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Home My WebLink About2003-11-13 Council PacketKenai~ City Council Joint Work Se~~ion With Airport Commission November 13, 2003 AIRPORT COMMISSION/KENAI CITY COUNCIL JOINT WORK SESSION NOVEMBER 13, 2003 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. INTRODUCTION Henry Knackstedt, Airport Commission Chair John J. Williams, Mayor BRAINSTORMING Casey Reynolds, Facilitator COMMISSION/COUNCIL FINAL COMMF. NTS ADJOURNMENT nal Municipal Airport "S rv g eGr Memo To: Airport Commission From: Rebecca Cronkhite - Airport Manager Date: November 6, 2003 Subject: Airport Commission/Council Work Session Over the past few years, the Airport Ca, mission and City Coundl have explored several po~ibil~ for airport marketing studies, econom~ development, goals and mission statements. As reported eadier, flthoate FAA has requested a Supplemental Planning Analysis to justify the need for a runway extension, plane waterway expansion and other fadlities projects. This Supplemental Planning Analysis is eligible for FAA AlP grant funding contingent on FAA approval of the scope of work This work session is scheduled to solicit ideas from City Coundi and Airport Commission conceming lhe product goals of the RFP. A wo~heet and additional background infom'atJon is included in the packeL Casey Reynolds, Eco~ic Development Project Director, will fadlitate lhe brai~ing se&sim. Once we have a list of potential product goals, City Planner MadlYn Kebschull and i will meet with the FAA Planning Department to negotiate which products are grant fundable. Ineligible items the City wants pursued can be induded in the RFP as additive alternates or additional phases. If those items are directly related to the airport lhey will be eligible for funding from the airport account. Nomairport related products could be addressed by the General Fund. For example, the FAA agrees developing forecasts of aviation and airport business development is a fundable goal. The fom~lizalJon of an economic airport busine..~ strategy might be fundable thro~h the airport account and a feasibility study on bdnging a new box store to Kenai would be d~rged to the General Fund. As this example indicates, it is important to keep our fo(~s on the airport and airport lands, however, ~ are no bad ideas. Once the FAA makes their determination, Coundl can review alternate funding sources if lhey desire. Please review the attached matedal for additional inforrna~ and call me if you have any questions. www.ci.kenai.ak.us. WORKSHEET FOR Kenai Airport Supplemental Planning RFP This worksheet will assist in preparing a list of product goals for the proposed RFP. Keep in mind this is an FAA funded project and must conform to their guidelines. Possible goals are included to facilitate the process of developing a list of products the consultant is required to provide under the contract. Actual discussions and planning takes place after the consultant is hired. Use this worksheet to list ideas under an existing heading or use the "other" category to list additional ideas/needs; use the "Think Outside the Box" section to brainstorm new or Unusual planning ideas. MISSION STATEMENT: A clear statement of the Airport's short and long-term goals and objectives. Goal prioritization can also be part of the development of a mission statement. DEVELOP FORECASTS OF AVIATION AND BUSINESS GROWTH: Short and long-term forecasting of based aircraft, business, passenger, cargo, and aircraft operations are essential to all planning. SWOT ANALYSIS: Strengths, Weaknesses, Opportunities, & Threats BUSINESS PLAN: A deliberate and inclusive plan designed to enable an airport sponsor to reach numerous predetermined goals and obiectives through the efficient allocation and deployment of resources. MARKETING PLAN: Define long and short-term growth strategies and reasonable allocation of resources to maximize revenues. AIRPORT LAND USE PLAN: Review all airport properties to determine market potential, site opportunities, constraints and highest and best use for future development. Shared Drive~Becky~Supplemental Plan Information\03 council worksheet for RFP. Updated November 4, 2003 RATES AND CHARGES ANALYSIS: Includes market rent analysis, fuel flowage fees, alternate revenue sources, and other rate and fee analysis. AIR SERVICE DEVELOPMENT PLAN: Assess use, need, potential growth, operational concerns, competition and economic challenges. UPDATE MINIMUM STANDARDS AND RULES AND REGULATIONS: In accordance with AC 150/5190-5 Change 1 dated June 10, 2002 and Grant Assurance 22h. This is an FAA requirement for airport land and leases. OTHER: THINK OUTSIDE THE BOX Municipml Airport Shared Drivc~Becky~Supplemental Plan Information\03 council worksheet for RFP. Updated November 4, 2003 Trite but TrUe.t ~Failing to plan is planning to fail! ~Do what you have always done and you will get What you have always gotten (or .worse)! ~Garbage In Garbage Out Planning and Expectations Why plan? Defines a direction Helps allocate resources Examines alternatives What can you expect? Improved decision-making Improved bottom line Lower risk Improved communications Why a Business Plan? · Identifies where you are and where you have been (This is the essential starting point!) Establishes goals and objectives and defines how you will reach them Provides a reference document for different departments and their employees, as well as for contract service providers Why a Business Plan? " titi · ~.Increases compe ve'awareness ' pi · .~Ex ores alternative courses ~.Proactive, not reactive -a~Ensures actions are consistent with resources and constraints '~'Measures progress 5 What is Your Business ? ~Can you easily describe your Airport' s target market ? ~Can you easily describe your tenant's business functions? g'What are the strengths and weaknesses of your Airport? Mission Statement '~:~A clear statement of the AirPort's short and long-term goals and objectives. e Identifies and directs the growth of the Airport. ~,"Should be relatively brief, but as concise as possible. Issues & Questions ::~Why does the Airport exist? -~Who is our "customer"? -:~What services do we offer? :~-Wliere do we want to go from here? '~Are our goals the same as our current business activities? · ,~How do we fit within the community's growth plans? S WOT Analysis ~Strengths- What do you have to offer? ~Weaknesses - What services or facilities do you lack? .: :i~:.." ' ;. · · ~Opportumt]es- What else can you do? ~Threats- Who or what else is out there that may impact your operation? 7 Checkpoints ~:~,,~",-.Assess~ng strengths and weaknesses ~*Financial Plan 'Prioritization of goals ~-*Implementation strategy Development Team · ~-~Key staff people · ~Local business leaders -~Public officials ~Community leaders '~Tenants ~Consultants Airport Business and Economic Development Planning Julie Kenfield, Ricondo & Associates, Inc. Tim O'Krongley, A.A.E., Stinson Municipal Airport Jim Musbach, Economic & Planning Systems WhyPrepare a Business Plan? · Manage current resources · Alignment of business goals with operational goals · Strategies for additional development - Marketing plans - Development strategies · Optimize net revenues Limitations · Airport organizations vary - City government vs. independent authority - Multi-focused authority vs. airport · Organizational structure and labor budgets generally inflexible · F~ regulations govern overall policies · Type of agreement with tenants ,' Managing Current Resources ~-~':~"'-.~ ,1' What is there to manage? ~ii~.i.~.~:' '.i I -Reconsider operational decisions (i.e., ~~~i~i'i'.~'.'.'.I''' I third-party vs. organic operation or ~;i"i'.~.~' i:''~ 'i development) !J - evelop unused orunder-developed ~,.:!t~i. '1 pro ert~es r~: .... ! P ~~:ii,~.l -Re-assess rents and fees with respect to F i,I market Alignment of Business Goals · Set business policy based on a defined mission or goals - Encourage new development - Encourage redevelopment of existing facilities - Investing in existing tenant's interests - Customer service · Balance "soft goals" with quantifiable financial results StrategiesDevelopment for Additional · Highest and best use of existing property · Identification of potential needs/markets · Acquisition to protect or support future aviation needs - Interim development in recognition of future use - Protecting compatible land use · Balance short-term and long-term goals and objectives through business policies Optimizing Revenues through Business Planning o .. · Know your current operations, opportunities and limitations · Identify what potential changes could be made · Think outside the box · Get other ideas- use your network · Run the numbers · Address the politics of change PUBL.TC NO'I"J:CE ,, The Kenai City Council will meet in a joint work session with members of the Airport Commission on November 13, 2003 at 7:00 p.m. in the Kenai City Council Chambers. The topic to be discussed is the development of an airport business plan. The public is invited to attend. If you have questions, contact the Kenai City Clerk at 283-7535, extension 231. Carol L. Freas, City Clerk D/211