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HomeMy WebLinkAbout2000-03-09 Airport Commission PacketKENAI AIRPORT COMMISSION MARCH 9, 2000 Kenai City Council Chambers 7:00 P.M. '"AGENDA'" ITEM 1' ITEM 2: ITEM 3: ITEM 4: ITEM 5' a, ITEM 6: ITEM 7: a. ITEM 8: ITEM 9' ITEM 10: b. ITEM 11' CALL TO ORDER AND ROLL CALL AGENDA APPROVAL APPROVAL OF MINUTES - February 10, 2000 PERSONS SCHEDULED TO BE HEARD OLD BUSINESS Discussion -- Foreign Trade Zone Discussion -- Landing Fees Discussion -- Goals & Objectives Update -- Carpet Committee Report NEW BUSINESS REPORTS Commission Chair Airport Manager City Council Liaison COMMISSIONER COMMENTS AND QUESTIONS PERSONS NOT SCHEDULED TO BE HEARD INFORMATION ITEMS Kenai City Council Meeting Action Agendas for February 16 and March 1, 2000. Alaska Peace Officers Benefit Program Flyer Advertisement. Updated Airport Commission membership list. ADJOURNMENT KENAI AIRPORT COMMISSION FEBRUARY 10, 2000 Kenai City Council Chambers 7:00 P.M. ***AGE. A*** 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 ITEM a, Discussion -- Carpet Selection Update NEW BUSINESS Discussion -- Goals & Objectives 2000 Discussion -- Meeting Format ITEM 7: AIRPORT MANAGER'S REPORT ITEM 8: COMMISSIONER COMMENTS AND (~UF~TIONS ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFO~TION ITEMS a. b. 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 ITEM 11: ADJOURNMENT KENAI AIRPORT COMMISSION FEBRUARY 10, 2000 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIR HENRY KNACKSTEDT, PRESIDING 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, HaraIson, 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 SF~ONDED the motion. There were no objections. ~O ORDERED. ITEM 3: APPROVAL OF MINUTES - January 13, 2000 MOTION: Commissioner Haralson MOVED for approval of the minutes as presented and Commissioner Bielefeld SECORDED the motion. There were no objections. SO ORDERED. ITEM 4: PER3ONS SCHED~ED TO BE HEARD 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 fa'st $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 fiat-tax basis by the borough and the city taxed those items at 3.5 mils. Semmens noted, to dete _rro_~ne 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. Se_m_mens 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, Soldoma and Homer. Councilwoman Swamer explained the mount 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 wa~ only a part of the revenue and pointed out tho~e 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 fie-downs for one reason or another and at least three new planes had leased spaces. She noted, there were other private fie-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, fie-down feea, 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-dom fees were competitive with Soldoma. She added, the tax was important to some people and others liked the amenities the airpo~ offered and the tax didn't have a big effect on their deciaion to atay at the airpo~. Cronkhite noted, there were aeveral 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, Soldoma. 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 parldng 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. AIRPO~ 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 · 5-a. Discussion -- Carpet Selection Update Councilwoman Swamer 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 te ~rr~Jnal 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 waltdng 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 Swamer 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, Steve 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 dean 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 Swamer requested the item be included on the agenda. Swamer explained, a number of the co_m__missions 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 parameter 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 staff. 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 Com__rnission'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. Swamer 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 hand!~ng 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 ~UF~TIONS 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. ~O ORDERED. The meeting adjourned at approximately 9:30 p.m. Minutes transcribed and prepared by: Carol L. Freas, City Clerk AIRPORT COMMISSION MEETING MINUTES FEBRUARY 10, 2000 PAGE 8 , NAI PENINSULA 8OROUGH 144 N. BINKLEY · SOLDOTNA, ALASKA · 99669-7599 BUSINESS (907) 262-4441 FAX (907)262-1892 · January 28, 2000 DALE BAGLEY MAYOR Mr. Rick Ross Kenai City Manager 210 Fidalgo Avenue, Suite 200 Kenai, Alaska 99611 Re: Establishment of a Port of Entry and Foreign Trade Zone Dear Rick: RECEIVE£' 31 2000 cITY OF KENAI , ADMINISTRAT,,!0N .,, Last November the Borough Assembly enacted an ordinance supporting the establishment of a foreign trade zone on the peninsula and appropriating funds for this purpose (KPB Ord. 99-60). I believe one of the reasons this ordinance passed v~as because of the resolution submitted by Kenai and other peninsula cities. Thank you for providing your statement of support. Also in November the Assembly was notified that the Borough had entered into a short-term contract with Alaska-Northwest Development Services (Veto Chase) for an exploratory study of the project. That contract expired November 16, 1999. Enclosed is a copy of a report from Mr. Chase on the. results of his exploratory research. He has discussed our proposed concept with the U.S. Customs Service and with the U.S. Foreign Trade Zones Board and feels that our application will be well received. The Borough has entered into a Professional Services Agreement with Mr. Chase to pre.Dare and submit applications for a port of entry user fee and a foreign trade zone. The first step in this pl~cess is to' gather information regarding sites to be designated as part of the foreign trade zone. Enclosed is a letter from Mr. Chase setting out the required information and ~ome suggestions for possible sites. His letter includes a list of items/information needed to complete the FTZ application as well as a copy of the FTZ regulation setting out the requirements in more detail. I am looking, to you to provide this information for the FTZ site in Kenai. If you need information from the borough, such as how the site relates to flood zones, I will be happy to provide that information to you. Once you have all your data compiled, please send it to my office. I will combine it with information from the other cities and forward it to Mr. Chase for the application. If possible, I would like to receive your response by February 18a. Should you have questions or need assistance, please contact me. Very truly yours, Bonnie L. Golden Assistant to Mayor Bagley /bg Enclosures as stated ce: Veto Chase, Alaska-Northwest Development Service ALASKA-NORTHWEST DEVELOPMENT SERVICES 1105 Daley Place Edmoncis, WA 98020-2913 Telephone (425) 697-6003 Facsimile (425) 697-3883 November 22, 1999 Kenai Peninsula Borough 144 North Binkley Street Soldotna, AK 99669 Re' Report on the Customs Port of Entry and Foreign-Trade Zone Exploratory Study for the Kenai Peninsula Borough It has been determined that the proposed foreign-trade zone and accompanying Customs port of ent~ will be successful on the Kenai Peninsula. This is based on preliminary studies that looked at the feasibility of creating a FTZ and reviewing the short and long range costs associated with having a User Fee U.S. Customs Service Port of Entry. Among the tasks accomplished during this preliminary phase were: Analyzed each borough port and airport market area to determine if a FTZ would help their area. Initial research and previous long term association with the borough communities and potential users indicates that all major port and airport areas has prospective users- some with stronger potential than others. The demand in Nikiski where Tesoro and Natchiq, Inc. both want substantial zones and are willing to pay for them is both immediate and strong. The present business at the deepwater port and shipyard in Seward could easily require FTZ duty free and/or duty deferral use. Homer's present and expanding international port business and workboat repair and supply will support zone sites. And the airport at Kenai/Soldotna is a natural reliever airport for narrow body intemational flights and as a distribution and processing center for higher value commodities. Discussed in detail the preliminary plans to open a full service Customs office on the Kenai Peninsula with the Area Director, U.S. Customs Service in Anchorage. He indicated a willingness to work with us during the User Fee Airport request procedures. Met with the Acting Executive Secretary of the U.S. Foreign-Trade Zones Board of the U.S. Department of Commerce and his staff during the annual 'conference of the National Association of Foreign-Trade Zones in Pennsylvania in October to brief them about the KPB FTZ plans. They are now fully supportive. Made a special trip to Soldotna to brief the KPB leadership and staff on the foreign-trade zone application process, how to obtain a vital Customs port of entry, discussions with Natchiq, Inc. and other likely users, and the responsibilities and opportunities of having a FTZ. Assisted the KPB in discussions with Tesoro Petroleum Corp. and Natchiq, Inc./Alaska Petroleum Contractors about their immediate needs to establish a foreign-trade zone (or possibly a special purpose subzone for one user) at their facilities Nikiski. Based on the these preliminary studies and contacts we can expect the foreign- trade zone application process, including the feasibility exhibits, and the Customs user fee port of entry process to be accomplished in good order. Respectfully submitted o Vernon W. Chase KENAI MUNICIPAL AIRPOf "SERVING THE GREATER KENAI PENINSULA" 305 N. WILLOW ST. SUITE 200 KENAI, ALASKA 99611 TELEPHONE 907-283-7951 FAX 907-283-3737 March 1, 2000 Airport User Address City, State, Zip Dear Airport User: Enclosed you will fred a revised form for reporting landing fees at the Kenai Municipal Airport and a copy of Kenai Municipal Code (KMC) 14.05 giving the Airport authority to collect landing fees for all aircraft with a Certified Gross Take-Off Weight (CGTOW) of 4,000 pounds or more. If your company has an internal reporting form you prefer to use, please fax or mail a copy to my office for approval. Recently a review was conducted of airport fees and costs. Landing fees at the Kenai Municipal Airport are currently twenty-five cents per thousand pounds CGTOW. This fee has been in effect since 1991 (Res. 90-66). YEAR AIRFIELD M ~k O COSTS LANDING FEE PER LANDING FEES 1000 LBS CGTOW COLLECTED 1991 $299,213.00 .25 $82,409.00 1992 $361,100.00 .25 $76,766.00 1993 $382,994.00 .25 $71,074.00 1994 $396,375.00 . .25 $68,254.00. 1995 $496,827.00 .25 $74,845.00 1996 $576,082.00 .25 $65,754.00 1997 $546,563.00 .25 $64,449.00 1998 $780,920.00* .25 $74,939.00 1999 $665,928.00 .25 $57,707.00 *Includes $120,000.00 for runway crack sealing As you can see from the chart above, landing fee revenues have remained steady over the last ten years while airfield maintenance and operating costs have increased. These costs include FAA mandated ARFF response, snow removal, pavement maintenance, insurance and utilities. The numbers reflect the cost of airfield maintenance only; terminal and landside costs are tracked separately. During the upcoming budget meetings the Airport intends to request the City Council raise the landing fee from the current rate of .25 to .50 cents per thousand pounds (CGTOW). This increase will help the Airport comply with the requirement that it operate as an Enterprise Fund and bring our rate structure more in line with other airports in the State. Page 1 of 2 As the next chart below illustrates, this increase will leave Kenai with the lowest landing fee of the municipal and state owned Alaskan airports funded from an enterprise fund system (not receiving funding from the State General Fund). AIRPORT NAME Anchorage Juneau Ketchikan LANDING FEE PER THOUSAND POUNDS CGTOW .56 * · ANC & FAI fees are calculated based on a formula that insures the airport operating costs are covered. Ten year average: 68.2 .56 Ten year average: 68.2 1.3~sig~/1.70 non-sig** · *A signatory carrier is one that has signed an operating agreement with the airport Non-sig are generally transit or charter aircratL 1.62 Flat fee of $8.50 for 6,000#-12,500# Range equals 1.42 - .68 To view this proposal from the standpoint of the traveling public the following chart depicts the per passenger cost. The COST PER PASSENGER was calculated based on an 80% load factor. Note that this is a landing fee only; there is no charge to the departing aircraft therefore the passenger capability of the aircraft is doubled for this calculation. AIRCRAFT NUMBER OF C~TOW COST PER PASSENGER OF .25 TYPE SEATS / 800/0 INCREASE , , Twin Otter 18/14 12,500 .11 , Convair 580 50/40 54,600 .17 Dash 8 37/30 34,500 .14 Caravan 9 / 7 8,000 . .14 .. The above chart assumes that the entire cost of the increase would be borne by the passengers; it does not take into account mail and other cargo revenue. The landing fee increase, if approved, would not go into effect until the FY2001 budget year beginning July 1, 2000. I hope that you view this increase as an essential and fiscally responsible proposal. If you have any questions on this proposal, landing fees, forms or any other concems please call me at (907) 283-7951. Written comments should be addressed to Rebecca Cronkhite, Kenai Airport Manager at 305 N. Willow, Suite 220, Kenai, AK, 99611. Thank you for your time and consideration. Sincerely, Rebecca Cronkhite Airport Manager ,Enclosures Page 2 of 2 KENAi MUNICIPAL AIRPORT LANDING REPORT CITY OF KENAI 210 FIDALGO AVE., SUITE 200 KENAI, AK 99611-7794 COMPANY NAME MONTH YEAR ADDRESS AIRCRAFT MODEL & TAIL # CERTIFIED GROSS TAKE-OFF WEIGHT NUMBER OF LANDINGS TOTAL WEIGHT TOTALS LANDING FEE $ (TOTAL GROSS TAKE-OFF WEIGHT TO NEAREST 1,000 LBS X .25) (MINIMUM LANDING FEE IS $25.00 PER MONTH PER COMMERCIAl. OPERATOR) SALES TAX $ (5% OF LANDING FEE: MAXIMUM SALES TAX IS $25.00 PER MONTH, WHICH IS 5% OF SSO0.OOI TOTAL FEES AND TAX I CERTIFY TO THE BEST OF MY KNOWLEDGE THAT THIS REPORT IS TRUE AND CORRECT AND THAT THE REQUIRED FEES ARE INCLUDED HEREWITH. SIGNED TITLE (DUE THE 15TM OF THE FOLLOWING MONTH) Revised 2/28/00 APPENDICES Chapter 14.05 LANDING FEES Sections: 14.05.010 14.05.020 General. Monthly reports. 14.05.010 General. (a) There shall be a landing fee of twenty-five (25) cents per thousand pounds of weight on aircraft with a certified gross take-off weight of 4,000 pounds or over, payable monthly. The landing fee shall be computed on the certified gross take-off weight of each aircraft. The minimum monthly landing fee is twenty-five dollars ($25.00) per commercial operator. (Res. 92-71, 93-42) (b) There is no landing fee for aircraft under 4,000 pounds certified gross take-off weight and no landing fee for float planes. (Res. 90-66, 93-42) 14.05.020 Monthly reports. AH commercial operators operating aircraft with a certified gross take-off weight of 4,000 pounds or over shall submit a report showing the total number of landings of different types of aircraft made on the Airport each month. This report shall be accompa- nied by the above landing fees for that month and must be received no later than the fifteenth (15th) day of the following month. This report and fee do not apply to float planes, landing for testing of aircraft, or training of personnel of aircraft operated by a rum serving the Kenai Municipal Airport by authority of the Civil Aeronautics Board or the Alaska Transportation Commission. In such instanc- es, there shall be no fee. (Res. 92-71, 93-42) ac~i ~-2~-~) APX-32 February 18, 2000 To: Airpor~ Manager 283-3737 From: Henry Knackstedt Per our last meeting, we discussed brain-storming some ideas for year 2000 goals. The following am some ideas we may want to discuss at our next meeting. GOALS 2000 Airport Beautification Paint compass rose Flower pots at terminal entrance (both street & ramp) Greeting sign on ramp side of terminal Airport logo Beautify short term parking area Gravel/Ski Stdp Install camping areas Install electdc gate Storage box/shed design criteria Marketing plan Organize a fly-in/pancake feed Electrical service Phone Provide porta-potty Float Plane Basin Storage box/shed design criteria Marketing plan Request the tower advise departure rules for noise abatement Install electric gates Terminal Building Select and install new carpet Select & install new chairs New displays Other Invite airport workers/leasers to AP Commission Meetings Ask Tower Personnel to give evening seminar on Airport Operations at FSS AGENDA KENAI CITY COUNCIL- REGULAR MEETING FEBRUARY 16, 2000 7:00 P.M. KENAI CITY COUNCIL CHAMBEI~ http://www, ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *Ail items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B:' SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: PUBMC HEARINGS Resolution No. 2000-5 -- Encouraging the Alaska Legislature to Support Fund/ng for the Magazine, Newspapers and More: Full Text Articles for Alaskans Online Resource Included in the State of Alaska FY 2001 Capital Budget. ITEM D: COMMISSION/COMMI~EE REPORTS , 2. 3. 4. 5. 6. 7. Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board c. Kenai Visitors & Convention Bureau Board d. Alaska Municipal League Report ITEM E: MINUTES le ITEM F: *Regular Meeting of February 2, 2000. CORRF~PONDENCE ITEM G: OLD BUSINESS -1- o_ ITEM H: ,, NEW BUSINESS Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 *Ordinance No. 1850-2000 -- Increasing Estimated Revenues and Appropriations by $164,065.52 in the General Fund to Pay Outstanding Taxes and Costs Due on Inlet Woods Subdivision. e *Ordinance No. 1851-2000 -- Increasing Estimated Revenues and Appropriations by $30,000 in the General Fund for the Multi-Purpose Facil/ty Ice Maintenance Contract. , *Ordinance No. 1852-2000 -- Amending KMC 24.15.010, Entitled "Regulations" and the Cemetery Regulations. 0 *Ordinance No. 1853-2000 -- Increasing Estimated Revenues and Appropriations by $44,934 in the Airport Land System Special Revenue Fund and the Airport Fire Station Capital Project Fund for EnEineering. Approval-- Kenai Golf Course/Requested Rate Increase. Approval -- Special Use Permit/Bill Joyce, Arctech Services, Inc. -- Harvesting Spruce Beetle Killed/Infested Trees. ~7 ~. _-~ 9. Discussion -- Historic District Board /~10 . Discussion -- Potential Partner~§ with Boys & Girls Club/Development of New Facility. ITEM I: ADMINISTRATION REPORTS 1. Mayor 2. City Manager 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Managers 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes) 2. Council 'EXECUTIVE SESSION- None Scheduled ITEM K: ,, ADJOURNMENT AGENDA KEN~ CITY COUNCIL- REGULAR MEET~G MARCH 1, 2000 7:00 P.M. KENAI CITY COUNCIL CHAMBERS http: [/www. ci.kenm_'._ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its nonn~ sequence on the agenda as part of the General Orders. ITEM B: ITEM C: le 0 e 8CItEDULED IqJBLIC CO__MM~NTS (10 minutes} PUBLIC HEARINGS Ordinance No. 1850-2000 -- Increasing Estimated Revenues and Appropriations by $164,065.52 in the General Fund to Pay Outstanding- Taxes and Costs Due on Inlet Woods Subdivision. Ordinance No. 1851-2000 -- Increasing Estimated Revenues and Appropriations by $30,000 in the General Fund for the Multi-Purpose Facility Ice Maintenance Contract. Ordinance No. 1852-2000 -- Amending KMC 24.15.010, Entitled "Regulations" and the Cemetery Regulations. Ordinance No. 1853-11000 -- Increaains Estimated Revenues and Appropriations by $44,934 in the Airport Land System Special Revenue Fund and the Airport Fire Station Capital Project Fund for Engine~g. Resolution No. 2000-6 -- Requesting FY 01 Safe communities Funding From the Department of Community and Economic Development. R~solution No. 2000-7 -- Amending Cash Barner Architects' Design Architectural & Engineering Services Contract for the Airport Fire Station and Warm Storage Facility. -1- , 2. 3. 4. 5. 6. 7. COMMISSION! COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning/h Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Historic District Board c. Kenai Visitors & Convention Bureau Board d. Alaska Mumcipal League Report. ITEM E: . ITEM F: MINUTES *Regular Meeting of February 16, 2000. CORRF~PONDENCE ITEM G: OLD BUSINESS ITEM H: e . ITEM h Xe NEW BUSINESS Bills to be Paid, Bills to be Rat/fled Purchase Orders Exceeding $2,500 Approval-- Assignment of Leases and Assignment of Leases for Security Purposes/Lot lA, Block 2, General Aviation Apron and Lot 3, Block 1, General Aviation Apron -- Lofstedts to SOAR International Ministries, hlc. Approval -- Kenai Municipal Airport Terminal Bar Lease Agreement -- Jody Donaghe, Corey, Inc. d/b/a Upper Deck. Discussion -- Setting of Board of Adjustment Hearing/Appe~ of Planning & Zoning Commission Approval of Encroachment Permit PZ00- 02 for 1110 Channel Way (I.~t 5, Block 5, Inlet Woods Subdivision), Kenai, Alaska-- Appeal Filed by City of Kenai Through City Manager Richard A. Ross, Appealing the Side Lot Encroachment Only. ADMINISTRATION REPORTS Mayor City Manager -2- 3. Attorney 4. City Clerk 5. Finance Director 6. Public Works Managers 7. Airport Manager ITEM J: DISCUSSION 1. Citizens (five minutes} 2. Council EXECUTIVE SF.~SION- Annual Evaluations of City Manager, City Attorney and City Clerk. ITEM K: ADJOURNMENT -3- Other Services Available: 40 Paved & Lighted Private Tie downs 20 Itinerant Tie downs 17 Gravel or Ski Tie downs AUTOMATED FUEL SYSTEM Now available to Float Planes accepting: FOR MORE INFORMATION CALL THE AIRPORT MANAGER'S OFFICE 283-7951 AIRPORT COMMISSION Meets Second Thursday- 7:00 p.m. Kenai Council Chambers Commissioner Name and Home Business Term Address Phone Phone Email Address Seat Ends Ronald H. Holloway 262-1407 262-7491 At Large 2001 330 Columbine, B-7 Soldotna, AK 99669 James L. Bielefeld 260-3148 283-4124 bielefeld~,ptialaska.net FBO 2001 P.O. Box 46 Kenai~ AK 99611 *Henry H. Knackstedt 283-2853 262-4624 hknackstedt~_,hotmail.com CAP 2001 1602 Barabara Drive Kenai, AK 99611 Robert C. Favretto 283-5975 283-3949 At-Large 2002 1531 Toyon Way Kenai, AK 99611 **Dan Van Zee 262-1588 283-7291 dar~_~hertzcars.com Lessee 2002 325 Airport Way Kenai, AK 99611 Douglas K. Haralson 283-4623 283-3735(p) haralson~;alaska.net FAA 2003 P.O. Box 2881 283-439 l(f) or Kenai, AK 99611 haralsor~ci.net Christopher Copple 283-5809 776-8121, bim~ame~.gci.net At-Large 2003 1101 Inlet Woods Dr. ext. 3007 Kenai, AK 99611 Councilwoman Linda swarner 283-4366 283-9479 lswamer~,hotmail.com City 298 Rogers Road Council Kenai, AK 99611 Liaison City Clerk Carol L. Freas 283-4936 283-8231 cfreas(~_,ci.kenai.ak.us Recordin5 Secretar~ *Commission Chair **Commissioner Vice-Chair (2/15/2 DOUGLAS K. HARALSON P.O. Box 2881 Kenai, AK 99611-2881 907.283.4623 January 20, 2000 Kenai Airport Commission Goals and Objectives Brainstorming Working Notes: 1. Review and propose updates to municipal code and airport regulations as necessary. 2. Update Master Plan 3. Review all airport leases for self-education. 4. Airport manager to provide briefing of overall operations (ops, terminal, leaseholders, concessionaires, etc.) "State of the Airport" 5. Review FARs pertaining to airport operations and development 6. Review State regulations for airports 7. Contact city mayor and councilmen reference goals and objectives 8. Generate involvement from more citizens 9. T-Hangar construction 10. Develop marketing plan for private as well as small and large commercial operators F . FEBRUARY 2000 7,815 T~NSNOR:I'HERN ...... ~ AVIATION - 100 1.28% 98.72% Month Jan Feb Mar ' Apr May Jun Jul Aug Sep Oct Nov Dec Totals 2000 Monthly Enplanements ERA ~ TRANSNORTHERN Monthly Totals 5 Year Average 7,472 387 7,859 8,480 7,715 100 7,815 7,790 0 0 0 9,048 0 0 0 8,039 0 0 0 8,829 0 0 0 10,552 0 0 0 13,673 0 0 0 12,096 0 0 0 9,709 0 0 0 9,628 0 0 0 9,492 0 0 0 ..~ 8,771 ..... '1'5,187 ......... 487 ............ 1'5,674 ............. 116,107 I I IYute starts service July 15th, 1999, ended service December 8th, i ...... '___LJ'~"_"__'_JLJJ[_ Iii'II] .............. III1' ' _ III III III _ J IIII IIII'Hlll ~ i Transn~orthernAvi, ation st~arted service December 11th, 1999.1 __J__~ .................................. L. . _ I I I I I