HomeMy WebLinkAboutResolution No. 2014-32Suggested by: Administration
CITY OF KENAI
RESOLUTION NO. 2014 -32
A RESOLUTION OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING ITS
COMPREHENSIVE SCHEDULE OF RATES, CHARGES, AND FEES FOR CHANGES TO
KENAI MUNICIPAL AIRPORT LANDING FEES AND TERMINAL RENTS PER THE FIRST
AMENDMENT TO THE AIRLINE OPERATING AGREEMENT TO BE EFFECTIVE JUNE
1, 2014.
WHEREAS, the Kenai Municipal Airport Airline Operating Agreement that was
originally adopted by Resolution 2008 -27 has been amended to extend the term of the
agreement period through May 31, 2018 with an increase in terminal exclusive and
joint space rental rates and landing fees of 5.0% the first year effective June 1, 2013
with annual increases based on the previous year's rates increased by the percentage
of the increase in the U.S. Bureau of Labor Statistics (BLS) Consumer Price Index (CPI)
for all Urban Consumers - Anchorage Metropolitan Statistical Area (MAS) for each
subsequent year of the agreement; and,
WHEREAS, effective June 1, 2014 the landing fees and terminal rents will increase by
3.5% based on the BLS CPI; and
WHEREAS, the first amendment to the Airline Operating Agreement involved
negotiations with the current airlines, ERA Aviation, Grant Aviation, and Lake &
Peninsula Airlines, all of which agreed to the amendment; and,
WHEREAS, amending the City's Comprehensive Schedule of Rates, Charges, and Fees
to reflect the first amendment to the Airline Operating Agreement is in the best
interest of the Kenai Municipal Airport and the Citizens of Kenai.
NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA, to amend the City's Comprehensive Schedule of Rates, Charges and Fees
"Airport Fees" section to:
Landing Fees
14.05.010(a) Signatory per thousand pounds [$ 1.53] 1.58
14.05.010(b) Non - signatory per thousand pounds [$ 2.00] $2.07
14.05.010(c) Exempt - float planes, flight test landings or returns because of
mechanical problems or weather, or government aircraft
Terminal Building Rent - Exclusive Space
Signatory
(per square foot per year) [$30.45] $31.51
Signatory - arrival hallway, departure hallway,
passenger hold room & baggage claim area
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Resolution No. 2014 -32
Page 2 of 2
(per square foot per year) [$18.45] $19.09
Terminal Building Rent - Joint Use Space
Signatory - baggage make up area
(per square foot per year) [$18.45] $19.09
Signatory - baggage breakdown area
(per square foot per year) [$18.45] $19.09
Non - signatory terminal rates 30% higher
BE IT FURTHER RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this
Resolution shall be effective on June 1, 2014.
PASSED BY THE COUNCIL OF THE CITY
2014.
ATTEST:
San o igh, C Clerk
Approved by Finance: 1
OF KE�NAAII.A/LASKA, this 7th day of May
PAT PORTER, MAYOR
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Mun
nai
305N.WILLOWST.SUITE200 KENAI, ALASKA 99611
TELEPHONE 907. 283 -7951
Airport FAX 907 - 2833737
Memo
{ ^ To: Rick R. Koch — City Manager
\ Terry Eubank — Finance Director
From: Mary L. Bondurant - Airport Manag
Date: April 28, 2014
Subject: Resolution 2014 -32 — Fee Changes Due to First Amendment to Airline
Operating Agreement
The City and Kenai Airport entered into a new five -year amendment to the airline operating
agreement in June 2013. This first amendment scheduled a 5% increase to landing fees and
terminal area lease rates effective June 1, 2013 with annual increases based on the previous
year's rates increased by the percentage of the increase in the U.S. Bureau of Labor Statistics
(BLS) Consumer Price Index (CPI) for all Urban Consumers — Anchorage Metropolitan
Statistical Area (MAS) for each subsequent year of the agreement.
I recommend increasing the landing fees and terminal area lease rates by 3.5% BLS CPI.
Non - signatory landing fees and terminal area lease rates continue to be thirty percent (30 %)
higher than signatory rates.
Please contact me if you have any questions.
attachment
www.ci.kenai.ak.us.