HomeMy WebLinkAboutResolution No. 2018-28fheeityef,
KENAI, ALASKA
"V"
CITY OF KENAI
RESOLUTION NO. 2018-28
Sponsored by: Administration
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 FY2019 BUDGET PROCESS TO INCLUDE ADJUSTING
MONTHLY RENTAL RATES AT VINTAGE POINTE AND INCREASING FEES AT THE KENAI
MUNICIPAL AIRPORT.
WHEREAS, below market monthly rental rates at Vintage Pointe, the City's senior housing facility,
are budgeted to increase in FY2019 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 ,
WHEREAS , units with market rate rents will increase by the Anchorage Consumer Price Index,
second half over second half for 2017 and units with rents below market rates will increase to
market rate or a maximum of $35.00 over FY2018 rates; and ,
WHEREAS, charging market rates will assist in providing adequate funds for ongoing and long-
term maintenance of the facility; and,
WHEREAS, the Administration has determined the rental rates for non-signatory, airline, apron
space on the Kenai Airport are significantly undervalued taking into account land values,
construction cost of improvements, and maintenance costs; and,
WHEREAS , undervalued rental rates for apron space is a significant deterrent to development of
airport lease lots; and ,
WHEREAS, the proposed increase is part of the administration's six year plan to increase non-
signatory airline apron rental rates to market value with FY19 being the fourth year of this plan;
and ,
WHEREAS, since FY2015 terminal rental rates of the Kenai Municipal Airport have increased
annually by the Anchorage Consumer Price Index; and,
WHEREAS, in an effort toward full cost recovery of terminal and airfield operational expenditures
a 5% increase is being proposed to terminal exclusive and joint use space rental rates, a 5%
increase in landing fees and a 5% increase in signatory, airline, terminal apron parking and GSE
storage space rent for FY2019 ; and,
WHEREAS, the national average cost per enplaned passenger at a non-hub airport is $9.48 and
with implementation of these proposed rate increases the average cost per emplaned passenger
at the Kenai Municipal Airport will be $5 .64; and ,
WHEREAS, recovery of operational expenditures will provide for the use of more permanent fund
earnings on capital and infrastructure improvement and is in the best interest of the Kenai
Municipal Airport; and ,
Resolution No. 2018-28
Page 2 of 4
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. The Vintage Pointe Rents section of the City's Comprehensive Schedule of Rates,
Charges and Fees be amended as follows:
FOR UNITS WITH RENTAL AGREEMENTS GRANDFATHERED PER THE CITY'S
POLICY BEFORE JUNE 30, 201 [7]!!:
[2-C APARTMENT=826 Sq . FT. OCEAN SIDE (1)
[2-B APARTMENT=876 Sq. FT. OCEAN SIDE (2)
2-A apartment=826 Sq. Ft. Ocean Side (3)
Monthly Automatic ACH Payment Fee
Note: All Vintage Pointe Rents are subject to a 2% discount for payment by
means other than credit card.
FOR UNITS WITH MARKET RATE RENTAL AGREEMENTS
1-A apartment=586 Sq. Ft. Ocean Side (8)
1-A apartment=586 Sq . Ft. Street Side (5)
1-B apartment=637 Sq. Ft. Ocean Side (4)
1-B apartment=637 Sq. Ft. Street Side (6)
1-C apartment=682 Sq . Ft. Ocean Side (4)
1-C apartment=682 Sq. Ft. Street Side (4)
2-A apartment=826 Sq. Ft. Ocean Side (3)
2-A apartment=826 Sq. Ft. Street Side (1)
2-B apartment=876 Sq . Ft. Ocean Side (2)
2-B apartment=876 Sq. Ft. Street Side (2)
2-C apartment=789 Sq . Ft. Ocean Side (1)
2-C apartment=826 Sq. Ft. Ocean Side (1)
Monthly Automatic ACH Payment Fee
[$ 871.92]
[$ 821 .52]
[$ 887.03]
[$ 836.63]
[$ 887.03]
[$ 836.63]
[$ 1,002.96]
[$ 947 .51]
[$ 1,002.96)
[$ 947 .51)
[$ 987 .83)
Note: All Vintage Pointe Rents are subject to a 2% discount for payment by
means other than credit card.
$ 977.441
$ 989.68]
$1.000.20
$-
$ 873 .66
$ 823 .16
$ 888 .80
$ 838 .30
$ 888.80
$ 838.30
$ 1,004.97
$ 949.41
$1.004.97
$ 949.41
$ 989.81
$1.004.97
$-
Section 2. The Airport Fees section of the City's Comprehensive Schedule of Rates, Charges
and Fees be amended as follows :
21.05.085
APX -Airport
Regulations
6.05.070 (c)
14.05.010
Fuel Flowage Fee per gallon
Aircraft Parking Fees
-transient, under 4 ,000 lbs . 0 -4 hrs.
-transient, under 4,000 lbs. over 4 hrs
-transient, 4,001 -25,000 lbs per day
-transient, 12,501 -100,000 lbs [OVER 4
HRS] per day
-transient, 100,001 lbs and over [AND OVER 4
HRS] per day
Landing Fees
(a)(2) Signatory per thousand pounds
New Text Underlined; [DELETED TEXT BRACKETED)
[$ 1.61)
$ 0 .02
FREE
$ 5.00
$ 50.00
$ 100.00
$ 250.00
Resolution No. 2018-28
Page 3 of 4
14.05.010
(b)(2) Non-signatory per thousand pounds [$ 2.12]
exempt --float planes, test landings due to mechanical o r
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
-wh eels/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
-floats/wheels w/electric per year
Float Plane Basin, Commercial
-daily
-monthly
-season --May to October
-floats/skis/wheels
-monthly w/electric
-season w/electric
Terminal Building Rent·· Exclusive Space
-signatory -per square foot per year
-signatory --arrival hallway, departure hallway,
passenger hold room & baggage claim area
(per square foot per year)
Terminal Building Rent -Joint Use Space
-signatory --baggage make up area (per
square foot per year)
-signatory --baggage break down area (per
square foot per year)
-non-signatory terminal rates 30% higher
Vehicle Parking Fees at Terminal
-short term 0 -2 hours
-24 hours
-annual permit
-annual parking permit w/electric
Vehicle Parking Fees [at GA Lot] Greater
Than % Mile From Terminal Building
-calendar day
-annual permit
Business Activity & Airport Access Permit
New Text Underlined; [DELETED TEXT BRACKETED]
[$ 32.24]
[$ 32.24]
[$ 19.53]
[$ 19.53]
$ 40.00
$ 360.00
$ 60.00
$ 420.00
$ 40.00
$ 360.00
$ 5.00
$ 40.00
$ 250.00
$ 360.00
$ 360.00
$ 420.00
$ 10.00
$ 50 .00
$ 300.00
$ 450 .00
$ 75.00
$ 550.00
$ 33.85
$ 33.85
$ 20.51
$ 20.51
FREE
$ 7.00
$ 700.00
$1,000.00
$ 3 .00
$ 420.00
Resolution No. 2018-28
Page 4 of 4
-mechanic access (per each)
-fueling access (annual)
-dispensing fee (per gallon)
-water extraction access (annual)
-non-tenant use of basin parking apron
-float plane parking apron (annual)
-Deposit/replacement proximity card fee
(each)
-Catering/mobile food service
Commercial Turn Fees
-tum fee (narrow body-(1 aisle)
-turn fee (regional 50 -99 seats)
-turn fee (commuter-fewer than 50 seats)
Helicopter L anding 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
-Non-signatory airline [A]2irport apron rental
rate per square foot
-Signatory, airline, terminal apron pa rking and
GSE storage space rent per square foot
Secti on 3. That th is resolution takes effect July 1, 2018.
$ 50.00
$ 100.00
$ 0 .02
$ 100.00
$ 75.00
$ 25.00
$ 100.00
$ 50.00
$ 200.00
$ 150.00
$ 100.00
$ 25.00
$ 1.00
$ 10.00
$1 .33]
[$ 0 .699] $ 0 .87
$0.52
PASSED BY THE COUNCIL OF THE CITY OF KENAI , ALASKA, this 6th day of J une , 2018.
New Text Underlined ; [DELETED TE XT BRACKETED)
'V/t'f ~ w/t/v a PaJ'~ Ct~ w/t/v a f"atare 11
2 10 Fidalgo A ve , Kenai , A laska 996 11-7794
Te lephone: (907) 283-7535 I Fax : (9 0 7) 283-3014
www.kena i.city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Terry Eubank, Finance Director
May 23, 2018
Resolution No. 2018-28 -FY2019 Budgeted Fee Schedule Changes
The purpose of the memo is to recommend passage of Resolution 2018-28 that amend the City's
Comprehensive Schedule of Rates, Charges and Fees for changes proposed in the FY2019
Budget.
Vintage Point Rents
Vintage Pointe Manor was built with the intention of being an independent senior housing facility
with rents to be based upon market rates. In 2015 the City commissioned a market rate study
that was performed by Derry & Associates. That study determined that rents were below market
rate. The City instituted a plan to increase rents to market rates by increasing rents annually by
a maximum of $35.00 until market rate was reached and then annually by the change in the
Anchorage Consumer Price Index. Any new tenants would immediately be charged market rates.
The FY2019 Budget includes a continuation of this plan with 34 units increasing 0.20%, the
increase in the Anchorage Consumer Price Index four units increasing to market rate but less
than $35.00 per month and two units increase the maximum of $35.00 per month. The next
scheduled market rent study will be performed in FY2019 for implementation in FY2020.
Airport Fees
The proposed amendment to the Airport's Airline Operating Agreement calls for a 5% increase in
landing fees, terminal rents, and signatory, airline, terminal apron parking and GSE storage space
rent.
The rate for non-signatory airline apron rental is in the fourth-year of a six-year plan to achieve
market rate for the space. The FY2019 Budget includes an increase of $0.1701 per square foot
per month from $0.699 to $0.87.
Your support for Resolution 2018-28 is respectfully requested.
'litff~ UJ/t/t, a Pair~ Ct'tj UJ/t/t, a Fu.t~ 11
210 Fida lgo Ave , Kenai , Alaska 99611 -7794
Telephone : (907 ) 283-7535 I Fax: (907) 283-3014
www.kenai .city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Kathy Romain, Senior Center Director
May 25, 2018
FY19 Vintage Pointe Rental Rates
This Memo is in support of Resolution No. 2018-28, adjusting rental rates at Vintage Po inte
Manor.
Vintage Pointe Manor was built with the intention of being an independent senior housing facility
with rents to be based upon market rates. In 2015 the City commissioned a market rate study
that was performed by Derry & Associates. That study determined rents were below market rate.
The City instituted a plan to increase rents to market rates by increasing rents annually by a
maximum of $35.00 until market rate was reached and then annually by the change in the
Anchorage Consumer Price Index. Any new tenants would immediately be charged market rates.
The FY2019 Budget includes a continuation of this plan with 34 units increasing 0.20%, the
increase in the Anchorage Consumer Price Index and six units increase the maxiumum of $35.00
per month. With this increase, 38 units will be at the current market rate. The next scheduled
market rent study will be performed in FY2019 for implementation in FY2020 .
Thank you for your consideration.