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07-11-16 City Council Work Session MinutesKALISPELL CITY COUNCIL WORK SESSION MINUTES JULY 11, 2016 View the minutes attached to the audio of the meeting at: http:/Ikalispell.com/mayor and city council/meetings.php A WORK SESSION OF THE KALISPELL CITY COUNCIL WAS HELD ON MONDAY, JULY 11, 2016 IN THE COUNCIL CHAMBERS AT CITY HALL IN KALISPELL, MONTANA. MAYOR MARK JOHNSON PRESIDED. COUNCIL MEMBERS JIM ATKINSON, SANDY CARLSON, KARI GABRIEL, CHAD GRAHAM, PHIL GUIFFRIDA, TIM KLUESNER, ROD KUNTZ, AND WAYNE SAVERUD WERE PRESENT. Also present: City Manager Doug Russell and Planning Director Tom Jentz. Mayor Johnson called the work session to order. DISCUSSION ITEMS 1. Urban Renewal Plan Update - Airport Discussion Russell reiterated the background and recent history of the airport and addressed some of the public comments previously received. Mayor Johnson remarked that, if there are no objections, he would like to reverse the usual order of business and open the meeting for public comment. There was no objection. Public Comment Bob Trent, 350 Lake Hills Drive, stated that he has been an airport user for 30 years; his whole family learned to fly at this airport, which is widely regarded throughout the state. He contrasted using Glacier Park International with the city airport and requested that council address measures that can improve the airport. Keith Robinson, 1503 4th Street West, remarked that an international airport does not mix with smaller aircraft and that airport improvements and not enlargements are required. Gene Thomas, 733 3rd Avenue East, noted that he has a business at the northwest end of the airport, and he does not want to see South Kalispell turn into 93 North. He said the airport is a nice open space and an asset to the community. Jack Lee Jones, 164 Pheasant Run, said he is a pilot who is based at the airport and it would be the death of common sense to close the airport. He said lots of businesses depend on the airport and it is a vital asset to the community. Christian Vondelius, 1245 3rd Street West, stated he is also a pilot and the airport is a valuable asset to the Flathead Valley. Kalispell City Council Work Session Minutes July 11, 2016 Page 1 Doc Harkins, 1246 6th Avenue East, lamented how much the valley has changed and said there is no right decision here; some people will be happy and some won't. He said he is discouraged because the airport is moving away from a local airport and toward larger planes. Tom Landon, Columbia Falls, pilot, remarked the airport is an economic asset for the community and state, and the decision whether to close it should be in the best interest of the city, county and state. Jamie Lauren, 29 8th Street East, commented that it is the financial information that should be focused on here and the numbers speak for themselves. He said he feels the operating losses are understated and the city's fiduciary responsibility is to the community; the airport is akin to a golf course and not an essential service. Bill Cox, 5014th Avenue East, stated he does not believe the airport is an economic asset to the city, but if it is important enough, pilots can fly into GPI. Scott Davis, 448 5th Avenue West, stated the Quiet Skies group has been watching this closely and the council has not been paying attention to the taxpayers and community. He remarked council previously bent over backwards to satisfy the pilots and the taxpayers are tired of it and have proven the airport is not worth it. Jeff Zauner, 37 Glacier Circle, remarked his greatest concern is the numbers on what it would cost to close the airport; he said he does not believe the estimates and asked what is the true cost to close it. He said he does not believe it will cost $3.1 million and that it is closer to $6 million. Zauner suggested establishing a steering committee to analyze the options. Fran Taber, 1245 3rd Street West, asked whether this is going to help the city or not, and commented the airport costs money to maintain and that a ton of tax money has already been spent. Dewey Swank, 275 Somerset, commented that flying is a part of his business that he can't live without. He said he represents the people that use the airport and his group wants to make an offer to take responsibility for airport management, operations and costs. Joe Unterremer, Chamber of Commerce, reaffirmed the Chambers' support for the airport, stating several member businesses are able to cover the state by using the airport. Council Discussion Mayor Johnson commented that council is where it is today due to a series of events, which he explained. Kluesner remarked the pilots' group may have a payment solution and there are valid ideas council needs to look at. He said council will not be close to making a decision by August 1. Kuntz commented he would like to see numbers going the other way and there has been an exaggerated emphasis on the airport and threats of lawsuits. He said he also wants information on how much it would cost to close. He said the city is being asked to keep old infrastructure in place and the taxpayers are paying for something that may or may not come in the future. Kalispell City Council Work Session Minutes July 11, 2016 Page 2 Carlson remarked she was very interested to hear Swank's offer, and council owes it to the pilots and citizens to have that discussion and see what they are willing to do. Saverud said he agreed with Carlson, this is the most interesting and positive offer they have heard, and it would be a mistake not to take advantage of it. He commented he is concerned about people who have made long-term plans at the airport in good faith and it is ironic that council has been fighting for a TIGER grant yet want to get rid of the airport. Gabriel remarked that she was thinking the same thing regarding the TIGER grant and the airport and she would like to have the pilots' group have time to come up with a solution and bring something forward to council. Graham noted that he also appreciates Swank's offer, but the taxpayer has bailed out the airport in the past and he wants to see protections in place. Guiffrida commented that he tries to look at issues without any emotion at all, and he is just looking at the numbers; he has been consistent on this issue and his biggest concern is polarization. He said council has heard lots of public comment and lots of ideas surfaced that were not in CTA's options and he wants the users to pay and does not want to see the taxpayers subsidize it. Guiffrida said he has developed "conditions", which he described and gave cites for, and the chief condition is that a reserve fund of $18 million be funded by the pro -airport group and is needed to assure that taxpayers will not be on the hook. Guiffrida concluded by requesting that council take action by May 1, 2017. Gabriel wanted to make sure everyone was clear that this was one council member's opinion, and this is not how she enters into negotiations with people. She said she would like to start on neutral ground for both parties. Kuntz remarked he would also like to see an EPA study done along with any appraisals on leased properties. Atkinson noted he heard two new ideas today — Mr. Swank's idea and Mr. Guiffrida's idea. He said this is a beginning and a worthwhile approach to the taxpayers not having to pay for the airport; this will take lots of work to make this happen and he considers this a starting point. Guiffrida suggested staff write and send out a Request for Proposals. Mayor Johnson countered that the airport users would like to help and he would prefer the users meet with staff and some council members and see what they have in mind before a Request for Proposals goes out. He also requested the exact buy-out of each lease, because the numbers are so divergent. He said no matter how council looks at the topic, it is a cost to the taxpayer. Council consensus was to direct staff to look at the proposal from the users' group to see what they are thinking and report back by October 1 with a framework for action, and begin to get the facts and appraisals together now. Kalispell City Council Work Session Minutes July 11, 2016 Page 3 CITY MANAGER/COUNCIL/MAYOR REPORTS Kluesner remarked he watched the governor's debate on TV and it was very informative; he would like to invite both gubernatorial candidates to come visit and talk with council regarding Kalispell's needs. Russell remarked he will make contact with the airport user's group and there will have to be some numbers changed in the budget for appraisals, testing, etc. Russell informed council there will be no work session held on July 25. ADJOURNMENT The work session was adjourned at 10:05 pm. Prepared by: Judi Funk Attest: Deputy City Clerk Ainlee Brunckhorst, CPJC : 5.. A k-, City Clerk = 7 R92 7 f1 tz� Kalispell City Council Work Session Minutes July 11, 2016 Page 4