11-03-86 Parks Comm MinutesE
November 3, 1986 PARKS & PUBLIC LANDS COMMITTEE 4:15 P.M.
• Chairman Manning and Councilmen Palmer, Ruiz and Nystul in attendance.
Mayor Kennedy, City Attorney Neier, Parks/Airport Ad Hoc Committee members
Jim Fleming and Cary Weyrauch, Lee Tower and Jay Billmayer of the Airport
Board, and Larry Stockhill also present.
AIRPORT FACT-FINDING COMMITTEE REPORT - C. Palmer presented a letter
prepared by Jim Flemming and an outline of the general consensus of C. Palmer
and Cary Weyrauch. He stated that C. Nystul and he did not concur on all
issues. C. Palmer, to give some background, read from a.lease from the Airport
Association: "The association shall use said leased premises for the airport
purposes and except as provided herein shall have the sole and exclusive control
of said premises to that end including the right to impose charges, surcharges,
fees, rents of any kind and nature that the association shall in it's own
sole discretion, to be consistent with the improvement and the efficiency
and utilizatiion of such premises." It goes on to cover some specific items
and then says that they may sublet, after obtaining prior written approval
from the City, and upon such approval the City shall be bound by such leases
even though "this lease" may be terminated. He also pointed out Paragraph
9: "Said airport shall run the airport in such a manner to be ordinarily subject
to the City special assessments and shall pay City special assessment. and
shall be levied against the sublet property." He gave last year's figures
on this item: The balance on the runway was $155,971.16, accrued interest
to 6/30/86 was $18,076.20. Currently to date the balance is the same with
accrued interest $17,923.00. The revenues to date: $1800. Last year revenues
• received were $.3600. Obviously there is a gap. He stated that he was not
sure if everything was coming through the City, and another problem is that
according to State law warrants are to be paid off in the order that they
are registered. He said he was not sure whether they called normal operation
at the airport exclusive of the warrants, but he had a $49.00 (11/15/85),
$950.00 check, etc. - going way back. But because they must be paid off
in order they must start with the list of $15,000 checks to pay off Pack.
The revenue is creating a problem for the Airport Association - so because
of all of this it was determined that a fact-finding committee was needed
to make a report and recommendations to the Council. He stated in addition
that he felt it important that Paragraph 7 of the lease being used for hangers
be considered. The lease was approved by Attorney Neier and the City Council
approximately 3 years ago. It states that if the City terminates the lease
with the Airport Board the City is obligated to honor the existing leases
and to give a first right of refusal to the people that own the sites where
the buildings are; and if that is not a practical solution for the City to
sell, the City may elect to purchase the improvements to the properties at
a price set by a qualified appraiser. So this must be remembered as the facts
are considered. With that, the committee met with interested parties and
business people and have come today to share the resulting report.
Jim Fleming presented the attached report. He stated that the airport
is a very important part of Kalispell: convenience, easy access to recreation
areas, convention centers, business meetings, emergency situations. It also
has alot of problems. Properly managed it can be a beautiful airport and
a real assest to the City. His recommendation would be for the City to cancel
• the existing lease and replace it with an Airport Authority to handle financial
affairs and other matters concerning the airport. This should have an advisory
board to pursue different ways of solving problems and ways to enhance the
airport.
PARKS & PUBLIC LANDS COMMITTEE
• Airport Fact -Finding Committee Report
November 3, 1986
Page 2
C. Nystul felt that a public meeting should be set for public input.
He stated that he agreed basically with Jim Fleming's assessment but pointed
out that the Airport Board was a volunteer group working without pay, and it
has not worked and a way to solve this would be to assign the airport to a
City Department who would then work with an advisory board. He listed severe
problems as the liability because of no fences, City property in use for which
no revenue is received, etc. The entity must stand on it's own for maintenance
and operation. He felt that that the City itself was perhaps responsible
for some of the interest because it took three years to get the property listed.
But he felt that the airport was an assest and the City should work toward
a solution that will allow it to remain.
C. Palmer went through the fact finding report. A brochure showing the
benefits and the turn -over of dollars is to be made a part of the minutes.
This is one of the busiest airports in Montana. C. Palmer pointed out that
all thoughts on the issue were listed in the outline whether or not they all
agreed. He then turned the information over to the Parks Committee for their
action.
The Airport Board had not at this time had a chance to review the recommendations
made by the fact-finding committee. Lee Tower pointed out that the original
• lease also states that the airport will not be a burden to the taxpayers -
which has really hampered the airport. He has suggested that the City take
the airport on as a budget item for the difference between projected income
generation if the fixed base operators cooperated they would be happy to do
that. He stated that as far as being safe, they had a long range plan done
by a -Bozeman airport consulting -firm and it was ruled safe. There is not
an FAA official who would be willing to write a letter to that effect now.
- He felt having an organization and getting Community Development involved
was a good idea. Putting the airport under Community Development would show
solid community support and would possibly make other funding available.
He listed problems with lack of maintenance causing damage to props which
causes repair bills for the FBO's. He feels that the airport has every chance
of making money but it must be handled right - they have done the best they
can do under the lease and conditions that they have at present. There are
no teeth for enforcing. Parks Director Drent has a copy of a 1979 report
that may be helpful.
C. Nystul felt that C. Palmer should fill in the blanks and make his draft
into final form, and he would do the same with his, and they should be made
available to the Airport Board so that they could respond.
Jay Billmayer pointed out some justification for the facility by looking
at the secondary revenue coming back from taxes on improvements at the airport.
In otherwords, that is commercial property having value because of its use,
which is for airport purposes. This should be added to the plus side and
• should be considered also.
C. Manning stated that this is a large enough issue that the whole Council
should be involved and recommended setting a public meeting with the Council
as a Whole so that is everyone is informed up front. It was suggested that
PARKS & PUBLIC LANDS COMMITTEE
• Airport Fact -Finding Committee Report
November 3, 1986
Page 3
several more meetings of this size be held so that there was a firm
recommendation to take to the larger meeting. C. Palmer suggested using a
certain amount of discretion in the handling of this issue. C. Ruiz saw
no need in the whole Council re-hasing the work that has already been done.
Even a publichearingis not needed - but rather have the Committee prepare
the pros and cons for the Council. C. Nystul suggested that the Committee
meet at 3:30 P.M. on November 17 to receive input from the Airport Association,
the FBO's, and other interested pilots in regard to the Committee's response.
There will not necessarily be something settled on to take to the Council
that evening. It will be a joint Parks, Committee Development and Airport
Association meeting. Information should be mailed out to interested parties
and should include the minutes to this meeting, the final draft of the fact-
finding report and the brochure.
Frank Boylan pointed out that the airport was free and the Airport Board
originally took it over because the City didn't, want to look at it.
aj g
—•
0
•
• Sirn er e1.,
James Flem
Sept. 21: 19_E.
Mr. Ed Kenned •
mayor
City of Kalispell, Mt...
Dear Ed:
As -. memberof the committee to StudY and seeK out the Problems
of the Kalispell Cit' Airport south of town, I would liKe to
Point. ,=prat. several advantages of having an a.irport located cloy
to the cit,+.
In mt:• visits with the local businesses, I have found that then
feel the Kalispell City' Airport is _. great. asset to them such
(_., c nveniance to the shopping center_
(b! pasv
access to he ma.iCy rec� At i� �na.l. . !. - .
,.iea _i-ach _s sKiing, hunting, fishing, Pa.r'K ,
l.a.H':.__, ect.
Cc) conventions, business meetings, _at..
(d) emer2enaV situations such as, transfer of
hospital Patiant.s, search and rescue, forest
fires, -_t.
All of the above draw ma.nY People to our =it}• which in turn
boosts our cii:v"s economy:. In order- to maintain a sucse_sful
airport, it needs to be managed ProPer'lY to _._rare Keeping it.
safe .and financially% sound.
I would also IiKe to Point Out -, few of the Problems, as seeexist'bolo' with the Present Airport Association:
(a) financial.
(b} s_curit'
Cc) access to FErr'c and hanoars.
(d) m.aintennance of r unway. ta iwa.i'c, lighting,
.Gr_.__. ect„ -
(e) lease agreement._
(f ) mona9emenl_
In Sr_Imma.r'izingv l recommend the CitV of Kalispell. cancel it.'_
existing lease with the Kalispell HirPort Association, Inc. and
replace it with a Cit' Airport. AutlooritY which would manage the
financial affairs and other ma.t.ters concerning the Kalispell
CUP Airport. The CitY Airport RuthoritY should have an a.dt:isorY.
board to continue too Pursue waWs of solving the ProblemsI
r
mentioned earlier and find w:aYs of enhancing our cit-s"_ conom-V
in relation to our Ka.li_Pell City Airport.
FACT FINDING COMMITTEE: Cary Weyrauch, Jim Fleming
Paul Palmer, Gary Nystul
•
(fact finding report)
To help identify the Kal.i.sp.el.l. Airport's history, problem_,
bene:-i.ts and risk related to `__tin., wa have outlined as
follows:
(1) HISTORY
(a)
th•m airport was or-imn ted in
(b)
closed for seven _ ar . and . e _. _
(c)
letter frof;''. th FAA d.,_:te_i� sta. i.nq i. ';, was
unsafe because of the proximity to the city_
Larry Stock:hil.l ha._e.].ei_i;etr-
(d)
airport board F°;ai_'. f r'mud in March 196L
(fa)
Stockhi.l.iAviation purchased 2.5 acres of ground
from the city.- in _
(f)
Strand Aviation purchased ._. acre: of land in --,--`
(9)
volunteer- work: constructed ti= runway in
•
(h)
runway_._^---
resurfaced the runwayin 1585 with aobligation
to to the c.. _ some of the work perlor;med
was credited back: as advanced ground lease payment
(2) BENEFITS
(attached brochure)
(a)
immediate access to the city for business
(b)
gas tax revenue
-
W
commercial spin -oaf -
-
(d)
student access
(e)
tourism convenience -
.
(f)
forest service Bcc&E.s
(1) PROBLEMS
(a)
financial
(1) not funded by the city state or federal
_
(2) it is not servicing it'__ debt
(3) cannot be self-supporting, but it does appear
_
that the maintenance could be serviced by th"
-
currant cash flow
(b)
operation
(1) there is not a paid administrator-
(2) there is not a formal set of.rules and
regulations that are followed
(1) the board does not ch,.nge, the same people
continue to serve
•
(s) deferred maintenance
(5) ton many people operating as FBO's
(6) poorly written lease/long term obligation
for the city (7 cents a'sq. it. for 20 yrs.)
(7) commercial operation on leased land
(8) security, th-e nrr:pfz.-.+,.-.to h f td
-
Q) currently the F ',IJ's are being billed $300,00
-
- -
a month rah, c r he, arm n , . im to p o
•
W]
•
,, l_i 0) the airport board
I�.as. stated that with the
city inte ...ci_:.r __ :sewer �l line) and lack of
althorn to he`,ry Twon and collect is 'vah
difficult to make lon•', range plans
(4) Rasa::
(a) near city cent _r
(b) rep-orte�si*from one F _i that the airport was un5acW
the other felt it was safe
(c) two million dollar liability insurance may be
inadeel�_r.at .
(d) by not having the airport fenced, children and
couldanimals _ on the r,.,,.:ay during i.anni;:=
or takeoff f
r,-"r _ e that t - - . . ,,. which state`-
.._. ..hc- tr=ti"Pr t.h=:G i'Ir-. S'.�_�.t::h;li. he.� o-=ni.�_•� _-=
the FAA felt they lo_-avlory of .the airr.nQ,»;j_:
unsafe
(K finan_ial risk in the tact that the airport to
not servicing an obligation that will u.ltimatel^_,
be the taxpayers respTnslbil.ity
(5) RECOMMENDATIONS
Most ifnagry, t'. the safety
port.
_.:: ._ta,'_.ty o this a..r'.
should be determined once and for all by a
combination of FAA,,Montana State Aeronautics
Board and any other agency whose testimony
would be considered relevant in the event of
a liability suit. Presuming that the airport
will continue to operate, the following in cur
opinion wi.l.l he necessary to -gig,=e direction for
our community facility.
(a) have the city participate in the accounti.n;g and
collection of fees
(b) turn the organization over to the community
development office or parka committee `_o that
a paid administrator will have an influence or:
the management
(c-) organize an airport authority board that could
report and make recommendations to the f_Gff:i7r1 t1: is?@
of the council.
(d) review all leases for possible changes, if
permissible _
(ca) sell highway property or ground lease so that
there could be a perpetual cash flow
(f) follow and ravine the master plan
(g) airport access should be limited
(h) immediate maintenance of ground area, cut grass,
install better lighting
(i.) position for termination in the event the airport
cannot be financially supported, such as portable
hangars only
( ) in {•-._ event ,-r. cr•::: (^•) scown on Airport road
doas not sell, try for ground lease .
(k) fanning to be provided o: the city boundaries
(l) have review of all books and records, audited by
the city
(m) do not levy fees on FBOV ior access from their
property, however, the FSOW should pay for the
tie downs that are on city property as well as any
other area that they make use W. A fence would
provide control
The final drafts of the reports mentioned in
these minutes have not yet been made available,
nor has a copy of the brochure been obtained.
When these items are avaiable they will be
forwarded to you.
•
0
/ I -Jo- Zb
AIRPORT ASSOCIATIONS COMMENTS AND SUGGESTIONS
The investigation and comments of the Fact Finding
Committee appointed by the Parks Committee of the
Kalispell City Council are appreciated and well taken.
As chairman of the Kalispell City Airport Association
I suggest that any problems in operation of the airport,
by the Association, lie within the lease written by
the City of Kalispell, and under which the Association
must operate.
This lease allows for a lot of responsibility and alludes
a lot of authority. Seemingly enough authority to
operate, but there are no teeth attached to the lease
authority.
This lack of apparent authority, strengthened by the
attitute of some City departments, does not allow the
Association effective response to the various challenges
it's authority is subjected to.
I suggest that any operating systems that should arise
• from these efforts must include remedial systems and
implementation authority that is clearly understood
by all permenentaly involved in the operation. The
association cannot continue with it's only response
a confrontation of personalities, and jawbones.
SUGGESTIONS:
A. Rewrite the Association lease in a very careful
manner to acheive the following.
1. Proper authority in the association to handle
normal operations.
2. Reduce liability to the City of Kalispell that
may result from airport operation.
3. Improve the use of the airport, in any reasonably
manner, and it's contribution to the City of
Kalispell.
B. Rewrite the lease requiring the association to
contract with the Economic Developement Department
or some other agency for administration, but also
clearing up the authority and remedial action questions.
n
C. Using the Airport Association structure, create
• a bond issue to purchase existing F.B.O.Is and pay
off the runway paving. Consolidate the two F.B.O.Is
into one, operated by the Association directly or by
leases with a qualified third panty.
This arrangement must also include the implementation
authority required to assure pea^eful operation.
Any one of the above will solve most of the operating
problems. They will also encourage membership
involvement, and by doing so, encourage regular changes
in Association leadership.
Another consideration in rewritting the airport lease
might be a partial budget contribution by the City.
This would recognize the public nature of the
contribution made to Kalispell by the Airport. This
amount might replace the —contribution expected from
the various F.B.O.'s and not effect other sources of
revenue.
Kalispell City might also join with the Airport
Association to obtain Federal financing for needed
capitol improvements.
• Thank you for your time.
Sincerely,
H. Lee Tower
Chairman
•