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HomeMy WebLinkAbout2002-09-12 Airport Commission Summary KENAI AIRPORT COMMISSION SEPTEMBER 18, 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 -- August 8, 2002 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5' OLD BUSINESS Discussion -- Airport Passenger Leakage and Fare Study ITEM 6' NEW BUSINESS ao Discussion -- Draft Land Use Plan/City of Kenai Comprehensive Plan ITEM 7: REPORTS a, 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, 4, 2002. b. Kenai City Council Meeting Action Agendas for August 21 and September 8/02 Monthly Enplanements and Float Plane Basin Activity ITEM 11' ADJOURNMENT KENAI AIRPORT COMMISSION SEPTEMBER 12~ 2002 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. VICE CHAIR DAN VAN ZEE~ PRESIDING MINUTES ITEM 1: CALL TO ORDER AND ROLL CALL Vice Chairman Van Zee called the meeting to order at 7'00 p.m. confirmed as follows' Roll was taken and Present: Holloway, Bielefeld, Van Zee, Haralson Absent: Knackstedt, Kleidon, Watkins Others Present: Mayor John Mayor Williams, Councilwoman Porter, Councilwoman Swarner {in at 7'35 p.m.) City Attorney Graves, Councilwoman Jackman, Airport Manager Cronkhite, and Contract Secretary Roper Public: Charisse Millett (ERA Aviation) ITEM 2: AGENDA APPROVAL Commissioner Bielefeld MOVED to approve the agenda and asked for UNANIMOUS CONSENT. Commissioner Holloway SECONDED the motion. SO ORDERED. ITEM 3' APPROVAL OF MINUTES -- August 8, .2002 Airport Manager Cronkhite requested a correction to Item 7-b, Airport Manager's Report, stating it should note the City Council did not take the money from the airport advertising budget but rather appropriated additional funds for the advertisement. Commissioner Holloway MOVED to approve the minutes of August 8, 2002 as corrected and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None ITEM 5: OLD BUSINESS Discussion -- Airport Passenger Leakage and Fare Study Cronkhite reported Chairman Knackstedt invited Councilwoman Porter to the meeting to answer any questions regarding her motion to table the resolution for the airport study. Councilwoman Pat Porter-- Porter's comments included the following: · Her tabling the issue had nothing to do with whether or not she agreed or disagreed with the study; rather she felt ERA should have been contacted for information. · She thought the intent of the study needed to be better explained to Paul Landis (ERA Senior Vice-President) and given an opportunity to comment on the study, provide information and/or answer questions the Commission might have. · Tabling the resolution would provide the necessary time to diffuse a situation she felt was becoming uncomfortable and out of hand. A work session was not scheduled at that time because some organization is required between Council, the Airport Commission and ERA, however it would be set at the next council meeting. · The direction from Council was to get some input regarding marketing the airport and not necessarily going out to find out why ticket prices are so high. · She did make a negative comment about using an outside firm, as she believes in using local and/or Alaskan companies. · Though requested the tabling, it didn't mean she was going to vote against the study. Commissioner Van Zee stated he was in favor of letting the market take care of itself, however, before it can be determined whether that is being done, he would need to know what the market is and the study could provide that information. He added, the Commission was moving forward at the direction from Council and now feels some clarification is required with regard to whether or not to do the study. Airport Manager Cronkhite noted the following: · The main idea behind the proposal was to educate everyone as to what all the options are when marketing the airport and attracting another air carrier was just a part of the package. · There were many questions raised about the high airfares and why people chose to drive rather than fly and the data from the study could answer those types of questions. · It is possible the result of the study could say it isn't a good idea to bring in another carrier and the City should focus on attracting other types of businesses at the airport. · The proposed study was discussed very openly with the ERA station manager on many occasions. Van Zee stated, when he reviewed the study the last thing he thought of was ERA's pricing as he focused on other business development at the airport. Van Zee provided some other scenarios such as direct flights from Kenai to Seattle and added, there were a lot of unknowns and without the basic information of what the market is, it would be difficult to go forward. Van Zee continued, he was disappointed the Commission wasn't given the opportunity to discuss the merits of the study and the validity of AIRPORT COMMISSION MEETING SEPTEMBER 12, 2002 PAGE 2 spending the money because it got sidetracked due to misinterpretation. He personally felt it is the responsibility of the Commission to attract new business to the airport whether it was a new carrier, a manufacturing firm, etc. and the study was an effort to do that. If ERA has something to add, Van Zee said, the Commission should look at it but still go forward with the study as the deadline for federal funding is March 2003, and it is important there be no further delays. Mayor John Mayor Williams -- Williams' comments included: · Expressed appreciation for the comments made regarding the study and thought many of them were justified. · He was attending this meeting as he thought Landis (ERA) would be present and to also let the Commission know he supports the decision to have the study done. · The Commission shouldn't look at the tabling of the resolution as a decision by Council to not go ahead with the study and added, Council tasked the Commission to market the airport and because of that Council should provide the tools to make it happen. The study was probably misnamed and the resolution miswritten to some extent and that is what probably raised the ire of ERA. The study was not to be a lift-ticket study, passenger study, or cost study but rather a study combining not only those elements, but a variety of others as well. The studies included in the proposal were wide and varied and after hearing the conversation tonight he thought perhaps the study wasn't patterned to go far enough as there might be other areas that should be included. · With the participation of ERA, they could benefit from information garnered from the study, however, the entire decision on the direction of the airport would not be based on information received from the only air carrier doing business in Kenai. · He wants to go ahead with the study and even increase it as he has had conversations with individuals in the community after the September 4 council meeting and in almost all of the conversations, the topic of concern was airfares. The airport does not belong to the State of Alaska, the federal government, Landis or anyone else; it belongs to the people of the City of Kenai and is one of the biggest economic enterprises in the town and a result, Williams said, it is the responsibility of the City of Kenai to see the airport function and function well. Commission meeting packets can be forwarded to ERA if requested and meeting agendas and minutes are posted on the city's website. Councilwoman Jackman noted her disappointment the resolution was tabled even though she encouraged its passage. She added, she didn't feel that one person or even one air carrier was a good reason to not go forward with the resolution. Commissioner Haralson noted the following: He wanted to go on record by stating the Commission is charged with AIRPORT COMMISSION MEETING SEPTEMBER 12, 2002 PAGE 3 marketing the airport and increasing revenues through two, i.e. passenger traffic (the focus of ERA and some others) other business revenue at the airport. · The problem he observed in marketing the airport is not knowing where it is and what it should be; the study could provide those answers. ERA should be encouraged to provide information, however, that information should come from other air carriers as well, especially those who have operated in this area. · The expertise for this type of study .is not available in Alaska. · Expressed his desire to have the joint work session scheduled as soon as possible. Commissioner Bielefeld stated the City is strongly in need of the study but also supports the businesses that are already here, specifically ERA. He added, he felt perhaps the study was presented in a manner that Landis felt he had to defend against and that Landis needed to be sold on the idea as well and encouraged the City to work with him. Cronkhite noted the following: She took exception to some of the comments expressed by Landis and reported she had a conversation with ERA's station manager and explained the potential benefit to ERA prior to the council meeting. The City and ERA have always had a good relationship. If ERA followed up on the study when she first mentioned it to the station manager many of Landis' questions would have been answered. · She supports a continued relationship with ERA and had supplied ERA's station manager with minutes of the last Commission meeting. Councilwoman Porter reminded the Commission there's an opportunity now to go forward and fix whatever needs to be fixed and to get the study going. She added, she sees what ERA does for the community, i.e. supporting the Oilers, purchasing ads in school yearbooks, etc., and encouraged the Commission to move forward. Charisse Millett (ERA)- Millett made the following comments: ERA has no opposition to the study if it is indeed a true marketing study though, discussing airfares and ticket prices is the responsibility of the private enterprise. ERA feels they can provide a direction in which the study could go. ERA loves the airport and thinks it is a fabulous facility or wouldn't be · · here. the airport. go. There are other areas besides fares that could guide the City in marketing ERA has been in Kenai for 19 years and has seen nine carriers come and Feels there has been miscommunication and ERA is more than willing to come to the table to discuss the study and to provide information that may be helpful, AIRPORT COMMISSION MEETING SEPTEMBER 12, 2002 PAGE 4 however, to invite competition and buy bulk tickets is not something ERA would be interested in doing. BREAK TAKEN: 8:20 P.M. Mayor Williams, City Attorney Graves, Councilwoman Porter and Charisse Millett left at 8:20 p.m. BACK TO ORDER: 8:30 P.M. ITEM 6: NEW BUSINESS Discussion-- Draft Land Use Plan/City of Kenai Comprehensive Plan Cronkhite explained this is the final draft of the Kenai Comprehensive Plan and when the decision to update the plan was made, she thought this would be a good opportunity to integrate the Airport Master Plan into the City's Comprehensive Plan. Cronkhite continued, there are some zoning issues with the noise overlay, the airport light industrial zone, etc., and leasing information that can be integrated into the two plans there is a nice, cohesive guide for the City to follow taking into consideration those items outlined in the Airport Master Plan. Cronkhite requested the Commission members to contact Marilyn Kebschull, the City Planner, with any suggested changes to the airport's portion but to do it in a very timely manner as this was the final draft. Cronkhite reported Chairman Knackstedt commented on page 7, line 12 and 15 which addresses the noise overlay zone and the noise zones were updated based on air traffic. She added, when property is purchased and it lies within the 60 DNL, they are notified they are near an airport and there will be airplane noise. Knackstedt's concern was whether or not the DNL figure used in the Comprehensive Plan had been updated. Cronkhite confirmed it had been. Other suggested additions were to include a line item as a reminder that expert review from the airport manager or the FAA concerning proposed uses is required. Cronkhite suggested that AP4 be changed as follows: The Planning and Zoning Commission will refer to the current Airport Master Plan document when reviewing airport properties for compatibility with the Comprehensive Plan. A task under AP4 should be added as follows: Planning and Zoning should include the Airport Commission in review of proposed uses for airport properties. AIRPORT COMMISSION MEETING SEPTEMBER 12, 2002 PAGE 5 Cronkhite again asked Commissioners to contact Kebschull if there are any other changes or additions. Discussion -- Airport Office Space Rental Cronkhite reported she had a request for office space rental at the airport from a current tenant. The area requested is behind one of the two vacant ticket counters. Cronkhite added, ERA is currently using the space as a break room and it would he moved to allow the office space. After discussion, it was agreed Cronkhite should take the issue council for approval but the new tenant should be advised if a new carrier comes in, they may have to move. ITEM 7: REPORTS 7-a. Commission Chair -- Van Zee reiterated the need for the study to go forward promptly. 7-b. Airport Manager-- Cronkhite reported the following: · The search continues for a replacement for the Operations Supervisor at the airport. Cronkhite reported not all applicants met the qualifications required so they will re-advertise with a new job description. The new requirements will focus on snow removal and supervisory skills. The City will train on regulations, etc. Cronkhite also noted the salary was low compared to other airports and she hopes the position will be filled by October 15, 2002. There is an airport emergency exercise planned for September 18th. This will not qualify as the tri-annual training required by FAA however the full-scale exercise will take place once the new gate system is installed. · She provided a report on four FAA grants for which they recently applied. 7-c. City Council Liaison -- Councilwoman Jackman provided a report on the August 21 and September 4 council meetings. ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS Commissioner Bielefeld asked if the fire trucks were now in the new facility and Cronkhite explained they would be moved over once the radio system is in place. Commissioner Holloway asked if the Commission meetings would be held in the new facility and Cronkhite explained the conference room would not accommodate the members and any visitors and recording equipment is not available. Cronkhite stated she would include the item on the next meeting agenda for discussion as she felt at least one meeting should be held there. ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD -- None AIRPORT COMMISSION MEETING SEPTEMBER 12, 2002 PAGE 6 ITEM 10: 10-a. 10-b. INFORMATION ITEMS Kenai City Council Meeting Action Agendas for August 21 and September 4, 2002. 8/02 Monthly Enplanements and Float Plane Basin Activity ITEM 11' ADJOURNMENT MOTION: Commissioner Holloway MOVED to adjourn and Commissioner Bielefeld SECONDED the motion. There were no objections. SO ORDERED. The meeting adjourned at 9'17 p.m. Minutes prepared and transcribed by: Barbara Roper, c~n~act Secretary AIRPORT COMMISSION MEETING SEPTEMBER 12, 2002 PAGE 7