HomeMy WebLinkAboutResolution No. 2013-30£He uty of
Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2013 -30
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, APPROVING
THE FIRST AMENDMENT TO THE AIRLINE OPERATING AGREEMENT AND
TERMINAL AREA LEASE AND AUTHORIZING THE CITY ENTER INTO SUCH
AGREEMENT WITH LAKE AND PENINSULA AIRLINES. INC.
WHEREAS, the City of Kenai is the owner and operator of the Kenai Municipal Airport;
and,
WHEREAS, the administration working with an airport consultant has developed an
amendment to the current airline operating agreement and terminal area lease; and,
WHEREAS, the airline operating agreement and terminal area lease has modernized
the airport airline terminal leasing procedures and policies and increased airport
operating revenue; and,
WHEREAS, the administration has consulted with the three regularly scheduled
passenger airlines currently operating at the Kenai Municipal Airport regarding the
agreement; and,
WHEREAS, non - signatory airlines operating out of the passenger building will pay an
additional 30% for landing fees than signatory airlines; and,
WHEREAS, it is in the best interest of the City of Kenai to authorized the City Manager
to enter into such agreement with Era Aviation, Inc., on behalf of the City.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, that: 1) the Kenai City Council approves the First Amendment to the Airline
Operating Agreement and Terminal Area Lease form as shown in Exhibit 1; and 2) the
Kenai City Manager is authorized to enter into such agreement with Lake and
Peninsula Airlines, Inc.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this I Sth day of May,
2013.
PAT PORTER, MAYOR
ATTEST:
Sand (!a o igh, City Clerk
.r-
Municipal Airport
Memo
"Servi,nWthe,g1 YK� A�l
305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611
TELEPHONE 9072837951
FAX 9072833737
To: Rick R. Koch — City Manager
From: Mary L. Bondurant - Airport Mana
Date: May 7, 2013
Subject: Resolution 2013 -30 -First Amendment to Airline Operating Agreement
& Terminal Area Lease
Attached to this memo is the First Amendment, to the Kenai Municipal Airport Airline Operating
& Terminal Area Lease signed by Lake and Peninsula Airlines, Inc., for City Council approval
and Administration execution. The current agreement which has been in place since June 1,
2008 expires on May 31, 2013.
During the past several months, Airport and City Administration, along with Steve Horton of
Liebowitz & Horton, evaluated financial costs associated with Airport operations. Based on this
evaluation, an amendment to the current agreement was successfully negotiated with a 5% rate
increase from 2013 to 2014 and each year following an increase for the term of the amendment
will be limited to CPI adjustments.
I recommend approval of this first amendment to the airline operating agreement.
Please contact me if you have any questions.
Attachments
www.ci.kenai.ak.us.
I�
i
p
i
R I
R� I
r u.
x�a �
'J N
�
II
IIo
a
' II
II
= II -
� II
� II
I o
W
J
a
U
0
o
z
U)
III o
I II
� II
L -1 ) �
it
U) U)
W J
W
U
Q
d
O W
IL
� � a
Q d) m
a aa U
U
w W
Q Y
Z F-
Y m
x
W
Z
O
U)
Lijm
J
J
m
0
W
U
Z_
! —__— -
n I
I
� � I
I I
� demryeH ,unueU3p
I � I
a J'S 6flZ � r
II�H Ieuiaj I P
� II
m
L_ OLL C LLl 1 p
m m c a
w� �f
�) 9
A313
l�
I
I e �
1
LU
Q
U)
0
0
z
I z
I o
s cn
i
I
_ I
I
A
oN
J J
IL w
Q � �
a�
U Z
z o a
W
m Y
Z
W m
Y
w
Z
O
}
00
J
J
W
F
0
O
V
W
U
Z
�...�f
05/08/2013 21:48 9077812280
LAKEANDPENAIR
PAGE 09/09
/
EXHIBIT C
AIRUNE RATE SCHEDULE
KENAI MUNICIPAL AIRPORT
City. of Kenai; Alaska
Oi luh -]3,
ann��nc�a1<,ai.iz3
Calculation :of Terminal Rent; Apron Space Rent and Landing Fees (1)
2014 Terminal Rent
k�n
(a) (b) (c)
(e)
Actual Utilization Adjusted Projected
Square AdlushnentSpuare Bate.Rental Enp(anament -.
Rental
- Area
Feat 2 Feet.. Rata PerceMa e.
Amount
oat on
. .
544 -. $30.44.
EXdusiveusespao9�
joint use spats:. -
Baggage make-up area
2.400 88:28 %° 1,839 $18.+k5 0,52%
$18;45 0.52%
- .$158
Baggage breakdown area
980 68:29% 658
1,200 68.29% 819 $30.44 - 0.52%
$130
..
Baggage claim area
passenger holdro0m, arrival and
1,824 8829 °k -. .1248 $30.44 0.52°4,
$198
-
departure:haliways.
.
$1T,109
Total Terminal Rent:
-
.2014 Terminal ron S ace Rent.
Allocated
- Rental Rate
Apron
Space
-
-
.
Square
s
fte t:
Feet
Termina).ApronAircraR
$0.46.
.
. PaAdng S.GSE,5pke Rent
.
105
..:..
.
-
2014Landin
Paes
.
Projected - Landkg
-
Landed vvgt Fee
Landing.
.
1;0006 Rate
Faft
832 3 $1.54
$1215
Lands g Peas
_
andP ninsola roes - -T
ReM and.Fe ,.
$184
-.
NOTES:
_ j4) Rents and feet . are scheduled: to Increase by the BLS Anchorage MSA Clot for 2015Ihn12018
. yearsdithe- agreement..
The Adjustment is based on th e square footage of leased. Exclusive Use apace: divided 6y
(2) ubiLation
the total,sgbare foofage that is available to lease (I W6 sf / 2484 sf'= 88.28 °k).
total
landed weights are estimated. Actual landing tees are to be based on actual weight
(3j the
-
LESSOR
Rrst Amendment -Airline Opera8n9
page 8 of 3
LF99EE
Agreement and Tennlpal.Area Lease-