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Home My WebLink About2001-11-08 Airport Commission Summary KENAI AIRPORT COMMISSION NOVEMBER '8, 2001 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 -- October 11,2001 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5' OLD BUSINESS ITEM 6- ao NEW BUSINESS Discussion -- Attracting New Business and Improving Services to Existing Businesses at the Kenai Airport. ITEM 7: REPORTS ao Commission Chair Airport Manager City Council Liaison ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10- INFORMATION ITEMS a, Kenai City Council Meeting Action Agendas for October 3 and 17, 2001. ITEM 11' ADJOURNMENT KENAI AIRPORT COMMISSION NOVEMBER 8, 2001 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. CHAIRMAN HENRY KNACKSTEDT, PRESIDING MINUTES ITEM 1' CALL TO ORDER AND ROLL CALL Chairman Knackstedt called the meeting to order at 7'08 p.m. confirmed as follows' Roll was taken and Present: Absent' Others Present' Staff Present: Public' Knackstedt, Haralson, Kleidon, Elson, Bielefeld, Van Zee Holloway Mayor Williams, Councilman Moore, Councilwoman Swarner, Councilman Bookey, Councilwoman Porter, Councilwoman Jackman, Councilman Bannock (arrived at 7:40 p.m.) Airport Manager Cronkhite, Finance Director Semmens, City Manager Snow, Department Assistant Harris Larry Porter, Mark Carr, Dr. Jim Zirul, Marcus Garner and Jay Barrett ITEM 2: AGENDA APPROVAL MOTION: Commissioner Haralson MOVED to approve the agenda as presented. Commissioner Kleidon SECONDED the motion. There were no objections. SO ORDERED. ITEM 3' APPROVAL OF MINUTES -- October 11,2001 Commissioner Haralson requested a change in the minutes of October 11,2001 to read' Item 5 (John Bartels)" .... as a result of low tie-down tenants." There were no other changes or amendments to the minutes and they were approved as amended. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None ITEM 5: OLD BUSINESS-- None ITEM 6' NEW BUSINESS Discussion -- Attracting New Business and Improving Services to Existing Businesses at the Kenai Airport. Mayor Williams provided the group with an overall objective to the meeting, adding that the attraction of new businesses and the improvement of existing services at the Kenai Airport is a larger issue than just taxation. After a brief introduction of those present, Williams asked the group to address any concerns and comments regarding the airport. The following concerns were addressed in an open-forum manner: (Items have been grouped and were not necessarily discussed in the following order). · Fuel availability, fuel tank regulations, bulk fuel options, fuel costs; · Runway status and extension; Taxation/Exemption, Tie down fees; · Airport facilities: Hangar options, tower issues, availability of mechanical services; and, Float Plane Basin Slip Locations Fueling: The Float Plane Basin currently has a credit-card system for purchasing fuel that is bought by the city. Due to the lack of vendor interest, the system was purchased by the city. Additionally, it is maintained by the city with all generated revenue collected by the city. The city's price for fuel is set by a competitor's price to ensure fair rates. Commissioner Van Zee commented this system was originally put in place to try to attract tenants and make the area more desirable. Councilwoman Porter, along with Larry Porter (Kenai), stated at one point they had their own fuel tanks at the basin, but were forced to remove' them. Porter stated, despite taking many measures to ensure safety, the reasons for requiring the removal included the potential for vandalism and tank failure. Commissioner Elson stated aboveground fuel tanks are not allowed within city limits according to the State Fire Code, though mobile (truck-mounted) fuel tanks are allowed, providing the trucks are indeed mobile. The group also spoke regarding bulk fuel pre-purchasing options (bulk fuel would require mobile tanks). Direction' Request information from bulk fuel providers for policy on special rates for bulk fuel users (more than 1,500 gallons a month). Runway Status and Extension' The Float Plane Basin runway is currently 3,500 feet. L. Porter, Carr, and Dr. Zirul all stated that taking off from the Float Plane Basin with a fully loaded plane is not possible due to safety restrictions. All agreed an extension of 500 feet would help alleviate take-off hazards. The group discussed runway extension possibilities and Airport Manager Cronkhite explained to the group the main runway is on the Airport Capital Improvement Project list for extension in 2004. Cronkhite stated she hoped to designate the north end of the Float Plane Basin as a materials site and later convert the gravel pit into a runway extension. But, Cronkhite stated, because of recent FAA funding diversions, it was not known when this will be done. Direction: Target a specific time period for the runway extension that will enable the Float Plane Basin runway extension by means of materials site designation. AIRPORT COMMISSION MEETING NOVEMBER 8, 2001 PAGE 2 Taxation/Exemption, Tie-down Fees: The Airport Commission had passed a motion at their last meetin§ requestin§ Council to amend the Kenai city tax code to both reflect a $100,000 exemption on aircraft and to amend the Kenai Peninsula Borough {KPB) aircraft tax code to a fiat tax. Finance Director Semmens provided the §roup with the economic details of each request. Additionally, the followin§ ~roup topics were addressed: · The tie-down rate at the Kenai Airport is the same as Soldotna. · A complete private property exemption could cost the city $175,000. · If the city adopted a flat tax on aircraft, it would be only for aircraft; boats would not be included. · Exemptions or flat tax rates need to be determined on a rational basis as such exemptions could create requests for many more. · The city will lose $30,000 on tax revenue (as 57 accounts are currently considered). It is not certain the city will make up this revenue with additional tenants paying at an exemption or fiat tax rate. · Lost tenants, some of who are registered and paying taxes in other boroughs, may be lured back if comparable rates are given. · Councilman Bannock provided the group with a brief overview and background on the taxation issue beginning with boat owners. Bannock also stated he felt there were inequities in the tax exemption theory. · If a flat tax is adopted, it should include motorhomes and be based on gross weight. · Exemptions should be based from (not up to) $100,000. The gain of additional tenants will create a trickle down effect. Revenue could be gained by additional services: sales tax revenue, mechanical services, etc. Direction' Determine the cost of collecting the currently taxed aircraft vs. potential revenue generated by additional tenants paying a flat-tax or exempted tax. Airport Facilities: The group discussed and commented on the following topics: · Kenai Airport currently has only one mechanical service available. Some aircraft owners dislike the tower. Several group participants theorized the tower contributed to an aircraft owner's decision to tie-down elsewhere. · A hangar could attract more users. The group discussed several aspects of building a T-hangar including: -- Hangars are very expensive to build. The T-hangar idea has been previously researched, proposed, and declined due to lack of pavement and general enthusiasm in the previous plan. -- Haralson stated that if a hangar was built, many industries could profit, i.e. insurance, mechanics, airport growth, etc. -- Tax incentives and subscription-type investment could help the private industry build a hangar. AIRPORT COMMISSION MEETING NOVEMBER 8,2001 PAGE 3 Float Plane Basin Slip Locations: L. Porter explained to the group commercial operations slip locations are currently at the end of the Basin and create a wake problem, as it is necessary to taxi to the end to pick up passengers. This wake creates a 2-3 foot wave and can cause erosion to planes. To alleviate this problem, the group suggested re-designating slip locations to better serve commercial users. Cronkhite mentioned several terrain problems involved with re-designation and added, drawings would be available at the next Airport Commission meeting so the subject can be explored further. Direction' Determine logistics of re-designating commercial slip locations at the Float Plane Basin. Public Comments- Mark Carr (Alaska West Air}~Carr stated he was starting a single pilot operation from the float plane basin. His concerns included: · Available utilities' Carr stated the Kenai Airport has very limited mechanical services available. · Fuel availability at floatplane basin area-- Carr stated he would like his own fueling set-up at the basin. · Runway extensions. Carr stated it was not possible to take-off with a fully loaded plane. He stated an extension of 500 feet would help create a larger safety margin. Carr compared the length of the Float Plane Basin (3,500 feet) to that of Island Lake which is one mile in length. Dr. Jim Zirul {Kenai)--Zirul's concerns included the following: · The airport almost lost his business; no specifics were stated. · The tax issue is not the only reason why people have left and would not be the only reason to bring people back. Zirul stated an exemption or flat-tax could be made up by additional airport tenants. · Addressing the fuel issue, he requested more information regarding mobile tanks and bulk fuel. Larry Porter {Kenai)--Porter's concerns included the following: · The current location of commercial slips should be re-designated to alleviate wake related aircraft erosion created by taxiing to the far end of the basin. Addressing the fuel issue, he stated he had a personal fueling system at the Float Plane Basin, however despite taking many measures to ensure safety, Porter was required to dismantle his fuel tank. Item 6 concluded at approximately 9'15 p.m. Chairman Knackstedt requested a 10- minute break to allow the public and council members to depart. AIRPORT COMMISSION MEETING NOVEMBER 8,2001 PAGE 4 ITEM 7: REPORTS Commission Chair-- No report Airport ManaEer-- No report City Council Liaison -- No report ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS -- None ITEM 9' PERSONS NOT SCHEDULED TO BE HEARD -- None ITEM 10' INFORMATION ITEMS 10-a. Kenai City Council Meeting Action Agendas for October 3 and 17, 2001. ITEM 11' ADJOURNMENT MOTION: Commissioner Kleidon MOVED to adjourn and Commissioner Van Zee SECONDED the motion. There were no objections. SO ORDERED. The meeting adjourned at approximately 9'25 p.m. Minutes transcribed and prepared by: Sharon Harris, Department Assistant AIRPORT COMMISSION MEETING NOVEMBER 8,2001 PAGE 5