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H/8. Resolution 4804 - Airport FeesIRWIM SUBJECT: Post Office Box 1997 - Kalispell, Montana 59903-1997 - Telephone (406)'i • F Honorable Mayor and City Council Chris Kukulski, City Manager Kalispell City Airport Fee Schedule Change BACKGROUND: The objective of the Kalispell City Airport is to continue to provide safe and regulated aeronautical use for the benefit of all of the citizens of Kalispell. Since its inception the users of the airport have funded the airport. Leased income derived from hangars, aviation gas tax, user fees and commercial fees generate the airport funds. Proceeds of this revenue has provided insurance, maintenance and upkeep of the lighting and radio system at the airport. Airport fees have not changed since May 1999. Over the past year, administrative duties have been stepped. Increased time was spent on billing, user fee monitoring, and correspondence. This has resulted in a greater compliance rate, however, administrative requirements have been high. User fees, which in the past consist of 8% of the annual budget require more than 75% of the collection administration due to the lack of monitoring capabilities and the tranient nature of those who are to pay them. The Airport Advisory Board after much consideration has requested the fee schedule submitted in Resolution No. 4804. RECOMMENDATIONS: Council adopt the resolution allowing for changes in Kalispell City Airport fees. FISCAL EFFECTS: Overall revenue increase of $1,000. These changes are not reflected in the proposed 2003/2004 budget, however an amendment will be submitted. ALTERNATIVES: As recommended by Council. Respectfully submitted, Chris Kukulski City Manager RESOLUTION NO.4804 A RESOLUTION REPEALING RESOLUTION NO. 4470, REVISING THE FEE STRUCTURE FOR USE OF THE KALISPELL CITY AIRPORT AND DECLARING AN EFFECTIVE DATE. WHEREAS, on May 17, 1999 the Kalispell City Council passed and approved Resolution No. 4470 in which it repealed Resolution No. 3773 determining the need to update the fee structure previously established; and WHEREAS, the Kalispell City Airport Advisory Board reviewed the fee structure established by Resolution No. 4470 and determined that after four years the rates should be updated; and WHEREAS, the Kalispell City Airport Advisory Board is requesting that the fee structure be revised as set forth below. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF KALISPELL AS FOLLOWS: SECTION I. That Resolution No. 4470 is hereby repealed by revising the fee schedule for the Kalispell City Airport, as follows: (A) A Commercial Fee of $150.00 per month shall be assessed against all persons, firms, corporations, partnerships, associations or other legal entities who utilize the Kalispell City Airport on a regular basis for commerce or profit. The Kalispell City Airport Manager shall have the discretion to raise this fee (within 10% per annum) for all commercial users. A ten (10%) percent late fee will be charged for all commercial fees not paid by the 15t' day of each month. (B) The City of Kalispell shall request responsible bids, in an amount of no less than $1,000.00 per annum, from fixed based operators located at the airport for an annual fee to be paid to the City of Kalispell for a three year franchise privilege of managing tie downs and receiving tie down fees. The rate of the tie -down fees charged by the franchisee must be pre - approved by the Airport Manager. In the event no bids are presented to this offer, the Kalispell City Airport Manager, or his designee, may charge tie down fees at the rate of $20.00 per month per plane. (C) All suppliers of gasoline or aviation fuel utilizing Kalispell City Airport facilities shall pay to the City the sum of $.06 per gallon of gasoline of aviation fuel as metered from their pumps. The Kalispell City Airport Manager shall have the discretion to raise this fee the sum of no more than one penny per gallon each year beginning July 1, 2003. (D) 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 $.16 per square foot per year multiplied by 150% of the building footprint shall be assessed against all persons, firms, corporations, partnerships, associations or other legal entities owning such improvements. All leases shall be for a term of 20 years, with a renewal option. The Kalispell City Airport Manager shall have the discretion to raise the annual lease rate (within 3.5% per annum) for all leaseholders as needed. A ten (10%) percent late fee will be charged for all lease payments not paid 15 days after which it is due. SECTION II: All fees are to be paid to the City of Kalispell, Finance Office. SECTION III: This Resolution shall be effective as of July 1, 2003 upon passage by the City Council. PASSED AND APPROVED BY THE CITY COUNCIL AND SIGNED BY THE MAYOR OF THE CITY OF KALISPELL, THIS 16TH DAY OF JUKE, 2003. Pamela B. Kennedy Mayor ATTEST: Theresa White City Clerk KALISPELL CITY AIRPORT ADVISORY BOARD RESOLUTION NO. 100 A RESOLUTION RECOMMENDING TO KALISPELL CITY COUNCIL AMENDMENTS TO THE FEE STRUCTURE FOR USE OF KALISPELL CITY AIRPORT. WHEREAS, on May 17, 1999 the Kalispell City Council passed and approved Resolution No. 4470 in which it repealed Resolution 3773 determining the need to update the fee structure previously established; and WHEREAS, the Kalispell City Airport Advisory Board reviewed the fee structure established by Resolution 4470 and determined that after four years the rates should be updated; and WHEREAS, the Kalispell City Council should be advised by the Kalispell City Airport Advisory Board to revise its fee structure as set forth below. AOW, THEREFORE,BE IT RESOLVED BY THE AIRPORT ADVISORYBOARD OF CITY OF • • SECTION I. Resolution 4470 should be repealed and a resolution should be passed and approved by the Kalispell City Council to revise the fee schedule for the Kalispell City Airport, as follows: (A) A Commercial Fee of $150.00 per month shall be assessed against all persons, firms, corporations, partnerships, associations or other legal entities who utilize the Kalispell City Airport on a regular basis for commerce or profit. The Kalispell City Airport Manager shall have the discretion to raise this fee (within 10% per annum) for all commercial users. A ten (10%) percent late fee will be charged for all commercial fees not paid by the 1501 day of each month. (B) The City of Kalispell shall request responsible bids, in an amount of no less than $1,000.00 per annum, from fixed based operators located at the airport for an annual fee to be paid to the City of Kalispell for a three year franchise privilege of managing tie downs and receiving tie down fees. The rate of the tie -down fees charged by the franchisee must be pre - approved by the Airport Manager. In the event no bids are presented to this offer, the Kalispell City Airport Manager, or his designee, may charge tie down fees at the rate of $20.00 per month per plane. (C) All suppliers of gasoline or aviation fuel utilizing Kalispell City Airport facilities shall pay to the City the sum of $.06 per gallon of gasoline of aviation fuel as metered from their pumps. The Kalispell City Airport Page - 1 of 2 Manager shall have the discretion to raise this fee the sum of no more than one penny per gallon each year beginning July 1, 2003. (D) 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 $.16 per square foot per year multiplied by 150% of the building footprint shall be assessed against all persons, firms, corporations, partnerships, associations or other legal entities owing such improvements. All leases shall be for a tenn of 20 years, with a renewal option. The Kalispell City Airport Manager shall have the discretion to raise the annual lease rate (within 3.5% per annum) for all leaseholders as needed. A ten (10%) percent late fee will be charged for all lease payments not paid 15 days after which it is due. SECTION U. All fees are to be paid to the City of Kalispell. PASSED AND APPROVED BY THE KALISPELL CITY IRPORT ADVISORY BOARD AND SIGNED BY THE PRESIDENT OF THE BOARD, THIS // DAY OF JUNE, 2003. �Scd t Ric President ATTEST: Pati Heath Assistant to the City Manager Page - 2 of 2