Loading...
HomeMy WebLinkAbout1994-02-10 Airport Commission SummaryKENAI AIRPORT COMMISSION February ~ 1,8, 1994- 7:00 p.m. City Hall Council Chambers Chairman Bill Toppa **'**AGEN-D&*-e** · 1. ROLL CALl, 4. NUTEE iness Enterprise iiii ~~!~ Airport Terminal Lease 7....._~__MRPORT MANAGER'S REPORT 8. C INFORMATION ITEME 10. ADJOURNMENT lo KENA! AIRPORT COMMISSION February 10, 1994 - 7:00 p.m. City Hall Council Chambers Chairman Bill Toppa ROLL CALL .,,,'***'AGENDA'"" Members present' Bill Toppa, Bonnie Koerber, Ron Holloway, Linda Bonewell, Thomas Thibodeau Members absent: Dianne Smith (excused), Robert Scott (excused) Also present' Councilman, Ray Measles; Airport Manager, Randy Ernst; Administrative Assistant, Loretta Harvey 2. APPROVAL OF AGENDA Approved as submitted. 3. PERSONS PRESENT SCHEDULED TO BE HEARD 4. APPROVAL OF MINUTES a. January 12, 1994 Ron Holloway MOVED approval of minutes as presented. Tom Thibodeau SECONDED. Minutes approved as presented. 5. OLD BUSINESS a. CAP Property Airport Manager Ernst reported that he had spoken to Cary Graves, City Attorney, the City does have "Bare Title" to the property but the CAP has been granted full and unconditional use of the property. So basically the city doesn't have any say about what happens on that property. Ernst had also talked to the FAA which he outlined in his letter to the Commission in the Airport Manager's Report. Ernst had spoken to Patti Sullivan and the AlP funding doesn't cover the paving of the proposed extension because of the exclusive use of the CAP property. He read the following from the letter dated 2/~/94: "Taxiways to serve an area or facility primarily for exclusive or near exclusive use of a tenant or an operator not furnishing aeronautical services to the public will not be funded under ALP." Airport Commission Heeting February 10, 10g4 Page 1 The only thing that the CAP could do at this point, would be to write a letter to Ernst requesting that the City fund the extension. And then that request would come back to the Airport Commission, who would then make a recommendation to Council. Tom Thibodeau said he might check into this a little further, because he was pretty sure he knew of another instance in the State where it had been done. The CAP will pursue the letter to the Airport Manager requesting City funds. He felt that the CAP directly benefitted the City of Kenai and it would seem appropriate for the City to be involved. 0 NEW BUSINESS a. Disadvantaged Business Enterprise (DBE) Concession Plan & Airport Terminal Lease Bill Toppa introduced the item. There will be advertising for bids on the Airport Concessions which will include that DBE's are welcome to bid. Ernst explained that the City would rather not have to bid the concessions but they are required to by the FAA. The City will advertise with the mention of DBE involvement, it will probably run between one and two weeks. Ernst said they are trying to get the bids accomplished by the first of April. As far as the advertising, the only thing the F~ requires, as indicated in the last portion of the letter, that suggests a one time premium bid to be submitted. That part of it can change, he was not sure the one time premium can change the only way to do that is with a lottery system, to determine who gets first choice at the spaces. This could create problems, because city leases state you have to leave the space in the original condition. If the businesses wanted to trade spots they would have to do a lot of renovation, to put it back into original condition. Toppa asked what the penalty was if the city did not comply with the 10%? Ernst said the percentage is not the problem, it's just the fact that you are trying to comply with the DBE. Also, a DBE does not get preferential treatment they just have to be notified. Thibodeau asked if the DBE plan was something the city drafted and submitted to the FAA before 10-1-92. Ernst said the City was required to do that. In the past two years the FAA has required that the City do certain things to meet the DBE goals. Thibodeau asked if the City reached their goal of 10% whether they would still have to advertise for DBE? Airport Commission Neeting February 10, 1(2(24 Page Ernst said they were not sure about that. Right now the airport has six percent. However, there may be the possibility that one of the agencies may be a DBE. This agency has already taken out the paperwork but nothing has been returned yet. If this agency is oligiblo, this would meet 20%, of the car rental agencies. If this happens Ernst would write a letter to the FAA, explaining that they would not want to go out for bid, as they might lose their DBE percentage. Koerber asked if the agency would qualify for DBE, and you sent the letter, would the FAA respond positively? Ernst there's no guarantee but he would want to pursue that. It would be easier on the City. He does want to extend Ioasos to fi¥o years. The only thing that would be open for discussion is the method of bidding. The advertising would have to be done in early March to reach an April 1st deadline. Koerber said she felt there was some confusion about how the bidding process would work. Ernst read the city suggests a one-time premium bid be submitted. The top five bidders would get a lease for space in the torminal. The high bidder also would get the first choice for which space. The second high bidder gets the second choice for space, etc. Ties would be broken by drawing out of a hat. Another simpler way would be to put them all in the hat and draw them out by lottery. Gary Zimmerman, Avis Rent-a-Car, said he had just gone through the same bid process in Fairbanks. He felt the one time premium bid was not in anyone's best interest. All of the costs go up every year. Avis feels this is a way Kenai is trying to get more money out of the rental agencies. The City of Kenai needs to protect themselves about responsible bidders at the airport. They might get a non-reputable company that comes in with the premium bid, knocking out a reputable company who will generate more revenue for the airport. Fairbanks set the minimum to high, which was $2,000 a month and they lost National Car Rental. He also felt that June 30th is the worst possible time to be changing leases, from the agencies point of view. It is traditionally the busiest time for the rental business and perhaps there were a few things that everyone would like to sit down and discuss regarding the bid process. Ernst explained that the one time premium bid is a one time deal, it's not every year. He thought perhaps an experience ¢lauso could be in¢ludod in the lease. Ernst also suggested that perhaps Jesse Barksdale could come down and go through the program with the Commission and interested people. Dan Van See, Hertz, presented a letter to the Commission (attached), requesting that a special study committee comprised of three Airport Commissioners be formed to gather information on all aspects of the proposed bid structure, term of lease expiration, rate structure and DBE compliance. Airport Commission Heeting February 10, 1994 Page .~ Ernst thought that was a good idea, however, Council may have already given the direction to proceed with the DBE bid advertising. He asked if the Commission appoints a committee he would then contact the City Manager to see if a Council mandate was given. MOTION AND VOTE: Tom Thibodeau MOVED approval of forming a committee of three to review lease aspects as requested. Bonnie Koerber SECONDED. PASSED UNANIMOUSLY. Toppa asked Linda Bonewell, Tom Thibodeau, and Ron Holloway to form that committee. Toppa suggested they set a work session. Ernst said he would have to check the Council mandate. Measles said he thought the direction had been given at the last Council meeting for the City Attorney to proceed with drawing up the bidding procedure and to draw up the leases by April 1st. Thibodeau suggested that the lease may be able to be extended month by month, while the issue is discussed. Then the F,a~ could be notified that the DBE issue is being addressed. A work session was set for February 22nd, 7:00 p.m. Loretta Harvey said she would check to see if the Council Chambers were available for that night. 7. AIRPORT MANAGER'S REPORT As submitted. 0 COMMISSION COMMENTS AND OUESTIONS INFORMATION ITEMS 10. ADJOURNMENT There being no further business Ron Holloway MOVED for adjournment. Tom Thibodeau SECONDED. The meeting was adjourned at approximately 8:20 p.m. Respectfully submitted, Administrative Assistant A i rport Commi ss i on Neet ing February 10, 1994 Page 4 CITY OF KENAI AIRPORT COMMISSION - WORK SESSION February 22, 1994 - 7:00 p.m. CALL TO ORDER' Members present: Bill Toppa, Linda Bonewell, Ronald Holloway, Tom Thibodeau, Bonnie Koerber, Bob Scott Staff present' Tom Manninen, City Manager; Councilman Ray Measles; Councilman Duane Bannock; Randy Ernst, Airport Manager; Loretta Harvey, Administrative Assistant Also present' Representatives from' Hertz, Budget, Payless, and National COMMITTEE REPORT' Tom Thibodeau reported that the committee had been formed in response to a request from the public to review the Concessionaire Bid Proposal Request for Counter Space at the Airport. Members of the committee were, Linda Bonewell, Ron Holloway and Thibodeau. They each had contacted different Airports around the State to see how they were handling the DBE compliance issue. The Committee came up with some suggestions (attached). Ernst reported that one of the current car rental concessionaires had applied for DBE status and was approved, which means 20% of the car rental agencies are now DBE's. Ernst contacted FAA and has received a verbal response that the 'FAA will allow Kenai to roll-over the present leases. When he receives written verification he will send a letter to all rental agencies explaining the situation. The other items which were recommended and discussed were changing future bid process dates to December, with leases to become effective in July 1st. Setting minimum yearly percentage payment at $12,000. Suggesting a yearly goal for rental of $500,0 00. No decisions were made by the Commission on the above mentioned items. It was determined that DBE goals had been met, which was the main purpose of the work session. Ernst will be checking with the City Attorney on awarding the bids in December with the effective date starting on July 1 of the following year. Also, if the city needs to add additional or revised DBE clauses to the new car rental contracts. Ernst thanked Mike Routt for filling out the DBE paperwork and receiving that status. The City will proceed with roll-over of the concession contracts, without going out for bids. The meeting was adjourned at approximately 8:20 p.m. KENAi AUIPORT COMMISSION March 10, 1994 - 7:00 p.m. City Hall Council Chambers Chairman Bill Toppa *****MINUTES***** 1. ROLL CALL Members present' Dianne Smith, Bob Scott, Ron Holloway, Bill Toppa Members absent (excused): Bonnie Koerber, Tom Thibodeau, Linda Bonewell Also present: Councilman Ray Measles; Airport Manager Randy Ernst; Loretta Harvey, Administrative Assistant 2. APPROVAL OF AGENDA Ron Holloway MOVED approval of agenda as presented. PASSED UNANIMOUSLY. Bob Scott SECONDED. 3. PERSONS PRESENT SCHEDULED TO BE HEARD a. Brenda- Pilgrim Advertising Brenda Pilgrim presented an advertising proposal which would include a poster contest (attached). A statewide campaign would be launched for artwork which could be used to produce a poster advertising the floatplane basin. The only stipulation would be the artist must own and operate a floatplane. The winner would receive a free floatplane slip in 1995, and also 50% of the poster proceeds. The remaining 50% would fund the following year's contest. Estimated total cost would be $3,832.96. Chairman Bill Toppa said it was a great idea. Ron Holloway agreed but felt the contest should not be limited to floatplane owners. Kenai Airport Commission March 10, 1994 - Meeting Page 1 Airport Manager Randy Ernst reported that the advertising budget left for '94 was $1,200.00. He had budgeted $5,000.00 for FY95. He would like to see the '94 advertising effort begin in late April or early May. There had been past discussions considering giving the slips away in 1994, this would require a recommendation from the Commission and Council approval. MOTION: Holloway MOVED to recommend to Council that the 25 Floatplane Slips be given away free for the 1994 season. Dianne Smith SECONDED. PASSED UNANIMOUSLY. Toppa wanted the full commission to review the advertising proposal before a decision was made. He recommended that a committee be created at the next meeting to work with Brenda on the poster contest idea if the commission concurs. Ernst said he would contact Brenda after the March 16th Council meeting. If the Council agrees to give free rental of the floatplane slips that can be incorporated into the '94 advertising campaign. Brenda said she would also contact newspapers statewide by letter, to see if they would do articles on the free slips. 4. APPROVAL OF MINUTES a. February 10, 1994 Toppa asked for additions or corrections to the minutes. minutes stood approved as presented. Seeing and hearing none the 5. OLD BUSINESS Ernst reported that it didn't appear to be a problem to roll-over the Airport Car Rental Leases in December and making them effective July 1. There will also be some verbiage added to the leases to clarify the Disadvantaged Business Enterprises DBE issue. Holloway said that Thibodeau was working to prove that the Civil Airport Patrol (CAP), facility is not used exclusively by the CAP. He is compiling a list of users to submit to the FAA for funds to extend the runway to the CAP building. Kenai Airport Commission March 10, 1994 - Meeting Page 2 Ernst explained that the information and letter should be sent directly to FAA, then it would come through his office and back to the City to appropriate the money from the FAA funds. 6. NEW BUSINESS a. Advertising - Discussed under 3. Persons Present Scheduled to Be Heard 7. AIRPORT MANAGER'S REPORT Ernst noted that the enplanement figures for 1994 are higher than the figures for 1993. Also the pay parking revenue is up. Figures for 1993/94 had been estimated at $60,000 and this figure will probably be exceeded. Il. COMMISSION COMMENTS AND QUESTIONS o INFORMATION ITEMS 10. ADJOURNMENT There being no further business the meeting was adjourned at 7:30 p.m. Respectfully submitted, Administrative Assistant Kenai Airport Commission March 10, 1994- Meeting Page 3