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FY2007-39 Disposal of Borough Land - Tracts BKODIAK ISLAND BOROUGH RESOLUTION NO. FY2007 -39 Introduced by: Manager Gifford Requested by: Manager Gifford Drafted by: Planning & Zoning Com. Introduced: June 7, 2007 Adopted: June 7, 2007 A RESOLUTION OF THE KODIAK ISLAND BOROUGH ASSEMBLY DECLARING AN 84.38 ACRE PORTION OF BOROUGH LAND, DESCRIBED AS TRACTS B1, B2, B3 AND B4 -A, BELLS FLATS ALASKA SUBDIVISION AS SURPLUS TO BOROUGH NEED, AND AUTHORIZING THE BOROUGH MANAGER TO NEGOTIATE DIRECTLY WITH THE PETITIONER FOR A DISPOSAL OF BOROUGH LAND BY LEASE FOR FAIR MARKET VALUE WHEREAS, KIB Code 18.20.120 allows the Borough Assembly to authorize the Borough Manager to negotiate directly with parties requesting a disposal of interest in Borough land; and WHEREAS, KIB Code 18.20.060 allows citizens to apply for a disposal of interest in Borough land; and WHEREAS, KIB Code 18.60.010 allows the Borough Assembly to approve contracts for the sale of "materials" owned by the borough; and WHEREAS, KIB Code 18.40.010 allows the Borough Assembly to establish specific leasing procedures by resolution; and WHEREAS, the Planning and Zoning commission, after holding a public hearing on the request, determined by resolution that Tracts B1, B2, B3, and B4 -A are surplus to borough need and recommended a disposal by lease for fair market value subject to certain stipulations that are recommended that the Assembly include in the proposed lease agreement to meet certain planning and community objectives; NOW, THEREFORE, BE IT RESOLVED, BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THAT Section 1: That an 84.38 acre portion of borough land described as Tracts B1, B2, B3 and B4 -A, Bells Flats Alaska Subdivision is hereby declared surplus to the borough's need and authorized for disposal to the petitioner Brechan Enterprises, Inc., by lease for full and true market value for the purpose of resource extraction. Section 2: The Assembly, in accordance with KIBC Title 18, hereby authorizes the Borough Manager to negotiate with the petitioner, Brechan Enterprises, Inc., for a short-term lease, which includes a material sales contract, with similar terms and conditions as in the current lease and other relevant provisions of KIBC Title 18. The short-term lease and materials sales contract will be presented to the Assembly for their approval. Section 3: The Assembly, in accordance with KIBC Title 18, hereby authorizes the Borough Manager to negotiate with the petitioner, Brechan Enterprises, Inc., for a Tong -term lease, which includes a material sales contract, in accordance with relevant provisions of KIBC Title 18. The long -term lease and material sales contract will be presented to the Assembly for their approval. Section 4: The Assembly hereby acknowledges the stipulations that were recommended by the Planning & Zoning Commission and request the manager to consider these items during the negotiation of the long -term lease. Kodiak Island Borough, Alaska Resolution No. FY2007 -39 Page 1 of 2 1. A reclamation plan, subject to approval by the Assembly, shall be developed in the initial five (5) year lease period as part of this disposal to provide for the reclamation of the lease area at the time resource extraction activities are to be concluded. The process of reclamation should be phased in over time for areas no longer subject to active extraction activities. 2. The lessee is required to coordinate with the appropriate regulatory agencies with regard to extraction and reclamation activities to ensure compliance with existing regulations affecting the extraction use and the potential impact of that use on surrounding habitat and residential areas. 3. The minimum extraction depth of the existing lease agreement will be restated in a new lease agreement as a maximum extraction depth subject to Assembly approval through lease negotiation. 4. A hydrologic plan be developed for this site and be revisited on a regular basis through the terms of the lease. 5. The lease shall be for a period of five (5) years with two three (3) year renewals at the discretion of the Assembly. 6. The Assembly may permit a "temporary lease" of the lease area, under the provisions of the existing lease agreement, for a period not to exceed six (6) months from the normal expiration of that agreement on June 30, 2007, in order to allow for the full negotiation of a successor lease agreement. Should a lease agreement not be approved by the Assembly after this time, extraction operations will cease after December 31, 2007 and the demobilization requirements of the existing lease agreement for the site will be in effect at that time. 7. Hours of operation (per Brechan Enterprises, Inc. letter March 1, 2007) shall be 7 a.m. to 7 p.m., Monday through Saturday, with no work on Sundays. 8. The buffer zones, laid out in the Brechan Enterprises, Inc. letter dated March 1, 2007, shall be maintained and kept in a topography that blends smoothly into the surrounding area. 9. All prudent efforts shall be used to minimize the noise level during operations. ATTEST: ADOPTED BY THE ASSEMBLY OF THE KODIAK ISLAND BOROUGH THIS SEVENTH DAY OF JUNE 2007 Kodiak Island Borough, Alaska , Borough Clerk KODIAK ISLAND BOROUGH ,( Jerome M. Selby, . er-M Resolution No. FY2007 -39 Page 2 of 2