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11-17-86 Parks Comm MinutesNovember 17, 1986 PARKS/COMMUNITY DEVELOPMENT COMMITTEES 3:30 P.M. • Chairmen Manning and Saverud and Councilmen Palmer and Nystul in attendance. Mayor Kennedy, Parks Director Drent, Ed Gallagher of Community Development, Dean Jellison and Lee 'lower of the Airport Association, Jim Fleming and Cary Weyrauch of the Fa t-Finding Committee, Mitch Steinberg of Rocky Mountain Avionics, Larry St,.,ckhill of Stockhill Aviation, Dick Brady, pilot, and Roger Hopkins of the Daily Interlake also present. Chairman Manning asked for input from the various entities present. Lee Tower offered written comments from the Airport Association along with some suggestions. He also stated that they felt nothing was wrong with the airport, but rather with the way the administration is being done. He went on to say that federal funding is available but some work needs to be done to qualify and an organization with more political coat is needed to deal with government funding. Mitch Steinberg stated that the AOPA has done a good job of getting money from that slush fund and the association should contact the legal committee of the AOPA to work for them. Chairman Manning asked Larry Stockhill for his reaction and he read from an article dated November 1985 in Montana In the Sky which states that State funds are available. Mr. Tower responded that the funds are available only for those airports in the plan and with matching funds. These funds apparently are for capital improvements only - not for maintenance and operation, which is where the Kalispell Airport has it's biggest problems. Mr. Tower said $17,000 to $19,000 is needed yearly with no overhead to iscover maintenance and operation and to build up the fund. Federal money is not always in the form of a grant, but may also be a low interest loan, in which case the Airport Association would have to ensure it for 20 years. He stated that the problem was with the FOB's not paying and the resulting confrontations. Chairman Manning explained that the first two phases for changes at the airport would he Recommendations #1 and Ile of Councilman Nystul's evaluation, and that #3 would come from the City Attorney. Mr. Tower asked how having the City take over the direct operation was going to solve the problems. C. Palmer replied that from the evidence the problem is a lack of authority and if a City department is responsible there would be jobs on the line. Mitch Steinberg recommended that if the City took over operation that they also use City crews to do the plowing, mowing, fixing lights, etc. Dean. Jellison stated that he has been a member since the original founding of the Airport Association and there have been many ups and downs. It has been operated purely on a volunteer basis with available money being used for the airport. He said it would work better if the City provided part-time staff assistance for minutes, notification of meetings, etc. He also pointed out that the original reason for the Airport Association was to relieve the City Council of the excess burden, and that is still a good idea and would work well with part-time staff assistance. The problem is that the Association has felt somewhat unsure of their standing because of the way the lease is written. In that area, the FBO's felt that the fee structure was such that they were bearing more of the burden than was fair and didn't pay, and the Association in t"rn felt they didn't have the authority to enforce the fees. The City taking over may not solve all the problems. One of the reasons for a separate, non-profit organization was to cushion the City from the liability aspect and it does tend to do that. PARKS/COMMUNITY DEVELOPMENT COMMITTEES • November 17, 1986 Page 2 Chairman Saverud sa'. that if it is in the City's best interest to take over the airport then C�unuunity Development is probably capable of doing that, but he is not convinced at this point that is the answer. If the Association provides liability insulation that must be considered. C. Palmer indicated that the legality of using tax funds for an association not directly connected with the City organization should be checked out. Chairman Manning felt that those most interested should be the ones to manage the airport. The problem again is the revenues to operate. Can the airport bail itself out? Would it be better to sell off the City property on Hwy. 93 or to lease it so as to provide ongoing revenue? Lee Tower asked if it would be possible to use the assets of the airport to float a bond to raise funds to buy out the two FBO's and then lease the operations to someone else as one FBO? C. Saverud asked if an Airport Authority rather than an association would give more teeth to the regulations. The County Airport Authority has taxing ability. C. Palmer asked how "teeth" were defined. Federal funds must go through a City department. There is some disagreement concerning FBO's and access, etc. Increasing some fees may cause a loss of use of the airport. The two things to be solved are the existing debt and the maintenance and operation. • He went on to give the example of Salem, OR where the same type of problems existed. They° turned the administration over to the Community Development, who in turn arranged for grants and got the airport into good shape, and then turned it over to a private enterprise to operate. Lee Tower brought up the subject of the ballfields and pointed out that the Association had that area for income possibilities before 1980. C. Manning felt it could be several years before that land was free again. Mr. Tower suggested the City pay the Association for the use of the land. He also complained that the new sewer line essentially removed from availability an area large enough for four hangers. The fee structure was discussed briefly: Mr. Tower stated that the newest hanger (Gardner's) is being charged 7C/sq. ft./year lease on the land with Gardner providing the hanger and improvements. Tie -downs are $50/year and the FBO's charge $15/month for them, but must maintain them and cover the liability insurance. The relationship between the Kalispell Airport Association and the County Airport Authority was questioned as well as whether the County had used all of the allowable mils and if they would help out the City airport. Mr. Tower said they were not interested as long as they have no authority over the FBO's. Larry Stockhill didn't agree. Monty Long may be able to add more information in this area. • The problem of overcharging the FBO's and not charging someone giving flight lessons out of a pick-up was brought up by Cary Veyrauch. Mr. Tower stated that the airport is a public utility and if someone had a better idea for fees they were open to it. PARKS/COMMUNITY DEVELOPMENT COMMITTEES • November 17, 1986 Page 3 Mayor Kennedy asked the Committee if he should sign the Gardner lease as requested by the Airport Association. C. Palmer raised the question of commercial use and the provisions of the lease agreement and read the portion of the lease dealing with "prior approval in writing" being required. The hanger is already built and ready to move into. The question is whether the City wants to allow the philosophy of commercial development. Does this structure meet the building code for a commercial enterprise, or just for a simple hanger? C. Palmer pointed out that if the City signs the lease it is bound by it, where if it does not the lease is the responsibility of the Airport Association. It was decided that the persons and businesses involved in this new hanger did not constitute another FBO, and that the question of competition to the FBO's was something that should be addressed. Mr. Tower pointed out that it really didn't make any difference if the City signed out not because the business was already in operation and they had to sign a longer lease for the financing. C. Palmer stated that the Airport Board should be put on notice that 7C/sq. ft. for 20 years should be reviewed. Mitch Steinberg said that every hanger at the airport generates income (either real or trade) and the Airport Association is not getting a portion. He went on to say that he could be based at the County airport but he chooses to be at the city and bring his business there (400 customer airplanes) because there is more traffic and it is closer to his home. • The following items are to be addressed and provided for the Committee: 1. City Attorney is to provide an analysis of the existing lease and its meaning. 2. Mayor Kennedy is to set up a meeting with the City Attorney and the Committee to discuss #1 . 3. Lee Tower is to provide a copy of the fee schedule and a projection of basic annual costs, life expectancy of maintenance, fencing costs, other improvement costs. 4. Lee Tower is to obtain from the Airport Association members a recommendation in response to these proceedings. The above information is to be available for a meeting of the Parks and Community Development Committees at 3:30 P.M. on December 1, at which time they will consider the information and prepare a recommendation for the Council. There will be a final meeting with all interested parties at 3:30 on December 8 to review the recommendation of the Parks and Community Development Committees that will be given to the Council on December 15. ICE SKATING AT WOODLAND PARK - After considering the lack of liability insurance coverage for the C-tv at this time the Committee voted unanimously • to recommend to the Council that the ice skating rink be opened as the ice permits and be properly signed giving notice to all persons that they are skating at their own risk. PARKS/COMMUNITY DEVELOPMENT COMMITTEES November 17, 1986 Page 4 NEW GRIFFIN FIELD - C. Nystul asked what entity should provide the figures for reimbursing the sewer and water utilities for a percentage of the extensions done in Begg Park, to be paid from the sale of Griffin Park. The consensus was that the Sewer and Water Committee should come up with the figures. SHADE TREE COMMISSION - The Committee felt that the Mayor should ask for volunteers and then select the members of the commission from the response.- BRUCKHAUSER POOL CONCESSIONS - C. Manning presented a letter from the Kats Swim Team requesting permission to operate the concession stand at the pool next summer. They realized approximately $1000 for this summer's work. The Parks Director and the Committee felt there would be no problem as long as the Kats were willing to accomodate the users of the pool. The Parks Director and the pool supervisor will meet and set a policy regarding concessions to present to the Committee. The pool supervisor felt that there was a need to control the type of items sold because of clean-up problems. ajg •