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HomeMy WebLinkAbout1993-10-14 Airport Commission Summary-C -a KENAI AIRPORT COMMISSION OCTOBER 14, 1993 CITY HALL COUNCIL CHAMBERS CHAIRMAN BILL TOPPA AGENDA 1. ROLL CALL 2. APPROVAL OF AGENDA 3. APPROVAL OF MINUTES - September 9, 1993 4. PERSONS PRESENT SCHEDULED TO BE HEARD None 5. OLD BUSINESS None 6. NEW BUSINESS a. Review Gift Shop Lease Reduction Request and Future Viability of Gift Shop 7. AIRPORT MANAGER'S REPORT 8. COMMISSION COMMENTS AND QUESTIONS 9. INFORMATION ITEMS a. Extension of Construction Schedule, Lot 4, Block 1 F.B.O. Subdivision b. Request for Airport Lounge Neon Sign C. Diane Smith, Excused Absence d. 500' Extension for Float Plane Facility e. The Anchorage Times "Too Much Acrimony," from City Manager f. Car Rental Parking Spaces - South End of Terminal 10. ADJOURNMENT KENAI AIRPORT COMMISSION OCTOBER 14, 1993 MINUTES CHAIRMAN BILL TOPPA 1. ROLL CALL Chairman Bill Toppa called the meeting to order at approximately 7:00 p.m. in the Council Chambers in the Kenai City Hall. Members Present: Bill Toppa, Bob Scott, Teresa Werner-Quade, Bonnie Koerber, Tom Thibodeau, Ron Holloway Members Absent: Diane Smith (excused) Also Present: Councilman Ray Measles; Randy Ernst, Airport Manager; Kathy Woodford, Admin. Assistant 2. APPROVAL OF AGENDA Chairman Toppa asked for additions or corrections to the Agenda. Hearing none, Toppa passed the Agenda by unanimous consent. 3. APPROVAL OF MINUTES - September 9, 1993 Werner-Quade noted Bob Scott was absent from the September 9, 1993 meeting and the minutes need to be corrected to reflect his absence. 4. PERSONS PRESENT SCHEDULED TO BE HEARD None 5. OLD BUSINESS Ernst stated he was asked to check into the possibility of getting some picnic tables to set up at the south end of the airport. Ernst checked with Kayo McGillvray, the Parks & Recreation Director, who informed him he does not have any extras available at this time, but they might be pulling the tables out of the Municipal Park on Forest Drive. Ernst asked if the Commission would like him to get information on purchasing some picnic tables. KENAI AIRPORT COMMISSION OCTOBER 14, 1993 PAGE 2 Toppa asked for volunteers to form a committee to obtain information on the picnic tables. Tom Thibodeau and Ron Holloway volunteered. Ernst stated he will help too. Ernst mentioned Ron Holloway's request for information on lighting at the Float Plane Basin. He stated the Mayor had already asked Nelson for an estimate for lighting at the Float Plane Basin, which he was unaware of. Ernst noted Nelson's response is listed under Information, 9d. He said the reason the estimate appears to be high is the cost of getting power to that end of the Basin. Ernst stated power has been installed to the automated fuel tank so the cost may be less. He added it may be shorter to bring power in on the glide slope end. Werner-Quade asked Ernst if he brought the Float Plane Basin Regulations she had previously requested. Ernst stated he has copies for everyone to pick up after the meeting. Toppa stated if the Commission would like to discuss the possibility of reducing the cost of slips at the Float Plane Basin the item could be discussed later in the meeting. The Commission agreed. 6. NEW BUSINESS a. Review Gift Shop Lease Reduction Request and Future Viability of Gift Shop Toppa stated it was previously approved to reduce the rent beginning January 1, 1994; now there is a request for reduction in rent beginning October 1, 1993. Werner-Quade asked for a clarification on when the rent had been reduced in the past, January or October. Toppa stated in the past it was January. He added the vendor probably would have liked to see a reduction earlier but, by the time a request came to the Commission and it was approved, the reduction was made effective in January. Toppa stated he sees no real problem with reducing the rent for this time period. Ernst informed the Commission Mitch Dobrich, Lessee, is in the audience to answer any questions. Holloway asked Dobrich if he feels it is worth keeping the gift shop open during the month of December. KENAI AIRPORT COMMISSION OCTOBER 14, 1993 PAGE 3 Dobrich stated business dropped at the end of August and the first part of September. Dobrich said he was very disappointed in business at the gift shop, stating he felt business would be better than it actually was. Dobrich said he opened the gift shop on May 15, but would have rather opened it May 1. He said the merchandise he ordered arrived after May 15. Dobrich said at the middle of August business started dropping. Dobrich has been paying the rent on the gift shop, but it has been closed. He felt it was not feasible to pay someone to be there all the time. Dobrich stated the merchandise he has ordered is not on consignment; it is merchandise he is stuck with. He stated he could sell it for 50% or 60% off as a special sale and go in with a clean slate next year. Holloway asked if there is enough traffic during the holidays for Dobrich to re -open in December. Dobrich said he doesn't know because he has not been open through the holidays before. Dobrich said his numbers do not compare to the old lessee's numbers. Werner-Quade asked Dobrich if he wants the reduction for this year only and Dobrich stated he only has one more year. Toppa asked Dobrich if he intends to open during the holiday season. Dobrich stated he will try anything to sell his merchandise. Toppa said if the Commission makes the decision to recommend to Council a reduction in rent until next spring, it should be stated if Dobrich opens during the month of December for a holiday sale, his rent will remain at the reduced rate. Werner-Quade agreed that if a holiday sale could be done it would help Dobrich clear out his merchandise to start over in the spring, and the rent could still remain at the reduced rate. Scott stated the dates Dobrich is going to be open should be spelled out. Dobrich said the old lessee opened on May 1. Ernst added the old lessee had a reduced rent from January 1 through April 30. Toppa asked the Commission for a clear motion on the dates Dobrich will be required to be open. MOTION Holloway made a Motion to reduce the rent to $50.00 from October 1 st to April 30th; and if the gift shop is opened in December, the rent will stay at the reduced rent for a holiday sale. KENAI AIRPORT COMMISSION OCTOBER 14, 1993 PAGE 4 Koerber asked Dobrich if the gift shop will be completely closed during this time of reduced rent or if he will be running back and forth between the gift shop and the restaurant. Dobrich stated the gift shop will be completely closed. Toppa told Dobrich the Commission doesn't want to restrict his business and that he doesn't see a problem with him opening the gift shop during December. He stated the Commission should not specify a month to re -open during the reduced rent time, but that if he wants to open the gift shop for a short period of time to have a sale he should be allowed to. AMENDED MOTION Scott made a Motion that the gift shop shall be open and the full rent ($500.00/month), be paid from April 1 through September 30, and any time the gift shop is opened during the reduced rate months, the rate will not be affected. Toppa asked if the last lessee had any restrictions on whether or not the gift shop could be open or not during the reduced rent months. Measles said the amendment made to the prior lessee's contract did not allow the gift shop to be open. Toppa read from the lease "...the $500.00 monthly rental shall be pro -rated for the period of time the gift shop is open..." Toppa asked the Commission if they want to do -away with that section of the lease. It was agreed upon among the Commission members to do -away with that section of the lease. Werner-Quade stated for clarification, during the reduced rent months, the lessee can open the gift shop anytime or for the whole time and still have the rent remain reduced. Toppa said if the Commission does not restrict it, then this is what he can do. Thibodeau stated for this year it should be fine, and being able to open for a while during the reduced rent months will be an incentive for the lessee to get rid of some old merchandise to prepare for the spring opening. Werner-Quade asked for the Motion to be re -read Re -Read MOTION Scott made a Motion that the gift shop shall be open and the full rent ($500.00/month) be paid from April 1 through September 30, and any time the gift shop is opened during the reduced rate months, the rate will not be affected. Thibodeau Seconded Motion. KENAI AIRPORT COMMISSION OCTOBER 14, 1993 PAGE 5 Toppa asked for a show of hands. Unanimous decision. Toppa asked the Commission for comments on the feasibility of the gift shop. Ernst stated Louis Schilling and the Mayor have discussed the idea of looking at something other than a gift shop in the airport. He stated the people coming through the terminal do not have a lot of time to waste between flights. Ernst mentioned the possibility of moving the gift shop to a smaller place. He said another possibility that Schilling brought up is making a smaller restaurant with a bar downstairs and eliminating the bar upstairs. (Ernst stated this idea is strictly "out of the blue.") Ernst suggested the possibility of a snack shop with espresso, rather than having a full restaurant. However, he added, Dobrich has exclusive rights to serve food and beverage of that type in the terminal. Werner-Quade asked how Dobrich did with the restaurant. Ernst said he is not sure but he thinks fairly well. He stated Dobrich and Schilling have worked together on some catering jobs. He added they are also working together by Dobrich sending sandwiches up to the bar, etc. Ernst stated there is a possibility of keeping the two businesses together. Ernst said the airport's hands are tied when it comes to offering more than a five-year lease. He thinks Schilling would be willing to remodel the whole downstairs if he could lease it for more than five years. Ernst stated the FAA controls the regulations; if there were another small restaurant in the terminal, Schilling wouldn't have exclusive rights so the lease could be for more than five years. He added Schilling's lease is up in 1995. Toppa stated the Commission needs to have some kind of proposal for the gift shop by next November when Dobrich's lease expires. Ernst added it should be before the expiration of the lease so there is time to prepare for a bid. Toppa asked how the upstairs would go out to bid. Ernst said Schilling owns the fixtures and the City owns the appliances. Holloway inquired as to whether or not the Upper Deck could be expanded. Ernst said the terminal was not made for a second floor. Toppa sugggested a tentative work session for after the January, 1994, Airport Commission meeting to discuss possible changes at the airport. He suggested inviting Schilling and Dobrich. Werner-Quade asked the Commission if they felt the Business Alliance should be invited to this work session. KENAI AIRPORT COMMISSION OCTOBER 14, 1993 PAGE 6 Toppa stated he thinks Schilling is a part of the Alliance; he will check into it. Toppa said a tentative work session is scheduled to be held after the January, 1994 Airport Commission meeting. 7. AIRPORT MANAGER'S REPORT Ernst handed out his Manager's Report. He said the airport picked up 1,000 enplanements over last year. Ernst stated the parking lot revenues and permits are looking good. He said the security gates project is still going on. The old gates are being left up because the new gates have not arrived yet. He added the new gates should be here in January sometime. Ernst told the Commission the airport will be having it's tri- annual disaster drill sometime soon. He added the National Guard will be included in the drill this year. Ernst reported the runway and taxiway crack sealing and painting job has been finished. He said the airport signage plan has been approved and is being engineered. Ernst stated we will be applying for a new front-end loader and a new sander once AIP funding is allocated. Ernst said the bids were opened for the courthouse soils removal. There is a possibility of having the soil disposed of as an asphalt material and a good place would be the FBO lots. Thibodeau asked Ernst if there is a compass rose on the airport. Ernst said there is not at this time. He said he has the paint for it, but there was too much going on at the airport this summer to get the compass rose done. He added he would like to get it done before the fish haulers start this spring. Ernst also said he would accept any ideas of location for the compass rose. Thibodeau mentioned the middle of the north ramp would be a good place. 8. COMMISSION COMMENTS AND QUESTIONS Toppa said at the last meeting something was brought up that should have not been handled by this Commission and it is being handled by the Administration. Ernst said it had been accidentally put in the last packet. Toppa said he spoke to Manninen and told him if he sees anything on the Airport Agenda that looks questionable (whether or not the Commission should handle it or the Administration) he will have it directed to the Administration. Toppa asked Ernst why Schilling's letter regarding the neon sign went to Council before the Commission. Ernst said the letter came to him two days after the Commission's last meeting. He said he was reluctant to approve Schilling's request without Council approval because Schilling already has six signs at the airport. Schilling had stated he wanted the KENAI AIRPORT COMMISSION OCTOBER 14, 1993 PAGE 7 sign approval expedited for Monday night football. Ernst said Schilling and the Council came to a compromise. It will be a lighted sign, but rather than having "Budweiser" or "Miller" on the sign it will say "Welcome to Alaska," or something to that effect. The sign will be placed around the tube upstairs. 9. INFORMATION ITEMS a. Extension of Construction Schedule, Lot 4, Block 1 F.B.O. Subdivision Toppa asked if this is the Pitts/Eicholtz request. Ernst replied it is. b. Request for Airport Lounge Neon Sign Already discussed. C. Diane Smith, Excused Absence d. 500' Extension for Float Plane Facility Toppa asked what kind of input the Commission will have on the Float Plane Basin extension. Ernst said the Commission can make recommendations to the Council. He said there are a few users that have mentioned making it longer. Toppa asked if anyone has ever run out of water and Ernst replied no. Thibodeau said there are not too many commercial users of the Float Plane Basin. A heavily loaded Beaver should be able to get off with what is there, if it's overloaded there is the possibility of it being too short. He asked Ernst how much interest he gets with the Float Plane Basin. Ernst said the summer transient group is increasing every year. The long term slips are slow. Ernst said the idea of lowering slip rental is still one the Commission should consider. Thibodeau asked if Elephant Lake is going to be used for a float plane parking area. Ernst said he does not know. Werner-Quade said the whole idea of the extension came from Mayor Williams because it was brought up at a Council meeting. Ernst was asked what was going on with the Float Plane Basin; he replied that it was slow and he had been asked by people if we planned to extend the basin. Williams agreed with the extension because the City is in need of sand and this kind of project would kill two birds with one stone. Ernst said Williams had spoken to Nelson, and Nelson replied by letter. Holloway asked Ernst if fuel will have to be paid for by credit card. Ernst replied yes He stated something will have to be worked out in case people come in with cash. KENAI AIRPORT COMMISSION OCTOBER 14, 1993 PAGE 8 Thibodeau said lighting on the Float Plane Basin would probably increase usage. He stated pilots have to plan on being back here before sunset, or land in the dark. He suggested some threshold lighting. Toppa asked if the Commission could get an estimate on just the lighting. Ernst said he will talk to HEA to try and get a cost of hooking up the power out there. Werner-Quade asked if anyone on the Commission is opposed to the extension of the Float Plane Basin. She stated she would like to know where everyone stands on this issue. Everyone on the Commission agreed the Float Plane Basin Extension is a project that will benefit the facility. They also agreed to keep it in mind during the following meetings. e. The Anchorage Times "Too Much Acrimony," from City Manager f. Car Rental Parking Spaces - South End of Terminal 10. ADJOURNMENT Chairman Toppa adjourned the meeting at approximately 8:15 p.m. Respectfully Submitted, Kathy Woo ord Public Works Administrative Assistant