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HomeMy WebLinkAbout2005-08-11 Airport Commission Packet~ 1 + t~ ~ ~ KENAI AIRPORT COMMISSION ~ AUGUST 11, 2005 - KENAI CITY COUNCIL CHAMBERS 7:00 P.M. ITEM 1: ITEM 2: ITEM 3: ITEM 4: ITEM 5: CALL TO ORDER AND ROLL CALL AGENDA APPRO~AL APPROVAL OF MEETING SUMMARY -- July 14, 2005 PERSONS SCHEDULED TO BE HEARD OLD BUSINESS a. Discussion -- Supplemental Planning Assessment 1. Airport Vision and Mission Statement 2. Airport Leasing Program/Airport Regulations Change Implementation b. Recommendation -- Use Agreement/ Mobile Massage Chair c. Recommendation -- Lease Application, Tract A-1, General Aviation Apron No. 4 - Aviation Support Services, LLC by: Charles E. Tulin and Helen L. Tulin. ITEM ?: REPORT a. Commission Chair b. Airport Manager c. City Council Liaison ITEM 8: COMMISSIONER COMMENTS AND UESTIOHS ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD ITEM 10: INFORMATION ITEMS a. Kenai City Council Meeting Action Agendas for August 3 and July 20, 2005. b. 7/2006 Kenai Municipal Airport Enplanement Report. c. 7/200b Float Plane Basin Activity Report. d. 8/ 1/ 05 FAA email regarding Vehicle Pedestrian Deviations (VPDs). ITEM 11: ADJOURNMENT PLEASE coNTACT Us rF you WrL~ NoT 6E agLE TO ATTEND THE MEETING ~ CAROL - - 283 - 8231 OR , Q~R~r_r.a~~ueQV __ ~~~_~4~~ NEW BUSINESS ~~ KENAI AIRPORT COMMISSI4N JULY 14, 2005 KENAI CITY COUNCIL CHAMBERS ?:00 P.M. ITEM 1: CALL TO ORDER AND ROLL CALL ITEM 2: AGENDA APPROVAL ITEM 3: APPROVAL OF MEETING SUMMARY -- April 14, 2005 ITEM 4: PERS4NS SCHEDULED TO BE HEARD ITEM 5: OLD BUSINESS a. Discussion -- ~Iehicle Parking Lot in the General Aviation Area b. Discussion -- Kenai Peninsula Air Force Wrap Up ITEM b: NEW BUSINESS a. Recommendation -- Lease Application, Tract A-1, General Aviation Apron No. 4- Aviation Support Services, LLC by: Charles E. 'I~,ilin and Helen L. Tulin. b. Discussion -- Airport Vision and Mission Statement a. Commission Chair b. Airport Manager c. City Council Liaison ITEM 8: COMMISSIONER COMMENTS AHD OUESTIONS ITEM 9: PERSONS NOT SCHEDVLED TO BE HEARD ITEM 10: INFORMATION ITEMS a. Kena.i City Council Meeting Action Agendas for June 1 and 15, 2005. b. Airport Bulletin O 1-2005, Vehicle Access to Airport Aircraft Movement Areas c. 6/ OS Airport Manager Report d. 6 f OS Float Plane Basin Activity Report e. 6/OS Enplanement Report ITEM 11: ADJOURNMENT KENAI AIRPORT COMMISSION JULY 14, 2005 KENAI CITY COUNCIL CHAMBERS 7:00 P. M. CHAIR HENRY KNACKSTEDT, PRESIDING MEEfiING SUMMARY ITEM 1: CALL TO ORDER AND ROLL CALL Chair Knackstedt called the rneeting to order at approximately 7:00 p.m. The roll was confirmed as follows: Commissioners present: H. Knackstedt, C. Versaw, E. Mayer, D. Haralson Commissioners absent: J. Zirul, R. Bielefeld, J. Watkins Others present: Council Member L. Swarner and Airport Manager R. Cronkhite ITEM 2: AGENDA APPROVAL M~TION: Commissioner Harson MOVED to approve the agenda and Commissioner Versaw SECONDED the motion. MOTION TO AMEND: Commissioner Haralson M~VED to amend the agenda with the postponement of Item 6-a (Recommendation -- Lease Application, Tract A-1, General Aviation Apron No. 4- Aviation Support Services, LLC by: Charles E. Tulin and Helen L.1~,ilin) and Commissioner Versaw SECONDED the motion. There were no objections. SO ORDERED. VOTE ON MAIN AMENDED MOTIOH: There were no objections. SO ORDERED. ITEM 3: APPROVAL OF MEETING SUMMARY -- April 14, 2005 MOTION: Commissioner Haralson MOVED for approval of the April 14, 2005 meeting summary and Commissioner Versaw SECONDED the motion. There were no objections. SO ORDERED. ITEM 4: PERSONS SCHEDULED TO BE HEARD -- None. ITEM 5: OLD BUSINESS 5-a. Discussion -- Vehicle Parking Lot in the General Aviation Area The Commissioners reviewed the different options as presented by Airport Manager Cronkhite. Commissioner Haralson stated his concern of the cost and the ability to recover the cost. MOTION: Commissioner Haralson M~VED to recommend to council to pursue negotiations to acquire the lot for purpose of developing a public pay parking lot and council to determine if it is fiscally responsible development. Commissioner Mayer SECONDED the motion. There were no obj ections. SO ORDERED. 5-b. Discussion -- Kena.i Peninsula Air Fa.ire Wrap Up The Commission discussed the cost incurred and the possibility of changes. Commission's consensus was to invite the Air Fair Committee to attend the next Commission meeting to further discuss the future of the a.ir fair and the costs and people power needed to accomplish the event. ITEM 6: NEw BUSINESS 6-a. Recommeadatioa -- Lease Application, Tract A-1, General Aviation Apron No. 4- Aviation Support Services, LLC by: Charles E. 'hilin and Helen L. 'Itiilin. Pos~tponed to August meeting. 6-b. D~scussion -- Airport Vision and Mission Statement A lengthy discussion took place related to the proposed mission and vision statements. Because the Commission had concerns related to the wording of the statements, Commissioner Haralson proposed a well-advertised work session proceed the next meeting with the consultant on July 26 to develop the statements more in line with what the Commission envisions they should be. It was also suggested the work session begin at 5:00 p.m. and to publish/advertise the consultant's paper as a rough draft to be discussed at the work session on July 26. ITEM 7~ REPnRT 7-a. Comaiission Chair -- Knackstedt reported the following: ~ The gates are good, but cards are made to mount on windows and only work within four feet. • Trees south of the terminal suggest snow fence may be needed for Granite Pointe. ?-b. Airport Manager -- No report. AIRPORT COMMISSION MEETING JULY 14, 2005 PAGE 2 7-c. Citp Council Liaison -- Council Member Swarner re~,ar~ed the contract with the city manager ends July 16 and the council will hold a special meeti~lg on Friday, July 15 to appoint an acting city manager. ITEM 8: COMMISSIONER COMMENTS AND QUESTIONS -- None. ITEM 9: PERSONS NOT SCHEDULED TO BE HEARD -- None. ITEM 10: INFORMATION ITEMS 10-a. Kenai City Council Meeting Action Agendas for June 1 and 15, 2005. 10-b. Airport Bulletin O 1-2045, Vehicle Access to Airport Aircraft Movement Areas 10-c. 6/ OS Airport Manager Report 10-d. 6/ OS Float Plane Basin Activity Report 10-e. 6/ OS Enplanement Report ITEM 11: ADJOURNMENT MOTIOH: Commissioner Haralson MOVED to adjourn and Commissioner Versaw SECONDED the motion. There were no objections. SO ORDERED. The meeting adjourned at approximately 9:05 p.m. Meeting Summary prepared by: Carol L. Freas, City Clerk AIRPORT COMMISSION MEETING JULY 14, 2005 PAGE 3 ,~ r~ .~ n~ Municipal Airport «~~ / JL~~ I ~ / JJ ~~ Ir 305 N. WLL~~YII ST. SURE 200 i~NAI, ALJ~SKA 996'f 1 TELF.PHONE 90~1~T961 FAX 90?~83~373? To: Airport Commission From: Rebecca Cronkhite - Airport Manager Date: April 7, 2005 Subject: Tulin Lease Application The attached lease proposai does not allow for parking lot expansion as discussed in our current planning study. We are in the process of a Master Pian update and the consuitants have expressed concern that approval of this lease as presented will tie up a significant parcel of property in excess of that needed for the proposed development. They have suggested reducing the size of the parcel and allowing for completion of our planning before committing to a long-term lease of the entire acreage available. Consultants working for Soar International on a private long range planning effort for the airport echoed this recommendation. Neither of these consultants are specifically tasked with reviewing this lease application, therefore, their comments are not documented or fully researched. 1 mention them because I believe the Airport Commission should consider the long-range implications of committing to a 55-year lease of this property. It is possible, and my recommendation that Commission request a full review of this lease by the consultants and a written report on long term implications. This report could also include alternatives and proposed lease language to encourage and enable this project to proceed while protecting the interests of future airport development. www.ci.kenai.ak.us. Kenai Municipal Airport Brief Public Parking DemandlCapacity Analysis DOWL Engineers 7/5105 Existing Master Plan - December,1997 • Based on 2015 demand of 170,000 enpianed passengers, the existing master plan projected a demand for l00 parking spaces - 500 short termllong term,140 rental car, and 60 employee. • With 540 existing spaces, this indicated a need for an additional 160 spaces by 2015. • Space for 200 additional vehicfes was reserved across Willow Street from the terminal and 50 additional spaces next to the existing rental car parking lot were identified. • Based on the above, the 2015 requirement would be met with these 250 new spaces. Supplemental Planning Assessment Phase 1 Report - June, 2005 • The forecast for the Supplemental Planning Assessment indicates by 2023 Kenai would reach 108,000 enplanements in the preferred forecast and 154,000 in the high forecast. • Since these new 20 year forecasts are less than the Master Plan 2015 forecast of 170,000 enplanements, it would appear the current and proposed parking spaces would meet the 20 year demand forecast. Other Long Term Planning Considerations • Airports often make the mistake of blocking terminallparking expansion by leasing desireable land next to the terminal. Leasing decisions are not always made with a far enough vision of long term terminal requirements. For example, terminai expansion is currently blockedlconstrained by private leased properties in Sitka, Juneau, Kotzebue, Fairbanks, and Kodiak to name just a few focations in Alaska. • The proposed lease for air cargolhangar facilities at Kenai is proposed for 50 years; it is impossible to forecast needs for parking and terminal area uses for 50 years. • The proposed lease lot extends 100 feet into the area shown in the current master plan for future terminal area parking. • A cargo facility north of the terminal already blocks expansion in this direction. • There are other vacant lease lots on the airport, but away from the terminal, that could be developed for hangars and cargo facilities. • There could be other terminal-reiated uses that could come up over the next 50 years that would benefit from being close to the terminal. • In the long term, if Kenai runs out of conveniently located surface parking space it may have to build a parking structure in the future or buy back a lease that blocks terminal expansion. A parking structure is estimated to cost about $15,000 to $25,000 per stall. A 400 car garage would cost about $6 -$10 million. Kenai would have to increase parking fees to pay for the garage ~garages are not eligible for FAA funding), adding to the costs of flying versus driving. • The draft missionlvision statement indicates scheduled passenger service is of primary importance. Making travellers park across the street from the terminal parking lot is less convenient and discourages flying versus driving. Recommendation • At a minimum, eliminate the area shown for Hangar 1 and adjacent offices from the lease and reserve this space for terminal parking expansion. Allow the Hangar 1 development to be relocated to the site shown for Phase 2, since there is no current need for Phase 2. • Alternatively, consider relocating the entire development to another vacant lease lot. There are other existing lots with more space, frontage on V1lillow Street, and direct apron access. II f ~ • l a e wc a a~ l~ ~ , ~ r~~ y, 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 1~~ Tele hone: 907-283-75351 FAX: 901-283-3014 P - - -= -- .~~- www.ci.kenai.ak.us the cc~ o~' KEI~AI, ALASKA v Date: July 6, 2005 To: Kenai Airport Commission For: Meeting of July 14~ From: Kim Howard, Assistant to the City Manager RE: Lease Application, Tract A-1, General Aviation Apron No. 4- Aviation Support Services, LLC by: Charles E. 8~ Helen L. Tulin As a brief history, on February 2, 2005 the council approved a lease application to Charles E. & Helen L. Tulin for a portion of Tract A, General Aviation Apron No. 2. Tract A was in the process of being subdivided into three lots. The Tulin's intent was to lease Tract A-1 and A-2. The estimated value of the improvements was $2.5 million. On February 22nd Mr. Tulin told me he was reconsidering whether to lease Tract A-2 due to the size of the drainage and utility easement and restrictions on the property. He asked me to pull the plat from the Borough Planning agenda and put the appraisal on hold. After discussions between Mr. Tulin, the airport consultants, city administration and the engineer, it was agreed that the proposed Tracts A-2 and A-3 should be combined into a single parcel while the storm drainage and proposed taxilane project was pursued. At the end of March, Mr. Tulin submitted a request to amend the lease application for Tract A-1 only along with an amended development plan. Because there were so many items that changed from the original application, I asked the Tulin's to submit a new application clarifying their intentions. On June 3~d the original lease application expired and we received a new application that is attached. In reviewing the application, the city administration had several concerns that were addressed in a letter to the Tulin's dated June 17`h. The letter and their response are attached. For clarification, two items in their response, items 2 and 3 are not accurate. In item 2, one lot is being leased. In item 3, their lease application states the estimated value of improvements is $980,000, not $375,000. If the application is approved, it will be based on the $980,000 _ Kenai Airport Commission July 6, 2005 Page 1 of 2 investment. The $375,0~0 amount is the minimum amount for a 55-year lease in the criteria used by the State in 17 AAC 45 for airport leases. KMC 21.10.080 states the term shall depend upon the durability of the proposed use, the amount of investment in improvement proposed and made, and the nature of the improvement proposed with respect to durability and time required to amortize the proposed investment. The FAA has agreed that the City may apply the criteria used by the State in 17 AAC 45 for their airport leases. Pnor to leasing, an appraisal must be approved by the Federal Aviation Administration. After review by the Airport Commission, the application will be forwarded to the Planning and Zoning Commission to determine if the intended use complies with the zoning ordinance and Comprehensive Plan of the City. The Airport Commission needs to determine if the intended use complies with the Airport Masterplan. The recommendations of both commissions will be forwarded to the Kenai City Council for lease application approval. Cc: Charles E. & Helen L. Tulin Rebecca Cronkhite, Airport Manager /kh Attachments ,~, r JUN. 1.2005 3~53Phi CITY OF KENAI . N0.281 P.3i5 ~ ~~ ~ateL~,.~(D~'imt •'Y ,...-- Signature ' ~stuaated Value of Improvem~uts $ V~A~'l~c~ s~ v~c~ / S c~n~~ - ~ ~-~- ~ ; ' GNAT : . Dat~: APFI~C,ANT'S SIGNATLtRE: ~~ ~ ~-a` D~te: _.~. , ~ • Begi~ning Dat~ • Completian Date (maximum of y~ars~ . ~ ~, o ~- o~~~ T~mc Schedule ~Or Froposc~ Derrel ent CIT~' 0~ I~ENAI 210 Fid~lg~o Avenue, Suite 200 Kenai, Alaska 9961 I •7794 ~ - (947} 283-7535 Ex~ 223 V I I~ i~~ J~ ~~~ LEASE A.~p~,YCATION S ~ ~ I,c~. a y~ ~C V U~ r .~., , ~ F / ~h Name of Applicaat V~ ~cS _, t.~ Q~ A.ddress Busineas N~tac an,d Address , ~ Telephone ~enai Pe~ainsuta Borough Sales Tax No. ~if applicable) State of Alaska ~usiness LicCnse No. (if applicable} ,_ Legal Description Purpose of Proposed Lease j~ Tcrni of Proposed Lease 5~ ~ ~ ~ f ~~ v ' ~ ~ ~1 • . j ' ~ . • ..~a ~ z ~ e , ~=K. :. ~d a ~ ~ , '.~ICeS . ~scnption of P~osed D welop~ent (typ~, coastruction m~tcnals, size, etc.) „ ci~ oF ~NAZ LEASE AP~LICATrON C~iECKLIST (All itesns must be completed be~fore application can b~ accepted.) Attach a d~velopme~t plan drawn to ~cale. Dr~v~ings do not need to be ptepared by an erchitect or er~er. Shoa the layout of thc lot and the location of all proposed impr~vesn~nts, The drawings also need to show the foll~aring, 1. ~xisting builclings Z. Proposed buildings 3. parking facilities (how many spaces and locaaon~ t ~ ~ _. 4. S ite improve~rne~nt~ •~as to be clear~d aad me~hod of dispos~l D'~ ~' - ~ ~ Proposed grav~l or paved areas ~1 ~' ~ • I.~dsc~ping plan ~.-y~, ld1~ (retention of natural vegeta~on aadlor p posed planvng ) ~ !~ . 5. ~uilding set bacl~s •~,~,~ b. Drainage plan and method of snow removal ~~ D , 7. Ci~culation plan (all ~ntr~ances, exits and on-~ite access) ~CQ~._„_ 8, Locatioa of sign(s) - sign pennit required 9. Fe~cing - perinit requireeci if height is over b' 10. Curb cuts ~whe~e ~pplicable) 11. ~uilding height . ~ ~ ~ lu ~?~~ . /1 1t ~ ~~ ~~ ~ I Z. FAA Form 74d4 N'otic~ of Proposed Cons~ru~ctioa ~Ror cons~ruction of buildings on auport land. Tbis form is to be subnlitted to the FAA by the applicant, It ca~ be download~d from the FAA website ` h:ll www. al~ska. faa. ~v/~i orts. The site has a menu for forms. ` ~ , Jun 03 05 02:44p • MV ~ ~iV . ~ • i j~ ~ ~ : ~ ~ ~ , ~ ..~ - . .~ • ~ c • ..` ~ ~ ~ . ~ ~ ~ ~ ~ ~~': , .~. ~' ~ ~Z ~ ~ ~ ~ p, . ~ ~ ~. . ~ . ~ ~ . "~'~ . . . . ... .. ... _ ~ t VA1~~ A - 2 ~ -~ ~~ ' ~ ~ ~ • ~ `'{ . . ...... . .... ~ . ~ .~ . . ~ ~ ,~ . . : . . . Helen Tulin ~72215? p.l ~ . ~ ~ ~~ ~ (!' l~G ~~ l~; /~~ S ~ ~° D~~ . , ~ U~ ~'l « . ' ~ ~ , ~ ~~ G ~~, fl ~ C~ ~ ~ . ~ ; ~~~ ~~ ~ ~ Q~ 1 ~C~1 , ~~ w h a ~~ ~'oar 100: ------- ~ • « .•- ""`,. ! ~Dl ------ w ~a.~cr w • ~ j ~~i , • ~N a~r ~ ~ w a ~ • a ~G ~ ~- ~1 ~ ~. 3p . ~ o . ~~• oo • ,-c. .~ ~ la~~s o 0 a ; a ~ rQ a .~ ~ ~ _ r 9 . ., d ~ . ; ~ ~ , ~ , ~ ~~'! ~h~ ~vv~ ~'1ds ~hC . ' ~ . . .~ . . .- _ -• .... ~ -~ .. . _ . ;' : ~~ . . o ' ~ ~~~~~ ~~ ~ ` lSF~~~G~..S -~~IFlCI.~G ~=~hCG C~~ l~~ ~ ~3 ~ ~ .f ~ ; ~ ' . ,r. . ~'~ ~ Pl~RK1A1~ . r. ~ ' fi 30i' 30' • ~~ t~'~'liaY~ EI~M~tT' : -,.... - ....... .~...._.. .~.• -.~ r.... _...... _ - ~~ ~~ .... ... • . ~ ~ S28'42'~'~11 350.00' ~ 4 - ~ - .. ~ -- ,~ . 1 ~ O . ~ ~ ~ ` ~ - ~ ~ ~ ~V ~ ~ ~ ~ ~ ~ \.! ~ ~ c~ ~ ~ . -~ sz.., . ~ A `~~ ~ ~ , . . ~ ~ ~o ,. ~ ~ ~,~ ~ T /,~-- CITY OF KENAI LEASE APPLICATION - CONDITIONS OF ACCEPTANCE (To be completed by the City) Kenai Peninsula Borough Parcel No. ~~,~ ~ D ~-~ o-,~S' Zoning - ~ j ~, Permits Required: • Conditional Use Permit • Landscape Review ~- ~ • Building Permit ~ • Sign Permit Y t -~ Assessments /f /Uh~ Insurance Limits Required Construction must begin ~p' ~~ ~i~ ~ ~ . Completion date for major construction ~, ~,~~ ~~,,-s rr,~c a~.~~ , Planning Commission Approval By: Date of Approval: Chairman Cit_y Council Approval By: Date of Approval: City Clerk THIS APPLICATION WILL BE MADE A PART OF THE LEASE 4 ~ fv m N ~I ~I 2) n~ Y ~; 1~ ~ ~iz ~0 Nfi ~ ` w, ~ `, "~ ~ .. _ C {/I- i \ ~ ~. 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M ~ ,` ~~--------------------------------- ------------------ 3„tit,Zti.9ZN __ _ . ` 133b1S MO111M ~ ,:________________________________ ___________________I ~ . _ _ . ___ . _ ~ ~ ~ m ~ ° ~ ~ ~ ~ ° ~ wt0 u- SO W 0311011 6rt0010rJIAtl0i00i1w~1~~5\\ ]iw ~iwYO SuLL ~~r ~~ -,~ ~~ Y~~~~~. ~'SS»'...4.. .". - - - .~ t`~tc ~c~ o f KENAl, ALASKA u June 17, 2005 ~~ ~ ~ ~ ~ II c a e wc a a~s c wc a u u~e ~ 210 Fidalgo Avenue, Kenai, Alaska 99611-7794 Telephone: 907-283-7535 / FAX: 907-283-3014 www.ci.kenai.ak.us VIA FACSIMILE (907) 272-6405 (907) 272-2157 Charles E. Tulin and Helen L. Tulin D/b/a Aviation Support Services, LLC 529 West Third Avenue Anchorage, AK 99501 Re: Tract A-1, General Aviation Apron No. 4 Dear Mr. & Mrs. Tulin: ~ The City is in receipt of your Lease Application dated June 3, 2005 for Tract A-l, General ~ ~ Aviation Apron No. 4. My intentlon is to submlt your application to the Kenai Alrport . Commission for their meeting of July 14`h. Following the Airport Commission's recommendation, the application will be scheduled for the Planning and Zoning Commission of July 27`h. In a telephone conversation last week, Mrs. Tulin indicated she was agreeable to this schedule. In reviewing your application with the City Administration, several questions have arisen. To clarify your intentions for the Airport Commission, Planning and Zoning Commission and the City Council, please address the following issues in writing and we ~~vill include it with your application. 1. It is not clear if Phase Two and Phase Four are hangar buildings. Please let us know if you intend them to be hangars or offices. Also, our Building Official has told me that a hangar will require a 30' setback from the property line, or if there is less than a 30' setback, a firewall will be needed. If you have questions about this, you may contact Robert Spnnger, City of Kenai Building Official, at 283-8233. 2. Your plan doesn't show the proposed aircraft access to the lot. I can include the preliminary plans for the new taxiway with your lease application for the commissions' and council's information. 3. It was noted that you only intend to commit to a 12,000 -15,000 square foot hangar at a cost of $980,000 on the 2.44 acres. You state that the construction of Phases Two Charies ~ ~elen Tulin June 17, ? 005 Page 2 of 2 through Four will be dependent upon demand and the state of the economy. In your former application, which had been approved by the City Council on February 2, 2005, you utilized the entire lot with the estimated value of improvements at ~2.5 million dollars. The Commissions and Council may have questions about this. It would be helpful if you could give us a more defined schedule of your development plans. 4. On the Lease Application Checklist (page 3}, you refer to a greenbelt, natural vegetation and planted areas in item ~. Please identify them on your drawing. Kenai Municipal Code requires 5% landscaping and a Landscape Review Permit can be obtained when you apply for your building permit. 5. Also, in item 4, the method of disposal is not addressed. Please confirm that the unusable material will be disposed of off site. b, You indicate in item 4 that all parking will be paved. Does this mean vehicular parking only, or does it include aircraft parking as well? Please identify the paved and gravel areas and the aircraft parking area. A more detailed plan of your proposed development addressing these issues will be helpful in processing your application. I will need this information by 5:00 p.m. on July 5`h so that I can include it in the Airport Commission's packet. We are looking forward to continuing to work with you on this exciting project. Please contact us if you have any questions or concerns and we would be happy to discuss them with you. Sincerely, CITY OF KENAI Kim Howard Assistant to the City Manager Enclosure Cc: Linda L. Snow, City Manager Rebecca Cronkhite, Airport Manager Robert Springer, Building Official /kh ~ CHARLES E. TULIN & ASSOCIATES Attorneys at Law 529 West Third Avenue Anchorage, Alaska 99501 Phone: (907} 212-9546 Fax: (907) 272-6405 June 28, 2005 CITY OF KENAI 210 Fidalgo Avenue, Suite 200 Kenai, Alaska 99611-1794 Attn: Kim Howard Assistant to the City Manager Re: Lease application of Charles E. Tulin and Helen L. Tulin dlbla Aviation Support Services, LLC Tract A, General Aviation Apron No. 4. ~ Dear Ms. Howard: This will acknowledge receipt of your letter of June 17, 2005. In response to your specific questions, I can advise as follows: 1. Our intent is to develop this property in keeping with demand. Of course, development must be aviation related. At the present time, we expect that the total deveiopment will primarily be aviation hangar buildings. Most of these hangars will have offices in keeping with the demands of the tenant. 2. Access to the hangars will be down the center of the lost being leased. A taxiway from the active runway will be near the center of the lots. 3. It is our understanding that we must invest not less than $375,004 in the land within 24 months from the date of the signing of the lease. It would be our intent to meet this schedule. At present we have had a number of inquiries from people desiring hangar space. It would be our intent to meet this demand. It is really not possible to be any specific other than to suggest that it is in our best interests to development the land as soon as possible. ~ ~ City of Kenai June 28, 2005 Page Two 4. It has been our plan to do landscaping around the perimeter of the property, allowing approximately 5 feet for this purpose. Landscaping would include shrubbery, trees and flowers. 5. Unusable material would be disposed of offsite. 6. Aircraft parking spaces will be paved as the property is developed. Additionally, paved vehicle parking for each hangar will be provided. Very truly yours, / , ~ , ~ ~, • ~ i,,~l,~.:- Charles E. Tulin CET:nm Enclosure Mariiyn Kebschuil ~rom: Tom Middendorf [tmiddendorf@dowl.comJ Sent: 04 August, 200511:17 AM To: Rebecca Cronkhite; Marilyn Kebschull Subject: FW: Revised statements BeckylMarilyn .. ~ FYI see revised version.., .you can go to Tools and Track changes to turn off the track changes for the final printed version for the Commission. FYI you wiil see some deleted language in the track changes mode that were words I sent to Tom as my proposed changes. So the large amount of deleted language is mostly deletions of my proposed changes with some deletion of Tom' s eariier verbage. Many comments at the last meeting had to do with the intent for general aviation. When talking to Tom he intentially did not include general aviation in the mission, vision and strategic direction because he doesn't believe that it is a"top prionty " and the purpose of this effort it to describe the priorities. He also believes the g.a. charters are part of cornmercial aviation, and they should remain a pnority and are included in mission, vision etc. He added a note to the explanation explaining that exclusion from the mission/vision does not mean something (like g.a.) wili not be provided by the airport, but that its just not a top priority. I hope that helps explain. Tom ----•Original Message----- ~m: Thomas E. Phillips [mailto:tphillips@kpa.aero] ~nt: Thursday, August 04, 2005 8:17 AM To: Tom Middendorf Subject: Revised statements Hi Tom Here are my recommendations, revisions and additions. I would prefer to keep as much original wording as possible so tbat the Council is not seeing a brand new document. It my recommendation to only change sentences where strong objection was encountered, since most of the original statements where generated by comments from the Airport Commission and others who submitted comments. regards, Tom Phillips Keiser Phillips Associates tphillip~k.pa.aero +20b-284-6994 IMPORTANT INFORMATION ABOUT THIS COMMUNICATION This electronic communication (including any appended material) is intended solely for the use of the person or entity to which it is addressed. Because the communication may contain information that is confidential, privileged, or legally exempt from disclosure, you are prolubited from reading, disclosing, repro~ucing, distributing, disseminaring, or od~erwise using the communication if you are not its intended recipien~ Accordingly, if you have received this communication because of error or inadvertence on our part or on the part of one of the recipien~s, we ask that you please, for your own protecrion, immediately novfy the sender by electronic communication immediately delete this message from your system. Please note that electronic communication has been used to exped.ite delivery of information and, as a consequence, the communication may have not been subjected to out customary intemal review. DO NOT RELY on professional recommendations ~fessional opinions, plans, specifications, or other instruments of professional service that are delivered electronically. Any such material may have been corrupted by ~ronic delivery bugs. RELY ONLY on the hard copy that we will issue to you by mail or delivery service. 08/04/2005 Kenai ~Viunici al Air ort _.P__..~.- Supplemental Planning Analysis Kenai Municipal Airport Mission and Vision Statements - INTRODUCTION The purpose of this action is to have the City Council adopt a Mission Statement, supported by a statement of "Key Strategic Directions," and Vision Statement for the Kenai Municipal Airport as a reflection of City policy. Airports represent different things to different people. To most, airports are where one goes to catch an airplane to begin most long distance business or vacation trips. To others, the local alrport is a base to store and fly their personal airplane or to learn how to fly. And for others, the airport is a fuel stop on the way to somewhere else. The military and flight schools o~en use local airports to practice takeoffs and landings. Clearly, airports play a variety of roles in our state transportation system. In order to move forward with the strategic planning process, and the creation of an airport business plan, it is important for the City of Kenai to have a clear understanding of the role the Kenai Municipal Airport currently plays as a transportation resource for the community. It is also ~ust 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 city, To this end, the consultant team involved in the Kenai Municipal Airport - Supplemental Plarlning Analysis, would like to recommend that the City Council 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 deternvning the most effective use of an airport's investment and capital opportunities. It is a document that shapes all other plans: facilities development, personnel, financlal and so on. The underlying framework of the strategic plan is to assess the airport with~n 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 industr}~, the airport's customer base and root-cause analysis; that is, understanding the causes of trends that have been identified. Internal Activities include operating activities, organization, s~ategy and staff. Financial Targets relate to return on investment, operating margins, capital intensity revenue growth, and cash flow. Simply put, strategic planning determines where an organization is going over long-term, how it's going to get there and how it'll know if it got there or not. The focus of a strategic plan is usually on the entire organization, while the focus of a business plan is usually on a particular servlce or program. Keiser Phillips Associates luly 22, 2005 Kenai Municipal Airport ~ Supplemental Planning Analysis PURPOSE The purpose of preparing a strategic plan is to: l. Clearly define the purpose of Kenai Municipal Airport and to establish realistic goals and objectives consistent with that mission in a defined time frame within the airport's capacity for implementarion. 2. Communicate 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 key priorities. S. Provide a base from which progress can be measured and establish a mechanism for informed change 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 purpose of developing a list of key strategic directions is to infer some order of prionties 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 a~'~ '' ' ' '' 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 cargo airport ' ' ' ~ ' . . . . . . . . . . ... . . • , . . . . . . . . ... . ' + ' Pursue service value and operational e~cellence for all airport stake holders. • Promote community economic growth through encouragement of air charter activity, floatplane facility improvements and tourism development and other air transportation related initiatives . . . , . . . . . . . .. . . . .. . . , .Deve o airport lands far uses which are c:ompatible with airport a~erations and add value to_the airport. Keiser Phillips Associates 2 July 22, 2005 Kenai ~tun~ci al Air ort Supplemental Planning Analysis ~ . . . , . .. AY1A!'Yfll1 LIfA • ~ • I .-_ • Partner with the community to develop programs that enhance economic growth and uali of , q ~Y life ~ . ~~~~~ ... When creating this mission statement and list of key strategic 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 also given to the importance and convenience havin consistent and fre uent scheduled air service in Kena' g q i as an alternahve to a three to four hour drive to Anchorage.-1t sl~ould be noted that 'ust because on.e ~ e af aviation activi is not (isted amon the ke strate ic ~ . irections for eYam (e recreational eneral aviation does not mean that that articular activitv is to be l;nored, but ol~lv that other activities ~r~av be of ~reater importance. Keiser Phillips Associates 3 July 22, 2005 Kenai Municipal Airport ~~ Supplemental Planning Analysis ; - VISIUN 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 ~ ce=with scheduled p~ger and rar~o air carriers serving multiple destinations,_ ' _' ' ' ... . . ' • supported by a well managed landside development t~ro~r~am 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 Municipal Airport and alert the community and stakeholders to needed change. ACTION PLANNING 'The Action Plannin~ portion of the strate~ic plan is based around the concepts of ~oa(s, objectives and strate~ies. Goals can be defined as a statement of the lon~-term results_tl~at management expects to achieve at Kenai Munici~al; ~~hile ob~ectives are specific accomplishments to be achieved alon~ t_ he wav to obtaining the lon~-term Qoals. Both the ~oals and the objectives must be in keepin~ ~~ith the airport's missian and vision statements. Strate~ies are the actual actions empla,yed to achi~ve the air~ort's various ~oals and objectives. T}~is ~ortian of the ~lan is still in deveiopment and is contin e~ nt upon the approval af an airport mission statement and vision statement. Once the airport mission statement and vision statements are approved, a series of goals a~~d abjectives will be developed that will recon~mend specific actions that ~vill need to be implemented. For exam~(e, a goal uf the airport derived tram the mission statement may be to: "Maintain the ~inancial Viability of the Air~ort''; ~~~hile a key objective associated ~~ith this ~oal is to " Adopt ~irport management business practices to co~l~pl,y ~4~ith F~A requirement~ and established U1duSt1'V practi.ces." Another oa~ i mav be to: `''Viaintain the Ahilit,y~ ot' the Airport to Accommodate Lon -t~, erm Aviation Demand", with a corres~ondin~ ob,jective to: ``Adopt and implement an communi , land use plan that protects th~ air~ort from encroachment of incompatible uses.'' - - Keiser Phillips Associates 4 July 22, 2005 __ - KENAI MUNICiPAL AiRPORT Supplemental Planning Assessrnent Phase 2: Airport Land Use Plan AIRPORT LEASING PRQGRAM 1AIRPORT REGULATI4NS CHANGE lMPLEMENTATI4N DISCUSSiQN July 26, 2005 Airport Commission Work Session I have completed most of the research and anaiysis work related to the City of Kenai's airport land leasing program and airport regulations. The next majorstep is implementation 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 stimuiate 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. In 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. Land within the Reserve would be made available for lease, but never sold. Airport land outside the reserve could be sold or leased at the Cit 's discretion with the Y 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 Peninsula Borough to obtain an exemption from borough platting requirements for all land within the Airport Reserve. Since the land will never be sold and all land uses will remain underthe City's direct supervision as airport operator, there is no need for Airport Reserve lands to be platted. Eliminating the platting step would reduce the time required to issue a lease and significantly increase the City's flexibility in establishing and changing lease lot dimensions to meet the changing needs af existing lessees and new applicants. If the City obtained the exemption, some KMC changes will likely be necessary to establish basic survey requirements and a procedure for making lease lot d~mension decisions. Discussion Question: Is the City willing to pursue this course of action? 3. New Land Rental Rate Settinq 1 Ad~ustment Program. UUe have recommended that the City establish, at least for land within the Airport Reserve, a new system for 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 implement a shift to this new rent adjustment system? 4. Appraisal Review bv the FAA. We have recommended the City stop the existing practice of submitting lease appraisals to the FAA for approval. The staff of the FAA, Alaska Region, Airports Division has informally expressed a reement with this 9 recommendation. This would result in a saving of time and money for both the City and the FAA, but it would not relieve the City of its obligations under AIP 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 Length 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 airport 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 atl the way out to 55 years, which is substantially longerthan the airport industry norm of 25 to 35 years. The rural airport regulations were adopted to provide for terms up to 55 years in response to a statute passed in 1996 [AS 02,15.090(c)J. That law rovides air ort lessees with an almost P p 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 guidelines 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 financing of lessee- constructed improvements. Discussion Question; Should we draft a set of revised lease term uidelines 9 and recommendations for appropriate KMC revisions? 6. Municipal Code I Lease Provision Chanqes. Since the KMC includes some specific requirements for airport leases, changing the City's lease form would re uire ~ ~ ,. q 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 sess~on, I will outline my change recommendat~ons. Discussion Question: Shall we draft KMC and lease provision changes as outlined? 7. Airport Regulation Changes. The City's existing airport regulations are in need of fairly extensive clarification and updating, especially in the areas of - aircraft registration; - aircraft operations; - vehicle operations; and - general information. ln 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 user fees into a singie, 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 Manager on Jul 27th to obtain , Y ~nput from them on how the current regulations are enforced and which provisions the , , l~ see as obsolete. After the meeting, I will draft recommended regulation revisions. Discussion Question; Do City Council /Airport Commission members have any suggestions for regulation changes? ~ ~ 8, Buildin S ace to 0 en S ace Relationshi , I was ask ' N e~ t~ ~r~vi~e recommendations regarding the minimum amount of open space required to ade uatel . , , , , 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 th~t ~ras the most successful (for both the state and the lessees) was: Total buiiding square footage (a!i floors) may not exceed 35% of the totai 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 significantly 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 administratively for many years whenever lease applications and tenant construction proposals were considered. Discussion Question: Would the adoption of this guideline be useful at Kenai Municipa! Airport? 9. Airport Land Development Insentives. Previously, we explored alternatives for the City to provide airport land development incentives to tenants without violating FAA requirements. 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 sugges#ion was to use funds from the City's airport land system trust fund to construct basic infrastructure for lease lots, such as structural gravel fill, access road, sewer 1 water extensions, etc. The City's investment would be recovered through a rent surcharge over a reasonable period of the lease term. Discussion 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 parties who want to provide aviation services on the airport. Minimum standards often include such things as minimum lot and building sizes, hours of operation, insurance requirements, required services to be provided, minimum staffing levels, and lease applicant experience and financial quali~cations. In short, minimum standards establish the threshold entry requirements for anyone who wants to provide aeronautical services on an airport. They also set the standards for continuing service by existing aviation service providers. Minimum standards provide a uniform basis for evaluating an aeronautical applicant's 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 airport operator in complying with their obligations under AIP grant assurances regarding 4 airport users. That is, the obligations to establish "fair, equal, and not un'usti , , , „ , , 1 Y discriminatory requirements for aii users of the airport and to allow the use of the airport "by ail classes of aeronauticaf use on fair and reasonable terms without discrimination". Adopting minimum standards are a"best business practice" for an air ort o erator. „ P p Minimum standards are common at airports in the Lower 48. However, to m . , , , , ~ 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 function. The KMC includes some features of a minimum standards document, such as uniform lease application processing procedures, insurance requirements, and lease requirements. However, KMC does not encom ass all the p features necessary to function as minimum standards. Discussion Question; Should we draft minimum standards forthe Cit ? Y 11. Airport Zone. Previously, we have recommended the adoption of a broadl ' « ' ~ ~ , ~ defined Airport Zone to accommodate all potential airport-related land uses within the Airport Reserve. In its role as landlord, the City has direct control over an air ort , , , p tenant s use of land. Considering that and the fact that land within the Air ort Reserve . p would never be sold, there is no real need to apply conventional zonin ciassifications , g and procedures to the Airport Reserve. Discussion Question: Should we draft specific recommendations for an Air ort P Zone? 12. Dele ation of Authorit and Res onsibilit for the Air ort. One of the most universally accepted principles of organizational efficiency is to dele ate authorit and . .. g Y responsibility to the lowest com et v The CEO of a Fortune 500 cor oration P may be a completely nt accountant and typist, but keepin the cor oration's ~ . , . , g P books or typing his own management pol~cy directives would not be the hi hest and , , . , ,. 9 best use of his time. Delegating the responsibility for these duties to others allows the CEO to devote his full time to the leadership functions that only he can erform. . P Following the same example, the CEO knows nothing about the hi hl s ecialized field , , 9YP of market analysis. Were he to attempt to do his own market anal sis work the results Y ~ for the company would be poor. On the other hand, takin the trainin necessa to 9 9 ry become fully competent in the market analysis field would leave some of his essential CEO duties undone. 4pera#ing airports has become an increasingly complex and s ecialized business since p the federal government transferred ENA to the City of Kenai in 1963. S ecialized , , , p knowledge and focus is necessary to remain current in the: - changing federal regulations forAlP grants, airport operations, and aviation security; - rapid shifts within the commercial aviation industry; - advances in airport technology, and ~ - airport marketing techniques. 5 Many municipai governments have found it impossible, within their normal administrative framework, to achieve the speciaiized 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 fortheir local airports. Six of the airports incfuded in the ENA comparison study ~Juneau, Pendleton, Pullman, Walla UUalla, Vllenatchee, & Yakima) have gone through this kind of transition. The Kenai Municipal Airport may not yet have achieved a high enough business volume or traffic levei 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 ta say that those involved in the existing system are incompetent or doing a poor job. But, it is 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 delegation I reorganization based on best business practice concepts is presented below. Discussion Questions: Does the City wish to explore the delegation concept presented below? Or, another delegation concept? Should we draft a more detailed delegation / re-organization recommendation and transition outline? Conceptual Delegation ! Reorganization of Authority & Responsibility for the Airport. CitY Council. Regarding the airport, the Council would retain final decision authority for: - The airport operating budget; - The airport capital improvement project (CIP~ budget; - Airport Master Plans and land use plans; - Airport-related changes to the KMC; - Land rental rate policy ~Rent ad justment methodology}; - Appeals of Airport Commission decisions; and - Revision and repeal of airport regulations. Reconstituted Airport Commission. The cornmission would change from an advisory group to a deliberative body with decision-making responsibilities. To avoid conflict of interest problems, this change would necessitate a membership with wider community representation than is required 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 airport. 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 by the Council; - Preparing and updating airport master plans and land use plans ~forap roval , P 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 Airport Reserve, including approval I rejection of lease applications, lease amendments, lease assignments, subleases, and lessee construction proposals; and decisions related to lease terminations; - Adopting land rental rates using methods established by the Council; - Adopting / changing airport user fees; - Hearing appeals of Airport Managerdecisions; and - Make a!I land use decisions within the Airport Reserve. ~Note: This would involve a transfer of land use authority from the Planning & Zoning Commission, but arrangements could be made for the Airport Commission to receive advice from the City's Planning & Zoning administrative personnel.) Airport Manager. Conceptual new delegations to the Airport Mana er include: 9 Designated point of contact for all land lease applications, lease amendments, lease assignments, subleases, and lessee construction proposais;* Primary responsibility for negotiating the terms of land leases and lease amendments with applicants ~with assistance from the City Attorney);* Responsibility for lease premises inspections and lease enforcement;* *NOTE: This does not necessarily mean the airport mana er or the mana er's , 9 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 managerwould, underthe general direction of the Air ort , , , , , , , p Commission, provide direction for the actions described. 7 Suggested by: Administration CITY OF KENAI ORDINANCE N0. 2114-2005 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, AMENDING THE KENAI MUNICIPAL CODE BY ADDING 22.05.105 ENTITLED "TEMP~RARY AIRPORT LAND SALE MORATORIUM" TO IMPOSE A TEMPORARY MORATORIUM ON THE SALE OF CITY LANDS WITHIN A PROPOSED AIRPORT RESERVE ZONE, WITH THE EXCEPTION THAT THIS MORATORIUM SHALL NOT APPLY TO LANDS ALREADY LEASED WITH A RIGHT OF PURCHASE. WHEREAS, the Kenai Municipal Airport owns a large area of land in and around the kenai Municipal Airport; and, WHEREAS, the Kenai Municipal Code currently makes much of that land available for purchase; and, WHEREAS, the Kenai Municipal Airport is currently in the process of having a supplemental planning assessment done to make recommendations regarding the long-term development and viability of the airport; and, WHEREAS, one of the preliminary conclusions of that study is that airport land located in proximity to the Kenai Municipal Airport should not be sold in order to reserve it for future airport development; and, WHEREAS, the consultants have developed a preliminary map of a proposed airport reserve in which airport land would not be sold. However, the boundaries of that map will not be finalized until the conclusion of the supplemental planning assessment later this year, and, WHEREAS, is it in the best interest of the City of Kenai and Kenai Municipal Airport to protect the area which may be included in the airport reserve from further dilution by land sales during the period in which the supplemental planning assessment is done; and, ~VHEREAS, certa.in current leaseholders have a contractual right under their leases and KMC 22.05.040(c) to purchase their leased land for fair market value under certain conditions and that right cannot be unilaterally revoked by the City of Kenai; and, WHEREAS, it is in the best interest of the City of Kenai and the Kenai Municipal Airport to impose a temporary moratorium on lands sales within the preliminaiy boundaries of the airport reserve until such time as the supplemental airport assessment can be completed and implemented. ~ Ord. No. 2114-2005 _ Page 2 of 2 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL 4F THE CITY OF KENAI, ALASKA that KMC 22.05.105 is adopted as follows: 22.05.105 Temporarv Airport Land Sale Moratorium A temporary moratorium is herebY im osed on all the sale of all citv lands within the ~~ort reserve area shown on Appendix l.__Thls moratonum shall last until Mav 1 2006. Anv leases entered into durin~ the period of this moratonum with the Citv for lands within the airport _.__ reserve area shown on A,ppendix 1 shall not include the ri~ht or option to purchase the proper~tv. This moratorium shall not applv to current leaseholders havin a contractual ri ht to urchase their leased ro e for fair market value under the terms of their lease or KMC 22.05.040(cl. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17~ day of August 2005. PAT PORTER, MAYOR ATTEST: Carol L. Freas, City Clerk Introduced: August 3, 2005 Adopted: August 17, 2405 Effective: September 17, 2005 ATTACHMENT A ORDINANCE N0. 2114-2005 June ~ ~,~uv~ To ~Vhom It May Concern; I Lauri Bourdo-Winter would like to enter into an agreement to set up a mobile massage chair at the Kenai Municipal Airport. The mobile massage chair will be setup and taken down each day I am doing business. The location requested is marked on the map (see attached). The hours of business will be determined by flights, approximately 30 hours a week, on a month-to-month basis. Clients will be charged $1.00 per minute and specials will be offered to personnel working at the Kenai Municipal Airport. The use of utilities will not be needed. I am proposing to pay 10% of gross earnings. Liability insurance of $1,000,000 will be provided paid by me. I can be contacted at 2b2-83b3 or 252-3606. ~ , Sincerel , .. . G~~GZI, ~ ~ Lauri Bourdo-Winter 345 W. Beluga Soldotna AK 99669 F M ~ o , ~ ~ S~IO1.Ld~1.~IQOW I~ e 7~~~~ ~dNIW2l3.L dS.L ,L~10d~11~' ~ i~~x~~~~ ~-, ~ ~ ~ , ~ ~ ( ~ ~ ~ ; I I ~ ~ I ( I ~ I N ~ ~ I Q ~ l~f M I I I ~f Ml ( a ~ I ~ ~ I ~ Q I ~ N ~ i I o ~ 0 ~ ~ I " . N ~ ~ I n I N I I ~ I 0 I ~ O N I ~ 0~ I 0 ~~ 0 0 N V N N / I / m N m ~ A ~ ~ N ~ N A313 . ~ ~ II II ' I) ° II ~ II 0 . ~ ~ .~~od~iv ~bai~i~nw ~dN~~ II U 'I N V N I ~ I ~ I ~ I I ~ • / / / • / ~ ~ I ~ m ~ ~ a ~ / I~ ; `~ j~ •~~~ ~ ~~ ~ • ~ ~~ z ~Z~ ~i ;_ ~ S ; : ° ~W ac ~ ~' ~ , 5 No i , , - Zt < ~- NUSAbO.'1'1 .3.)'...51 ; '~;~;,~ ; .. ~. ~~,,.,..:,.~ , w a ~ ~ O (~ ~ ~~ ~ ~ ~ 0 , _ ~/~, _ ~ - ~1 p AGEHDA KENAI CITY COUHCIL - REGULAR MEETING JULY 20, 2005 ?:00 P.M. KENAI CITY COUNCIL CHAMBERS http: f ~vwvw.ci.kenai.ak,us ~ ITEM A: CALL TO ORDER 1. Pledge of Allegiance 2. Roll Call 3. Agenda Approval 4. Consent Agenda *All items listed with an asterisk (*) are considered to be routine and non- controversial by the council and will be approved by one motion. There will be no separate discussion of these items unless a council member so requests, in which case the item will be removed from the consent agenda and considered in its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC C~MMENTS (10 minutes) ~ ~ 1. Todd Eberhardt Co ~ , pper River Seafoods -- Dock ~el r~ • ITEM C: UHSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM E: REFORTS OF KENAI CONVEHTIOH 8~ VISITORS BUREAU BOARD AND KENAI CHAMBER OF CONJ[MERCE ITEM F: PUBLIC HEARINGS 1. Ordinance No. 2107-2005 -- Increasing Estimated Revenues and ~~ Appropriations by $65,812 in the Senior Citizen Special Revenue ~nd 6~-Co~ . . . . . and Senior Center Kitchen Capital Fro~ect F~nd for Kitchen Remodel. ~ ~/3/0~` a. Substitute ~rdinance No. 2147-Z005 •- Increasing Estimated Revenues and Appropriations in the Senior Citizen Special Revenue Fund and the Senior Center Kitchen Capital Project ~.ind for Kitchen Remodel. ~, 2. Ordinance No. 2108-2005 -- Amending Portions of Kenai Municipal Code, Title 6 Entitled, "Elections." ~, 3. Resolutioa No. 2005-34 -- Declaring Equipment, Supplies, and ~'~~~ °~ Materials Surplus or Obsolete. ~ ~ ~ ~ ~,~~~ ~. 4. Resolution No. 2005-35 -- Amending the Description of the Minimum Charge in the Public Utility Regulations and Rates. ~~~ ~ ,~ ~ /~~ ~ 5. Resolutioa No. 2005-3b -- Approving a Contract to Blazy Construction, Inc. for the Project Entitled Kenai Senior Center Kitchen Addition / Renovation - 2005 for the Total Amount of $361,000. ~~,~~ 6. ITEM G: 1. ITEM H: ,~'%~ ~ ~. ~/~ ~'`~ ~ ~~c;l~ - ~~~ ~ 91~~ ITEM I: /`~~°~ l. ~~~Cp~' 2. ~~ LIQU~R LICEHSE RENEWAL -- WITHDRAWAL OF PROTEST Roy Dale Howard d f b/ a Kenai Joe's -- Beverage Dispensary MINUTES *Regular City Council Meeting of July 6, 2005. OLD BUSII~~ESS Discussion -- Dock Boat Exit Road/ Land Trade and Sale with The Conservation ~`und NEW BUS~~ESS Bills to be Ratified Approval of Purchase Orders Exceeding $2, 500 3. *Ordinance Ho. 2109-2005 -- Increasing Estimated Revenues and Appropriations by $51,491 in the General ~und for a Juvenile Justice Grant From the State of Alaska to be Passed Through to the Boys and Girls Club of the Kena.i Peninsula. 4. *Ordinance No. 2110-2005 -- Finding that Certain Foreclosed Property, Described as Lot 1, Block l, Thompson Park Subdivision Addition No. 1, 3920 Togiak Street, (Parcel No. 049-130-14) is Not Needed for Public Purpose and May be Sold. ~'~~~ 5. ~~ ~g ~~6 g/~ . 9 Dr~,~p~ ~9 ~0 ~ ~~ 7. ITEM J: 1. 2. 3. 4. 5. 6. ~~ ~ , ~ ~~ ~~ ~~ ~l~rn~. ~,t-~'~ B Approval -- Extension of Construction Schedule/ Lot 8, Block 2, Cook Inlet Industrial Air Park -- Julie Latta, Lessee. Discussioa -- FY 2006 Designated Legislative Grants D~scussion -- Schedule Strateg~c Planning Session COMMISSIOH/COMMITTEE REPORTS Council on Aging Airport Commission Harbor Commission Library Commission Parks & Recreation Commission Planning 8~ Zoning Commission ~ ~ . ~~~ ~~ ~ ~ y . -J~ ~~~~i ~ ~~~ , ~ 9~ ~~ r~. S ~~~ ~ ~~ -~ ~ y c „ o~iG/?/?+~/ ~~'~~`~ / I~-u~ ~ ~~~~y~~ ~~~ ,,~ ~ , 1 1~ 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Arctic ~JVinter Games d. Stranded Gas Committee ITEM K: REPORT OF THE MAYOR ITEM L: ADMII~TISTRATION REP4RTS 1. City Manager 2. Attorney 3. City Clerk ITEM M: DISCUSSION 1. Citizens (five minutes) 2. Council EXECUTIVE SFSSION - None Scheduled ITEM N: ADJOU~F~HMENT AGENDA ITEM A: KENAI CITY COUHCIL - REGiJLAR MEETING AUGUST 3, 2005 ?:00 P.M. KEHAI CITY COUNCIL CHAMBERS http :1 / www. ci . ken ai . ak. u s CALL T4 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 counc~l member so requests, in which case the item will be removed from the consent agenda and considered ~n its normal sequence on the agenda as part of the General Orders. ITEM B: SCHEDULED PUBLIC COMMENTS (10 minutes) ITEM C: UNSCHEDULED PUBLIC COMMENTS (3 minutes) ITEM D: REPORTS OF KPB ASSEMBLY, LEGISLATORS AND COUNCILS ITEM E: REPORTS OF KEHAI CONVENfiION 8~ VISITORS BUREAU BpARD AHD KEHAI CHAMSER ~F COMMERCE ITEM F: PUBLIC H~GS 1. Ordinance No. 2107-2005 -- Increasing Estimated Revenues and Appropriations in the Senior Citizen Special Revenue F~nd and the `~ Senior Center Kitchen Capital Project ~,ind for Kitchen Remodel. Clerk's Note: Ordinance No. 2107 2005 was substituted and postponed ( , , , . , at the Juty 20, 2005 counc~i meettng. A mot~on to adopt the ordinance ~s on the table.) 2. Ordinance No. 2109-2005 -- Increasing Estimated Revenues and ~' ~ ~ ' ' Justice Appropnat~ons by $51,4911n the General ~ind for a Juverule Grant From the State of Alaska to be Passed Through to the Boys and Girls Club of the Kenai Peninsula. 3. Ordinaace No. 2110-2005 -- Finding that Certain Foreclosed Property, ~(. ... .. Described as Lot 1, Block l, Thompson Park Subd~v~sion Add~t~on No. 1, ~ 3920 Togiak Street, (Parcel No. 049-130-14) is Not Needed for Public Purpose and May be Sold. ~~ 4. Resolution No. 2005-36 -- Approving a Contract to Blazy Construction, Inc. for the Project Entitled Kenai Senior Center Kitchen Addition/Renovation - 2405 for the Total Amount of ~361,000. (Cterk's Note: Resolution No. 2005-36 was post~oned from Juty 20, 2005 councii meeting. A motion to approve the resolution is on the table.) .~• S. Resolution No. 2005-3? -- Authorizing the Exchange of 93.13 Acres of Property Owned by the City of Kenai and Valued at ~90,000 for $10,000 Plus a 6.42-Acre Parcel Owned by The Conservation Fund and Valued at $80,000. ITEM G: MINUTES 1. *Regular City Council Meeting of July 20, 2005. 2. *Special Council Meeting of July 15, 2005. ITEM H: OLD BUS~~FSS ~~'~~ l. ITEM I: 1. ~~~r~ 2. ~~ 3. 4. Discussion -- Conoco/ Phillips Multipurpose Facility Naming Proposal. NEW BUSII!IESS Bills to be Ratified Approval of Purchase Orders Exceeding $2, 500 *Ordinauce No. 2111-2005 -- Increasing Estimated Revenues and Appropriations by $6,512.22 in the General F`und for ponations Made to the Officer John Watson Memorial F~und to be Used for the Town Clock. *Ordiaaace Ho. 2112-2005 -- Amending KMC 14.22.010 to Allow Seasonal and Temporary Food Service as an Allowed Use. Footnote Attachment 5. *Ordinance No. 2113-2005 -- Amending the Land Use Table at KMC 14.22.010 to Allow Retail Businesses Such as Gift Shops and Coffee Shops in the Education Zone as a Secondary Use. Footnote Attachment 6. *Ordinance No. 2114-2005 -- Amending the Kenai Municipal Code by Adding 22.05.105 Entitled "Temporary Airport Land Sale Moratorium" to Impose a Temporary Moratorium on the Sale of City Lands Within a Proposed Airport Reserve Zone, With the Exception That This Moratorium Shall Not Apply to Lands Already Leased VVith a Right of Purchase. Attachment ~~;~~7. Approval -• Special Use Permit/ Kenai Rotary -- Big Tonka Toy Event/Industry Appreciation Picnic -- Soccer Field Improvements ~,~'~~ ' -- 8. Discussion FY 2006 Designated Leg~slat~ve Grants J//` ~ ' ~~ (Cterk's Note: This item was postponed from the Ju1y 20, 2005 eouncit meeting.) ~ 9. ~~~i~ /!i~ ~r i Discussion -- Schedule Strategic Planning Session ~~ fo~; ~~ ~/~~~ ~ - (C1erk s Note: This item was postponed from the Juty 20, 2005 council meeting.) ITEM J: COMMISSIONI COMMITTEE REPORTS 1. Council on Aging 2. Airport Commission 3. Harbor Commission 4. Library Commission 5. Parks & Recreation Commission 6. Planning 8~ Zoning Cornmission 7. Miscellaneous Commissions and Committees a. Beautification Committee b. Alaska Municipal League Report c. Arctic Winter Games d. Stranded Gas Committee ITEM K: REPORT OF fiHE MAYOR ITEM L: ADMINISTRATION REPORTS l. City Mana~er 2. Attorney 3. City Clerk ITEM M: DISCUSSION l. Citizens (five minutes~ 2. Council ~~UTIVE SESSION -- Personnel Matter/ Separation Agreement of Former City M anager. ITEM N: ADJOURHMEHT r, . j. ~ Kenai Municipal Airport Enplanements J U LY 2006 10,860 GRANT - ss9 6.16% - ERA -1 Q,191 93.84% 2005 Monthly Enplanements Month ERA AVIATION GRANT 2005 Total AVIATION CHANGE FROM 2004 2004 Jan 6, 023 0 6, 023 -303 6, 326 Feb 5, 525 0 5, 525 -391 5, 922 Mar 6,184 0 6,184 191 5,993 A r 5, 569 0 5, 569 -49 5, 618 Ma 5,908 66 5,974 274 5,700 Jun 6,480 318 6,798 -l1 6,869 Jul 10,191 669 10,860 206 10,654 Au 0 8,945 Se 0 6, 838 Oct 0 6,489 Nov 0 6,245 Dec 0 6,410 Totals 45,580 1, 053 46, 933 S1, 009 *- ERA had 9 charters for an SBS function on the Peninsula GRANT AVIATION started service May 16, 2005 .~/ ^ ena~ Municipal Airport FLOAT PLANE BASIN ACTIVITY 2002-2005 ~~~~~~~~.~~~~~~ ~~~~~~~~~~~~ OPERATIONS ____________ ~~~~~~ ______ ~~~^ ___. ______________ Month 2005 2004 2003 2002 APRIL 2 0 0 0 I MAY 114 99 86 94 JUNE 317 161 158 223 JULY 327 428 259 345 AUGUST 342 287 233 SEPTEMBER 134 215 153 OCTOBER 40 63 37 NOVEMBER ~,.,;. Closed Closed 10 - ~~~~r~-~~ ~. ~. ~ ------------ - *not reported ----------------- - ---. - ______________ FUEL SALES ____________ ______ ___. Month 2005 2004 2003 2002 MAY $1,035 $452 $835 $98 JUNE $3,101 $2,209 $1,391 $1,986 JULY $3,461 $2,095 $1,773 $2,757 AUGUST $2,041 $2,513 $2,419 SEPTEMBER $792 $2,219 $983 OCTOBER $26 $263 $65 : ~ ~~~ '. ~'.~'~~Y'~~'~k;~i~L~ .~ ~~T.~~°P~,,~~L `S`. .. . ~ ~~ i~~l~IIY~~S~Y~~ w:~.~=R'iM~~~ ~ .. '\~< . ~ ~ i ' ~<~. ~<~M. ~ ^. ~~~~ ~~ Slips Rented Private 12 Commerical 0 Rev 8l2003 ~, Rebecca Cronkhite From: <Maverick.Douglas@faa.gov> To: <carl siebe@dot.state.ak.us>; <troy_larue@dot.state.ak.us>; <Bill_ohailoran@dot.state.ak.us>; <jeremy_wornali@dot.state.ak.us>; <anna walker@dot,state.ak.us>; <gordon_keith@dot.state.ak.us>; <andrew niemiec@dot.state.ak.us>; "Lundeby, David A." <LundebyDA@ci.anchorage.ak.us>; "Rebecca Cronkhite" <rcronkhite@ci.kenai.ak.us>; "Mike Carney" <mcarney@borough.ketchikan.ak.us>; <morton_plumb@dot.state.ak.us>; <Allan heese@ci.juneau.ak.us> Cc: "Jumao-as, Alex B." <Jumao-asAB@ci,anchorage.ak.us>; <byron.k.huffman@faa.gov>; - <judy.heckl@faa.gov>; <john.s.duncan@faa.gov>; <roger.a.motzko@faa.gov>; <david.epstein@faa.gov>; "Ric Barnett" <ric barnett@dot.state,ak.us>; <debbie.roth@faa.gov>; <david.g.wahto@faa.gov>; <stephen.powell@faa.gov> Sent: Monday, August 01, 2005 5:18 PM Subject: Vehicle Pedestrian Deviations (VPDs) on the Rise! ~ All Concerned, Runway Incursions hit an all-time high during the month of July 2005. At this moment , we are in jeopardy of exceeding the total number of Vehicle and Pedestrian Deviations (VPDs) given for calendar year 2004. As the FAA Administrator (Marion Blakey) expressed this morning during her monthly teleconference, we (FAA, Airport sponsors, aviation groups, i.e.) need to increase our campaign over the next couple of months to prevent or reduce the number of VPDs across nation; thus providing a fertile ground for increase/enhance safety in the aviation and public arenas. I know we have engaged in a vigorous campaign with the state, local community and public/ private agencies to bring about positive change on the VPD issue during the year; and over the past eight months, we have been very successful as a team towards reducing the number of VPDs in the Alaskan Region. However, the current trend shows the reported number of VPDs across the nation is on the rise. This is not a positive indicator for the nation or the Alaskan Region because it decreases the probability of airports maintaining the minimum level of aviation/public safety for aircraft operations. For the record, we know it is a tough job maintaining control of vehicles and pedestrians on airports because an airport is a complex place to conduct business. However, it is critical to airport operations that everyone gets involved and assist the airports in reducing VPDs. Requesting your strongest support to educate the public, airport tenants, vendors , and airport operations personnel on the importance of adhering to airport vehicle operations policies and air traffic control instructions when operating on an airport. Also, when VPD violators show a total disregard for state, local, or airport policy involving vehicle and pedestrian operating policy on an airport, recommend using enforcement action to the fullest as authorized in state and/or local statues. Please give this email your widest dissemination; and thanks for all of your support on this VPD matter throughout the year. Call~sign:Maverick 8/2105