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HomeMy WebLinkAboutResolution No. 2022-20KENAI CITY OF KENAI RESOLUTION NO. 2022-20 Sponsored by: Administration A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AIRLINE OPERATING AGREEMENT AND TERMINAL AREA LEASE WITH KENAI AVIATION. WHEREAS, Kenai Aviation desires to provide scheduled commuter passenger service at the Kenai Municipal Airport beginning in May 2022; and, WHEREAS, Kenai Aviation must sign the City of Kenai's Airline Operating Agreement and Terminal Area Lease to operate as a signatory operator at the Kenai Municipal Airport and secure terminal space; and, WHEREAS, on March 10, 2022 the Airport Commission recommended the Council authorize the City to enter into an Airline Operating Agreement and Terminal Area Lease with Kenai Aviation. WHEREAS, it is in the best interest of the City of Kenai and the Airport to authorize the City Manager to enter into an agreement with Kenai Aviation. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Manager is authorized to enter into an Airline Operating Agreement and Terminal Area Lease with Kenai Aviation using the City of Kenai's standard form for signatory operators.. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 6TH DAY OF APRIL, 2022. Q ST. ner, MC, City Clerk Jim Glendening, Vice Mayor New Text Underlined; [DELETED TEXT BRACKETED] V KENAI City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 I www.6naixity MEMORANDUM TO: Mayor Gabriel and Council Members THROUGH: Paul Ostrander, City Manager FROM: Eland Conway, Airport Manager DATE: March 1, 2022 SUBJECT: Resolution No. 2022-20 New Air Service Kenai Aviation is requesting to start scheduled operations out of the Kenai Municipal Airport Terminal Building beginning May 1, 2022. They intend to provide two roundtrip flights between Kenai and Anchorage, Monday through Friday. To receive the significantly reduced signatory rates & fees and operate out of the terminal, Kenai Aviation must sign the City of Kenai's Airline Operating Agreement and Terminal Area Lease, just like both RAVN Alaska and Grant Aviation have. The additional lift and flight options will benefit the airport and the entire Kenai Peninsula. The Airport Commission has reviewed and recommends the City of Kenai enter into such an agreement with Kenai Aviation. Thank you for your consideration. Kenai Aviation 101 N Willow St., Kenai, AK 99611 (907) 283-4124 www.kenaiaviation.com Dear Mr. Conway, Kenai Aviation, after many years of research, hard work, and dreaming, is finally in the position to become a scheduled operator out of our home airport here in Kenai. It is our intent to begin scheduled service around the time of May 1, 2022 . Proposing the following schedule for Monday -Friday operations: • 0430 ENA -ANC • 0530ANC-HOM • 0630 HOM-ANC • 0730 ANC-VDZ • 0830 VDZ-ANC • 1200 ANC -ENA • 1500 ENA -ANC • 1730 ANC-HOM • 1830 HOM-ANC • 1930 ANC-VDZ • 2030 VDZ-ANC • 2230 ANC -ENA We will be requesting the lease of Airline Tenant Space 3 in the Kenai Terminal and associated ramp and office spaces. Please forward any appropriate application and documentation for preparation of our terminal use agreement. Please contact Jacob Caldwell at 907-398-9447. Thank you for your attention and partnership in our exciting adventure. As you know, Kenai Aviation has done business as an airline in Kenai, AK since 1961. We are the oldest running family business in the City of Kenai. It is our privilege to serve our community with the addition of this scheduled service. Joel Caldwell Kenai Aviation 907-252-4878 W J Q U m O F- F- 0 - F - O z z z O m S F O W co y U) m W w J J LL L: (6 U) C6 N O m r � Q © O O G R } / x \ ( \ 2 § $ z k \ } \ k § EDL § ) . § 2 m / U: U: LL: LL LL: k\\§ k It ( o cuj .§ \k)k \ \ aj )}k ( ) *00 @ k ® | )G§& `!!! [ R } / x Kenai Municipal Airport Exclusive Space Annual Rate/Sq Ft. Joint Use Space #2 Annual Rate/Sq Ft. Joint Use Space #1 Annual Rate/Sq Ft. Apron/GSE Space Rent Signatory Landing Fee/(1,000#s) Joint Rent Subsidy % Tennant#3 Area Description Terminal Rent Exclusive use space: Room C Joint use space: Area #1 Baggage claim area Passenger hold room, arrival & departure area Total Joint Use Space Area #1 $ 35.54 Enplanements: Allocate $ 21.54 Tenant 1 45,879 61.33% $ 35.54 Tenant 2 25,547 34.15% $ 0.55 Tenant 3 3,380 4.52% $ 1.79 Tenant4 - 0.00% Terminal Apron/GSE Space Rent 10,730 74,806 100.00% 18% 670 $ 35.54 N/A N/A 1,095 $ 35.54 4.52% $ 1,758 $ 2,730 $ 35.54 4.52% $ 4,384 $ Area #2 Base Allocate Leased / Rental Prior Year d Joint Joint Rent Used Space Rate Enplanement Rental Subsidy Rental (sgft) (psfpy) % Amount Reduction Amount 670 $ 35.54 N/A N/A 1,095 $ 35.54 4.52% $ 1,758 $ 2,730 $ 35.54 4.52% $ 4,384 $ Area #2 Baggage make-up area 2,856 $ 21.54 4.52% $ 2,780 $ Baggage breakdown area 1,333 $ 21.54 4.52% $ 1,297 $ Total Joint Use Space Area #2 Total Terminal Rent Terminal Apron/GSE Space Rent 10,730 $ 0.55 N/A N/A Total Terminal & Apron GSE Space Rent Landing Fees Tennant #3 - Total Rents and Fees Projected Landed Wgt Landing (1,000#s) Fee Rate $ 1.79 Exhibit C Airline Rate Schedule N/A $ 23,812 (316) $ 1,442 (789) $ 3,595 $ 5,037 (SOD) $ 2,280 (233) $ 1,064 $ 3,344 $ 32,193 N/A $ 5,902 $ 38,095 Landing Fees $ 38,095 pe e o° o a° a° e eII ° e p 0 p (¢J Itx--x--�- p p m p p O I ° p ~O 0 p z p ° z i p 0 p ° 0 I o°oeo°eeoo° �I I I F- X 0 d It Q J d Z U� Z W DH I Q z LU Y 0 z Y oLL ¢eco a K m a¢a U Z Zi 2 Y a z¢ wW Y m x W LL LLLO U) Cl)LO 1:JD N3SSVd r3NOZ,kiL3=IVS z OLL �LL Q d z d > U) U) Q ^ O co z o0 W Y I I F- X 0 d It Q J d Z U� Z W DH I Q z LU Y 0 z Y oLL ¢eco a K m a¢a U Z Zi 2 Y a z¢ wW Y m x W