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HomeMy WebLinkAbout2003-02-13 Airport Commission Packet 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 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, b, 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 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 Discussion -- Terminal Vehicle Parking Lot Renovation Discussion-- Off-Airport Car Rentals ITEM 7: NEW BUSINESS ITEM 8: REPORT Commission Chair Airport Manager City Council Liaison ITEM 9: COMMISSIONER COMMENTS AND (~UESTIONS ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD ITEM 11: INFORMATION ITEMS 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. corrections, the agenda was approved as presented. With no additions and/or 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 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 parkin§ bein§ so far away from the terminal buildin§. Erickson cited their major concern was safety and security as her employees would have to walk to and from their vehicles early in the momin§ and late at night, Erickson added, she and her staff do not understand the purpose for the chan§e and feel that ERA is bein§ 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 parldng, 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 w/Il be forwarded to City Council. ~6-b. 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, Alaslm. 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 f'mance 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 tape~ 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 Intemet and telephone calls. Knackstedt stated the City has the legal fight 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, ff 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 a/rport 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 Soldoma 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: "i21011owa¥ Yes Bielefeld No Kleidon Van Zee Abstain Haralson Absent Watkins Knackstedt Yes , Absent 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 Jaclcman 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. Atrpo~ 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 follow/ng: · 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. a-ce City Council Liaison -- No report. ITEM 9: COMMISSIONER COMMENTS AND (~UESTIONS 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: PERSONS NOT SCHEDULED TO BE HEARD - None ITEM 11: 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: Barl~r~ Roper:Co~dact S-ecretary AIRPORT COMMISSON MEETING JANUARY 9, 2003 PAGE 6 KENAI CITY COUNCIL WORK SESSION WITH AIRPORT COMMISSION AND ERA AVIATION, INC. REPRF~ENTATIVES OCTOBER 15, 2002 CITY COUNCIL CHAMBERS 7:00 P.M. MAYOR JOHN J. WILLIAMS, PRESIDING NOTES Council present: Staff present' Airport Commission' ERA Representatives' Moore, Williams, Bookey, Bannock, Swarner, Porter and Jackman Freas, Graves, Snow, Cronkhite, Hicks Bielefeld, Van Zee, Knackstedt, Haralson, Watkins Paul Landis, Judy Erikson, Cherisse Millett Williams opened the work session at approximately 7:00 p.m. and welcomed the Airport Commission members and ERA Aviation, Inc. representatives. After introductions, Williams requested opening remarks be made and include what each person was hoping to accomplish through the work session discussions. · · carrier. Landis noted the following in his opening remarks: · Kenai has the strongest cartier at the airport and the carrier has the strongest alliance with Alaska Airlines. An alliance with a major carrier is very important. Other carriers serving Kenai over the years were not aligned with a major Effects of the industry feed down to everyone. The thought that Kenai has the highest airfares in the nation is untrue and he provided a chart indicating fare comparisons on routes similar in mileage to Kenai. · They are phasing out the Twin Otter and using Dash 8s as they have found they are more popular with their customers; flights using the Dash 8s are less frequent than the Otters. · Price of fuel used to be the highest expense in carrier service and it is now wages. Discussion continued regarding the proposed market study. The question of what should or should not be included in the study and why was asked of all those in attendance. The following comments were made: Ha_raison suggested the focus of the overall intent of a market study would be what can be done to market the airport for the community and generate more revenue through the airport. He asked Landis what he could share with the city. · Williams stated the study would not be to only gather information about airfares, but would address other areas of concern. He explained the council charged the Airport Commission to look at the airport and market it and to do that, they need the tools with which to do the work. The market study will be the tool with which to provide the information. KENAI COUNCIL JOINT WORK SESSION OCTOBER 15, 2002 PAGE 2 Porter stated she was not interested in anything to do with the history of airfares, but wanted information of how to bring airpOrt-related business, as well as others, to the city. She added, the airfare information should already be available to the city. · Landis stated he would want the study to offer a fair analysis; didn't believe the ticket lift information was needed and would be not be available from electronic ticketing; recommended enhancing air service, i.e. put in place infrastructure for security screening and other requirements to allow Kenai to be used for diversionary traffic. He added, this was an untapped market for Kenai. He also noted their flight attendants take training at PRISM and suggested the city attract other corporate, state and federal groups to use the facility as well. · Williams noted he would want to find if there are companies that may want to locate in Kenai and if so, can they be accommodated. Also, he would want the study to expand Kenai's economic development and fill the gap for jobs three to five years ahead; the city needs to think "out of the box"; and to identify development that will bring people to Kenai on a 12-month basis. Porter noted, at the time the ordinance to appropriate funding for the study came to council for public hearing, the council had.not had the opportunity to review the contract. Had the discussion at the public hearing not turned to the tabling of the issue, some of the council would have questioned what would be included in the study. Her intent wasn't to go with everything discussed in the proposed contract. · Airport Manager Cronkhite noted they have contacted corporate users of the airport and indicate what is offered at the Kenai Airport; they advertise in corporate-based magazines; and that normal FI30 responsibilities are offered by the airport staff. Cronkhite also noted, the Commission was charged with marketing the airport, which includes air service, community concerns about airfares, and getting information on leakage. · Van Zee noted the Commission was investigating acquisition of federal grant funds and to receive the funds, specific information is required to include in the grant applications. That information would be garnered from the study. He reviewed information requested in a grant application. He added, the city cannot provide information for the applications if the market is not identified. He suggested the study include information about where people are going and where they are coming from. 13annock suggested the study should include an inventory of assets. It was noted the Airport Master Plan includes an inventory of airport lands. · Tim Polk, Natron Air, agreed the study should include an inventory of what is available. Cherie Brewer suggested using local personnel to do the study and Williams noted, there are no expert opinions here and felt someone should be recruited to do the study. · 13ookey stated he wanted an RFP and incorporate ideas stated during the work session into the contract, rewrite the contract and then fund it. KENAI COUNCIL JOINT WORK SESSION OCTOBER 15, 2002 PAGE 3 · Jim Bielefeld noted, information is needed to include in grant applications and the Commission needs to get the information and he wanted the Commission to have the freedom to apply for the grants. BREAK TAKEN: 8:17 P.M. BACK TO ORDER: 8:35 P.M. Referring to an earlier comment council had not received information in regard to the study, Swarner noted a copy of the Airport Manager Report included in the July 11, 2002 council packet which discussed airport marketing and stated council should read the reports when they are made available. She a/so noted the ordinance for appropriating funds for the study was introduced in August. · Kurt Wisniewski stated he felt it would be good to have competition as he had received unfavorable counter service at the airport recently and would have used a different carrier if it had been available. Williams requested a list be formulated by the group, including everything suggested to be included in the study. It was as follows: 1. Inventory physical assets of the airport 2. Perceived needs of the customer 3. Perceived needs of the airport 4. Passenger leakage 5. Inventory of personnel 6. Services to the airport 7. Inventory vacant buildings 8. Lease rate comparison on airport lands/taxes/fees 9. Types of businesses on the airport 10. Types of businesses' perceived needs 11. Answer who the market serves; what the market wants; what is market and marketing to passengers/cargo. 12. the airport. 13. 14. 15. Chamber's study of city assets). 16. What do citizens want their airport to be? What are the available grants and whether they are applicable to market Airfare study (from Cronkhite records) Float plane basin useage/marketing Marketable assets of the city to market the airport (include the Small town or something else? Closing comments included: · Haralson asked Landis, based on his knowledge and expertise, what did he think needed to be included on the list. Landis answered, airfares won't drive the business here. He added, that was not the problem -- get business/businesses to the airport and the airport will take care of itself. · Williams stated he wants the revenues the airport produces to spin off to the community. KENAI COUNCIL JOINT WORK SESSION OCTOBER 15, 2002 PAGE 4 · Porter thanked Landis for coming and for ERA's donations to the area. Landis left the meeting. · Williams encouraged council and Commissioners to continue to think about what they wanted included in a study. After the list is completed, the ideas should be reviewed by the Commission, the contract proposed contract rewritten and submitted to council for review at another work session so everyone will be accepting of the end result. · Knackstedt questioned why I~RA was so concerned about the study that they had brought three people to the work session. · 13ielefeld stated the only way to get lower fares is with aircraft that is less expensive to operate. He added, he didn't think the airfare was a big concern, but he wants the Commission to have the freedom to investigate thoroughly how best to market the airport. · Referring to Knackstedt's comment, 13annock suggested ERA's concern was reactionary. Williams requested the Commission meet again and short through the list, reformulate the package, meet again with the council to make final changes before bringing the ordinance back for action. He added, he would like a consensus before bringing the ordinance back. Jackman stated everyone should keep an open mind. · Referring to comments Landis made at the September meeting that he could give information, Haralson stated he was disappointed there was little information offered to them from ERA. He added, he' wanted to review the list, etc. and formulate specific questions to ask ERA in regard to request for information. · 13ookey stated he would like more information in regard to airline baggage transfer programs. · Brewer suggested marketing the city first and then the airport and working with the Chamber in marketing the city. · Watkins suggested contacting an advertising agency first for ideas and send letters to major airlines in regard to other carriers. Polk suggested contacting the sign advertising contractor for the airport and question the viability of their working with the city in advertising Kenai in other airports. · Porter suggested treating ERA as a customer. The work session adjourned at approximately 9'25 p.m. Notes transcribed and prepared by: Carol L. Freas, City Clerk Suggested by: CITY OF KENAI ORDINANCE NO. -2003 AN ORDIN~CE OF THE COUNCIL OF THE CITY OF KEN~, ALASKA, AMENDING KMC 7.05.010 TO PROVIDE A FLAT PERSONAL PROPERTY TAX OF $75.00 FOR NON-COMMERCIAL AIRCRAFT AND CLARI~ING THE EXISTING EXEMPTIONS. WHEREAS, currently the personal property tax for non-commercial aircraft is on an ad valorem basis; and WHEREAS, it is in the best interest of the City of Kenai to have a flat personal property tax of $75 on non-commercial aircraft; and WHEREAS, the existing personal property tax exemptions in KMC 7.05.010(c) should be clarified; NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, AI~SKA that KMC 7.05.010 be amended by replacing section (c) and adding two new sections (d)and (e) as follows: (C) [IN ADDITION TO EXEMPTIONS PRESENTLY AUTHORIZED BY THE ~NAI PENINSU~ BOROUGH, THE INVENTORY OF A BUSINESS HELD FOR RESALE IN THE NORMAL COURSE OF THAT BUSINESS IS HEREBY CLASSIFIED AS PERSONAL PROPER~ EXEMI~ FROM TAXATION FOR THE CITY OF KEN~.] In addition to the exemptions required by law~ the household furniture and effects of family or a householder are classified as exempt from taxation. Household furniture and effects shall include household appliances, garden tractors, garden supplies and accessories, noncommercial garage equipment, home workshop machinery and any vehicles not requiring registration or licensing. The inventory_ of a business is hereby classified as personal property exempt from taxation for the City of Kenai. [d) Aircraft (freed and rotm3r wing) that are not used for commercial purposes are taxed at a flat rate of $75 per year and not as provided in KMC 14.05.010 (a) and (b) above. (e) Motor vehicles required to be registered by the State of Alaska shall be taxed as provided in KPB 5.12.245. Ordinance -2003 Page 2 of 2 PASSED BY .THE COUNCIL OF TIlE CITY OF KENAI, ALASKA, this ,2003.. John j. Williams, Mayor day of ATTEST: Carol L. Freas, City Clerk Introduced: Adopted: Effective: nal Municipal Airport MEMO To: From: Date: Rebecca Cronkhite- Airport Manager Mary Bondurant- Administrative Assista .~'-~ February 6, 2003 Subject: Land Appraisal Rates At the December 12, 2002, Airport Commission directed Airport Management to look into land values between the Kenai and Soldotna airports. I talked with Julie Derry, of Derry and Associates, and she said it makes sense that Kenai Airport properties appraise higher as they are very different from the properties at the Soldotna Airport. The Kenai Airport is located in the business district adding commercial exposure and has water, sewer, and natural gas. Land values are based on the whole appraisal process. She would be happy at any time to discuss the appraisal process. AGENDA KENAI CITY ¢OUNC~- REGULAR MEETING JANUARY ! 5, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBEI~ http://www, ci.kenai.ak.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: /, , SCHEDULED PUBLIC COMMENTS (10 minutes) ~/~ 2//~,~ -~e~~4 Z ~/~~e~ ~. Mike Nugent and Lisa Parker, Agrium -- Economic Impacts of Agrium Kenai Nitrogen Operation ITEM C: REPORTS OF KPB ASSEMBLY~ LEGISLATORS AND COUNCII~ ITEM D: PUBLIC HEARIHGS , Ordinance No. 1985-2003 -- Increasing Estimated Revenues and Appropriations by $16,895 in the General Fund for a Grant From the Bill and Melinda Gates Foundation. e Ordinance No. 1986-2003 -- Increasing Estimated Revenues and Appropriations by $28,000 in the Airport Terminal Enterprise Fund. 3~ Resolution No. 2003-03 -- Setting the Public Hearing Date on the Proposed McCollum/Aliak Local Improvement Special Assessment District. a. Choice of Method of Assessment b. Percentage of Assessment , Resolution No. 2003-04-- Declaring the Kenai Coastal Trail and Erosion Protection Project as the Number One Capital Improvement Project Request for U.S. Federal Funds. -1- Resolution No. 2003-05 -- Awarding the Bid to Kenai Chrysler Center for a Semor Center All-Wheel-Drive Mini-Van for the Total Amount of $28,290. Continuation of Liquor Licenses -- PROTEST ~~/~5~'~/~o~ Alaskalanes' Inc' New Peking Eaglechief, Inc, ITEM E: COMMISSION/COMMITTEE REPORTS . 2. 3. 4. 5. 6. 7. Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention 8; Visitors Bureau Board c. Alaska Municipal League Report d. Kenai Chamber of Commerce ITEM F: MINUT~ lo *Regular Meeting of January 2, 2003. ITEM G: CORRF~PONDENCE ITEM H: OLD BUSINF, SS . Approval -- Commission/Committee Continuation of Terms ITEM I: NEW BUSINESS . Bills to be Paid, Bills to be Ratified o Purchase Orders Exceeding $2,500 . *Ordinance No. 1987-2003 -- Amending KMC 23.50.010 to Change the Range of the Police Trainee While Attending the Public Safety Academy at Sitka to a Range 2. . *Ordinance No. 1988-2003 ---Amending KMC 7.15.050 to Increase the Purchasing Limit Without Competitive Bidding for Construction or Maintenance Projects to $20,000. , *Ordinance No. 1989-2003 -- Increasing Estimated Revenues and Appropriations by $1,900,000 in the Wellhouse No. 4 Capital Project Fund and $950,000 in the Water and Sewer Special Revenue Fund. -2- , *Ordinance No. 1990-2003 -- Amending the Land Use Table in KMC 14.22.010 to Change Day Care Centers From "C" (Conditional Use) to "P" (Principal Permitted Use) in the CG (General Commercial), CC (Central Commercial) and IL (LiCit Industrial) Zones. , Discussion -- Smoldng in Restaurants ITEM J: REPORT OF THE MAYOR ITEM K: ADMINISTRATION REPORTS 1. City Manager 2. Attorney 3. City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- None Scheduled ITEM M: ADJOURNMENT -3- AGENDA KENAI CITY COUNCIL- REGULAR MEETING FEBRUARY 5, 2003 7:00 P.M. KENAI CITY COUNCIL CHAMBERS httr)://www.ci, kenai.~.us ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non-controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: , SCHEDULED PUBLIC COMMENTS (10 minutes) Betsy Arbelovsky -- Community Care Foundation ITEM C: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCr~_$ ITEM D: PUBLIC HEARINGS It, Smo n ir, min tab i hm r,t  2. Ordinance No. 1987-2003 -- Amending KMC 23.50.010 to Change the Range of ~'. the Police Trainee While Attending the Public Safety Academy at Sitka to a Range 2. Ordinance No. 1988-2003 -- Amending KMC 7.15.050 to Increase the Purchasing Limit Without Competitive Bidding for Construction or Maintenance Projects to $20,000. Ordinance No. 1989-2003 -- Increasing Estimated Revenues and Appropriations by $1,900,000 in the Wellhouse No. 4 Capital Project Fund and $950,000 in the Water and Sewer Special Revenue Fund. , Ordinance No. 1990-2003 -- Amending the Land Use Table in KMC 14.22.010 to Change Day Care Centers From "C" (Conditional Use) to "P" (Principal Permitted Use) in the CG (General Commercial), CC (Central Commercial) and IL (Light Industrial) Zones. Resolution No. 2003-06 -- Supporting the Approval of the Tri-Borough Position Paper for Federal Outer Continental Shelf Oil and Gas Leasing Program, 2002- 2007. -1- , ITEM E: . 2. 3. 4. 6. 7. ITEM F: . ITEM G: ITEM H: ITEM I: . o ITEM J: ITEM K: , *Liquor License Renewals Pizza Paradisos-- Beverage Dispensary Kenai Joe's-- Bevera§e Dispensary BPO Elks Lod§e #2425 -- Club Peninsula Moose Lod§e # 1942 -- Club The Rainbow Bar-- Bevera§e Dispensary COMMISSION/COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning & Zoning Commission Miscellaneous Commissions and Committees a. Beautification Committee b. Kenai Convention & Visitors Bureau Board c. Alaska Municipal League Report d. Kenai Chamber of Commerce MINUTES *Regular Meeting of January 15, 2003. *December 12, 2002 Work Session Notes CORRESPONDENCE OLD BUSINESS NEW BUSINESS Bills to be Paid, Bills to be Ratified Purchase Orders Exceeding $2,500 *Ordinance No. 1991-2003 -- Increasing Estimated Revenues and Appropriations by $779.25 in the General Fund for Drug Asset Forfeitures. *Ordinance No. 1992-2003 -- Increasing Estimated Revenues and Appropriations by $24,876.90 in the General Fund for an Alaska Highway Safety Grant to Purchase Video Cameras. Approval -- Vacation of the Westerly Three-Foot Portion of the 33-Foot Access Easement to Accommodate the Existin§ Buildin§, All Within Section 34, T6N, RI 1W, Seward Meridian, Alaska, the city Kenai and the Kenai Peninsula Borou§h-- David Yra§ui, Petitioner REPORT OF THE MAYOR ADMINISTRATION REPORTS City Manager -2- . Attorney City Clerk ITEM L: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SESSION- None Scheduled ITEM M: ADJOURNMENT -3- nat Municipal Airport 2002 Monthly Enplanements 0 Series1 ~ 1 Era 1997-2001 Month 2002 2001 5 yr. Avera~le Jan 7,829 8,300 -471 8,076 Feb 7,046 7,137 -91 7,350 Mar 7,371 8,216 -845 8~247 Apr 6,902 7,058 -156 7,148 May 6,880 8,143 -1,263, 8,003 Jun 6,740 9,044 -2,304 9,582 Jul 9,979 12,093 '-2,114 12~958 Aug 8,644 10,807 -2,163 11,196 Sep 6,684 6,334 350 8,343 Oct 6,309 7,582 -1,273 8~356 Nov 6,023 i 7,345 -1,322 8,004 Dec 6,249 7,494 , -1,245 8~067 Totals 86,656 99,553 -12,897 ne/ Municipal Airport 2003 Monthly Enplanements ISeriesl 1 2 Era 1998-2002 Month 2003 2002 ... 5 yr. Averacje Jan 6,454 7,829 -1,375 8,055 Feb ~ 7,302 , Mar . 8,154 Apr 7,032 May . . . 7,702 Jun . 8,815 Jul 11~962 Aug 10~432 Sep 7,697 Oct 7,701 , Nov 7,407 Dec 7,457 Totals 6,454 7,829 -1,375 PUBLIC SERVICE ANNOUNCEMEN" REQUEST From Municll~ll Airport 305 N. Willow, Suite 200 Kenai, AK 99611 Tel: (907) 283-7951 Fax: (907) 283-3737 www. KenaiAirport. com Please use the following for your PSA: The Kenai Airport Commission will be discussing a Proposed Ordinance for Flat Tax on Private Aircraft at their monthly meeting on February 13, 2003 at 7:00pm in the Kenai City Council Chambers, 210 Fidalgo Ave., Kenai, AK 99611. Interested parties are encouraged to attend. For more information, call 283-7951. Media Distribution: KSRMIKSLDIKWHQ KDLL KBAY/KWVE/KPENIKGTL KVVJG A We try harder: January 20, 2003 Mr. John Williams, Mayor City of Kenai 210 Fidalgo Avenue, #200 Kenai, Alaska 99611 RECEIVED .. JAN 2 i 2o03 CITY CLE R K Reference: Proposed Ordinance Pertaining to Off Alaska Rent A ( ~~ ~d Avis System Licensee P.O. Box 190028 Anchorage, Alaska 99519-0028 Tel: (907) 243-4300 Fax: (907) 249-8247 E-mail: avisak @ alaska.net Car Rental Operations The Honorable Mayor Williams' We understand there has been dialogue and contemplation of a proposed ordinance establishing an off airport vehicle permit system for off airport car rental operators wishing to conduct business on the Kenai Airport. We have reviewed a copy of the ordinance and proposed Municipal Code 21.05.045 and would like to take this opportunity to address this issue. We are in favor in concept of this ordinance for the following reasons' 1. This provides an additional source of revenue to the City 2. It levels the playing field among on and off airport operations 3. It increases the real value of the current 4 non-exclusive-on-airport car rental concessions. By allowing off airport operators to conduct business from, or in some cases in, the airport without paying fees the City actually minimizes the worth of the current leases it has with its on airport operators. From information gleaned from the Dec. 18, 2002, City Council Meeting it is quite apparent that the Great Alaska Car Company regularly conducts business on the airport terminal. If the City of Kenai is aware of this practice then why do the current on airport car rental companies pay the "conce~ion f~e: for the privile.qe of conducting on- airport automobile rental operations at the airport" (Page 2 of 5, original bid documents for current iease) and off airport operators pay nothing. Through the competitive bidding process AVIS agreed to operate at the Kenai Airport by a specific set of rules and requirements set forth by the City of Kenai. These requirements range from paying 10% of our gross fees, renting counter space, providing insurance indemnifying the City, and committinq to a minimum annual guarantee regardless of gross revenue. If the City is aware that other car rental companies have free access to enjoy all the benefits derived from business funneled through the airport without meeting these requirements then we suggest that the City has failed to uphold the terms of its lease and is also placing themselves in jeopardy with public liability issues. -1- Page2 The proposed municipal code puts in place a tool to level the playing field. The State's largest airport already charges fees to off airport car rental operations for the right to access customers at the airport. We applaud the City's effort to follow suit. The language in Section A and F of KMC 21.05.045 needs to be changed. The Code as written would allow an off-airport agency to operate on airport by simply leaving the key and car at the airport for the customer pick up. What distinguishes that from the on- airport operator? Off airport operators should be allowed to have access to the airport infrastructure, pay fees for that right, but not be allowed to operate their business from the airport. The airport has an obligation to its tenants. We feel the proposed ordinance/code with suggested modifications is a step in the right direction. Sincerely, AVIS/ALASKA an ral Manager 'em cc Rebecca Cronkhite, Kenai Airport Manager