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HomeMy WebLinkAbout1999-03-11 Airport Commission SummaryKENAI AIRPORT COMMISSION MARCH 11, 1999 Kenai City Council Chambers Tom Thibodeau, Chairman 7:00 P.M. '"AGENDA'" ITEM 1' CALL TO ORDER AND ROLL CALL ITEM o.: AGENDA APPROVAL ITEM 3: APPROVAL OF MINUTES - February 11, 1999 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS ITEM 6: NEW BUSINESS ITEM 7: AIRPORT MANAGER'S REPORT ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS ITEM 9' PERSONS NOT SCHEDULED TO BE HEARD ITEM 10' INFORMATION ITEMS ao bo Kenai City Council Meeting Action Agenda -- February 17 and March 3, 1999. February 1999 Enplanement Report ITEM 11' ADJOURNMENT REGULAR MEETING OF THE CITY OF KENAI AIRPORT COMMISSION MARCH 11, 1999- 7:00 P.M. KENAI CITY HALL CHAIRMAN THOMAS THIBODEAU~ PRESIDING *** MINUTES *~* 1. CALL TO ORDER AND ROLL CALL Chairman Thibodeau called the meeting to order at 7'00 p.m. Members Present: Tom Thibodeau, Henry Knackstedt, James Bielefeld, Dan Van Zee, Lucy Lorenzen, Bob Favretto Members Absent' Ron Holloway Also Present: Airport Manager Steve Atha, Councilman Ray Measles, Contract Secretary Victoria Askin 2. APPROVAL OF AGENDA KNACKSTEDT MOVED TO APPROVE THE AGENDA AND BIELEFELD SECONDED THE MOTION. THE AGENDA WAS APPROVED AS WRITTEN. APPROVAL OF MINUTES Regular Meeting of February 11, 1999. KNACKSTEDT MOVED TO APPROVE THE MINUTES OF FEBRUARY 11, 1999. THE MOTION WAS SECONDED BY LORENZEN. THE MINUTES WERE APPROVED AS WRITTEN. 5. PERSONS SCHEDULED TO BE HEARD- None 6. OLD BUSINESS - None 7. NEW BUSINESS - None 8. AIRPORT MANAGER'S REPORT a. Budget -- Airport Manager Atha reported he will be meeting with the City Manager next Tuesday to review the proposed airport budget. He asked if the Commission was interested in reviewing the budget in the future and offering recommendations or considerations. The Commission agreed they would like to review the budget in the future. Atha stated he would provide the Commission copies of the budget and changes after Tuesday's meeting. AIRPORT COMMISSION MEETING MARCH 11, 1999 PAGE 1 b. Airline Support, Inc. -- Atha reported he had spoken with Airline Support, Inc. Airline Support still intends to bring airline service to the Kenai Peninsula and their target is to begin this summer. Airline Support has experienced some difficulty in acquiring planes, thus the delay in beginning service. c. AIP Funding -- Atha reported he had been meeting with the FAA and will be meeting with them again Friday to discuss federal funding. He noted, Congress let airport funding lapse last year and gave a six-month extension on current funding with the requirement any excess funds be returned. He went on to explain how airports submit their five-year plan and receive funding from fees the federal government collects through airline ticket and aviation fuel taxes. He noted, the Kenai Airport has been receiving about $700,000 per year from the federal government based on the number of enplanements. Atha added, it is now the end of the six-month extension and the federal government is working on new legislation to be passed this fall at the earliest. Another six-month extension had not yet been approved. d. ARFF -- Atha reported the Fire Fighting Training Center was built with discretionary money from the federal government which is not part of the enplanement money. There were overruns on the training center of roughly $500,000 and it has to be finished. The airport is now short the money to fund the training center because of the six-month funding extension. The FAA has indicated they can't assure the airport there will be five-year plan legislation and have suggested the City front the money to finish the training center. If the money becomes available, they will refund the City in the future. Atha expressed his concern regarding this action based on the current budget situation the City is facing. e. Flight Service Station -- Atha reported, the Airport agreed last year to fund a new HVAC unit at Flight Service Station (FSS). Even though the original unit met FAA specifications, it is not meeting the needs of the staff or the FSS building. Bids were taken on a replacement unit. The Airport had budgeted $70,000 and the lowest bid received was $106,000. The FAA personnel in Anchorage indicated they anticipate assisting with the shortfall. f. Y2K -- Atha reported the airport has been working Y2K issues and most everything has been identified and is on line. g. Enplanements -- Atha reported the highest annual enplanements in the past were 130,000; the Airport is currently at 106,000. He added, while it isn't a crisis, a seven percent annual decrease results in approximately $50,000 less revenue coming to the airport. He suggested advertising to remind the community of the local Airport Commission Meeting March 11, 1999 Page 2 ® airport and its services. Knackstedt stated he felt if the airport advertises now, it would appear to be advertising for one airline. Thibodeau stated he felt the past high annual use of the airport was in direct correlation to past oil exploration. He felt finding ways to attract businesses like the Alpine Project and tourism would increase airport use. He also indicated the economy in the Lower 48 directly impacts Kenai's tourism industry and now, because their economy is pretty strong, it is resulting in an increase in tourism bookings this year so far. Knackstedt asked if the airport money would be used to finish the training facility. Atha answered affirmatively. Thibodeau asked if the training center was usable now. Atha stated it was and training sessions were being conducted. Thibodeau asked if the additional money needed to finish the center would result in higher revenues for the Center. Atha answered he did not think that was the case. Thibodeau stated he thought the City should wait for the federal money to come through and not take a chance on it not coming through. Bielefeld stated, he thought the airport has done without the broom until now and perhaps its purchase may have to be delayed another year. He added, he understood and appreciated having a manicured runway with no ice on it but didn't feel comfortable gambling on federal money at this point. COMMISSIONERS' COMMENTS / OUESTIONS Commissioner Knackstedt asked Atha about the Aviation Conference to be held May 9 and 10 in Anchorage at the Federal Express Terminal. Atha stated Assistant Airport Manager Holland was contacting them. He added, he is considering sharing a booth with the Fire Training Center to reduce costs. Commissioner Lorenzen asked from where the funding for the Challenger Learning Center was coming. Measles answered some was federal money and some from Science and Aerospace Foundation. Also, the City has put up some startup funds. A tile-selling project is now underway to help further fund the Center. Commissioner Thibodeau asked if there had been any more talk regarding the future of the Kenai Airport and gathering of information to support a cargo facility. Atha stated his understanding was the City is not interested in pursuing it at this time. He also stated the airport is not currently equipped to handle the needs of a cargo or freight enterprise. Favretto stated the EDD is gathering information currently and added, he thought the project got off on the wrong foot with bad Airport Commission Meeting March 11, 1999 Page 3 information being put in the press, resulting in negative public opinion. Measles stated, the project had not stopped, but is on a much slower track. Commissioner Favretto announced the Alaska Railroad had let bids for three 400' railroad barges to be built. He will be working with APC and Natchiq to see the successful bid comes to the Peninsula and be done at the Alpine Project facility. He added, he felt ARCO's investment in the Peninsula should be supported and as well as APC's efforts to keep our residents employed. He encouraged commission members to support the project if the opportunity arises. He noted, currently 400 people are employed at the Alpine Project. Most of them will be laid off when the project is completed. Commissioner Van Zee asked Atha if enplanement reports could include previous months or even years to see a comparison. Atha answered affirmatively and stated he would change the report. 9. INFORMATION 10. be Kenai City Council Meeting Action Agendas - February 17 and March 3, 1999. March 1999 Enplanement Report. ADJOURNMENT KNACKSTEDT MOVED TO ADJOURN. MOTION SECONDED BY VAN ZEE. MEETING ADJOURNED AT 7:55 P.M. Respectfully submitted, Victoria Askin Contract Secretary Airport Commission Meeting March 11, 1999 Page 4