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2. Airport FencingCity of Kalis ell Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758 REPORT TO: Honorable Mayor and City Council FROM: Chris A. Kukulski, City Manager SUBJECT: Airport Fencing MEETING DATE: September 5, 2000 BACK GROUND: During the past two Airport Advisory Board meetings the fence surrounding the airport as been a primary topic of discussion. Specifically, the board has had a concern with the Rosauer's project. Attached are correspondence between the City and Rosauer's pertaining to the fence. Rosauer's is unwilling to share in the cost of building a fence contiguous to their property. Since the discussions with the board, several people have witnessed drivers and pedestrians crossing the airport illegally in order to gain access to Rosauer's. This is a dangerous liability to both the City and Rosauer's. The cost of constructing a fence that meets FAA standards is estimated at $6.55 per foot. This based on adding 10% to a bid received for the same work in 1998. In order to deal with the immediate fencing near Rosauer's we could place approx. 1,100 feet of fence at a cost of $7,205.00 The Kalispell City Airport/Athletic Complex Redevelopment Plan lists fencing around the airport as a short term priority and long term goal of the urban renewal district. It was expected that the tax increment funds from the district would pay for the fence. However, if you review the attached letter that I received from our finance director you will see that the airport TIF is approx $26,883 in the red. We do have an accounts receivable for $98,000 from last year and are soon to have an additional accounts receivable from the same project(Southfield tower). To date, the City has been unsuccessful in collecting this debt. Therefor, we do not have the money necessary to make the improvements. RECOMMENDATION: None at this time FISCAL EFFECTS: The fencing near Rosauer's is estimated to cost $7,205; in the 1996 Airport Redevelopment Plan the total cost of fencing the perimeter of the airport was estimated at $136,200 ALTERNATIVES: As suggested by the Council. Res ectfully submitted, Chris A. Kukulski City Manager Page 1 of 1 Report compiled September 22, 2000 C�of Kalispell Post Office Box 1997 • Kalispell, Montana 59903-1997 • Telephone (406) 758-7700 • FAX (406) 758-7758 July 6, 2000 Mr. Larry Geller Rosauer's Supermarket Post Office Box 9000 Spokane, WA 99209-9000 Dear Mr. Geller: From recent discussions with legal counsel, I have learned that Rosauer's legal duty to its "business invitees" could be extended beyond its parking lot facility to the City of Kalispell airport property; and, that primary liability for personal injury or property damages arising out of an accident on airport property could be imposed upon Rosauer's if the accident victim were determined to be a "business invitee" of Rosauer's at the time of such an accident. Legal counsel have also informed me that the City of Kalispell could be joined as a defendant with Rosauer's in a court action for the recovery of damages in a personal injury or property damage claim under a "joint and several liability" theory which permits damage claimants to include any "deep pockets" entity remotely connected with an incident. In order to minimize, if not eliminate, the risk that your store operations have brought to the City airport property, I believe that it is incumbent upon Rosauer's and the City of Kalispell to cooperate in the construction of a fence along the west boundary of your property which would restrain, if not prevent, your "business invitees" from entering upon the airport property. The City of Kalispell is willing to share in the cost of the construction of such a fence. I have been informed that, in the negotiation of the sales agreement for the property, it was understood that Rosauer's would fence the west boundary property line; but, that this understanding was not included in the final sales agreement. Rather than attempting to deal with this matter on a contractual basis at this time, I believe we should proceed in a cooperative effort to protect the safety of both your customers and those lawfully using the airport property for its intended uses through the construction of a fence along the west boundary of your property. Mr. Larry Geller, Rosauer's Re.: Fence Near Airport July 6. 2000 Page Two I would appreciate hearing from you at your earliest opportunity so that we can move forward with the construction of the fence as soon as possible. Sincerely, i1alpffl"T City Manager City of Kalispell 001D C,O MT ANY July 11, 2000 Chris A. Kukulski City Manager City of Kalispell P.O. Box 1997 Kalispell, MT 59903-1997 RE: Fence between Rosauers Supermarket and City airport Dear Mr. Kukulski: JUL 14 2100 BY•rrrrrrrrrrrrrrrw... Larry Geller and Dik Salsbury of Rosauers Supermarkets Inc. have forwarded your letter dated July 6, 2000 concerning construction of a fence between our respective properties to me to respond. You may recall that RSI, LLC doing business as Rosauers Supermarkets Inc. conveyed their interest in Lot 2 of Daley Field Subdivision to Kalispell Investment Group, LLC, and it is therefore a matter between Kalispell Investment Group and the City of Kalispell as to construction of the referenced fence. On June 2nd of this year I wrote a letter to your Mr. Richard Amerman, Assistant City Engineer, with a copy to yourself, advising that it is our opinion that the City of Kalispell is responsible for construction of the fence. In support of our position I'm also providing you a copy of Mr. Amerman's letter dated April 2, 1999 to Ian J. Bailey, who was our civil engineer on the development of the Rosauers store, wherein Mr. Amerman clearly states that the City will be constructing a fence along the airport property this spring (which I would interpret meant the spring of 1999). Given the site construction work, we understand why the City delayed construction of the fence until the site work and perhaps the building was completed; however, both Kalispell Investment Group and Rosauers Supermarkets are again encouraging the City to complete its responsibility. Further, we would appreciate you or another representative of the City of Kalispell keeping us apprised of the work status and completion of the fence. Sincerely, KALISPELL INVESTMENT GROUP, LLC ald L. Hagood, Managing Member GLH/lmc cc: Mr. Larry Geller, Rosauers Supermarkets Mr. Dik Salsbury, Rosauers Supermarkets Mr. Kit Querna, Randall & Danskin, P.S. Professional Real Estate Services Washington Mutual Financial Center, West 601 Main Avenue, Suite 400, Spokane, Washington 99201-0674 (509) 838-6541 FAX (509) 458-4014 of Kalispell Post Office :•x 1997 - Kalispell, Montana 59903-1997• 41 11 41 Date: September 22, 2000 To: Chris Kukulski From: Amy Robertson RE: Status of Airport Funds The City Airport fund currently has a balance of $1,099.20. Our one big bill in that fund is for the Airport Liability Insurance (not covered by MMIA). That bill is about $2,800 and due in February. Any increase in this budget would require a public hearing and an amendment to the budget. The Airport Tax Increment Fund currently has $19,190.19 with an escrow payment of $18,073 due in December on the Timmrick Property. The fund also owes the General Fund $40,000 which was advanced to complete the signal at Rosauers. I anticipate 151 half tax revenue of about $12,000 in December and/or January. We do have a receivable of $98,000 on the Southfield Park property but the timing of receiving those funds is uncertain. We did budget $50,000 for redevelopment (based on receiving the Southfield Park money) which gives us budget authority to transfer the appropriation without need of a budget hearing. It would be possible to Advance money from the General fund depending on how far Council wishes to run the Airport Tif Fund in debt.