The Kenai City Council enacted an ordinance to increase the estimated revenues and appropriations in the airport fund fiscal year 2023 budget for utility costs associated with the Alaska Regional Fire Training Center.
Since March 2008, Beacon Occupational Health & Safety Services has operated the Alaska Regional Fire Training Center through a Facility Management Agreement.
In February 2022, Beacon notified the Kenai Municipal Airport they would terminate the agreement effective December 31, 2022. Upon termination of the agreement all utility costs reverted to the Airport.
Kenai City Manager Terry Eubank spoke on change to rental agreement.
“Since 2008, the city had an agreement with Beacon Occupational Health and Safety as a facility management agreement over at the Alaska Regional Fire Training Center. Under that agreement Beacon was responsible for the majority of utilities of that facility while they had the management agreement. the management agreement ceased in December of this year and since then the city is now responsible for the majority of the utilities in that building.”
At the January 4, 2023 Kenai City Council Meeting, the council approved a Special Use Permit allowing Beacon to occupy 1,716 square feet of exclusive use space and 2,250 square feet of common use space on Level 1 of the Alaska Regional Fire Training Center. The monthly fee for use of the is $5,468.16, plus applicable sales tax.
The estimated cost of the utilities for January through June of Fiscal Year 2023 is $87,450. Council appropriated $23,831 to utility cost for the Alaska Regional Fire Training Center in the FY2023 Budget. There is a balance of $16,757.72 remaining.
Eubanks broke down the costs and need for additional funding for building utilities.
“Part of those utility costs are gonna be offset by rent being paid by Beacon for space inside that building. They no longer have exclusive use of that building. This (approved funding) is providing supplemental funding for the airport’s budget to pay those utility costs; because they were unbudgeted when we adopted the (current) budget. Those costs are estimated to be almost $71,000 for six months. We’re expecting about $33,000 in revenue for rent from Beacon in that time and the rest is gonna come out of airport reserves.”
Airport Special Revenue Fund:
Increase Estimated Revenues –
Appropriation of Fund Balance $37,883
Alaska Regional Fire Training Center Office Lease $32,809
Increase Appropriations – Training Facility Utilities $70,692
The enacted Ordinance 3335-2023 appropriated funds from the Airport Special Revenue Fund to satisfy the unexpected utility obligation for the Alaska Regional Fire Training Center Operational Budget.
