2003/06/16 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4470 in which it repealed Resolution No. 3773 determining the need to update the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SECTION I. That Resolution No. 4470 is hereby repealed by revising the fee schedule for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
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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
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