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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.