HomeMy WebLinkAboutResolution No. 2013-31KENAI.ALA SKA
Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2013 -31
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 ERA AVIATION, 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 ERA Aviation, Inc.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 15th day of May,
2013.
PAT PORTER, MAYOR
ATT `
S dr M digh, Ca Clerk
w4lt'. "Se4,WnWdv1GreatPxKenai, Penivl"e
nai
■ _ 305 N. WILLOW ST. SURE 200 KENAI, ALASKA 99611
Municipal Airport TELEPHONE FA7- 283383.7951
FAX 907,7833737
Memo
�To: Rick R. Koch — City Manage.
From: Mary L. Bondurant - Airport
Date: May 7, 2013
Subject: Resolution 2013 -31 -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 Era Aviation, 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.d.kenai.ak.us.
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Amumbil.a6ki-i-No AGM-B'NIENT
TMS,PWST AWNDMENT to:ft Aiport:Ajillae operatirtx
4 emtered l this ist
buikwsih the state
AACMAJ4
"0 ChtOnstawe§ MM'Mdiftg` iW maidag oftUs fidt Ashendmod are as Movor,
Lease (thO"A#memW)4*4:juw auAirTransportation;
business and Imes pr9porWat ffie:KeIW MupiekWAirport.
$Wdad 11-20 ofthd Agreomeak di 'A rl may. 66 amcadbd in
0 Wvcme, t
WhOU Or . in�.wMout -W4*r vonsid*Fa0qA:UP. n . muluarwhtwoo of City avid Airline
Wfio -l*thj*r*in,vViih to amend `the Agreement.
C. Pursuant.to Sftdoalj of the Agreemea0ficleft begam,90 q 10—,
it UA 0 0 and
,yo(.60):monthpariodithereafter.
M ftmanttQ Fee charges be based on
time rate Ad Amowa then.curteddrapproved by the: Citymprovided in Exhibit C.
F. PilrMlOpf to SecelOn 5,a.of-OwAgreemont, rentals lbr ft Ahiine's Exch.1 'we vim
Space and Use "be based on the rate and I �wwunttheh eurmrtly approved bythr,
City As provided In Exhibit- Q
#1 N&IMM-86dida SA oftbo AgreamcM,.th&:Tem*W Apron Aircratparking and
GSE Space rentals: si>$1l be based: on #fiesae andatnotmt theft ciirreittiyapprovetl'iaythe City: as
provided In Exhibit
"a* LESSOP,
A*P*wnnd7**jb*= P460 1 Of'3 LESSM R—A—,
AAMNDNMWS
L Sedim I I Of the fig V=rnerit is amended to road in its entirety as.
Thetprnx ef.W Apeemer bei on A .I,. 10.0 ("conin enceineiit .
Ditt'l and shall terminate in alxty (60J *qnwga* monft.fher=.ft*r (Wapt as may
tomilaawd or extended in accordance withthis. Agreernu4 and the-rentails, fm, and
chuju.sWbe dko."-ort the CommendementMute, In
baotdy. ' the oVed that, the
Premises. are thpoendarod to Airline ready fbx use and-O"Merm, accord,wiw Mote.
terms and mvlslofis of this Agreement
Z. Any, reference ta..*Rxhibds.Aaad.9 intheAgremeara.Vus First Amen thallbrAo
the fb?Wis kand B Wh" aft. attache d.t o. ibis First Amendment andincorporated- here
in
5. telimado. I.o. lixhibitq, "Calentodbu. dmnnhial Rent, Apron Spam Rent and
Wre FeW ' the Agreemebt 0 "Tigst Ainondftibut that[meari t6tAg4t which
isattaehed to this First Amendiraent and ihcotporated -.b r-44 _ '
"here y 0= e, 4 including, all
n6teSIO. that fthift C
4. Section 544vfthe Agreement is follows.,
AOw shallp 4ys fp owingth e d
-dr each fti
d:or. inve fe brair *ft:kn bpfarthepr000ding
. . k0&Wdipg' echargor 'cM dia
month
rate andih the amoluntthen curmtly appmve,d b_v the Cityas pr*ded,141
SxM* -C - Ai . ear'.o'
Wine UP: 010hodu le. V4 each f. the
Too will be;basedlon ilie-previo
:us year's rates u>cceased h3'the:percentage :of the bxcrease
IiihovA Bureau ofLabor S W.ztics (BLS) Conginaer. &Ice (CPI) tr All Urbam
Oonstnriers,- AachorW tliattsticai,MA(WA),
5.3.1 of the AMft� 1 9 amended to read ivits entirety as follows,,
Airline 44pWto the City in advaom on the *A day gfeackmorift Witliout demand
or -kftioin& nontab for AftiWs ExcliusWe U90 spaee'afid Joint Use- Space at the rake and!
iWthea- 6 e 4airt htl' .9
pprovedb-y-tfioi O.axprov In BA* CA-Wi Fift
Schedule,. pba ad(m1h;
previous Ye . or 1. 8 re 11WX aft Merased bythe�pekeiita,g,,e.c�f.ftinpreaso-fn tlie]�PSZPI
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frast Axdwduwnt - "ino Opuadq LFSSCiR
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a
71.
Section IA of'the Agreement is:amonded to read in Its a irety:as Mows,
Airline shall pad to the City in'ddvan on -the:Ih
ox invo�cing; .eentalS ror AnClirre. se oftiie tetml
and the storage ofgmund; service °equips
tiieic bUrreu #ty appioveil by tEpb °City�as pdsivlt%ii i
horaeolt yyar oFie fagseemeettA:tteYei��a} apr
GSE storage space rental rate. mill ba based on th
b... te.:perceritage of the increase .01 the: BLS CPT
WA:
ay of each month, without demand
iproit spacn:fgr °the.parl€irig of
(SSE) therate erid:in qte amount
daft C - : kthie Rate. Schedule.
�irerait.paricuig rental ;ate and tGe
Wousyear's rental :rates increased.
Alt Urban Consumers..- Anchorage, .
the torso tithe Agreeraeht.sl d continue' in f d-&rce and .effect �exczpt as modifie0y
thy: l?irst ?rmendtt#ea?t,
F stAmendmax- AUlinott
em gerarirtg tkSSOlb
grtont and l2natnak lir lieage Pago 3 pr 3 L SFL 1
.IN WrrNESS WHlM.WF,.lthe.,v'afties horeto have: hereunto so their hands; 'lfw day -and Year.
st" ut 40, indivwvAl Aokno�vlc i p fits wow,
$tMOVALMM
THIRD JUDICIAL DISTRTCT
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TI3IS'IS TO <CE TIFY that>oat
vatuntuyaM
Approved by.KvW CiorCouaeil.
xybf .. 1 2013, ttiM)L..
56uig p6rson*;k'ao-wnz to rne:o, rhaving
eased bsfot$ ft. aritf aCkno's wRed the
inarainentom behalf of said at
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My Cotim*sion expires;,
Approved as to lease- form by CityyAt#Drgey
tippmWgdts9.$ingrtce:Dlrectiar .��
Appxadved* Chy'Manager .
ketutst:to, City+lftirrney
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Kenai, AI£94b11,
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EXHIBIT C
AIRLINE RATE SCHEDULE
KENAI MUNICIPAL AIRPORT
City of Kenai, Alaska
ENA ExhC 2014 A1.123
2014 Terminal Apron Space Rent
Allocated
01- Jun -13
Calculation of Terminal Rent,
Apron Space
Rent and Landing Fees (1)
Square
ER&Ajjjti n
Rental Rate
Space
2014 Terminal Rent
Feet
s
Rent
(a)
(b)
(c)
(a)x(b)x(c)
Parking & GSE Space Rent
Actual
Utilization
Adjusted
$6,541
Projected
Area
Square
Adjustment
Square
Base Rental
Enplanement
Rental
Description
Feet
2
Feet
Rate s
Percen tag a
Amount
Exclusive use space
1,152
-
1,152
$30.44
-
$35,065
Joint use space:
3 $1.54
$178,112
Landing Fees
Baggage make -up area
2,400
68.29%
1,639
$18.45
70.92%
$21,442
Baggage breakdown area
960
68.29%
656
$18.45
70.92%
$8,577
Baggage claim area
1,200
68.29%
819
$30.44
70.92%
$17,690
Passenger holdroom, arrival and
departure hallways
1,824
68.29%
1,246
$30.44
70.92%
$26,888
$109,662
Total Terminal Rent
NOTES:
(1) Rents and fees are scheduled to increase by the BLS Anchorage MSA CPI for 2015 thru 2018
years of the agreement.
(2) The Utilization Adjustment is based on the square footage of leased Exclusive Use Space divided by
the total square footage that is available to lease (1696 sf / 2484 sf = 68.29 %).
(3) Aircraft landed weights are estimated. Actual landing fees are to be based on actual weight.
First Amendment -Airline Operating LESSOR
Agreement and Terminal Area Lease Page 1 of 3 LESSEE _
2014 Terminal Apron Space Rent
Allocated
Apron
Square
Rental Rate
Space
Feet
s
Rent
Terminal Apron Aircraft
Parking & GSE Space Rent
14,184
$0.46
$6,541
2014 Landing Fees
Projected
Landing
Landed Wgt
Fee
Landing
1,000s
Rate
Fees
115,860
3 $1.54
$178,112
Landing Fees
NOTES:
(1) Rents and fees are scheduled to increase by the BLS Anchorage MSA CPI for 2015 thru 2018
years of the agreement.
(2) The Utilization Adjustment is based on the square footage of leased Exclusive Use Space divided by
the total square footage that is available to lease (1696 sf / 2484 sf = 68.29 %).
(3) Aircraft landed weights are estimated. Actual landing fees are to be based on actual weight.
First Amendment -Airline Operating LESSOR
Agreement and Terminal Area Lease Page 1 of 3 LESSEE _