HomeMy WebLinkAbout09/21/2005 B A K E R S F I E L D
~~ ~ Mike Maggard, Chair
Staff: John W. Stinson Irma Carson
For: Alan Tandy, City Manager Harold Hanson
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Wednesday, September 21,2005 · 10:00 a.m.
City Manager's Conference Room - City Hall
1. ROLL CALL
Called to Order at 10:10 a.m.
Present: Councilmembers Mike Maggard, Chair; Irma Carson and Harold Hanson
2. ADOPT AUGUST 31, 2005 AGENDA SUMMARY REPORT
Adopted as submitted.
3. PUBLIC STATEMENTS
4. DEFERRED BUSINESS
A. Staff report and Committee recommendation regarding FY 2005-06 Cost
Recovery Development Related Fees
Brian Todd, Building Industry Association of Kern County, had contacted the
Committee just before meeting time and indicated he was not able to attend
today's meeting and requested the Committee to defer this item to the next
meeting.
Committee Chair Maggard made a motion to defer the Cost RecOVery Fees to
the next Committee agenda, but indicated action must be taken soon because
the fee increases for these remaining fees cannot be collected until approved
by the Council. The Committee unanimously approved the motion.
The next Budget and Finance Committee meeting is scheduled for October
31 st. Due to scheduling conflicts, the Committee requested staff to cancel the
October 31st meeting and work with Committee members to try and set another
Committee meeting date.
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Wednesday, September 21,2005
Page - 2 -
B. Discussion and Committee recommendation on potential sale of the City
Airport
City Manager Tandy gave a brief report on a form (outline) of the required
information from the Federal Aviation Administration (FAA) Request for
Release (closure) document. Public Works Operations Manager Brad
Underwood and Public Works staff are working on compiling the required
information assuming it will return to the Committee for authorization to submit
it to the FAA. Also at Committee Member Carson's request, Economic
Development Director Donna Kunz and staff are working on an economic
development analysis proposal that would include the desired uses for the
airport property.
City Manager Tandy provided an overview of report information from 1984 and
1985 when the City Council was considering acquisition of the airpark using
FAA grant funding. The information provided a summary of the history
regarding the purchase of the airpark. The actual grant agreement was not
included, as the document is very thick and lengthy.
The City of Bakersfield holds title to the airport. However, when accepting
grant funding from the FAA, there were conditions in the agreement. If a sale
were approved, the conditions in the grant agreement require repayment of the
grant monies; however, the FAA has the right to waive or moderate repayment.
Public Works Director Rojas explained because the airpark was actually
purchased with FAA grant monies, it is somewhat different from getting grants
to fix up a property the City already owned. The language in the grant
agreement contained standard federal grant conditions and the FAA has
decision-making power over the sale of the airport, repayment of the grants and
the disposition of any profits that might be realized from a sale.
The Committee requested a summary of the federal grant agreement,
particularly pertaining to sale conditions.
Tony Smith, a tenant at the airport, spoke regarding other options or vacant
properties to revitalize the area and promote economic opportunity around the
airport rather than closing and selling the airport.
Joe Campen, an airport tenant, spoke in agreement with Mr. Smith's
suggestions and in support of keeping the airport open.
Committee Member Carson explained the airport flight path limits growth, and
the citizens in the area would like to see economic development, new job
creation, schools and affordable housing.
AGENDA SUMMARY REPORT
BUDGET AND FINANCE COMMITTEE MEETING
Wednesday, September 21,2005
Page - 3 -
Committee Member Hanson expressed there are two basic questions, which
need to be answered: 1) Will the FAA approve the sale of the airport? and 2) Is
there a well-qualified buyer with the financial capability to purchase the airport
at an acceptable price? If a sale is approved by the FAA, and the City 'has a
buyer, there are other expense issues to resolve, such as runway removal,
environmental issues and relocation of tenants.
Committee Chair Maggard asked staff about whether the FAA has approved
the sale of any municipal airports in the Western Region.
Public Works Director Rojas reported the one approved airport sale was a
privately-owned airport with no FAA funding attached to it. There have been no
closures of airports that have been sponsored with FAA grant funding.
Committee Chair Maggard asked staff to report on the steps staff would need to
take to request a closure of the airport.
City Manager Tandy responded staff is working on the two initial items to bring
to the Committee for review: Public Works staff is compiling the required
information for the FAA Request for Release (closure) document and in concert
with that Economic Development staff is working on an economic development
analysis proposal.
Committee Chair Maggard recommended staff complete the package of
information and bring it back to the next Committee meeting. The Committee
unanimously agreed.
5. COMMITTEE COMMENTS
6. ADJOURNMENT
The meeting adjourned at 11:10 a.m.
Attendance: Staff: City Manager Alan Tandy; City Attorney Ginny Gennaro; Assistant City
Manager John W. Stinson; Finance Director Nelson Smith; Public Works Director Raul Rojas;
Economic Development Director Donna Kunz; 'Public Works Operations Manager Brad
Underwood; Real Property Manager Don Anderson; Public Works Civil Engineer Marian Shaw;
and Assistant to the Public Works Director Georgina Lorenzi
Others: Mark Howell, KUZZ/KCWR; James Burger, The Bakersfield Californian; Harry
Hackney, airport tenant; Joe Campen, airport tenant; and Tony Smith, airport tenant
cc: Honorable Mayor and City Council
S:~JOHN\Council Comm ittees\05Budget&Finance~bf05sept21summ ary.doc