HomeMy WebLinkAbout2003-01-09 Airport Commission PacketKENAI AIRPORT COMMISSION
JANUARY 9, 2003
KENAI CITY COUNCIL CHAMBERS
7:00 P.M.
AGENDA
ITEM 1: CALL TO ORDER AND ROLL CALL
ITEM 2: ELECTYON OF OFFYCERS
ITEM 3: AGENDA APPROVAL
ITEM 4: APPROVAL OF MINUTES -- December 12, 2002
ITEM 5: PERSONS SCHEDULED TO BE HEARD
ITEM 6: OLD BUSINESS
a. Discussion -- Terminal Vehicle Parking Lot Renovation
b. Discussion -- Off-Airport Car Rentals
ITEM 7: NEW BUSINESS
ITEM 8: REPORT
a. Commission Chair
b. Airport Manager
c. City Council Liaison
ITEM 9: COMMISSIONER COMMENTS AND QUESTIONS
ITEM 10: PERSONS NOT SCHEDULED TO BE HEARD
ITEM 11: YNFORMATYON ITEMS
a. Kenai City Council Meeting Action Agenda for December 18, 2002.
ITEM 12: ADJOURNMENT
KENAI AIRPORT COMMISSION
DECEMBER 12, 2002
KENAI AIRPORT OPERATYONS FACILITY
7:00 P.M.
AGENDA
ITEM l: CALL TO ORDER AND ROLL CALL
ITEM 2: AGENDA APPROVAL
YTEM 3: APPROVAL OF MINUTES -- November 14, 2002
ITEM 4: PERSONS SCHEDULED TO BE HEARD
ITEM 5: OLD SUS%NESS
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a. Discussion -- Phil Bryson (Wince, Corthel, Bryson) Second Review of
Parking Lot Revisions
b. Discussion -- Development of Request for Proposals: Airport destination
and travel preferences survey and preliminary marketing plan
development to enhance use of Kenai Airport.
ITEM 6: NEW BUSINESS
a. Discussion -- Proposed Ordinance for Flat Tax on Private Aircraft
b. Discussion -- Proposed Airport Entrance Design
ITEM 7: REPORT
a. Commission Chair
b. Airport Manager
c. City Council Liaison
ITEM 8: COMMISSIONER COMMENTS AND pUESTIONS
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD
ITEM 10: INFORMATION YTEMS
a. Kenai City Council Meeting Action Agendas for November 20 and
December 4, 2000.
b. Draft Ordinance for off-airport fees.
c. ACIP letter to FAA.
d. Anchorage Daily news article on Condor Airlines.
e. Float Plane Traffic Count.
f. Letter to Paul Landis/ERA Aviation on ADA Compliant Lift.
g. 2002 Fioat Plane Traffic Count.
ITEM 11: ADJOURNMENT
KENAY AIRPORT COMMISSION
DECEMBER 12, 2002
KENAI AIRPORT OPERATIONS FACILITY
7:00 P.M.
MINUTES
ITEM 1: CALL TO ORDER AND ROLL CALL
Chairman Knackstedt called the meeting to order at 7:15 p.m. Roll was taken and
confirmed as follows:
Present: Knackstedt, Holloway, Haralson, Watkins
Absent: Van Zee, Kleidon, Bielefeld
Others Present: Airport Director Cronkhite, Department Assistant Hams
ITEM 2: AGENDA APPROVAL
MOTION:
Commissioner Holloway MOVED to approve the agenda as presented and
Commissioner Hazalson SECONDED the motion. There were no objections. SO
ORDERED.
ITEM 3: APPROVAL OF MINUTES -- November 14, 2002
There were no objections to approving the minutes as presented.
ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None
ITEM 5: OLD BUSINESS
5-a. Discussion -- Phil Bryson (Wince, Corthel, Bryson) Second Review of Parking Lot
Revisions
Bryson presented the Commission with three layouts of maps of the new parking lot
revisions from the Master Plan. After review, the Commissioners all agreed to
recommend Alternate F and detailed the following:
• Each parking stall is 10x20 feet, an increase of neazly two feet longer and
one foot wider than the original stalls.
• An existing drainage system exists in the center of short-term parking
which empties into a ditch on the eastern portion of the front parking area. Bryson
stated this drain is marginal and plans should be made to improve it.
• Discipline will be needed in the pazking areas during winter months to
avoid incorrect parking.
• The overflow parking area across the street provides an excellent area for
recreational and oversized vehicles.
• There are 73 stalls designated for employee parking; SO spots on the
north end and 65 on the south.
Bryson suggested the Commission and Cronkhite meet with the various user groups to
help define parking needs (airport employees. permit holders, etc.). Cronkhite also
suggested providing vehicle plug-ins to permit holders.
MOTION:
Commissioner Holloway MOVED to recommend Alternate F and requests Airport
Administration contact airport user groups (terminal business owners and employees,
patrons, permit holders, etc.) to attend the next meeting to discuss and review parking
issues and the development of Alternate F. Commissioner Haralson SECONDED the
motion. There were no objections. SO ORDERED.
5-b. Discussion -- Development of Request for Proposals: Airport destination
and travel preferences survey and preliminary marketing plan development to
enhance use of Kenai Airport.
The Commission agreed to postpone discussion on this issue until the next meeting.
%TEM 6: NEW BUSINESS
6-a. Discussion -- Proposed Ordinance for Flat Tax on Private Aircraft
The Commission agreed to postpone discussion on this item until the next meeting.
Cronkhite stated she would be inviting all those who testified in past public hearings
regarding the taxation issue to the next meeting. Commissioner Hazalson stated he is
eager to see the Kenai Airport on a level playing field as the Soldotna Airport and
boroughs azound the state.
6-b. Discussion -- Proposed Airport Entrance Design
Cronkhite requested the Commission review the preliminary entrance design for the
Airport Triangle Park. Currently, the flagpoles are becoming obscured by trees. The
new design features bronze fish sculptures throughout the pazk and a tasteful array of
short plants and shrubbery.
Chairman Knackstedt stated he would like to heaz from Parks and Recreation before
proceeding. Cronkhite stated this item would be included on their next agenda.
The Commission, overall, agreed and approved of the preliminary design and found it
aesthetically pleasing.
ITEM 7: REPORT
7-a. Commission Chair -- No report
KENAI AIRPORT COMMISSION MEETING
DECEMBER 12, 2002
PAGE 2
?-b. Airport Manages -- Cronkhite reported she would be out of town until January
4, 2003.
7-c. Citq Council Liaison -- No report
ITEM 8: COMMISSYONER COMMENTS AND QUESTIONS
Haralson commented on the amount of new businesses in the Soldotna airport area
and stated he feels there is a disparity in land value between Kenai and Soldotna and
wondered why Kenai land costs so much more than Soldotna.
Cronkhite stated she would look into this issue and would contact the Borough
appraisal office to find out criteria involved in land ra±es.
ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD -- None
YTEM 10: INFORMATYON ITEMS
10-a. Kenai City Council Meeting Action Agendas for November 20 and December 4,
2000.
10-b. Draft Ordinance for off-airport fees.
10-c. ACIP letter to FAA.
10-d. Anchorage Daily news article on Condor Airlines.
10-e. Float Plane Traffic Count.
10-f. Letter to Paul Landis/ERA Aviation on ADA Compliant Lift.
10-g. 2002 Float Plane Traffic Count.
ITEM 11: ADJOURNMENT
The meeting adjourned at 8:55 p.m.
Minutes transcrbed grid prepared by:
Sharon M. Hams, Department Assistant
KENAI AIRPORT COMMISSION MEETING
DECEMBER 12, 2002
PAGE 3
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A11rp®1"t Bulletin 06 - 2®0
To: Airport Terminal Tenants, Cab Companies, & Rental Car Agencies
From: Kenai Airport Manageme
Date: December 20, 2002
Subject: Terminal Parking Lots
The Airport Commission is in the process of developing a plan to renovate the airport
4emtinal vehiGe parking tots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to this office by Thursday, January 2. You are also invited to
attend the meeting and participate in the discussions.
If you have any questions, please call 283-7951, ext. 22.
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To: Airport Terminal Tenants, Cab Companies, & Rental Car Agencies
From: Kenai Airport Manageme
Date: December 20, 2002
Subject: Terminal Parlring Lots
The Airport Commission is in the process of developing a plan to renovate the airport
terminal vehiGe panting lots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to this office by Thursday, January 2. You are also invited to
attend the meeting and participate in the discussions.
If you have any questions, please~call 283-7951, ext. 22.
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Oate: December 20, 2002
Subject: Terminal Parking Lots
The Airport Commission is in the process of developing a plan to renovate the airport
terminal vehiGe parking lots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to this office by Thursday, January 2. You are also invited to
attend the meeting and participate in the discussions.
If you have any questions, please-call 283-7951, ext. 22.
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Airport Bulletin 06 ®2002
To: Airport Terminal Tenants, Cab Companies, & Rental Car Agencies
From: Kenai Airport Manageme
Date: December 20, 2002
Subject: Terminal Parking Lots
The Airport Commission is in the process of developing a plan to renovate the airport
terminal vehiGe parking lots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to this office by Thursday,. January 2. You are also invited to
attend the meeting and participate in the discussions.
If you have any questions, please~call 283-7951, ext. 22. ~.
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To: Airport Terminal Tenants, Cab Companies, ~ Rental Car Agencies
From: Kenai Airport Manageme
Date: December 20, 2002
Subject: Terminal Parking Lots
The Airport Commission is in the process of developing a plan to renovate the airport
terminal vehiGe parking lots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to this office by Thursday, January 2. You are also invited to
attend the meeting and participate in the discussions.
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To: Airport Terminal Tenants, Cab Companies, & Rental Car Agencies
From: Kenai Airport Manageme
Date: December 20, 2002
Subject: Terminal Parking tots
The Airport Commission is in the process of developing a plan to renovate the airport
terminal vehiGe parking lots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to this office by Thursday, January 2. You are also invited to
attend the meeting and participate in the discussions.
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To: Airport Terminal Tenants, Cab Companies, & Rental Car Agencies
From; Kenai Airport Manageme
Date: December 20, 2002
Subject: Terminal Parking Lots
The Airport Commission is in the process of developing a plan to renovate the airport
terminal vehiGe parking lots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to this office by Thursday, January 2. You are also invited to
attend the meeting and participate in the discussions.
If you have any questions, please~call 283-7951, ext. 22.
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To: Airport Terminal Tenants, Cab Companies, & Rental Car Agencies
Feom: Kenai Airport Management
Date: December 20, 2002
Sutsjeot: ~r:,i,~eal,°aPdringLots
The Airport Commission is in the process of developing a plan to renovate the airport
terminal vehicle parking lots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to 4his office by Thursday, January 2. You are also invited to
attend the meeting and participate in the discussions.
If you have any questions, please call 283-7951, ext. 22.
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Airport Bulletin 06 - 2002
To: Airport Terminal Tenants, Cab Companies, & Rental Car Agencies
From: IEenai Airport Manageme
Date: December 20, 2002
Subject: Tennina/Parking Lots
The Airport Commission is in the process of developing a plan to renovate the airport
terminal vehiGe parking lots. Attached is a draft plan that is scheduled for review at
the January 9, 2003, Airport Commission meeting. Please review the draft plan and
forward your comments to this office by Thursday, January 2. You are also invited to
attend the meeting and participate in the discussions.
if you have any questions, please~call 283-7951, ext. 22.
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TO: Mayor John J. Williams and City Council Members
FROM:~~ Cary R. Graves, City Attorney
DATE: December 13, 2002
RE: Rental Car Fees and Taxes
The Council requested I prepaze two ordinances for discussion. One was to be for an off-airport
rental car fee and the other for a citywide rental caz tax. Both are attached to this memorandum.
I.
Off-airport rental car gross receipts fees have long been the subjects of controversy (and
litigation) nationwide. The general rule is that they are fees (not taxes) and a valid method for an
airport to preserve revenue, nanow the competitive gap between off-airport and on-airport
companies, and fund airport construction and operation. Jacksonville Port Authority v. Alamo
Rent-A-Car. I,n^, inn So.2d 1159 {Fla. Anr. 1~` Dist. 19921• a/~,,,o Renr_a_rar, Inc, ,,. r'.r„ „r
Palm Spring, 942 F.2d 629 (9`~ Cir 1991). While such fees are legal, it is obviously a policy call
for the Council on whether to implement such a fee.
To charge anoff-airport rental caz fee, there must be a direct connection (nexus) between the
airport and the transaction. For example, in the draft off-airport fee ordinance, the rental caz
customer or rental car must be picked up or dropped off at the airport by the rental car company
for the fee to apply. Revenue from transactions subject to anoff-airport rental car fee (i.e. with a
nexus) would go to the airport. Off-airport rental transactions not directly connected to the
airport (i.e. without a nexus) would not be subject to the fee.
The on-airport rental caz companies pay $1.65 per squaze foot of space and 10% of gross revenue
to the City. The 10% gross revenue fee is a significant portion of the Airport Terminal Fund.
The budgeted fund revenue for FY2003 was $3'79,900. Of that, $150,000 (about 40%) came
from the 10% gross revenue charge. Airport Terminal Fund expenses are estimated to be
$469,182. Retained earnings of $39,292 had to be used to balance the fund budget for FY2003.
My understanding is that the retained earnings contribution is expected to go up in the future.
Mr. Semmens can give you a more in-depth analysis of the Airport Terminal Fund.
Mayor John J. Williams and City Council Members
December 13, 2002
-- Page 2 of 2
Many airports, such as Phoenix and Missoula,. charge an on-airport gross receipts fee of 10% and
anoff-airport fee of 7% to reflect the fact that while off-airport companies derive a benefit from
their airport use, it is less than that derived by on-airport rental car companies.
II.
Also included at the Council's request is a citywide rental car tax. That tax would cover any
vehicle rental within the City of Kenai. Its proceeds would go to the general fund. Like the bed
tax Kenai used to have, it would be implemented and enforced by the City of Kenai rather than
the Kenai Peninsula Borough. Since 10% of the gross receipts for on-airport caz rentals equal
about $150,000, I am assuming gross receipts for all on-airport rental caz receipts are about
$1,500,000. I don't have an estimate for other gross rental vehicle receipts within the City.
Using those numbers, 5% citywide rental car tax would generate about $75,000 per annum for
the general fund ($1,500,000 x .OS = 575,000) plus 5% of whatever would be generated from
other vehicle rentals withir. the City. The 5°~ n,unber has no special significance; it is just for
illustrative purposes.
Please let me know if you have any questions regarding these issue.
CRG/sp
Attachments
Suggested by: Administration
CITY OF KENAI
ORDINANCE NO. -2003
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING
KMC 21.05.045, ESTABLISHING AN OFF-AIRPORT VEHICLE PERMIT SYSTEM
PROVIDING THAT OFF-AIRPORT VEHICLE RENTAL OPERATORS SHALL BE
REQUIRED TO ACQUIRE A PERMIT AND PAY A FEE OF TEN PERCENT FROM
RENTALS WHERE THE RENTER OR RENTAL VEHICLE IS PICKED UP OR DROPPED
OFF AT THE KENAI MUNICIPAL AIRPORT BY THE VEHICLE RENTAL BUSINESS OR
ITS AGENT.
WHEREAS, City of Kenai is the owner and operator of the Kenai Municipal Airport
("Airport") under the authority of the Kenai City Charter and the statutes of the State
of Alaska; and
WHEREAS, the Airport is financed and managed under policies and practices designed
to ensure that it is and will continue to be self-supporting and will not require the
expenditure of local tax funds; and
WHEREAS, off-airport rental companies aze benefiting from the use of the Airport but
are not paying a significant and fair share of the costs and expenses of operating the
airport; and
WHEREAS, off-airport rental vehicle companies do not contribute fees toward the cost
of the Airport to an extent equal of the value of the privileges they enjoy or the facilities
they Ilse nr henefit frpm; a-rnd
WHEREAS, at many airports throughout the nation off-airport vehicle rental
companies are required to and are paying a percentage of gross revenue fees for the
right to conduct airport operations, and the City desires to pattern such fees at the
Airport in the same manner; and
WHEREAS, for purposes of establishing and fixing fees, the City fords that rental
vehicle companies, including off-airport companies, constitute a specific class of
business operations dependent on the use of Airport property; and
WHEREAS, it is necessary, appropriate and reasonable to establish and fix
appropriate fees for off-airport rental vehicle companies to preserve and maxi.r,+~e
rental revenues;
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that KMC 21.05.045 is adopted to read as follows:
KMC 21.05.045 Off-airport Vehicle Rentals
(a) To operate anoff-airport vehicle rental business on the
Kenai Municipal Airport, a person who does not have a
concession to operate a vehicle rental business in an airport
terminal building must hold a current vehicle rental
business permit issued under this section. Operating a
vehicle rental business on the Kenai Municipal Airport for
purposes of this section means picking up or dropping off a
vehicle rental customer by the operator or its agent or
leaving a vehicle to be picked up by the customer at the
airport or having the customer leave a vehicle at the airport
to be picked up by the operator.
(b) A person must submit an application for a vehicle rental
business permit in writing to the Airport Manager and
include a description of the services that the applicant
proposes to offer under this permit.
(ci The Airport Manager shall approve an application for a
vehicle rental business permit unless the Airport Manager
determines that
(1) The proposed use would interfere with or is
incompatible with the safety, maintenance or operation
of the airport;
(2) The proposed use would result in a violation of
applicable law or regulation;
(3j The proposed use is inconsistent with sound airport
planning.
(d) A decision by the Airport Manager to deny an application
for a vehicle rental business permit must be in writing. The
decision shall state the grounds for a denial. A decision to
deny a permit may be appealed to the city council by _filing
an appeal with the city clerk within thirty days of written
notification of the decision. KMC 14.20.290 shall govern
the procedure of the appeal.
(e) A vehicle rental business permit is not transferable and
may not exceed five years.
(f) An off-airport business permittee shall pay ten percent of
gross sales from rentals derived from the Kenai Municipal
Airport. Rentals shall be deemed to have been derived from
the Kenai Municipal Airport if the vehicle rental business
customer is picked up or dropped off at the airport by the
permittee or the permittee's agent or if the rental vehicle is
left for the customer to pick up at the airport or dropped off
by the customer at the airport.
(g) Gross rentals shall mean the value of all charges incurred
by the renter, other than the fee prescribed by this section,
for the use of a motor vehicle, regardless of whether paid in
the form of money, property, or services, except for only the
following items if separately stated on the rental contract:
Ordinance No. -2003
December 12, 2002
Page 3 of 4 -
(1) The amount of federal, state borough or municipals
sales or other similar taxes separately stated and
collected and/or reimbursed from customers.
(2) Any sums received from insurance or other settlements
for damage to automobiles or other property of the
concessionaire, or any chazges collected from a
customer for damages to the vehicle rented.
(3) Any sums received for loss damage waiver insurance
(4) Replacement fuel charges.
(h) A vehicle business rental permittee shall provide such
evidence of insurance coverage for the permittee's
operations on the airport as provided for on airport rental
vehicle concession holders.
(i) A vehicle rental business permittee may park, wait and
drop off or pick up a passenger only at premises or in an
azea the Airport Manager has designated for that purpose.
(j) A vehicle rental business permittee may cancel a permit
and cease operations at the airport any time on written
notice to the Airport Manager.
(k) Cancellation of a vehicle rental business permit by the
Airport Manager must be in writing and state the reasons
for the cancellation. Reasons for cancellation aze: 1) if the
Operator should breach or fail to perform any of the terms,
covenants, or conditions of this section or any regulations
adopted relating to this section; 2) if the Operator should
default in or fail to make payments at the times and in the
amounts required under this section or any regulations
adopted relating to this section; 3) If the Operator should
f..il to abide by all appLcable la:=.~s, er~._ir:a_nces, rules a.^.d
regulations of the United States, State of Alaska or the City
of Kenai. A permittee may appeal a cancellation to the City
Council by filing a written notice of appeal to the City Clerk
within thirty days notification of cancellation. KMC
14.20.290 shall govern the procedure of such an appeal.
(I) The City Manager may, pursuant to KMC 21.05.030,
establish rules, regulations and permit conditions regarding
an off-airport vehicle business permit.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this _
day of 2003.
John J. Williams, Mayor
Ordinance No. -2003
December 12, 2002
Page 4 of 4
ATTEST:
Carol L. Freas, City Clerk
Introduced:
Adopted:
Effective:
(12/ 12/02 sp)
--
Suggested by: Council
CITY OF KENAI
ORDINANCE NO. -2002
AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ESTABLISHING
A RENTAL CAR TAX OF 10% WITHIN THE CITY OF KENAI.
WHEREAS, the city of Kenai currently does not have a rental car tax; and
WHEREAS, a rental car tax would provide needed revenue to the general fund of the
city of Kenai; and
WHEREAS, many communities in Alaska and other states impose a rental car tax to
help fund operations; and
WHEREAS, Title 29 of the Alaska statutes authorizes home rule municipalities to
impose a rental car tax.
NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI,
ALASKA that KMC 7.40 entitled Rental Car Tax is adopted as shown in Attachment A.
PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this _ day of
2003.
ATTEST:
Carol L. Freas, City Clerk
John J. Williams, Mayor
Introduced:
Adopted:
Effective:
(12/12/02 sp)
7.40 Rental Car Tax
7.40.010 Short title.
This chapter may be cited as the "Kenai Rental Car Tax." ordinance.
7.40.020 Use of funds.
All moneys accumulated under the terms of this chapter shall be deposited by the Finance
Director in the general fund of the City of Kenai.
7.40.030 Levy of charge.
A consumer's rental caz tax of 10% is levied on rental sales of motorized passenger vehicles
made in the City. Normally the burden of this charge rests upon the consumer.
"Rental sales" means the value of all charges incurred by the renter, other than the tax prescribed
by this chapter, for the use of a motor vehicle, regardless of whether paid ir. the form of money,
property, or services, except for only the following items if sepazately stated on the rental
contract or other document invoicing payment:
a. Fees from the sale of automobile. liability insurance, loss damage waiver insurance, and
personal accident insurance;
b. Parking tickets;
c. The amount of any sales tax, so-called "luxury tax," consumer excise tax, sales tax, or other
similar tax imposed by the United States, the State of Alaska, or the Municipality;
d. Payments received by the rental agency from the renter or the renter's insurance provided for
damage to a motor vehicle when the damage was incurred during the rental neriod;
e. Personal property other than items that are permanently affixed to the motor vehicle.
Personal property does not include pickup truck shells or campers mounted on the motor
vehicle, or trailers designed, constructed, or used primarily for dwelling;
f. Fueling charges.
7.40.040 Tax exemptions.
a. The following motor vehicle transactions are exempt from the tax levied by KMC 7.40:
1. Fees and costs paid directly by the United States or State of Alaska or political
subdivisions of the State of Alaska insofar as they are immune from taxation; or
2. Fees and costs paid for the rental or lease of a motor vehicle subsequent to the first 30
consecutive days under a single contract; or
3. Fees and costs paid for the rental or lease of a motor vehicle under any financing lease,
including direct financing leases and sales-type leases.
b. Aright of reimbursement to the person renting the motor vehicle from the person or entity
entitled to the exemption does not constitute a direct payment.
Ordinance -2003
Attachment A Page 1 of 5
_-
c. Fees and costs received by a person who rents or leases a motor vehicle to a rental agency for
re-rent or re-lease by the rental agency for re-rent or re-lease by the rental agency are exempt
from the tax levied by KMC 7.40.
7.40.050 Form of return.
On forms famished by the City, the seller shall famish the following information, sign the form
and certify that it correctly stated the information purportedly set forth:
a. Total rentals;
b. A substantiation of sales exempt from the chazge by virtue of KMC 7.40.030.
c. The amount of the rental car tax due;
d. Such other inforrtatlon as may be reasonably required;
e. Rental caz tax forms and their contents shall be confidential and shall not be disclosed by the
finance department except:
1. In connection with efforts by the municipality to collect the chazge;
2. In response to a subpoena issued by a court of record, state agency or board;
3. In connection with legislative inquiry specifically authorized by the Council;
4. In connection with municipal audits for the purposes of verifying municipal accounting
practices;
5. In compilation of statistics and studies by the finance department for public distribution,
so long as information from individual businesses is not identifiable as to source.
7.40.060 Registration of rental agencies.
a. Each rental car agency conducting business with the City of Kenai shall register with the
Finance Director on a form provided by the department not later than thirty (30) days after
the effective date of this ordinance. A rental agency commencing operations after the above
date shall register with the Finance Director on a form provided by the department before
such rental aeencv rents or leases a motor vehicle.
b. A rental agency engaging in business at more than one location within the municipality shall
list each location on their registration application.
c. A registration application shall contain the rental agency's:
1. Registered and business name;
2. Physical addresses and locations at which it conducts business;
3. Mailing address;
4. Registered address;
5. Form of business organization and Alaska business license number;
6. All motor vehicles owned or controlled by the rental agency as of the date the registration
application is filed, including all motor vehicles for which the rental agency has entered
into a contractual arrangement, written or oral, to acquire the vehicles but has not yet
taken physical control of the motor vehicle; and
7. Such other information as the department may require.
d. Upon receipt of a properly completed application, the Finance Director shall, without chazge,
issue a certificate of registration to the rental agency.
e. A rental agency shall prominently display its certificate of registration to its customers.
Ordinance -2003
Attachment A Page 2 of 5
f If any of the information required by subsections (c)(1) through (c)(5) of this section
changes, the certificate of registration shall automatically expire and, within ten (10) days
thereafter, shall be surrendered along with all copies thereof, to the Finance Director for
cancellation and issuance of a new certificate.
7.40.070 Procedures on delinquencies.
a. Penalty and Interest.
1. If the seller does not file the proper forms and remit the rental car tax then due on the
dates designated above, a penalty equal to five percent of the delinquent tax, but in no
event less than twenty-five dollazs ($25.00), shall be added to the charges for the first
month or any part thereof, and an additional five percent shall be added to the charges
due for each month or fraction thereof for delinquency until a total penalty of fifteen (15)
percent has accrued. It shall be assessed and collected in the same manner as the charges
as assessed and collected.
2. In addition to the penalty provided in subdivision 1 of this subsection, interest at the rate
of ten percent (10%) per yeaz on the delinquent charges from the date of delinquency
until paid shall accrue and be collected in the same manner as the delinquent charges are
collec±ed.
b. Written demand and additional procedures.
If a seller fails to file the return or make the remittance in accordance with KMC 7.40, the
Finance Director shall make written demand upon the seller, mailed to their last known
address, for submission of the return and/or remittance. In the event of noncompliance with
the demand, the Finance Director may do any or all of the following procedures:
1. Violation. File a complaint against the seller in the district court for violation of KMC
7.40 with penalties upon conviction not to exceed a five hundred dollar ($500) fine; and
2. Civil Action. Make a rental caz tax assessment against the seller, with the assessment
based upon an estimate of the gross revenue received by the seller during the period and
institute civil action to recover the amount of the assessment pb!s any penalties, interest,
costs and attorney's fees. The estimate of gross revenue shall be derived from past
returns of the seller, the general economic level of the business community and, if
available, returns of compazable businesses.
7.40.080 Period of Limitation.
The amount of any charges imposed under this chapter may be determined and assessed at any
time within a period of three yeazs after the tax became due and payable. The period shall begin
on the date when a return is required to be filed. Where no return has been filed, then the period
does not begin to run until the discovery of the delinquency occurs. No suit or other proceedings
for the collection of the charges shall be begun after the expiration of the period.
7.40.090 Rules and regulations.
The Finance Director shall from time to time cause to be promulgated rules and regulations as
aze necessary and advisable to provide for the application and interpretation of this chapter and
to submit them to the Council for its adoption or rejection, and to cause to be provided methods
Ordinance -2003
Attachment A Page 3 of 5
and forms for reporting and collecting the charges in accordance with this chapter and
regulations.
7.40.100 Record keeping.
A seller shall retain for a period of three (3) years all of the rental car tax returns, reports, forms,
records and supporting schedules as may be required by the City.
7.40.10 Addition and identi£acation of tax.
A seller shall add the amount of the rental caz tax levied in KMC 7.40 to the selling price. The
charge shall be stated separately on any sales receipt or slips, rent receipts, charge tickets,
invoices, statements of account, or other tangible evidence of sale. The rental caz tax(s) are
exempt from the City sales tax provisions.
7.40.120 Rental car tax audits.
a. Any seller who has established a rental car tax account with the City, who is required to
collect and remit the rental car tax, or who is required to submit a rental car tax return under
the provisions of KMC 7.40 is subject to a discretionary rental caz tax audit at any time. The
purpose of such an audit is to examine the business records of the seller in order to determine
whether appropriate amounts of rental car tax revenue have been collected by the seller and
remitted to the municipality.
b. The Finance Director shall be responsible for directing that rental caz tax audits take place
and for selecting the particulaz sellers whose business records will be audited.
c. Rental caz tax audits of seller's business records may be accomplished by either an employee
of the City of Kenai Finance Department or by an individual or firm under contract with the
municipality.
d. Sellers selected for a rental caz tax audit will be notified by letter and will he requ;red ro tneYr
with, and make available for inspection and copying all pertinent business records including
income tax returns that may be required for the prior three fiscal years for examination, to the
finance department employee, or contractor conducting the audit, within thirty (30) days of
notification. Under extenuating circumstances, the Finance Director may grant an extension
of time for compliance at the director's discretion.
e. After completion of a rental caz tax audit, sellers subject to the audit will be notified of the
results of the audit by certified letter. If the audit has resulted in an additional rental car tax
to the municipality, the additional rental caz tax must be remitted to the municipality within
fourteen (14) days after the receipt of the letter, or the additional rental caz tax will be
considered delinquent and subject to the procedures on delinquencies outlined in KMC 7.40.
If the audit has resulted in a refund due the seller, the refund will be made to the seller within
fourteen (14) days, or applied to the seller's account, at the seller's option.
f It shall be the seller's responsibility to maintain business records in sufficient detail to
substantiate all information reported on the rental car tax returns, including rentals qualifying
as exempt from the levy under the provisions of KMC 7.40. If insufficient detail exists
within a seller's business records to substantiate the rental exemption, such rents may be
Ordinance -2003
Attachment A Page 4 of 5
reclassified as taxable at the auditor's discretion and subject to the rental caz tax collection
and remittance.
g. Any seller notified of an additional rental caz tax liability as a result of a rental caz tax audit
shall have the right to appeal the additional liability to the Council. Such an appeal must be
filed with the municipal clerk within thirty (30) days of notification by letter of the liability.
If an additional liability is appealed, the accumulation of penalties and interest under the
provisions of KMC 7.40 will be suspended on the date the appeal is filed with the municipal;
if the appeal is subsequently denied by the Council, all such penalties and interest will be
retroactive back to the original date of notification of additional liability by letter.
h. Any seller refusing to comply with the provisions of this section shall be subject to any or all
of the procedures on delinquencies as outlined in KMC 7.40, including the filing of a
complaint against the seller in District Court.
Ordinance -2003
Attachment A Page 5 of 5
KENAI CITY COUNCIL MEETING
DECEMBER 18, 2002 /~
PAGE 11
Swarner stated she felt this should be the next street to be paved but she didn't want
to get residents' hopes up if funding is not available. Williams stated he wanted all of
the resolutions to include the same wording, i.e. that the final project is contingent
upon receiving state funding. Williams also noted he would insist all right-of-ways be
finalized and all owners of properties with right-of--way issues be informed that parts
of their properties will be replatted, etc. Kornelis noted, he had included additional
funding in his budget for right-of-way dedication, etc. Council also indicated their
preference the resolution for the public hearing be held as long as allowable to be
closer to the date when it will be known the amount of funding to be received from the
Legislature.
MOTYON:
Councilman Bannock 14IOF/ED to dvect administration to continue as outlined in the
memorandum (included in the packet) and Councilwoman Porter SECONDED the
motion. There were no objections. SO ORDERED.
I-6. Discussion -- Rental Car Fees and Taxes
Councilman Bannock requested to step down from the dais to speak to the issue and
permission was granted.
Duane Bannock, Kenai Chrysler Center -- Bannock referred to the City Attorney
memorandum included in the packet, along with two proposed ordinances; one for an
off-airport rental car fee grid orie for a ciiy~itic 'feritai car tax.
Bannock noted his comments were in regard to anoff-airport rental car tax. He
stated, it was his opinion this issue came to the council at this time due to non-truth.
Bannock explained, the "Great Alaska Car Company," is anoff-airport caz rental
company and is a division of the Kenai Chrysler Center and does lots of business in
Kenai Peninsula, Anchorage, Homer, Seward and Juneau. Information brought to the
Commission indicated the on-airport vendors pay tax on rentals and the off-airport
companies do not. He added, the on-airport companies have a lease agreement with
the city which stipulates their rent is based on $1.65/sq. ft. for booth space and ten
percent of the gross revenues in rentals. He added, he believed there was a dramatic
difference between rent and fee.
Bannock continued by noting the Airport Commission has been led to believe this is
an unfair fee that is charged to the concessionaires (on-site car rental companies) and
he believed it is not a fee, but a rent and it is paid from the profits. He added, the
Airport Manager has suggested new sources of revenue source need to be found and
they were identified as a parking lot fee (the Manager's recommendation was to not do
anything with the parking fees because enplanements are down due to ERA Aviation's
rates and that travelers may decide not to use the airlines and drive if additional costs
KENAI CITY COUNCIL MEETING
DECEMBER l8, 2002
PAGE I2
are required) and off-airport car rental fees because they use the parking lot for
storing cars, using the facility for free and taking revenue from the people paying rent.
Bannock distributed a rental receipt from Hertz and noted, they were not paying rent,
but charging their rent to the client. He suggested other businesses, i.e. hotels,
taxicabs, etc. might want to charge a similar fee to recoup their costs.
Williams stated, in the traditional sense of the word, sent is something you pay for the
use of a space, i.e. office, storefront, etc. The city rents a square foot area to a car
rental company. He added, he differed with Bannock's comment the airport
concession fee is rent because rent, in a traditional sense, drawn from the gross
revenues, is not rent for a traditional space, i.e. squaze foot, storefront, etc., it is a fee
being charged against the gross revenue of the car rental. Williams continued, he also
believed adnninistration understands what t_he airport concession? fee is as being stated
as the ten percent of gross rent.
Attorney Graves explained, the terminology in the lease agreement is used
interchangeably at various points. However, one section refers to it as rent. He
referred to the concession agreement and noted paragraph 2 talks about the ten
percent fee; paragraph 1 speaks of the $1.65/sq. ft.; and paragraph 3 states, "...in
addition to the rent specified above, lessee agrees to pay ~c'." He added, though the
terminology is lose, he and the Finance Director historically consider it to be a rental
package. Finance Director Semmens agreed and added, he believed the ten percent
clearly, under the lease, is part of the rent. He noted, it is another method of paying
.,.
Bannock stated the suggestion that it is unfair to the on-site concessionaires to pay
the fee is wrong. Porter stated she felt it was a fee the council is chazging a person
who is renting a car and the money would come back to the city.
Swarner asked how and what facilities the Great Alaska Car Company uses at the
airport. Bannock answered, the parking lot (leaving a car in the no-fee parking lot for
a renter) and the renter dropping the car off in the parking lot when leaving on a flight
from the city. He added, there are times the cazs aze not picked up and are left in the
pazking lot and should be towed. Porter asked if the cars are ever towed and Bannock
answered, not since 1997. Porter noted, if the city can't enforce the towing of vehicles,
how could the off-airport car rental businesses be tracked. Williams noted, the
memorandum indicated the fee would be collected by the city because the borough
would not collect it.
Bannock stated, his company was taking advantage of the free public parking lot. He
added, forget about free and suggested the city initiate a pay parking lot so if he wants
to leave a car there he pays. Williams noted, the parking lot clearing was begun in
order to plow the parking lot in the winter.
KENAI CITY COUNCIL MEETING
DECEMBER 18, 2002
PAGE 13
Councilman Moore asked how his customers get the keys to the vehicle that is left in
the parking lot, i.e. is he using the airport to transfer keys to the vehicle. Bannock
answered, on occasion they use the employees at ERA for key exchange. He added,
the airport is not giving anything up for him to be able to do what he does.
Moore asked where the rental paperwork is signed, etc. and Bannock noted, they use
credit cards and e-commerce. Williams noted, it is a policy call for the council
whether to implement a fee. Porter stated she didn't think she could support the
ordinance because of the enforcement of it. She added, she didn't think the airport is
big enough to deal with it.
Bannock noted in the last Airport Commission meeting, the Commission understood
the issue would r_ow go to the council. Acting Airport Manager Bondurant noted, the
Commission would be discussing the ordinance at their next meeting. Bannock
added, the Commission thinks they aze recommending Option I.
Swarner asked how many other rental car companies is he awaze of that operate on
the Peninsula and Bannock answered, he was not sure. Williams suggested finding
,, out if there are other off-airport caz rental companies using the airport and how
difficult it would be to enforce the ordinance. He added, he believed the Commission
should discuss it further as well as they had not seen the ordinance draft.
Porter stated she was bothered by the airport concession fee on the Hertz receipt. She
..Cted, it T/as the presen tatii~ii of the wGrdmg. ~vv~iiiiaaTaS rioted it IS nt'it the City'S
responsibility to dictate how the individual companies identify charges in their billings.
He added, it is a method Hertz Rent-a-Car uses to track the costs on behalf of the
customer. Bannock questioned what the gross amount is on the billing and what
amount was due to the city.
Williams directed the issue return back to the Airport Commission for further
discussion and the City Attorney examine the contracts to see if wording changes aze
needed and allow administration to discuss the interpretation and decide whether they
are agreeable to the funding as it applies. Swarner noted the receipt does not refer to
an ACF (airport concession fee}. Bannock noted, that is the Commission's concern:
the on-airport concessionaires pay it and his company does not. Bannock suggested
the wording be revenue enhancement. He added, there aze no costs going up
associated with off-airport rental car parking and it is free money.
Porter asked if there are other companies billing for an airport concession fee and
Williams stated he believed the concessionaires should have broad discretion of what
they want to call it as one company may be called something else by another
company. He noted, this company is using that wording to define that charge and it
could be defined differently by another company.
KENAI CITY COUNCIL MEETING
DECEMBER 18, 2002
PAGE 14
Graves added, he and Snow discussed including language of how fees can be
represented on billings and how they are charged, and will be discussing it further
when the lease agreements come up for renewal. Porter asked if an addendum can be
added to the lease if it is an issue and Graves answered, an addendum is a
modification to their contract and requires their consent. He added, there is an issue
of whether they have been paying the proper gross and Semmens is investigating it.
Moore stated he would concede the ten percent is part of the rent. Williams noted, it
is a payment in lieu of rent based on the special area in which the service is being
rendered, i.e. the airport. Bannock noted, his company is not afforded pazking spaces.
He added, the advantage of conducting business from the airport are physical
presence, space, parking space by the back door and parking lot spaces. Williams
suggested, they could rent parking spaces at the rental car parking lot. Bannock
noted, discussion at the Commission meeting indicated they could rent along-term
parking permit, however the Airport Manager didn't feel they would ask for that.
Williams asked if there is area in the rental parking lot to rent spaces and Bondurant
answered yes. Williams asked Bannock why they haven't asked to rent spaces in the
rental car parking lot and Bannock answered he didn't think it was consistent with
the Airport Master Plan. Williams noted, the Master Plan could be amended.
Bannock stated he would love to parking lot spaces at the airport. Williams asked if
Bannock has approached the Airport Manager to this regard and Bannock stated it
had not been a necessity. Bondurant noted, the concessionaires are given 15 spaces
wit~7 their agt'Pement and Can makes arran gep1entc to rent add2trCna1 ~paCeS. ix/y7,lia.;a
stated the city would rent Bannock spaces for ten percent of their gross and Bannock
stated it wasn't necessary as he could park for free at this time.
Williams noted the council could direct that no rental car company park in the free
parking lot and only in the rental car parking lot and be charged ten percent of their
gross. Bannock stated he is willing to do that. Porter noted, the city is not dealing
with only the Great Alaska Car Company and should make the decision on the
problem on what's good for the airport and the easiest to enforce without adding
personnel.
Williams noted the issue would be returned to administration and the Commission.
ITEM J: REPORT OF THE MAYOR -- Mayor Williams reported the
following:
• Councilwoman Jackman was attending the dental clinic meeting at the
Borough building and was not in attendance at the council meeting.
• Will meet with Senator Stevens on December 28.
• Sent a letter to Governor Murkowski requesting him to strongly consider
the appointment of Mead Treadwell as his replacement to the U.S. Senate.
KENAI AIRPORT COMMISSION
OCTOBER 10, 20
KENAY TY~OVI~CIL CHAMBERS
7:00 P.M.
CHAIRMAN HENRY KNACKSTEDT, PRESTO
MINUTES
ITEM I: CALL TO ORDER AND ROLL CALL
Chairman Knackstedt called the meeting to order at 7:00 p.m. Roll was taken and
confirmed as follows:
Present: Knackstedt, Bielefeld, Kleidon, Van Zee, Holloway, Haralson,
Watkins
Others Present: Councilwoman Jackman, Airport Manager Cronkhite, Department
Assistant Hams
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
YTEM 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 chazges 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-offs 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 ir. 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.
5-b. Discussioa -- 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
.~-a ~
Municipal Airport
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Camrni~ii 6-~
~ac~-
"Servivi,~t~Gr~ca.ter iCeva.a.v i "
305 N. ST. SURE 200 IQNAG 9969'
86r~EY795'i
FAX 907J?37
To: Airport Commission
From: Rebecca Cronkhite, Airport Manager
Date: October 3, 2002
Subject: Off Airport Car Rentals
Attached are the State regulations for vehicle rental businesses. Also a reply
from The Spokane airport on their policy for off airport rentals agencies.
www.ci.kenai.akus.
Pace 1 of i
Marv Bondurant
Feom: "Judy Gifford" <jgifford@spokaneairports.net>
To: <mbonourant@ci.kenai.ak.us>
Sent: Thursday, August 29. 2002 10:55 AM
Subject: Off-Airport Rental Car Operators
Good morning,
Todd passed your email on to me. At Spokane Intemaeionai we have one off airpott rental car agency. We get 10% of their
monthly gross revenues payable by the ! 0th of each month. Additionally, there is a $0.50 fee accessed per the to the airport.
Please don't hesitate to call if you have any tutther questions. 7ltank you.
ludv Gifford
Properties 8c Contracts Manager
509-455-6415
8/29/2002
~ i w>u 4z.~uu. venrcre Kentai esusmess rermit rage ~ of s
Made available by Touch N' Go S~ems,.lnc., and the
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Alaska Administrative Code.
Title 17. Transportation and Public Facilities
Chapter 42. Ted Stevens Anchorage International Airport and Fairbanks
International Airport
Section 100. Vehicle Rental Business Permit
previous: Section 95. Commercial Passenger Vehicle Permit
next: Section 105. Business Activity Permit
17 AAC 42.100. Vehicle Rental Business Permit
(a) T o operate a vehicle rental business on an airport, a person who does not have a
concession to operate a vehicle rental business in adepartment-operated terminal building
must hold a current vehicle rental business permit issued under this section.
(b) A person must submit an application for a vehicle rental business permit in writing to the
airport manager and include
(1) a list of vehicles that the applicant proposes to operate on the airport under the
vehicle rental business; the list must include the year, make, model, license plate number
and issuing state, and serial number for each vehicle;
(2) a description of the services that the applicant proposes to offer under the permit; and
(3) any application fee established under 17 AAC 42.125.
(c) The airport manager shall approve an application for a vehicle rental business permit
unless 4he manager determines that
(t) approval must be denied under 17 AAC 42.010(8) ;
http://touchngo.com/Iglcntr/akstats/AACiTitle17/Chapter042/Section100.htm 10/3/02
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(2} the proposed use would interfere with or is otherwise incompatible with the security,
safety, maintenance, or operation of the airport;
(3) the proposed use would violate applicable law, the state's obligations under revenue
bonds issued under AS 37.15.410 - 37.15.550, an exclusive righ4 the department has
granted to another person, a covenant running with the airport land, or an applicable FAA
grant assurance adopted by reference under 17 AAC 42.010(d) ;
(4} the proposed use would result in a violation of applicable law. or
(5} the proposed use is inconsistent with sound airport planning.
(d) A decision by the airport manager to deny an application for a vehicle rental business
permit must be in writing.
(e) A vehicle rental business permit is not transferable and may not exceed a term of five
years.
(f) A vehicle rental business permittee shall pay the applicable fee established under 17 AAC
42.125.
(g) A vehicle rental business permittee shall provide such evidence of insurance coverage for
the permittee's operations on the airport as the airport manager determines appropriate under
17 AAC 42.410(b) (15), considehng the number and type of vehicles covered by the permit
and the services the permittee proposes to provide.
(h) A vehicle rental business permittee may not use or operate a vehicle on the airport in
conjunction with a vehicle rental business unless the vehicle is listed on the permit and
displays the identification described in this subsection. For each calendar year and each
vehicle listed on the permit, a permittee shall, upon payment of any applicable fee established
under 17 AAC 42.125, obtain from 4he airport manager a sticker or other form of ident~cation
designated by the manager. The manager shall mail or deliver ident~cation for a vehicle only
to a person who has a permit at the airport, has paid any applicable fee, and has submitted the
vehicle information required under (b)(1) of this section for that calendar year. A permittee shall
maintain conspicuously affixed to each vehicle the current year's identification that the
manager has issued for that vehicle.
(i) A vehicle rental business permittee operating a vehicle on airport property shall keep the
vehicle in safe operating condition. The airport manager shall order a permittee to remove from
service any permittee vehicle the manager determines to be unsafe or otherwise in violation of
this section.
(j) A vehicle rental business permittee may park, wait, and drop off or pick up a passenger only
at a premises or in an area the airport manager has designated for that purpose.
(k) A vehicle rental business permittee may cancel a permit and cease operations at the airport
at any time on written notice to the airport manager.
(1) The airport manager shall, after written notice to the permittee, cancel a vehicle rental
business permit and invalidate all vehicle identfication issued to the permittee if the manager
httpa/touchngo.com/Iglcntr/akstats/AAC/Title17/Chapter042/Section100.htm 10/3/02
1 / HHG 4Z.lUU. VenlCte KenI31 business rennu rage 3 or J
determines 4hat the permittee
(1) is not in compliance with the vehice rental business permit and has not corrected the
noncompliance within 10 days after receipt of the notice; or
(2) has ceased vehicle rental operations on the airport.
(m) Cancellation of a vehicle rental business permit by the airport manager must be in writing
and state the reasons for the cancellation.
(n) An applicant or permittee may protest the airport manager's decision to deny an application
or cancel a vehicle rental business permit in accordance with 17 AAC 42.910.
Authority:
AS 02,1..5.0.20
AS 02.15.060
AS 02.15.090
AS 02.15.220
AS 02__1.5.230
AS 37.15.470
AS 37.15.540
Note to HTML Version:
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If it is critical that the precise terms of the Alaska Administrative Code be known, it is
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Last modified 8/24/2002
http://touchngo.corn/Iglcntr/akstatslAACmtle17/Chapter042/Section100.htm 10/3/02
~~ 1~~
AGENDA
KENAI CITY COUNCIL -- REGULAR MEETING
7:00 P.M.
KENAI CITY COUNCIL. CHAMBERS
http: [ / www. ci.kenai. ak.u s
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)
1. Tim Wisaiewski, Dick B:uitberg, Jack Castimore, Dale Saadahl --
Proposed Playing Field Complex/Section 36
ITEM C: REPORTS OF Bl'B ASSEMBLY LEGISLATORS AND COUNCILS
ITEM D: PUBLIC HEARINGS
Ordinance No. 1999-2002 -- Increasing Estimated Revenues and
Appropriations by $195,153 in the General Fund for Transfer to the Debt
Service Fund.
2. Ordinance No. 1980-2002 -- Replacing the Tables Referred to in the
A`, Personnel Regulations at KMC 23.55 to Establish a New Salary Structure
~f' to Comply with Minimum Wage Requirements.
3. Ordinance No. 1981-2002 -- Increasing Estimated Revenues and
Appropriations by $12,223 in the Council on Aging Fund for Purchase of
a Vehicle.
4. Ordinance No. 1982-2002 -- Amending KMC 23.30.050(d) to Allow
Management Greater Workforce Scheduling Flexibility by Changing the
Normal Work Period to Forty Hours a Week Rather Than "Forty Hours
Per Week/Eight Hours Per Day" and Allowing Management More
Discretion in Adjusting Operating Hours.
-1-
~~~ ~• 5. Resolution No. 2002-?9 -- Formally Accepting an Increase to ADEC -
Grant No. 47547 from the State of Alaska, Department of Environmental
Conservation in the Amount of $950,000 for Well House No. 4 and Water
Mains.
*Liquor License Reaewai -- Peninsula Oilers f Recreational Site --
Seasonal.
ITEM E:
1. Council on Aging
2. Airport Commission
3. Harbor Commission
4. Library Commission
5. Parks & Recreation Commission
6. Planning & Zoning Commission
7. Miscellaneous Commissions and Committees
a. Beautification Committee
b. Kenai Convention & Visitors Bureau Board
c. Alaska Municipal League Report
d. Kenai Chamber of Commerce
ITEM F: MIIQITTES
1. *Regular Meeting of December 4, 2002.
2. *Counc$ Work Session Notes of November 18, 2002.
ITEM G: CORRESPONDENCE
ITEM H: OLD BUSINESS
ITEM I:
~~~.s ~~,~ 1. Bills to be Paid, Bills to be Ratified
~'~°'~~' 2. Purchase Orders Exceeding $2,500
*Ordiaance No. 2002-1983 -- Adding KMC 7.15.035 to Allow for the
Solicitation and Award of Construction Contracts by Competitive Sealed
Proposal.
4. *Ordiaaace No. 2002-1984-- Amending KMC 14.20.280(c~ to Remove
the Requirement that Notification of Public Hearings Be Sent Via
Certified Mail.
prOcee~ 5. Discussion-- Report to Council/McCollum-Aliak Drive Proposed LID
Discussion -- Rental Car Fees and Taxes
-2-
YTEM J: REPORT OF THE MAYOR
ITEM K: ADMIPIISTRATION REPORTS
1. City Manager
2. Attorney
3. City Clerk
ITEM L•
1. Citizens (five minutes)
2. Council
EXECUTIVE SESSION -- None Scheduled
YTEM M: ADJOURNMENT
3