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HomeMy WebLinkAbout1995-09-14 Airport Commission SummaryKENAI AIRPORT COMMISSION AGENDA September 14, 1995 City Hall Council Chambers Chairman Tom Thibodeau 1. Roll Call 2. Ar~r~roval of A_~enda _ _ ~ m ., ADr~roval of Minutes August 10, 1995 Persons Present Scheduled to be Heard 5. Old Business ao Salmon Producers Alliance- Paul Dale Midnight Sun Reservation Central 6. New Business 7. Airport Manager's Report am a. Update on project s Commission Comments and Questions 1 Information Items 10. Adiournment Please contact city hall at 283-7535 if you are unable to attend. C - \I,,IPDOCS'~A ! RPORT'~AGE#9.14 KENAI AIRPORT COMMISSION September 14, 1995 **MINUTES** VICE-CHAIRMAN RONALD HOLLOWAY UNAPPROVED 1. Roll Call Meeting called to order at approximately 7:02 p.m. by Vice-chairman Holloway. call: Roll Members present: Ronald Holloway, Joel Kopp, Barbara Edwards, Artha (Bonnie) Koerber Members absent: Henry Knackstedt, Robert Scott, Thomas Thibodeau Also present: Councilman Raymond Measles, Keith Holland-Acting Airport Manager, Marilyn KebschulI-Administrative Assistant Planning 2. ADDroval of Aqenda _ _ Vice-chairman Holloway asked for approval of the agenda. MR. KOPP MOVED FOR APPROVAL OF AGENDA. MOTION SECONDED BY MS. EDWARDS. UNANIMOUS. = Approval of Minutes August 10, 1995 Vice-chairman Holloway asked for approval of the August 10, 1995 minutes. stated he had read them and didn't see any errors. Mr. Kopp MR. KOPP MOVED FOR APPROVAL OF MINUTES OF AUGUST 10, 1995. MS. EDWARD SECONDED THE MOTION. UNANIMOUS. 4. Persons Present Scheduled to be Heard 5. Old Business a. Salmon Producers Alliance- Paul Dale Mr. Holland, representing Randy Ernst Airport Manager, asked to speak to item 5a. Noted letter in packet from Salmon Producers Alliance outlining their proposal. Further discussion has taken place with Alliance and they have agreed to use the push-button mechanism on the display so that it doesn't continuously run. Provided a video tape for the Commission to preview and to note any objections. At the last council meeting they had made recommendation to proceed with discussion to attempt Kenai Airport Commission September 14, 1995 Minutes Page 1 to agree on an arrangement to place cabinet in terminal. like to show video with approval of Commission. Mr. Holland stated he would Mr. Kopp asked who was the Salmon Producers Alliance. Is it a cooperative of all the canneries and packers in this area? Mr. Holland responded it is the commercial fisherman and canneries. Mr. Kopp asked if they viewed this as a marketing tool or a public relations mechanism to inform the public who they are. What is their motive behind the display? Mr. Holland responded the video is to be used as an awareness tool to inform people as they come through the terminal, visitors who might not be aware of where the salmon come from. Video viewed by Commission. Mr. Holloway noted the video was not quite 10 minutes long. Mr. Kopp noted that was a long time for someone to stand and watch a video. Ms. Edwards commented she felt it was far too long. Mr. Holloway noted that for the majority of people standing in an airport waiting for a plane that the video would be great. However, those getting off an airplane going some place are not going to stand and watch the entire video. Mr. Holland noted that was one of the reasons Mr. Ernst wanted to see the push button feature so that the video isn't continually running. Mr. Kopp stated he felt it was great and whether or not it was too long was the Alliance's issue and they may decide to shorten it in the future; and if a move to approve is necessary, would make a motion. Mr. Holland asked to make an additional comment before a motion is made. Stated plan for a flat lease rate of $50 or $600 per year, basically paid once a year in a single payment. The lease would give them space in the baggage claim area. The letter states any further electrical circuitry that is required would be at the Alliance's expense. Mr. Holland asked if the Commission has any objections to the video or to the proposed lease rate. Mr. Kopp asked how many square feet the counter would take? Mr. Holland stated he did not have the cabinet dimensions as it has not actually been built; however, it is not expected to be very large. Square footage wise, it will be fairly tall. It is supposed to be six foot tall. Mr. Holloway asked if it would be similar to the one that used to be at the airport. Mr. Holland stated Kenai Video used to have a display and it is basically the same type of a lease the city had with them. In that lease, the city received advertisement in their video display so it was almost an exchange for the lease. This is actually not a lease, a special use permit. Ms. Koerber asked where exactly the display would be placed. Mr. Holland advised in the baggage area near the half wall. Ms. Koerber clarified if it would be inside or outside of the fencing. Mr. Holland stated inside the railing. Ms. Edwards commented it would be nice if there were chairs in the area in case people did want to sit and watch the video. Mr. Holland advised the idea was to build the display at eye- level for persons to stand to view. Mr. Kopp asked Mr. Holloway if he remembered the square footage rate charged in the past. Mr. Holloway advised he did not but he felt the $50 a month is sufficient. Mr. Holland advised that the normal rate for a lease such as the rental car areas is $1.65 a square foot. Kenai Airport Commission September 14, 1995 Minutes Page 2 MR. KOPP MOVED THAT THE VIDEO AND THE LEASE RATE FOR A SPECIAL USE PERMIT WITH THE SALMON PRODUCERS ALLIANCE BE ACCEPTED. MOTION WAS SECONDED BY MS. KOERBER. MOTION PASSED UNANIMOUS. b,, Midnight Sun Reservation Central Mr. Holland asked to speak to this item. Mr. Holland advised he was surprised by the council's decision at the last meeting to this proposal. Advised negotiations have been proceeding with Barbara Kangas. Mr. Holland noted that the council had had concerns with competition from Ms. Kangas with other agencies within the city limits. Council was also concerned about the lease rate and they did not agree with the rate as it had been presented, $50 per month or $600 per year. One of the things the council had asked to be investigated was that the lease be figured at the current rate that the rental car agencies pay. Using those rates, it will increase to approximately $90 with tax per month plus the ten percent off of the gross receipts. This information is being prepared to be presented to the council. Mr. Kopp asked if that was the rate the car rental agencies pay. Mr. Holland responded correct; they pay $1.65 per square foot for the lease area and ten percent of gross revenues. Mr. Kopp stated that rate hardly seemed fair to Ms. Kangas based on the size of the space in comparison to the rental car areas. The space would not be closed in, just stuck at the end of the counters. Not an equal space for equal money. Mr. Holland noted that the rental agencies were not necessarily closed in and secured. That people can access behind the counters when they are closed if they choose to. Mr. Kopp stated that he felt that overall the space is question was just not as attractive a spot or as nice as the rental car area. Mr. Holland noted that Ms. Kangas was not asking for much space as she doesn't anticipate the need. Ms. Koerber noted that she heard from some of the car rental agencies and that they had voiced their opinion that they felt the rate changed Ms. Kangas should be equivalent to the rate they pay. Ms. Edwards stated she felt that was fair. Ms. Koerber voiced concern that Ms. Kangas has stated she will not be involved in the car rental business; however, wondered if any legal statement to that effect. Mr. Holland stated it was not her intention to do any car rental reservations. Ms. Koerber stated it wasn't stipulated. Mr. Holland stated he believed that was addressed in the minutes of the last meeting. Ms. Koerber stated she remembered the discussion but felt it needs to be in the permit. Mr. Holland stated the special use permit will specify that stipulation. Vice-chairman Holloway asked Mr. Holland if he needed anything from the commission at this time. Mr. Holland responded no, he was just updating the commission. Councilman Measles asked if this would be a special use permit or a normal lease. Mr. Holland responded this would be a lease. Councilman Measles stated the lease document could spell out what could be done under the lease. Mr. Holland agreed. Mr. Kopp questioned why the contract says special use permit. Mr. Holland noted that was the original and to note under Item 4B, rent shall be $50 per month or $600 annual. This has now been changed to $1.65 per square foot based on a 52 square foot area. This figures to $1,029 per year as well as the ten percent from profits. 6. New Business Kenai Airport Commission September 14, 1995 Minutes Page 3 1 Airport Mana_cjer's Report a. Update on projects Mr. Holland brought the commission's attention to the packet materials. On project updates: The airport maps are planned. The aerial photos taken in August and are being digitized now and should be available in approximately six weeks. Regarding the automated fueling system, Mr. Holland stated he has spoken with U.S. Bank and Mr. Graham insured him that the city would have an account number by last Friday. He then said Monday or Tuesday and to date we still don't have an account number. Reconstruction of steps at south end of terminal are complete. Minor finishing to be completed. Automatic flushers on sinks, toilets, and urinals in progress. Mr. Holland stated he was approximately halfway through project when Mr. Ernst took leave so the project will resume upon Mr. Ernst's return. Hot mopping of roof terminal completed. Still have one leak that is being investigated. Suspicions that may have something to do with glass tube going into the bar area and this may have been confirmed. Overflow parking area upgrade has been started. Area has been graded out and ready for fabric and gravel cap. Currently waiting on Street Department to purchase gravel and haul it in. Camp sites at the float plane basin have been cleared and brought up to grade with sand. Need to be capped with gravel. Looking into purchasing picnic tables and fire pits from the high school and these would be purchased in the spring as they are completed. Received locks to re-key the terminal building to go to a better locking system as well as to replace some of the locks and handles that are worn out and need to be replaced. Just a matter of time for installation. The carport and garage for the pickup and the airport car and tractor has gone to bid and accepted and awarded. Contractor asked for two weeks to get the building in and begin work on that. Vice-chairman Holloway asked who received the bid. Mr. Holland responded it was awarded to Alaska Building Systems and that they were the only bid the city received. Mr. Holland continued. The new sewer line at the end of the terminal which is to remedy a problem of continuing freezes through the winter for the restaurant has begun. All materials are in stock and is awaiting scheduling by the Water and Sewer Department. Mr. Holland directed the commission's attention to the next page of his report regarding the airport long-term paid parking. As of this date 19 permits issued and a total of $17,927.65 gross revenues. Only 29 vehicles towed. Either people are not parking in the area or having problems with towing company. This will be checked on as in the last two months the number of towings have dropped off. Mr. Holloway noted that perhaps people are finally believing they will be towed. Mr. Holland responded that he does get a lot of phone calls now from people requesting they not be towed. Next, Mr. Holland reviewed the Enplanement Report. He noted a total of 12,979 enplanements for the month which is approximately 604 enplanements over last year. Noted that Mr. Ernst had reported the airport is at 2,200 enplanements over last year's total at this point which would bring the total to 2,800 enplanements over last year as of this date. Kenai Airpod Commission September 14, 1995 Minutes Page 4 Vice-chair Holloway asked for any other comments or questions. Mr. Kopp stated he had been asked by a pilot to ask a question of Mr. Ernst so will direct it to Mr. Holland. That is, why has the airport not built hangars for private planes. Is it not cost effective? Mr. Holland responded that there has been questions about that, but he would have to refer that to Mr. Ernst as to why it hasn't been looked into. However, he knows they are costly as he has personally looked into the cost and cannot see any feasibility at this time. Mr. Holloway stated it has been looked at in the past and the cost has been a major problem. For example the t-hangars in Anchorage and construction costs have gone up tremendously since they were installed and the amount of rental you get really doesn't pay for the amount of construction. Mr. Kopp clarified that rent would not cover the cost. Mr. Holloway stated that by the time they were paid off they would be in misrepair. Mr. Holland stated the airport has a difficult time now trying to get spaces rented. Mr. Kopp stated he talked to a metal building contractor today and he said roughly about $25 per square foot to construct a basic, uninsulated, unheated shell. Vice-chair Holloway asked Councilman Measles if he had any comments or additions. He noted none. am Commission Comments and Questions 9. Information Items 10. Adjournment MR. KOPP MOVED FOR ADJOURNMENT. MOTION SECONDED BY MS. EDWARDS. MEETING ADJOURNED AT APPROXIMATELY 7:37 P.M. Respectfully submitted: Marilyn Kebschull Administrative Assistant Kenai Airport Commission September 14, 1995 Minutes Page 5