Loading...
HomeMy WebLinkAbout2003-01-09 Airport Commission Summary KENAI AIRPORT COMMISSION JANUARY 9, 2003 KENAI CITY COUNCIL CHAMBERS 7:00 P.M. AGENDA ITEM 1' CALL TO ORDER AND ROLL CALL ITEM 2: ELECTION OF OFFICERS ITEM 3: AGENDA APPROVAL ITEM 4: APPROVAL OF MINUTES -- December 12, 2002 ITEM 5: PERSONS SCHEDULED TO BE HEARD ITEM 6: OLD BUSINESS ao Discussion -- Terminal Vehicle Parking Lot Renovation Discussion-- Off-Airport Car Rentals ITEM 7' NEW BUSINESS ITEM 8: REPORT ao Commission Chair Airport Manager City Council Liaison ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM 11' INFORMATION ITEMS ao Kenai City Council Meeting Action Agenda for December 18, 2002. ITEM 12: ADJOURNMENT KENAI AIRPORT COMMISSION JANUARY 9, 2003 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. Members Present' Holloway, Bielefeld, Knackstedt, Van Zee, Watkins Members Absent' Kleidon, Haralson Others Present: Councilwoman Jackman, Airport Director Cronkhite, Airport Assistant Bondurant, Earl Hicks ITEM 2: ELECTION OF OFFICERS MOTION: Commissioner Bielefeld MOVED the officers remain status quo for the Airport Commission and Commissioner Holloway SECONDED the motion. There were no objections. SO ORDERED. ITEM 3: AGENDA APPROVAL MOTION: Commissioner Holloway MOVED to approve the agenda. With no additions and/or corrections, the agenda was approved as presented. ITEM 4: APPROVAL OF MINUTES -- December 12, 2002 MOTION: Commissioner Holloway MOVED to approve the minutes of December 12, 2002 and Commissioner Van Zee SECONDED the motion. There were no objections. SO ORDERED. ITEM 5: PERSONS SCHEDULED TO BE HEARD -- None ITEM 6: OLD BUSINESS 6-a. Discussion -- Terminal Vehicle Parking Lot Renovation Director Cronkhite drew attention to the proposed airport parking plan included in the meeting packet and handed out a copy of a memorandum she provided ERA's Station Manager, Judy Erickson, regarding recommended parking spaces for terminal employees. Cronkhite requested Ms. Erickson be allowed to speak on behalf of the ERA employees. Judy Erickson, Station Manager, ERA Aviation -- Erickson expressed concern about the terminal employee parking being so far away from the terminal building. Erickson cited their major concern was safety and security as her employees would have to walk to and from their vehicles early in the morning and late at night. Erickson added, she and her staff do not understand the purpose for the change and feel that ERA is being treated unfairly. After a very lengthy discussion regarding security and safety issues, the number of spaces required by ERA and other options within the new plan for terminal employee parking, Erickson was assured the Airport Commission and staff will work with ERA on a parking plan that would be satisfactory to all concerned. It was noted several times the plan was a draft and the proposed change was to focus on customer service and not in any way intended to inconvenience ERA and its employees. Cronkhite reported a meeting is scheduled with Guardian Security to discuss increased security activity at the airport. Commissioner Knackstedt requested cost information for the new plan. Cronkhite stated the intention is to have the work done in phases and with the basic configuration, the phases could be divided. Cronkhite added, FAA gave approval for sidewalks and handicapped areas. Cronkhite continued, the consultant will prepare phasing and cost information and the overall plan will be forwarded to City Council. Discussion-- Off-Airport Car Rentals Knackstedt drew attention to the proposed ordinance in the meeting packet as well as the memo from the City Attorney for off-airport rental car fees and taxes. Knackstedt stated collected fees would go to the Airport Terminal Fund and collected taxes would go directly to the City. Cronkhite noted, the City Council requested this item be sent back to the Airport Commission for further discussion. She added, it was her intent to send a letter to all off-airport car rental companies but that did not happen, however, there were some representatives in the audience who wished to speak to the issue. Knackstedt requested Commissioner Van Zee (Hertz Car Rental) abstain from discussion and voting due to the obvious conflict of interest. Commissioner Van Zee agreed to abstain but noted that if necessary, he would speak as the representative from Hertz. The meeting was opened to public comment. Duane Bannock~ Great Alaska Car Company, 10288 Kenai Spur Highway, Kenai, Alaska. To begin, Bannock provided the City's rent and fee figures for car rental operators at the airport. He noted, the information was obtained from the City's finance director. Bannock stated, the Great Alaska Car Company is greatly opposed to AIRPORT COMMISSON MEETING JANUARY 9, 2003 PAGE 2 Item I of the City Attorney's memo, adding he has listened to the Airport Commission meeting tapes and read the minutes regarding this subject and he doesn't think this is about revenue but rather, about fairness. Bannock pointed out the airport has a free parking lot so this couldn't happen. Bannock asked (1) why the Great Alaska Car Company should be required to pay the ten percent fee when his company doesn't have a booth in the terminal that includes heat, lights, security, parking spaces, signs and a desk; (2) what off-airport car rental places do that would raise fees at the airport; (3) if off-airport car rental companies are required to pay the ten percent feem then why wouldn't other businesses be asked to do the same (including taxis, buses, guide operations, bed and breakfasts, motels, retailers, etc.). Bannock continued by asking what Natron Air pays and Cronkhite stated, aircraft under 6,000 lbs. are not required to pay a fee. Bannock stated he didn't see where there should be a difference between airplanes and car rentals. A very lengthy discussion ensued where the following topics were discussed: · Bannock stated the Great Alaska Car Company hasn't taken anything away from other businesses as they get their business from several other sources such as the Internet and telephone calls. · Knackstedt stated the City has the legal right to charge the off- airport car rental fee. · Councilwoman Jackman noted the City Council has charged the Airport Commission to develop new revenue ideas for the airport and this is one avenue being considered. Jackman added, the City could charge this fee. · Bannock stated the City's revenue figures from fees would not change if they only had three operators at the airport and thought the City should banish their archaic method of doing business and let as many operators in the terminal as they can. Bannock added, if the Great Alaska Car Company moved into the airport, those revenue figures would go way up. · Bannock stated he thought, rather than go after the off-airport car rental companies, the City should get those fees from parking at the airport. Cronkhite stated, the pay parking at the airport was set aside for now due to the decrease in air traffic since 9-11 and if it were implemented, the' airport would potentially lose more customers to the road system. Pay parking was discussed regarding proposed rates for the Kenai airport. Dan Van Zee stepped down from the dais to speak to the issue as the Hertz Rental Car representative. Van Zee stated the discussion to this point was utter nonsense as the airport concession fee of percent was recoverable per the courts. Van Zee added, this fee was not ambiguous and clearly noted on the rental agreements; the customers know they are being charged the airport concession fee of ten percent. Van Zee explained the reason why it was good to break that fee out and stated it is all up front AIRPORT COMMISSON MEETING JANUARY 9, 2003 PAGE 3 and there is no customer deception. Van Zee added, the City is looking at a fee for other businesses; the off-airport car rental companies just happened to be at the top of the list. BREAK TAKEN: 9:20 P.M. BACK TO ORDER: 9:35 P.M. Knackstedt reminded the Commission they were tasked to review the draft ordinance and noted the fee could be anything. Knackstedt added, consideration should be given to a rate to charge other rental companies from Soldotna or other areas. Van Zee stated concern with the last sentence of Item (a) of the ordinance, which addresses leaving a vehicle at the airport to be picked up by the customer. Van Zee stated, he felt if this sentence is left in, it would gO against his current lease agreement. Knackstedt stated the City Attorney indicated it would not be in conflict with the current lease agreements. BannOck stated, if he were there as a councilman he would advise the Commission that one thing they can do is vote "no" because it us a bad idea or vote "no" based on two arguments: (1) it is not fundamentally unfair since an on-airport rental company can have the fee recovered from the customer and (2) to single out only the car rental companies for the fee, other businesses should be charged as well. Bannock asked the Commission to vote no on the issue. Knackstedt asked if all businesses were to be charged a fee, how would it be enforced or collected. Cronkhite stated, industry standard is to do spot checks as most operate on the honor system and if there is an obvious discrepancy, it is handled either by the finance or legal department. Bielefeld stated he would not be in favor of this ordinance as he felt any type of user fee is discouraging to most users. Watkins stated, since the ten percent fee is already in place for on-airport car rental companies, perhaps the Commission should consider a reduced fee for off-airport companies, i.e., seven percent. MOTION: Commissioner Watkins MOVED to send the ordinance back to Council and changing the ten percent fee for off-airport car rental companies to seven percent. Commissioner Holloway SECONDED the motion. VOTE: Hollowa¥ Yes Bielefeld No Kleidon Absent Van Zee Abstain Haralson Absent Watkins Yes Knackstedt Yes AIRPORT COMMISSON MEETING JANUARY 9, 2003 PAGE 4 MOTION FAILED. Since the motion failed, discussion took place on what options the Commission had. Bannock told the Commission, Councilwoman Jackman could go back to the City Council to report the motion failed with a 3 yes, 1 no vote due to lack of quorum. Councilwoman Jackman told the Commission they could also call for reconsideration and to deal with it when there was a full quorum. The Commission decided to have Councilwoman Jackman report the outcome to Council at its next meeting. ITEM 7: NEW BUSINESS-- None ITEM 8: REPORT 8-a. Commission Chair -- Knackstedt stated he thought the proposed ordinance for fiat tax on private aircraft and the airport survey would be on this agenda and asked if they could be added to the next meeting agenda. Cronkhite apologized for the oversight and assured the Commission the two items would be on the agenda for the next meeting. 8-b. Airport Manager -- Cronkhite also apologized to the ERA representative who attended the meeting to discuss the survey and reiterated, it would be on the next meeting agenda. Cronkhite reported the following: TSA security personnel are onsite and are checking baggage that is checked through to other airlines. Paul Landis with ERA is on the phone daily to Washington, DC to see about x-ray equipment. ERA and airport city personnel are working well with TSA. · The Christmas lights will be taken down this coming week. · Commissioner Kleidon has missed several meetings and it should be brought to the attention of Mayor Williams. Councilwoman Jackman will bring it to his attention at the next council meeting. City Council Liaison -- No report. ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS Commissioner Watkins asked about the appraised values of the lots in Soldotna versus Kenai. Cronkhite stated that she was on leave and did not get this information in time for this meeting; she would contact the Borough regarding land rates and will report at the next meeting. ITEM 10: ITEM 11: PERSONS NOT SCHEDULED TO BE HEARD - None INFORMATION' ITEMS AIRPORT COMMISSON MEETING JANUARY 9, 2003 PAGE 5 11-a. Kenai City Council Meeting Action Agenda for December 18, 2002. ITEM 12: ADJOURNMENT The meeting adjourned at 10'10 p.m. Minutes recorded and transcribed by: arbara Roper, Contract Seat'etary AIRPORT COMMISSON MEETING JANUARY 9, 2003 PAGE 6