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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