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Home My WebLink About2003-02-13 Airport Commission Summary KENAI AIRPORT COMMISSION FEBRUARY 13, 2003 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 -- January 10, 2003 ITEM 4: PERSONS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS ao Discussion -- Airport Survey Discussion -- Flat Tax on Private aircraft Discussion -- Appraised Airport Land Values ITEM 6: NEW BUSINESS ITEM 7: REPORT 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 ao b, do Kenai City Council Meeting Action Agendas for January 15 and February 5, 2003. 12/02 and 1/03 Kenai Municipal Airport Monthly Enplanement Reports Public Service Announcement regarding Commission's discussion on proposed flat-tax ordinance. 1/20/03 Avis letter regarding proposed ordinance pertaining to off-airport car rental operations. ITEM 11: ADJOURNMENT KENAI AIRPORT COMMISSION FEBRUARY 13, 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 7:02 p.m. confirmed as follows: Roll was called and Members Present: Members Absent: Others Present: Knackstedt, Watkins, Haralson, Kleidon Holloway, Bielefeld, Van Zee Councilman Bookey, Airport Manager Cronkhite, Department Assistant Harris ITEM 2: AGENDA APPROVAL The agenda was unanimously approved as presented. ITEM 3: APPROVAL OF MINUTES -- January 10, 2003 The minutes were unanimously approved as written. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None ITEM 5: OLD BUSINESS $-a. Discussion -- Airport Survey Airport Manager Cronkhite provided a brief recap of the purpose and intent of the survey and stated Council has requested a more inclusive request for proposal, i.e. provide an itemized list of points for the marketing study. Cronkhite requested the Commission refer to the list of items previously compiled during the joint work session held on October 15, 2002. The Commission discussed whether or not a contractor is required to conduct an inventory of physical assets. Haralson stated he felt this aspect wouldn't need to be performed by a contractor, as part of a list already exists in the Master Plan. Cronkhite stated she feels a contractor could provide an unbiased outside view and could perhaps recognize items not already listed in the Master Plan. Additionally, she stated her understanding of compiling a list of assets should include more than buildings and look into other potential assets. The Master Plan doesn't address land development issues. The Commission and Cronkhite discussed overall land availability and whether or not land outside the fence is considered to be an asset. Councilman Bookey stated he feels all airport land, whether inside the fence or not, is an asset and should be considered. He further stated the marketing study should incorporate all airport-related lands and land that is developed; developed but vacant; developed and occupied; and, undeveloped as all are physical assets. Councilman Bannock concurred. Paul Landis, Senior Vice President, ERA Aviation -- Landis addressed the Commission and asked them if they felt familiar with the Airport Master Plan. Landis stated it seemed they had a hard time getting traction on the survey and he felt the purpose of the study is to help prepare the Master Plan. Landis su§§ested the Commission obtain Master Plans from airports of like size and §eo§raphy to better develop ideas. Additionally, Landis su§§ested hirin~ someone to update the Master Plan rather than spend countless hours and dollars on a consultant to prepare a marketing survey. Cronkhite responded to Landis's suggestions and comments by stating she would gladly obtain sample Master Plans for the Commission's review by contacting the Association of Small/Medium Airports. Additionally, Cronkhite stated the Master Plan is an FAA mandated document mostly deals with property only inside the fence. Cronkhite stated Kenai has a very unique situation due to owning so much marketable property that is beyond what the FAA requires to be noted in the Master Plan. Haralson asked if Council required information on developing a marketing plan for all of the airport areas, including land outside the fence, or just the airport itself. Bookey and Bannock stated it was their understanding to devise a development program to mesh both. Bookey suggested the Commission hold off reviewing criterion until after the February 20 work session regarding the fiscal situation, as there may be other Council requests or directions given. Chairman Knackstedt requested the Commission take time to prioritize the items on the list; but to also table this item until next month as the Council may provide additional direction. There were no objections. BREAK TAKEN: BACK TO ORDER: 7:48 P.M. 7:55 P.M. 5-b. Discussion -- Flat Tax on Private aircraft Shane Horan, KPB Assessors Office -- Horan addressed the Commission and explained how borou§h taxes are assessed and stated he is aware of taxation disparities between communities within the Kenai Peninsula Borough. Horan was asked what would happen if Kenai were to institute a fiat tax; he stated the Borough would need to make changes to their assessing system, which would take time. Horan suggested the Commission invite Borou§h Finance Director Sinz to help clarify tax KENAI AIRPORT COMMISSION FEBRUARY 13, 2003 PAGE 2 policy. From Horan's estimates, a flat tax would provide $3,300 in revenue compared to the current $5,800. These figures are based on 44 private aircraft. Bannock stated he sponsored the resolution which would amend KMC 7.05.010 to provide a flat tax on personal property to $75.00 as a way to promote discussions and perhaps stop rhetoric and misconceptions surrounding aircraft taxation issues. Bannock provided the following: · The key issue involving aircraft taxation is perception and fairness. · It is a myth that people leave the Kenai Airport due to taxes. · Owners of boats and other property will be asking for exemptions. Where do you draw the line? · The borough has created an inequitable standard. If a flat tax were instituted, the borough would simply increase another tax to make up the difference. Any savings would be an illusion. Kenai has lost business to the Matanuska-Susitna Borough dUe to a competition problem. The ordinance was sponsored to promote discussion and perhaps stop rhetoric and misconceptions regarding aircraft taxation. · The City of Kenai cannot afford to offer the tax exemption like the borough can. · The way to solve the problem is to get the borough t° rid itself of their exemption ordinance. Joe Harris~ Kenai -- Harris stated he is a boat owner and keeps one boat in Homer and one in Kenai and is in favor of a fiat tax. Harris explained, his boat in Homer is larger and worth more, but taxes there are lower. He added, he would most definitely be pushing for a fiat tax on boats in the event a fiat tax on aircraft is instituted. MOTION: Commissioner Kleidon MOVED to request the Airport Manager forward the draft ordinance for Council review and invite the Borough and City Finance Directors to the next meeting for further taxation clarification. Commissioner Watkins SECONDED the motion. AMENDMENT TO MOTION: Commissioner Haralson MOVED to amend the motion by adding, the Airport Commission recommends Council review portion "D" in the draft ordinance. Commissioner Watkins SECONDED the motion. There were no objections. SO ORDERED. Discussion -- Appraised Airport Land Values KENAI AIRPORT COMMISSION FEBRUARY 13, 2003 PAGE 3 Cronkhite addressed the Commission by requesting review of a memorandum (included in the packet) from Julie Derry of Derry and Associates. The memo states Kenai has higher land values due to the airport being located in the business district, which adds commercial exposure and has water, sewer, and natural gas. Derry added, land values are based on the whole appraisal process. Bannock stated he felt there is much more to the higher land values in Kenai than what is outlined in the memo. Bannock stated, Kenai as a whole, has a much more complex infrastructure including a fully functioning airport and tower; one of the best fire departments in the state, including a fully manned fire station at the airport; and a high number of police officers. Shane Horan, KPB Assessing-- Horan provided a brief explanation of possessory interest and reversionary methods in regard to land values. ITEM 6: NEW BUSINESS-- None ITEM 7: REPORT 7-a. Commission Chair-- None 7-b. Airport Manager-- Airport Manager Cronkhite reported the following: · The Transportation Security Administration agents arrived for an inspection and brought Boeing consultants. The agents looked into full passenger screening. Additionally, the 300-foot rule has been reinstated due to the nation being placed in orange alert status. · Baggage screening at the Kenai Airport is being discussed. · The FAA certification agents came for an inspection. · The Alaska Runway Safety Action Team suggested additional signage on the runway. 7-c. City Council Liaison- Councilman Bookey reported the following: · There will be a work session regarding the budget on February 20, 2003 at 6'00 p.m. Bookey encouraged all to come. · Reminded the Commission of Bannock's new appointment and stated he would be missed. ITEM 8' COMMISSIONER COMMENTS AND QUESTIONS Haralson stated he enjoyed reading comments from the last meeting and inquired as to the status of the off-airport car rentals. Bookey informed him, at this point administration is looking into the issue. Haralson suggested efforts be applied in tightening up language to provide clarification to terms such as 'concession fee' and 'taxation.' KENAI AIRPORT COMMISSION FEBRUARY 13, 2003 PAGE 4 ITEM 9' PERSONS NOT SCHEDULED TO BE HEARD -- None ITEM 10: INFORMATION ITEMS 10=a. 10-b. 10-¢. 10-d. Kenai City Council Meeting Action Agendas for January 15 and February 5, 2003. 12/02 and 1/03 Kenai Municipal Airport Monthly Enplanement Reports Public Service Announcement regarding Commission's discussion on proposed flat-tax ordinance. 1/20/03 Avis letter regarding proposed ordinance pertaining to off-airport car rental operations. ITEM 11' ADJOURNMENT The meeting adjourned at 9:40 p.m. Minutes prepared and transcribed by: Sharon M. Hah:is, Department A~istant KENAI AIRPORT COMMISSION FEBRUARY 13, 2003 PAGE 5