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HomeMy WebLinkAboutResolution No. 2024-35KENAI CITY OF KENAI RESOLUTION NO. 2024-36 Sponsored by: Administration A RESOLUTION ADOPTING JOINT RESOLUTION NO. 2024-001 OF THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH AND THE COUNCILS OF THE CITY OF HOMER, KACHEMAK, KENAI, SEWARD, SELDOVIA, AND SOLDOTNA, SUPPORTING THE CITY OF KENAI SMALL COMMUNITY AIR SERVICE DEVELOPMENT GRANT PROPOSAL TO SUPPORT INCENTIVES AIMED AT DIRECT AIR SERVICES FROM THE KENAI MUNICIPAL AIRPORT TO SEATTLE/TACOMA AND THE LOWER 48. WHEREAS, residents of the Kenai Peninsula must travel through Anchorage when traveling by air outside of the State of Alaska; and, WHEREAS, travel times when driving to Anchorage range from two to as much as five hours in good weather conditions; and, WHEREAS, a recent study commissioned by Kenai Municipal Airport shows that the passenger market is sufficient to support nonstop flights to Seattle/Tacoma; and, WHEREAS, the benefits of adding direct flights from Kenai to the lower 48 include increased economic development, reduced traffic and congestion on Alaska Highway 1 and Sterling Highway corridors and less dependence on Anchorage Ted Stevens International Airport; and, WHEREAS, Joint Resolution No. 2024-001 support the efforts of the City of Kenai to apply for grant funding for the purpose of providing incentives aimed at direct air services from the Kenai Municipal Airport to Seattle/Tacoma and the Lower 48. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the Kenai City Council adopts and hereby authorizes the Mayor of the City of Kenai to sign Joint Resolution 2024-01. Section 2. That this Resolution takes effect immediately upon passage. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS 3RD DAY OF JULY, 2024. cfz.. . Brian Gabriel Sr., Mayor ATTEST: Michelle ne , MC, City Clerk New Text Underlined; [DELETED TEXT BRACKETED] CITY OF KENAI CITY OF SOLDOTNA CITY OF SEWARD CITY OF HOMER CITY OF SELDOVIA CITY OF KACHEMAK KENAI PENINSULA BOROUGH JOINT RESOLUTION NO. 2024-001 A JOINT RESOLUTION OF THE COUNCILS OF THE CITIES OF KENAI, SOLDOTNA, SEWARD, HOMER, SELDOVIA, KACHEMAK RESPECTIVELY, AND THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH SUPPORTING THE CITY OF KENAI'S SMALL COMMUNITY AIR SERVICE DEVELOPMENT GRANT PROPOSAL TO SUPPORT INCENTIVES AIMED AT DIRECT AIR SERVICE FROM THE KENAI MUNICIPAL AIRPORT TO SEATTLE/TACOMA AND THE LOWER 48. WHEREAS, Communities of the Kenai Peninsula are some of the most isolated in the country, separated from Anchorage Ted Stevens International Airport by distances ranging from 126.5 miles to as much as 226 miles; and, WHEREAS, travel times range from two to as much as five hours in good weather conditions; and, WHEREAS, the Kenai Mountains separate the population of the Peninsula from the rest of Alaska, hampering potential economic growth; and, WHEREAS, a recent study commissioned by the Kenai Municipal Airport shows that the passenger market is large enough to support nonstop flights to Seattle/Tacoma with more than 800 passengers driving between the Kenai area and Anchorage daily for flights; and, WHEREAS, the study indicated the average one-way fare for passengers within the Kenai catchment area is $389, well above the national average for air travel, and is likely suppressing travel to and from the Kenai catchment area; and, WHEREAS, the benefits from additional jet flights to Kenai are multifold including increased economic development in the Kenai Peninsula, reduced traffic and congestion along Alaska Highway 1 and Sterling Highway corridors and less dependence on Anchorage Ted Stevens International Airport. NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA: Section 1. That the City of Kenai and the Cities of Soldotna, Seward, Homer, Seldovia, Kachemak, and the Kenai Peninsula Borough, respectively, support the City of Kenai and the Kenai Municipal Airport's Small Community Air Service Development Grant proposal and the respective administrations are authorized to execute letters of support or other necessary documentation in support of the City's request for federal assistance to provide schedule air service from Kenai to Seattle/Tacoma and the lower 48. Section 2. That this Resolution takes effect immediately upon adoption by the City Councils of the City of Kenai, Soldotna, Seward, Homer, Seldovia, and Kachemak and the Kenai Peninsula Borough Assembly. Joint Resolution No. 2024-001 Page 2 of 3 PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, THIS XXND DAY OF XXXX, 2024. Brian Gabriel Sr., Mayor ATTEST. Michelle M. Saner, MMC, City Clerk PASSED BY THE COUNCIL OF THE CITY OF SOLDOTNA, ALASKA, THIS XXND DAY OF XXXX, 2024. Paul J. Whitney., Mayor ATTEST: Johni Blankenship, MMC, City Clerk PASSED BY THE COUNCIL OF THE CITY OF SEWARD, ALASKA, THIS XXND DAY OF XXXX, 2024. Sue McClure., Mayor ATTEST: Kris Peck, City Clerk PASSED BY THE COUNCIL OF THE CITY OF HOMER, ALASKA, THIS XXND DAY OF XXXX, 2024. Ken Castner., Mayor ATTEST: Melissa Jacobsen, MMC, City Clerk Joint Resolution No. 2024-001 Page 3 of 3 PASSED BY THE COUNCIL OF THE CITY OF SELDOVIA, ALASKA, THIS XXND DAY OF XXXX, 2024 Jeremiah Campbell., Mayor ATTEST: Liz Diament, City Clerk PASSED BY THE COUNCIL OF THE CITY OF KACHEMAK, ALASKA, THIS XXND DAY OF XXXX, 2024 Connie Isenhour., Mayor ATTEST: Laurie Wallace, City Clerk PASSED BY THE ASSEMBLY OF THE KENAI PENINSULA BOROUGH, ALASKA, THIS XXND DAY OF XXXX, 2024. Brent Johnson., Assembly President ATTEST: Michele Turner, CIVIC, Borough Clerk K.- N A. City of Kenai 1 210 Fidalgo Ave, Kenai, AK 99611-7794 1907.283.7535 ( www.kenai.city MEMORANDUM TO: Mayor Gabriel and Council Members FROM: Terry Eubank, City Manager DATE: June 27, 2024 SUBJECT: Resolution No. 2024-36 — Joint Resolution 2024-001 At the Kenai City Council meeting on June 19, Volaire Aviation Consulting presented the results of a Leakage and Retention Study commissioned by the Kenai Municipal Airport. The study reveals that the passenger market is robust enough to support nonstop flights to Seattle/Tacoma, with over 800 passengers driving daily to or from the Kenai area to Anchorage for flights. Implementing this project would reduce road traffic and provide direct travel options to Seattle. The introduction of jet flights to Kenai offers numerous benefits, including a significant boost to economic development in the western Kenai Peninsula, reduced traffic and congestion along the Alaska Highway 1 corridor, and decreased reliance on Anchorage Ted Stevens International Airport. However, the report also identified several challenges in attracting an airline to establish direct flights from Kenai to Seattle/Tacoma. These challenges include a current pilot shortage, increased costs, and fewer airlines. To help address these obstacles, the City's consultant identified a grant opportunity through the Small Community Air Service Development Grant Program (SCASDP). This program, funded by the Airport and Airway Trust Fund (AATF), provides financial assistance to small communities to enhance their air service. The AATF collects revenue from taxes on domestic flight tickets, international arrivals and departures, air cargo, plane fuel, and purchases in loyalty and frequent flier programs. In response, the Administration has reached out to the cities of Soldotna, Seward, Homer, Seldovia, Kachemak, and the Kenai Peninsula Borough for support through a Joint Resolution. Joint Resolution No. 2024-001 endorses the City of Kenai's application for SCASDP grant funding to provide incentives for direct air services from the Kenai Municipal Airport to Seattle/Tacoma and the Lower 48, aiming to enhance economic development and reduce traffic congestion. Your support is respectfully requested