ITEM TITLE:
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Approval of a Recommendation to City Council to Approve Establishing Sublease Rates at the Valdez Pioneer Field Airport Terminal Building and Repealing Resolution No. 10-60 Formerly Naming Sublease Rates and Fees
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SUBMITTED BY: Jeremy Talbott, Ports & Harbors Director
FISCAL NOTES:
Expenditure Required: N/A
Unencumbered Balance: N/A
Funding Source: N/A
RECOMMENDATION:
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Approve the recommendation to City Council to approve Resolution 21-XX Establishing Sublease Rates at the Valdez Pioneer Field Airport Terminal Building
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SUMMARY STATEMENT:
In 2010 the Valdez City Council voted to increase the rates for the Valdez Pioneer Airfield through resolution 10-60. The rate increase would be 5% annually over the course of the next 3 years. (2011,2012, & 2013)
During 2014 & 2015 there was a significant amount of construction upgrades at the airport, with frequent disruptions. Understandably the Ports & Harbors Commission recommended a hold on rate increases.
In 2016 & 2017 the Ports & Harbor Commission made a recommendation to the Valdez City Council to increase the rates 5% annually over the next three years. The City Council decided to hold the rates at the 2010 rate schedule both times they were brought forward.
Additional factors supporting a rate increase;
* New HVAC system
* New LED lights inside the terminal
* New roof
* New ADA restrooms
* Waterline upgrades
* Parking lot improvements
* New automatic doors
* Shared conference areas
* Increased utility rates
* Increased janitorial rates
* Increased annual State of Alaska Lease
* Waitlist for space
* Utilities and snow removal provided at no additional cost
The Ports & Harbors Commission has always tried to establish rates that did not compete with private property lease rates. Since 2010 Ports & Harbors staff has conducted two rate comparison inquiries with other private Valdez commercial lease vendors.
During both rate comparisons of the private vendors, (who were willin...
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