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HomeMy WebLinkAbout1997-01-09 Airport Commission SummaryKENAI AIRPORT COMMISSION AGENDA January 9, 1997 at 7 p.m. Kenai City Hall-- Upstairs Chairman Tom Thibodeau 1. Roll Call 2. Approval of Agenda 3. Approval of Minutes December 12, 1996 4. Persons Present Scheduled to be Heard 5. Old Business a. Car Rental Proposal b. Restaurant RFP 6. New Business 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 (12/18/96) b. Reappointment Letters c. Airport Commission Roster d. Memo to R. Ross dated 1/9/97 11. Adjournment * * * NOTE MEETING LOCATION* * * Agenda .Jan 9.doc 1. Roll Call KENAI AIRPORT COMMISSION January 9, 1997 at 7 p.m. ***MINUTES*** Members present' Bonnie Koerber, Tom Thibodeau, Ron Holloway, Henry Knackstedt,. Barbara Edwards, James Bielefeld, Sandra Hudson Members absent' None Others present' Councilman Ray Measles; Acting Airport Manager Keith Holland; Administrative Assistant Marilyn Kebschull; and, Dan Van Zee of Hertz Rent-A-Car 2. Approval of Agenda KNACKSTEDT MOVED FOR APPROVAL OF AGENDA. KOERBER SECONDED THE MOTION. AGENDA APPROVED. 3. Approval of Minutes December 12, 1996 KNACKSTEDT MOVED FOR APPROVAL OF MINUTES. MOTION SECONDED BY HOLLOWAY. MINUTES APPROVED. 4. Persons Present Scheduled to be Heard 5. Old Business a. Car Rental Proposal Thibodeau advised he was at the Council meeting last night and that he would bring the group up to date. Thibodeau advised he had tried to get a hold of the individual, Mike Routt, and did not have any luck. Thibodeau stated today he called Payless and they put him through to their main office in St. Augustine, Florida, and talked to someone who was familiar with the situation. Thibodeau stated the head of the Alaska division was there and she was interested in what was discussed at council. Thibodeau noted that she knew all about that and knew about the Airport Commission's recommendation to reduce spaces to three. Thibodeau stated Payless wanted to let the Airport Commission know that they hope to have someone else here and that they were in serious negotiations with someone in the area tb take over the Payless franchise. Thibodeau stated they wanted it known that they were against any reductions of car rental agencies at the airport. Thibodeau stated he asked and was informed they were in discussions with Kenai Chrysler. Thibodeau stated they had thought someone would be at the council meeting last night who would make sure that it wouldn't be reduced to three. She stated they wanted to hold onto the space that they had now and that it could be transferred to the new franchise. Thibodeau stated they said they would contact Routt and have him transfer the space to Kenai Chrysler. Thibodeau noted that at the Commission's last meeting they proposed to reduce the spaces to three. Thibodeau stated that it was discussed at the council meetin, g. Council was brought up-to-date on the Commission's thoughts. Thibodeau stated that council was informed that there were two vacant spaces with people who were interested in renting them so the city wouldn't lose any money on them. Thibodeau stated it was brought up to rent to those two people or to bring Avis in and see if they were interested in joining the other two agencies in dividing the space up from five to three. Thibodeau noted that Councilman Joe Moore spoke up and felt he should bow out because he works for Obendorf, Tutor and Lambe and may have a conflict. Thibodeau stated there was a lot of discussion amongst the council and it was decided he could discuss it but may decide later not to vote on it. Thibodeau noted that Councilman Bannock was very vocal and stated he didn't believe there should be a policy set to reduce the number of agencies. Thibodeau stated they were saying they wouldn't mind reducing the number of spaces from five to three as long as they didn't have to set a policy that there be only three agencies allowed. Thibodeau stated this would mean that if someone came along in the future, they would have to use one of the other vacant spaces at the airport, possibly one of the airport booths or the glass booth. Thibodeau noted that every five years the rental spaces come up for bid. Thibodeau stated he felt that process is unclear and that they may want to discuss the process in the future. Thibodeau noted that there is every chance that one of the current renters may not maintain their lease when the space is rebid. Thibodeau noted that council did give the Commission permission to meet with the rental agencies and discuss what they want to do in dividing up the space. Thibodeau noted he had spoken to Avis, Gary Zimmerman, who is interested in splitting the five spaces into three spaces. Thibodeau noted that he understands that will change his rental fees and share in the cost of the renovation. Thibodeau noted that the other agencies have already noted their interest. · Thibodeau asked for discussion and noted they could discuss this item further tonight or set up a meeting for another time. Thibodeau noted that Zimmerman had stated he would be available anytime; however, he was not available tonight. Airport Commission January 9, 1997 Page 2 Minutes Knackstedt clarified that they wanted to divide the space evenly. Thibodeau stated that is what Zimmerman had wanted. Knackstedt asked Van Zee if that worked out for him. Van Zee noted that it would be about 1 6 feet each which would actually give everyone about twice as much counter space. Van Zee stated he needs a space at the counter for a sign for Gold Key Service counter space, to provid'e two lanes for customers. Koerber asked what Zimmerman's attitude was and if he seemed enthused. Thibodeau stated he had told Zimmerman the Commission wanted to know what his thoughts were and if he wanted to participate and the various options, including different size counters. Thibodeau noted that the Commission wanted to give Avis the opportunity to participate and Zimmerman stated they would like more space. Thibodeau stated he had said he would be interested in doing it and sharing the costs. Thibodeau stated that if it is broken into three spots that they will have to invest some money and Zimmerman noted his concern about the time left on the leases. Thibodeau commented that perhaps they could start the leases again at a five year period. Thibodeau stated he thought Ernst had mentioned this idea adding that he thought all of the leases have at least two and a half years left on them. Edwar. ds stated her concern is that Payless has the space and they are not willing to give it up and nothing can be done until they are gone. Thibodeau noted that none of this will happen until then or if Payless gets the space back before then. Edwards clarified that their lease is not up until June. Edwards asked if someone takes over the space if they take over the debt that Routt left. Thibodeau noted the debt is Routt's. Thibodeau stated he felt Payless has some responsibility for the debt and had mentioned it to Payless. Thibodeau stated Payless wasn't interested in that. Thibodeau stated he didn't feel he would be interested in having Payless in there unless the debts were paid. Thibodeau noted that Payless is not bound legally to be responsible for the debts. Hudson asked if it was unrealistic to have mobile walls for future reorganizations. Hudson commented that the walls are not there for sound. Van Zee stated they are sound barriers and Keith Holland noted that is why they were put up. Thibodeau asked Councilman Measles if he had additional thoughts. None noted. Koerber noted her interest at the Council meeting when Mr. Moore abstained because of conflict of interest it seemed that with Chrysler that there would be a conflict of interest with Mr. Bannock. Koerber noted Mr. Bannock had been very vocal. Thibodeau stated that for those who were not aware that Mr. Bannock is the second in command of Alaska Chrysler. Thibodeau noted that it was Mr. Moore's choice to bring up his conflict and that Mr. Bannock must have viewed his position differently. Holloway commented that Mr. Bannock may not be aware of Airport Commission January 9, 1997 Page 3 Minutes Chryslers involvement. Knackstedt asked if they voted on anything and it was noted it was just a discussion. Thibodeau stated he felt it was the Commission's job to get together with the agencies and to come back with a proposal to council. Koerber asked if it was possible to get a hold of Mr. Zimmerman to see when he could meet with the commission. Thibodeau stated he could call him tomorrow and stated that he would be available when the Commission wanted to meet. Thibodeau noted that Zimmerman's points were that he wanted to participate, he would be willing to pay for it, and he would like to see the lease redone. Holloway asked how Koerber and Van Zee felt about starting over with the lease. Both agreed five years would be the minimum time with the investment they will be required to make. · Keith Holland noted that legal department would have to be contacted to see if the leases could be started over. Thibodeau stated they would do that and present the information to the council. Van Zee noted that they are talking about dividing up the space which is a lot more expense than what was originally talked about which was just taking out two partition walls. Van Zee stated if they plan to completely remodel, perhaps some costs should be born by the city. Measles asked if there is any electrical or phone wiring in the walls. Van Zee stated no. Van Zee commented his fears are that it is a city project at the airport. Van Zee stated they would be talking about tearing out all the cabinetry, etc. Van Zee stated he had sat down and tried to figure out how it could be done without changing the cabinetry and it could be done by filling in some blanks. Van Zee stated it would leave one space with the entry in the middle rather than on the end. Holland asked if the wall wrapped all the way around the out side which means the cabinet is an intricate part of the wall. Van Zee stated he felt that could be dealt with panels going in to match the existing. Van Zee noted that if that kind of remodeling is going to be acceptable to the city, they will be taking out four partition walls and moving or rebuilding two walls. Van Zee stated he would personally like to see the city participate with that expense by doing the countertops and front area and the tenants remodeling the rear. Thibodeau asked if this would have to be done through a bid process. Measles stated it would depend on costs. Holland noted that anything over $10,000 would require an RFP. Airport Commission January 9, 1997 Page 4 Minutes Measles stated he felt trying to reduce from five to three equal spaces would be a major project involving redoing all of the work the city just did. Plus moving the back walls. Holland noted that electrical would have to be moved. Van Zee stated they have limited electrical outlets. Van Zee reiterated that if they are talking about complete remodeling that is much more than their initial proposal which was to remove the partitions. Measles advised Holland to have La Shot (city engineer) look at this and see what it would require. Measles noted these things always turn out to be a lot more than is usually thought at the beginning. Discussion about what the remodeling may entail. Thibodeau asked if it was felt that they could get an idea from La Shot about what they may be up against and then have a meeting with the agencies and see who wants to participate. Koerber stated that she felt that they had just gone through a discussion on how the airport cannot sustain more than three agencies and that the initial proposal was to remove partitions. Koerber noted they are talking about much more extensive work now. Thibodeau noted that they had contacted Avis and they were interested. Koerber felt they may want to regroup and look at costs and options. Measles commented that he felt all three agencies need to know what costs they are looking at from the beginning and whether they will have to bear the total costs or if the city will bear part of the cost. Knackstedt stated he felt they should get an idea of what costs may be for both concepts. Koerber drew a sketch of what she had visualized which wouldn't require much remodeling. Agreement that Koerber's idea would be inexpensive. Koerber noted that it could be changed back later and that it would be easy to do. Koerber suggested again that they fall back and get information on costs. Kebschull advised that La Shot is fairly busy and may not be able to provide information on costs in a short time span. Holland recommended that they ask a contractor for costs. Suggestion from the group that Van Zee contact a contractor for bid. Van Zee stated he would need to know which direction they were headed. Thibodeau stated that they had contacted Avis and with their interest they would need an estimate of what it would cost to make three equal spaces. Thibodeau stated that there was a suggestion today that they just rent the spaces as the~/were adding the suggestion was made by a council person. Thibodeau stated that is what the council would like to do this. Thibodeau noted this would be the easiest route, just to pick up the leases. Van Zee asked where this would leave Avis. Koerber stated that was their original idea. Koerber also noted that if they did that they could always make their walkway between her space and Van Airport Commission January 9, 1997 Page 5 Minutes Zee's space. Koerber noted they could replace it if they left. are allowed to do that within the scope of their lease. Holland noted they Measles noted that they may have to bid the spaces again to allow all three agencies the opportunity to bid for them. Van Zee noted his original request was to lease the space. Thibodeau reiterated he felt that they need to bring Avis into this and plan a work session. Kebschull supplied a list of available dates for the council chambers. Decision to hold work session next Tuesday, the 14th at 7 p.m. b. Restaurant RFP Thibodeau reported that Don Middleton was the high bidder for the restaurant at $810. The only other bid was from the current occupant at $500. Thibodeau · stated he plans to open a soup and sandwich shop and that he plans to be open more hours. Thibodeau noted that council will be reviewing the bid at their next meeting. Holland noted that Middleton plans to name the business "Quimby's" (?sp) with an aviation theme. Holland noted that Quimby was the last name of the first registered woman pilot. Holland added that he wants to get big in the espresso type stuff. Thibodeau asked for time frame. Holland stated he wanted to stay open on weekends and later at night. Holland noted that he cannot occupy the space until March 1st. Holland was asked if he was local and explained that he has a Cooper Landing address but a residence in Soldotna. 6. New Business 7. Airport Manager's Report Holland drew attention to handout and noting there were 111,111 enplanements last year. Holland noted Southcentral had 14% of the market share and Era had 86%. Holland noted that on the back were the pay parking revenues and permit parking revenues. Holland noted a new category has been added is for the advertising revenues. Holland asked if the rotating beacon was operating. Holland noted that it is working but doesn't like the cold and they have ordered a heater for it. Bielefeld Airport Commission January 9, 1997 Page 6 Minutes asked why it had changed. Holland noted it is new with bearings and it has been too cold for it. Bielefeld asked about gates at Kenai Air. Holland noted parts were on order and they should be back in service soon. Holland noted they were special motors and they didn't have spares but would be getting spares. Holloway asked about the moose population. Holland advised they had done a moose round up recently. Holloway asked about the coyote population and Holland noted there were a few out there. Holland noted that Ernst will be back on the 20th. · 8. Commission Comments and Questions 8. Persons Present Not Scheduled To Be Heard 9. Information Items a. City Council Agenda (1 2/18/96) b. Reappointment Letters c. Airport Commission Roster d. Memo to R. Ross dated 1/9/97 Thibodeau asked for any corrections or changes to the roster. Holland noted that 252-4639 is his new home phone number and new address is 104 N Gill, Apartment B21 0, Kenai. Thibodeau noted his cell number is 252-4910. Holland stated that if anyone is interested in hearing presentation from Don Middleton he is to be at the council meeting on Wednesday. Holland noted that is when the RFP will be reviewed. 11. Adjournment Meeting adjourned at approximately 7'50 p.m. Reslect~,~y submitted' I~l~r I.n Kebschull Administrative Assistant Airport Commission Minutes January 9, 1997 Page 7