HomeMy WebLinkAboutResolution No. 2020-26JC Sponsored by: Administration
Kt;;NAI
CITY OF KENAI
RESOLUTION NO. 2020-26
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS
COMPREHENSIVE SCHEDULE OF RATES , CHARGES, AND FEES TO INCORPORATE
CHANGES INCLUDED IN THE FY2021 BUDGET TO INCLUDE ADJUSTING THE KENAI
MUNICIPAL AIRPORT APRON RENTAL RATES, AIRPORT RESERVE LAND ANNUAL LEASE
RATES, AND ADJUSTING THE MONTHLY RENTAL RATES AT VINTAGE POINTE.
WHEREAS, the Administration has determined the rental rates for non-signatory apron space on
the Kenai Airport are significantly undervalued considering 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 FY21 being the sixth and final year of this
plan; and,
WHEREAS, future increase will be evaluated annually and will likely be proposed to increase
commensurate with the Consumer Price Index for Anchorage {CPI), as defined in Kenai Municipal
Code 21.10.015; and,
WHEREAS , the proposed increase to Airport Reserve Land Annual Lease Rates is
commensurate with the 2019 annual change in Consumer Price Index for Anchorage and is a
required rate change under Kenai Municipal Code 21 .10.090{b); and;
WHEREAS, a rental rate study for Vintage Pointe was completed showing that unit rents were
below market value by an average $63.48 per month with the lowest monthly difference being
$39.17 per month and the highest difference being $94.61 per month; and,
WHEREAS, below market monthly rental rates at Vintage Pointe are budgeted to increase in
FY2021 in an effort to bring the rental rates closer to market rate rents as determined by the 2020
market rent study by Reliant, LLC; and,
WHEREAS, all units will increase by $35.00 a month in FY2021 and future rental increases will
equal the amount needed to achieve the market rental rate, based on the 2020 market rent study
and increase annually by Anchorage's annual CPI, not to exceed a maximum of $35 .00 per month
until the market rental rate is achieved; and,
WHEREAS, charging market rates will assist in providing adequate funds for ongoing and long-
term maintenance of the facility .
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Resolution No. 2020-26
Page 2 of 5
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA:
Section 1. The Airport Fees section of the City's Comprehensive Schedule of Rates, Charges
and Fees be amended as follows:
AIRPORT FEES
21 .05.085
APX-
Airport
Regulations
6 .05.070 (c)
6 .05 .070 (c)
6 .05 .070 (c)
6 .05 .070 (c)
6.05.070 (c)
14.05.010
(a)(2)
14.05.010
(b)(2)
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 -12,500 lbs. per
day
-transient, 12,501 -100,000 lbs .
per day
-transient, 100,001 lbs. per day
Landing Fees
Signatory per thousand pounds
Non-signatory per thousand pounds
exempt --float planes, test landings due to
mechanical or weather, government aircraft
Tie-down Fees, General Aviation
Paved Areas
-wheels, per month
-wheels, w/electric per month
Gravel Area
-wheels/skis, per month
Float Plane Basin, Private
-daily
-monthly
-season --May to October
Float Plane Basin, Commercial
-daily
-monthly
-s eason --May to October
-monthly w/electric
Terminal Building Rent --
Exclusive Space
-signatory -per square foot per
year
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$0 .02
FREE
$5.00
$50.00
$100.00
$250.00
$1.70
$2.21
$40 .00
$60 .00
$40.00
$5.00
$40.00
$250.00
$10.00
$50.00
$300.00
$75.00
$33 .85
Resolution No. 2020-26
Page 3 of 5
-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
Greater Than 1/4 Mile From
Terminal Building (at GA Lot)
-calendar day
-annual permit
Business Activity & Airport
Access Permit
-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
-turn fee (narrow body -(1 aisle)
-turn fee (regional 50 -99 seats)
-turn fee (commuter -fewer than
50 seats)
Helicopter Landing Fees
-Per Landing
Other Fees
-Taxi cab (per vehicle per pickup)
-Terminal building key replacement
(per key)
-Non-signatory airline airport apron
rental rate per square foot
-Signatory, airline, terminal apron
parking and GSE storage space rent
per square foot
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[$1.04]
$33.85
$20.51
$20.51
FREE
$7.00
$700.00
$1 ,000.00
$3.00
$420.00
$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
~
$0.52
Resolution No. 2020-26
Page 4 of 5
21 .10.090 Airport Reserve Land Annual
(a) Lease Rates
Legal Description of Property KPB [FY20] FY2 1
Parcel ID Annual Rent
No.
Lot 2, Block 2, FBO Subdivision 04336004 [$6,437.92] ~6.528 .08
NW 1/4 NW 1/4 Sec, 33 lying W of 04501056 Subject to
Marathon Rd. excluding Baron Park Appraisal
2007 Replat
Lot 8 , Block 2 , Cook Inlet Industrial 04322008 [$15,368.88] ~15,584.08
Air Park
Lot 3 , Block 5, Cook Inlet Industrial 04322020 [$5,840.16] ~5,921.92
Air Park
Lot 4, Block 5, Cook Inlet Industrial 04322021 [$5,884.16] ~5,966.56
Air Park
[Tract A, General Aviation Apron 04324025 Subject to
No.3 Appraisal]
Lot 9A, Block 5 , General Aviation 04324026 [$13,661.68] ~13,852 .96
Apron No. 6
Lot 1, Block 2, FBO Subdivision 04336003 [$6 ,701.68] ~6,795.52
[Lot 6 , Block 1, FBO Subdivision 04336016 $6,557.44
Lot 5, Block 1, FBO Subdivision 04336017 $6,557.44]
Lot 1, FBO Subdivision No. 7 04336034 [$12 ,546.00] ~12,721 .68
Lot 3, FBO Subdivision No . 7 04336036 [$17,773.52] ~18,022.32
Lot 5, FBO Subdivision No. 9 04336043 Subject to
Appraisal
Tract A 1, Baron Park 2007 Replat 04501031 [$35,858.80] ~36,360.80
Tract C-1 , Gusty Subd. No. 8 04327034 [$3,479,44] ~3,528.16
Portion of W1/2 of Sec. 28 & SE1/4, 04101021 Subject to
Sec. 29, T6N, R11W Appraisal
Portion of SW1/4, Sec. 29, T6N, 04101022 Subject to
R11W Excluding Airport Float Basin Appraisal
Re plat
Portion of Tract A, Kenai Airport 04318043 Subject to
Float Plane Basin Replat Appraisal
Portion Sec. 32, T6N, R11W 04318044 Subject to
Excluding Subs. & Leased Areas & Appra isal
Float Plane Basin
Tract A, FBO Subdivision 04336001 Subject to
Appraisal
Section 2. The Vintage Pointe Rents section of the City's Comprehensive Schedule of Rates,
Charges and Fees be amended as follows :
VINTAGE POINTE RENTS
FOR UNITS WITH RENTAL AGREEMENTS GRANDFATHERED
PER THE CITY'S POLICY BEFORE JUNE 30, 20[18]20:
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Resolution No. 2020-26
Page 5 of 5
1-A apartment=586 sq. ft. Ocean Side (8)
1-A apartment=586 sq . ft . Street Side (5)
1-B apartment=636 sq . ft. Street Side (6)
1-B apartment=637 sq . ft. Ocean Side (4)
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)
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=636 sq . ft. Street Side (6)
1-B apartment=637 sq . ft. Ocean Side (4)
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)
Monthly Automatic ACH Payment Fee
Note: All Vintage Pointe Rents are subject to a 2% discount for
payment by means other than credit card.
Section 3. That this Resolution takes effect July 1, 2020 .
$943.61
$891 .09
$906.83
$959.35
$959.35
$906.83
[$1,035.20] $1 ,070.20
$1.019.41
$1 .080 .17
$1 ,022 .39
$1 .064.40
[$908.61]
[$856 .09]
[$871 .83]
[$924.35]
[$924.35]
[$871.83]
[$1,045.17]
[$987.39]
[$1 ,045.17]
[$987.39]
[$1,029.40]
$0 .00
$958.00
$911.00
$930.00
$978.00
$995.00
$947.00
$1I121.00
$1,066 .00
$1I137.00
$1,082 .00
$1 ,108.00
$0 .00
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 20th day of May, 2020.
BRIAN GABRlEL, SR., MAYOR
ATTEST:
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City of Kena i I 210 f=id algo Ave, Ke na i, AK 99611 -7794 1907.283.7535 I www.kena i.ci ty
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Mary Bondurant, Airport Manager
May 8, 2020
Resolution No. 2020-26 FY2 1 I ncrease to Apron Rental Rates
On May 18, 2016, Council approved a six-year plan to increase aircraft apron parking rates to
market value .
Effective July 1, 2020, the apron rental rate per square foot will be increased from $1 .041 to
$1 .210. This will be the si xth rate increase to the six-year table .
Thank you for your cons ideration .
City of Kenai I 210 i=°i dal go Ave, Kena i, AK 99611 -7794 1907.283.7535 I www.ke nai.cily
MEMORANDUM
TO:
TH ROUGH :
FROM :
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Elizabeth Appleby , City Planner
May 14, 2020
Resolution No. 2020-26 FYI 21 -Lease Rates
Resolution 2020-26 will adjust lease rates for parcels within the Airport Reserve published in the
City's fee schedule. Kenai Municipal Code 21.10 .090(b) states that lease rates within the Airport
Reserve shall be , "adjusted annually based on the rate of inflation determined by the consumer
price index." The consumer price index (CPI) is defined in Kenai Municipal Code 21.10.015 as
follows : '"'Consumer price index (CPI)" means the CPI for all urban consumers (CPl-U) for
Anchorage, Alaska." The new proposed lease rates reflect this annual change in rent based upon
CPI, which is an approximate increase of 1.39% for FY21.
Three parcels were deleted from the proposed FY21 fee schedule. Parcel 04324025 was deleted
due to a pending lease. Parcels 04336016 and 04336017 were combined to become parcel
04336049, which also had a pending lease. The fee schedule only lists the lease rates for vacant
parcels within the Airport Reserve available to lease .
Thank you for your consideration.
City of Kenai I 2 10 !=ida lgo Ave. Kenai. AK 99611 -7794 1907.283.7535 I www.kena i.ci ly
MEMORANDUM
TO:
THROUGH:
FROM :
DATE:
SUBJECT:
Mayor Brian Gabriel and Kenai City Council
Paul Ostrander, City Manager
Kathy Romain , Senior Center Director
May 12, 2020
FY21 Vintage Pointe Rental Rates
Vintage Pointe Manor was built with the intention of being an independent sen ior housing facility
with rents to be based upon market rates. Earlier this year, the City commissioned a market rate
study that was performed by Reliant, LLC., which 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 future rental agreements will be at market rate . This plan has worked
well after the previous market study.
Thank you for your consideration.
City or Kenai I 210 ~id algo Ave , Kenai . AK 99611 -77941907.2 83.7535 I ww w.kenai.city
MEMORANDUM
TO:
THROUGH:
FROM:
DATE:
SUBJECT:
Mayor Gabriel and Council Members
Paul Ostrander, City Manager
Terry Eubank, Finance Director
May 28, 2020
Recommended Amendment to Previously Adopted Legislation, Resolution
2020-26
The purpose of this memo is to recommend amendment to previously adopted legislation,
Resolution 2020-26. Resolution 2020-26 amended the City's Comprehensive Schedule of Rates ,
Charges, and Fees for fee increases proposed and adopted in the FY2021 City Budget. Five of
the new rates calculated for Vintage Pointe Rents were incorrect and require amendment so all
units will see the same $35.00 per month increase. The following amendment is respectfully
requested:
Amend Section 2 , Vintage Pointe Rents for units with rental agreements grandfathered per the
City's policy before June 30, 2020 by amending
• the rental rate for apartments 1-B 637 sq ft Ocean Side to $959.35.
• the rental rate for apartments 1-C 682 sq ft Ocean Side to $959.35
• the rental rate for apartments 2-B 876 sq ft Street Side to $1,022.39
• the rental rate for apartments 2-B 876 sq ft Ocean Side to $1,080.17
• the rental rate for apartments 2-C 789 sq ft Ocean Side to $1,064.40
Your support is respectfully requested .