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Home My WebLink About2002-10-10 Airport Commission Summary KENAI AIRPORT COMMISSION OCTOBER 10, 2002 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 -- September 12, 2002 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5' OLD BUSINESS a, Discussion-- Off-Airport Car Rentals Discussion-- Airplane Taxes (Dave Wartinbee) ITEM 6: NEW BUSINESS ao Discussion-- Commission Meeting Site 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, bo Kenai City Council Meeting Action Agendas for September 18 and October 2, 2002. 9/02 Kenai Municipal Airport Enplanement Report 9/02 Kenai Municipal Airport Float Plane Basin Activity Report ITEM 11' ADJOURNMENT KENAI AIRPORT COMMISSION OCTOBER 10, 2002 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 7'00 p.m. confirmed as follows: Roll was taken and Present: Knackstedt, Bielefeld, Kleidon, Van Zee, Holloway, Haralson, Watkins Others Present: Councilwoman Jackman, Airport Manager Cronkhite, Department Assistant Harris Public' Pat Porter ITEM 2: AGENDA APPROVAL MOTION: Commissioner Kleidon MOVED to approve the agenda as presented and Commissioner Holloway SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MINUTES -- September 12, 2002 MOTION: Commissioner Holloway MOVED to approve the minutes as presented and Commissioner Van Zee SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None ITEM 5: OLD BUSINESS 5-a. Discussion -- Off-Airport Car Rentals Airport Manager Cronkhite asked the Commissioners to review the enclosed information on state regulations regarding off-airport car rental agencies. Cronkhite stated the airport currently charges on-site car rental agencies ten percent (10%) of their gross income as an 'airport concession fee'; plus $1.65 per square foot of office rental space. This tax applies to passengers who have arrived on an airplane and walk-ins, alike. Cronkhite contacted the Spokane International Airport regarding off-airport car rental operators and was informed Spokane charges ten percent of the monthly gross revenues payable by the tenth of each month with an additional .50-cent fee accessed per trip to the airport. Commissioner Van Zee addressed the following: Informed the Commission that according to his contract with the City of Kenai, he is required to pay ten percent of his gross income on car rentals or risk being in violation. This, he stated, creates an unfair atmosphere as off-site agencies utilize the airport and its parking lot by using it for drop-off's and/or pick-up's; without paying the ten percent airport concessions fee. His lease allows four rental car agencies to conduct business at the airport. This, in essence, is being violated as the off-airport rental agencies are utilizing the airport. The Commissioners agreed a code revision could be in order to rectify this problem and requested the following: Recommend a draft ordinance/amendment to the code to begin taxing ten percent (10%) of the gross revenue from off-airport car rental operators. · Set a public hearing for Soldotna and Kenai area car rental businesses to review and discuss the proposed code change. l)i~¢u~ion -- Airplane Taxes (Dave Wartinbee) Cronkhite stated Wartinbee could not be in attendance due to a work conflict. She provided copies of the two letters submitted by Wartinbee who requested his comments be made a part of the meeting. The Commissioners read and reviewed the letters submitted and commented on the following: · Cronkhite stated she would provide Wartinbee with the information compiled by Finance Director Semmens and from the inquiry and poll taken at the request of the Commission several months ago. · The Commission discussed various differences in methods of taxation for boats, cars, airplanes and other personal property tax issues. Several Commissioners opined that if the tax is eliminated more business would be generated by overall business moving in; the result of this trickle down effect could eventually make up the loss of taxation revenues. Pat Porter- 310 Rogers Road: Porter briefly addressed the Commission and suggested they reaffirm an earlier motion to request looking into the notion of a flat tax and/or exemptions. KENAI AIRPORT COMMISSION OCTOBER 10, 2002 PAGE 2 Councilwoman Jackman informed the Commission of upcoming work sessions and urged all to attend and to reiterate the Commission's request for a flat tax and exemptions for aircraft. MOTION: Commissioner Haralson MOVED to recommend City Council review airport taxation to be in line with the current Borough method of exemption. Commissioner Holloway SECONDED the motion. There were no objections. SO ORDERED. MOTION: Commissioner Haralson MOVED to encourage City Council approach the Kenai Peninsula Borough to enact a Borough-wide fiat tax similar to Anchorage and the Mat- Su Borough. Commissioner Holloway SECONDED the motion. There were no objections. SO ORDERED. ITEM 6: NEW BUSINESS Discussion -- Commission Meeting Site Cronkhite informed the Commission of several problems involved in conducting a meeting at the new Airport Operations Facility including: acoustics, meeting space and public notification. Because the November meeting may involve a larger than usual public attendance, Cronkhite suggested having the December meeting at the new facility, if the Commission was so inclined. Commissioner Bielefeld stated he did not mind having one meeting at the new facility, but felt the best place for the Commission meetings is at City Hall. Councilwoman Jackman stated she and Council wanted the Commission to hold a meeting at the new facility at least once. The Commissioners agreed to hold the December meeting at the new facility; the meeting will also include a Christmas party. ITEM 7: REPORTS 7-a. Commission Chair- Knackstedt reported on the following: · Stated he recently returned from the Reno Air Races; he found it to be interesting and fun. · Encouraged all to attend the October 15, 2002 work session at 7:00 p.m. 7-b. Airport Manager-- Cronkhite reported on the following: · Earl Hicks was hired as the new Airport Operations Manager. added he is very qualified and she is very pleased to have him on board. Cronkhite KENAI AIRPORT COMMISSION OCTOBER 10, 2002 PAGE 3 · The airport had a visit from the FAA Compliance section which inspected areas involving persons with disabilities. Cronkhite noted the inspection went well. · The airport has received over $900,000.00 in grant funds to be used toward equipment purchases, runway improvements, security, etc. ?-c. City Council Liaison -- Councilwoman Jackman provided a brief recap of City Council action items. ITEM 8: COMMISSIONER COMMENTS AND ~UESTIONS Commissioner Holloway stated he would not be in attendance for the work session meetings. Commissioner Van Zee encouraged the Commissioners to not lose focus of the goals of the study; which is not about airfare. Van Zee stated the planned study is about the airport itself and its future. Commissioner Bielefeld stated ERA is grounding and selling their Conveyor aircrafts. Commissioner Haralson requested information regarding past Commission discussions and surveys, as well as other pertinent information, be put into a 'fact- book' prior to the October 15 work session with Council. Commissioner Watkins requested the grass and weeds near Granite Point be mowed prior to winter, as the grass in this area is shaggy and unsightly. ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD -- None ITEM 10: INFORMATION ITEMS 10-a. 10-b. 10-c. Kenai City Council Meeting Action Agendas for September 18 and October 2, 2002. 9/02 Kenai Municipal Airport Enplanement Report 9/02 Kenai Municipal Airport Float Plane Basin Activity Report ITEM 11' ADJOURNMENT The meeting adjourned at 8:45 p.m. Minutes prepared and transcribed by: Sharon M. Harris, Department Assistant KENAI AIRPORT COMMISSION OCTOBER 10, 2002 PAGE 4