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HomeMy WebLinkAbout2002-10-15 Council Minutes - Joint Work Session with Airport Commission and ERA AviationKENAI CITY COUNCIL WORK SESSION WITH AIRPORT COMMISSION AND ERA AVIATION, INC. REPRESENTATIVES OCTOBER 15, 2002 CITY COUNCIL CHAMBERS 7:00 P.M. MAYOR JOHN J. WILLIAMS, PRESIDING NOTES Council present: Moore, Williams, Bookey, Bannock, Swarner, Porter and Jackman Staff present: Freas, Graves, Snow, Cronkhite, Hicks Airport Commission: Bielefeld, Van Zee, Knackstedt, Haralson, Watkins ERA Representatives: Paul Landis, Judy Erikson, Cherisse Millett Williams opened the work session at approximately 7:00 p.m. and welcomed the Airport Commission members and ERA Aviation, Inc. representatives. After introductions, Williams requested opening remarks be made and include what each person was hoping to accomplish through the work session discussions. Landis noted the following in his opening remarks: • Kenai has the strongest carrier at the airport and the carrier has the strongest alliance with Alaska Airlines. • An alliance with a major carrier is very important. • Other carriers serving Kenai over the years were not aligned with a major carrier. • Effects of the industry feed down to everyone. • The thought that Kenai has the highest airfares in the nation is untrue and he provided a chart indicating fare comparisons on routes similar in mileage to Kenai. • They are phasing out the Twin Otter and using Dash 8s as they have found they are more popular with their customers; flights using the Dash 8s are less frequent than the Otters. • Price of fuel used to be the highest expense in carrier service and it is now wages. Discussion continued regarding the proposed market study. The question of what should or should not be included in the study and why was asked of all those in attendance. The following comments were made: • Haralson suggested the focus of the overall intent of a market study would be what can be done to market the airport for the community and generate more revenue through the airport. He asked Landis what he could share with the city. • Williams stated the study would not be to only gather information about airfares, but would address other areas of concern. He explained the council charged the Airport Commission to look at the airport and market it and to do that, they need the tools with which to do the work. The market study will be the tool with which to provide the information. KENAI COUNCIL JOINT WORK SESSION OCTOBER 15, 2002 PAGE 2 • Porter stated she was not interested in anything to do with the history of airfares, but wanted information of how to bring airport -related business, as well as others, to the city. She added, the airfare information should already be available to the city. • Landis stated he would want the study to offer a fair analysis; didn't believe the ticket lift information was needed and would be not be available from electronic ticketing; recommended enhancing air service, i.e. put in place infrastructure for security screening and other requirements to allow Kenai to be used for diversionary traffic. He added, this was an untapped market for Kenai. He also noted their flight attendants take training at PRISM and suggested the city attract other corporate, state and federal groups to use the facility as well. • Williams noted he would want to find if there are companies that may want to locate in Kenai and if so, can they be accommodated. Also, he would want the study to expand Kenai's economic development and fill the gap for jobs three to five years ahead; the city needs to think "out of the box"; and to identify development that will bring people to Kenai on a 12-month basis. • Porter noted, at the time the ordinance to appropriate funding for the study came to council for public hearing, the council had not had the opportunity to review the contract. Had the discussion at the public hearing not turned to the tabling of the issue, some of the council would have questioned what would be included in the study. Her intent wasn't to go with everything discussed in the proposed contract. • Airport Manager Cronkhite noted they have contacted corporate users of the airport and indicate what is offered at the Kenai Airport; they advertise in corporate -based magazines; and that normal FBO responsibilities are offered by the airport staff. Cronkhite also noted, the Commission was charged with marketing the airport, which includes air service, community concerns about airfares, and getting information on leakage. • Van Zee noted the Commission was investigating acquisition of federal grant funds and to receive the funds, specific information is required to include in the grant applications. That information would be garnered from the study. He reviewed information requested in a grant application. He added, the city cannot provide information for the applications if the market is not identified. He suggested the study include information about where people are going and where they are coming from. • Bannock suggested the study should include an inventory of assets. It was noted the Airport Master Plan includes an inventory of airport lands. • Tim Polk, Natron Air, agreed the study should include an inventory of what is available. • Cherie Brewer suggested using local personnel to do the study and Williams noted, there are no expert opinions here and felt someone should be recruited to do the study. • Bookey stated he wanted an RFP and incorporate ideas stated during the work session into the contract rewrite the contract and then fund it. KENAI COUNCIL JOINT WORK SESSION OCTOBER 15, 2002 PAGE 3 • Jim Bielefeld noted, information is needed to include in grant applications and the Commission needs to get the information and he wanted the Commission to have the freedom to apply for the grants. BREAK TAKEN: 8:1 ? P.M. BACK TO ORDER: 8:35 P.M. • Referring to an earlier comment council had not received information in regard to the study, Swarner noted a copy of the Airport Manager Report included in the July 11, 2002 council packet which discussed airport marketing and stated council should read the reports when they are made available. She also noted the ordinance for appropriating funds for the study was introduced in August. • Kurt Wisniewski stated he felt it would be good to have competition as he had received unfavorable counter service at the airport recently and would have used a different carrier if it had been available. Williams requested a list be formulated by the group, including everything suggested to be included in the study. It was as follows: 1. Inventory physical assets of the airport 2. Perceived needs of the customer 3. Perceived needs of the airport 4. Passenger leakage 5. Inventory of personnel 6. Services to the airport 7. Inventory vacant buildings 8. Lease rate comparison on airport lands/tomes/fees 9. Types of businesses on the airport 10. Types of businesses' perceived needs 11. Answer who the market serves; what the market wants; what is market and marketing to passengers/cargo. 12. What are the mailable grants and whether they are applicable to market the airport. 13. Airfare study (from Cronkhite records) 14. Float plane basin useage/marketing 15. Marketable assets of the city to market the airport (include the Chamber's study of city assets). 16. What do citizens want their airport to be? Small town or something else? Closing comments included: • Haralson asked Landis, based on his knowledge and expertise, what did he think needed to be included on the list. Landis answered, airfares won't drive the business here. He added, that was not the problem -- get business/businesses to the airport and the airport will take care of itself. • Williams stated he wants the revenues the airport produces to spin off to the community. KENAI COUNCIL JOINT WORK SESSION OCTOBER 15, 2002 PAGE 4 • Porter thanked Landis for coming and for ERA's donations to the area. Landis left the meeting. • Williams encouraged council and Commissioners to continue to think about what they wanted included in a study. After the list is completed, the ideas should be reviewed by the Commission, the contract proposed contract rewritten and submitted to council for review at another work session so everyone will be accepting of the end result. • Knackstedt questioned why ERA was so concerned about the study that they had brought three people to the work session. • Bielefeld stated the only way to get lower fares is with aircraft that is less expensive to operate. He added, he didn't think the airfare was a big concern, but he wants the Commission to have the freedom to investigate thoroughly how best to market the airport. • Referring to Knackstedt's comment, Bannock suggested ERA's concern was reactionary. • Williams requested the Commission meet again and short through the list, reformulate the package, meet again with the council to make final changes before bringing the ordinance back for action. He added, he would like a consensus before bringing the ordinance back. • Jackman stated everyone should keep an open mind. • Referring to comments Landis made at the September meeting that he could give information, Haralson stated he was disappointed there was little information offered to them from ERA. He added, he wanted to review the list, etc. and formulate specific questions to ask ERA in regard to request for information. • Bookey stated he would like more information in regard to airline baggage transfer programs. • Brewer suggested marketing the city first and then the airport and working with the Chamber in marketing the city. • Watkins suggested contacting an advertising agency first for ideas and send letters to major airlines in regard to other carriers. • Polk suggested contacting the sign advertising contractor for the airport and question the viability of their working with the city in advertising Kenai in other airports. • Porter suggested treating ERA as a customer. The work session adjourned at approximately 9:25 p.m. Notes transcribed and prepared by: M�p'h �}' ,igyh �/*� A__�yy & ye1 Carol L. Fre s, City Clerk 1 71lA44 M�Y;ii::;cgc:.YA.YroNV.YRI itTtjlt�s'.gta .. re