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HomeMy WebLinkAbout2000-02-10 Airport Commission SummaryKENAI AIRPORT COMMISSION FEBRUARY 10, 2000 Kenai City Council Chambers 7:00 P.M. ***AGENDA*" ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MINUTES - January 13, 2000 ITEM 4: PERSONS SCHEDULED TO BE HEARD Finance Director Larry Semmens -- Airplane Personal Property Tax Laws ITEM 5: OLD BUSINESS ao Discussion -- Carpet Selection Update ITEM 6: NEW BUSINESS Discussion -- Goals & Objectives 2000 Discussion -- Meeting Format ITEM 7: AIRPORT MANAGER'S REPORT ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS ITEM PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFORMATION ITEMS bo Co Kenai City Council Meeting Action Agendas for January 19 and February 2, 2000. Council policy regarding work sessions for commissions, committees and boards. Updated Airport Commission Membership List ITEM 11: ADJOURNMENT KENAI AIRPORT COMMISSION FEBRUARY 10, 2000 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING MINUTES ITEM 1' CALL TO ORDER AND ROLL CALL The meeting was called to order at approximately 7:01 p.m. Roll was called as follows' Present: Holloway, Bielefeld, Knackstedt, Van Zee, Haralson, Copple, Favretto (arrived at 7:04 p.m.) Others Present: City Clerk Freas, Councilwoman Swarner, Airport Manager Cronkhite and Finance Director Semmens ITEM 2: AGENDA APPROVAL Chair Knackstedt requested Doug Olson be added as Item 4-b. discussion would be about T-hangars at the airport. He noted Olson's MOTION: Commissioner Van Zee MOVED to approve the agenda as amended and Commissioner Haralson SECONDED the motion. There were no objections. SO ORDERED. ITEM 3' APPROVAL OF MINUTES - January 13, 2000 MOTION: Commissioner Haralson MOVED for approval of the minutes as presented and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD 4-a. Finance Director Larry Semmens -- Airplane Personal Property Tax Laws Semmens distributed a fact sheet with information regarding the City of Kenai Personal Property' Tax for Aircraft and reviewed it with the commissioners. He noted, the City of Kenai levies a tax of 3.5 mils on the value of real and personal property located in the city which ~would generate $350 on a $100,000 value. Semmens added, all the revenues from the property tax were deposited to the General Fund and that the Borough collected the taxes for the city. Semmens explained, the confusion generated was due to the Borough's exemption of the first $100,000 of personal property and'the city had not adopted that exemption. Confusion was also generated because taxable personal property included all business personal property and non-business owned airplanes and boats. He noted, boats were taxed differently by the borough as well, i.e. boats were taxed on a flat-tax basis by the borough and the city taxed those items at 3.5 mils. Semmens noted, to determine situs (established when property is in the city for more than 90 days in a calendar year) of the aircraft, the Borough Assessing Department inspected the Kenai airport and the planes were then valued according to "online price index." The Assessor also notes the condition of the plane, if the owner doesn't include that information on the personal property tax form. Aircraft not based in the Borough, but involved in scheduled air transportation, were valued according to the amount of time the aircraft was in the borough's jurisdiction. Semmens also noted the city had $37,500,000 of personal property assessed in the city which generated $131,400 in personal property tax. Aircraft were valued at $7,224,175 and the tax generated was $25,284 (including 26 commercial aircraft and 39 personal aircraft). He noted, the personal aircraft value was $1,331,726 generated $4,660 in personal property tax (averaging to $120 for each personal aircraft). Semmens continued, most personal aircraft were exempt under the Borough tax because of the $100,000 exemption. He noted, the city could adopt a flat tax or a total exemption on aircraft. Copple asked if the 90 days was continuous or a year's total. Semmens answered, he believed it depended on whether the owner of the aircraft lived in Kenai or somewhere else. Copple questioned if the assessor checked the planes in the transient parking area. Semmens noted, he believed the owner could dispute being taxed if they parked in the transient area. However, someone living in Kenai could be taxed when their aircraft was parked at the airport less than 90 days because they wouldn't be paying taxes anywhere else and it was their home base. He noted, there were exceptions and he wasn't aware of how the borough would make their determinations. A general discussion followed. It was noted the cities of Seward, Seldovia and Kenai did not offer exemptions. Also that Seward did not offer exemptions for boats because the lack of the tax dollars would substantially hurt their finances. Those offering the exemption were the Borough, Soldotna and Homer. Councilwoman Swarner explained the amount of revenue ($4,660) received by the city from the personal property tax on aircraft would pay for the summer street banners or one summer employee in the Parks & Recreation Department. Cronkhite reported she had investigated the reasons why planes were pulled from the transient parking areas and found that four people moved out because of the tax; some moved because of other reasons She added, she estimated the tax determined only ten percent of the reasons why planes were moved out of the airport. It was noted the yearly tie-down fee was $400, plus taxes. Cronkhite added, she believed there were who left because they very upset about the tax. She noted, if those that left because of AIRPORT COMMISSION MEETING MINUTES FEBRUARY 10, 2000 PAGE 2 the tax were to return, it wouldn't affect the airport budget substantially. Favretto noted, the tax was only a part of the revenue and pointed out those planes not being at the Kenai Airport would affect fuel sales, car rentals, restaurant receipts, etc. Cronkhite noted there had been a total of eight planes removed from the tie-downs for one reason or another and at least three new planes had leased spaces. She noted, there were other private tie-down spaces on the airport and she was not aware if planes were moved from those businesses due to the tax. Bielefeld noted the revenue lost on the rent of the tie-down space was more than the amount of revenue gained from the tax on a $100,000 aircraft. He added, if the Airport wanted to encourage more planes to be tied down at the Kenai Airport, they needed to be competitive with the Soldotna Airport. Copple asked if a survey could be taken to find out the reasons why the airport was not being used by private aircraft, i.e. tax, tower, weather, tie-down fees, location, convenience, fuel taxes, etc. Cronkhite answered it was a topic of discussion since she began working for the city. Through administration's discussions with users of the airport, the reasons were varied. She noted, there were many who did not like airfields with towers, but there were those who liked the security of the airport. She added, the tie-down fees were competitive with Soldotna. She added, the tax was important to some people and others liked the amenities the airport offered and the tax didn't have a big effect on their decision to stay at the airport. Cronkhite noted, there were several things administration was considering to increase the marketability of the airport. Swarner suggested that if a survey was taken, another question to include would be how to better utilize the float plane basin. 4-b. Doug Olson -- T-Hangars Olson stated his address as 44750 Eddie Hill Drive, Soldotna. He stated he believed the tax was taking away business from the Kenai Airport. Olson explained he was interested in building a ten unit T-hangar and leasing the units could be affected by the tax. If there was no tax, his business as well as others, could be better and the spin-off taxes and sales could create other revenues. Olson distributed some information about the type and size of a steel building he would be wanting to place on a site (56" x 242"). He also noted, he would require an area with a fair amount of apron space in order for planes to taxi alongside of the building. Olson pointed out the lot in which he was interested in acquiring on a plat of a portion of the airport property. He added, he would want to position the ends of the building east/west and the doors facing north/south. The property in which he was interested was highlighted on the plat and was positioned close to the tower and approximately 400' long. AIRPORT COMMISSION MEETING MINUTES FEBRUARY 10, 2000 PAGE 3 Olson noted he chose the lot because the Airport Master Plan discussed placing t- hangars in this area and it was a more organized area for t-hangars. He added, the lot on the plat shown as "city maintenance shop" had not been surveyed and it was unknown what the exact size of the lots would be. Olson noted, water to the building would be only for the one bathroom to service the whole building; each hangar would have separate gas and electric meter; the individual hangars would be sold like condominiums; the property would be leased; the owners of the hangars would form an association, purchase insurance, etc. Olson explained, water/sewer and utilities were available to the property, however he wanted help in paving the taxiway to the t-hangars. Knackstedt noted, he thought the more appropriate area for developing t-hangars would be closer to the existing long- term parking as that area had been identified for that use in the past. Olson noted, he would prefer the other area because of the way he wanted to position the building on the property, the building's height in connection with the runway, and it wouldn't provide the economy of scale to build another building alongside the initial hangars. Discussion followed regarding the placement of the building, weather considerations, etc. Cronkhite explained the building restriction line (100' off the taxiway) was FAA mandated and was based on using that taxiway for larger aircraft, requiring full- strength pavement, taxiing ability of the largest aircraft using the space, etc. She also explained the Master Plan was out of date. The space Olson identified to use for his project would be used for an auxiliary fire station and warm storage building. She noted, the building was in the final design stage and the building would require direct ramp access. Cronkhite added, FAA had determined the city maintenance shop could not be built on the apron. Olson noted he had not discussed the project with the city's building official in regard to parking, drainage, etc. He noted, he had financing available for the $550,000 building he wanted to build and would need approximately 60' width alongside the building and the end of the building to the apron would need paving. Swarner asked if airport funds had been used for paving a leased area in the past. Cronkhite answered, no and added, lots were leased "as is" and improvements were the responsibility of the tenant. Bielefeld noted his business investigated leasing the property Olson had suggested and were not able to acquire a guarantee that an airplane would not be parked in front of the business. Cronkhite explained the area was being marketed for larger aircraft, but the city would be willing to work with Olson in developing airport property. She noted, additional detail would be required prior to any decision being made. Knackstedt noted paving wouldn't be necessary to the business and Olson stated he would want a paved area around the building. Cronkhite stated there were other lessees on the airport providing tie-down services. If paving were done for Olson, it would give him an advantage over the other businesses which would not be fair. AIRPORT COMMISSION MEETING MINUTES FEBRUARY 10, 2000 PAGE 4 Favretto suggested Olson develop a more final plan and offered to help in formulating the plan if Olson needed the help. He added, he believed there was a need for the t- hangars. Olson stated he would investigate the plan further and return it to the Commission. He added, he was aware of the time it would take to acquire the necessary permits, surveys, etc. Haralson asked if the individual owners or an association would have the liability for oil and fuel spills, etc. Olson answered, the association would have the liability and could hire a firm to manage the building. Swarner asked if there was other available property on the airport which would not require as large an area to be paved. Olson answered all the properties would require a lot of paving because of the setback requirements. Olson noted he would be presenting his plan to the city council at their next meeting. ITEM 5: OLD BUSINESS Discussion -- Carpet Selection Update Councilwoman Swarner reported the initial meeting of the carpet committee was on February 1. At that meeting, the members received information about cleaning of the .carpet and talked about other types of carpet to clean and the possibility of installing tile at higher traffic areas in the terminal instead of carpet. Swarner continued, the committee met again on February 9 and spoke with some .carpet company representatives. She added, there were some demonstrations and committee discussed increasing the walk-off areas at the entries of the terminal building. She noted, increasing the walk-off areas would give an added amount of area where dirt, mud, water, etc. could come off the shoes, boots, etc. prior to walking onto the carpet. Swarner also reported, the committee discussed methods of cleaning and it was suggested test pieces of carpet and tile be placed at high-traffic areas to see which work best. Van Zee noted, they also learned that when carpet is shampooed, it should be completely dry before being walked on because any residual shampoo collected dirt quicker when the carpet is damp. .Commissioner Favretto left at 8' 10 p.m. Van Zee also noted, the dirt, sand, etc. needed to come off the shoes before it got to the carpet. He added, it was said that areas where people stand and turn a lot, like in front of the ticket and car rental counters, required a harder surface. The committee felt it would be best to place test carpets and tiles in front of the restaurant and hallway entrances. Swarner noted, the test areas would be 20' in order to get a good idea of the wearability, etc. AIRPORT COMMISSION MEETING MINUTES FEBRUARY 10, 2000 PAGE 5 Swarner reported the next meeting of the committee was scheduled for 2:00 p.m. on Tuesday, February 15 either in the cafe or by it. She noted, ~teve Rutherford and a representative from Lee's Carpets would be present. Swarner added, Rutherford had told her they could help in directing the carpet cleaner on how to clean the carpets they may choose and would supervise the installation in order to have good guarantees. Airport Manager Cronkhite noted the big concern for the committee to research was how to keep the carpets clean, as well as costs of cleaning, how long before the carpet would need to be replaced, matting types, etc. Commissioner Haralson asked if the terminal was covered by liability insurance. Swarner noted, it was through a blanket policy of the city's. Haralson stated he was concerned about risk management if there were slippery surfaces, etc. Swarner noted the committee had discussed those concerns. ITEM 6: NEW BUSINESS 6-a. Discussion -- Goals & Objectives 2000 It was noted Councilwoman Swarner requested the item be included on the agenda. Swarner explained, a number of the commissions and committees formulate a goals and objectives list and requested the Commission to develop one for the year 2000. A general discussion followed and the Commission had no objections and comments were positive in formulating the list. Van Zee stated he believed that without a clear vision for the airport development, it would be difficult to go forward cohesively and it was up to the Commission to create the vision. Cronkhite noted the Airport Master Plan was to be updated every five years and the current Plan was outdated. She added, it had been requested to update the city's Comprehensive Plan and she asked the Master Plan be incorporated into it. Cronkhite stated her support of the Commission's involvement in developing a vision for the airport. Knackstedt suggested a survey be sent to current users of the airport and those to target to use the airport and ask what they thought would be important to offer. Copple stated he thought a market survey should be done so that it would be known what changes needed to be made. Cronkhite stated she would endorse the Commission investigating what the public wanted the airport to offer. She noted, what was marketed should coincide with what the biggest return would be for the airport. Some suggestions for goals and objectives were: · camping spaces by the gravel strip · static display coinciding with another event (pilot training meeting, etc.) to attract visitors and current users to the airport AIRPORT COMMISSION MEETING MINUTES FEBRUARY 10, 2000 PAGE 6 updating Master Plan survey of user needs and wants T-hangar development perimeter lights on Float Plane Basin updating of airport web page to better market the airport Commissioners were encouraged to forward their lists to Cronkhite prior to the meeting so that the list could be included in the next meeting's packet for prior review. Cronkhite added, commissioners could email information to her or her administrative assistant as well, but noted the list of responsibilities at the airport was long and the ability to accomplish everything was difficult at times due to lack of stafff. Copple encouraged the T-hangar concept be expedited as it was competitive and a popular concept. He offered his help in proceeding with the concept. 6-b. Discussion -- Meeting Format The meeting format was briefly discussed. It was noted the Commission's purpose was to review matters and forward recommendations to council and that the Commission was not a decision-making group. Also it was noted, Robert's Rules of Order were required and it was best to follow the agenda and not get sidetracked. Swarner noted, the council appreciated the commission members' efforts and hard work for the city. Haralson suggested Swarner talk with the council members to find out what they wanted the Commission to be investigating and they could include that information on their list of goals and objectives. Swarner stated she would talk with them and when the Commission's goals and objectives were developed, she would have them included in the council packet for their review. ITEM 7: AIRPORT MANAGER'S REPORT a. Avalanche Effects -- Cronkhite reported, during the period of time the highway was closed due to the avalanches, it was an excellent opportunity to illustrate how well the Kenai Airport could operate, even with all the snow. She noted, Northern Air Cargo flew in groceries, medications, etc., as well as Lynden Air Cargo; Everts Air Cargo Express flew in UPS and other items; and ERA added lots of flights and used larger planes to accommodate the increased number of people flYing, as well as transporting mail, etc. Cronkhite added, the Kenai Airport was the only airport capable of handling the aircraft and at times, the only airport open during the road closures that could handle the larger aircraft and stay open during difficult weather conditions. Cronkhite added, she had been contacted by smaller cargo operators currently conducting business out of Anchorage interested in using the Kenai Airport because of Anchorage's higher prices, availability of rental space, availability of air space, etc. She noted, keeping the airport open and operating was a city-wide effort. AIRPORT COMMISSION MEETING MINUTES FEBRUARY 10, 2000 PAGE 7 b. Carpet Discussion -- Cronkhite stated she appreciated the effort the carpet committee and Councilwoman Swarner were expending in the carpet review. She noted, it would be a time-consuming and difficult decision. c. Budget Process -- Cronkhite reported the budget process had begun and department budgets were due on February 11. She noted, funding would be included in the airport budget for marketing, but most of the budget involved maintenance costs. She reviewed the budget process and deadlines to the Commission. ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS Bielefeld-- Asked if the snow removal budget was okay. Cronkhite answered there were contingencies in the budget for extra costs, however transfers would probably be needed by the end of the fiscal year. Cronkhite reported the broom was received. A factory representative would be arriving next week to train the mechanics and equipment operators. A brief discussion followed regarding the advantages and nuances of using the broom for snow removal on the runways. ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFORMATION ITEMS 10-a. 10-b. 10-c. Kenai City Council Meeting Action Agendas for January 19 and February 2, 2000. Council policy regarding work sessions for commissions, committees and boards. Updated Airport Commission Membership List Swarner noted a change in her phone number. Several of the commissioners provided their email addresses to add to the list information. ITEM 11: ADJOURNMENT MOTION: Commissioner Holloway MOVED for adjournment and Commissioner Van Zee SECONDED the motion. There were no objections. SO ORDERED. The meeting adjourned at approximately 9:30 p.m. Mi tes tr cr,'bed,_,~ prepared Carol L. Freas, City Clerk AIRPORT COMMISSION MEETING MINUTES FEBRUARY 10, 2000 PAGE 8