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HomeMy WebLinkAbout1996-10-10 Airport Commission SummaryKENAI AIRPORT COMMISSION AGENDA October 10, 1996 at 7 p.m. City Hall Council Chambers Chairman Tom Thibodeau 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes September 12, 1996 4. Persons Present Scheduled to be Heard 5. Old Business 6. New Business a. Discussion--Vacated Car Rental Agency Space b. Discussion--Airport Terminal Restaurant RFP c. Discussion--Airport Layout Plan Revision 7. Airport Manager's Report 8. Commission Comments and Questions 9. Persons Present Not Scheduled To Be Heard 10. Information Items a. City Council Agenda (9/18/96 and 10/2/96) b. Resolution 96-71 c. Ordinance No. 1720-96 d. Airport Commission Roster 11. Adjournment Agenda October 10.do¢ KENAI AIRPORT COMMISSION October 10, 1996 ***MINUTES*** 1. Roll Call Members present: Members absent: Others present: Henry Knackstedt, Sandra Hudson, Jim Bielefeld, Bonnie Koerber, Ron Holloway, Tom Thibodeau Barbara Edwards Airport Manager Randy Ernst, Administrative Assistant Marilyn Kebschull 2. Approval of Agenda KNACKSTEDT MOVED FOR APPROVAL OF AGENDA. MOTION SECONDED BY HOLLOWAY. AGENDA APPROVED. 3. Approval of Minutes September 12, 1996 KNACKSTEDT MOVED FOR APPROVAL OF MINUTES. MOTION SECONDED BY KOERBER. MINUTES APPROVED. 4. Persons Present Scheduled to be Heard 5. Old Business 6. New Business a. Discussion--Vacated Car Rental Agency Space Ernst stated he wanted to make the Commission aware that the space is still vacant and the council hasn't really sought any particular guidance. Ernst stated he doesn't know how Commission feels about releasing it to a car rental agency adding that he knows how agencies feel. Ernst stated that it doesn't need immediate action but needs to be thought about. Ernst asked Koerber if rentals went up a little with only four agencies. Koerber stated that July went down a little. Ernst stated he was talking about price per car rather than volume. Koerber stated it is basically the same as last year except for the specialty cars. Koerber stated she felt they needed to discuss this because it is going to be a rough winter. Ernst asked who we were. Koerber stated that being all the rental agencies and the Airport Commission and to set up a date to discuss it. Koerber added she felt it seems a little odd to have it vacant and there is a possibility of another one being vacant. Koerber stated she didn't think everybody had the summer they expected including the hotels and motels. Koerber stated she knew they needed to do something. Thibodeau asked if the agencies have talked about wanting to take over that space. Koerber stated they have discussed it and perhaps it would benefit them to pay just the annual fee. Thibodeau asked Ernst if there has been any interest in the space. Ernst stated not at this point. Ernst noted that the city doesn't make their money from the rental space it is the 10 percent of the gross. Koerber stated that wouldn't change. Koerber explained that whether there are four or three agencies the same amount of people would rent cars. Thibodeau asked if there has been any increased advertising or do the agencies foresee any more being done. Koerber stated it is tough adding September scared her noting she dropped $30,000 in one month. Koerber added that she isn't aware of how the other agencies did in September. Thibodeau asked how long will it be before the 10 percent shows up. Ernst stated it can be up to 2 months. Thibodeau asked about the sales tax for the city and if it has dropped? Ernst stated they could see that enplanements for September have dropped off. Ernst noted that September for 95, that September is almost the figure for August. Ernst stated it looks to him like settling into 94 figures and expects about 110,000 enplanements. Ernst stated he wanted to make them aware and if they want to set up a meeting or put it on the agenda for the next meeting so the agencies can come to the meeting and present their side. Then the Commission can make a recommendation to council. Thibodeau stated he felt they should get together with some of the agencies informally to get a feel for what is going on out there adding if it has been a poor year he can't see that will give much. Ernst stated that perhaps by the next meeting we can get a the information if four agencies bring in as much revenue as five. Thibodeau stated there should be a correlation between enplanements. Ernst stated he wasn't sure what kind of figures they have except monetary figures that they could correlate on a monthly basis. Airport Commission Minutes Page 2 Thibodeau stated they could compare the money taken in the last couple years with now that they have one less. Thibodeau stated it would seem that if you are coming to Alaska you will rent the car at the airport. Thibodeau stated he would like to see the figures. Knackstedt stated it should be easy enough to put together if you know the percentage and the enplanements. Koerber stated the September revenue sheets should be out any day. Thibodeau stated they could look at it next meeting. Koerber asked if they should set it up for old business next month. Thibodeau asked if it needed to be on the agenda for next month. Knackstedt stated maybe informally adding that he doesn't see anything to make a decision on yet. Koerber stated no one has made a bid. Ernst stated it hasn't been RFP'd to let people know it is available. Koerber stated that is true adding she thought they had discussed it and went through it once before, that they would ease off on putting bids out. Ernst stated council has honored the request and were going to honor it to the end of the fiscal year, July. Ernst stated it is not a dead issue and will have to come up. Ernst stated he will try to get money versus enplanement figures. Holloway stated he finds in his business that a lot of their customers rent cars in Anchorage adding he doesn't know if there is anything they can do about that. Koerber stated the price of the plane fares is one. Bielefeld stated the price of a ticket from LA to Kenai is not much different from LA to Anchorage. Holloway maybe the agencies can help by going to local bed and breakfasts and advertising. Thibodeau stated this could be overcome easily now by using the internet and gave an example of how he recently used the internet. Thibodeau noted that the Lycos search engine that he uses does not show Kenai. Discussion on the city's home page and the internet and how it could be used to advertise the airport, etc. b. Discussion--Airport Terminal Restaurant RFP Ernst stated he brought this to the attention of the Commission noting it will expire in February. Ernst stated he doesn't know what the Commission's feeling is about the restaurant adding they have decided to go out for RFP's this coming month. This will enable them to have someone chosen by December so they have a two month period to tell the current lessee his status. Ernst noted there has been a certain amount of interest from people off the street. Ernst stated he didn't know if it will generate, more revenue. Ernst reiterated he had put this on the agenda to keep the Commission informed. Knackstedt asked if there was a lot more to the lease than two pages. Ernst stated yes adding that the rest if their obligations as far as maintaining the premises, etc. Knackstedt commented that most of the time he is flying and it is not open and he Airport Commission Minutes Page 3 cannot have a cup of coffee so has to carry it in. Knackstedt stated that it is a pet peeve of his that the restaurant is not open a lot of times when people are moving about. Ernst stated that one of the stipulations is that it be run time wise as a typical business of that type noting that after 5 p.m. it might be closed. Ernst noted he is open at 5 a.m. Ernst stated it is a matter of economics and he can sit there all day long and no one will buy that coffee and is he going to stay open for that coffee. Ernst stated it is a hard thing at that airport with the frequency of scheduled flights. Koerber commented that it is tough in there. Ernst stated that with a rate of $500 a month and the airport paying all utilities, he still has a tough time. Ernst stated that no matter how you cut it, whether a family operation or a private operation, you will have to have minimum of two people or three to operate. Knackstedt asked how they will decide who to give it to. Ernst stated it will be the lease rate. Knackstedt asked if there was a minimum and Ernst stated no. Ernst explained how the first time it was bid, they didn't get any bidders. c. Discussion--Airport Layout Plan Revision Ernst drew attention to the document that was handed out dated October 4th, Ernst noted that two items were handed out and the second was received late today adding he will ask them to take the second one home and review it. Ernst asked if they have any comments to let him know adding it has to do with air space and noise parameters. Ernst stated the map in front of them is similar or identical to the large one on the board. Ernst stated it makes the changes discussed at the last meeting and sent to Aires. Ernst listed the changes they had discussed, the taxiway extension, repositioning of the grass strip, access road, the service road, the taxiway maintenance road, and the parallel taxiway. Ernst stated .that after discussion with Aires, the extension to the north on the taxiway isn't a big problem. They are increasing the distance from 400 feet to 600 feet and with that there are future ramifications with that. Ernst stated these plans usually last 10 years even though it is a 20 year plan. Note' Commission adjourned to the map on the floor. sketchy. From this point, minutes are Ernst explained the map is the revised version that the Commission gave them. It maintains the same taxiway structure. This eliminates the taxiway as they had before because of the parallel runway, the general aviation runway. It maintains the parallel taxiway but with the extension of Charlie. Ernst stated he is not sure Airport Commission Minutes Page 4 why they did this part. Ernst stated he just got the draft yesterday afternoon. Ernst showed where there is a run up area. Ernst stated he didn't know if that is just to turn off traffic before the end. Ernst stated this shows the repositioning of the grass strip as it can be shown there and what it does is moves it down and takes some of the future apron area that they discuss. Ernst stated they may have a problem with the road to Marathon Road because it does cross the Ryan Creek drainage. Ernst stated he is not sure of what the implications are of that, noting obviously they will need a culvert. Ernst stated he told them he would like to have Marathon Road off this end and have the fence redefined so there is no vehicular traffic going on from this side, basically separating the grass strip from the rest of the airport. Ernst noted that change was made on this drawing. Ernst stated they have taken the access road out. Ernst stated they say this is untypical of airports. Ernst asked why they have the maintenance facility service road out there, and basically it is because they are parking perpendicular to the airport terminal. That facilitates putting the service road out to the outside. Hudson asked who they were and was informed it is Aires. Thibodeau asked if they had put in a service road at all. Knackstedt stated they put it back. Ernst explained why Aires feels this way and noted it is stated in their comments, "However we still believe that providing a such a road on the west side of the apron is more standard practice at airports and is preferable to provide safety and orderly taxiing." Ernst stated he doesn't see how they can make that statement showing how a vehicle would have to proceed across the area. Bielefeld stated he agrees with Ernst and that it is a problem at International. Ernst stated their justification is standard practice at other airports. Ernst stated they would like a decision from the Commission on this tonight. Ernst went back to say they had been told to eliminate the t-hangars off here (shown on map) and make the land available for lease. Ernst commented that maybe at some point in time by dividing these long lots, 300 feet long by 100 feet wide--Aires said that at some airports they do do that where they put actually a road interspersed with taxiways so you can access both sides of the lots. Ernst stated that rather than maintain it as a large aircraft area that may be logical for smaller airplanes. Ernst stated they went into some lengthy discussion about the maintenance road/taxiway. Ernst stated this is Aires preferred model. Ernst stated it drives him crazy because they are crossing several roads showing on the map how one would move across the area. Bielefeld showed if you are an air taxi operator all your people will be walking across there too. Ernst stated this is preferable (shown on map) to this. Ernst noted the FAA will not fund either of these until they can show Airport Commission Minutes Page 5 there is so much interest to do this. Ernst stated their premise will probably be that there are facilities for wheeled aircraft on this side why would you want them on both sides. Ernst stated you have already provided a taxiway to bring the wheeled aircraft to this side, why would you want to start a whole other wheeled side? Bielefeld stated that so an air taxi that is primarily floats can operate a wheeled aircraft in the winter. Knackstedt stated they might as well use it for something else. Ernst stated the big thing is the dollar amount noting both plans are spendy. Ernst stated he can guarantee the city isn't going to spend the money. Thibodeau stated looking long term and the area growth and the separation you may want between floats and Dash 8's. Thibodeau stated looking where the grass strip is being placed and maybe they are trying to put too much in one place. Thibodeau stated maybe it should be moved (showed on map). Thibodeau explained how this plan could work showing where the general aviation area would be. Bielefeld stated Fairbanks does it like that, keeping the general aviation away from everything else. Ernst stated it is a problem because there are wetlands and it is not the airport's property. Ernst stated he felt they needed to eliminate both of these in this master plan noting there is no way it will get done in the next ten years unless there is some large influx. Ernst reiterated that the FAA nor the city will pay for it. Ernst stated that if in eight years three FBO's say they want to lease land over there, then maybe it would be the time to look at it. Ernst stated the FAA would fund this road somewhere down the line but the priority rating that the FAA is coming out with now is getting less and less prioritized. Ernst stated that right now it causes some real problems with the airport layout plan. Ernst stated he felt they should leave the lease lots, leave the loop for aircraft parking, eliminate the taxiways on both ends and clean up the whole thing for right now. Eliminate this road if we are going to expand to the south. Bielefeld stated the letter said they didn't want to extend it to the south. Ernst stated they were under the impression we were going to go the full length to the south, when in fact we are going to go 500. Ernst stated they are not trying to get down to good material, just to water. Discussion about fill and where it would be taken from. Bielefeld stated that is why he would like to know the rest of it. Knackstedt getting back to the taxiway over here (pointed to the map), stated the main reason he was pushing for it was for the lease lots without aircraft access. Ernst stated they are future lease lots. Knackstedt stated he feels if you are going to show the lease lots you have to show access. Ernst stated you have road access and asked why it has to be aircraft access. Ernst stated the point was they were lease lots for the float plane basin. Airport Commission Minutes Page 6 Thibodeau stated if the lots are going to be big enough to build a hangar stating an FBO would want to have a lot big enough to put a hangar on it and use it summer and winter. But, smaller lots for operating out of they could be used without a hangar and if they were told they were lots for parking aircraft and possibly a small building for passengers. Knackstedt stated he was looking at the other FBO' these would be similar. s on the airport and assuming Bielefeld noted that as it stands now the lots would have to be leased with the understanding that there would be no taxiway. Ernst noted the taxiway was something that was just generated at the last meeting. Ernst stated he didn't think it has ever had that connotation, the leases that are done on a commercial basis are just the slips. They are not the land. Ernst stated if they make more slips, more people can park. Ernst stated he felt it would be a tough sale to the council to make it a wheeled and a float facility noting their whole idea when they did the float plane was to make it a bare bones facility for float planes. Ernst stated they did have the foresight to put in the taxiway transition. Ernst stated he thinks for this master plan to leave this area for additional float plane parking and to eliminate this one and this one (? Pointed to map.) Ernst stated then they will have the FAA off their back. Ernst noted it can always be revisited. Bielefeld stated he doesn't like the taxiway and the way it is shaped. Ernst stated he can relay that information on. Ernst stated the other memo that they received to take home that Aires needs some finality so they can do the research for the noise study. Ernst showed on the map what he would present to Aires noting they can always revisit it. Bielefeld commented they could draw in as many lots as he wanted and Ernst stated that is what he always envisioned. Ernst stated that because of the large lot size he had always thought they could be cut down into smaller lots. Ernst stated there are guidelines that allows them to put a small building on there. Thibodeau stated that if the roadway was out of there the way to make lots would be to bring the lots down to the water. Ernst stated that is the way it is now and that the roadway comes to the back side of the lots. Ernst stated he could tell them to make three or whatever fits in the area. Thibodeau stated that they should leave enough room on land for the commercial ones so that people can have 30 by 30 buildings. Bielefeld stated if there is a difference between commercial and private is that the road can be closer to private ones. Bielefeld, using the map, showed an example of how the lots used be used for commercial and private lots. Thibodeau Airport Commission Minutes Page 7 stated he wouldn't even put them in there until the current ones are rented. Ernst stated that if they are put in and all of a sudden there is a lot of interest you can tell the FAA that they were on the plan. Ernst stated he will have them put in another one, eliminate these two options, and leave everything else pretty much as it is. Ernst commented that on a ten year plan, to look what has been done in ten years. Ernst stated he wanted the Commission to know that this is going to happen with the extension. Ernst stated he has already talked to the project engineer and he noticed they were going to move the grass strip. Ernst stated they had always thought of that has a hazard. Ernst stated he thought it needed to be done with the taxiway extension. Ernst noted they are of a mind to do it now. Ernst stated he doesn't see any sense in fighting them at this point but if they wanted to abandon it for some reason they could fight that fight at the time. Ernst stated the engineer says it would be cost effective to do it now with the taxi extension. Ernst showed how if they dig a trench and level this out and fill that area (using map). Bielefeld stated it will cost more. Knackstedt stated it will cost a lot more later. Ernst stated we are estimating the project at ~2 million and can probably do this for $1 00,000. Ernst stated they are advertising for the engineering design. they get the hard numbers they are shooting in the dark. Ernst noted that until Ernst asked the Commission to take the other handout home adding it is fairly technical. Ernst stated he has not had a chance to read it either and asked that comments be returned to him and he would pass them on. Ernst stated he will tell them to eliminate those two taxiways and then they can start working on the next part of it. Hudson stated she has questions but doesn't want to keep the whole Commission. Ernst invited Hudson to stop by any time noting he will be gone next week, Tuesday to Tuesday. Ernst asked Hudson to call and they could set up a time. Knackstedt asked Ernst regarding the avigation easement noting he doesn't know what that is or what was involved in getting it. Ernst stated it is a weird thing adding he doesn't know how many there are. Ernst stated there were avigation easements given to the ones on the west and south end because of the safety protection zone transverses some of those lots. Ernst stated he doesn't now if they are required anymore. Knackstedt asked if they were bought and Ernst stated no they were given. Bielefeld asked if a person buys the lot if they are told this and Ernst stated it is a part of the deed. Airport Commission ~ Minutes Page 8 7. Airport Manager's Report Ernst drew attention to the update of enplanements he had handed out. Ernst reported he is going to get a different summary on the float plane facility stating he has asked accounting to come up with a month-by-month accounting on the facility. Ernst explained how the transactions are counted and that not all of them are valid. Ernst noted that it is necessary to look at all the transactions to see which ones are valid noting it probably will not be available until December. Ernst stated they estimate there is about 500 gallons in the tank. Ernst stated the enplanements are self-explanatory. Ernst stated he did give a year to date figure/graph to show how ERA and Southcentral are stacking up. Ernst stated he didn't mean this to show competition, just the facts. Ernst stated he thought they may be interested in the pay parking noting it is up to 28 permits since this was printed. Ernst noted this generates approximately $70,000 a year. Ernst stated this has put the terminal in the black. Ernst stated the airport advertising leases are starting to increase as people are understanding that is what they will have to pay to advertise in the terminal. Ernst stated it is tough for people to swallow to go from $200 to 82000 for advertising. Ernst stated he will be on vacation from Dec 1 9th to Jan 1 7th. 8. Commission Comments and Questions Knackstedt asked if we are on the ALPA for the float planes. not called them but will make a note. Ernst stated he has 8. Persons Present Not Scheduled To Be Heard 9. Information Items a. City Council Agenda (9/18/96 and 10/2/96) b. Resolution 96-71 c. Ordinance No. 1720-96 d. Airport Commission Roster Thibodeau asked the Commissions to check the Commission roster. stated his home number should be 283-2639. Holloway Airport Commission Minutes Page 9 Thibodeau advised the Commission to talk with car rental agencies and to look over the document handed out this evening. Ernst asked for any comments to be given to him by Monday or Tuesday so he can respond to Aires. 1 1. Adjournment MEETING ADJOURNED AT APPROXIMATELY 8:07 p.m. Resp, j , / Adm ctfu~, submitted: nistrative Assistant Airport Commission Minutes Page 10