HomeMy WebLinkAbout2001-12-13 Council Minutes - Joint Work Session with Airport CommissionJOINT WORK SESSION
KENAI CITY COUNCIL/ KENAI AIRPORT COMMISSION
DECEMBER 13, 2001
KENAI CITY COUNCIL CHAMBERS
NOTES
Mayor Williams called the work session to order at approximately 8: 55 p.m. The following
participants were present:
Council Members: Bookey, Swarner, Bannock, Porter, Jackman, Moore,
Williams
Commission Members: Knackstedt, Bielefeld, Holloway, Haralson, Elson, Van Zee
Commission Members Absent: Kleidon
Staff: City Manager Snow, Airport Manager Cronkhite Fire
Marshall Baisden, Finance Director Semmens,
Department Assistant Harris
As requested by Mayor Williams at the November meeting, the following topics were explored:
1. Request of information from bulk fuel providers for a policy on special rates for bulk fuel
users (more than 1, 500 gallons a month).
Airport Manager Cronkhite responded to this directive and reported the following:
Fuel providers do not currently have a set policy.
If fuel users provide a specific proposal on how much fuel would be purchased,
the providers could provide more information.
2. Target a specific time period for the runway extension that will enable the Float Plane
Basin runway extension by means of materials site designation.
Airport Manager Cronkhite provided the Airport Capital Improvement Program (ACIP) schedule.
Cronkhite pointed out this schedule is only for general programming and project funds have
not been appropriated or obligated. The ACIP schedule currently lists runway extensions for
2002-2003.
3. Determine the cost of collecting the currently taxed aircraft vs. potential revenue
generated by additional tenants paying a flat -tax or exempted tax.
Finance Director Semmens provided the participants with a breakdown of potential impacts for
hypothetical $ 100,000, $50,000, and $25,000 exemptions. Additional information was
provided for various property tax situations and comparisons for the years 1998 and 2001.
The participants spoke extensively regarding the information and the overall small amount of
tax being charged; 47 out of 57 tenants are charged less than $300.00 per year. The
participants discussed at length the following items concerning the taxation issue:
• Councilwoman Jackman stated she felt strongly the Kenai Airport should
institute an advertising campaign to inform and educate the public of the services offered.
• Councilwoman Porter suggested Kenai team up with Seward to approach the
Borough regarding a flat tax rate. This, she stated would be more equitable.
CITY COUNCIL/AIRPORT COMMISSION WORK SESSION
DECEMBER 13, 2001
Page 1 of 2
• The participants discussed the merits of stimulating business in order to attract
more tenants and receive more tax payment.
• ERA Aviation has the most property at the Kenai Airport and pays more than
$ 15,000 per year in tax. However, ERA does all of its mechanics and fueling in Anchorage.
The participants discussed the issue of gaining more business from ERA and the larger
companies.
• The participants agreed a census should be taken to both find out why people
have left and to inform aircraft owners of the services offered at the Kenai Airport (snow
plowing, security, float plane basin, maintenance, etc.) . The census takers will determine
aircraft owners by tail numbers and will locate the owners in person. An additional census
may be taken by phone or mail.
• Commissioner Haralson suggested contacting the Kenai Community College to
inquire if a business or marketing class would be interested in conducting the census.
• The Airport Commission agreed to develop the list of census questions.
• Mayor Williams asked the finance administration to look further into the
taxation issue.
The work session adjourned at approximately 10:10 p.m.
Notes prepared and transcribed by:
Sharon Harris, Department Assistant
.. 0
CITY COUNCIL/AIRPORT COMMISSION WORK SESSION
DECEMBER 13, 2001
Page 2 of 2