HomeMy WebLinkAboutRESOLUTION 1997-66Sullgested by: Administration
' RESOLUTION No.. 97 ,.66
A RESOLUTION OF THE. COUNCIL OFTHE CITY .OF :'~NAI, ALASKA ACCEPTING
AND ADOPTING THE KENAi MUNICIPAL 'AIRPORT MASTER .PLAN OF i997.'""
WHEREAS, the Federal. AviatiOn Administration requires as part of the terms and conditions of its
grant support that the City formally adopt a master plan; and ....
WHEREAS, the master plan consultants, Aries Consultants Ltd., has prepared a new master plan
for the Kenai Municipal Airport; and
WHEREAS, the Kenai Airport Commission recommended approval of the master plan on
September 11, 1997; and
WHEREAS, the Kenai City Council concurs with the recommendations of the master Plan;
NOW_.., THEREFORE,.BE IT RESOLVED .by,' the Council of the City of Keaai, Alaska, that.: the
Kenai'.Municipal AirportMaSter Plan"of. 1~7 is hereby adOpted by theci'tv of. Kenai. ' '"
PASSED by the CounCil of the City of Kenai, Alaska, this 17~ day Of september, 1991.
ATTEST:
Sheryl ~a~ll~ ACting City Clerk
Mayor
9/11/97. sp
CITY OF KENAI
210 FIDALGO AVE., SUITE 200 KENAI, ALASKA 99611-7794
TELEPHONE 907-283,.7~15
FAX 907-283-a014 ~
September 12, 1997
MEMORANDUM
To: The Kenai City Council
Fr' The Kenai Airport Commission
Re: Master Plan Recommendation
The Airport Commission at its regularly scheduled meeting of September I 1, 1997 ~
recommends that the City Council adopt the Draft Final Report of the Kenai Municipal ~'~
Airport Master Plan of May 1997 and Financial Analysis for the Draft Airport Master :,~
Plan as submitted by Aries Consultants Ltd. dated September 9, 1997. "~
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~:~PM ARIES COH~JLTI:IHTS
ARIES CONSULTANTS LTD.
"; li~80 Monterey Road, Suite 270
Morgan Hill, California 65037
MEMORANDUM
FROM:
~. ~eddi Comp~cldo
Aries Consul~ Ltd.
DATG:
.Badosed is the r~vised F~ Analysis (Pages 6-~ through ~) f~ ~ ~ ~
Table 6-4-~ forecast interest revere2 was d~ and tho mf~
o~ expenses ~ ,,,,a~,' t~ Airport ~ System Special ltevmno
Pund. (hanses were niade to the text on Pages 6-16 an~t 6-17 ~ tlleso,
Tlw estinmted revenu~ ~ Passenger :FaciJity Ow,rios ha.va been, revised to $13
millt__nn (decrease, from $1.7 milli~) based cm the City receiving 7~ lmrce~ C~
total, PFCs charged. This revision is on page 6.20.
Piea~ call me if you have any questions or ~equtre additional information.
6.3
6.3.1
04:~.P1~1 RRIES CON,~JL.TRHTS
FINANCIAL ANALYSIS
T~ tmmoial analysis is i~i~y pre, s~d as a s~ of htstorioal r~vm and '
~xpeaa~ ~ Fiscal Year Bndin~ 19~4 to Fist, al Year ltn~ 1997. TI~ ~
fumuoial ~ pressured haw ~ pr~par~l ou tl~ basis of infomagou and
sources tndic~ withou~ ~ vertflcatim of such dam, 'r~ hisMflcal opemin~ ~
and nono~ rovenu~s and expenses hav~ ~ prepared based on Inflmnatba ...
provided by the Annual Statement of Revenues, ~:_,-~j_~_~__~ _~_,,~ Cha~es in Fired
Balan~ of the City of XenaL FY1997 is based on th~ CRy*s Q2nem Bud~t.
liistorkal Revoaes nd F.,xpemes ~ .'
Table 6-3 preseats a sammar~ of historioal o .perat~ revem~ amt.expm~ ttaat'''' '
FYI~ to 1FY1996. The purpoM of the robie xs to stamaattze the histofloal aalta~.
ope~tinS results of the Atrpofl Land System Special Revue Fund end tim ~' '
~o~ ~ o~~ so~.
~ Aizpo~ Land S]~mx Spccial Revenue Fund accounts for rovenucs and expenses
assochted with the airfi~d and aviation and nonaviation leases on airport property,
Revent~s from the sale of ~ propert7 over tire years have been placed in the
sales of ~ land will remain in the Speoial Revenue l~_ma while the inlarest
ptndpal is considered e source of o~ roveaue for e~ Airport.
include airline leases and the restaurant. Cx)mmissions arc received based on tho
Personal serviou md otlar ~ iud charges lave w. mmuted for tim lorsest dam".
of ezpmses aveusins 47 ~ m tn mind hsis, while ~on expmm lave
averaged 59 ~ of opmtlns revm over tho historiM three*year pmtM,
NomlMrattns rovmues include tim intwm on invemnmu for the TermS1 ]8ntorpriso
Fand and have averaged $S8,300 over tim past three years.
Foreemt Revenues md Expenses
Table 6.4 pmsmts tho lrojmi~m of airport ~ operations for tho ~ fi~
y~ ~ I ~&~ ~~ ToMs ~ ~1~ ~ ~ ~ bMs~ w~
Alt mnces of ~ derived n-om airport mm wm be eredit~ to tho ~'
· The pro~ dollm are based ou 1997 dDlhr value.
· Overatl aviation dmaud forecasts premaod i~ Chpt~ 2 will bo realized..
The devolopmeait of facilities ze~0mmml~ in this repofl will ~ impl~
and mmased to produms tho nmximum not revenue to tko Aizpofl ftmda
consistent wittt ln'ovidin~ reasonable levels of public ~actlitie, s Ired-services.
6-13
6-14
Pfo~ec~ oper~ rev~ ere ba~l ~a the ~'o/lowtn/a~u~plk~:
~ ozlar$cr mrcrafl mae . ~crea~ acli~y -
csm:natcd to ~,,;., ,~,....~-_"-"~. u. slame ~ the nnm. o! ~..L ,-__ ·
, Land expenses m fore.st to .smmb u cun~ lev~ over tl~
million m n~ tom wm oee= .........
miaoo~mt ~ over the eext fivo ~ears to
dom ~ R ~ ~
Recommendations Bmmd on the Flnandal Analyses
Tho City should consider tho prepm~on or mmal u~Ffic _,,_.a eanlnp ~ to
careftdly monitor tho physical and financial powth ot the Kenai Mmxi~ AiqzoR.
and to provide manasement with suppordns doemnentadonnecessary to exereis~ day-"
m-day and long.term management dccist~. Tr~c and eamlnas reports moMtor the
activides. ....
sro a ,,,,,,,bar o£ par¢~$ &variable ~ site end/or le&se wttlt~ tho ~'
~vi~u M ~ ~~. ~ ~ of ~a~ ~h woad ~ ~ ~~'
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ARIES CO~.~ULT~J~T$
6.3.4.1
dovelopment of tl~ Airport. ., '...,:.,.!:ii:~-~;(.,;:;.?.,;.'., .
incZu~ Fede. ul Ormts.tn. Atd, Stato Lo~hhtive Chin,
financJng, an~ in sonm ~nstmJ~s, the sale of seneml oblisz~ion nd/or revenm
The ~ flnanchl resourc~ avaJb, blo to tho City o~ Kemi, repruent~ altnmtz'v0'
means of financing nh3x~ development, are ~bod below. Any of tl~ follo~
alterna~ve methods of flnandn~ or any coznbimtion of the ~oHowin~ mothod~ m~y'.
be considered by the Oty.
Federal Grants-in-Aid
established by the Abpor~ o2~d Airway lmprovomenl Act Of 1982. It provido8 ftmdinf
for aJrlmrt planntn$ and develolmnmt zmder a stn~e prop'dm, ~ the prim' 10'/0
Airport and Airway Development Act, TI~ Ailport and Airway Trust Fund, wMch
was established by the Airport and Airway R~,vonuo Act of 1970, providu..th0
revenues used to fund AIP projects._Taxes or user fees are collect~ ~n tho radius:
sepnenu or t~ aviation commu~ty end phced in em ~ust Fund. ~ 1982 Ac~".u
mnended in 1987, 1~0, 1~J2, 1~4, and 1996 anthorizes the uae of mon~e8 fhm:t~
Airport and Alzway Trust Fund to ~ ~'ants under tl~ AlP, ..
The Airport and Ailway Safety and Capacity P. xpamion Act of 1987 amended tho
Abport and Airway I~, provement Act of 1982, Under thc 1987 Act, as ~ tho
~ Municipal Airport is e/igible for ~ ~znt~ ~ t~m ~l~mz~ AhZm~"
category. The primary ~ is a commercial mwice aizport that h_n~ moro g~ttn
10,000 euplaned passengers annue, tly. lhch prAmary atrpofl is apportioned au,.
entitlement grant based on the nmnbar of annual enplaned passengers, with a mininnun
entttlemcnt of $~00.000 which can be used for all FAA-eligiblo proje~. In addition.
a primary airport is eligible to compete for discretioxjary funds - i'unds availablo for
any eligible atrport.
Projects eligible for FAA AlP fun~ at the current levels are identified in Table 6,,1, ' ..
Capital Improvement Pro,'am. '
l~veaues for eligible projects received by the City from AlP c~i~ irants have ....
totaled about $500,000 on an armml basis since 1991 with over $700,000 recoived in
1996. Although the Federal Aviation Autho~n Act of 1996 has amho~
6-19
funding at $1.46 billion fo~ ~rants-in-aid for airports in 1:~199~. the
bimon is a ~il~mcmt ~xtucu~ owr th~ avmSe $1.6 b~ ~ ~Y. ~.'..... ,
FYI~ ~~ ~I~5. P~ ~ ~ ~ ~ out of ~ Aw~ ~ ~-"' ·
source of fuatlng for oapital improvem~ proJecU at the ~ may b
The Aviatiou .~fety ~ Cepecity Bxpemion Act of 1~0 ~~ ~ ~'
6.3.4.~
S~ate of Alask~ Le~ishtive Grants
In 1991, th~ SMM L~~ initiated a policy written into the ~apital budgot to
provide 50 percent of the tocat matching funds for municip~y-O_wned ah~ 'tits
conversations with Stale representatives, the capiial budget wm conunu~ mm r ~ ~o,.
howe~er, because this Imdg~t has lapsed in the past, it is not realis~io to axp~ the'~O.
Th~ State estimates diem ar~ suffici~ moni~ available S0 ~ lmYlg~l proJe~
~ludi~g the Ahsk~ ~sioual ~ ~ ~fi~ ~~ C~ ~ ~
~ ~d ~ no~ ~ ~ ~tY ~ a $~.~ ~v~le ~ ~ S~ ~b~~'
'97 8~:~:~J~M ARIES C(~TAMTS
Airport Land System Special Revenue Fund and Terminal Enterprise Fand
Financing airport improvefnmts by direct approprhfion Jtmn ~bo City ~ Funds
is the most reatis~c m~d offinnctn~ devolopmmt not elisibh for Federal ~',.
in-Aid or fur pro.vid~ the marchin~ 6.2.~ percent City requll~ut for 8nnts
h~ euntnm, in,mst ps, menu. For ah3~ ~ ~enen~
Funds apl2rOM'h~'om are made throush the ro~tlar bud~etin~ proc~s or as a .pechl.
budget item should the need arise.
6.3.4.4 Private Financing
The importmce of the Atxport to local economic development h mhnced with
involvmnent on the part of both the City and the private bustnen commmity. Tim
Cit~ may, require that all exclusiw.use fitcilitto8 such as commercial aviation/fix~
base operator facilities be provided and financed by the UamL
TI~ Ci~ would
l~ceive.pound rental while thc leaseholder would rece. ivo ,_hp~ Sro. revenues 8nd bo
reslMmibb for the operational expenses and deb! ~ obligation. Prtvm ttmmc~
places the burden of fh~utcing on the tenant while u~m.m~ the value of tl~ Aitp0a
which will, in nnu, add to its econ~_mic at~activeness.
Although tl~ C~ital Improvement Pro~ does not provid~ for ndditional ha~
on the Airport until Plme Il, construction of hansm on tlxo Airport is a potmtid
development opportunity for the City. Tim City could comider leasing atzpotthnd
to private intcrests to develop han~m, or the ~ty coutd consklm' developio~ hansars
for rent or lease to at~ owners. Th~ development of hanfars at tbs Abport would'
p~ovlde additional revenues to the ~lty, eltl~er in land rents ir privately d~v~ or
hangar rents if developed with City ftmds. The City would incm' si~mtflcam costs to
develop City-owned hangars. Alte~_ _nfively, with private development, the City would
receive ground rental revenue whilc the l~Ider would receive the ~ross mvmue~ ·
and be responsible ~or the operational expenses ami debt service obligation.
6.33 Financial Considerations of the Phase ti and Phase Ill Capital Improvement
Prop'am
Beyond Phase l, it is assm3ted that development o~ the Aizport will pr(F, ced ~
to ti~ priozities pro. seal in. the recommended ~ Phash~ Plan. It is also
assmned ~-t the implementation of Phase X[ and Phase Iff pro~cts will be ~
to be compatible with the financing sources and capability of the City, as identified
be demom~.
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