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Home My WebLink AboutORDINANCE 2028-2003Suggested by: Airport Commission/ Administration CITY OF KENAI ORDINANCE N0.2028-2003 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, ADOPTING KMC 21.05.045 TO ESTABLISH AN OFF-AIRPORT GROSS INCOME RENTAL CAR FEE FOR OFF-AIRPORT RENTAL CAR COMPANIES USING THE KENAI MUNICIPAL AIRPORT FOR THEIR BUSINESSES. WHEREAS, the City of Kenai is the owner and operator of the Kenai Municipal Airport; and, WHEREAS, the Kenai Municipal Airport is financed and managed under policies and practices designed to ensure that it is and will always be self supporting and will not require expenditure of general fund money to support it; and, WHEREAS, these policies and practices require that the costs and expenses of the Kenai Municipal Airport be paid by the users of the facilities who enjoy the commercial opportunities that such facilities create; and, WHEREAS, there are presently three (3) on-airport rental vehicle companies operating under concession agreements at the airport, each of which pays rent plus ten (10%j of their gross revenue for the privilege of operating on the airport; and, WHEREAS, off-airport rental car companies are benefiting from the traffic generated by airport facilities but are not participating in the costs and expenses of operating the airport; and, WHEREAS, since off airport rental car companies do not pay a gross revenue fee for use of the airport, they have an incentive to remain an off airport operator rather than become an on-airport concessionaire and pay a ten (10%) percent gross revenue fee; and, WHEREAS, the rental car companies operating in the terminal desire an even playing field for competitive pricing; and, WHEREAS, many airports throughout the nation require off-airport vehicle companies to pay a percentage of gross revenue fees for the right to conduct airport operations; and, WHEREAS, it is necessary, reasonable and appropriate to establish anoff-airport vehicle rental fee. Ordinance No. 2028-2003 Page 2 of 2 NOW, THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA that KMC 21.05.045 is adopted as set out in Attachment A. PASSED BY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this third day of December, 2003. ATTEST: Sheryl Padilla, Act~.ng C~.ty Clerk Introduced: November 19, 2003 Adopted: December 3, 2003 Effective: January 3, 2004 (10/29/03 sp) 21.05.045 OFF-AIRPORT VEHICLE RENTAL PERMIT (a) To operate a vehicle rental business on the Kenai Municipal Airport, a person who does not have a concession to operate a vehicle rental business in the terminal building must hold a current vehicle rental business permit issued under this section. (b) A person must submit an application for a vehicle rental business permit in writing to the airport manager and include: 1) A list of vehicles that the applicant proposes to operate on the airport under the vehicle; 2) A description of the services that the applicant proposes to offer under the permit; 3) Any application fee established by the City; (c) The airport manager shall approve an application for a vehicle rental business permit unless the manager determines that 1) fihe applicant is i. In violation of a material term of a contract with the City; ii. In arrears to a payment (including City of Borough sales or property tax) or other financial obligation due to the City; or iii, In default of a material obligation under any lease, contract, permit or concession the City has issued to the applicant. 2) The proposed use would interfere with or is otherwise incompatible with the security, safety, maintenance, or operation of the airport; 3) The proposed use would violate an applicable FAA grant assurance or the City's obligations under revenue bonds; 4) The proposed use would result in a violation of applicable law; or 5) The proposed use is inconsistent with sound airport planning. (d) A decision by the airport manager to deny an application for a vehicle rental business permit must be in writing. (e) A vehicle rental business permit is not transferable and may not exceed a term of five years. (fl An off airport rental business permittee shall pay ten percent (10%) of gross revenue derived from rentals originating at or from the Kenai Municipal Airport. (gj Upon reasonable notice, the City shall have the right to audit a permittee's books and records regarding the permit for verifying the gross revenue. (h) A vehicle rental business permittee shall provide such evidence of insurance coverage for the permittee's operations on the airport as the airport manager determines appropriate. (i) A vehicle rental business permittee operating a vehicle on airport property shall keep the vehicle in safe operating condition. The airport manager shall order a permittee to remove from service any permittee vehicle the manager determines to be unsafe or otherwise in violation of this section. (j) A vehicle rental business permittee may park, wait, and drop off or pickup a passenger only at a premises or in an area the airport manager has designated for that purpose. (k) A vehicle rental business permittee may cancel a permit and cease operations at the airport at any time on written notice to the airport manager. Attachment A Ordinance No. 2028-2003 Page 1 of 2 (1) The airport manager shall, after written notice to the permittee, cancel a vehicle rental business permit and invalidate all vehicle identification issued to the permittee if the manager determines that the permittee 1) Is not in compliance with the vehicle rental business permit and has not corrected the noncompliance within 10 days after receipt of the notice; or 2) Has ceased vehicle rental operations on the airport. (m) Cancellation of a vehicle rental business permit by the airport manager must be in writing and state the reasons for the cancellation. (n) An applicant or permittee may protest the airport manager's decision to deny an application or cancel a vehicle rental business permit in accordance with KMC 14.20.290. (o) In this section, "gross revenue" includes, but is not limited to the following: 1) All monies paid or payable to the Permittee from a transaction initiated under an off airport vehicle rental business permit, regardless of either the assigned location of the rental-car or where the customer returns the rental car. 2) Charges for any service performed in, on or through the business conducted under this agreement, and includes all other income and proceeds from or incidental to any business conducted in whole or in part in, on or in connection with the rights granted under a permit. 3) Goods, work or services furnished by any person in lieu of payment in exchange for value received. 4) Sales or fees for automobile liability insurance and personal accident insurance. l (p) No deductions from gross revenue other than those specifically identified I below shall be allowed. 1) The amount of federal, state, borough or municipal sales or other similar taxes separately stated and collected and/or reimbursed from customers. 2) Any sums received from sales of capital assets. 3) Any sums received from insurance or other settlements from damage to automobiles or other property of the concessionaire, or for the loss, conversion or abandonment of such automobiles, or any charges collected from a customer for damages to the automobile rented. 4) Any sums received for loss damage waiver insurance. 5) Replacement fuel charges. (c~ In this section, "airport" means the area of land or water that is used or intended to be used for the landing and take-off of aircraft and includes its buildings and facilities such as the terminal, ramps, taxiways, parking lots and the float plane basin. Attachment A Ordinance No. 2028-2003 Page 2 of 2