HomeMy WebLinkAbout2012.08.13 CITY COUNCIL MINUTES WORK MEETING1
August 13, 2012
Mayor Richard Woodland
Council Members:
Christopher Mann Jordan Busby
Donna Benfield Jerry Merrill Bruce Sutherland Sally Smith City Staff: Richard Horner – Finance Officer Matt Nielson – Deputy Finance Officer John Millar – Public Works Director Keith Davidson – City Engineer Natalie Powell – Compliance Officer Blair Kay – City Clerk
4:00 P.M. Commissioners room at the Madison County Court House
County Attendees: Commissioner Kimber Ricks, Commissioner Todd Smith, Commissioner Jon
Weber and County Clerk Kim Muir.
City Attendees: Council President Mann, Council Member Busby, Council Member Benfield,
Council Member Merrill, Council Member Smith, and Mayor Woodland.
Council Member Sutherland asked to be excused.
BYU-I: Phil Packer
Airport Board: David Taylor
Standard Journal: Emily Buchanan
4:00 P.M. - Commissioner Kimber Ricks welcomed the City Council and Staff, Phil Packer and
reporter Emily Buchanan from the Standard Journal to the meeting.
Airport funding:
Deputy Finance Officer Nielson presented a current and historical funding report of the Rexburg
Madison County Airport. He explained the funding grants can be carried over for up to four years
on approved projects. His presentation illustrated the need for additional funding and in-kind work
from both the City of Rexburg and Madison County. David Taylor pointed out the need for the
airport to be more inviting for travelers, business and pleasure. There is a need to have a lounge area
for the weary traveler.
Annual Revenue Sources:
Property Taxes $ 2,900 (County)
Fuel Royalty $ 2,500
Landing Fees $ 800
Rents—Lease for Lots $ 16,100
Total $ 22,300
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Federal Grants Varies Depending on Projects
State Grants Varies Depending on Projects
35 North 1st East Rexburg, ID 83440 Phone: 208.359.3020 x2313 Fax: 208.359.3022 blairk@rexburg.org www.rexburg.org
City Council Joint Meeting August 13, 2012
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Discussion: UPS is the only customer paying a landing fee, which iswhich is $800 per year. Chief
Finance Officer Horner presented a comparison of lease rates with other local airports and an
analysis of charging rent based on lot rent valuation as shown below. Raising the hanger rental fees
from $ 0.14 cents to $ 0.21 cents per square foot would generate an additional $9,363.27 annually.
Capital Projects
Current Funding Structure:
Airport Receives $153,750 annually from FAA and State to go toward approved projects
Funds can be carried over (up to 4 years) & accumulated for larger projects
Funds are received after projects are completed once requested by City of Rexburg
Engineering Department
Funds require a 2.5% match from the Airport Fund, which is a match of $3,750 annually for
capital projects
FAA does not reimburse for in-house engineering without a force account
City has been unable to create and get approved a force account
FAA will reimburse engineering if contracted out to private firms
The State of Idaho reimburses 2.5% of a total project cost
The Airport Fund is also responsible to pay 100% of capital project costs that might exceed
the $150,000 annually as well as any capital purchased that is not FAA approved
(i.e. vehicle or equipment)
Discussion: The state reimbursement will change to 3% with a 7% match from the City/County.
The current funding need of $1,000,000 is to move the taxi way to allow 240 feet of taxi way and
redo the apron (the paved area immediately in front of airport buildings, on which aircraft are loaded and unloaded)
in 2014.
Capital Projects
Future Funding Structure (Effective Immediately):
Airport will receive $155,000 annually from FAA and State to go toward approved projects
The State of Idaho will reimburse 3% of a total project cost
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This will leave a 7% match required by the Airport fund, which is a match of $11,667
annually for capital projects
Discussion: There needs to be a five year Capital Improvement Plan.
1. One immediate need is to fix the front gate; otherwise the fence is not secure.
2. The airport is also in need of a new snow plow.
3. There is a drainage problem at the front gate too.
4. Weed control – spray the weeds at least twice per year
5. The north end of the runway needs a fence repaired to prevent livestock intrusion.
6. David Taylor reviewed the need to extend the runway for aircraft safety.
Current Financial State of Airport Fund:
07/31/12- Fund Balance ($70,748)
Estimated Fund Balance if Grant Revenues had been collected in full ($21,631)
Discussion: There is a need to increase revenue to reduce and eventually eliminate the negative fund
balance.
Additional Considerations:
The City of Rexburg currently provides multiple services for the Airport at no charge as follows:
Engineering (partial)
Legal
Book Keeping-Budgeting, Accounts Payable, PO’s, Budget Reports, Annual Financial
Reports and Audit
Management of Lease Agreements
Code Enforcement
Misc. Services of Public Works as necessary (The County also provides these services upon
request).
The overhead costs (which does not include engineering and code enforcement) would total
approximately $4,000/Year
Engineering Review 2001-2012:
City of Rexburg billed $60,100 during that period
Had the City billed at normal engineering rates, the Airport Fund would be responsible to
pay an additional $26,700 for a total of $86,800 in engineering
Had we contracted out the Engineering, costs would have likely been double what the City
has charged
The City also contributed $54,000 to the Airport Fund in 2009 to pay for Street right-of-way
on Pioneer Road
Moving Forward:
1. Should the Airport Fund be charged for their appropriate share of overhead?
Discussion: The County will continue to pay about $2,900 in tax revenue while the City will
continue to cover the overhead costs of administering the airport accounting and other
administration costs at no charge to the airport fund.
2. Should we begin to utilize outside engineering firms, which will reduce the scope of the
projects?
Discussion: The city has been covering the engineering costs for airport projects. In the future, the
engineering will be looked at on a case by case basis to decide whether to outsource the engineering
or keep it in house.
3. Should the lot lease rate be at fair market value and contribute to some of the capital
projects and pay down the negative fund balance?
or
4. Should the City and County contribute to cover the capital projects?
Discussion to use City/County resources to help repair the front gate at the airport to secure the
fence. Permeable asphalt would be one solution to help with ponding water at the front gate.
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Council President Mann moved to approve the repair of the security fence gate at the entryway
and the fence on the north end of the runway; Council Member Busby seconded the motion;
discussion: there will need to be some excavation, ¾ inch gravel, check grade for drainage, split
paving costs with the county, and use permeable asphalt. Mayor Woodland asked for a vote:
Those voting aye Those voting nay
Council Member Busby None
Council President Mann
Council Member Benfield
Council Member Merrill
Council Member Smith
The motion carried.
Commissioner Todd Smith made a motion to participate in fixing the gate and needed repairs at
the airport, as an in-kind match as well as some financial match; Commissioner Weber seconded the
motion; Commissioner Kimber Ricks asked for a vote:
Those voting aye Those voting nay
Commissioner Kimber Ricks None
Commissioner Todd Smith
Commissioner Jon Weber
The motion carried.
David Taylor asked for a Resolution of Commitment for necessary projects and maintenance in the
near future. Council Member Jordan Busby asked if we were prepared to make a monthly
commitment to the airport fund. Finance Officer Horner suggested raising the fuel royalty to raise
additional funds, David Taylor thought that would drive traffic away and hurt fuel sales. Discussion was held on airport expansion with no resolution due to funding. The Rexburg Madison County Airport adds to the community amenities; it adds to the quality of the community; it is part of the puzzle. The recent airport study was available for reference. Phil Packer mentioned that President Clark would like to see an expansion; however, they don’t pretend to know what that involves. Taxpayers contributing to the airport were discussed and how they would feel about this contribution. The airport is one of many pieces of the puzzle that go to putting together a community i.e. parks, golf courses, etc. It is up to all of us to keep things in good repair and make
the city a place where people want to come and visit, live, shop and play.
Discussion on the hanger rates continued and the question was asked as to whether the fees should
be raised to fair market value to provide additional revenue to help cover the costs of the airport.
The City Council discussed raising the fees as proposed. A budget item could be added to the
County and City budgets in the future, but was not recommended at this time.
Council Member Smith moved to set a public hearing date September 05, 2012 at 7:30 P.M. to
take public comment on the proposal to raise the hanger rental fees at the airport from $ 0.14 cents
to $ 0.21 cents per square foot as discussed; Council Member Benfield seconded the motion;
discussion: the Golf Board is proposing an increase in golf fees too. Mayor Woodland asked for a
vote:
Those voting aye Those voting nay
Council Member Busby None
Council President Mann
Council Member Benfield
Council Member Merrill
Council Member Smith
The motion carried.
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Discussion from Commissioners Kimber Ricks, Todd Smith, and Jon Weber to approve a resolution
to have a joint public hearing with the City of Rexburg to consider raising the rental fees at the
airport from $ 0.14 cents to $ 0.21 cents per square foot as discussed.
Recap:
1. The County will continue to pay about $2,900 in tax revenue while the City will continue to not
charge for the overhead costs of administering the airport accounting and other administration
costs.
2. The city has been covering the engineering costs for airport projects. In the future, the
engineering will be looked at on a case by case basis to decide whether to outsource the
engineering or keep it in house. City/County resources will be used to help repair the front gate
at the airport to secure the fence. Permeable asphalt would be one solution to help with ponding
water at the front gate.
_____________________________
Richard S. Woodland, Mayor Attest:
________________________________
Blair D. Kay, City Clerk