HomeMy WebLinkAboutOrdinance No. 2161-2006Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. 2161-2006
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA INCREASING
ESTIMATED REVENUES AND APPROPRIATIONS BY $21,000 IN THE TERMINAL
ENTERPRISE FUND FOR UTILITIES.
WHEREAS, utility costs have increased during FY2006; and,
WHEREAS, as the Terminal utility budget is insufficient to cover estimated FY2006
utility costs; and,
WHEREAS, funds are available in the Terminal Enterprise fund unappropriated
retained earnings account.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA
that estimated revenues and appropriations be increased as follows:
Terminal Enterprise Fund
Increase Estimated Revenues:
Appropriation of Retained Earnings
$21,000
Increase Appropriations:
Utilities
$21,000
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 172h day of May,
2006.
~~~
PAT PORTER, MAYOR
ATTEST:
~~~~~~~
Carol L. Freas, ~City Clerk
Introduced: May 03, 2006
Adopted: May 17, 2006
Effective: May 17, 2006
Approved by Finance:
(04/26/2006) hl
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305 Pl. WILLOW ST. Sl71TE 200 I~JAI, ALASKA 99611
TELEPHONE ~7 2837951
FAX ~7 2$33737
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To: Larry Semmens - Finance Director
From: Rebecca Cronkhite - Airport Manager ~~~--
Date: April 26, 2006
Subject: Airport Utility Costs
The large increases in the cost of utilities require significant reallocation of funds to meet this
year's expenses. I have researched the possible causes for these increases and discovered
the following:
Natural Gas: Reports from EnStar show that usage at the Operations facility has remained
stable in relationship to average monthly temperatures. The increase in this account is
attributable to a 34% increase in cost. In the Terminal account there is a significant increase in
usage coinciding with the installation of heated sidewalks, exacerbated by the increase in cost.
Electrical Costs: In reviewing the electrical costs the usage appears consistent with
temperature fluctuations. In speaking with HEA, the power costs fluctuate quarteriy, however
we have experienced a blended rate increase of approximately 22% this year. It should be
noted that the percentage increase in electrical includes all the runway lighting.
it is apparent that we need to take steps to assess utility usage in all of our properties. We
currently have a policy of turning off lights in the Operations Facility when workers leave for the
day. The Terminal is more difficult as it is practicaily a 24 hour faciiity when you factor in the
janitoriai staff cleaning after the last flight. The security cameras in the Terminal and parking
lots also function more effectively with the lights on. It should be noted that all leases and
concessions in the Terminal inciude heat and lights. We should evaluate the increased utility
costs and consider an increase in rental rates. We aiso provide outside plug-ins for ground
handling equipment to the air carriers. We are looking at the cost of installing a separate meter
for those outlets or charging an additional monthly rate for their usage. We are also evaiuating
the need to increase the rate for aircraft electrical parking. The increase cost for the heated
sidewalks is offset by reduced costs in snow and ice control and safety of the traveling public.
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