12-01-86 Development Comm MinutesDecember 1, 1986 PARRS/COMMUNITY DEVELOPMENT COMMITTEES 3:30 P.M.
Chairmen Manning and Saverud and Councilmen Palmer, Schindler and Ruiz
in attendance. Mayor Kennedy, Ed Gallagher, Cary Weyrauch, Jay Billmayer,
Larry Stockhill, Mitch Steinburg, Dean Jellison (in Lee Tower's place), Mike
Strand and Roger Hopkins of the Daily Inter Lake also present.
CITY AIRPORT - C. Manning went over the list of items from the last meeting
which were to be provided for this meeting and also reviewed the Fact -Finding
Committee's Report. C. Palmer stated that it was not fair to ask a voluntary
board with no budget for accurate accounting. This should be channeled through
the City and the audit system because the City has the ultimate responsibility.
The auditors indicated after talking with their superior that they do not
do airports. The master plan has not been followed, but there was no revenue
to allow the association to follow it. Maintenance and upkeep: Dean Jellison
explained that for some time farmers would cut the grass for hay, but as the
land became carved up and there was no upkeep this became impractical. There
is no regular upkeep of City grounds. The FBO's have done their own maintenance
and upkeep as was needed for use or appearances or for special fly -ins, etc.
The wind sock is presently not lit. This is not a violation unless the airport
were on the FAA register, but could be a violation to individual pilots depending
upon conditions. The problem is with the wiring.
Access Fees: C. Manning asked for input on whether the FBO's should
pay access fess if they own their own buildings and land and use the airport.
The consensus seemed to be that if you were paying gas tax there should not
be an access fee. The situation was likened to the businessmen on Main Street
paying an access fee. The gas tax is always there and the income derived
fluxuates according to use. $3200 was raised last year, $1800 this year to
date. The gas tax level can become a competitive item. The County obtains
income from the airport by means of real estate and personal property taxes.
(FBO's at the County airport own only their furniture, nothing else). A percentage
of the County airport tie down fees go to the airport board. Dean Jellison
stated that the gas tax is collected by City Service and paid directly to
the City. It was unsure who collected and/or received the ground rent fees.
Tie down fees at the City airport have not been being paid. It is hard to
compare fees with other airports as each is structured differently.
C. Palmer suggested that the question to answer is what form of government
should handle the airport. If that question was settled the other questions
could be dealt with by the governing body.
Forest Service use of the airport was discussed. They are doing more
and more of their own flying but do not support the field in any way, and
in fact take away from free enterprise while using facilities supported by
free enterprise.
Who is the Airport Association? Dean Jellison explained that it was
a non-profit organization of varied membership. At this point there are three
active members: Lee Tower, Dean Jellison and Taylor. There has been
no effort to organize or collect dues for some years. Jay Billmayer said
that makes it easy to see why the FBO's don't want to write out $300.00/month
checks to something so nebulous. The upkeep is not done, the farmers won't
cut the grass for hay any more because it tears up their equipment, and then
plane owners don't want to tie down in high grass because of the danger of
fire. He also pointed out that of the tax revenues paid none reach back to
PARKS/COMMUNITY DEVELOPMENT COMMITTEES
December 1, 1986
Page 2
the airport. All goes to the County. He asked if an independent tax increment
districtcouldbe formed for the airport. The longer this type of action
is put off the less can be done because only improvements can be taxed.
C. Palmer explained that airplanes in the City are taxed at the district
levy minus the City's portion of the levy, with the result that the City
receives no revenue from the planes at all.
C. Schindler asked if there should be a user -pay system like the golf
course. Jay Billmayer pointed out that users are caught through the gas tax
charges. He also felt the City could not expect the FBO's to carry the brunt
of the burden. C. Schindler felt that the FBO's are different than the downtown
businessmen because the public uses the streets. Mr. Billmayer suggested
that when taxes are paid on airplanes the owners be asked where they are based
and a $50 fee be set aside to go directly back to the airport.
Liability policy: The Airport Association pays for a policy over and
above the City liability policy out of the gag tax revenues. - �+
Community Development involvement: Ed Gallagher was asked his reaction
to his department taking over the governing.of the airport. He listed the
problems that have been discussed and stated that it would be a nightmare
to monitor. .If Community Development was to take it over he would want answers
concerning the problems first, and suggested that the Association should come
forward first with a statement of how they were going to live up to the agreements
that are in effect. He asked what was factual and what was realistic. C.
Saverud felt that Community Development could help in the areas of helping
with the marketing of the property that is for sale, in billing procedures,
and as a contact point for the parties involved, but not as an organizing
association or to automatically find grants. He also asked if the City was
undermining the County airport (worst case scenario: if the major airlines
pulled out and the County couldn't pay their obligations). C. Palmer stated
that the County airport today was well-heeled and had no financial problems.
The discussion came back to the Airpott Association and it was explained
that originally it started with airplane owners or those interested in aircraft
(including banks, hotels, etc.) and that dues were paid to be part of the
organization. Why are "they" running the show? Because no one else will.
It was stated again that the airplane industry as a whole is down, the golden
egg is shrinking, and the FBO's can't solve the problems alone.
Dean Jellison felt that the user's pay idea is ideal. The current problems
are here because when the construction was done it was with the expectation
that it would be paid for by the sale of the property. If that can be accomplished
the Association can get back to the relatively minor items of maintenance
and operation. The fee system seems reasonable. He felt it would work if
the FBO's were cooperative, made payments,�monitored tie -downs, etc. He stated
that presently the FBO's will pay only if they know the other is paying. The
Association could sue but that is not the b�st solution. He stated again
that some staffing help other than volunteers in the area of notification
of meetings, minutes, etc. would be very helpful. Community Development could
help in the area of getting the airport into the FAA system. Immediate problems
are the agreements and getting cooperation. To depend on more members for
PARKS/COMMUNITY DEVELOPMENT COMMITTEES
December 1, 1986
Page 3
part of a long-range solution is not practical because membership is so cyclical.
He did feel that having a City Council representative on the association would
be a good idea. C. Palmer stated that he doubted the land sale would bring
in half of the debt owed. Cary Weyrauch stated again his disagreement with
user fees.
Jay Billmayer felt that a more democratic operation by the association
and by stopping the leaks in revenue the maintenance and operational items
could be handled. When asked if there was enough interest he said that the
local Montana Pilots Association is the largest in the state with 120 members.
Mike Strand said there was no gold mine to be tapped - the problem is a low
level of use. C. Palmer stated the problem again: Should the FBO's pay fees?
If so, by what authority can the Airport Association collect? Jay Billmayer
pointed out that the City has an airport with good paved runways and taxiways
at no cost. He asked if $10,000 a year could be set aside for the airport
and felt it would go a long way.
Maintenance: C. Manning asked if the City could help out by plowing
snow. Dean Jellison felt that if the City could help in the event of heavy
snows the association could find someone with a pick-up plow to do the rest
at a fraction of the cost.
There will be a another meeting on December 8 at 3:30 P.M. to continue
these discussions. Needed for that meeting is the following information:
1. City Attorney's input on the lease.
2. Maintenance and operation figures from Lee Tower.
3. Airport Association input.
4. What is required to get into the FAA system, including rules
and regulations.
Jay Billmayer indicated that the Montana Pilots Association had designated
a committee to make some recommendations and they should be available at the
December 8 meeting.
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