HomeMy WebLinkAboutResolution No. 2015-29Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2015 -29
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS
COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES TO INCORPORATE
CHANGES TO BE ADOPTED IN THE FY2016 BUDGET PROCESS TO INCLUDE
INCREASING MONTHLY RENTAL RATES AT VINTAGE POINTE, INCREASING
AIRPORT TERMINAL RENTS AND OTHER FEES, CHANGES TO PERSONAL USE
FISHERY FEES, AND INCREASING FEES FOR WATER AND SEWER SERVICE.
WHEREAS, monthly rental rates at Vintage Pointe, the City's senior housing facility,
are budgeted to increase in FY2016 in an effort to bring the rental rates closer to
market rate rents as determined by the 2015 market rent study by Derry and
Associates, and to ensure adequate funds are available for ongoing and long -term
maintenance of the facility; and,
WHEREAS, the Kenai Municipal Airport Airline Operating Agreement that was
originally adopted by Resolution 2008 -27 has been amended to extend the term of the
agreement period through May 31, 2018 with an increase in terminal exclusive and
joint space rental rates and landing fees of 5.0% the first year effective June 1, 2013
with annual increases based on the previous year's rates increased by the percentage
of the increase in the U.S. Bureau of Labor Statistics (BLS) Consumer Price Index (CPI)
for all Urban Consumers - Anchorage Metropolitan Statistical Area (MAS) for each
subsequent year of the agreement; and,
WHEREAS, effective July 1, 2015 the landing fees and terminal rents will increase by
1.4% based on the BLS CPI; and
WHEREAS, the first amendment to the Airline Operating Agreement involved
negotiations with the current airlines, ERA Aviation and Grant Aviation each of which
agreed to the amendment; and,
WHEREAS, the Administration has determined the rental rates for apron space on the
Kenai Airport are significantly under what should be charged taking into account land
values, construction cost of improvements, and maintenance costs; and,
WHEREAS, undervaluing the rental rates for apron space is a significant deterrent to
development of airport lease lots; and,
WHEREAS, the administration has developed a five year plan to increase apron rental
rates to market value with FY16 being the first year of this plan; and,
WHEREAS, in 2011 the City commissioned a Water and Sewer Rate Study to study the
City's water &. sewer rate structure and to determine and recommend any changes to
New Text Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2015 -29
Page 2 of 10
that structure to ensure the utility can continue to operate and provide the necessary
funding to maintain its infrastructure; and,
WHEREAS, the Water and Sewer Rate Study recommended annual increases in water
and sewer rates to provide funding for infrastructure maintenance and expansion and
to ensure the financial stability of the fund; and,
WHEREAS, the addition of a "NO WAKE" zone, to protect the property of Kenai
residents, on the Kenai River during the personal use fishery has significantly
increased the cost of operating the City's Dock; and,
WHEREAS, an increase in fees is appropriate to recover the additional costs
associated with operating the City's Dock during the personal use fishery; and,
WHEREAS, a change in hours for Day Use Parking is needed to assure all users of the
personal use fishery are paying fees commensurate with the services being provided to
them; and,
WHEREAS, an amendment to airport parking fees is recommended to reflect a
difference in parking rates more than '/< mile from the Airport Terminal building; and,
WHEREAS, adoption of these changes with a July 1, 2015 effective date is needed now
to allow for proper notice to renters, lease holders, utility customers and to allow for
preparation of fee materials for personal use fishery participants.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that certain sections of the City's Comprehensive Schedule of Rates, Charges
and Fees be amended as follows:
CITY DOCK FEES
Product wharf age (with crane; without forklift)
Non - product wharf age (ice, nets, staples, etc.)
Used Oil Dumping
Boat Launch Ramp
Excluding days of the personal use dip net fishery
Non - Commercial Users
Commercial Users
- (Includes Parking with Trailer) - First 10 minutes
-Each minute over 10
- Season Boat Launch Pass
Personal Use Fishery Days - All Users
- (Includes Parking with Trailer) - First 10 minutes
-Each minute over 10
[- SEASON BOAT LAUNCH PASS
Parking Only
Excluding days of the personal use dip net fishery
Non - Commercial Users
Commercial Users
New Text Underlined; [DELETED TEXT BRACKETED]
$ 0.07 /lbs.
$ 0.04 /lbs.
NO FEES
[$ 25.00] $35.00
$ 1 /minute
$ 150.00
$ 25.00
$ 1 /minute
$ 150.00]
NO FEES
Resolution No. 2015 -29
Page 3 of 10
-Per day (Vehicle with trailer must pay launch fee
[ALSO])
Personal Use Fishery Days - All Users
-Per day (Vehicle with trailer must pay launch fee
[ALSO])
[- SEASON PARKING PASS
Tie Up Fee
-Skiff tied to land side of concrete dock - per day
-Skiff tied to land side of concrete dock - season pass
-Boat tied to buoy in river - per day
-Boat tied to buoy in river - season pass
Forklift with operator (1 /2 hour minimum) - per hour
Labor charge for call-out (2 hour minimum) - per hour
AIRPORT FEES
21.05.085 Fuel Flowage Fee per gallon
APX - Airport
Regulations
6.05.070 (c)
14.05.010
(a)(2)
14.05.010
(b)(2)
Aircraft Parking Fees
- transient, under 4,000 lbs. 0 - 4 hrs.
- transient, under 4,000 lbs. over 4 hrs
- transient, 4,001 - 25,000 lbs per day
- transient, 12,501 - 100,000 lbs [OVER 4
HRS] per day
- transient, 100,001 lbs and over [AND
OVER 4 HRS] per day
Landing Fees
Signatory per thousand pounds
[$ 15.00]
[$ 1.58]
Non - signatory per thousand pounds [$ 2.07]
exempt -- float planes, test landings due to mechanical
or weather, government aircraft
Tie -down Fees, General Aviation
Paved Areas
- wheels, per month
- wheels, per year
- wheels, w /electric per month
- wheels, w /electric per year
Gravel Area
- wheels /skis, per month
- wheels /skis, per year
Float Plane Basin, Private
-daily
- monthly
- season -- May to October
- floats /wheels per year
- floats /wheels /skis per year
New Test Underlined; [DELETED TEXT BRACKETED]
$ 15.00
20.00
$ 100.00]
$ 7.00
$ 150.00
$ 10.00
$ 150.00
$ 50.00
$ 40.00
$ 0.02
FREE
$ 5.00
$ 50.00
$ 100.00
$ 250.00
1.60
2.10
$ 40.00
$ 360.00
$ 60.00
$ 420.00
$ 40.00
$ 360.00
$ 5.00
$ 40.00
$ 250.00
$ 360.00
$ 360.00
Resolution No. 2015 -29
Page 4 of 10
- floats /wheels w /electric per year
$ 420.00
Float Plane Basin, Commercial
Space
-daily
$ 10.00
- monthly
$ 50.00
- season -- May to October
$ 300.00
- floats /skis /wheels
$ 450.00
- monthly w /electric
$ 75.00
- season w/ electric
$ 550.00
Terminal Building Rent -- Exclusive
Space
- signatory - per square foot per year
[$31.51]
$31.95
- signatory -- arrival hallway, departure
hallway, passenger hold room 8s
baggage claim area (per square foot per
year)
[$31.51]
$31.95
Terminal Building Rent -- Joint Use
Space
- signatory -- baggage make up area (per
square foot per year)
[$ 19.091
19.36
- signatory -- baggage break down area
(per square foot per year)
[$ 19.09]
$19.36
- non - signatory terminal rates 30% higher
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]
Greater Than Y. Mile From Terminal
Buildine
- 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
$ 100.00
New Text Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2015 -29
Page 5 of 10
seats)
Helicopter Landing Fees
-Per landing
Other Fees
-Taxi cab (per vehicle per pickup
- Terminal building key replacement (per
key)
- Aircraft ramp rental fee (per square foot
per year)
- Airport apron rental rate per square foot
$ 25.00
$ 1.00
$ 10.00
1.311 $1.33
0.357
VINTAGE POINTE RENTS
[$ 839.28]
FOR UNITS WITH RENTAL AGREEMENTS [DATED] GRANDFATHERED PER
THE CITY'S POLICY BEFORE JUNE 30, 201[3]5:
1 -B apartment =637 Sq. Ft. Ocean Side (4)
1 -A apartment =586 Sq. Ft. Ocean Side (8)
[$ 799.00]
1 -A apartment =586 Sq. Ft. Street Side (5)
[$ 762.28] _
1 -B apartment =637 Sq. Ft. Ocean Side (4)
[$ 811.24] _
1 -B apartment =637 Sq. Ft. Street Side (6)
[$ 774.52] _
1 -C apartment =682 Sq. Ft. Ocean Side (4)
[$ 823.48] _
1 -C apartment =682 Sq. Ft. Street Side (4)
[$ 786.761 _
2 -A apartment =826 Sq. Ft. Ocean Side (3)
[$ 872.441
2 -A apartment =826 Sq. Ft. Street Side (1)
[$ 835.72] _
2 -B apartment =876 Sq. Ft. Ocean Side (2)
[$ 884.681 _
2 -B apartment--876 Sq. Ft. Street Side (2)
[$ 847.96] _
2 -C apartment =789 Sq. Ft. Ocean Side (1)
[$ 860.20] _
Monthly Automatic ACH Payment Fee
Note:All Vintage Pointe Rents are subject to
a 2% discount for
payment by means other than credit card.
FOR UNITS WITH MARKET RATE RENTAL AGREEMENTS [DATED AFTER
JUNE 30, 2013]:
1 -A apartment =586 Sq. Ft. Ocean Side (8)
[$ 839.28]
1 -A apartment =586 Sq. Ft. Street Side (5)
[$ 791.78]
1 -B apartment =637 Sq. Ft. Ocean Side (4)
[$ 855.121
1 -13 apartment--637 Sq. Ft. Street Side (6)
[$ 807.611
1 -C apartment--682 Sq. Ft. Ocean Side (4)
[$ 876.231
1 -C apartment =682 Sq. Ft. Street Side (4)
[$ 828.72]
2 -A apartment =826 Sq. Ft. Ocean Side (3)
[$ 961.301
2 -A apartment-826 Sq. Ft. Street Side (1)
[$ 907.90]
2 -B apartment =876 Sq. Ft. Ocean Side (2)
[$ 976.521
2 -B apartment =876 Sq. Ft. Street Side (2)
[$ 923.74]
2 -C apartment =789 Sq. Ft. Ocean Side (1)
[$ 950.13]
Monthly Automatic ACH Payment Fee
Note:All Vintage Pointe Rents are subject to a 2% discount for
payment by means other than credit card.
WATER FEES
APX - Public Utility Regulations and Rates
New Tent Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2015 -29
Page 6 of 10
1. Schedule A -
General Domestic Service Rates (non - metered)
-one or two family residence, per family unit
[ $ 28.06
$30.87
- single or double unit apartment, per family unit
[ $ 28.06
$30.87
- apartment, 3 or more units under one roof, per
[ $ 43.36
$47.70
family unit
[ $ 71.81
$78.99
- single bill assumed by owner
[ $ 21.14
$23.25
- separate bill
[ $ 28.06
$30.87
- trailers, one or two on single lot, each
[ $ 28.06
$30.87
- trailer, 3 or more on single lot
- single billing
[ $ 21.14
$23.25
- separate billing
[ $ 28.06
$30.87
- boarding houses, per available room
[ $ 7.47
$8.22
2. Schedule B -
Commercial service (non- metered)
-demand
-1.00 inch service
[ $ 28.46
$31.31
-1.25 inch service
[ $ 43.36
$47.70
-1.50 inch service
[ $ 71.81
$78.99
-2.00 inch service
[ $ 108.381
$119.22
-3.00 inch service
[ $ 162.59
$178.85
- larger than 3.00 inch service
[ $ 243.87
$268.26
-use charge
- bakery
[ $ 82.64
$90.90
-bath house, tub or shower, each
[ $ 18.99
$20.89
- bottling works, per bottling machine
[ $ 653.03
$718.33
- bowling alleys, amusement parks, doctor
[ $ 78.57
$86.43
-car lot, with car wash facilities
[ $ 39.30
$43.23
-car wash, automatic, per facility
[ $ 352.24
$387.46
-car wash, self - service, per stall
[ $ 52.83
$58.11
- churches, lodges, clubs, banquet rooms, per seat
[ $ 0.30
$0.33
- cleaners and commercial laundries, per facility
[ $ 226.25
$248.88
- dairies, installation of water meter required
-day care center/ preschool, per child, maximum
capacity
[ $ 1.13
$1.24
- doctor and dentist offices, per room or chair
[ $ 16.64
$18.63
- garage, service stations
( $ 33.87
$37.26
- recreational vehicle dump facility (May -
September)
[ $ 39.30
$43.23
- hangar, airplane repair
[ $ 33.87
$37.26
-with washing facilities
[ $ 39.28
$43.21
New Text Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2015 -29
Page 7 of 10
- hospital, per bed
[ $ 22.37
$24.61
- hotel, motel, resort, per room
[ $ 17.60
$19.36
- laundry, self service, per machine
[ $ 31.86
$35.05
- markets, meat
[ $ 43.36
$47.70
- office building single bill assumed by owner, per
business
[ $ 37.92
$41.71
-office building, tenants are billed, per business
[ $ 43.36
$47.70
- restaurants, cafes, taverns, bars, per seat
[ $ 2.44
$2.68
-public office building, per restroom
[ $ 9.76
$10.74
- recreation facility, per restroom, sauna, shower
[ $ 18.99
$20.89
-ry /camper park, per space
[ $ 18.991
$20.89
- schools, per seating capacity
[ $ 1.13
$1.24
- shopping center
[ $ 19.67
$21.64
- shops, beauty, per station or chair
[ $ 19.67
$21.64
- shops, misc. (includes barber), per shop
[ $ 19.67
$21.64
- sleeping room, per room
[ $ 7.47
$8.22
- studio, photo or photo lab
[ $ 92.81
$102.09
- supermarket
[ $ 222.88
$245.17
- theater, indoor, per seat
[ $ 0.13
$0.14
- theater, outdoor, per seat
[ $ 0.13
$0.14
- taverns, lounges, bars (without kitchens), per seat
[ $ 2.32
$2.55
-x -ray or lab office
[ $ 50.56
$61.12
3. Schedule C -
Industrial Service (non - metered)
- concrete mixing plant
[ $ 357.651
$393.42
- concrete products
[ $ 178.85
$196.74
- confectioner
[ $ 119.21
$131.13
- greenhouse, commercial
[ $ 119.21
$131.13
-ice cream plant
[ $ 178.85
$196.74
-cold storage plant or locker
[ $ 84.01
$92.41
4. Schedule D -
Fire Protection
None
S. Schedule E -
Metered Service
- general usage, per thousand gallons [ $ 2.711 $2.98
- hydrant use, per thousand gallons [ $ 4.07 $4.48
- minimum monthly charge, general usage [ $ 40.66 $44.73
6. Schedule F -
New Text Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2015 -29
Page 8 of 10
Permit fee
$ 204.00
Note: All Water Fees are subject to a 2% discount for payment by means other than
credit card.
SEWER FEES
APX - Public Utility Regulations and Rates
1. Schedule A -
General Domestic Service Rates (non - metered)
[ $ 48.49
$49.94
-one or two family residence, per family unit
[ $ 48.04
$49.48
- single or double unit apartment, per family unit
[ $ 48.04
$49.48
- apartment, 3 or more units under one roof, per
[ $ 182.28
$187.75
family unit
[ $ 275.94
$284.22
- single bill assumed by owner
[ $ 36.12
$37.20
- separate bill
[ $ 48.04
$49.48
- trailers, one or two on single lot, each
[ $ 48.04
$49.48
- trailer, 3 or more on single lot
[ $ 31.77
$32.72
- single billing
[ $ 36.12
$37.20
- separate billing
[ $ 48.04
$49.48
- boarding houses, per available room
[ $ 12.97 ]
13.36
2. Schedule B -
Commercial service (non- metered)
-demand
-1.00 inch service
[ $ 48.49
$49.94
-1.25 inch service
[ $ 71.90
$74.06
-1.50 inch service
[ $ 122.08
$125.74
-2.00 inch service
[ $ 182.28
$187.75
-3.00 inch service
[ $ 275.94
$284.22
- larger than 3.00 inch service
[ $ 414.74
$427.18
-use charge
- bakery
[ $ 140.47 ]
144.68
-bath house, tub or shower, each
[ $ 31.77
$32.72
- bottling works, per bottling machine
[ $1,113.76 ]
$1,147.17
- bowling alleys, amusement parks, doctor
[ $ 134.63
$138.67
-car lot, with car wash facilities
[ $ 66.89
$68.90
-car wash, automatic, per facility
[$598.691
616.65
-car wash, self - service, per stall
[ $ 89.47
$92.15
- churches, lodges, clubs, banquet rooms, per seat
[ $ 0.50
$0.52
- cleaners and commercial laundries, per facility
[ $ 384.63
$396.17
- dairies, installation of water meter required
-day care center /preschool, per child, magnum
capacity
[ $ 1.93 ]
1.99
New Text Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2015 -29
Page 9 of 10
- doctor and dentist offices, per room or chair
[ $ 28.85 ]
$29.72
- garage, service stations
[$58.531
60.29
- recreational vehicle dump facility (May -
[ $ 304.37
$313.50
September)
[ $ 66.89
$68.90
- hangar, airplane repair
[ $ 58.11
$59.85
-with washing facilities
[ $ 66.89
$68.90
- hospital, per bed
[ $ 38.47
$39.62
- hotel, motel, resort, per room
[$29.681
30.57
- laundry, self service, per machine
[ $ 53.94
$55.56
- markets, meat
[ $ 73.59
$75.80
-office building single bill assumed by owner, per
business
[ $ 63.56
$65.47
-office building, tenants are billed, per business
[ $ 73.59
$75.80
- restaurants, cafes, taverns, bars, per seat
[ $ 4.27
$4.40
-public office building, per restroom
[ $ 16.72
$17.22
- recreation facility, per restroom, sauna, shower
[ $ 32.19
$33.16
-rv/camper park, per space
[ $ 32.19
$33.16
- schools, per seating capacity
[ $ 1.93 ]
1.99
- shopping center
[ $ 33.45
$34.45
- shops, beauty, per station or chair
[ $ 33.45
$34.45
- shops, misc. (includes barber), per shop
[ $ 33.45
$34.45
- sleeping room, per room
[ $ 12.97
$13.36
- studio, photo or photo lab
[ $ 158.87 ]
163.64
- supermarket
[ $ 379.62 J
391.01
- theater, indoor, per seat
[ $ 0.23
$0.24
- theater, outdoor, per seat
[ $ 0.23
$0.24
- taverns, lounges, bars (without kitchens), per
seat
[ $ 4.01
$4.13
-x -ray or lab office
[ $ 94.49
$97.32
3. Schedule C -
Industrial Service (non- metered)
- concrete mixing plant
[ $ 610.41
$628.72
- concrete products
[ $ 304.37
$313.50
- confectioner
[ $ 202.35
$208.42
- greenhouse, commercial
[ $ 202.35
$208.42
-ice cream plant
[ $ 304.37
$313.50
-cold storage plant or locker
[ $ 142.15
$146.41
4. Schedule D -
Fire Protection None
New Text Underlined; DELETED TEXT BRACKETED]
Resolution No. 2015 -29
Page 10 of 10
S. Schedule E -
Metered Service
- general usage, per thousand gallons
- hydrant use, per thousand gallons
- minimum monthly charge, general usage
6. Schedule F -
Permit fee
[ $ 4.76 $4.90
[ $ 71.45 $73.59
$ 204.00
Note: All Sewer Fees are subject to a 2% discount for payment by means other than
credit card.
BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
this Resolution shall be effective on July 1, 2015.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May,
2015.
ATTEST:
Sandra Modigh, City Clerk
Approved by Finance:
PAT PORTER, MAYOR
New Text Underlined; [DELETED TEXT BRACKETED]
Resolution No. 2015 -29
Page 10 of 10
5. Schedule E -
Metered Service
- general usage, per thousand gallons
- hydrant use, per thousand gallons
- minimum monthly charge, general usage
6. Schedule F -
Permit fee
[$4.76] $4.90
[ $ 71.451 $73.59
$ 204.00
Note: All Sewer Fees are subject to a 2% discount for payment by means other than
credit card.
BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA,
this Resolution shall be effective on July 1, 2015.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May,
2015.
PAT PORTER, MAYOR
ATTEST:
New Text Underlined; [DELETED TEXT BRACKETED]
u
"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
To: Rick Koch, City Manager
From: Terry Eubank, Finance Director
Date: May 13, 2015
Re: Recommendation for passage of Resolution 2015 -29.
The purpose of the memo is to recommend passage of Resolution 2015 -29 that amend the City's
Comprehensive Schedule of Rates, Charges and Fees for changes proposed in the FY2016 Budget
and other changes being requested by the Airport Director. Changes included in the FY2016 Budget
will be addressed in this memo and separate memos from the Senior Center Director and the Airport
Manager.
Non - resident Library Card Fee
The Kenai Community Library has approximately 11,000 registered users (card holders) of which
65% (7,150) are not residents of the City. The FY2016 proposed budget includes a $20.00 per card
fee for non - resident users of the library. The proposed fee is estimated to generate $25,000 per year
in revenue and will reduce the subsidy for non - resident users provided by City of Kenai property tax
payers.
Vintare Point Rents
The FY16 proposed budget, includes Vintage Pointe revenue projections that include a $35.00 per
month increase in the rents of each unit. This increase is the third year of plan adopted with the
FY14 Budget. The adopted plan will increase unit rents until market rate rents are achieved. Market
rate rents are determined by a market rate study performed by a licensed appraiser. This study will
be performed every five years (in years ending in 0 and 5) and will be adjusted annual for the change
in Anchorage's consumer price index. A study was completed in 2015 by Derry and Associates.
The maximum one year increase will be limited to $35.00 while moving towards market rate rents.
Market rate rents will be applied to the rental agreements of any new tenants of Vintage Pointe. The
FY16 result of the plan's implementation will be for the rent of all units to increase $35.00 per
month ($420.00 annually) and will generate and additional $9,478 in annual revenue for the fund.
The remaining $10,596 of the FY16 projected revenue increase is a result of new tenants who rental
rate is adjusted to market rates at the time of signing a new lease.
Water and Sewer Utility Rates
The City's consultant, CH2MHi11 completed a water and sewer rate study for the City in 2011. The
study concluded a schedule of rate increases is needed that based upon current operating costs and
capital needs of the Water and Sewer Fund. The FY2016 Budget includes the year four
recommended increase for the fund.
Increasing rates will ensure the City has operating reserves sufficient to maintain and operate the
utility for its customers as well as provide matching funds for replacement and upgrades to the
utilities infrastructure. The combined rate for single family water and sewer service will increase
from $79.05 to $83.46, including sales tax, for customers paying by means other than credit card.
ftm-_. "Se#vCn th &GreaterKeuLa/pP.vuv4+.+.I.a:'
Hai
Municipal Airpo,
Memo
To:
From:
Date:
Subject:
3WfL"WMSr.SUnE200 KMMJI ASKAMMI
TEIFFHOW9 7.70-7A'i1
FAXW7,28"M
Rick R. Koch - City Manager
Terry Eubank — Finance Director
Mary Bondurant — Airport
May 13, 2015
FY16 Increases to Airline Operating Agreement Rates & Fees &
Apron Rates
In accordance with the June 2013 First Amendment to the Airline Operating Agreement,
landing fees and terminal area rents will incur annual increases based on the previous
year's rates increased by the percentage of the increase in the U.S. Bureau of Labor
Statistics (BLS) Consumer Price Index (CPI) for all Urban Consumers — Anchorage
Metropolitan Statistical Area (MAS) for each subsequent year of the agreement.
Non - signatory landing fees and terminal area lease rates continue to be thirty percent
(30 %) higher than the signatory rates.
In addition, the rates currently charged for aircraft parking or operations (fueling,
loading/off- loading, etc.) on the apron are not sufficient to cover the operating costs
associated with the services being provided; sealcoating, plowing, sanding, crack sealing,
improvements, etc.
I recommend increasing the landing fees and terminal area lease rates by 1.4% BLS CPI
effective July 1, 2016 and implementing the five year plan to bring the rates charged for
aviation use of the commercial apron to market value.
Please contact me if you have any questions.
www.kenaiairport.com