Loading...
HomeMy WebLinkAbout1996-11-14 Airport Commission SummaryKENAI AIRPORT COMMISSION AGENDA November 14, 1996 at 7 p.m. City Hall Council Chambers Chairman Tom Thibodeau 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes October 10, 1996 4. Persons Present Scheduled to be Heard 5. Old Business 6. New Business a. Review RFP for Restaurant and Recommendation b. Jet Traffic--Kenai 7. Airport Manager's Report 8. Commission Comments and Questions 9. Persons Present Not Scheduled To Be Heard 10. Information Items a. Additions and Corrections to AOPA's Aviation USA b. Interspace Advertising--Partial Calendar Quarterly Payment c. City Council Agenda (11/6/96) d. Airport Commission Roster e. Kenai City Council Roster 11. Adjournment Agenda Nov 14.doc KENAI AIRPORT COMMISSION November 14, 1996 * * * Minutes* * * UNAPPROVED 1. Roll Call Members Present: Barbara Edwards, Henry Knackstedt, Tom Thibodeau, Bonnie Koerber Members absent: Sandra Hudson, Ron Holloway, Jim Bielefeld 2. Approval of Agenda Knackstedt moved for approval of agenda. Motion seconded by Koerber. Agenda approved. 3. Approval of Minutes October 10, 1996 Knackstedt moved for approval of the minutes of October 10, 1 996. Motion seconded by Koerber. Minutes approved. 4. Persons Present Scheduled to be Heard 5. Old Business 6. New Business a. Review RFP for Restaurant and Recommendation Ernst explained that there is nothing unusual about the draft RFP adding it had been used previously. Ernst stated they are asking that any bid proposals for the lease amount per month. Ernst noted it is currently $500 per month plus utilities. Ernst explained that was negotiated after there was not interest in the RFP. Ernst stated he wanted the Commission to see the documents and review it. Ernst stated that any comments will be passed onto council. Knackstedt commented that the restaurant does use up a lot of floor space in the terminal adding we may want to reduce it if there is a better use. Knackstedt noted it is a five year contract that could lock it up for a long time. Knackstedt stated he was wondering if a clause could be put in that if the airport determines there is a better use of that space within the five years that there could be renegotiations. Knackstedt questioned if that was a reasonable clause for a contract such as this. Ernst stated he would have to defer to the attorney to determine if this could be included. Ernst clarified that Knackstedt would like a clause suggesting that if the city sees fit to reduce the size of the restaurant to use the space in another way-- Knackstedt interrupted adding there would have to be renegotiations. Ernst noted that the RFP is not based on square footage. Knackstedt commented it is not but they are getting the square footage for whatever their monthly fee is. Ernst stated he could discuss this with the attorney. Thibodeau asked if there has been any interest and wondered if Mitch has shown any interest in continuing? Ernst stated he thinks Mitch will bid adding at least two other people have shown interest. Ernst noted it is a $2000 ante. Ernst noted that Commissioner Knackstedt had stopped to discuss the hours or the type of food served there. Ernst stated that the lease is an exclusive right to serve food at the airport with the exception of the vending machine and the coffee at the ticket counters. Ernst noted this precludes anyone else from coming in with a coffee espresso counter. Ernst added that is not to say the restaurant cannot be a soup and sandwich shop or donut/coffee shop. Ernst stated he didn't feel council would have an objection to that. Ernst noted that the facility is built for a full service restaurant but it is not in the contract that they have to serve a full meal. Ernst noted that the hours of operation were questioned and other than to have the normal hours for the kind of business that it is, the city doesn't have any other stipulations for that. Ernst noted they would like to see them opened more hours but in the past has not been cost effective. Ernst noted that the nature of the Kenai Airport is that people aren't there for any length of time. Thibodeau stated it seems that we want a restaurant there adding it is in competition with other restaurants in town. Ernst advised the Commission that there is a possibility of another recommendation, that being that we don't have a restaurant at all. Ernst noted that has been discussed or the possibility of minimizing the area and putting a snack bar in a glassed area and renovating that end of the terminal. Ernst noted that the city would be talking big bucks then' because it would require renovation. Thibodeau questioned if it would be a thought to put in a request for a proposal for the space that the restaurant occupies. Then, if someone else has a good idea that fits the city's needs it could be better for the city. Thibodeau added that the lessee may be willing to pay more money than for a restaurant. Ernst stated he would Airport Commission Page 2 Minutes November 14, 1996 defer that question to council. Measles stated that the last time this came up that the council was set on having a restaurant for the public. Measles added that at one time there was a discussion that the city operate a restaurant to keep it there. Thibodeau stated he thought it might be a good idea to entertain proposals from individuals to see if somebody has a good idea that the city might like. Ernst stated he thought if it were a soup and sandwich type operation maybe a business could get away with less overhead and maybe make it more viable. Ernst noted that is not for the city to say; it is for whoever bids on it to decide. Thibodeau asked Measles if the council were more in favor of a full time restaurant or would a soup and sandwich place be acceptable. Measles stated there is nothing in the lease that specifies what type of restaurant adding that is left up to the individual. Measles stated he didn't feel the city wanted to limit that. Ernst added that is why is has been left open to allow them to make it viable for the lessee. Thibodeau stated he felt that the RFP looks good if they are looking for a restaurant and that is what the city wants. Ernst stated in the meantime he could bring Knackstedt's suggestion to add the clause about renegotiating the lease if the city found a better use for the space to the council. Thibodeau asked how many square feet are involved and Ernst guessed 600 to 800. Knackstedt stated he felt it would be a shame to tie it up for five years and if something cropped up in that period of time that would be a better use of the space and that the airport could make more money from. Ernst stated that by the same token five years is almost nothing if you are trying to make a business survive. Ernst noted that five years is the maximum allowed under FAA regulations adding that people would like to have it for ten years. Measles stated that if you go into the middle of a lease and try to reduce the space you will probably shut down the restaurant for about a month at least. Knackstedt stated you would have to have a good reason to do that adding he doesn't know what that would be now. Ernst stated he didn't know how a lessee would feel about having that hanging over their head. Knackstedt stated that if he felt it would turn people away that it isn't that good an idea. Koerber asked if the $2000 was a deposit. Ernst stated yes. Koerber asked if Mitch pulls out if the new person will have to put in tables, etc. Ernst stated yes that everything besides the items listed on the back of the lease would have to.be supplied by the lessee. Ernst stated there is a possibility they could negotiate with Mitch on leaving things there. Knackstedt stated he would like to withdraw his suggestion unless someone else has a strong feeling about it adding he didn't realize it would be so restrictive to the lessee. Airport Commission Page 3 Minutes November 14, 1996 Knackstedt stated he didn't see anything that limits airlines from giving away donuts, etc. Knackstedt asked if they may want to have something more restrictive to protect the restaurant so Ernst wouldn't have to act as a policeman. Ernst stated he has authority in the code adding it becomes a little tricky. Ernst noted they used to have the coffee pots on the counters adding that he got the airlines to put them behind the counters and only to serve it on request. Ernst added that he knows some of them are inviting passengers to have a cup of coffee. Ernst stated he could talk to the managers about that. Ernst stated that as soon as an airline has a delay for mechanical or weather they feel obligated to keep passengers appeased. Ernst noted that a couple weeks ago they had donuts there adding that the restaurant did not seat one person. Ernst stated that the restaurant has talked to some of the managers at the airlines offering to give customers the first cup of coffee to get them in the restaurant. Ernst stated that hasn't worked adding he felt there was some personality conflicts. Ernst stated he would have to defer to the attorney to see if they can exclude them (airlines) from serving coffee or other food. Knackstedt stated that apparently the restaurant barely scrapes by and it is those times of delay that the restaurant could be making up losses. Ernst stated he would pursue that on his own adding that he felt they may be better off dealing with the airlines directly. Koerber stated she felt that people still don't know that the restaurant is there adding that she didn't know what else they could do about advertising the space. Ernst stated that 'Louie had the same complaint and they allowed him five different signs. Ernst added that he allowed Mitch to put the neon sign in the window. Ernst stated he didn't know what else they could do. Thibodeau stated it is a difficult problem and they need to advertise like the other restaurants in town. Thibodeau asked if there was any action that needed to be taken. Ernst stated that if the this meets with the Commissions approval it will be submitted to council. EDWARDS MOVED TO FORWARD THE RFP TO THE CITY COUNCIL FOR APPROVAL. KNACKSTEDT SECONDED AND ASKED FOR UNANIMOUS CONSENT. NO OBJECTIONS NOTED. PASSED BY UNANIMOUS CONSENT. b. Jet Traffic-- Kenai Ernst advised that Councilman Measles would like to speak to this topic. Councilman Measles stated that this came up at a council meeting as an inquiry to the Airport Commission to see if the Commission felt like there was any reason to take another look at a once a day jet stop in Kenai on a Seattle bound flight. Measles noted the airlines indicated that four passengers can justify a stop. Airport Commission Page 4 Minutes November 14, 1996 Measles added that if the Commission feels like it is something they would like to pursue, then council would like the Commission to pursue it with an airline and find out what would have to be done at the terminal for security measures. Measles added that some of the security equipment may be supplied by an airline and this may be the same with the ramps that would be needed. Measles stated there wasn't any direction other than to throw it out to see if it needs to be looked at. Measles noted there has been jet service in the past and the last time it was tried was with Wein noting it was an Anchorage, Kenai, Kodiak flight. Most of the time you couldn't land in Kodiak and they took passengers back to Anchorage and put them on another plane for Seattle. Edwards stated it is a nice idea but that the airlines have to have a reason to fly into Kenai. Edwards added that she is sure that the airlines look at this all the time. Edwards commented that she had worked for the airlines for years and she didn't know that anyone had ever come to them and asked them to fly into their airport. Ernst noted that Mark Air had done it at one time. Ernst stated the ramifications of jet traffic include security measures such as tagging everyone and all the accesses to the AOA have to be locked and secured. Ernst stated they anticipated that cost could be somewhere in excess of $500,000 to bring the airport up to that standard. Ernst added that would be to accommodate one airline for one flight and would almost be seen as favoritism. Ernst stated that by the same token if the traveling public would like to see something like that it would probably be the city's obligation to try to determine the costs. Measles commented that part of this gets back to discussion that took place before the meeting, that being the price of tickets from Kenai to Anchorage are almost the same as flying to Seattle. Ernst added that that is a consideration, that being the effect on the airlines here. Edwards stated Alaska could fly in because of their connection with ERA adding that it wouldn't really be a problem for Alaska. Ernst noted it would be a problem for ERA because they will be losing passengers. Ernst stated you would need to nail down where the travelers are going to from here, are they going to Anchorage, the slope, or on? Ernst stated that once you have those percentages you could have a better idea of the impact. Thibodeau stated he felt that would be interesting but noted that the airlines work on a hub system and Anchorage is the hub. Thibodeau noted that first impression would be the impact on Southcentral which is a local company with local employees. Measles stated he felt the impact would be a lot less on Southcentral adding that he felt that 90 percent of the people that connect on are using ERA because of the Airport Commission Page 5 Minutes November 14, 1996 baggage transfer. Edwards asked if Southcentral had anyone who they connected with for baggage and Measles stated no. Ernst noted it would be an investment for the airline to set up a ticket counter. Measles stated Alaska could probably do it a lot cheaper than another airline because of their connection with ERA. Edwards stated they do that in King Salmon. Thibodeau asked if any airlines had shown an interest in doing this or contacted the city. Measles stated not recently. Ernst stated he has not been contacted but there may be some airlines (Reno Air, America West) in Anchorage just starting that may be interested to get more passengers. Ernst noted that may be the first step just to approach the airlines and see if they are interested. Thibodeau stated he felt perhaps they should try to get more information on passengers before contacting them. Ernst stated that would be a hard number to find. Measles stated he felt the airlines could access that information easier than the city. Thibodeau stated perhaps they should request that of the airlines. Ernst stated if we wrote the same letter to four airlines and asked if they would be interested he thought they would go through that drill. Ernst stated we could offer the space and they could check the information. Knackstedt stated he thought they probably have done all that research adding that his father-in-law runs an airline and he is sure he has done the research. Ernst stated it can't hurt to write the letter and send it to Alaska, Reno, United, Northwest. Measles stated he felt that the Airport Commission needs to have some idea in the number of passengers they are talking about. Measles added the first thing an airline will want to know is what the Kenai Airport going to do for us. Thibodeau asked at what point do we bring in public input to see what the community wants. Thibodeau added we should have input to see what the people want. Measles stated it can be done at any time adding it is not required in the code as long as it is in the operation of the airport. Measles noted there has been jet traffic in here half a dozen times since the airport was built. Ernst stated there are some people who would like to speak. Knackstedt asked how much the costs would be to secure the airport and to get the equipment? Knackstedt asked Ernst if he could obtain that information or would he have to hire someone. Knackstedt stated he felt they needed to know the costs for negotiation purposes. Edwards asked why they had jet service before and it wasn't secure. Measles noted that it was secure when Wein was here but it was different when Western Airport Commission Page 6 Minutes November 14, 1996 flew in here. Then, you just went to an airport, got on. the plane, and left. Measles explained that security was pretty minimal. Ernst stated there was a police officer on standby. Thibodeau stated he felt it would be interesting to find out what the FAA would require. Ernst stated he could get that information. Knackstedt asked if the fire department would have to come out for each landing as a crash crew? Ernst noted there will be a time snag with the holidays coming adding he will be gone from December 1 9th tO January 1 7th, Ernst asked if he could get the information and bring it in the first of the year. Thibodeau stated the important time will be in the summer plus that would be a good time to track the passengers. Thibodeau stated he imagined that it would be tracking year this summer. Ernst stated maybe a committee could be formed to contact travel agencies. Edwards agreed to contact the local travel agencies. Thibodeau stated they should attempt to have the information for the first meeting in February. Knackstedt stated they could probably get a rough idea based on enplanements. Ernst stated he thought Edwards could obtain that information from the travel agencies. Knackstedt stated he felt that it could be a check on the travel agencies commenting that he didn't know how accurate the travel agencies would be. Edwards noted you could ask them all and compare figures. Thibodeau stated he thought Sandra Hudson had contacted some of the airlines after she heard about this. Thibodeau noted she will be at the December meeting. Public Comments' Michael Christian--613 Maple Drive, Woodland-Christian noted the residents of Woodland are concerned about the airport noise. Christian noted that when they heard that the city is considering jet traffic they felt they needed to speak to the Commission again. Christian commented that they have a difficult time seeing increased traffic and jet traffic because they get a great deal of that noise. Christian stated that on this side of the airport there are a lot of businesses that will break up the noise before you get to the residential sections. Christian stated that on their side of the airport they are right next to it. Without some consideration, they will get blasted with more noise. Christian stated he would like to see the Commission take this seriously and not encourage it unless there is a strong push by residents for this as taxpayers and people who will be living in the traffic pattern. Another problem with development on that side, there will be more residents with people living closer to the airport and with increased noise there will be a problem with complaints. Christian added he felt he thought it would be Airport Commission Page 7 Minutes November 14, 1996 important to invest some money to secure some of that land before it is developed for airport use or for a sound barrier. Christian stated he would like that included in discussion on promotion of this subject. Dan VanZee, 37037 Nicholas Lane, Soldotna--VanZee stated he has heard about the grumbling about jet traffic in Kenai initially his thoughts agree with Mr. Thibodeau, that being in the summer it would be a big appeal. VanZee stated that some of the tourist companies could take advantage by packaging bed and breakfasts with airlines if there was a jet service direct out of Seattle. VanZee noted it could be a substantial savings especially with the $100 for the fare between Kenai and Anchorage. VanZee stated this may be something the tourism businesses could assist an airline that wanted to come in. VanZee stated it looks like on the surface it will be a great advantage to have that service. Barbara Christian--613 Maple--Christian stated she would like the question added to the questions that are asked as they consider jet traffic, that being if they did institute a service, what time of day would that be. Christian stated a lot of the flights to Seattle are scheduled to get there early in the day which means if they are leaving Kenai they would be middle of the night flights. Another matter is if it will cost a half million dollars to prepare the airport for this, if this is a matter that comes up as a bond issue in front of the people, how does that money come about? Is it a tax issue? Ernst responded that it most likely would come from the airport fund and that wouldn't require any bond or tax. Christian added she would like to request public input on this so that people who have already expressed interest on airport noise would have something to say about it. Thibodeau commented he felt that the jet traffic is quieter now than in the past and quieter than some of the propeller driven aircraft. Thibodeau commented that when they discuss it with an airline they should shoot for a quiet aircraft and a good time of day for the flight. Thibodeau stated he felt the summer traffic would not be for the business but probably more for the tourist. Knackstedt stated the pattern that the aircraft flies could be modified. Thibodeau stated it is generally a different traffic pattern than what we are used to and this is quieter than the piston aircraft. Most noise impact would be on take off noting the quietness of the jets now. Christian commented that there is enough noise in San Diego that they don't let them land at night. Thibodeau agreed that when you are at home it bed it is different. Thibodeau stated he would be in favor of daytime flights. Airport Commission Page 8 Minutes November 14, 1996 Thibodeau stated he didn't think they needed to make any motions but to collect more information on numbers, costs, etc. and place it on the agenda in February. 7. Airport Manager's Report Ernst stated he listed the enplanements for October. Ernst stated that the only other item he wanted to advise the Commission on is that last night at the council meeting he requested action of the council that may have been brought to the commission had time not been of the essence. Ernst explained they are right in the middle of the Aircraft Fire Training grant moneys and how they are going to appropriate those moneys. Ernst stated the FAA said they felt that a change in tactic from a two year project to a one lump sum would be more appropriate since discretionary funds are not roll over type funds. Ernst explained that entitlement funds are rolled over for three years or can be. Ernst stated that with that in mind they felt that by the year 1 998 when the facility is scheduled for completion, the city would have already gotten their entitlements for that year. To have entitlements sitting on the books and requesting full funding through discretionary funds might not be prudent. Ernst stated so they asked council to approve using approximately $700,000 toward the front end of the grant process along with the $490,000 of airport money that has already been appropriated. Ernst explained that the second year rather than going for the infrastructure of the facility to use another $800,000 of the discretionary moneys for the two vehicles that will be required. Ernst commented that hat makes it a nice equipment break and the FAA felt it would be more palatable. Ernst noted they are asking for a grant of $7.2 million and of that $700,000 will be the city. The second $800,000 will be second year discretionary funds. Ernst explained that equipment funding has the highest priority in the discretionary funding categories. Ernst stated that most likely there will not be a problem getting that funding. Ernst noted that council approved that unanimously. Ernst reported they are on tract and that he with the fire chief and the mayor will be traveling to Helena, Montana, on the 20th to view their facility that was just completed in October. Ernst stated that facility is a mirror of the Kenai facility. Ernst stated they will continue on to Modesto to see how that facility is run with the community college which the city has shown interest in involving the University of Alaska in possibility operating the city's facility. Ernst stated they will be back on the 25th and a report will be made to the council probably in January sometime. Ernst stated that at the last meeting he was asked to get figures for car rentals versus enplanements. Ernst stated he has the bulk of the figures but would like to put it in a different form so it might be a little easier to match the monthly car rental figures to the enplanements. Ernst offered to run copies of the figures for Airport Commission Page 9 Minutes November 14, 1996 the Commission tonight. Ernst stated this paperwork shows July 94 to July 96 figures. Kebschull advised the copier was not on but agreed to mail copies to members. Edwards stated if Ernst would have the final numbers done before he leaves, they could wait for that. Ernst thought he would have it complete adding it was time consuming entering data. Ernst explained how he was preparing the information with the monthly rates the car rental agencies have given to the city and showing total enplanements for the month. Ernst stated as they see the one car rental agency drop out, they can see if that number is being affected. Ernst asked if this method seemed reasonable to the Commission. Ernst reported that Payless is current. Ernst noted it is not unusual for the rental companies to lag a month or two months on their statements. Ernst stated they are in the process of getting those. Ernst stated they are current and doesn't foresee any problem but that remains to be seen. Thibodeau asked if they have been operating. Ernst stated that Michael Rout is back in town noting he will be watching the situation closely. Ernst noted that he has had a problem in Phoenix and that his facility didn't work there and there might be some push and shove on that end but that right now it is not affecting the city. Ernst stated he would be monitoring that situation and would let the Commission know. Ernst noted that under the Information Items the revisions were supplied to the AOPA book and assumes that they will deal with it. Ernst noted that the city received the first check from Interspace adding they are selling more and more advertising space. Knackstedt asked how much they were projecting? Ernst stated they estimated $30,000 to the city adding that he feels they will probably be fairly close since they are getting more interest from places like Tesoro and Phillips. Ernst stated he wasn't sure why the cabs have not participated. 8. Commission Comments and Questions 8. Persons Present Not Scheduled To Be Heard Dan VanZee stated this goes with what Ernst was mentioning earlier commenting that it is probably very likely that Payless will not continue to operate. VanZee stated that for the Commissions information that he plans to request formally to be on the list to lease the Payless space if and when they cease business. VanZee stated he would like more space for his business which adjoins the Payless space. VanZee stated he would like to expand his service to Hertz Gold Service which requires additional or separate counter space. VanZee explained this is an upgraded level of service where a customer signs a master contract with the Hertz Airport Commission Page 10 Minutes November 14, 1996 Corporation. VanZee commented that our buddy OJ had advertised that service quite a bit. VanZee stated that when the customer comes in the documents are all prepared for them adding that the customer is able to just pick up the keys. VanZee noted it has been very successful and it is another level of service he would like to provide in the area. VanZee stated he is going to request if Payless vacates the space he would like to lease the space and will pay for the renovation. VanZee noted he doesn't know what the situation is with Mr. Rout adding it is his feeling that he will not continue to operate. VanZee noted he has not been renting cars for the last week or so. VanZee stated he wanted the Commission to know so if they need to complete any research adding council would probably want the Commission's input. Thibodeau asked for comments. Ernst stated he felt it was premature to comment. Koerber stated it is basically what was discussed at the last meeting, that it is the same amount of market share which is what Ernst is working on the numbers for now. Thibodeau stated they would see what happens adding that it would have to go to council and come back to the Commission and that would be the time to talk about it. 8. Information Items a. Additions and Corrections to AOPA's Aviation USA b. Interspace Advertising--Partial Calendar Quarterly Payment c. City Council Agenda (11/6/96) d. Airport Commission Roster e. Kenai City Council Roster 11. Adjournment The meeting adjourned at approximately 8:05 p.m. Respectfully submitted' Mari~¥n Kebschull Administrative ~ssistant Airport Commission Minutes Page 11 November 14, 1996