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HomeMy WebLinkAbout2005-07-26 Airport Commission Packet, , / l ^ ~ . ^ . . ^ * . ~ Kenai Munici al Air ort ~ p p Supplemental Planning Assessment Airport Commission Work Session - July 26, 2005 ~ Proposed Agenda 1. Meeting Agenda/lntroductions - Tom Middendorf 2. Mission/Vision Status - Tom ~lliddendorf 3. Airport Leasing Recommendations - Steve Pavish 4. PreliminaryAviation Land Use Plan - Tom Middendorf ~ 5. Recap and Next Steps - Tom Middendorf • August 25 Meeting • September Public Meeting t~ ~f L Kenai Municipal Air ort p Supplemental Plannin Assessment ~ Airport Commission'Work Session - Jul 26 2005 Y ~ Proposed A enda g 1. Mee.ting Agenda/lntroductions - Tom Middendorf 2. Mission/Vision Status - Tom Middendorf V. I"1il FJVi t L~GJiI ly ~GVVtrI Ilri IGI IUQLIVI IJ - VIGYG IDQVIJI I 4, PreliminaryAviation Land Use Plan - Tom Middendorf ~ ~ 5. Recap and Next Steps - Tom Middendorf • August 25 Meeting • September Public Meetin g ~~ _ Kenai MunicipalAirport Supplemental Planning Analysis Strate ic Plannin g g Sam le Mission and Vision St p atements This document contains representative samples of mission statements and vision statements from various size airports within North America. As can be noted in the document, some mission statements are very broad, containing on one sentence, while others are longer, more detailed and address specific issues. Most mission and vision statements reproduced in this document are supported by the identification of strategies or goals that more fully state the long-term results that management expects to achieve. Objectives are also usually identified as specific accomplishments to be achieved along the way to obtaining the long-term goals that support both the mission and vision statements, The overall conclusion one may draw from reviewing these various statements of policy is that each organization constructs its mission and vision statements to meet their individual needs. In some cases, such as with the Columbus Airport Authority, which operates Columbus International Airport, and recently, in a controversial action, took over control of Rickenbacker International Airport, it was important to clearly separate the mission of each individual ai ort. In contrast ~ the Nashville Airport Authority has a very general and succinct one sentence mission staternent~ However, the entire Nashville strategic plans runs to over 100 pages of' detailed supportin statements. Also note that Calg International Ai ort also has g ~'Y rp a very general and succinct one sentence mission statement, but it is more fully articulated by a statement of "Key Strate ic ~ ~ • ,~ g Dlrections. TED STEVENS ANCHOR.AGE INTERNATIUNAL AIRPORT Air Cargo Vision Statement To provide world-class air cargo infrastructure to retain, expand and attract international and domestic cargo carriers, freight forwar~ers, consolidators, brokers, logistics providers, and shippers; along with value added services to emphasize growth and development of additional cargo transit and transfer activities. CALGARY INTERNATIONAL AIRPQRT Vision Statement To be recognized by our customers as an international leader in airport excellence and innovation Mission Statement The Calgary Airport Authority, in partnership with others, will add value to the communi b providin uali ai ort services and f''' ' ~ ~ y g 9 ~Y ~p acilit~es and promot~ng economic development and community well-being. 1t1'A Air ~1~ransportation Consultancy July 21, 2005 Kenai Munici~al Airport Supplemental Planning Analysis Key Strategic Directions • Maximize our potential as a passenger and cargo inter-modal hub airport • Pursue service, value and operational excellence in cooperation with all airport partners ~ Develop airport lands for uses which are compatible with airport operations and add value to the airport • Promote economic growth through aviation, aerospace and tourism development and other transportation related initiatives • Develop and operate Springbank Airport as a quaiity general aviation airport • Partner with our community to develop programs that enhance quality of life COLUMBUS REGIONAL AIRP~RT AUTHORITY Mission: The Columbus Regional Airport. Authority is committed to maintaining a positive image reflective of the community we live in. The Airport Authority exists to provide high-quality, competitively priced air service to Columbus and the Central Ohio region. This includes the proactive development of Rickenbacker International Airport for domestic and international air cargo, intermodal rail and trucking services, and both passenger and corporate aviation services, Other projects include the promotion and expansion of the Foreign Trade Zone and continued economic development of the region. Core Values: Appreciation of Others, Professionalism. Integrity, Excellence. These values are the foundation from which we conduct daily business and interact with tenants, customers and the traveling public. EDMONTON AIRP4RTS Vision We are industry leaders in delivering outstanding airport and aviation services. Mission We manage airports in a safe, secure, and commercially focused manner with emphasis on customer satisfaction, Through optimal air service, facilities and resources, we stimulate regional/provincial economic growth. Core Values Safety, Quality, Integrity and Teamwork KPA Air Transportation Consultancy 2 July 21, 2005 Kenai Munici al Air ort Supplemental Planning Analysis Core Business Airport Management Key Success Drivers Business Leadership To achieve and sustain a financially strong, competitive business advanta e b develo in entrepreneurial, innovative and best ractices culture. g Y p g an P Customer Satisfaction To ensure that all airport services are provided efficiently and effectivel b a skill motivated ETeam workforce that continuous ' y Y ed and ly ~mproves customer value and satisfaction. Stakeholder/Community Relations To develop and maintain the relationships, partnerships, networks and re utation nece succeed, p ssary to NASHVILLE INTERNATIONALAIRPORT Mission Statement The Authority's mission is to give Middle Tennessee its heartbeat and foster its c '' advantage as the region's premier hub for trans ortatio ompetitive p n and related businesses. Core Values : Entertaining Our facilities should have a beat and rhythm and exem li our ass' • whil ' ~ ~ p~Y p~on for customer service e being a unique and v~brant place through which to travel. Srrategic Priority Win return customers by making the terminal and other public areas excitin laces t visit both before and after securi , and b ex erimenti ' g p ~ ~Y y p ng with new ways to deliver the best customer service quality, especially in light of security requirements, Action Strategies Require customer service training for Authority and tenant emplo ees. Improve terminal concessions b i ' • y y mproving quality, variety, convenience and appearance. Add customer service performance targets in future concession contracts and develo process to assess the performance of such contracts. p a Increase visual and audio exposure of Middle Tennessee's role as a music indust lead ry er. KPA Air Transportation Consultancy July 21, 2005 3 _ Kenai MunicipalAirport Supplemental PlanningAnalysis Strategic Priority Win the excitement of the airport community for Middle Tennessee's incredible business, cultural, sports and entertainment venues. Action Strategies Increase the displays of Middle Tennessee's assets, Make information easily visible to all travelers, not only the ones who deplane at Nashville International Airport. Core Values : Exercising Our most important assets - our employees and facilities - should be kept in top shape, Our employees should have the skills to perform their duties flexibly to meet the highest professional and ethical standards. Our facilities should be optimally managed, made secure and maintained for their entire life cycle. Strategic Priority Develop a contingency planning mindset that anticipates and adapts to the turbulence and policy changes in the aviation industry. Action Strategies Provide ongoing tailored training to all employees and stakeholders, through in-state and out-of-state educational resources. Periodically review and make improvements to our performance-based management incentive program. ~ Delegate authorifiy as far down in the organization as possible to create a culture of responsibility and accountability. Develop contingency plans. Strategic Priority Foster an asset management, life-cycle approach in construction and operations to achieve secure, flexible and convenient facilities. Action Strategies Procure and install all necessary security equipment, and ensure effective utilization of pilot programs and other innovations. Review and analyze construction and operations activities, Core Values : Enterprising We should have an entrepreneurial mindset that emphasizes innovation and financial eff ' ~ciency. KPA Air Transportation Consultancy 4 July Z1, 2005 Kenai MunicipalAirport Supplemental Planning Analysis Strategic Priorily Operate airports and provide services in the most cost-effective manner. Action Strategies Remain lower-cost. Be measurement-based. ~ Strategic Prioriry Operate greater financial flexibility, Action Strategies Renegotiate airline lease agreements. Seek additional non-aviation revenues. Strategic Priority Serve Middle Tennessee's many entrepreneurs and visitors. Action Strategies Identify passenger route service gaps and aggressively fill them. Foster links with tourist operators and support tourist infrastructure. Create partnerships with key economic sectors, such as healthcare, distribution and . music. Serve new cargo customers with service to Southeast Asia, Europe and Latin America, Grow corporate aviation business in a time-sensitive manner, Core Values : Intersecting We should be the center of Middle Tennessee's ideas and activities, and support its communities. Strategic Priority Develop hub services on airport and adjacent to the airport. Action Strategy Develop a better business center and meeting place(s) in the terminal. Consider a self contained or free-standing center at other airport locations outside the terminal area, Develop office space on airport property. KPA Air Transportation Consultancy 5 luly 21, 2005 Kenai MunicipalAirport _._____ Supplemental PlanningAnalysis Strategic Priority Foster inter-modal transportation. Action Strategies Encourage air cargo service. Foster improved highway access to the terminal, air cargo and General Aviation areas. Study improved ground, rail and transit links to the airport. Strategic Priority Take advantage of our status as a Southwest Airlines "Focus City." Action Strategies Market to transfer pass engers. Utilize effective marketing programs to encourage air travelers to use Nashville International Airport. Strategic Priority Support Nashville International Airport and John C. Tune Airport's roles as hubs for corporate aviation. Strategic Priority Support community events and institutions directly or indirectly related to our mission. NORFOLK INTERNATIQNAL AIRPURT Mission The mission of the Norfolk Airport Authority is to manage the operation, maintenance, development, and marketing of Norfolk International Airport to serve the air transportation needs of southeast Virginia and northeast North Carolina. TAMPA INTERNATIONAL AIRP4RT Hillsborough County Aviation Authority's vision for airport development is to exceed the customer's satisfaction by makin~ Tampa International one of the most efficient, safe, convenient and cost competitive air cargo centers in the world. The air cargo services and facilities required to achieve this vision will be provided in an efficient and timely manner, in keeping with the physical and operational quality existing throughout the HCAA airport system. KPA Air Transportation Consultancy 6 July 21, 2005 Kenai Munici~alAirport Supplemental Planning Analysis KELLYUSA Mission Statement The mission of the Greater Kelly Development Authority is to own, operates and develop KelIyUSA to the immediate and long-term benefit of San Antonio, creating quality jobs and generating economic growth in South Texas. Vision Statement The Vision of the Authority is to develop KelIyUSA into the Port of San Antonio; a multi-modal logistics hub with an industrial, heavy lift international air cargo airport and an inland rail port with multi-modal, international logistics and manufacturing components. Core Competencies In order to thrive in today's marketplace, that is characterized by rapid and continuing change, the Authority must have a highly skilled, multi-disciplined professional staff which excels in the following: l. Asset Management 2, Marketing and International Business Development 3. Real Estate Development 4. Air and Rail Port Development and Operations PORT OF HUNTSVILLE Mission Statement The mission of the Port of Huntsville is to provide quality multi-modal transportation services to a diverse regional customer base and to stimulate the economic growth and development of the Tennessee Valley region. KPA Air Transportation Consultancy ~ July 21, 2005 Kenai Munici al A,ir ort Supplemental Planning Analysis ~~. . . , , _ Kenai Municipal Alrport Mission and Vision Statem ents INTRODUCTION The purpose of this action is to have the City Council ado t a Mission Stateme p nt, supported by a statement of "Key Strategic Directions," and Vision Statement for the Kenai Municipal Ai ort as a reflection of Ci olic , ~ ~Y P Y Airports represent different things to different people. To most, airports are where one oes to catch an g airplane to begin most long distance business or vacation trips. To others, the local ai ort is a base to ~ store and fly their personal airplane or to learn how to fly, And for others, the airport is a fuel sto on the way to somewhere else, The milit and fli ht scho 1 p . ~'y g o s often use local airports to practice takeoffs and landings, Clearly, airports play a varlety of roles in our state transportation system. In order to move forward with the strategic planning process, and the creation of an airport business lan it is important for the Ci of Kenai to have a clear un p~ ~Y derstanding of the role the Kenai Municipal Airport currently plays as a transportation resource for the community. It is also just as important to have a clear vision of how the airport should develop over time in order for it to remain an asset to the ci , ~ To this end, the consultant team involved in the Kenai Municipal Airport - Su lemental Plannin Anal sis would like to recommend ' ' • •• pp g Y~ that the City Councll adopt an Airport Mission Statement to infer some order of priorities in how services are delivered at Kenai Municipal, and a Vision Statement as description of a preferred future for the airport. BACKGROUND A strategic plan is a method of determining the most effective use of an airport's investment and ca ital opportunities. It is a document that sha es all oth r p p e plans: facilities development, personnel, financial and so on. The underlying framework of the s~ategic plan is to assess the ai ort within the context ~ of the External Environment, Internal Activities and Financial Targets. The External Environment relates to the airport's business environment, the trends within the aviation industry, the airport's customer base and root-cause analysis; that is, understandin the causes of trends g that have been identified. Internal Activities include operating activities, organization, strate and staff. gY Financial Targets relate to return on investment, operating margins, capital intensi revenue owth and ~ ~ ~ cash flow. Simply put, strategic planning deternunes where an organization is going over lon -term, how it's oin g g g to get there and how it'll know if it got there or not. The focus of a strategic plan is usuall on the entire Y organization, while the focus of a business plan is usually on a particular service or pro am. ~ Keiser Phillips Associates 1 July 22, 2005 Kenai Munici al Air ort Supplemental Planning Analysis PURPOSE The purpose of preparing a strategic plan is to: 1, Clearly de~ne the purpose of Kenai Municipal Airport and to establish realistic goals and ob'ectives J consistent with that mission in a defined time frame within the airport's capacity for implementation, 2. Cornmunicate those goals and objectives to the community. 3. Develop a sense of ownership of the plan. 4. Ensure the most effective use is made of the airport's resources by focusing the resources on the ke Y priorities. 5. Provide a base from which progress can be measured and establish a mechanism for informed chan e g when needed. 6. Building a consensus about the direction the airport is taking. In summary, a strategic plan provides for clearer focus for the Kenai Municipal Airport and provides a bridge between the Kenai Airport staff, City staff and the City Council. MISSION STATEMENT At its most basic, the mission statement describes the overall purpose of Kenai Municipal Airport. Its purpose is to clearly separate the mission of the Kenai Municipal Airport from other airports in the KPB. It is also often helpful to clarify the mission statement by a list of key strategic directions. The pu ose of ~ developing a list of key strategic directions is to infer some arder of priorities in how services are delivered, The recommended Mission Statement for Kenai Municipal Airport: The primary mission of Kenai Municipal Airport is to be the commercial and business air transportation gateway to the Kenai Peninsula Borough and West Cook Inlet. The recommended list of Key Strategic Directions: • Maximize Kenai Municipal Airport's potential as a scheduled passenger, air taxi and air car o g airport • Pursue service, value and operational excellence in cooperation with all airport stake-holders ~ Promote community economic growth through encouragement air charter activity, floatplane facility improvements and tourism development and other transportation related initiatives ~ Develop airport lands for uses which are compatible with airport operations and add value to the airport ~ Partner with the community to develop programs that enhance economic growth and quality of life When creating this mission statement and list of key strate~ic directions, consideration was iven to the g airport's services, markets, values, concern for public image, stakeholders and priorities of activities for survival and growth. Consideration was alsa given to the importance and convenience having consistent and frequent scheduled air service in Kenai as an altemative to a three to four hour drive to Anchora e. g Keiser Phillips Associates 2 July 22, 2005 Kenai N~unici al Air art Supplemental Planning Analysis VISION STATEMENT A Vision Statement is a description of a preferred future. It draws on the beliefs, mission and environment of an organization. ' The recommended Vision of Kenai Municipal Airport is: A strong air transportation hub with scheduled air carriers serving multiple destinations ~ supported by a well managed landside development program that will generate long-term revenue streams and protect the airport environs from encroachment of incompatible land uses, Ideally, this vision statement will identify a direction and purpose for Kenai Munici al Ai ort and alert p ~ the community and stakeholders to needed change, Keiser Phillips Associates 3 July 22, 2005 KENAI ~IUNICIPAL AIRPORT ~~ ~ ~ ~ _~ Suppiementai Planning Assessment ~ Phase 2: Airport Land Use Plan AIRPORT LEASING PR~GRAM IAIRPQRT REGULATI4NS CHANGE IMPLEMENTATIQN DISCUSSiON July 26, 2005 Airport Cornmission Work Session I have completed most of the research and analysis work related to the City of Kenai's airport land leasing program and airport regulations. The next major step is impiementation of changes. However, we cannot progress to that stage without some specific guidance from the City Council and Airport Commission. The purpose of this issues paper is to stimulate open discussion at the July 26, 2005 Airport Commission work session and obtain decisions, at least in concept, as to the direction we should take in developing the implementation details. Stephen L. Pavish July 25, 2005 1. Airport Reserve. ln past meetings, we have recommended the establishment of an Airport Reserve of sufficient size to meet the future physical and economic needs of the airport. L~and within the Reserve would be made available for lease, but never sold. Airport tand outside the reserve could be sold or leased at the City's discretion with the proceeds being deposited into the airport fund. Establishing the reserve would require amendments to the Kenai Municipal Code (KMC~ to describe the reserve boundaries,~ prohibit land sales, and define the leasing policies for land within the reserve. Discussion Question: Shall we continue to refine the proposed boundaries of an airport reserve and draft recommendations for appropriate changes to the KMC? 2. Plattinq Exemption. We have recommended that the City should negotiate with ~~ Kenai Peninsul ' ' ~ ~ ~ , a Borough to obtain an exemption from borough platt~ng requirements for all land within the Airport Reserve. Since the land will never be sold and all land uses will rernain underthe City's direct supervision as airport operator, there is no need for Airport Reserve lands to be platted. Eliminating the piatting step would reduce the time required to issue a lease and significantly increase the City's flexibilit in establishin , , , , Y 9 and changing lease lot dimensions to meet the changing needs of existing lessees and new applicants. If the City obtained the exemption, some KMC changes will likel be , , , Y necessary to establish basic survey requirements and a procedure for making lease lot dimension decisions. Discussion Question; Is the City willing to pursue this course of action? 3. New Land Rental Rate Settinq 1 Ad~ustment Proqram. We have recommended that the City establish, at least for land within the Airport Reserve, a new s stem for . , , , , ,Y setting land rental rates by conducting an airport-wide appraisal every five years and applying CPI-based adjustments during each of the years between appraisals. Such a system would reduce costs and simplify the rent adjustment process. Some KMC amendments are being drafted to implement such a system, Discussion Question: Shall we continue to develop recommendations for code changes and internal procedures needed to implernent a shift to this new rent adjustment system? 4. Appraisal Review bv the FAA. We have recommended the City stop the existin , „ , 9 practice of submitting lease appraisals to the FAA for approval. The staff of the FAA, Alaska Region, Airports Division has infarmally expressed agreement with this recommendation. This would result in a saving of time and money for both the City and the FAA, but itwould not relieve the City of its obligations underAlP grant assurances and otherfederal requirements to maintain a fair and equitable system of land rent. Discussion Question; Shall we draft recommendations for formalizing the termination of the FAA appraisal review process? 5. Guidelines for Settinq the Lenqth of Lease Terms; To set the term of each new lease, the City has been using the lease term guidelines in the State's rural air ort , P regulations ~17 AAC 45.225~. Although that regulation has only been in place since 2002, the State's administrative use of the same term guidelines dates back to the mid- 1990's. After roughly ten years of construction cost inflation, the investment amounts required in the guidelines for given lengths of term are too low, Off the record, State DOT&PF airport leasing officials have acknowledged this fact and plan to increase the investment requirements in a future revision of their regulations. In addition, the State's term guidelines extend all the way out to 55 years, which is substantially longer than the airport industry norm of 25 to 35 years. The rural air ort . , , p regulations were adopted to provide for terms up to 55 years in response to a statute passed in 1996 [AS 02.15,090(c)]. That law provides airport lessees with an almost perpetual right of renewal and allows lessees to retain ownership of buildings and other improvements for as long as they hold a lease and continue to renew. Neither the Cit . , ., , , , , , Y of Kenai nor the Kenai Municipal Airport is sub~ect to this statute, so there is no requirement for the City to grant leases for such long terms. I recommend the City adopt, by code or regulation, a set of term guidefines in which the investment requirements are increased by at least 50% and the maximum term is set at 2 35 years, which is more than adequate to support amortization and financin of lessee- , g constructed improvements. ~ - Discussion Question: Should we draft a set of revised lease term uidelines ~ , ,, g and recommendations for appropriate KMC revisions? 6. Municipal Code / Lease Provision Chanqes. Since the KMC includes some specific requirements for airport leases, changing the City's lease form would re uire . , a changes in the code. In my ~udgement, there are a number of revisions needed in the lease form ~and the KMC~ in the areas of - applicant qualifications; - subleases; - lessee performance requirements; - lessee investment commitments; and - environmental contamination. Some editing and clarification of intent in other provisions are also needed. At the Jul . , , Y 26, 2005 work session, I will outline my change recommendations. Discussio,n Question: Shall we draft KMC and lease provision chan es as , g outlined? 7, Airport Regulation Changes, The City's existing airport re ulations are in need of , . .. , . , , g ~ fairly extensive clarification and u datin , es eciall in the areas of , p g p Y -~ - aircraft registration; - aircraft operations; - vehicle operations; and - general information. In addition, new sections are needed to address issues, such as - fuel spill prevention and response; - environmental contamination; - airport security; and - rules for aircraft transporting explosives or other high-hazard car o. . , , , , 9 Also, consolidating all userfees into a single, separate section should be considered to make fee obligations more clearly understood by airport users and more convenientl . Y amended by the City. I will be meeting with the City Attorney and the Airport Mana er on Jul 27th to obtain . g Y input from them on how the current regulations are enforced and which rovisions the p y see as obsolete. After the meeting, I will draft recornmended re ulation revisions. g Discussion Question: Do City Council /Airport Commission members have any suggestions for regulation changes? 8. Building Space to Open Space Relationship. I was asked to rovide , . ., p recommendations regarding the minimum amount of open space re uired to ade uatel ,, a q Y serve a building on leased airport land. In my career in charge of the State's air ort p 3 property leasing program, the building space to open space relationship that was the most successful (for both fihe state and the lessees) was: Total building square footage (all floors) may not exceed 35% of the total area of the lot. The application of this guideline resulted in lease lots with adequate open space to accommodate aircraft and vehicle maneuvering and parking, cargo staging, snow storage, and fuel storage. It was equally useful for application to both aviation and non- aviation leases. Compared to older lease areas with smaller lots land leased under this ~ guideline generated significantiy reduced aircraft and vehicle congestion, airport tenant conflicts, and airport M& 0 costs. The State has not adopted this guideline in regulation, but it was used administrativel , , , Y for rna~ny years whenever lease applications and tenant construct~on propasals were considered. Discussion Question: Would the adoption of this guideline be useful at Kenai Municipal Airport? 9. Airport Land Development Insentives. Previously, we explored alternatives for the City to pravide airport land development incentives to tenants without violatin FAA , 9 requ~rements. We were able to recommend only two incentive plans. The first, was a waiver of the City's property tax on leasehold improvements during the initial years of a lease involving a significant lessee investment in improvement construction. For discussion purposes, we suggest a City property tax waiver for the first three years following the lessee's completion of permanent improvements costing at least $500,000. The second incentive suggestion was to use funds from the City's airport land s stem ,. Y trust fund to construct basic infrastructure for lease lots, such as structural gravel fill, access road, sewer / water extensions, etc. The City's investment would be recovered through a rent surcharge over a reasonable period of the lease term. Discussian Question: Should we draft recommendations for code revisions to implement these incentives? 10. Minimum Standards for Aviation Service Providers. It is fairly common for airport operators to adopt minimum requirements for all arties who want to rovide , . . , ,, p p aviation services on the airport. Minimum standards often include such things as minimum lot and building sizes, hours of operation, insurance re uirements, re uired . . .. , a q services to be provided, minimum staffing levels, and lease applicant experience and financial qualifications. In short, minimum standards establish the threshold ent , , , , ry requirements for anyane who wants to provide aeronautical services on an airport. They also set the standards for continuing service by existing aviation service roviders. ,. , , , , . P M~n~mum standards provide a uniform basis for evaluating an aeronautical a licant's pp request to operate at the airport and help to assure a"level playing field" for all aviation service providers. The adoption and uniform application of minimum standards also aids an air ort . . , , . , p operator in complying with their obligations under AIP grant assurances regarding 4 airport users. That is, the obligations to establish "fair, equai, and not unjustly discriminatory" requirements for all users of the airport and to allow the use of the ~`~ airport "by all classes of aeronautical use on fair and reasonable terms withaut ' discrimination". Adopting minimum standards are a"best business practice" for an airport operator. Minimum standards are common at airports in the Lower 48. However, to my knowledge, Juneau International Airport is the only airport in Alaska that has ado ted „ P minimum standards, by name. The State's airport system doesn't have minimum standards, per se, but their leasing and airport operating regulations perform essentiall ~ ~ ., y the same funct~on. The KMC includes some features of a m~nimum standards document, such as uniform lease application processing procedures, insurance requirements, and lease requirements. However, KMC does not encompass all the features necessary to function as minimum standards. Discussion Question: Should we draft minimum standards forthe City? 11. Airport Zone. Previously, we have recommended the adoption of a broadl ' u ' » . , ~ defined Airport Zone to accommodate all potential a~rport-related land uses within the Airport Reserve. In its role as landlord, the City has direct control over an airport tenant's use of land. Considering that and the fact that land within the Airport Reserve would never be sold, there is no real need to apply conventional zoning classifications and procedures to the Airport Reserve. ~ Discussion Question, Should we draft specific recornmendations for an Air ort P Zone? 12. Delegation of Authoritv and Responsibilitvfor the Airport. One of the most universally accepted principles of organizational efficiency is to dele ate authorit and ,., g Y respons~bility to the Iowest competent level. The CEO of a Fortune 500 corporation may be a completely competent accountant and typist, but keeping the corporation's books or typing his own management~policy directives would not be the hi hest and , , , . ,. g best use of his time. Delegating the responsibil~ty for these duties to others allows the CEO to devote his full time to the leadership functions that only he can perform, Following the same example, the CEO knows nothing about the highly specialized field of market analysis. Were he to attempt to do his own market analysis work, the results for the company would be poor. On the other hand, taking the trainin necessa_ to , ,, g ry become fully competent in the market analysis field would leave some of his essential CEO duties undone. ~perating airports has become an increasingly complex and specialized business since the federal government transferred ENA to the City of Kenai in 1963. Specialized knowledge and focus is necessary to remain current in the: - changing federal regulations for AIP grants, airport operations, and aviation security; - rapid shifts within the commercial aviation industry; - advances in airport technology, and - airport marketing techniques. 5 Many municipal governments have fiound it impossible, within their normal administrative framework, to achieve the specialized attention airports require. For that reason, the trend has been for municipal governments to establish an operating board or port authority to assume full responsibility for their Iocal airports. Six of the airports - included in the ENA comparison study ~Juneau, Pendleton, Pullman, Walla Walla, Wenatchee, & Yakima~ have gone through this kind of transition. The Kenai Municipal Airport may not yet have achieved a high enough business volume or traffic level to justify the establishment of a fully independent airport board. However : it appears that some significant improvements in efficiency and effectiveness could be gained by a delegation of authority and responsibility to lower levels where more specialized airport expertise and focus exists (or could be developed). This is not to sa . , .. , , , ,,Y that those involved in the existing system are incompetent or doing a poor ob. But, it is , , , , 1 to suggest that some increased delegation of authority and changes in organization could produce long-term benefits for the airport and the City. A suggested dele ation / , . , , , 9 reorganization based on best business practice concepts is presented below. Discussion Questions: Does the City wish to explore the delegation conce t p presented below? Or, another delegation concept? Should we draft a more de#ailed delegation / re-organization recommendation and transitian outline? Conceptual Delegation 1 Reorganization of Authority & Responsibilit forthe . Y Airport. Citv Council. Regarding the airport, the Council would retain final decision authorit Y for; - The airport operating budget; - The airport capital improvement project ~CIP) budget; - Airpart Master Plans and land use plans; - Airport-related changes to the KMC; - Land rental rate policy (Rent adjustment methodology); - Appeals of Airport Commission decisions; and - Revision and repeal of airport regulations. Reconstituted Airport Commission. The commission would chan e from an ~ . . . .. , g advisory group to a deliberative body with decision-making responsibilities. To avoid conflict of interest problems, this change would necessitate a membershi with wider , , , , , p community representation than is requ~red by the current KMC. Direct airport users would have to be kept in the minority. For example, a reconstituted 7-member commission membership could be: - One aviation service provider at the airport; - One lessee of aviation land or terminal space at the airport; - One owner of a non-commercial aircraft based at the airport; - Four at-large members representing the business and professional community, but having no direct financial interest in an aircraft, airline, aviation service provider, or land or terminal space lessee on the air ort. p 6 Conceptual delegations to a Reconstituted Airport Commission include: ,~ _' - Recommending the airport operating budget to the Council; - Recommending the airport CIP budget to the Council; - Approval of expenditures within the scope of budgets approved b the . Y Council; - Preparing and updating air ort master lans and land use lan P p p s(for approval by the Council); - Making recommendations to the Council for changes to airport-related sections of the KMC. - Adoption of airport regulations; - General oversight of airport operations, terminal operations, and land use• , - Promoting and marketing the airport; - Responsibility for all decisions related to leasing land within the Air ort . , , , , , p Reserve, including approval I re~ection of lease applications, lease amendments, lease assignments, subleases, and lessee construction proposals; and decisions related to lease terminations; - Adopting land rental rates using methads established by the Council; - Adopting 1 changing airport userfees; - Hearing appeals of Airport Manager decisions; and - Make all land use decisions within the Airport Reserve. Note: This would ~ involve a transfer of land use authority from the Plannin & Zonin 9 9 Commission, but arrangements could be made for the Air ort Commission , , ,, , , P to receive advice from the City s Planning & Zoning administrative ~ personnel.) Airport Manaqer. Conceptual new delegations to the Air ort Mana er include: p g Designated point of contact for all land lease applications, lease amendments, lease assignments, subleases, and lessee construction proposals;* Primary responsibility for negotiating the terms of land leases and lease arnendments with applicants (with assistance from the City Attorne ;* . . . , , Y) Responsibility for lease premises inspections and lease enforcement~* , *NOTE: This does not necessarily mean the airport mana er or the mana er's . g 9 staff would write the actual lease documents or lease enforcement letters. Some or all of those duties could remain with the Assistant to the Cit Mana er. , Y 9 However, the airport manager would, under the general direction of the Air ort , . , , , , , P Commission, provide direction for the actions descnbed. 7 Airport Land Use Plan Definitions The following land use plan is intended to guide future lease, sale and use of ai ort . ., . ~ lands at Kenai Munlcipal Alrport. As a long range land use plan it sets a lon ran e ., g g vision for land uses and reflects future development in the current rnaster lan or , , p recommendations from the Supplemental Planning Assessment. In some instances ~ such as the relocation of general aviation activity to the west side of the ai ort it . . . . ~ ~ reflects a significant change in land use, that will take many years to im lement. p l. Airport Boundary - This boundary reflects the original airport boundar and an Y Y lands that have subsequently added to the airport. Many parcels within this boundary, but outside the airport use boundary, have been sold b the Cit and Y Y these properties are no longer technically part of the airport propert . However . .. Y ~ for simplicity and because of the large amount of roads, rights of wa s and Y easements between these sold lots, that are still owned by the airport, this drawin g continues to reflect the original airport property boundary, 2. Airport Use Boundary - Land within this boundary is reserved for short-term and long term airport-related uses and should not be sold. All uses within this boundary should comply with the airport land use plan and the ai ort master , , , ~ plan. In some cases interim uses not consistent with the land use lan ma be p Y allowed as long as the uses are consistent with safe airport o erations and FAA p standards and the lease terms and conditions allow the uses to chan e when the . „ g land is needed for aviation purposes. 3. Air~eld - Areas directly related to the landing, takeoff, taxiin and arkin of g p g aircraft and helicopters, including runways, taxiways, heli ads, runwa rotection p Yp zones, approach surfaces, building and obstacle free zones, navigational aids, and City-owned aircraft parking aprons. 4. Passenger Terminal Area - Areas containing the passen er terminal and ublic g p ~ rental car, and employee parking associated with terminal activities. 5. Aviation Commercial - Areas used for aviation activities re uirin taxiwa . q g Y access such as air cargo facilities, hangars, corporate jet support facilities, milita . ... . . ~Y facilities, fueling facilities, alrllne and air taxi hangar/office com lexes and for .. ,.. ,, p ~ general aviation activities requiring primary use of the paved runwa . Y 6. General Aviation - Areas used by private pilots and businesses rimaril , p Y operating from the floatplane base and gravel strip and other businesses that provide services to them. 7. Aviation Support/Governmental - Areas used by government activities re uired . . , q for the operatlon and malntenance of the airport and air navi ation such as the air , , , , g traffic control tower, flight serv~ce station, airport maintenance facilities ai ort rescu ' ' ' ~ e and fire fighting, and airport storage areas. $. Aviation-Related - Areas used for facilities and functions which su ort the . . . . , Pp airfield, terminal, avlation commerclal, and general aviation tenants and the ~raveling public such as rental car or other ground transportation maintenance areas, aviation-related offices and warehouses, aircraft parts suppliers or hotels. 9. Aviation Reserve - Areas reserved for future long term aviation commercial or aviation-related development. 10. Non-Aviation - Areas outside the "Airport Use" boundary which ma be ~ ~. y . developed for purposes unrelated to the airport providing they do not conflict with airport-related restrictions on height, noise, or airport safet zones. Y ~ ~~ ` ` ~ C ~ Q a ~. y J ,, ~ ~ ~C ~C C C.0 ~~ ~ C ~ 0 .I ~ o ~ ~~ Q ~ ~~ E '~°'~ ~ ° ~ ° ~ ~ a~i ~ ~ z `~,~a = ~o ,~o Q,~ ~o ~o a~ ~ W Y o ~ ~ ~ ~ , F~~ ~. 0! ~! !> >d ~~ ` '~ =zaN a W a~ ~a c~a a~ a~ a~ ~ a =m~n ~ 0~ ~U~ W ~ J ~ I i ~ z C a ' . ~ I ~ ~ ~ t,... ~~ I ' t _ ~ ~Z N~ yd Jy . =W W' d~ WZ ~ ~~ Z ~ (e~~, r.so sooa az im ~w~~sn p~oi lo~~~~~o~~oa•~o6w~a~s a~o ~w~-~. t ,