdivision, South Addition No. 2. [Clerk's Note: At its November 5' meeting, Council postponed this item to the December 3 d.] G. NEW BUSINESS 1. APPROVED BY CONSENT AGENDA. *Action /Approval —Bills to be Ratified 2. APPROVED BY CONSENT AGENDA. *Action /Approval —Purchase Orders Exceeding $15,000 INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET ON 12117. *Ordinance No. 2802 -2014 — Amending KMC 22.05.110 — Determination as to Need for Public Use, to Provide for Exceptions to the Requirement that Council Consider Acquisition and Disposal of Right -of -Ways and Easements by Ordinance for Plats and Vacations. 4. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET ON 12/17. *Ordinance No. 2803 -2014 — Amending Chapter 4.25 — Uniform Plumbing Code, to Adopt the 2012 Edition of the Uniform Plumbing Code, as Amended by the State of Alaska with Local Administrative Amendments, which Code also Incorporates the Uniform Swimming Pool, Spa and Hot Tub Code and the Uniform Solar Energy Code. 5. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET ON 12/17. *Ordinance No. 2804 -2014 — Increasing Estimated Revenues and Appropriation in the Personal Use Fishery Fund and Authorizing Budgetary Transfers in that Fund for Remaining FY2015 Projected Expenditures. 6. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET ON 12/17. *Ordinance No. 2805 -2014 — Accepting and Appropriating Supplemental Grant Funding from the Federal Aviation Administration and from the State of Alaska for the Airfield Marking Project. Kenai City Council Meeting Page 2 of 4 December 3, 2014 7. INTRODUCED BY THE CONSENT AGENDA/PUBLIC HEARING SET ON 12/17. *Ordinance No. 2806 -2014 — Increasing Estimated Revenues and Appropriations by $66,847 in the Airport Fund and in the Airport Improvement Capital Project Fund and Redirecting Previously Appropriated Amounts from Completed Airport Projects or Projects with Excess Airport Matching Funds for the Small Taxiways and Aircraft Tie Down Rehabilitation Project. 8. APPROVED UNANIMOUSLY. Action /Approval — Council Confirmation to Appoint James Glendening to the Planning and Zoning Commission. 9. CURRENT CONTRACT EXTENDED UNTIL 1131115. Action /Approval — Approving an Employment Agreement between the City of Kenai and City Clerk Sandra Modigh. H. COMMISSION /COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks and Recreation Commission 6. Planning and Zoning Commission 7. Beautification Committee 8. Mini -Grant Steering Committee REPORT OF THE MAYOR J. ADMINISTRATION REPORTS 1. City Manager 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 — Discussion and Negotiation of the City Clerk's Employment Agreement, a Matter of which the Immediate Knowledge would Clearly have an Adverse Effect Upon the Finances of the City and a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(1)(2)]. M. PENDING ITEMS — None N. ADJOURNMENT Kenai City Council Meeting December 3, 2014 INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review. 2. Notification of the Renewal of the Alaska State Elks Association Gaming Permit. The agenda and supporting documents are posted on the City's website at www.kenai.city. 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 -8231. Kenai City Council Meeting Page 4 of 4 December 3, 2014 DECEMBER 3, 2014 CITY COUNCIL MEETING REQUESTED ADDITIONS TO THE PACKET: ITEM: REQUESTED BY: F.1 Special Use Permit between the City and Hilcorp Alaska, LLC • Special Use Permit and Memorandum City Manager F.2 Consent to Sublease between Dan O. Pitts and Hilcorp Alaska Commercial Sublease Agreement and Memorandum City Manager "'Villaye with a Past, C# with a Future' 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 II� Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 iI II 1992 MEMOO TO: City Council FROM: Rick Koch DATE: December 2, 2014 SUBJECT: Unfinished Business, Item F.1, Special Use Permit Between the City of Kenai and Hilcorp Alaska, LLC for Parking of 37 Non - Commercial Passenger Vehicles in Designated Areas at the Kenai Municipal Airport. The purpose of this correspondence is to recommend Council approval of the above referenced Special Use Permit. Please find attached an amended Special Use Permit to replace the permit in the Council packet. The changes to the permit are as follows: 1. Leave blank the commencement date. 2. Amend the ending date from October 31, 2015 to August 31, 2015 3. Amend the monthly fee from $4,000 to $2,158.33 The change in the ending dates recognizes the date on which Administration anticipates recommending an increase to the fee for annual parking permits at the Kenai Municipal Airport. The change in the monthly fee recognizes the annual parking permit fee as published in the City of Kenai Schedule of Rates, Charges and Fees (page 2 of 12 attached). Thank you for your attention in this matter. If you have any questions, please contact me at your earliest convenience. City of Kenai Schedule of Rates, Charges and Fees Page 2 of 12 Current Fee KMC Section Fee Description Amount AIRPORT FEES - Continued Vehicle Parking Fees at Terminal -short term 0 - 2 hours FREE -24 hours $ 7.00 - annual permit $ 700.00 annual parking permit w /electric $ 1,000.00 Vehicle Parking Fees at GA Lot - calendar day - $ 3,00 - annual permit $ 420.00 Business Activity & Airport Access Permit - mechanic access (per each) $ 50.00 - fueling access (annual) $ 100.00 - dispensing fee (per gallon) $ 0.02 -water extraction access (annual) $ 100.00 - non - tenant use of basin parking apron $ 75.00 -float plane parking apron (annual) $ 25.00 -Deposit/replacement proximity card fee (each) $ 100.00 - Catering /mobile food service $ 50.00 Commercial Turn Fees -turn fee (narrow body - (1 aisle) $ 200.00 -turn fee (regional 50 - 99 seats) $ 150.00 -turn fee (commuter - fewer than 50 seats) $ 100.00 Helicopter Landing Fees -Per Landing $ 25.00 Other Fees -Taxi cab (per vehicle per pickup) $ 1.00 - Terminal building key replacement (per key) $ 10.00 - Aircraft ramp rental fee (per square fool per year) $ 1.31 ANIMAL CONTROL 3.05.100 (a) Kennel Facility $ 102.00 3.05. 100 (b) Dog License - Sterilized Dog $ 10.20 Dog License - Non - sterilized Dog $ 30.60 Lost License Replacement $ 2,04 3.05.100 (c) (1) First Impoundment within 12 months- Dog $ 51.00 First Impoundment within 12 months- Cat $ 15.30 3.50.100 (c) (2) Second Impoundment within 12 months- Dog $ 71.40 Second Impoundment within 12 months- Cat $ 30.60 3.05.100 (c) (3) Subsequent Impoundment within 12 months- Dog $ 102.00 Subsequent Impoundment within 12 months- Cat $ 40.80 3.05.100 (c) (4) Boarding Fee Animal 15lbs or less - Per Day $ 20.40 Boarding Fee Animal more than 15lbs - Per Day $ 35.70 3.05.100 (c) (5) Dangerous Animal Impoundment $ 102.00 3.25.060 (c) Veterinarian Service - Dog Spaying or Neutering $ 91.80 Veterinarian Service - Cat Spaying $ 81.60 Veterinarian Service - Cat Neutering $ 61.20 Veterinarian Service - Rabies Vaccination $ 20.40 N/A Animal Waiver Fee - Dog $ 15.30 Animal Waiver Fee - Puppy /Cat $ 10.20 Animal Waiver Fee - Kitten $ 5.10 N/A Adoption Fee $ 15.30 Page 2 of 12 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to Hilcorp Alaska, LLC ( Permittee), whose address is P.O. Box 244027, Anchorage, Alaska 99524 -4027 a Special Use Permit for Parking at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the exclusive right to use those areas shown in the attached diagram (Exhibit A) for the uses identified in this Permit. 2. Term. The term of this Permit shall be for one year commencing on , 2014, and ending on August 31, 2015. Regardless of the date of signature, this Permit shall be effective as of November 1, 2014. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $2,158.33 for 37 parking spaces, plus applicable sales tax. The Permitte may use additional parking spaces in the same general area during employee "change outs." B. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent (10 %) per annum, and penalty of ten percent (10 %) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. 4. Use. City authorizes Permittee's exclusive use of the Premises for the following purpose(s): Parking of 37 non - commercial passenger vehicles in the designated areas shown in Exhibit A with larger numbers of vehicles only during_ personnel "chan eg outs." Additional parking may provided as needed and available. Special Use Permit Hilcorp (Parking) Page I of 4 Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time. Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. 5. Assumption of Risk. Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 6. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold 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 negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airport, and/or Permittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 7. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 8. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Special Use Permit Hilcorp (Parking) Page 2 of 4 9. Compliance with Law /Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. 10. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 11. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 12. No Joint Venture. 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 or elsewhere at the Kenai Municipal Airport. 13. 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. 14. Personal Property. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit 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 storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personal property of Permittee or of its customers. 15. Termination; Default. This Permit may be terminated by either parry hereto by giving ninety (90) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than ninety (90) days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. Special Use Permit— Hilcorp (Parking) Page 3 of 4 CITY OF KENAI By: Rick R. Koch Date STATE OF ALASKA ) ) sS. THIRD JUDICIAL DISTRICT ) HILCORP ALASKA, LLC. THIS IS TO CERTIFY that on this day of 2014, the foregoing instrument was acknowledged before me by RICK R. 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 ) THIS IS TO CERTIFY that on this _ day of , 2014, the foregoing instrument was acknowledged before me by, on behalf of Hilcorp Alaska, LLC. Notary Public for Alaska My Commission Expires: Approved as to form: Scott Bloom City Attorney YADept - Airport\SUP\2014 1024 Hilcorp Parking SUP.docx Special Use Permit — Hilcorp (Parking) Page 4 of 4 u IlVillaye with a Past, C# with a Future' 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Ewe Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 IIII�I 1997 MEMO: TO: City Council 01FROM: Rick Koch DATE: December 2, 2014 SUBJECT: Unfinished Business, Item F.2, Consent to Sublease between Dan O. Pitts and Hilcorp Alaska for Lot 2A1, FBO Subdivision, South Addition No. 2 The purpose of this correspondence is to recommend Council approval of the above referenced sublease with one modification of the language contained in the attached sublease. Paragraph 3., Use, first sentence states "Sublessee shall use the Premises for parking through the Kenai Airport, and any legal uses related thereto." The meaning of the portion of that sentence, "through the Kenai Airport" or "any legal uses related thereto" is unclear. Administration recommends Council approval of the sublease conditioned upon the first sentence of paragraph 3 be replaced with the following: " Sublessee shall use the premises for parking and for uses consistent with the lease between Dan O. Pitts and the City of Kenai." Thank you for your attention in this matter. If you have any questions, please contact me at your earliest convenience. COMMERCIAL SUBLEASE AGREEMENT This Commercial Sublease "Agreement" dated September 22, 2014 for reference purposes, is made and entered into by and between Dan O. Pitts ( "Sublessor "), an individual whose address is P.O. Box 1916, Soldotha, AK 99669, and Hilcorp Alaska ( "Sublessee "), a Delaware corporation with offices located at 3800 Centerpoint Drive, Suite 1400, Anchorage, AK 99503, effective September 22, 2014 (`Effective Date ") IRDialY714 &I A. Sublessor is the lessee of that certain lease from the City of Kenai, as Lessor, and Sublessor, as Lessee, dated [date], and effective from [date] to [date], for real property ( "Premises ") described as follows: Lot 2A1, FBO Subdivision, South Addition No. 2, as shown in Plat 86 -186, "FBO Subdivision South Addition No. 2," dated September 4, 1986, Kenai Recording District, and located at 403 North Willow, Kenai, AK 99611, as shown in Exhibit A to this Agreement B. Sublessor desires to sublease the Premises to Sublessee, and Sublessee desires to sublease the Premises from Sublessor, pursuant to the terms of this Agreement. TERMS: 1. SUBLEASED PREMISES In consideration of the rents, terms, provisions and covenants of the Sublease, Sublessor hereby Subleases and demises to Sublessee the Premises. 2. TERM Subject to and upon the conditions set forth herein, the term of this Sublease shall commence on September 22, 2014, or on delivery and acceptance of the Premises as set forth below, and shall continue through August 31, 2015. 3. USE Sublessee shall use the Premises for parking through the Kenai Airport, and any legal uses related thereto. Sublessor represents and warrants to Sublessee that Sublessor shall receive any and all approvals for the above referenced use from any City, Borough, State or political subdivision and provide evidence of such approvals to Sublessee prior to Sublessee's occupancy. Sublessee shall not use the Premises for any other uses or in any manner, which shall cause the cancellation of any insurance policy covering the Premises. 4. DELIVERY AND ACCEPTANCE OF PREMISES The Premises shall be delivered to Sublessee in tenantable condition, in good order and repair, and free of violations of any health, safety, fire or other statutes and regulations governing the Premises and its use. Sublessor shall: (1) remove vegetation in the graveled parking area and grade the Premises to be level and suitable for parking; (2) upon the request of Sublessee, erect a chain link fence around the Premises with gate(s) for ingress and egress; and (3) remove inoperable vehicles from the Premises. Sublessor warrants that all Sublessee improvements built or caused to be built by Sublessor will be built in compliance with all federal, state and local rules, laws and regulations, including but not limited to Americans with Disabilities Act (ADA), all building and safety codes in effect as of the date the building permit is obtained allowing their construction and that to the best of Sublessor's knowledge, such improvements are in compliance with all current rules, laws, regulations, building and safety codes. In the event the improvements for the Sublessee are built or caused to be built by Sublessor are not built in compliance with all current rules, laws, regulations, building and safety codes in effect as of the date the building permit is obtained allowing their construction, Sublessor shall at its sole expense make those repairs to the improvements that are necessary to cause them to be in compliance with all current rules, laws, regulations, building and safety codes in effect as of the date of the violation, and if the repairs render the Premises untenantable the rent shall be prorated based on the amount of time the repairs take and the amount of space which is untenantable. Notwithstanding the foregoing, Sublessor shall be responsible for the repair of latent defects in the Sublessee improvements installed by or caused to be installed by Sublessor for one (1) year following the Commencement Date of this Sublease. After one year, upon Sublessee's written request, Sublessor agrees to assign to Sublessee all contractor warranties relating the Sublessee improvements, to the extent assignable. Further, notwithstanding the foregoing, Sublessor covenants that on the date of execution of this Sublease, the Premises is zoned to will meet the use requirements as outlined in Article 3 hereof. 5. RENT For and in consideration of the Premises and the performance of Sublessor's obligation hereunder, beginning as of the commencement date as set forth in the Commencement Certificate, Sublessee shall pay /mo which includes applicable sales tax on or before the first day of each month in advance. Any rent payment received after the 150' of the month will incur a 10% ($350.00) late fee. Rent shall be paid by Automated Clearing House transfer to the following account: Dan O. Pitts First National Bank Alaska ABA Number 125200060 Account Number 24101180 Sublessor may designate a different account in accordance with the notice paragraph of this Sublease. Rental for any portion of a month at the beginning or end of this Sublease shall be apportioned by dividing the monthly rental figure by the number of days of that month and multiplying the result by the number of days during such month which the Sublessee rents the Premises hereunder. 6. SERVICES TO BE PERFORMED BY SUBLESSOR Sublessor shall maintain and repair, and keep in good operating condition, all parking lots, and privately -owned access roads. Sublessor is responsible for timely snow plowing and sanding, and grading as necessary. 7. CONDEMNATION In the event that the Premises shall be wholly or partially condemned or taken by eminent domain, this Sublease shall terminate upon the date of condemnation or taking by eminent domain or upon the date possession is required by the condemning authority, whichever is later. In the event of a partial condemnation or taking of the Premises, Sublessee may, at its option, continue to sublease the remaining portion of the Premises, upon such terms and conditions as Sublessor and Sublessee may thereafter agree. In any proceeding related to condemnation or taking of the Premises by eminent domain, Sublessee may appear and present its claims for costs incurred in relocating, the loss of any fixture, improvement or other property of Sublessee, and the loss of its Subleasehold interest in the Premises. 8. ASSIGNMENT, SUBLETTING Sublessee shall have the right to assign or sub - sublease all or any portion of the Premises on such terms, as Sublessee may in its discretion deem prudent, so long as the prior written consent of Sublessor AND PRIOR WRITTEN CONSENT OF THE CITY OF KENAI is obtained. No such assignment or subletting shall release Sublessee of its obligations hereunder, unless Sublessor so agrees in writing. In the event of any permitted assignment or subletting hereunder, Sublessor agrees that it will not negotiate or enter into any agreement with the assignee or Sublessee for the extension or renewal of this Sublease, or the exercise of any option to extend or renew this Sublease, unless Sublessor first agrees to release Sublessee from all obligations under this Sublease for any extended or renewed periods. 9. SURRENDER OF PREMISES Upon termination of this Sublease, Sublessee shall vacate the Premises and return it in as good condition as received, the elements, casualty, acts of God, and ordinary wear and tear excepted. Sublessee shall have the right to remove all articles of personal property in the Premises and any trade fixtures, the removal of which will not cause substantial damage to the Premises, and Sublessee shall make any repairs necessitated by such removal. 10. INSURANCE (a) Sublessee, at its cost, shall maintain bodily injury and property damage liability insurance with a combined single limit in the amount of $1,000,000.00 insuring Sublessee and its authorized representative's liability arising out of or in connection with Sublessee's use or occupancy of the Premises. Sublessor and the City of Kenai shall be named as an additional insureds, as respects operations at the Premises, and the policy shall contain cross - liability endorsements. Sublessee shall be responsible for loss or damage to Sublessee's personal property. All insurance required to be provided by Sublessee under this Sublease shall provide reasonable notice of cancellation to Sublessor before cancellation of coverage of any policy. Sublessee shall deliver a certificate of insurance representing the above insurance coverage to the Sublessor within thirty (30) days of execution of this Sublease. 11. LIABILITY (a) Sublessee shall indemnify, defend and hold Sublessor AND THE CITY OF KENAI harmless from and against any loss liability, claim, suit, reasonable fees, reasonable costs, reasonable expenses, including, without limitation, reasonable attorneys fees, and damages arising out of (1) any negligent or intentional act or omission of Sublessee, or of Sublessee's employees, contractors, agents, servants, guests, invitees or officers; (2) any violation of any federal, state or local law, act, rule, ordinance or regulation by Sublessee or by Sublessee's employees, contractors, agents, servants, guests, invitees or officers; or (3) any breach of this Sublease or any provisions thereof by Sublessee or by Sublessee's employees, contractors, agents, servants, guests, invitees or officers, unless such loss, liability, claim, suit, reasonable fees, reasonable costs, reasonable expenses, including, without limitation, reasonable attorneys fees, and damages also arises, in whole or in part, out of any negligent or intentional act or omission of, or any breach of this Sublease or any provision thereof by, Sublessor, or Sublessor's employees, contractors, agents, servants, guests, invitees or officers, or out of any violation of any federal, state, or local law, act, rule, ordinance or regulation by Sublessor or Sublessor's employees, contractors, agents, servants, guests, invitees or officers. (b) Sublessor shall indemnify, defend and hold Sublessee harmless from and against any loss, liability, claim, suit, reasonable fees, reasonable costs, reasonable expenses, including, without limitation, reasonable attorneys fees, and damages arising out of. (1) any negligent or intentional act or omission of Sublessor, or of Sublessor's employees, contractors, agents, servants, guests, invitees or officers; (2) any violation of any federal, state or local law, act, rule, ordinance or regulation by Sublessor or by Sublessor's employees, contractors, agents, servants, guests, invitees or officers; (3) any breach of this Sublease or any provision thereof by Sublessor or by Sublessor's employees, contractors, agents, servants, guests, invitees or officers; or (4) any pre- existing condition, contamination or defect on, under, in or about the Premises. (c) Any party's duty or obligation to defend the other party shall be commenced promptly and performed by competent counsel chosen to the reasonable satisfaction of the defended party. 12. WAIVER OF SUBROGATION Sublessor and Sublessee, notwithstanding any provisions of this Sublease to the contrary, waive any rights of recovery against the other for any loss or injury against which the waiving party is protected by insurance, so long as the applicable policy is not thereby prejudiced and the other party pays any resulting excess premium, reserving, however, any rights with respect to any excess of loss or injury over the amount covered by insurance. 13. COMPLIANCE WITH LAWS Sublessee and Sublessor shall comply with all of the laws and requirements of municipal, state and Federal governments pertaining to the Property, Premises or the use thereof. Sublessee shall comply with all rules and regulations of the Kenai Municipal Airport. Sublessee agrees to observe the same use, environmental, and default standards as does the Sublessor as set forth in Exhibit `B ". 14. SUBLESSOR'S WARRANTIES AS TO ENVIRONMENTAL SAFETY (a) Sublessor warrants and represents that any use, storage, treatment or transportation of Hazardous Substances which has occurred in or on the Premises prior to the date hereof has been in compliance with all applicable Federal, state and local laws, regulations and ordinances. Sublessor additionally warrants and represents that no release, leak, discharge, spill, disposal or emission of Hazardous Substances as of the date hereof. (b) Sublessor agrees to indemnify and hold harmless the Sublessee from any and all claims, damages, fines, judgements, penalties, costs, liabilities or losses (including, without limitation, any and all sums paid for settlement of claims, attorneys' fees, consultant and expert fees) arising during or after the Sublease Term from or in connection with the presence or suspected presence of Hazardous Substances at, in, on or below the Premises, unless the Hazardous Substances are present solely as a result of negligence, will misconduct or other acts of Sublessee, Sublessee's agents, employees, contractors or invitees. Without limitation of the foregoing, this indemnification shall include any and all costs incurred due to any investigation of the site or any clean -up, removal or restoration mandated by a Federal, state or local agency or political subdivision, unless the Hazardous Substances are present solely as a result of negligence, willful misconduct or other acts of Sublessee, Sublessee's agent, employees, contractors or invitees. This indemnification shall specifically include any and all costs due to Hazardous Substances which flow, diffuse, migrate or percolate into, onto or under the Premises prior to, during, and after the Sublease Term commences and/or which arises out of any act or omission of any prior, concurrent or subsequent Sublessee. 15. TAXES Sublessor, at Sublessor's sole cost and expense, shall be responsible for timely payment of all property taxes and assessments related to the Premises. Applicable sales tax shall be collected from Sublessee and paid to the Kenai Peninsula Borough by the Sublessor. 16. ALTERATIONS AND LIENS The Sublessee shall not make or permit any other person to make any alterations to the Premises or to any improvement thereon or facility appurtenant thereto without the prior written consent of the Sublessor, which approval shall not be unreasonably withheld. Notwithstanding the foregoing, Sublessee may make any non- structural alterations to the Premises with Sublessor's consent so long as any such alteration does not exceed Five Thousand Dollars ($5,000) in costs. The Sublessee shall keep the Premises free and clear from any and all liens, claims and demands for work performed, materials furnished, or operations conducted thereon at the instance or request of Sublessee. Sublessor and Sublessee agree that all alterations and improvements on the Premises shall require prior written approval of the City of Kenai. 17. INSPECTION BY SUBLESSOR The Sublessee shall permit the Sublessor or the Sublessor's agents, representatives or employees to enter the Premises at all reasonable times and during business hours, after 24 hours notice to Sublessee, for the purpose of inspecting the Premises and for the purpose of doing other lawful acts required hereunder of that may be necessary to protect the Sublessor's interest in the Premises, except that no notice is required in the event of an emergency. Sublessor agrees that any such entry shall not unreasonable disrupt Sublessee's business activities. Sublessor fiuther agrees that during such entry, Sublessor and Sublessor's agents, representatives or employees shall recognize and abide by any safety rules or measures imposed by Sublessee. 18. DEFAULT OF SUBLESSEE Default by Sublessee under this Sublease shall include, but shall not be limited to, the following: (a) Sublessee shall fail to pay any installment of rent due, and such failure shall continue for a period of fifteen (15) days following written notice from Sublessor. (b) Sublessee shall fail to perform any of its other obligations under this Sublease, and such failure shall continue for a period of fifteen (15) days following written notice from Sublessor specifying the nature of the default, unless such default cannot be fully cured within said period and Sublessee promptly commences such cure and continues with due diligence until completion. (c) Sublessee shall abandon the Premises and cease paying rent. (d) Sublessee shall become insolvent, or shall make a transfer in fraud of creditors, or shall make an assignment for the benefit of creditors. (e) Sublessee shall file or there shall be filed against Sublessee a petition in bankruptcy or reorganization or for an arrangement for the benefit of creditors under any section or chapter of the United States bankruptcy laws or under any similar law or statute of any State and such petition is not withdrawn or denied within one hundred twenty (120) days from the date of filing. (f) A receiver or trustee shall be appointed for all or substantially all of the assets of Sublessee and shall not be removed within one hundred twenty (120) days of appointment. 19. SUBLESSOR'S REMEDIES In the event of a default by Sublessee under this Sublease, Sublessor may, in addition to any other right or remedy which Sublessor may have at law or equity: (a) Continue this Sublease in effect by not terminating the Sublessee's right to possession of the Premises, in which event the Sublessor shall be entitled to enforce all of its rights and remedies under this Sublease including the right to recover the rent specified in this Sublease as it becomes due notwithstanding any contrary law, rule, stature or regulation, Sublessor shall be under the duty to mitigate its loses, including using its best efforts to relet the Premises, or part of it, and Sublessor expressly waives any such contrary law, rule, statute or regulation; or (b) Terminate this Sublease, in which event Sublessee shall surrender the Premises to Sublessor, and if Sublessee fails to do so, Sublessor may dispossess Sublessee in any reasonable manner permitted by law. (c) After due legal process, to enter upon and take possession of the Premises and expel and remove Sublessee and any other person who may be occupying the Premises or any part thereof, and to relet the Premises, which Sublessor shall use its best efforts to do and to otherwise mitigate its losses. Sublessee agrees to pay upon demand the amount of any deficiency between the amount of rent due and payable hereunder and any reasonable amounts which Sublessor could or should have received through reletting, less Sublessoe's actual and reasonable costs incurred in repossessing and reletting the Premises. 20. DEFAULT BY SUBLESSOR Default by Sublessor under this Sublease shall include, but not be limited to, the following: Sublessor shall fail to perform any of its obligations under this Sublease, and such failure shall continue for a period of fifteen (15) days following written notice from Sublessee specifying the nature of the default, unless such obligation cannot be fully performed within said period and Sublessor begins performance and continues with due diligence until completion. In the event the default if of such nature that the Premises are as a result not reasonably fit for Sublessee's business purposes, then Sublessor shall have two (2) days, following notice from Sublessee, to either remedy the default or to provide reasonable temporary means whereby the Premises are usable by Sublessee while the default is being cured, during which time the rent shall be abated in proportion to the degree of unusability of the Premises. In no event shall such default remain uncured beyond a reasonable time. 21. SUBLESSEE'S REMEDIES In the event of default by Sublessor, Sublessee may, in addition to any other right or remedy at law or equity: (a) Terminate this Sublease without further obligation on the part of Sublessee hereunder; (b) Remedy, or cause to be remedied, any default of Sublessor at the sole cost and expense (not to exceed in any one instance the equivalent of two (2) months rent hereunder) of Sublessor and to withhold or offset amounts paid or incurred thereby from amounts owing or to be owed to Sublessor; provided, however, Sublessee shall have no obligation to remedy any default of Sublessor. 22. ATTORNEY FEES In the event either party commences any action or proceeding under this Sublease to enforce any right or remedy hereunder, the prevailing party shall be entitled to recover its reasonable costs and attorney's fees. 23. NOTICES AND BILLS All written notices required or permitted hereunder shall be delivered in person to the other party, or mailed First Class, postage fully prepaid, to the parties at the addresses set forth hereinafter or to such other address as either party may hereafter designate in writing and deliver as provided in this Paragraph. Sublessor: Dan O. Pitts Sublessee: Hilcorp_Alaska, LLC P.O. Box 1916 3800 Centerpoint Drive, Suite 1400 Soldoma, AK 99669 Anchorage, AK 99503 Attention: Land Manager All bills and invoices from Sublessor to Sublessee shall be delivered or mailed to Sublessee at the Premises or at such address as Sublessee may designate to Sublessor in accordance with the notice provisions of this paragraph. 24. SUBORDINATION Notwithstanding anything to the contrary contained herein, this Sublease shall not be subordinate to the lien of Sublessor's financing unless the holder thereof first executes an instrument which shall contain on the part of such holder, an agreement in substance that such holder shall recognize Sublessee's rights under this Sublease, shall not cut off or terminate this Sublease through foreclosure of the documents securing Sublessor's financing and Sublessee shall not be disturbed in its possession and quiet enjoyment of the Premises. 25. NON - WAIVER The failure of either party to declare any default immediately upon the occurrence thereof, or delay in taking action in connection therewith, shall not constitute a waiver of such default, and that party shall have the right tot declare any such default at any time while such default remains uncured. The waiver by either party of any breach of any provision of this Sublease shall not be deemed to be a waiver of such provision or any subsequent breach of the same or any other provision, term, covenant or condition herein contained. 26. SUCCESSORS AND ASSIGNS The covenants and conditions herein contained shall, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of all of the parties hereto, and all of the parties hereto shall be jointly and severally liable hereunder. 27. WAIVER Sublessee shall not commit, or suffer to be committed, any waste upon the Premises. 28. CLAUSE HEADINGS The clause headings in this Sublease are for convenience only and shall not be deemed to affect, qualify, amplify, add to, or subtract from the contents of the clauses which they reference. 29. ENTIRE AGREEMENT; MODIFICATION The parties have incorporated in this Sublease their entire understanding, and neither has made or relied upon any representations, warranties, promises, covenants or undertakings other than those expressly set forth herein. No modification of any term or condition contained herein shall be effective unless the same is in writing and executed by authorized representatives of both parties to this Sublease. 30. FORCE MAJEURE Neither party shall be liable to the other for breach of this Sublease if the breach is caused by circumstances beyond its reasonable control, including, without limitation, act of God; fire, flood, earthquake or other natural disaster; war, riot or civil disobedience; governmental action or inaction; and strikes, lockouts, picketing or other labor dispute. 31. PARTIAL INVALIDITY Wherever possible each provision of this Sublease shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Sublease shall be prohibited by or invalid under any applicable law, as determined by a court of competent jurisdiction, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions of this Sublease. 32. CONSENTS AND APPROVALS Wherever the consent, approval or expression of satisfaction of either party is required hereunder, such consent, approval or expression of satisfaction shall not be unreasonably withheld or delayed, and no cost, charge or other consideration shall be exacted from the party seeking the consent, approval or satisfaction in order for it to be obtained. 33. HOLDOVER In the event that Sublessee does not vacate the Subleased Premises upon the expiration or termination of this Sublease, Sublessee shall hold Premises as a Sublessee from month to month with all terms and provisions of this Sublease remaining applicable during that period. 34. QUIET POSSESSION AND NON - DISTURBANCE If Sublessee pays the rent and complies with all other terms of this Sublease, Sublessee may occupy and enjoy the Premises for the full Sublease term, subject to the provisions of this Sublease. In the event of foreclosure or any enforcement of any such mortgage, the rights of the Sublessee hereunder shall expressly survive and this Sublease shall in all respects continue in full force and effect, provided, however, that the Sublessee shall fully perform all its obligations hereunder and attom to the purchaser. Sublessor shall cause the purchaser of Sublessor's interest in the Premises to enter into a non - disturbance agreement with Sublessee. IN WITNESS WHEREOF, the parties have entered into this Sublease on the dates shown below EXECUTED BY SUBLESSEE, this 0 Title: EXECUTED BY SUBLESSOR, this day Title: COMMERCIAL SUBLEASE AGREEMENT Exhibit A Plat 86-186 FBO Subdivision South Addition No. 2 September 4, 1986 A w yP 0 COMMERCIAL SUBLEASE AGREEMENT Exhibit B Kenai Municipal Airport Rules and Regulations See hltp:Hwvtw.geode.us/codes/ke nai/ 101 AGENDA KENAI CITY COUNCIL — REGULAR MEETING DECEMBER 3, 2014 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 http://www.kenai.citY A. CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Election of Vice Mayor 4. Agenda Approval 5. 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) C. UNSCHEDULED PUBLIC COMMENTS (Public comment limited to three (3) minutes per speaker; thirty (30) minutes aggregated) D. PUBLIC HEARINGS 1. Ordinance No. 2800 -2014 — Accepting and Appropriating a Donation from Hilcorp Energy Company to Assist with the Annual Kenai Senior Center ThanksgivingDinner .................................................... ............................Pg. 5 2. Ordinance No. 2801 -2014 — Accepting and Appropriating a Grant from the State of Alaska Library for Employee Travel and Training ........................ Pg. 7 3. Resolution No. 2014 -69 — Adopting an Alternative Allocation Method for the FY15 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in FMA 14: Cook Inlet ... ............................... Pg. 11 4. Resolution No. 2014 -70 — Amending Article IV, Rents and Fees of the Lease Form for Airport Reserve Lands between the City of Kenai and Legacy Electric, LLC for Lot 2, Block 1, General Aviation Apron, Located within the Airport Reserve.................................................................. ............................... Pg. 15 E. MINUTES 1. *Regular Meeting of November 19, 2014 ................. ............................... Pg. 53 2. *Work Session Notes of November 20, 2014 .......... ............................... Pg. 61 F. UNFINISHED BUSINESS 1. Action /Approval — Special Use Permit Between the City Of Kenai and Hilcorp Alaska, LLC for Parking of 37 Non- Commercial Passenger Vehicles in Designated Areas at the Kenai Municipal Airport. [Clerk's Note: At its November 51h meeting, Council postponed this item to the December 3rd.] . Pg. 63 2. Action /Approval — Consent to Sublease between Dan O. Pitts and Hilcorp Alaska for Lot 2A1, FBO Subdivision, South Addition No. 2. [Clerk's Note: At its November 5" meeting, Council postponed this item to the December 3rd.] G. NEW BUSINESS 1. *Action /Approval — Bills to be Ratified .................. ............................... Pg. 73 2. *Action /Approval — Purchase Orders Exceeding $15,000 ..................... Pg. 75 3. *Ordinance No. 2802 -2014 — Amending KMC 22.05.110 — Determination as to Need for Public Use, to Provide for Exceptions to the Requirement that Council Consider Acquisition and Disposal of Right -of -Ways and Easements by Ordinance for Plats and Vacations .............................. ............................Pg. 77 4. *Ordinance No. 2803 -2014 — Amending Chapter 4.25 — Uniform Plumbing Code, to Adopt the 2012 Edition of the Uniform Plumbing Code, as Amended by the State of Alaska with Local Administrative Amendments, which Code also Incorporates the Uniform Swimming Pool, Spa and Hot Tub Code and the Uniform Solar Energy Code ..................................... ............................... Pg. 81 *Ordinance No. 2804 -2014 — Increasing Estimated Revenues and Appropriation in the Personal Use Fishery Fund and Authorizing Budgetary Transfers in that Fund for Remaining FY2015 Projected Expenditures... Pg. 85 6. *Ordinance No. 2805- 2014 — Accepting and Appropriating Supplemental Grant Funding from the Federal Aviation Administration and from the State of Alaska for the Airfield Marking Project ................................ ............................... Pg. 99 *Ordinance No. 2806 -2014 — Increasing Estimated Revenues and Appropriations by $66,847 in the Airport Fund and in the Airport Improvement Capital Project Fund and Redirecting Previously Appropriated Amounts from Completed Airport Projects or Projects with Excess Airport Matching Funds for the Small Taxiways and Aircraft Tie Down Rehabilitation Project.......... Pg. 103 Kenai City Council Meeting Page 2 of 4 December 3, 2014 8. Action/Approval — Council Confirmation to Appoint James Glendening to the Planning and Zoning Commission .......................... ............................... Pg. 107 9. Action/Approval — Approving an Employment Agreement between the City of Kenai and City Clerk Sandra Modigh. H. COMMISSION /COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks and Recreation Commission 6. Planning and Zoning Commission 7. Beautification Committee 8. Mini -Grant Steering Committee REPORT OF THE MAYOR ADMINISTRATION REPORTS 1. City Manager 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 — Discussion and Negotiation of the City Clerk's Employment Agreement, a Matter of which the Immediate Knowledge would Clearly have an Adverse Effect Upon the Finances of the City and a Subject that Tends to Prejudice the Reputation and Character of the City Clerk [AS 44.62.310(C)(1)(2)]. M. PENDING ITEMS — None N. ADJOURNMENT INFORMATION ITEMS 1. Purchase Orders between $2,500 and $15,000 for Council Review.......... Pg. 109 2. Notification of the Renewal of the Alaska State Elks Association Gaming Permit......................................................................... ............................... Pg. 111 The agenda and supporting documents are posted on the City's website at www.kenai.city. Copies of resolutions and ordinances are available at the City Clerk's Kenai City Council Meeting Page 3 of 4 December 3, 2014 [PAGE LEFT BLANK INTENTIONALLY] ►A Suggested by: Administration CITY OF KENAI NO. 2500 -2014 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A DONATION FROM HILCORP ENERGY COMPANY TO ASSIST WITH THE ANNUAL KENAI SENIOR CENTER THANKSGIVING DINNER. WHEREAS, annually the Kenai Senior Center host a Thanksgiving Dinner that is open to seniors from all over the Peninsula; and, WHEREAS, the City has received a donation from Hilcorp Energy Services in the amount of $3,500 for the purchase of food and supplies for hosting the event; and, WHEREAS, it is in the best interest of the City of Kenai to accept and appropriate this donation for the purposes described above. Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept a donation from Hilcorp Energy Services in the amounts of $ 3,500 and to expend the donated funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that estimated revenues and appropriations be increased as follows: Senior Fund Increase Estimated Revenues: Donations $ Increase Appropriations: Congregate Meals - Operating Supplies $2,500 Home Meals - Operating Supplies 1.000 $ PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of December, 2014. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk Approved by Finance: (' Introduced: November 19„ 2014 Adopted: December 3, 2014 Effective: December 3, 2014 New Text Underlined; DELETED TEXT Page 5 of 114 ''Villaye with a Past, C# with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 � Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 illlll 1991 MEMO: n TO: Rick Koch, City Manager / FROM: Rachael S. Craig, Senior Center Director DATE: November 7, 2014 SUBJECT: $3,500 Donation for Senior Wide Thanksgiving Dinner Hilcorp Energy Company donated $3,500 and volunteer hours for the area wide Senior Thanksgiving Dinner. The Area -Wide Thanksgiving Dinner will be held on Tuesday, November 25, 2014. Area seniors will come together to celebrate Thanksgiving. Hilcorp Energy Company is sponsoring the event. This is an annual tradition that began in 1976 and has continued. The $3,500 donation will be allocated in the following: Congregate Meals — Operating Supplies $2,500 Home Meals — Operating Supplies $1,000 1 recommend the passage of this ordinance. Suggested by: Administration CITY OF KENAI NO. 2801 -2014 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING A GRANT FROM THE STATE OF ALASKA LIBRARY FOR EMPLOYEE TRAVEL AND TRAINING. WHEREAS, the Kenai Community Library has received a $412.02 grant from the State of Alaska Library for a staff member to attend the "Every Child Ready to Read" workshop; and, WHEREAS, it is in the best interest of the City of Kenai to accept and appropriate these grant funds to provide staff training that will expand and enhance the services provided to young audiences and families at the Library. Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept a grant from the State of Alaska Library in the amounts of $412.02 for staff attendance of "Every Child Ready to Read ", workshop and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: 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 Grants Increase Appropriations: Library - Transportation $412.02 $412.02 New Text Underlined; [DELETED TEXT BRACKETED] Page 7 of 114 Ordinance No. 2801 -2014 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of December, 2014. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: November 17, 2014 Adopted: December 3, 2014 Effective: December 3, 2014 New Text Underlined; [DELETED TEXT BRACKETED] Page 8 of 114 j "Villaye with a Past, C# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 - 7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 ' 1992 Ike city of KE U SKA MEMO: TO: Terry Eubank CC: Rick Koch FROM: Mary Jo Joiner DATE: 10 November 2014 SUBJECT: Interlibrary Cooperation Grant Mary White attended a workshop in October that was financed by a grant from the Alaska State Library. The workshop was "Every Child Ready to Read." Due to staffing changes in our children's department the Kenai Community Library missed the registration deadline for pre - registration. We were able to send Mary White at the last minute using funds from our travel account. I did prevail upon the State Library to consider reimbursing us for Mary's travel and hotel as they were doing for other participants. They were reluctant to commit to this as all grant funds had been accounted for, but did say that we could submit receipts and that they might find funds to reimburse us. Today 1 received a check for $412.02 to reimburse those costs. I would like to be able to place these funds back in our travel line which probably requires an Ordinance. /�'catiyc�o�� Page 9 of 114 [PAGE LEFT BLANK INTENTIONALLY] Page 10 of 114 Suggested by: Administration CITY OF KENAI RESOLUTION NO. 201469 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA ADOPTING AN ALTERNATIVE ALLOCATION METHOD FOR THE FY15 SHARED FISHERIES BUSINESS TAX PROGRAM AND CERTIFYING THAT THIS ALLOCATION METHOD FAIRLY REPRESENTS THE DISTRIBUTION OF SIGNIFICANT EFFECTS OF FISHERIES BUSINESS ACTIVITY IN FMA 14: COOK INLET. WHEREAS, AS 29.60.450 requires that for a municipality to participate in the FY15 Shared Fisheries Business Tax Program, the municipality must demonstrate to the Department of Community and Economic Development that the municipality suffered significant effects during calendar year 2013 from fisheries business activities; and WHEREAS, 3 AAC 134.060 provides for the allocation of available program funding to eligible municipalities located within fisheries management areas specified by the Department of Commerce, Community and Economic Development; and WHEREAS, 3 AAC 134.070 provides for the use, at the discretion of the Department of Community and Economic Development, of alternative allocation methods which may be used within fisheries management areas if all eligible municipalities within the area agree to use the method, and the method incorporates some measure of the relative significant effect of fisheries business activity on the respective municipalities in the area; and WHEREAS, the City Council of the City of Kenai proposes to use an alternative allocation method for allocation of FY15 funding available within FMA 14: COOK INLET in agreement with all other municipalities in this area participating in the FY15 Shared Fisheries Business Tax Program. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, the Kenai City Council by this resolution certifies that the following alternative allocation method fairly represents the distribution of significant effects during 2013 of fisheries business activity in FMA 14: COOK INLET: All municipalities share equally 50% of the allocation; all municipalities share the remaining 50% on a per capita basis. PASSED AND APPROVED BY A DULY CONSTITUTED QUORUM OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 2014. ATTEST: Sandra Modigh, City Clerk PAT PORTER, MAYOR Page 11 of 114 Villa ye with a Past, Gi with aFuture" 9 �' - FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 \the, ityaf/ Telephone: 907 - 283 -7535 ext 2211 FAX: 907 - 283 -3014 MIA y ` To: Rick Koch, City Manager ✓% (f From: Terry Eubank, Finance Director Date: November 25, 2014 Re: Resolution 2014 -69 A resolution selecting an alternate allocation method for Share Fisheries Business Tax. The City receives revenue from the State of Alaska for fish tax collected by the State in two different methods. The Department of Revenue (DOR) distributes "Raw Fish Tax ", fisheries business taxes, fishery resource landing taxes, salmon marketing tax, and other seafood taxes from licensed seafood processors, floating processors, and seafood exporters, to eligible municipalities as prescribed in AS 43.77.060. The City's FY2014 share was $202,044 and was based upon 2012 collections by the DOR. The second method the City receives fish tax revenue is through the Alaska Department of Commerce Community and Economic Development ( ADCCED). ADCCED receives 50% of the undistributed Raw Fish Tax from the DOR to distribute through a program know as the Shared Fisheries Business Tax Program. For the Cook Inlet Fisheries Management Area, which the City is a part of, the amount to be distributed in FYI is $44,538.08. Eight communities will receive a portion of that amount with the City of Kenai estimated to receive $3,210.74. There are two methods of allocation for the Shared Fisheries Business Tax. The first method involves a lengthy application process in which the applicants must show the impact to their local community of the fishing industry. Once impact is shown, half of the total amount to be distributed ($44,538.08 for FY2015) is divided equally amongst tine communities and the remaining half is distributed based upon the impact shown in their application. The second method permits all communities in Fisheries Management Area to elect an alternate method of allocation. This alternate method eliminates the lengthy community application process. Since inception of the Share Fisheries Business Tax Program in fiscal year 1992, the communities of the Cook Inlet Fisheries Management Area have selected the alternate allocation method. A resolution like 2014 -69 has been adopted every year since fiscal year 1992 and is a required step to elect the alternate allocation method. The alternate method elected by the Cook Inlet Fisheries Management Area for FYI will again include and equal distribution of one -half the total and the remaining half is distributed based upon population of the community. The eight communities in the Cook Inlet Fisheries Management Area are Anchorage, Homer, Kachemak, Kenai, Kenai Peninsula Borough, Seldovia, Seward, and Soldotna. Page 12 of 114 x m r E L O C :e C. F" u � C ^ 'v � tl u Z R L s v: O M 1 O M^ Ir CC! •O C1O �-mm M $ M � 3 N O O)M d(O iO (V fl fm R to M TmOmmwm v 1O 60(A ce 069 to) 9 M I(A v 'a� p aC M N N� C') O (wO C » M » O IS N O � v � -0 % m 11(6 O OD O (O • m 10 O0 O) M co Cl) 01 0 o m I- m O O 6 °MNMm�1 `I 2 W ((O O- 00 r N (+N CO n V (O N2 O1 O tf O N N NIA a,r M fA V M M fR N N III fH EA M N \° N mjfA fA i.04 c yi NM M M M M M M MiV 'O � ttO(O(O (O (O(Otlm.O g 0 M M M M M M M M 'm mi a m m m m m m m ml(O O N O 'N N N N N N N N ',N c N 9'fA t9 (A fA (H (ri (A Ni Nto e I N: I C m a0 0 0 O M O M (O � r 0 W � — r N m C'4 V N n m a0 1� m N M W O O M "a 0 C d Q y E N O O FU 'c E E 0 U O O m C •C O) Co O O l0 v O E 0 E 0 c U<=!2 YWU) (n Page 13 of 114 N O d lO .Q U d (0 C O m C C E Tv N m r N T 7 N O 0 0 m O 0 LO N m L 0 m Q U C E 4 s [PAGE LEFT BLANK INTENTIONALLY] Page 14 of 114 kw t Suggested by: Administration CITY OF KENAI RESOLUTION NO. 2014 -70 A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ARTICLE IV, RENTS AND FEES OF THE LEASE FORM FOR AIRPORT RESERVE LANDS BETWEEN THE CITY OF KENAI AND LEGACY ELECTRIC, LLC FOR LOT 2, BLOCK 1, GENERAL AVIATION APRON, LOCATED WITHIN THE AIRPORT RESERVE. WHEREAS, the City of Kenai passed Ordinance No. 2790 -2014 waiving certain lease provisions imposed by the Kenai Municipal Code Chapter 21.10 - Leasing of Airport Reserve Lands, and approved a non - standard form of lease for the lease of Lot 2, Block 1, General Aviation Apron, located within the Airport Reserve to Legacy Electric, LLC; and, WHEREAS, Article IV, Rents and Fees of the approved Lease allowed for the reasonable market value of work approved by the Lessor and performed by the Lessee to be applied as a credit against rent owed for a maximum period of five years; and, WHEREAS, information in a Geotechnical Investigation Report prepared by Wince - Corthell- Bryson in 2008 indicated soil conditions on the property which required removal of waste material previously buried on the site to a depth of eight feet; and, WHEREAS, during excavation of the property, it was found that waste material in some areas extended to fifteen feet requiring the additional cost of removal and backfill as well as a sewer service line requiring the additional cost of lowering the grade on approximately 80 linear feet of sewer service connection piping; and, WHEREAS, Legacy Electric performed excavation, placement of classified fill, and utility service extensions on the property in excess of the amount it could recover as a credit against rent for a period of five years; and, WHEREAS, the City Manager believes it is in the best interest of the City to extend the period in which the Lessee can receive credit for the reasonable costs of work performed under Article IV, Rents and Fees of the Lease to ten years. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, That Article IV, Rents and Fees of the Lease Form for Airport Reserve Lands between the City of Kenai and Legacy Electric, LLC for Lot 2, Block 1, General Aviation Apron, located within the airport reserve is amended to extend the period in which the Lessee can receive credit for the reasonable costs of work performed to ten years. Page 15 of 114 Resolution No. 2014 -70 Page 2 of 2 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 3rd day of December, 2014. ATTEST: Sandra Modigh, City Clerk PAT PORTER, MAYOR Page 16 of 114 6iev of /�l M MEMO: "Villaye with a Past, C# with a Frfture" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: (907) 283 -7535 / FAX: (907) 283 -3014 www.d.kenai.ak.us V TO: City Council ROM: Rick Koch, City Manager DATE: November 26, 2014 SUBJECT: Resolution No. 2014 -70 — Lease of Airport Reserve Property Lot 2, Block 1, GAA KC11, RY DmYMa LYi tl1lfr ,1111 The attached proposed Lease between the City of Kenai and Legacy Electric, LLC for the referenced Airport property located inside the Airport Reserve was approved by Ordinance No. 2790 -2014 at the September 3, 2014 City Council Meeting. Since that time, Legacy Electric has performed excavation work in anticipation of receiving a credit against future lease payments according to the Lease approved by Council. The work performed included unanticipated costs that were discovered during excavation as follows: 1. Information in a Geotechnical Investigation Report prepared in 2008 indicated soil conditions on the property would require removal of waste material previously buried on the site to a depth of eight feet, however, the waste material in some areas was found to extend to a depth of fifteen feet and required the additional cost of removal and backfill. 2. The sewer service line had been installed at such a shallow depth that sewer service could not be provided to the majority of the lease lot. This required the additional cost of lowering the grade on approximately 80 linear feet of sewer service connection piping. 3. Geotechnical conditions under a portion of the existing taxiway required the removal and replacement of asphalt, removal of unclassified excavation, and installation of classified fill and backfill. This work could not have been anticipated prior to commencement of the project. Page 17 of 114 The additional work performed results in a permanent improvement to Airport Land, which is in the best interests of the Kenai Municipal Airport. I have reviewed the invoices submitted by Legacy Electric, LLC, and with minor adjustments, find the scope and costs submitted to be reasonable and consistent with the market. cc: Derek Leichliter, Legacy Electric Attachment Page 18 of 114 f r O 3 D z -q X i m M k O 0 M .! 707 � CJ O ❑ Qo m'�Z 3 4 Teo. ^. v_ y N (D n o 3 Q y N N O O N N N 774 40"'vp A 1� I } 4W ■ J c n G J' G m fl (n p O (D /# Ob >4 0 G1 0 1` v ON Fl7 0 CD v � r� 1 ■ /# Ob >4 0 G1 0 1` v ON Fl7 0 CD v � r� 1 KENAI MUNICIPAL AIRPORT LEASE OF AIRPORT RESERVE LANDS THIS LEASE AGREEMENT entered into this day of 2014 by and between the CITY OF KENAI, ( "City ") 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794, and LEGACY ELECTRIC, LLC. ( "Lessee ") whose address is 46113 Sather Court, 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. 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 environmental matters, including littering and dumping. 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. LEASE OF AIRPORT LANDS Page t of 33 Page 20 of 114 City: Lessee: 9. KMC — the abbreviation for the Kenai Municipal 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 I 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 2, Block 1, 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 USE OF PREMISES: The City authorizes the Lessee to use the Premises for the following purposes only: T- Hangar Heated Complex 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 12 -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 10 consecutive days. The notice must state the reason for the closure LEASE OF AIRPORT LANDS City: Page 2 of 33 Lessee: Page 21 of 114 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 be 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. C. PROHIBITED USES Unless specifically authorized by this Lease or an amendment to this Lease, the following are prohibited: 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. LEASE OF AIRPORT LANDS Page 3 of 33 Page 22 of 114 City: Lessee: 3. 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. 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. Any use or activity that is prohibited by applicable law or regulation. ARTICLE IH TERM & HOLDOVER A. TERM: The initial term of this Lease is for thirty -five (35) years, beginning the 1st day of September, 2014 and ending on the 30th day of August, 2049. As long as Lessee is in compliance with all terms and conditions of this Lease (including any amendments), City ordinances, and is current on all City tax liabilities, Lessee may at Lessee's sole option extend the lease for an additional twenty (20) year term. 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. ARTICLE IV RENTS AND FEES A. RENT: The reasonable market value of work approved by Lessor and performed by Lessee with regard to clearing and grubbing, unclassified excavation, placement of classified fill LEASE OF AIRPORT LANDS Page 4 of 33 Page 23 of 114 City: Lessee: and utility service extensions on the Premises, shall be applied as a credit against rent owed for a maximum period of ten (10) years from the date clearing and grubbing, unclassified excavation, placement of classified fill and utility service extensions are completed. The rent for the Premises is $11,400.00 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 $2,400, 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 full 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. 2. 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 annum. 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) LEASE OF AIRPORT LANDS Page 5 of 33 Page 24 of 114 City: Lessee: of this Article, each time the Lessee fails to pay any rent or fee by the date required in this Lease, 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 adjustment 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: The Premises in its condition on the term 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 LANDS Page 6 of 33 Page 25 of 114 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, reimburses 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 bearing the original, notarized signature of all parties. The Lessee may submit unsigned 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 terms 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. LEASE OF AIRPORT LANDS Page 7 of 33 Page 26 of 114 City: Lessee: G. SECURITY ASSIGNMENTS AND FINANCING: 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 be 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. 3. 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 same time as the City gives notice of default to the Lessee; and LEASE OF AIRPORT LANDS Page 8 of 33 Page 27 of 114 City: Lessee: 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.. 5. 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 term 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 rent, additional rent, and covenants as this Lease; C. 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 LEASE OF AIRPORT LANDS Page 9 of 33 Page 28 of 114 City: Lessee: withholding its consent to a proposed assignment, the dispute shall be resolved by arbitration. ARTICLE VII MAINTENANCE, SNOW REMOVAL & UTILITIES A. MAINTENANCE 1. 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 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 submit 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. LEASE OF AIRPORT LANDS Page 10 of 33 Page 29 of 114 City: Lessee: 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. 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 LEASE OF AIRPORT LANDS Page I of 33 Page 30 of 114 City: Lessee: on the Airport as may be approved or designated in writing by the Airport Manager. ARTICLE IX ENVIRONMENTAL PROVISIONS A. HAZARDOUS SUBSTANCE The Lessee will conduct it business and/or operation on the Premises in 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. 2. 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. REMEDIATION 1. 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. LEASE OF AIRPORT LANDS City: Page 12 of 33 Lessee: Page 31 of 114 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 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. 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. LEASE OF AIRPORT LANDS Page 13 of 33 Page 32 of 114 City: Lessee: ARTICLE X INDEMNIFICATION & INSURANCE A. 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 harm resulting from or arising out of any acts or commission of or omission by the Lessee, his agents, employees, 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 under 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. LEASE OF AIRPORT LANDS Page 14 of 33 Page 33 of 114 City: Lessee: 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: 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 $1,000,000 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 of the Lessee's fuel handling activities. This policy must name the City as an additional insured. 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 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 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. All insurance required by this provision must provide that the City be 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 term of this Lease and upon written notice to Lessee, revise the insurance requirements required under this Lease. City's determination to LEASE OF AIRPORT LANDS Page 15 of 33 Page 34 of 114 City: Lessee: 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. 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 comply with all applicable laws, ordinances, and regulations of public authorities now or hereafter in any manner affecting the Airport, the 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: 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. LEASE OF AIRPORT LANDS Page 16 of 33 Page 35 of 114 City: Lessee: 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 terms, provisions, conditions, or parts shall continue in full force and effect as though the declaration had not been made. ARTICLE XII LEASE TERMINATION 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: 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. 3. 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. 5. 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. Failure by the Lessee to comply with any land development or permanent improvement construction 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 LEASE OF AIRPORT LANDS Page 17 of 33 Page 36 of 114 City: Lessee: 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 be 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; 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. D. REASONABLE CURE 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: 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 be reasonably completed within 30 days. The City will, at its sole discretion, determine what constitutes expeditious action and if an action cannot be LEASE OF AIRPORT LANDS Page 18 of 33 Page 37 of 114 City: Lessee: 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 the 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. G. AIRPORT CLOSURE: 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 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. LEASE OF AIRPORT LANDS Page 19 of 33 Page 38 of 114 City: Lessee: H. DISASTERS The Lessee or City may cancel this lease upon written notice to the other party if; 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 performance 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. 1. 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. J. SURRENDER ON TERMINATION: Except as provided otherwise in this Article XII, Lessee shall, on the last day of the term 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. K. Disposition of Improvements Upon Termination. (a) Permanent improvements constructed by Lessee, excluding site development materials and utility lines and connection are the Lessee's property, subject to the terms and provisions of this Lease, as long as Lease remains in effect. (b) Upon, expiration, cancellation or termination of this lease the Lesssee may elect to do one or more of the following: (1) Remove Lessee owned permanent improvements from the premises, remediate any damage, and restore the premises to a clean and neat physical condition acceptable to City within 60 days of termination of the lease. (2) Sell Lessee owned improvements to succeeding lessee, if any, and remediate any damage, and restore the premises to a clean and neat physical condition acceptable to LEASE OF AIRPORT LANDS Page 20 of 33 Page 39 of 114 City: Lessee: City within 60 days of termination of the lease. (3) Request the City sell Lessee -owned permanent improvements at a public auction and remediate any damage, and restore the premises to a clean and neat physical condition acceptable to City within sixty (60) days of termination of the lease. The City will not unreasonably deny such a request and will pay the Lessee any proceeds of the sale less the administrative costs of the public auction and any financial obligation the Lessee owes the City under the Lease. If all or a portion of the lessee owned permanent improvements do not sell at public auction, the Lessee shall, within sixty (60) days of the public auction, remove those permanent improvements days and remediate any damage, and restore the premises to a clean and neat physical condition acceptable to City. ARTICLE XHI 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 determined 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. LEASE OF AIRPORT LANDS Page 21 of 33 Page 40 of 114 City: Lessee: 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 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, terms, 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: Any inconvenience caused by public works projects in or about the Premises; and 2. 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 be construed or held to be 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 be 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. LEASE OF AIRPORT LANDS Page 22 of 33 Page 41 of 114 City: Lessee: J. INTEGRATION, MERGER, AND MODIFICATION: This Lease sets out all the terms, conditions, and agreements of the parties and supersedes any previous understandings or 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 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 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 term 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. LEASE OF AIRPORT LANDS Page 23 of 33 Page 42 of 114 City: Lessee: 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. N. SUCCESSORS IN INTEREST: This Lease shall be binding upon and shall inure to the benefit of the respective successors and assigns of the parties hereto, subject to such specific limitations on assignment as are provided for in this Lease. O. NOTICES: Any notices required by this Lease must be in writing and must be 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. LEASE OF AIRPORT LANDS Page 24 of 33 Page 43 of 114 City: Lessee: 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 permit 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 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 terms, 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 not 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 LANDS Page 25 of 33 Page 44 of 114 City: Lessee: 1. REQUIRED IMPROVEMENTS: At no cost to the City, Lessee agrees to complete land development and construction of Permanent Improvements including removal of waste material previously buried on the site and construct two 2 6 -plea unit t- hangar heated complex , by no later than September 1, 2016 with an appraised value of at least $500,000.00. 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 $500,000.00. 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 September 1, 2016. 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. FAILURE TO COMPLETE IMPROVEMENTS: If the Lessee fails to complete the required construction within the time allowed under (13)(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 b. reduce the term of the lease to a period that is consistent with the portion of the required construction timely completed. LEASE OF AIRPORT LANDS Page 26 of 33 Page 45 of 114 City: Lessee: 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. 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. 5. 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. BUILDING SETBACK: No building or other permanent structure may be constructed or placed within twenty (20) feet of any lot line of the Premises without City's prior written approval. In addition, no building or other permanent structure may be constructed or placed within N/A feet of any boundary line of the Premises which fronts on a landing strip, taxiway, or apron. LEASE OF AIRPORT LANDS Page 27 of 33 Page 46 of 114 City: Lessee: 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. 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 on 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. 11. 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 LANDS Page 28 of 33 Page 47 of 114 City: Lessee: D. SURRENDER ON TERMINATION: Lessee shall, on the last day of the term of this Lease or upon any earlier termination of this Lease, surrender and deliver upon the premises into the possession and use of City without fraud or delay in good order, condition, and repair, except for reasonable wear and tear since the last necessary repair, replacement, restoration or renewal, free and clear of all lettings and occupancies unless expressly 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, 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 $1,000.00 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. I.. 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: (i) N /A; (ii) N /A; (iii) N /A. (b) The City's total cost of the improvement construction shall not exceed $N /A without the Lessee's written concurrence. LEASE OF AIRPORT LANDS Page 29 of 33 Page 48 of 114 City: Lessee: (c) 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. (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 termination of this lease by the City. 2. ALTERNATIVE TWO — The City builds improvements before the lease is signed. (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: (i) N /A; (ii) N /A; (iii) N /A. (b) The City's total cost to construct the improvements was $N /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 (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. (d) The Lessee shall make the first reimbursement payment to the City by no later than the first anniversary of the lease term beginning date given in Article III of this Lease. The Lessee's annual reimbursement payment for LEASE OF AIRPORT LANDS Page 30 of 33 Page 49 of 114 City: Lessee: 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 WITNESS WHEREOF, the parties hereto have hereunto set their hands, the day and year stated in the individual acknowledgments below. (If Lessee is a Corporation) ATTEST: Name Title LEASE OF AIRPORT LANDS Page 31 of 33 CITY OF KENAI By: Rick R. Koch City Manager LESSEE: LEGACY ELECTRIC, LLC By: Name & Title Page 50 of 114 City: Lessee: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this _ day of 2014, Name: , Title: , of LEGACY ELECTRIC, 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 instrument on behalf of said corporation. Notary Public for Alaska My Commission Expires: STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) THIS IS TO CERTIFY that on this _ day of , 2014, 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. LEASE OF AIRPORT LANDS Page 32 of 33 Notary Public for Alaska My Commission Expires: Page 51 of 114 City: Lessee: Approved as to lease form by City Attorney: S Approved by Finance Director: Airport Commission recommended approval on Planning & Zoning Commission recommended approval on Sandra Modigh, City Clerk LEASE OF AIRPORT LANDS Page 33 of 33 Page 52 of 114 City: Lessee: KENAI CITY COUNCIL — REGULAR MEETING NOVEMBER 19, 2014 — 7:00 P.M. KENAI CITY COUNCIL CHAMBERS 210 FIDALGO AVE., KENAI, AK 99611 MAYOR PAT PORTER, PRESIDING MINUTES A. CALL TO ORDER A Regular Meeting of the Kenai City Council was held on November 19, 2014, in City Hall Council Chambers, Kenai, AK. Mayor Pat Porter called the meeting to order at 7:00 p.m. 1. Pledge of Allegiance Mayor Pat Porter led those assembled in the Pledge of Allegiance. 2. Roll Call There were present: Ryan Marquis Robert Molloy Henry Knackstedt Pat Porter A quorum was present. Also in attendance were: Rick Koch, City Manager Scott Bloom, City Attorney Sandra Modigh, City Clerk Amber McGlasson, Deputy Clerk 3. Agenda Approval Brian Gabriel Terry Bookey Tim Navarre (telephonic) Mayor requested an additional applicant be added to G8, Appointment of a new Planning and Zoning Commissioner. MOTION: Council Member Molloy MOVED to approve the agenda requested UNANIMOUS CONSENT. Council Member Knackstedt SECONDED the motion. VOTE: There being no objections, SO ORDERED. Page 53 of 114 4. Consent Agenda MOTION: Council Member Bookey MOVED to approve the consent agenda and requested UNANIMOUS CONSENT. Council Member Gabriel SECONDED the motion. Mayor Pat Porter opened the floor for public comment; there being no one wishing to be heard, public comment was closed. There being 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 — None D. PUBLIC HEARINGS Ordinance No. 2798 -2014 — Increasing Estimated Revenues and Appropriations by $16,515 in the Senior Citizen Fund, for Supplemental Nutrition, Transportation, and Support Services Grant Funding Received for Fiscal Year 2015. Mayor Pat Porter opened public hearing; there being no one wishing to be heard, the Public hearing was closed. MOTION: Council Member Molloy MOVED to enact Ordinance No. 2798 -2014 and the motion was SECONDED by Marquis. Molloy reported on the Council on Aging meeting on November 13'h noting it was recommended to amend the ordinance to include remote starters. VOTE: YEA: Bookey, Gabriel, Knackstedt, Marquis, Molloy, Porter, Navarre NAY: MOTION PASSED UNANIMOUSLY 2. Ordinance No. 2799 -2014 — Consenting to the Vacation of Certain Right -of- Ways within the Shoreline Heights 2014 Addition Subdivision. City of Kenai Council Meeting Page 2 of 8 November 19, 2014 Page 54 of 114 Mayor Pat Porter opened public hearing; there being no one wishing to be heard, the public hearing was closed. MOTION: Council Member Marquis MOVED to enact Ordinance No. 2799 -2014 and the motion was SECONDED by Gabriel Surveyor Scott Hoff of Integrity Survey Inc. provided a brief history of the easements and right -of -ways of the Plat. City Attorney Bloom noted he'd bring forward a Code change for Council to enact by Resolution instead of Ordinance. Council Member Knackstedt declared he had previously voted for this Ordinance on the Planning Commission. VOTE: YEA: Bookey, Gabriel, Knackstedt, Marquis, Molloy, Navarre, Porter NAY: MOTION PASSED UNANIMOUSLY. 3. Resolution No. 2014 -66 — Awarding an Agreement to Univar USA, Inc. to Furnish and Deliver Chemicals Mayor Pat Porter opened public hearing; there being no one wishing to be heard, the public hearing was closed. MOTION: Council Member Marquis MOVED to adopt Resolution No. 2014 -66 and requested UNANIMOUS CONSENT the motion was SECONDED by Gabriel. City Koch explained the changes of the previous year's bid and this year's bid. There being no objections, SO ORDERED. 4. Resolution No. 2014 -67 — Authorizing Amendment to the City's Health Care Flexible Spending Arrangement Flexible Benefits Plan Document Mayor Pat Porter opened public hearing; there being no one wishing to be heard, the public hearing was closed MOTION: Council Member Bookey MOVED to approve Resolution No. 2014 -67 and requested UNANIMOUS CONSENT the motion was SECONDED by Marquis There being no objections SO ORDERED. City of Kenai Council Meeting Page 3 of November 19, 2014 Page 55 of 114 5. Resolution No. 2014 -68 —Awarding an Agreement to K +A Design studios for the Professional Architectural and Design Services for the Multipurpose Facility Upgrades Mayor Pat Porter opened public hearing; there being no one wishing to be heard, the public hearing was closed MOTION: Council Member Gabriel MOVED to adopt Resolution No. 2014 -68 and requested UNANIMOUS CONSENT; Molloy SECONDED. City Manager Koch advised $10,000 would be covering line drawings for upgrades to the Multipurpose Facility. There being no objections, SO ORDERED. E. MINUTES 1. *Regular Meeting of November 5, 2014 Minutes were approved by the consent agenda. UNFINISHED BUSINESS — None. G. NEW BUSINESS 1. *Action /Approval — Bills to be Ratified. Bills were approved by the consent agenda. *Action /Approval — Purchase Orders Exceeding $15,000 Approved by the consent agenda. 3. *Ordinance No. 2800 -2014 — Accepting and Appropriating a Donation from Hilcorp Energy Company to Assist with the Annual Kenai Senior Center Thanksgiving Dinner. Introduced by the consent agenda and set for public hearing on December 3, 2014. *Ordinance No. 2801 -2014 — Accepting and Appropriating a Grant from the State of Alaska Library for Employee Travel and Training. Introduced by the consent agenda and set for public hearing on December 3, 2014. 5. Action /Approval — Appoint Council Liaisons to Commissions, Committees, and Council on Aging. City of Kenai Council Meeting Page 4 of 8 November 19, 2014 Page 56 of 114 Council Member Bookey MOVED to approve the Council Liaisons to Commissions, Committees, and Council on Aging as provided in the packet, it was SECONDED by Molloy. VOTE: YEA: Bookey, Gabriel, Knackstedt, Marquis, Molloy, Navarre, Porter NAY: MOTION PASSED UNANIMOUSLY. 6. Action /Approval —Mayoral Nomination and Council Confirmation to Appoint Paul Minelga to the Airport Commission. MOTION: Council Member Bookey MOVED to approve the Mayoral nomination to appoint Paul Minelga to the Airport Commission and requested UNANIMOUS CONSENT, it was SECONDED by Marquis. There being no objections, SO ORDERED 7. Action /Approval —Mayoral Nomination and Council Confirmation to Appoint Holly Spann to the Parks & Recreation Commission MOTION: Council Member Bookey MOVED to approve the Mayor's nomination to appoint Holly Spann to the Parks & Recreation Commission; it was SECONDED by Marquis. VOTE: YEA: Knackstedt, Marquis, Navarre, Porter, Bookey, Gabriel NAY: Molloy MOTION PASSED 8. Action /Approval — Mayoral Nomination and Council Confirmation to Appoint an Applicant to the Planning and Zoning Commission Mayor Porter nominated James Glendening. Council will consider his appointment at the December 31d meeting. 9. Action /Approval — Assignment of Lease between Buccaneer Alaska Operations, LLC and AIX Energy LLC for Lease of Airport Lands described as Tract A -2, Kenai Spur Airport Lease Property Councilor Molloy MOVED to approve the assignment of the lease between Buccaneer Alaska Operations, LLC and AIX Energy LLC for Lease of Airport Lands described as Tract A -2 and requested UNANIMOUS CONSENT; it was SECONDED by Gabriel. City of Kenai Council Meeting Page 5 of 8 November 19, 2014 Page 57 of 114 City Attorney Bloom requested the approval be contingent on the City's right to access seismic testing data. Councilor Bookey MOVED to amend the assignment of the lease to include the condition that AIX honor the City's ability to access seismic testing data and requested UNANIMOUS CONSENT; it was SECONDED by Knackstedt. 10. Action /Approval — Assignment of Lease between Buccaneer Alaska Operations, LLC and AIX Energy LLC for Lease of Airport Lands described as Lot 8, Kenai Industrial Park Subdivision Council Member Bookey MOVED to approve the assignment of Lease between Buccaneer Alaska Operations, LLC and AIX Energy LLC for Lease of Airport Lands described as Lot 8 with the same conditions stated in previous motion and requested UNANIMOUS CONSENT; it was SECONDED by Marquis. There being no objections, SO ORDERED 11. Discussion- Purchasing Policy Council Member Molloy suggested changes be made to the local preference ordinance and competitive bidding in code. City Manager Koch explained the pros of joint purchasing with other agencies. Council concurred to conduct a work session in March 2015 to further discuss policy changes. H. COMMISSION /COMMITTEE REPORTS Council on Aging — Council Liaison Molloy reported on: • Letter to Council on Senior Center upgrades • Upcoming November 25t1 Thanksgiving Dinner at 11:30 a.m. • Veterans Celebrations on November 1011 were very successful • Bylaws discussion • Requested City Attorney attend next meeting 2. Airport Commission — meeting was canceled 3. Harbor Commission — Council Liaison Molloy reported on Harbor Commissions concerns with their roll and responsibilities. Requested the City Attorney attend next meeting. 4. Library Commission — Porter requested to sunset this commission. 5. Parks and Recreation Commission — Bookey noted minutes were in the packet from November 6 meeting. City of Kenai Council Meeting Page 6 of 8 November 19, 2014 Page 58 of 114 6. Planning and Zoning Commission —Navarre noted minutes were in the packet from the November 10 meeting and that the meeting for November 26 was canceled. 7. Beautification Committee— no report 8. Mini -Grant Steering Committee — no report I. REPORT OF THE MAYOR Mayor Porter noted she would like to conduct a town hall meeting to discuss legalizing of marijuana. City Attorney Bloom provided Council with a time line of enactment of proposed regulations for the new law. Council concurred to discuss the matter at a later date. J. ADMINISTRATION REPORTS 1. City Manager reported on the following: • Attended AML Conference • Thanked Bloom for his efforts with Buccaneer & AIX issues 2. City Attorney reported he attended AML Conference and found classes to be informative. 3. City Clerk reported she and Deputy McGlasson attended the AAMC Conference, classes were informative; thanked Rick for providing supportwhile out of the office. K. ADDITIONAL PUBLIC COMMENT 1. Citizens Comments (Public comment limited to five (5) minutes per speaker) Fred Braun, Kenai resident, spoke in favor of the City making more local purchases Caty Quinn, Kenai resident, spoke in opposition of the City doing business with AIX. Thomas Daily, Kenai resident, provided his views on public perception of the business community. 2. Council Comments Councilor Gabriel noted he attended the Boys & Girls Club fundraiser and thanked Veterans for their service. Council member Knackstedt advised he attended AML & Planning Commission training and found them to be very informative and educational. City of Kenai Council Meeting Page 7 of 8 November 19, 2014 Page 59 of 114 Council member Navarre reported on AML Conference. L. EXECUTIVE SESSION — None M. PENDING ITEMS 1. Action /Approval — Special Use Permit Between the City Of Kenai and Hilcorp Alaska, LLC for Parking of 37 Non - Commercial Passenger Vehicles in Designated Areas at the Kenai Municipal Airport. [Clerk's Note: At its November 5" meeting, Council postponed this item to the December 31 2. Action /Approval —Consent to Sublease between Dan O. Pitts and Hilcorp Alaska for Lot 2A1, FBO Subdivision, South Addition No. 2. (Clerk's Note: At its November 5' meeting, Council postponed this item to the December 3rd.1 N. ADJOURNMENT There being no further business before the Council, the meeting was adjourned at 8:38 p.m. I certify the above represents accurate minutes of the Kenai City Council meeting of November 19, 2014. Sandra Modigh, CMC City Clerk City of Kenai Council Meeting Page 8 of 8 November 19, 2014 Page 60 of 114 KENAI CITY COUNCIL WORK SESSION 2014 DIP NET REPORT NOVEMBER 20, 2014 6:00 P.M. KENAI CITY COUNCIL CHAMBERS MAYOR PAT PORTER, PRESIDING NOTES Council present: Mayor Pat Porter, R. Marquis, B. Molloy, B. Gabriel, H. Knackstedt Others present: Finance Director T. City Attorney S. Chief G. SandahCland SIT Manager D. Castimore Mayor Porter began the work session at approximately 6:00 p.m. City Manager Koch provided an overview of the 2014 Dip Net Report and noted another large salmon run this season; however, different than previous years on the length and timing of the runs. Koch noted the following improvements implemented in 2013: • "No wake" zones eliminated destruction of private property and erosion of natural habitats. • Eliminated beach access at Old Cannery Road and creation of two -lane access at Dunes Road. • Improved software in shacks with ability to save statistical data • North & South beaches were raked daily in evening hours with advisory signs about fish waste provided cleaner beaches • Additional fencing at end of South Forest to further protect vegetation Proposed changes to the 2015 fishery and fee structure: • Construction of a new access road to the beach south of the mouth of the Kenai River • Increase fees at the Municipal Boat Launch • Eliminate the annual permit for boat launch and parking • Capital improvements for the Personal Use Fishery Fund • Additional security camera at Dunes Road Clerk's Note: the Mayor exited the meeting at 6:46 p.m. Finance Director Eubanks provided an overview of the fisheries finances noting an increase in revenue although there'd been a decrease in fees. It was believed the increase was due to having fee shacks open 24/7. Residents provided the following comments: Opposed to parking created on the access road Recommended the shacks use generators for power Page 61 of 114 KENAI CITY COUNCIL WORK SESSION NOVEMBER 20, 2014 PAGE 2 • Requested a permit for residents to bypass the shacks for dropping off individuals • Recommended an incentive be provided to residents of the city vs. people from other areas of the state • Opposed to erosion on the bluff from individuals using private property; requested additional signage. Council Member Knackstedt spoke in favor of increasing the boat launch fees and recommended an increase in launch times. Councilor Molloy thanked Administration for the excellent report and the management of this year's fishery; thanked the public for their input. Council Member Marquis agreed with Molloy's comments and noted there were a huge crowds of people in Old Town watching the huge crowds of people on the beach; recognized that the management of the Fishery had improved and complaints are reduced. Council Member Gabriel echoed sediments of other councilors and thanked Administration for the data and report; thanked residents for their input; happy to see the vegetative areas being protected. The work session was adjourned at 8:15 p.m. Notes prepared by: Sandra Modigh, CMC City Clerk Page 62 of 114 " "V'llaye with a Past C# with a Future/' 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 ilm Telephone: 907 - 283 -75351 FAX: 907 - 283 -3014 1992 MEMO: TO: City Council FROM: Rick Koch, City Manager DATE: October 30, 2014 SUBJECT: Agenda Item G4, Action /Approval, Special Use Permit between the City of Kenai and Hilcorp Alaska, LLC for parking of 37 non- commercial passenger vehicles in designated areas at the Kenai Municipal Airport The purpose of this correspondence is to recommend Council approval of the above referenced special use permit. Representatives from Hilcorp Alaska, LLC, (hereafter Hilcorp) met with the Administration to discuss tenancy at the Kenai Municipal Airport Terminal Building and other support services. The specific scope of Terminal tenancy remains an ongoing discussion, and in the interim Hilcorp has been utilizing the Terminal to support multiple aircraft operations each day. Hilcorp is in the process of determining if other Terminal tenants may provide ground support services or whether Hilcorp will undertake ground support services themselves. Hilcorp requested a proposal from the City to provide adequate parking spaces to accommodate their personnel whom are engaged primarily in shift work on platforms and the west side of Cook Inlet. I have worked with Hilcorp Director of Aviation to develop the mutually agreed upon Special Use Permit. Page 63 of 114 Thank you for your attention in this matter. If you have any questions, please contact me at your convenience. Page 64 of 114 SPECIAL USE PERMIT The CITY OF KENAI (City) grants to Hilcorp Alaska, LLC ( Permittee), whose address is P.O. Box 244027, Anchorage, Alaska 99524 -4027 a Special Use Permit for Parking at the Kenai Municipal Airport subject to the requirements and the conditions set forth below. 1. Premises. Permittee shall have the exclusive right to use those areas shown in the attached diagram (Exhibit A) for the uses identified in this Permit. 2. Term. The term of this Permit shall be for one year commencing on November 1, 2014, and ending on October 31, 2015. Regardless of the date of signature, this Permit shall be effective as of November 1, 2014. 3. Permit Fees. Permittee shall pay the following fees for the privileges extended to Permittee under this Permit: A. Permit: Permittee shall pay a monthly fee of $4,000 for 37 parking spaces, plus applicable sales tax. The Permitte may use additional parking spaces in the same general area during employee "change outs." B. Other Fees: City may assess additional fees for aviation or aviation support activities and uses not defined in this Permit. If a fee has not been established for those activities or services, a fee will be established by the Airport Manager. Payment shall be directed to City of Kenai, ATTN: Finance Department, 210 Fidalgo Avenue, Kenai, AK 99611 and a courtesy notice of payment provided to Airport Administration at 305 North Willow Street, Suite 200, Kenai, AK 99611. All permit fees are payable in advance of each month unless otherwise provided. In the event of delinquency, interest at the rate of ten percent (10 %) per annum, and penalty of ten percent (10 %) shall also be due (KMC 1.75.010). Interest shall accrue from the date due until the date paid in full. Failure to timely make payments is grounds for termination of this Permit. 4. Use. City authorizes Permittee's exclusive use of the Premises for the following purpose(s): Parking of 37 non - commercial passenger vehicles in the designated areas shown in Exhibit A with larger numbers of vehicles only during personnel "changeouts." Additional parking may be provided as needed and available. Special Use Permit — Hilcorp (Parking) Page 65 of 114 Page 1 of 4 Use of the Premises by Permittee is subject to the reasonable administrative actions of the City of Kenai for the protection and maintenance of the Premises and of adjacent and contiguous lands or facilities and is further subject to the following conditions: Permittee acknowledges that the use granted herein is subject to the Kenai Municipal Code and municipal regulations governing the Kenai Municipal Airport and as those laws and regulations may be amended from time to time Solicitation of donations or operation of a business or other commercial enterprise not contemplated by this Permit is prohibited without the written consent of City. 5. Assumption of Risk Permittee assumes full control and sole responsibility as between Permittee and City for the activities of Permittee, its personnel, employees, and persons acting on behalf of or under the authority of the Permittee anywhere on the Airport. Permittee shall provide all proper safeguards and shall assume all risks incurred in its activities on and access to the Kenai Municipal Airport and its exercise of the privileges granted in this Permit. 6. Indemnity, Defend, and Hold Harmless Agreement. Permittee agrees to fully indemnify, defend, and hold 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 negligent act or omission or willful misconduct of the Permittee in connection with or arising from or out of Permittee's activities on or use of the Premises, Permittee's access to the Kenai Municipal Airport, and /or Permittee's exercise of the privileges granted in this Permit. This shall be a continuing obligation and shall remain in effect after termination of this Permit. 7. Hazardous Substances and Materials. Permittee shall conform and be subject to the requirements of 14 CFR § 139.321 regarding the handling and storage of hazardous substances and materials. 8. No Discrimination. Permittee shall not discriminate against any person because of the person's race, creed, color national origin, sex, age, or handicap. Permittee recognizes the right of City to take any action necessary to enforce this requirement of the Permit. Special Use Permit — Hilcorp (Parking) Page 66 of 114 Page 2 of 4 9. Compliance with Law /Grant Assurances. This Permit, and Permittee's activities conducted under this Permit, is subject to all executive orders, policies and operational guidelines and all applicable requirements of federal, state, and City statutes, ordinances, and regulations in effect during the term of this Permit. 10. No Exclusivity. The privileges granted under this Permit are not exclusive to Permittee. City has the right to grant to others any right or privilege on the Airport. 11. Assignment. The privileges granted under this Permit are personal to Permittee and may not be assigned by Permittee. 12. No Joint Venture. 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 or elsewhere at the Kenai Municipal Airport. 13. 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. 14. Personal Property. Permittee shall remove any and all personal property, including all vehicles, from the Premises at the termination of this Permit (or any renewal thereof). Personal property placed or used upon the Premises will be removed and/or impounded by the City, if not removed upon termination of this Permit 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 storage charges of $25.00 per day. The City of Kenai is not responsible for any damage to or theft of any personal property of Permittee or of its customers. 15. Termination; Default. This Permit may be terminated by either party hereto by giving ninety (90) days advance written notice to the other party. City may terminate the Permit immediately, or upon notice shorter than ninety (90) days, to protect public health and safety or due to a failure of Permittee to comply with condition or term of this Permit which failure remains uncured after notice by City to Permittee providing Permittee with a reasonable time period under the circumstances to correct the violation or breach. Special Use Permit — Hilcorp (Parking) Page 67 of 114 Page 3 of 4 CITY OF KENAI Rick R. Koch Date STATE OF ALASKA ) ) ss. THIRD JUDICIAL DISTRICT ) HILCORP ALASKA, LLC. In THIS IS TO CERTIFY that on this _ day of 2014, the foregoing instrument was acknowledged before me by RICK R. 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 ) THIS IS TO CERTIFY that on this _ day of , 2014, the foregoing instrument was acknowledged before me by, on behalf of Hilcorp Alaska, LLC. Approved as to form: Scott Bloom City Attorney YADept - Airport\SUP\2014 1024 Hilcorp Parking SUP.docx Special Use Permit — Hilcorp (Parking) Notary Public for Alaska My Commission Expires: Page 68 of 114 Page 4 of 4 Exhibit A 1�Atl. Edff1D7R PA7l1MD i1�) ®! . :0 POW= 0 B' IDURCC/!.L1TV1Wif ' ? 1 AMiAM 0 (01) M O PBA' M M PAMMD (0) G o'. O ' 1W (Y) 0 10' WUNf&/MMVRANT POM10 to RCN 0 P -c- 30 0 30 60 GRAPHIC SCALE FEE)' u HOUR FF or HOUR FF Page 69 of 114 ,\ "'Villaye with a Past, C# with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 tlll�i v�uw• .. .. 1991 V MEMO: TO: City Council FROM: Rick Koch, City Manager DATE: October 30, 2014 SUBJECT: Agenda Item G6, Action /Approval, Consent to Sublease between Dan O. Pitts and Hilcorp Alaska for Lot 2A1, FBO Subdivision, South Addition No. 2 The purpose of this correspondence is to recommend postponement of Council consideration of the above referenced consent to sublease. Amendment number nine to the lease agreement between the City and Mr. Pitts states in part, "The purpose for which the lease is issued is: Freight Facility and Parking and Storage. The rate charged for vehicle parking shall not be less than the rates charged by the City for airport parking." I have reviewed the proposed sublease and the use of the sublease is "...for parking through the Kenai Municipal Airport, and any legal uses related thereto." It is not clear what amount of the proposed rent is attributable to parking, and what amount of the proposed rent is attributable to any legal uses related hereto. In any case, the proposed rent for this sublease is less than what the City and Hilcorp have negotiated for 37 dedicated, exclusive use parking spaces. In the event the purpose of the sublease was for freight forwarding and /or storage. Administration would recommend approval of the sublease Thank you for your attention in this matter. If you have any questions, please contact me at your convenience. Page 70 of 114 "Village with a Past, C# with a Future 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 111111 1992 MEMO: TO: City Council APPROVED BY COUNCIL Iq FROM: Rick Koch Date: 11-15-4 DATE: November 5, 2014 SUBJECT: Request to Postpone Agenda Items G6 and G7 The purpose of this correspondence is to request that Council postpone the above two referenced items until the regularly scheduled Council Meeting of December 3, 2014. Mr. Dan Pitts the leaseholder requesting approval of a sublease is unable to meet with the City Manager and /or address Council on these items as he is out of State on family business. I have spoken with Mr. Pitts and he agrees with this postponement. Thank you for your attention in this matter. Page 71 of 114 [PAGE LEFT BLANK INTENTIONALLY] Page 72 of 114 a � N . M Q' LU M LU , W U I W 0 2 I H W LLI I J I Z :O . U ~ m U O O w C) 2 Q O N Obi O N Z) W N O O co t Q Z r O m N (1 Cl) N Q V Lf) c7 m r N r N O U O O O Z) F- F- N N x W w W w a UQ S LL W W J Q m a J w a w 0 Q C0 d W W I Z O Z F- J W F F- J F'" W H w IL a 2 v r a a F- Q J J O D D D Z) D D O _O O O O W K E Q' W Tr W U W 2 O a K U N W D a o 0 o N r r N CV r m U O O O Q (7 Q O (if Q O N Z) W N O O W O t U Z t7- r- N Q — U O U O O O Z) F- F- N N x W w F a UQ S LL W U W 2 O a K U N W D a o 0 o N r r N CV r m U O O O O O Q O ON W W O N c7 O N O O W O t r- r t7- r- N N J U O U O O O 7 N N x W w F ~ W Q m J w x w 0 Q d W W I W Z w W O D LL w IL F- 2 U W 2 O a K U N W D a o 0 o N r r N CV r Page 73 of 114 m m m m O O O O O O ON W W O N N N N O O W O t r- r t7- r- N N O O O O O 7 N N N N Page 73 of 114 m m m m O > y z Z W W ON W W O N N N N O O W O t r- r t7- r- N N O O O O O Page 73 of 114 Y > y z Z W W W W W LL g U) z ix O O W > t r- r t7- r- O O O O O Page 73 of 114 Y > y z Z Q LL LL LL LL Q LL LL LL LL LL g U) z ix O O W > r ¢ W - a < K - a < a - - n. a Page 73 of 114 [PAGE LEFT BLANK INTENTIONALLY] Page 74 of 114 J Q O ly IL a J U 2 O U w w z x U_ 2 O O C 0 0 F» 4! W > 0 cn a W ❑ O w Q S U a v 0 N M w W m 2 W U W LL O Z H W w J U z O U z z O U U a a w 0 a M M O V O w J a CL O z F- w d O ly w w N w w Z Q K w w U) w f- Z J O Z Z Y w U w�w O Z Q U w w U r Page 75 of C- a 0 a m l.- // V'��age with a Past, C# with a Future 210 Fidalgo Avenue, Kenai, Alaska 9, bcft Telephone: 907 - 283 -7535 / FAX: 907 l�ll MEMORANDUM 199' TO: City Council FROM: Rick Koch DATE: 11/2612014 SUBJECT: Purchase Order to TJC Excavating for extending a City Water Transmission Main and Sewer Collection Main The purpose of this memo is to recommend approval of the purchase order to TJC Excavating. This amount represents 50% of the cost of the water transmission main materials, and 50% of sewer collection materials for the extension of public utilities in McKinley Street. A small subdivision has been developed on McKinley Street, approximately 150 lineal feet from Redoubt Avenue, where connections to public utilities could be accomplished. In order to serve the new development these main -line utility extensions needed to be constructed in an existing City right -of -way. The contractor agreed to construct these main -line extensions at their cost less one -half the cost of materials to be paid for by the City. The cost of engineering, labor, and equipment to install the main -line utility extensions was fully borne by the contractor and material costs of $32,806.68 were shared equally between the contractor and the City. This development results in significant benefit to the City of Kenai. Our water main has been extended at a significantly lower cost than if the City had executed the project. The property values have been increased, and additional customers added to our water service area. The main that has been extended is adjacent to future properties that will likely be developed, further benefiting the City of Kenai. Thank you for your attention to this matter. Page 76 of 114 CITY OF KENAI ORDINANCE NO. 2802 -2014 Sponsored by: Legal AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING KMC 22.05.110- DETERMINATION AS TO NEED FOR PUBLIC USE, TO PROVIDE FOR EXCEPTIONS TO THE REQUIREMENT THAT COUNCIL CONSIDER ACQUISITION AND DISPOSAL OF RIGHT -OF -WAYS AND EASEMENTS BY ORDINANCE FOR PLATS AND VACATIONS. WHEREAS, as provided in KMC 14.10.010 - General, the City's Planning and Zoning Commission first considers preliminary plats for subdivisions and right -of -way vacations in the City; and, WHEREAS, Kenai Municipal Code 14.05.010- Duties and Powers, provides that the Planning and Zoning Commission acts in an advisory capacity to the Kenai Peninsula Borough's Planning Commission with regard to approval of subdivisions plats and right -of -way vacations; and, WHEREAS, Kenai Municipal Code 22.05.110- Determination as to need for public use, requires any acquisition or disposal of public land to be approved by Ordinance. WHEREAS, right -of -ways and easements are routinely dedicated to the City for public use through the plating process without Council input; and, WHEREAS, pursuant to Alaska Statute 29.45.140- Hearing and Determination, the Council has 30 days to veto or consent to the decision of the Kenai Peninsula Borough's Planning Commission to vacate a right -of -way or easement in the City; and, WHEREAS, 30 days is not a sufficient amount of time for the Council to consider the issue of a right -of -way or easement vacation by ordinance; and, WHEREAS, amending KMC 22.05.110- Determination as to need for public use, to except dedication of right -of -ways and easements through the plating process and allow for such determinations in regards to right -of -ways and easements by resolution, is consistent with the existing City and Borough process and resolves the timing issue while continuing to allow for reasonable public input and consideration. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, as follows: Section 1. Form: That this is a code ordinance. New Text Underlined; (DELETED TEXT Page 77 of 114 Ordinance No. 2802 -2014 Page 2 of 2 Section 2. Amendment of Section 22.05. 110 of the Kenai Municipal Code: That Kenai Municipal Code, Section 22.05.110- Determination as to need for public use, is hereby amended as follows: 22.05. 110 Determination as to need for public use. (a) Whether land shall be acquired, retained, devoted, or dedicated to a public use shall be determined by ordinance which shall contain the public use for which the property is to be dedicated, the legal description of the property, and the address or a general description of the property sufficient to provide the public with notice of its location. This rermirement ,4......,....,....1...,. -d 1 VI.GSS. Whether land previously dedicated to a public use should be dedicated to a different public use or should no longer be needed for public use shall be determined by the City Council by ordinance, except in cases of vnrnf ;n„ ..f which shall contain the new public use for which the V property .y is to be dedicated UI or the reason the land is no longer needed for public e, theli gall description of the property, and the address or a general description of the property sufficient to provide the public with notice of its location. Section 3. Severability: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC I. 15.070(f), this ordinance shall take effect 30 days after adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 2014. ATTEST: Sandra Modigh, City Clerk PAT PORTER, MAYOR Introduced: December 3, 2014 Adopted: December 17, 2014 Effective: January 16, 2015 New Text Underlined; ]DELETED TEXT BRACKETED] Page 78 of 114 u "Villaye with a Past, C# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 MEMORANDUM TO: Council Members FROM: Legal Depai6hent DATE: November 26, 2014 SUBJECT: Ordinance No. 2802 -2014, Determination as to Need for Public Use This Ordinance is recommended by the Legal Department to address what I believe is unintended overly broad language in KMC 22.05.110- Determination as to Need for Public Use, which requires the City Council to act by ordinance when land is acquired, retained, devoted or dedicated to a public use and vice versa when such land previously dedicated is no longer needed. I raised my concerns with this section of Code at the November 19, 2014 Council meeting indicating my intent to bring forth an ordinance to address it. This section of code presents two main issues. First, with regard to dedicating public roads and easements for public use through the plating process, a very common way of dedicating public right -of -ways, Council typically does not act at all. The plating process is handled by the City's Planning and Zoning Commission and the Borough plating authority. A subdivision plat does not go before Council unless an exception or waiver to City code is requested. Unless Council wishes to separately approve any subdivision dedicating a road or easement for public use, I recommend this process be excluded from KMC 22.05.110 as provided in the accompanying Ordinance. Council would still act on the dedication of any other property interest to the City for public use. The second issue regards vacating a public right -of -way. This is also an issue initially handled by City and Borough planning commissions, however, Alaska State Statute 29.40.140(b) provides that after consideration by the Borough, the City Council has 30 days to veto the action. Thirty days is not enough time to present and act on an ordinance given the City's packet schedule. Amending code to allow for a resolution in this situation would allow sufficient time for Council to act and still provide an opportunity for public input. Like dedicating right -of -ways through the plating process, it does not appear the past practice of the City has been to follow a literal reading of this section of code. Your consideration is appreciated. Y: \Ordinances & Resolutions \Ordinances\2014 \Ordinance No. 2802 -2014 Determination Memo.docx Page 79 of 114 [PAGE LEFT BLANK INTENTIONALLY] Page 80 of 114 Sponsored by: Administration CITY OF KENAI ORDINANCE NO. 2803 -2014 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING CHAPTER 4.25- UNIFORM PLUMBING CODE, TO ADOPT THE 2012 EDITION OF THE UNIFORM PLUMBING CODE, AS AMENDED BY THE STATE OF ALASKA WITH LOCAL ADMINISTRATIVE AMENDMENTS, WHICH CODE ALSO INCORPORATES THE UNIFORM SWIMMING POOL, SPA AND HOT TUB CODE AND THE UNIFORM SOLAR ENERGY CODE. WHEREAS, the City previously adopted the Uniform Plumbing Code, 2009 Edition, of the International Association of Plumbing and Mechanical Officials, including Appendices with certain local amendments; and, WHEREAS, the International Association of Plumbing and Mechanical Officials has also adopted Uniform Swimming Pool, Spa and Hot Tub Code and the Uniform Solar Energy Code which codes are incorporated in the Uniform Plumbing Code by reference; and, WHEREAS, the State of Alaska has recently adopted the 2012 Edition of the Uniform Plumbing Code; and, WHEREAS, the City of Kenai has a Memorandum of Agreement and Understanding with the State of Alaska regarding the City's responsibility for the inspection of electrical and plumbing installations which requires the City to adopt standards no less stringent than the States; and, WHEREAS, adoption of the 2012 Edition as provided below will comply with the City's Agreement with the State and benefit the City through the enforcement of current standards. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that Section 1. Form; That this is a code ordinance. Section 2. Amendment oI t; Municipal Code, Chapter 4.25, Chapter 4.25 PLUMBING CODE Code, is New Text Underlined; [DELETED TEXT Page 81 of 114 1 Code: That Kenai as follows: Ordinance No. 2803 -2014 Page 2 of 3 4.25.010 Adoption. There is hereby adopted for the purpose of establishing rules and regulations for the qualification of persons engaged in the business of plumbing and the installation, alteration, or repair of plumbing systems, that certain bound volume known as the "Uniform Plumbing Code," the "Uniform Swimming Pool, Spa and Hot Tub Code," and the "Uniform Solar Energy Code," 20[09]12 Edition, of the International Association of Plumbing and Mechanical Officials, including the appendices, except for such portions_ [AS ARE HEREINAFTER DELETED, MODIFIED, OR AMENDED; AND THE SAME IS HEREBY ADOPTED AND INCORPORATED AS FULLY AS IF SET OUT VERBATIM HEREIN.] 1. Deleted modified or amended by the State of Alaska Omitting State of Alaska deletions modifications or amendments regarding administrative procedures, fees and costs• and 2. Deleted modified or amended in this Chapter relating to administrative procedures, fees and costs (local amendments) 4.25.015 LOCAL AMENDMENTS TO THE 20[09 12 UNIFORM PLUMBING CODE. [AMEND SECTION 412.3(3) BY ADDING THE FOLLOWING LANGUAGE TO LINE ONE OF THE SECTION, AFTER THE WORDS "MERCANTILE OCCUPANCIES ": EXCEPT FOOD SERVICE ESTABLISHMENTS WITH SEATING, AMEND SECTION 508.5 BY ADDING A NEW SUBSECTION 508.5.1 TO READ: 508.5.1 WHEN A WATER HEATER IS INSTALLED UPON A PLATFORM, SUCH AS WITHIN A GARAGE, THE WATER HEATER RELIEF VALVE PIPING SHALL DISCHARGE TO THE FLOOR OVER THE EDGE OF THE PLATFORM. AMEND SECTION 1213.0 BY ADDING A NEW SUBSECTION 1213.1 TO READ: 1213.1 IN ADDITION TO THE REQUIREMENTS OF THIS CODE FOR GAS PIPING, THE FACILITIES AND PIPING FOR USE WITH LIQUEFIED PETROLEUM GAS SHALL MEET THE FOLLOWING REQUIREMENTS: (A) LIQUEFIED PETROLEUM GAS SHALL NOT SERVE ANY GAS FIRED APPLIANCE LOCATED IN A PIT OR BASEMENT WHERE HEAVIER THAN AIR GAS MIGHT COLLECT TO FORM A FLAMMABLE MIXTURE. (B) PIPE JOINT COMPOUNDS USED SHALL BE INSOLUBLE IN LIQUEFIED PETROLEUM GAS. (C) EVERY VALVE AND APPURTENANCE USED ON SUCH PIPING SHALL BE DESIGNED AND APPROVED FOR USE WITH LIQUEFIED PETROLEUM GAS. (D) RELIEF VALVES SHALL DISCHARGE TO THE EXTERIOR OF THE BUILDING INTO THE AIR AND SHALL BE AT LEAST FIVE FEET New Text Underlined; [DELETED TEXT BRACKETED] Page 82 of 114 Ordinance No. 2803 -2014 Page 3 of 3 HORIZONTALLY FROM ANY OPENING INTO A BUILDING THAT IS BELOW THE DISCHARGE POINT. DELETE SECTION 1101.5, SUBSOIL DRAINS, IN ITS ENTIRETY.] Delete Sections 102.3 Board of Anneals and 102.5 Penalties. Appeals and Penalties are determined pursuant to KMC Chapter 4.40 -Board of Appeals. [4.25.070 PROTECTION OF PIPING MATERIALS AND STRUCTURES. SECTION 313.0 OF THE UNIFORM PLUMBING CODE ADOPTED BY THIS CHAPTER IS AMENDED TO ADD THE FOLLOWING: 313.13 WATER SERVICE PIPE SHALL HAVE THE THAW WIRE CONNECTED AT THE WATER MAIN, AND BROUGHT TO THE SURFACE AT THE CURB STOP OR OTHER CONVENIENT LOCATION. SUCH WIRE SHALL NOT BE SMALLER THAN 4/0 AWG.] Section 3. Severabili ty: That if any part or provision of this ordinance or application thereof to any person or circumstances is adjudged invalid by any court of competent jurisdiction, such judgment shall be confined in its operation to the part, provision, or application directly involved in all controversy in which this judgment shall have been rendered, and shall not affect or impair the validity of the remainder of this title or application thereof to other persons or circumstances. The City Council hereby declares that it would have enacted the remainder of this ordinance even without such part, provision, or application. Section 4. Effective Date: That pursuant to KMC 1.15.070(f), this ordinance shall take effect 30 days after adoption. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 2014. ATTEST: Sandra Modigh, City Clerk PAT PORTER, MAYOR Introduced: December 3, 2014 Adopted: December 17, 2014 Effective: January 16, 2015 New Text Underlined; DELETED TEXT BRACKETED1 Page 83 of 114 "'Villaye with a Past, C# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 MEMORANDUM: To: Sean Wedemeyer, Public Works Director From: Larry Floyd, Building Official 1 \ Date: November 25, 2014 Subject: Ordinance No. 2803 -2014; Adoption of the 2012 Uniform Plumbing Code This memo is in support of Ordinance No. 2803 -2014 which will adopt the 2012 edition of the Uniform Plumbing Code, Uniform Swimming Pool, Spa and Hot Tub Code and the Uniform Solar Energy Code as amended by the State of Alaska. The City has historically adopted the latest edition of the Uniform Plumbing Code as the standard for Plumbing installations in the City of Kenai. Under an agreement with the State of Alaska, the City of Kenai is obligated to enforce Plumbing standards that are no less stringent than the State of Alaska's minimum standards. The State of Alaska adopted the 2012 Uniform Plumbing Code with amendments in October of this year. I therefore recommend the adoption of these Uniform Codes as amended by the State of Alaska in order to comply with the conditions of our agreement, to consistently enforce the code standards in effect throughout the State and to establish the latest Plumbing Code Standards for the City of Kenai. Page 84 of 114 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2804 -2014 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, INCREASING ESTIMATED REVENUES AND APPROPRIATION IN THE PERSONAL USE FISHERY FUND AND AUTHORIZING BUDGETARY TRANSFERS IN THAT FUND FOR REMAINING FY2015 PROJECTED EXPENDITURES. WHEREAS, actual revenues in the Personal Use Fishery Fund were in excess or projected amounts for FY2015 and these additional funds will be needed in preparation for the 2015 fishery; and, WHEREAS, budget adjustments are needed to provide for expending of funds as detailed in 2014 Dip Net Report for the remainder of FY2015; and, WHEREAS, providing supplemental funding and budget transfers will assist the administration in preparation for the 2015 fishery and is in the best interest of the City, City residents and the 2015 fishery participants. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1: Form: That this is a non -code ordinance. Section 2: That estimated revenues and appropriations be increased as follows: Personal Use Fishery Fund Revenues: Decrease Estimated Revenues: Beach Parking ($80,242) Appropriation of Fund Balance (24,868) Increase Estimated Revenues: Beach Camping 125,871 Dock Launch & Park 9,870 Dock Parking Only 868 PERS - On behalf Funding 4.039 $35.538 Expenditures: Public Safety - Small Tools & Minor Equipment 10,485 Streets - Rentals 10,700 Streets - Contingency 2,500 Parks, Recreation & Beautification - Contingency 5,000 Parks, Recreation & Beautification - Printing & Binding 4,353 Boating Facility - Contingency 2.500 53 Nem Text Underlined; DELETED TEXT BRACKETED] Page 85 of 114 Ordinance No. 2804 -2014 Page 2 of 3 Section 3: That the following budget revision be made: Personal Use Fishery Fund Streets - Overtime Decrease 820 Public Safety - Overtime $ 1,612 Public Safety - Medicare Streets - Supplemental Retirement Public Safety - Social Security 14 Public Safety - Unemployment Insurance 57 Public Safety - Workers' Compensation Insurance 151 46 Streets - Salaries Parks, Recreation & Beautification Streets - Leave 964 Streets - Medicare 295 Streets - PERS 9 Streets - Unemployment Insurance 1,917 Streets - Health Insurance 49 Streets - Operating & Repair Supplies 821 Streets - Repair & Maintenance 1,323 1 Parks, Recreation & Beautification - Salaries 2,990 Parks, Recreation & Beautification - Leave 134 Parks, Recreation & Beautification - Medicare 16 Parks, Recreation & Beautification - PERS 1,978 Parks, Recreation & Beautification - Unemployment Insurance 242 Parks, Recreation & Beautification - Workers' Compensation 133 Parks, Recreation & Beautification - Supplemental Retirement 55 Parks, Recreation & Beautification - Small Tools /Minor Equip. 1,547 Parks, Recreation & Beautification - Improvements 20,000 Boating Facility - Leave 296 Boating Facility - PERS 1,513 Boating Facility - Unemployment Insurance 129 Boating Facility - Advertising 800 Boating Facility - Printing &Binding Boating Facility - Improvements 450 12.944 $50,486 Increase Public Safety - Wages $ 486 Streets - Overtime 820 Streets - Workers' Compensation 99 Streets - Supplemental Retirement 162 Parks, Recreation & Beautification - Overtime 2,261 Parks, Recreation & Beautification - Social Security 185 Parks, Recreation & Beautification - Health Insurance 926 Parks, Recreation & Beautification - Operating & Repair Supplies 354 Parks, Recreation & Beautification - Professional Services 7,115 Parks, Recreation & Beautification - Printing & Binding 8,307 Parks, Recreation & Beautification - Rentals 11,454 Parks, Recreation & Beautification - Machinery & Equipment 345 Boating Facility - Wages 5,625 Boating Facility - Overtime 5,577 Neiv Text Underlined; ]DELETED TEXT BRACKETED] Page 86 of 114 Ordinance No. 2804 -2014 Page 3 of 3 Boating Facility - Medicare 151 421 Boating Facility - Social Security 309 Boating Facility - Workers' Compensation Boating Facility - Health Insurance 653 Boating Facility - Supplemental Retirement 54 Boating Facility - Operating & Repair Supplies 733 Boating Facility - Rentals 4.449 50.486 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 2014. PAT PORTER, MAYOR ATTEST: Sandra Modigh, City Clerk Approved by Finance: -� New Text Underlined; DELETED TEX Page 87 of 114 Introduced: December 3, 2014 Adopted: December 17, 2014 Effective: December 17, 2014 1'L'Ul "�i'llaye with a Past, C# with a Ft-,e "" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907- 283 -3014 To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: November 25, 2014 Re: Ordinance 2804 -2014 The purpose of this memo is to recommend passage of Ordinance 2804 -2014. Ordinance 2804- 2014 will appropriate additional revenues received during this year's fishery and provide for budget adjustments to accomplish remaining operational activities detailed on the attached pages. Also attached is an updated financial FY15 projection for the Personal Use Fishery Fund. At year end it is projected the fund will have a remaining fund balance of $24,452. Page 88 of 114 City of Kenai Fiscal Year 2015 Financial Projections Fund: 006 - Personal Use Fishery Fund * Council Adopted Budget includes annually adopted budget and carryforward encumbrances. Page 89 of 114 Council* Adopted Projected FY2016 Projected % FY 2015 Bu et Actual Pro acted Variance Available Revenues Beach Parking $ 300,000 $ 219,758 $ 219,704 $ 219,758 $ 0.00% Beach Camping 70,000 195,871 195,783 195,871 0.00% Dock Launch & Park 91,500 101,370 101,330 101,370 - 0.00% Dock Parking Only 15,000 15,868 15,868 15,868 - 0.00% PERS Grant 2,676 6,715 - 6,715 - 0.00 °° Total Revenue 479,176 539,582 532,685 539,582 0.00% Expenditures Public Safety $ 113,609 $ 122,700 $ 105,519 $ 122,700 $ 0.00% Streets 58,673 67,575 45,781 65,075 2,500 3.70% Boating Facility 89,727 82,367 76,276 79,867 2,500 3.04% Parks, Recreation & Beautification 256,646 281,551 238,718 276,551 5,000 1.78% Total Expenditures 518,655 554,193 466,294 544,193 10,000 1.80% Contribution To/(From) Fund Balance: (39,479) (14,611) 66,391 (4,611) 10,000 Projected Lapse 11,786 10,000 - - (10,000 Adjusted(Deficit) /Surplus (27693) (4,611) 66,391 4,611 - Beginning Fund Balance 29,063 29,063 29,063 29,063 Ending Fund Balance $ 1,370 $ 24,452 $ 95,454 $ 24,452 * Council Adopted Budget includes annually adopted budget and carryforward encumbrances. Page 89 of 114 City of Kenai Fiscal Year 2015 Operating Budget Personal Use Fishery Fund Summary by Line Item . Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 90 of 114 Council' Account Expense Adopted Projected FY2015 Projected % Number Description FY2015 Butl a Actual Protected Variance Available Salaries and Benefits 0100 Salaries $ 87,630 $ 89,787 $ 70,139 $ 89,787 $ 0.00% 0200 Overtime 39,534 46,580 46,580 46,580 " 0.00% 0250 Holiday Pay 0300 Leave 1,068 343 - 343 - 0.00% 0400 0450 Medicare Social Security 1,859 1,971 1,679 1,971 0.00% 0500 PERS 5,232 5,781 5,125 5,781 0.00% 0600 Unemployment Insurance 18,838 641 13,430 4,468 13,430 0.00% 0700 Workers Compensation 3,808 70 4,037 - 3,589 70 4,037 - 0.00% 0.00% 0800 Health & Life Insurance 7,946 8,704 6,393 8,704 - 0.00% 0900 Supplemental Retirement 953 1,114 671 1,114 Total Salaries & Benefits $ 167,509 $ 171,817 $ 138,644 $ 171,817 $ 0.00% 0.00% Maintenance and Operations 2021 Office Supplies _ 2022 Operating & Repair Supplies 20,030 20,164 14,917 20,164 0.00% 2024 Small Tools/Minor Equipment 4,500 13,438 2,953 13,438 - 2025 Snack Bar Supplies _ _ _ " 2026 Computer Software _ _ 4531 Professional Services 3,500 15,615 2,115 15,615 4532 Communications 2,090 1,515 415 1,515 0.00% 4533 Travel & Transportation 4534 Advertising 800 _ 4535 Printing & Binding 6,000 18,210 8,490 18,210 0.00% 0.00% 4536 Insurance 2,025 2,025 2,025 2,025 _ 4537 Utilities 996 996 172 996 '_ 4538 Repair & Maintenance - 560 560 560 4539 4540 Rentals Equip. Fund Pmts. 106,565 _ 144,868 _ 136,018 144, 868 - 0.00% 4541 Postage _ _ - 4666 Books _ _ 4667 Dues & Publications 4999 General Contingency - 10,000 - 5041 Miscellaneous 7,500 7,500 7,500 - 7,500 10,000 10000% 5045 Depreciation _ _ - 5047 Grants to Agencies _ - " Total Maint and Operations $ 154,006 $ 234,891 $ 175,165 $ 224,891 $ 10,000 4.26% Capital Outlay & Transfers 8061 Land 8062 Buildings _ _ - - 8053 Improvements 45,000 _ _ 8064 Machinery & Equipment 26,340 26,685 26,685 26,685 - 0.00% 9090 Transfers 125,800 125,800 125,800 125,800 Total Capital Outlav and Transfers $ 197,140 $ 152,485 $ 152,485 $ 152,485 $ Department Total: $ 518,655 $ 559,193 $ 466,294 $ 549,193 $ 10,000 1.79% . Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 90 of 114 Account E Expense Number D Description Salaries and Benefits 0100 S Salaries 0200 O Overtime 0250 H Holiday Pay 0300 L Leave 0400 M Medicare 0450 S Social Security 0500 P PERS 0600 U Unemployment Insurance 0700 W Workers Compensation 0800 H Health & Life Insurance 0900 S Supplemental Retirement Total Salaries & Benefits Maintenance and Operations 2021 O Office Supplies 2022 O Operating & Repair Supplies 2024 S Small Tools /Minor Equipment 2025 S Snack Bar Supplies 2026 C Computer Software 4531 P Professional Services 4532 C Communications 4533 T Travel & Transportation 4534 A Advertising 4535 P Printing & Binding 4536 I Insurance 4537 U Utilities 4538 R Repair & Maintenance 4539 R Rentals 4540 E Equip. Fund Pmts. 4541 P Postage 4666 B Books 4667 D Dues & Publications 4999 C Contingency 5041 M Miscellaneous 5045 D Depreciation 5047 G Grants to Agencies Total Maint and Operations Capital Outlay & Transfers 8061 L Land 8062 B Buildings 6063 I Improvements M f City of Kenai Fiscal Year 2015 Year to Date Actual Fund: D06 - Personal Use Fishery Fund Department: 21 - Public Safety Council " Adopted Projected Year to Date FY2015 Projected % FY2015 Budget Actual Protected Variance Available $ 22,362 $ 22,848 $ 16,771 $ 22,846 $ - 0.00% 7,862 6,250 6,250 6,250 - 0.00% 438 424 334 424 1,874 1,817 1,427 1,817 151 608 562 423 562 $ 33,295 $ 31,901 $ 25,205 $ 31,901 $ - 10,485 - 10,485 314 314 314 314 $ 314 $ 10,799 $ 314 $ 10,799 $ 8064 ac ery q p - 9090 Transfers Out 801000 80,000 80,000 80.000 Total Capital Outlay and Transfers $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ - Department Total: $ 113,609 $ 122,700 $ 105,519 $ 122,700 $ _ " Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 91 of 114 0.00% 0.00% 0.00% 0.00% 0.00% 000% 0.00% 438 424 334 424 1,874 1,817 1,427 1,817 151 608 562 423 562 $ 33,295 $ 31,901 $ 25,205 $ 31,901 $ - 10,485 - 10,485 314 314 314 314 $ 314 $ 10,799 $ 314 $ 10,799 $ 8064 ac ery q p - 9090 Transfers Out 801000 80,000 80,000 80.000 Total Capital Outlay and Transfers $ 80,000 $ 80,000 $ 80,000 $ 80,000 $ - Department Total: $ 113,609 $ 122,700 $ 105,519 $ 122,700 $ _ " Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 91 of 114 0.00% 0.00% 0.00% 0.00% 0.00% 000% 0.00% " Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 91 of 114 0.00% 0.00% 0.00% 0.00% 0.00% 000% 0.00% City of Kenai Fiscal Year 2015 Year to Date Actual Fund: 006 - Personal Use Fishery Fund Department: 33 - Streets * Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 92 of 114 Council' Account Expense Number Adopted Projected Year to Date FY2015 Projected % Description FY2015 Suclit Actual Projected Variance Available Salaries and Benefits 0100 Salaries 0200 Overtime $ 13,895 $ 12.931 $ 8,945 $ 12,931 $ - 0.00% 0250 Holiday Pay - - 820 820 820 - 0300 Leave 422 127 _ - 127 - - 0400 Medicare 207 198 138 198 - 0.00% 0450 Social Security _ - 0.00% 0500 PIERS 0600 Unemployment Insurance 6,117 4,200 1,210 4,200 - 0 0.00% 0700 Workers Compensation P 71 476 22 577 22 - 0.00% 0800 Health & Life Insurance 3,688 2,867 440 1,807 577 0.00% 0900 Supplemental Retirement 381 543 2,867 - 0 0.00 /o Total Salaries & Benefits $ 25,259 $ 22,285 281 $ 13,641 $ 543 22,285 $ 0.00% _Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 11,230 9,346 6,346 9,346 2024 Small Tools/Minor Equipment - _ - " 2025 Snack Bar Supplies _ 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation - 4534 Advertising - 4535 Printing & Binding _ 4536 Insurance 134 134 134 134 4537 Utilities - 4538 Repair & Maintenance - 660 4539 Rentals 14,850 25,550 560 17,900 560 25,550 4540 Equip. Fund Pmts. _ ' 4541 Postage - _ _ - 4666 Books _ - 4667 Dues & Publications _ 4999 Contingency - 2,500 _ 5041 Miscellaneous _ - 2,500 100% 5045 Depreciation _ - 6047 Grants to Agencies _ Total Malnt. and Operations $ 26,214 $ 36,090 $ 24,940 $ 35,590 $ 2,500 9.54% Capital Outlay & Transfers 8061 Land 8062 Buildings _ _ - - - 8063 Improvements _ 8064 Machinery & Equipment 9090 Transfers Out 7,200 7,200 7,200 7,200 Total Capital Outlay 0.00% and Transfers $ 7,200 $ 7,200 $ 7,200 $ 7,200 $ 0.00% Department Total: $ 58,673 $ 67,575 $ 45,781 $ 65,075 $ 2,500 3.70% * Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 92 of 114 City of Kenai Fiscal Year 2015 Year to Date Actual Fund: 006 - Personal Use Fishery Fund Department: 45 - Parks, Recreation & Beautification . Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 93 of 114 Council Account Expense Adopted Projected Year to Date FY2015 Projected % Number Description FY2015 Budget Actual Proected Vadance Available Salaries and Benefits $ 31,682 $ 28,692 $ 19,798 $ 28,692 $ - 0.00% 0100 0200 Salaries Overtime 25,261 27,522 27,522 27,522 - 0.00% 0250 Holiday Pay - - - - 0300 Leave 315 831 181 815 - 684 181 815 - - 0.00% 0400 0450 Medicare Social Security 2,661 2,846 2,580 2,846 - 0.00% 0500 PERS 6,178 4,200 895 4,200 - 0.00% 0600 Unemployment Insurance 286 44 - 44 - 0.00% 0700 Workers Compensation 1,844 1,711 1,563 1,711 - 0.00% 0800 Health & Life Insurance 1,266 2,192 1,099 2,192 - 0.00% 0900 Supplemental Retirement 260 205 25 205 0.00% Total Salaries & Benefits S 70,684 $ 68,408 $ 54,166 $ 68,408 $ Maintenance and Operations 2021 2022 Office Supplies Operating & Repair Supplies - 6,000 - 6,929 - 4,682 " 6,929 - 0.00% 2024 Small Tools /Minor Equipment 4,500 2,953 2,953 2,953 - - 2025 Snack Bar Supplies - - - 2026 Computer Software - - - - 4531 Professional Services 3,500 10,615 2,115 10,615 - 0.00% 4532 Communications 2,090 1,515 415 1,515 - 4533 Travel & Transportation - - - 4534 4535 Advertising Printing &Binding 4,000 16,660 6,940 16,660 - 0.00% 4536 Insurance 1,336 1,336 1,336 1,336 - 4537 Utilities 996 996 172 996 - - 4538 4539 Repair & Maintenance Rentals - 82,100 - 105,25 4 - 104,054 105,254 - - 0.00% 4540 Equip. Fund Pmts. - - - 4541 Postage - - 4666 Books - - - 4667 Dues & Publications - - - 5,000 100% 4999 Contingency - 5,000 - - 5041 Miscellaneous 7,500 7,500 7,500 7,500 - - 5045 Depreciation - - - 5047 Grants to Agencies - - Total Maint. and Operations $ 112,022 $ 156,758 $ 130,167 $ 153,758 $ 5,000 4.46% Capital Outlay & Transfers 8061 Land - _ 8062 Buildings - - - 8063 Improvements 20,000 8064 Machinery & Equipment 26,340 26,685 26,685 26,685 - - 9090 Transfers Out 27,700 27,700 27,700 27,700 Total Capital Outlay and Transfers $ 74,040 $ 64,385 $ - 54,385 $ 54,385 $ Department Total: $ 266,646 $ 281,551 $ 238,718 $ 276,551 $ 5,000 1.78% . Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 93 of 114 City of Kenai Fiscal Year 2015 Year to Date Actual Fund: 006 - Personal Use Fishery Fund Department: 60 - Boating Facility Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 94 of 114 Council Account Expense Adopted Projected Year to Date FY2015 Available % Number Description FY2015 Budget Actual Protected Bu. daet Avaliable Salaries and Benefits 0100 0200 Salaries Overtime $ 19,691 $ 25,316 $ 24,625 $ 25,316 $ 0.00% 0250 Holiday Pay 6,411 _ 11,988 _ 11,988 11,988 ' 0.00% 0300 Leave 331 35 - 35 0400 0450 Medicare Social Security 383 534 523 534 0.00 °h 0500 PERS 697 1,118 1,118 1,118 0.00% 0600 Unemployment Insurance 6,543 133 5,030 2,363 5,030 0.00% 0700 Workers Compensation 678 4 1,187 - 1,163 4 1,187 0.00% 0800 Health & Life Insurance 2,992 3,645 3,487 3,645 0.00% 0900 Supplemental Retirement 312 366 365 0.00% Total Salaries & Benefits $ 38,371 $ 49,223 $ 45,632 $ 366 49,223 $ 0.00% 0.00% Maintenance and Operations 2021 Office Supplies 2022 Operating & Repair Supplies 2,800 3,889 3,889 3.889 2024 Small Tools/Minor Equipment _ _ - 0.00% 2025 Snack Bar Supplies _ _ 2026 Computer Software 4531 Professional Services 4532 Communications 4533 Travel & Transportation - - 4534 Advertising 800 - 4535 Printing & Binding 2,000 1,550 1,550 1,550 0.00% 4536 Insurance 241 241 241 241 - 0.00% 4537 Utilities ' 4538 Repair & Maintenance _ _ 4539 4540 Rentals Equip, Fund Pmts. 9,615 - 14,064 14,064 14,064 " 0.00% 4541 Postage _ _ _ - 4666 Books _ 4667 Dues & Publications 4999 Contingency - 2,500 5041 Miscellaneous - 2,500 100.00% 5045 Depreciation 5047 Grants to Agencies Total Maint and Operations $ 15,456 $ 22,244 $ 19,744 $ 19,744 $ 2,500 16.17% Capital Outlay & Transfers 8061 Land 8062 Buildings - _ - - 8063 Improvements 25,000 - 8064 Machinery & Equipment _ _ - - - 0.00% 9090 Transfers Out 10,900 10,900 10,900 10,900 Total Capital Outlay and Transfers $ 35,900 $ 10,900 $ 10,900 $ 10,900 $ 0.00% Department Total: $ 89,727 $ 82,367 $ 76,276 $ 79,867 $ _2,500 3.04% Council Adopted Budget includes annually adopted budget and carryforward encumbrances Page 94 of 114 Operational Requests - Police 2 Each TEO's to be hired June 1, 2015 for field training prior to fishery. 180 hours each with no overtime. staff TEO Total A. SMALL TOOLS AND MINOR EQUIPMENT 1. Hard - mounted Radio for Boat 2. 2 each Rescue Skid with seat for Polaris Rangers 006 - 421 -0100 $ 6,077.00 006 - 421 -0400 90.00 006 - 421 -0450 390.00 006 - 421 -0700 139.00 006 - 421 -2024 10, 485.00 Total $ 17,181.00 Rate Per Hour Hours Total $ 18.60 360 $ 6,696.00 Page 95 of 114 $ 6,696.00 $ 3,885.00 6,600.00 $ 10,485.00 A. PRINTING 1. DIP NET BROCHURES 2. DEC WATER QUALITY BROCHURES 3. DOOR HANGERS 4. FEE ENVELOPES B. OPERATING /REPAIR SUPPLIES 5. HANGHOLE BAGS (1,000 /CS) 6. 21P TIES (5,000 /CS) 7. MISC. SIGNS C. SOFTWARE MODIFICATION AND MAINTENANCE 8. Point of Sale software modifications and improvements 9. Point of Sale upgrade for Ipad Compatability D. NORTH BEACH PARKING LOT SURVEY 10. Surveying Operational Request P &R 15,000 $ 0.17 15,000 $ 0.17 40,000 $ 0.10 2,000 $ 0.31 30 $ 55.00 2 $ 36.00 E. SIGN INSTALLATION (OLD TOWN, EAGLE ROCK RD, CANNERY RD. & SILVER SALMON) 10. Flat Bed Truck 40 $ 30.00 11. Fuel for Truck 1 $ 125.00 12. Parks & Rec Operator 40 $ 43.13 13. Parks & Rec Temp. Grounds Maintenance Worker 40 $ 13.30 F. Contract administration, hiring, planning, and supervision 14. Parks & Rec. Director 15. Parks & Rec Operator 16, Temporary Administrative Assistant 1 17. PERS On- behalf Funding G. Utilities 18. Fee Shack Electric 19. Fee Shack Data Connectivity Total 006- 445 -0100 $ 8,894.00 006 - 445 -0300 181.00 006 - 445 -0400 131.00 006 -445 -0450 266.00 006 - 445.0500 3,305.00 006 - 446 -0600 44.00 006 - 445 -0700 148.00 006 -445 -0800 1,093.00 006 - 445.0900 180.00 006- 445 -4531 8,500.00 006 - 445 -4532 11100.00 006 - 445 -4535 9,720.00 006 - 445 -4537 824.00 006 -445 -4539 1,200.00 006.445 -2022 2,247.00 Total 60 40 177 Page 96 of 114 $ 63.83 $ 43.13 $ 23.38 $ 2,550.00 2,550.00 4,000.00 620.00 $ 9,720.00 $ 550.00 72.00 1,500.0 $ 2,122.00 $ 3,500.00 3,000.00 $ 6,500.00 $ 2,000.00 $ 1,200.00 125.00 1,725.00 532.00 $ 3,582.00 $ 3,830.00 1,725.00 4,138.00 2,292.00 $ 11,985.00 $ 824.00 1,100.00 $ 1,924.00 Operational Requests Streets Equipment Rental to place signage and construct beach access roads prior to June 30, 2014. Page 97 of 114 Rate Per Equipment Hour Hours Total Vactor Truck $ 120.00 10 $ 1,200.00 Flat Bed Truck $ 30.00 10 300.00 Bucket Truck $ 50.00 10 500.00 160 Grader $ 120.00 10 1,200.00 14H Grader $ 120.00 10 1,200.00 10YD Dump Truck $ 60.00 20 1,200.00 Loader $ 60.00 20 1,200.00 4000 Gallon Water Truck $ 50.00 10 500.00 Calcium Chloride Truck $ 35.00 10 350.00 Total $ 7,650.00 Rate Per Staff Hour Hours Total Foreman $ 53.80 20 $ 1,076.00 Lead Operator $ 50.50 10 $ 505.00 Operator 1 $ 45.00 110 $ 4,950.00 PERS On- Behalf $ 2,113.00 Total $ 8,644.00 Supplies Miscellaneous Signs $ 3,000.00 Total $ 19,294.00 006 - 433 -0100 $ 3,986.00 006 - 433 -0300 127.00 006 - 433 -0400 60.00 006- 433 -0500 2,990.00 006- 433 -0600 22.00 006 - 433 -0700 137.00 006 - 433 -0800 1,060.00 006 - 433 -0900 262.00 Sub Total Wages & Benefits $ 8,644.00 006- 433 -4539 $ 7,650.00 006 - 433 -2022 $ 3,000.00 Total $ 19,294.00 Page 97 of 114 Operational Requests Dock Manage installation and rerigging of no wake signage. Rate Per Staff Hour Hours Total Foreman $ 53.80 20 $ 1,076.00 PERSOn- Behalf $ 2,515.00 Total $ 3,591.00 006- 433 -0100 $ 691.00 006- 433 -0300 35.00 006 - 433 -0400 11.00 006 - 433 -0500 2,667.00 006 - 433 -0600 4.00 006- 433 -0700 24.00 006 - 433 -0800 158.00 006 - 433 -0900 1.00 Sub Total Wages & Benefits $ 3,591.00 Page 98 of 114 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2805 -2014 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ACCEPTING AND APPROPRIATING SUPPLEMENTAL GRANT FUNDING FROM THE FEDERAL AVIATION ADMINISTRATION AND FROM THE STATE OF ALASKA FOR THE AIRFIELD MARKING PROJECT. WHEREAS, the Airport has completed a project to remark its airfield in response to a letter of correction from the Federal Aviation Administration (FAA) indicating that the airfield marking were faded and without reflective beads which created a safety issue; and, WHEREAS, a final adjusting change order has been issued to the Airport's consultant for work on the project increasing the allowable federal and state share by $9,296 and $310 respectively; and, WHEREAS, FAA funding approval has been received for the change order. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. Form. That this is a non -code ordinance. Section 2. That the City Manager is authorized to accept additional grant funding from the Federal Aviation Administration and the State of Alaska in the amounts of $9,296 and $310 respectively for the Kenai Municipal Airport's Airfield Marking Project and to execute grant agreements and to expend the grant funds to fulfill the purpose and intent of this ordinance. Section 3. That estimated revenues and appropriations be increased as follows: Airport Improvement Capital Project Fund Increase Estimated Revenues: $9,296 Federal Grants 310 State Grants $2,60 Increase Appropriations: Airfield Marking Project Construction Page 99 of 114 Ordinance 2805 -2014 Page 2 of 2 Section 4. That pursuant to KMC 1.15.0700 this Ordinance shall take effect immediately upon adoption. ENACTED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December, 2014. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: December 3, 2014 Enacted: December 17, 2014 Effective: December 17, 2014 Nee' Text Underlined; [DELETED TEXT BRACKETED Page 100 of 114 "Villa9e with a Past, C# with a Future FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 / To: Rick Koch, City Manager From: Terry Eubank, Finance Director Date: November 25, 2014 Re: Ordinance 2805 -2014 The purpose of this memo is to recommend passage of Ordinance 2805 -2014. Ordinance 2805- 2014 will appropriate additional federal and state revenues for the Airport's Airfield Marking Project. Final adjusting change orders increased the design and construction administration contract by $17,567.50 which increased the projects allowable federal share by $9,296 and the allowable state share by $310. Sufficient local funds were available in the project to provide the required 3.125% match and the final adjusting change order and grant increase have been approved by the FAA. Page 101 of 114 [PAGE LEFT BLANK INTENTIONALLY] Page 102 of 114 Suggested by: Administration CITY OF KENAI ORDINANCE NO. 2806 -2014 AN ORDINANCE OF THE ESTIMATED COUNCIL O KENAI, TED REVENUES AND APPROPRIATIONS BY$66,847IN THE AIRPORT FUND AND IN THE AIRPORT IMPROVEMENT CAPITAL PROJECT FUND AND REDIRECTING PREVIOUSLY APPROPRIATED AMOUNTS FROM COMPLETED AIRPORT PROJECTS OR PROJECTS WITH EXCESS AIRPORT MATCHING FUNDS FOR THE SMALL TAXIWAYS AND AIRCRAFT TIE DOWN REHABILITATION PROJECT. WHEREAS, the Airport is requesting funds to prepare the design and bidding of a project for small taxiways and aircraft tie down rehabilitation at the Kenai Municipal Airport; and, WHEREAS, the administration has received confirmation these services will be eligible for 93.75% FAA and 3.125% State of Alaska reimbursement upon completion of the grant application and award for the small taxiways and aircraft tie down rehabilitation project; and, WHEREAS, project design and administration costs are estimated at $139,040 and will be initially paid using airport funds but $130,350 (93.75 %) will be reimbursed upon grant award by the FAA and an additional $4,345 will be reimbursed by the State of Alaska Department of Transportation; and, WHEREAS, excess Airport matching contributions are available from the Airfield Marking Project ($10,991) and the Obstruction /Tree Removal Project, ($58,052) for redirection to this project; and, WHEREAS, Airport Improvement Capital Project Fund, Fund Balance in the amount of $3,150 from various other completed projects is available for reappropriation; and, WHEREAS, the remaining $66,847 is available in the Airport Special Revenue Fund to complete the initial funding of the project. NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, that estimated revenues and appropriations be increased as follows: Section 1. Form. That this is a non -code ordinance. Section 2. That estimated revenues and appropriations be increased as follows: Airport Fund Increase Estimated Revenues: $66.847 Appropriation of Fund Balance New Text Underlined; ]DELETED TEXT BRACKETED] Page 103 of 114 Ordinance No. 2806 -2014 Page 2 of 2 Increase Appropriations Transfer to Capital Projects Fund $ _ .847 Abort Improvement Capital Proiect Fund Increase Estimated Revenues: Transfer from Airport Fund Appropriation of Fund Balance $66,847 3.150 $§"97 Increase Appropriations Engineering $ Section 3. That previously appropriated fund be redirected as follows: Airfield Markine Proiect Decrease authorized funding - Construction _Obstruction /Tree Removal- $10,991 Decrease authorized funding - Construction 58.052 $ 043 Small Taxiways and Aircraft Tie Down Rehabilitation Increase authorized funding - Engineering Increase authorized funding - Administration $62'282 6.761 $b9,0-43 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of December 2014. ATTEST: Sandra Modigh, City Clerk Approved by Finance: PAT PORTER, MAYOR Introduced: December 3, 2014 Adopted: December 17, 2014 Effective: December 17, 2014 New Teat Underlined: pDE ml ED TEXT BRACKETED Page 104 of 114 "Villaye with a Past, C# with a Future" FINANCE DEPARTMENT 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 go: Rick Koch, City Manager //-From: Terry Eubank, Finance Director Date: November 25, 2014 Re: Ordinance 2806 -2014 The purpose of this memo is to recommend passage of Ordinance 2806 -2014. Ordinance 2806- 2014 will appropriate fund for design and administration of a project to rehabilitate the asphalt of taxiways F, G & H as well as the asphalt in the general aviation tie down area. The project has been deemed eligible by the FAA for reimbursement. $139,040 is needed for this phase of the project and must be initially provided using Airport Funds. Upon issuance of the project grant, which will take place after design and bidding of the work, all project costs will be eligible for 93.75% federal participation and 3.125% state participation. Funding for the $139,040 will come from a transfer from the Airport Special Revenue Fund in the amount of $66,847, fund balance in the Airport Capital Project Fund, the result of excess local funds from completed projects, $3,150, and excess local funds available in ongoing projects, $10,991 from the Airfield Marking Project and $58,052 from the Obstruction/Tree Removal Project. Page 105 of 114 [PAGE LEFT BLANK INTENTIONALLY] Page 106 of 114 "Villaye with a Past C# with a Future" 210 Fidalgo Avenue, Kenai, Alaska 99611 -7794 1III�1 Telephone: 907 - 283 -7535 / FAX: 907 - 283 -3014 199] MEMO: TO: Mayor and City Council Members FROM: Sandra Modigh, City Clerk DATE: November 13, 2014 SUBJECT: Planning & Zoning Commission Vacancy The Planning & Zoning Commission currently has a vacancy due to the resignation of Henry Knackstedt. All public notice /application requirements pursuant to KMC 14.05.015 have been met by the Clerk's Office. James Glendening, a current member of the Harbor Commission, has submitted an application expressing interest in filling the vacancy and completing Knackstedt's term expiring December 2016. Mayor Porter has requested this applicant be included in the packet for nomination. According to KMC 14.05.015 (c), Council shall consider confirmation of this nomination no later than the December 3rd meeting, but may confirm at the November 19th meeting. Attachment Page 107 of 114 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 the aYyof a'yPPROVED 13Y COUNCIL, 210 FIDALGO AVENUE KENAI, ALASKA KENAI, AK 99611 w/ Date: � 1 i� I k PHONE: 283 -7535, EXT. 8231 FAX: 283 -5068 DATE: NAME: T/aM -J / j5llfV ;may RESIDENT OF THE CITY OF KENAI? Y/ J HOW LONG? 2 RESIDENCE ADDRESS 45 9'�` MAILING ADDRESS Home Fax No. Business Fax No. _ May we include your Z L4/ A), Business Telephone Email Address: _ on our yyv�eb p ge? ALL If not all, EMPLOYER: _ %�G�/j /� JOB NAME OF SPOUSE: Telephone No. ?,P 3 - 7 K 7!— CURRENT MEMBERSHIP IN ORGANIZATIONS: " L yy/�f G -,'/ PAST ORGANIZATIONAL MEMBERSHIPS: OR COMMISSIONS IN WHICH YOU ARE INTERESTED: %��/�✓ YiN 9 91/�2oiV' 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? L H� ✓r' a ✓.c/i 3 S y,�i� s o f �/ /.ski �n�du,r >�, / ,�h ,o,<�� C o /7M i Page 108 of 114 9 T G r W W J U Z O U K O LL (D O O O O W) I 9 Z Q O O O O N N ffl Z W W LU LU m LU W ❑ O W N a 2 U a a 0 N M W m W U W ❑ LL O z Z H W W J U Z 7 O Q F- z D O a H a W m O O Z W o 0 N O O � N O O O N V C ( W w J IL (L U) U) c7 Z z (n z F- o � ry M p m O Q w w z w z w U 0 w Q J O U U) w O w (1) a J O O w cD Z_ Z p O Q O w O CL LLI w Z O m U Q N W U J LU IL a LU IL O a > OU U) = w W D O w m 5 0 M m Z Q O � S Q = U H CL LLJ O W (n Z Y Page 109 of 114 [PAGE LEFT BLANK INTENTIONALLY] Page 110 of 114 ALASKA STATE °-o ^P ELKS ASSOCIATION November 12, 2014 City of Kenai 210 Fidalgo Avenue Kenai, AK 99611 2014 -• 2015 ALASKA STATE ELKS ASSOCIATION, INC Joel Hembach. President 18850 War Admiral Road Eagle River, AK 99577 -8329 (907) 696 -7516 or (907)- 350 -0715 JON E. SHENNETr. President Elect MIKE SOUTHCOTT. Trustee Chair P.O. Box 2642 P.O. Box 4993 Sitka. AK 99835 -2642 Palmer, AK 996454993 KONKAO JACKSON, Vice President P.O. Box 2935 Soldouma, AK 99669 -2935 PAUL J. WHITNEY, Secretary 231 Knoll Circle Soldoina. AK 99669 -7352 AL NAGeL, Treasurer 19637 N. Montague Loop - Eagle River, AK 99577 Kerry Tomlinson -Daum, Trustee P.O. Box 672 Sitka, AK 99835 -0672 Rick MoureL Trustee 48645 Halibouty Road Kenai. AK 99611 ROGER R. TRUE, PGER/Alaska Sponsor 251 Thyme Circle Richland. WA 99352 The Alaska State Elks Association has applied for a renewal of our Gaming Permit to conduct raffles in the City of Kenai area through our Kenai Elks Lodge 2425. Pursuant to Alaska State Gaming Regulations we have enclosed a copy of our renewal application. If there should be any questions feel free to contact me at any time. Sincerely, �g L-_2� Paul J. Whitney, Secretary Alaska State Elks Association 231 Knoll Circle Soldoma, AK 99669 -7352 907 - 262 -5667 aseasecretarvDalive.com w ,A,%v.AlaskaStateE1 ks.org A FRATERNAL ORGANIZATION Page 111 of 114 Form 826 1 G Gaming Permittee AppOfiication 1 2015 Organization Information Federal EIN I If renewing, � i gaming permh h Phone Number Organizetlon Neme _ 07- Rv� "Jr�� A L s I c — _ 0 erganrraoon nave z5 or more members, as defined In your ar8eles of incorporation urbylaws, who are Akeka residents? W Yas ❑ ND Members in Charge of Games Members in charge must be natural persons and active members of the organization or employees of the municipality and desionatad by the ,.,,.�.,;,.,.;.... Members in charge may not be lirsnewl Legal Questions These questions must be answered. If you answer Yes to either question, see instructions. ❑ Yes ® No Does any member of management, or any person who n is responsible for gaming activities, have a prohibited D Yesr_y , No Has any member of management, or any person who is conflict of interest as defined by 15 AAC 160.954? responsible for gaming activities, ever been convicted of a felony, extortion, or a violation of a law or ordinance of this state, or another jurisdiction, that is a crime involving theft or dishonesty, or a violation of gambling laws? 'Ve declare, under penalty of t i sworn Ialsifi,pimt, drat we have examined ffiis appllcadon, including any attachments, and they to the bas fi our knowledge and belief, n is true and complete. We understand drat any false statement made on the applicadon or any attachments h wnlshable by law. By oursignatures below, vre, the primary member, the alternate member, andifappficable, the managerof gaming, agree is flow the Department of Revenue to review any criminal history we may have in accordance with 15AAC 160.034. ma nn h rw�,men, uae uNLY Pay online with OTIS at www.tax.alaska.gov or make check Validation k payable to State of Alaska. New applicants must pay by Permit Fee check. The permit fee is based on the 2014 estimated rocs ct. Check Ue a ro date box. ❑ Newapplignt $20 ❑ $0- $20,000 $20 � $20,001 - $100,000 $50 Email Address: dortax.gaming @alasks.goy ❑ 5100,001 or more $100 Mail to: Alaska Department of Revenue, PO Box 110420, Juneau AK 99811.0620 0405 -826 Rev 09130!14 - page 1 Page 112 of 114 0) F.m826 I Gaming Permittee Application 1 2015 laming Permit# Organization Namme L) 15 �1fJSICASnT�'E K��Il��hil7ti`�S �i�—iir. � r- ---- t —di A._—,—A% .. F..:f.6m eMnr6 n c raa �haot Facility Name Physical Address City State Zip Code Game type (check all that apply) ® Raffle ❑ Contest of skill ❑ Fish derby E] Dog musher' contest c C i< -1• . , rS ; ❑ Special draw raffle" ❑ Big Bull Moose Derby ❑ Classic/Other (specify) AK Zip Coded Faclity Type (check one) ❑ owned ❑ Leased ❑ Donated Game Type (check all that apply) ❑Bingo❑Rame ❑Pull- tabs ❑Animal classic (chicken)'❑ Animal classic (rat racer ❑Caladtapoot" Facility Name Physical Address City State AK Zip Code Fealty Type (check one) ❑ El ❑ Donated Game Type (check all that apply) Bingo ❑ Raffle ❑ Pufl-tabs ❑ Animal classic (ddckenr ❑Animal classic (rat racer ❑ calcutla pool° owned teased Bar or Liquor Store Name w -a aanrh a mnarafa nhaat. • raetricfed came Noe "sea instructions formandatory armcrlmems Area Game type (check all that apply) 0 Raffle ❑ Cordest of skill ❑ Fish derby ❑ Dog musher' contest Cpc i > L -r- ❑ Speciai draw raffle ° ❑ Big Bull Moose Derby ❑ Classid0ther (specify) Area Game type (check all that apply) ® Raffle ❑ Contest of skill ❑ Fish derby E] Dog musher' contest c C i< -1• . , rS ; ❑ Special draw raffle" ❑ Big Bull Moose Derby ❑ Classic/Other (specify) Manager First Name MI Manager Last Name Social Security Number Daytime Phone Number Home Mailing Address Email Mobile Phone City Slate Zip Coded Has the manager of gaming passed the test? Permit # under which test taken City State Zip Code ❑Yes ❑ NO v_ ._A k.... ., t......r.a.end 4 erg%f. meh vaMd rlicM hMnw Bar or Liquor Store Name Physical Address City state Sp Code AK Bar or Liquor Store Name Physical Address City State Zip Code AK Bar or Liquor Store Name Physical Address City State Zip Code AK Bar or Liquor Store Name PhysicalAddress City State AK Zip Code Bar or Liquor Store Name Physical Address City State AK Zip Code Operator Information Designate operator who wiz conduct activities on the organvation's behalf. Attach signed operating contract(s). f more than one operator, operator location, or fame type, atlach a separate sneet )peralor License # Operator Facllity Name Game Type(s) >hysicai Address City State Zip Code Multiple- Beneficiary Permittee information (nntstr) Designate the MBP with which the organization has signed a partnership or)oint venture agreement. MBP Permit# IMBPName Facility Name Game Type(s) Code Dedication of Net Proceeds Describe in detail how the organization will use the net proceeds from gaming activities. Gaming funds are used to help support the Youth Camp, a two week summer camp for 100 boys and 100 gins aged 9 -13, D.A.R.E. Program, Hoop Shoot, a free throw competition For boys and gins aged 7- 113, Soccer Shoot, for boys and girls aged 7 -13, other Youth Activities, Scholarships, Veterans Programs, Americanism and other state wide activities in support of our communities. — _ ---- egssoco -r�,.-J/30114 -page Page 113 of 114 2015 ALASKA GAMING PERMIT APPLICATION AREA -BASED GAMES Anchorage Area Municipality of Anchorage Anchorage Elks Lodge 2868 RAFFLE 3101 Penland Parkway, Suite A -14 Anchorage, AK 99523 Eagle River Area Municipality of Anchorage Eagle River Elks Lodge 2682 RAFFLE 17111 North Eagle River Loop Road Eagle River, AK 99577 Fairbanks Area City of Fairbanks Fairbanks Elks Lodge 1551 RAFFLE 1003 Pioneer Road Fairbanks, AK 99701 Wasilla Area Matanuska - Susitna Borough Palmer Elks Lodge 1842 RAFFLE 2600 North Barrys Resort Road Wasilla, AK 99645 Valdez Area City of Valdez Valdez Elks Lodge 2537 RAFFLE 339 Fairbanks Street (P.O. Box 1607) Valdez, AK 99686 Homer Area City of Homer Homer Elks Lodge 2127 RAFFLE 215 Jenny Lane Homer, AK 99603 Kenai Area City of Kenai Kenai Elks Lodge 2425 RAFFLE 205 Barnacle Way Kenai, AK 99611 Kodiak Area City of Kodiak Kodiak Elks Lodge 1772 RAFFLE 102 West Marine Way (P.O. Box 846) Kodiak, AK 99615 Soldotna Area Kenai Peninsula Borough Soldotna Elks Lodge 2706 RAFFLE 44640 Parkway Avenue Soldoma, AK 99669 Juneau Area City & Borough of Juneau Juneau Elks Lodge 420 RAFFLE P.O. Box 33239 Juneau, AK 99803 Ketchikan Area City of Ketchikan Ketchikan Elks Lodge 1429 RAFFLE 1448 Tongass (P.O. Box 5177) Ketchikan, AK 99901 Petersburg Area City of Petersburg Petersburg Elks Lodge 1615 RAFFLE 301 North First Street (P.O. Box 609) Petersburg, AK 99833 Page 114 of 114 NOTICE OF PUBLIC HEARING DECEMBER 3, 2014 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. 2800 -2014 — Accepting and Appropriating a Donation from Hilcorp Energy Company to Assist with the Annual Kenai Senior Center Thanksgiving Dinner. 2. Ordinance No. 2801 -2014 — Accepting and Appropriating a Grant from the State of Alaska Library for Employee Travel and Training. 3. Resolution No. 2014 -69 — Adopting an Alternative Allocation Method for the FY15 Shared Fisheries Business Tax Program and Certifying that this Allocation Method Fairly Represents the Distribution of Significant Effects of Fisheries Business Activity in FMA 14: Cook Inlet. 4. Resolution No. 2014 -70 — Amending Article IV, Rents and Fees of the Lease Form for Airport Reserve Lands between the City of Kenai and Legacy Electric, LLC for Lot 2, Block 1, General Aviation Apron, Located within the Airport Reserve. 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, 210 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. i� San Modigh, OMC, City Clerk Posted: November 26, 2014