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07. Resolution 4470 - Amending Airport FeesREPORT TO: FROM: SUBJECT: MEETING DATE: BACK GROUND: N Mayor Bill Boharski and Kalispell City Council Michael Baker, Director of Parks & Recreation Glen Neier, City Attorney Chris Kukulski, City Manager Kalispell City Airport - Revised Fee Schedule May 17, 1999 Upon first review by Council, changes are made pursuant to Councilman Norbert Donahue's recommendations, and recommended by Airport Advisory Board. A review of statewide fees and G.A. Airport's charges was utilized as a basis for this recommendation. RECOMMENDATION: Adopt draft fee schedule as proposed by Airport Advisory Board. FISCAL EFFECTS: Promote development and stimulate revenue for the Kalispell City Airport ALTERNATIVES: As suggested by Council. Respec fly submitted, Michae Baker, Director of Parks Chris Kukulski, City Manager Report Compiled May 6, 1999 Attachments - May 5, 1999 Proposed Fee Schedule - Kalispell City Airport Post Office Box 1997 • Kalispell, Montana 59903-1997 Telephone (406) 758-7700 • FAX (406) 758-7758 RESOLUTION NO. 4470 A RESOLUTION REPEALING RESOLUTION NO. 3773; REVISING THE FEE SCHEDULE FOR USE OF THE KALISPELL CITY AIRPORT; AND SETTING AN EFFECTIVE DATE. WHEREAS, the City of Kalispell established the fees for use of the Kalispell City Airport through Resolution 3773 on December-21, 1987; and WHEREAS, the Airport Advisory Board has determined that the rates established in Resolution 3773 are in need of updating. BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL, MONTANA, AS FOLLOWS: SECTION I. That Resolution 3773 is hereby repealed by revising the fee schedule for the Kalispell City Airport, as follows: (A) A User Fee of $50.00 per year shall be assessed against all persons, firms, corporations, partnerships, associations or entities who utilize the Kalispell City Airport on a regular basis as a place of storage or operation. (B) A Commercial Fee of $75.00 per month shall be assessed against all persons, firms, corporations, partnerships, associations or entities who utili-ze the Kalispell City Airport on a regular basis for commerce or profit. (C) A Tie -Down Fee of $15.00 per month or $2.50 per day, whichever is less, for utilization of Kalispell City Airport aircraft tie -downs. (D) A Bare Ground Lease Fee of .075� per square foot shall be assessed to any Fixed Based Operator leasing bare ground with the intent to park aircraft and tie - downs. All bare ground leases with FBOs will have an annual renewal date. 4470 airport fees.wpd 1 (E) All suppliers of gasoline or aviation fuel utilizing Kalispell City Airport facilities shall pay to the City the sum of .054� per gallon of gasoline or aviation fuel as metered from their (F) For improved real property on the Airport grounds (`improved property- being defined as real property on which an aircraft hangar exists or which is in the process of construction), a ground lease of .151� per square foot per month multiplied by 150% of the building footprint shall be assessed against all persons, firms, corporations, partner- ships, and/or associations owing such improvements. All leases shall be for a term of 20 years, with a renewal option. The annual lease fee will be subject to revision every three (3) years on March 1, which revision shall be adjusted in accordance with the Consumer Price Index - Urban Consumers (CPI-U) which is annually calculated by the United States Department of Commerce. (G) A $75.00 fee per month will be assessed against all persons, firms, corporations, partnerships, and associations who access the Kalispell City Airport with a through -the -fence commercial or profit operation, and a $50.00 fee per month will be assessed against all persons, firms, corporations, partnerships, and associations who access the Kalispell City Airport with a through -the -fence private operation. (H) For those lessees paying annual hangar lease fees in full, in advance, the City will provide a discount of five percent (51) from the total annual lease payment. (Only leases signed from July 1, 1999.) SECTION II. Resolution No. 3773 is hereby repealed in full. 4470 airport fees.wpd 2 SECTION III. All fees are to be paid to City of Kalispell, Finance Office. SECTION IV. This Resolution shall become effective as of July 1, 1999 upon its passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, MONTANA, THIS 17TH DAY OF MAY, 1999. Wm. E. Boharski Mayor Attest: Theresa White Clerk of Council 4470 airport fees.wpd 3 May 5, 1999 Proposed Fee Schedule - Kalispell City Airport (A) A User Fee of $50.00 per year shall be assessed against all persons, firms, corporations, partnerships, associations or entities who utilize the Kalispell City Airport on a basis as a place of storage or operation. (B) A Commercial Fee of $75.00 per month shall be assessed against all persons, firms, corporations, partnerships, associations or entities who utilize the Kalispell City Airport on a regular basis for commerce or profit. (C) A Tie -Doan fee of $15.00 per month or $2.50 per day, whichever is less, for utilization of Kalispell City Airport aircraft tie -downs. (D) A bare ground lease fee of 7.5� per sa.ft. per month shall be assessed to any Fixed Based Operator (FBO) leasing unimproved property on the -Airport grounds with the intention of providing aircraft parking with tie -downs. All bare ground leases with FBO's will have an annual renewal date. (E) All suppliers of gasoline or aviation fuel utilizing Kalispell City Airport facilities shall pay to the City the sum of .05� per gallon of gasoline or aviation fuel as metered from their pumps. (F) For improved real property on the Airport grounds ("improved property" being defined as real property on which an aircraft hangar exists or which is in the process of construction), a ground lease of per square foot per month multiplied by 150% of the building footprint shall be assessed against all persons, firms, corporations, partnerships, and/or associations owing such improvements. All leases shall be for a term of 20 years, with a renewal RM option. The annual lease fee will be subject to revision every three (3) years on March 1, which revision will be adjusted in accordance with the Consumer Price Index -Urban Consumers (CPI-U) which is annually calculated by the United States Department of Commerce. (G) A $75.00 fee per month will be assessed against all persons, firms, corporations, partnerships, associations, who access the Kalispell City Airport with a through -the -fence commercial or profit operation, and a $50.00 fee per month will be assessed against all persons, firms, corporations, partnerships, associations, who access the Kalispell City Airport with a through -the -fence private operation. (H) For those lessees paying annual hanger lease fees in full, in advance, the City will provide a discount of five percent (5%) from the total annual lease payment. (Only leases signed from July 1, 1999.) Effective date of July 1, 1999 All fees are to be paid to City of Kalispell - Kalispell City Airport Authority.