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12-01-86 Parks Comm Minutes0 • u December 1, 1986 PARKS/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 dorW 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 district could be 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 gas 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 underminingthe 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 Airport 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 best 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 plow-ing" 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. ' ajg