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HomeMy Public PortalAboutMemo to FAA requesting Review of Agreemnt CITY OF MCCALL October 30, 2008 TO: Carol Suomi, Manager Seattle Airports District Office Federal Aviation Administration FROM: John Anderson, A.A.E. McCall Airport Manager SUBJECT: Through-the-Fence Agreement, MYL • Attached is a DRAFT Through-the-Fence (TTF) agreement which substantially complies with the requirements of AC 150/5190-7. I have highlighted areas that we feel are completely in compliance with the AC, and those areas which we believe comply. In some cases, I have provided alternative language, and am looking for an answer to the acceptability of any of the alternatives. In the spring of 2007 a business that owns the land contiguous to McCall Municipal Airport came to the City to obtain an agreement to access the airport"through- the-fence". We made progress toward negotiating an agreement through the summer of 2007, and then did not hear back from the proponents until August of 2008. At this time, the McCall Municipal Airport Advisory Committee has recommended that we proceed with a through-the fence agreement as it seems unlikely that the City of McCall—Airport will in the short or long run have the fiscal ability to purchase property for aviation development purposes. The owners of the land have sold an interest in the property that they wish to develop for aviation purposes to a developer, who is a co-applicant for the TTF. They have also proposed to develop much of the land near the airport for industrial/commercial purposes. The land that is proposed for aviation development is in compliance with the current Airport Layout Plan. Exhibits which depict the proposed TTF area,the Airport Layout Plan, and proposed development of the private land for aviation and non aviation purposes are attached. A compilation of the agreement we presented to the proponents,their revisions, and comments regarding some of our questions is attached. Our most significant areas of concern are assignment, and the access fee rate structure. We believe that this agreement substantially conforms to the requirement of AC 150/5190-7. We welcome FAA's comments, especially with regard to the DRAFT agreement, including comments where items are not acceptable to FAA. In areas that are not acceptable, it would be helpful if we could receive comments that could make the DRAFT agreement acceptable. 216 East Park Street • McCall, Idaho 83638 • (208) 634-7142 • FAX (208) 634-3038 THROUGH THE FENCE AIRPORT ACCESS AGREEMENT THIS AGREEMENT is entered into as of ,2008 ("Effective Date") by and between The City of McCall,an Idaho Municipal Corporation of the State of Idaho("City")and_ ("TTF F Licensee"). RECITALS A. The City is the legal owner of certain real property known as McCall Municipal Airport (the"Airport"),as depicted in Exhibit"A". B. TTF Licensee is the owner of private land adjacent to the Airport,as more particularly described in Exhibit"B"attached hereto and made a part hereof by this reference(the"Private Land"). C. TTF Licensee desires to access the Airport from the Private Land in private aircraft and commercial aircraft. NOW,THEREFORE,upon the terms and subject to the conditions set forth herein,the parties agree as follows: AGREEMENT 1. Rules and Regulations. The Minimum Standards for Commercial Operations and Private Users of the McCall Municipal Airport,dated August 12, 1999("Minimum Standards")and Chapter 16 of the McCall City Airport Regulations,and any other regulations and ordinances now legally in effect,or as they may be hereafter amended or adopted in the future,that are applicable to McCall Airport tenants and transients,whether civil or government,shall apply to the TTF Licensee. 2. Grant Assurances. The TTF Licensee is subject to present and future grant agreement requirements and federal property conveyance obligations made between the City of McCall and the FAA. This includes but is not limited to safe operation and equitable compensation for use of the airport. 3. Access to Airport. The City of McCall hereby grants to TTF Licensee non-exclusive access to the Airport for private and commercial aircraft at the location designated in Exhibit"A"attached hereto and made a part hereof by this reference. Access for any other purpose is hereby not authorized or permitted. Any costs associated with construction and maintenance of said access point shall be paid for by the TTF Licensee. Any construction on the Private Land shall be completed in accordance with the Minimum Standards. Access is granted to TTF Licensee only for the use/development as specifically defined in the project Site Plan.Exhibit"C"attached hereto and made a part hereof by this reference. Any development on the Private Land other than that depicted in Exhibit C will not have access to the Airport and will be considered a breach of this Agreement and will result in Default as defined herein. 4. Expiration Date. The expiration date(fixed contract period)of this Agreement shall be for a period of twenty(20)years from the"Effective Date,"provided,however,that only so long as Licensee is not in default of any of the provisions of this Agreement. {Note: The proposed TTF licensee proposed an initial 30 year term.but since MYL airport leases have an initial 20 Year term,this date was changed to be equivillant to airport leases;_ 5. Renewal Option. So long as TTF Licensee is not then in default of this agreement,this agreement may be extended by TTF Licensee for four(4)additional terms of five(5)years each. Each extension shall be upon the same terms and conditions as are set forth in this agreement. TFF Licensee shall provide written notice of its election to extend at least 30 days prior to the expiration of the then I existing term.Note: This is ec uivillent to airport lease agreemet-its 6. Security and Gates. TTF Licensee shall be responsible for the costs of installing and maintaining all security measures and means of access at the access point(s)shown on Exhibit A, including,but not limited to,fences,gates and taxiways,in accordance with Transportation Security Agency(TSA)requirements,as they may be amended from time to time. 7. Conditions and Restrictions. TTF Licensee's rights hereunder to access the Airport shall be subject to the following conditions: a.TTF Licensee shall comply with all applicable present and future: (i)rules,regulations,and other requirements of FAA and TSA or any successor agencies; (ii)laws of the State of Idaho and of the United States of America, including without limitation,statutes,rules,regulations,ordinances and codes; and. (iii)County and City laws,rules,regulations,ordinances,and codes. b. All plans,designs and specifications for security measures and means of access,shall be subject to TSA prior review and approval,as may be required by the TSA from time to time; c.TTF Licensee shall be responsible for assuring that traffic and activities relating to access and security construction do not interfere with the normal day-to-day operations of the Airport,do not create a safety hazard,and do not result in unreasonable"wear-and-tear"on improved areas of the Airport,as defined in the Minimum Standards. d. All of the Private Land must be located within the City of McCall and must be zoned Airport(AP). e. All of the Private Land needed for the relocation of the parallel taxiway and/or future expansion of the runway or taxiways as defined in the 2007 McCall Municipal Airport Master Plan Update,must be set aside and dedicated for this use. Any Access Fee(as defined below)that would otherwise be applicable to this set-aside land will be waived. f. The access pint from the III to taxiway"A' may be required to be changed it a future point in time at the expense of the TTF operator for the conveince of the airport. 8. Access Fee. Upon execution of this agreement, TTF Licensee shall pay to City the sum of $5,000 as and for the first annual access fee. Subsequent annual access fees will be the greater of$15,000 or $0.35 cents per square foot of Private Land, whether covered or uncovered. , The $0.35 per-foot Deleted:building-structure footprint charge shall be applicable at the next annual payment after initiation of aircraft access to the Airport constructed on the Private Land. Initiation of aircraft access is defined as the first aircraft accessing the Airport from the Private Land. All {Deleted:upon of the Private Land defined in Exhibit B will be subject to the per-foot charge upon initiation of access. 't Deleted:(TBD) J I regardless of which portion of the Private Land said access was from..-,Said fees shall be payable on an _,--Deleted:. annual basis in advance on October I'. Each year the annual access fee will be adjusted by the change in (Deleted: 1 the CPI-West Urban(base year 1982-84). (It is su gg ested that X h;fees paid b the initial land developer — -- {Deleted:T be reduced to give some consideration for,sewg ,infrastructure additions,provided by the initial TTF Licensee„to the City for its use and growth beyond that needed by the Airport.) Lillis also needs to Deleted: s�« e-footage"cress tee - include a statement that the initial rates are good for the first 10 years,then it is to he the same as the then ;•, t Deleted:computed with current airport rate as established by C it}_Council_ ,';�Deleted:airport Note: The TTF proponent has suggested a rate of 20 cents per square foot of the ground covered by f Deleted:age and buildings only. They had originally proposed 12 cents per square foot. They have completed an analysis (Deleted:utility which,gustrlhes this rate. The airport created i separate analysis that justrfres a rate pis stated abose, but for — the developed property.not for the entire property covered by the agreement. ; Deleted:, 1 1 } } p Note2_ In addition._ 1 TF Licensee shallpay to the City, its share of unknown future tl i ott o perat m Deleted:, expenses including but not limited to AirTaaflie Control Security.Aircraft Rescue nod Fire Fighting,and other unknown requirements mandated by City.County.State,or Federal governments. 9. Additional Fee Collection. TTF Licensee shall also collect and remit to City, by the 15th of the month, all applicable landing fees, fuel-flowage fees, aircraft-parking fees,and other concession fees as may be applicable by regulation, rule or ordinance, including but not limited to, those fees for car rentals, catering, ground-vehicle parking, and "other percentage of gross sales," paid by the on-airport I operators in the previous month. Note: This is substantially equivilleutto on airport FRO requirements. 10.Late Charges. Any Access Fee not paid within 30 days of the due date shall be deemed late and,in addition to the Access Fee due,TTF Licensee agrees to pay(i)a late charge equal to 18%of the Access Fee then due,and(ii)interest on the Access Fee at the rate of 18%per annum,and accrued monthly until paid in full. Any fee,which is due and unpaid at the expiration,termination,or cancellation of this Agreement,shall continue to be an obligation of TTF Licensee,regardless of termination or cancellation. 11. Commercial Activities. All commercial activities within the Private Land will conform to City of McCall and FAA Minimum Standards,Rules and Regulations,and ordinances now in effect,or as they may be legally amended or adopted in the future. Any commercial activity on the Private Land shall be subject to all normal and applicable City approval,permit,or license requirements for such activity. 12.Insurance.At all times during the term of this Agreement,including any extensions thereof, TTF Licensee shall procure and maintain insurance against the hazards and liability in the amounts hereinafter set forth and shall provide City with a certificate of such insurance naming City as an additional insured: a. All Risk Insurance in Connection with Construction. Before commencement of any construction or demolition on or related to the access granted hereunder,TTF Licensee shall procure and shall maintain in force,until completion of the work, "All Risk"insurance in a form satisfactory to City,covering all risks of physical loss or damage to any property in an amount of not less than$1,000,000. b. Public Liability Insurance.Comprehensive broad form general public liability and aviation liability insurance covering loss or damage resulting from accidents or occurrences on or about or in connection with the access granted hereunder or TTF Licensee's use of the Airport, with personal injury,death and property damage combined single limit liability of not less than $5,000,000 for each accident or occurrence for commercial operators,should commercial operations permit be allowed,and$1,000,000 for private hangar owners. 13. General Indemnification. The TTF Licensee hereby indemnifies and holds the City of McCall,its elected and appointed officials,and Airport employees,harmless from and against all liability for injuries to persons or damage-to-property caused wholly or in part by use of the access granted hereunder. 14. Assignment. This Agreement shall,except as otherwise provided herein,be binding upon and inure to the benefit of the successors and assigns of the parties hereto,. Licensee shall not assign Deleted: this Agreement in whole or in part,nor sublet or rent all or any part of the subject Private Land without the written consent of the City,which consent shall not be unreasonably withheld. For the purposes of this Agreement, a change in control of the TTF Licensee shall be considered an Assignment and require the written consent defined in this paragraph., Deleted:and shall run with the land. TTF Licensee may assign its rights and obligations under this Agreement in . Note: Licensees DRAFT included a statement—ibis Agreement shall.except as otherwise provided whole or in part. Partial assignments herein,be binding upon and Inure to the benellt(tithe successors and assigns of the parties hereto and shall be subject to the consent of the City, shall run with the land. TTF licensee may assign n its rights hts and obligations under This Agreement In vi ho)C which ld,conditioned Shan dot be laredsonably � obligations withheld,conditioned or delayed. or i n part_ Partial assignments shall be subject to the consent olthe City.which consent shall not be unreasonably withheld.conditioned or delayed 15. Non-responsibility of City for Airport Closures. The City shall not be responsible for airport closures or the inability to operate specific aircraft at any time. 16. Default. In the event TTF Licensee, its successors, assigns or subsequent owners of the Private Land or any other person acquiring an interest in the Private Land,fail to faithfully and materially comply with all of the terms and conditions included in this agreement, such failure to comply will be deemed a default hereunder. In that event,City shall have the following options: a. This agreement and the commitments contained herein may be terminated, if City provides written notice of TTF Licensee's default, and TTF Licensee fails to cure such default within thirty(30) days, subject to extension as provided below, after mailing or delivery of said notice. b. Enforcement of this agreement may be sought in an action at law or in equity in Valley County District Court. c. A waiver by City of any default by TTF Licensee of any one or more of the covenants or conditions hereof shall apply solely to the breach waived and shall not bar any other rights or remedies of City or apply to any subsequent breach of any covenants or conditions. d. Notwithstanding anything to the contrary herein, in the event of a material default of the agreement, the parties agree that City and/or TTF Licensee shall have thirty (30) days after delivery of notice of such default to correct the same prior to the non-defaulting party's seeking of any remedy provided for herein; provided,however,that in the case of any such default which cannot with diligence be cured within such thirty (30) day period, if the defaulting party shall commence curing the same within the thirty (30) day period and prosecute the curing of same with diligence and continuity, then the time within which such default may be cured shall be extended for such period as may be necessary to complete the curing of the same, but in any event not to exceed(6)months;and provided further,however,no default by a subsequent owner of a portion of the property shall constitute a default by TTF Licensee for the portion of the property still owned by TTF Licensee. In the event the performance of any obligation to be performed hereunder by any party hereto is delayed for causes that are beyond the reasonable control of the party responsible for such performance, which shall include, with limitation, acts of civil disobedience, strikes or similar causes, the time for such performance shall be extended by the amount of time of such delay. Should the TTF licensee fail to abide by the provisions of this agreement, then this agreement shall be held in default and subject to termination,and access to the McCall Municipal Airport shall be denied, and TTF fees shall become a lien on the real property of all TTF land under this agreement. In the event the City or any of its successors,assigns or subsequent owners of the Airport or any other person acquiring an interest in the Airport, fail to faithfully and materially comply with all of the terms and conditions included in this agreement, such failure to comply will be deemed a default hereunder. In the event of such default, not cured within thirty (30) days of written notice of default, the TTF Licensee may terminate this agreement or pursue all other rights and remedies available at law or in equity. 17. General Provisions. The parties hereto agree to the following general provisions: a. Further Documentation. The parties hereto agree to execute any and all documents advisable and/or necessary to effectuate the terms and intent of this Agreement. b. Binding. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and assigns. c.Invalidity of Provisions. If any provision of this Agreement as applied to either party or to any circumstance shall be adjudged by a court to be void and unenforceable,the same shall in no way affect any other provision of this Agreement,the application of such provision in any other circumstances,or the validity or enforceability of the Agreement as a whole. d. Modification. This Agreement shall not be modified by either party by oral representation made before or after the execution of this Agreement. All modifications must be in writing and signed by the parties. e. Counterparts. This Agreement may be executed in multiple counterparts,each of which shall be deemed an original Agreement,and all of which shall constitute one Agreement as of the Effective Date. f. Time of Essence.Time is of the essence for the performance of each and every covenant and the satisfaction contained in this Agreement. g. Attorney's Fees. In the event any action is brought to enforce or interpret any of the terms and provisions of this Agreement,the"prevailing party"in such action shall be entitled to recover,as an element of costs of suit and not as damages,reasonable costs and expenses, including but not limited to taxable costs and a reasonable attorney's fee.The"prevailing party" shall be the party entitled to recover his costs of the suit,regardless of whether such suit proceeds to final judgment. A party not entitled to recover his costs shall not be entitled to recover attorney's fees. No sum for attorneys'fees shall be counted in calculating the amount of a judgment for the purposes of determining if a party is entitled to recover costs or attorneys' fees. h. Construction. This Agreement shall not be construed against the party preparing it, but shall be construed as if all parties prepared this Agreement,and in accordance with the laws of the State of Idaho.Jurisdiction shall be Valley County,Idaho. i. Miscellaneous. All negotiations are merged into this Agreement. This Agreement constitutes the entire understanding of the parties concerning the subject of this Agreement. This Agreement shall constitute a binding obligation between the parties and shall be applicable beyond the term of this Agreement. j. Costs and Expenses. Each of the parties shall pay all cost and expenses incurred or to be incurred by it in negotiating and preparing this Agreement and in closing and carrying out the transactions contemplated by this Agreement. k. I-Ieadings. The headings of the paragraphs and subparagraphs of this Agreement are included for purposes of convenience only,and shall not affect the construction or interpretation of any of its provisions. 1. Gender. Any reference to he,she,or it shall not be binding as to gender,but shall be construed and interpreted to mean he,she,or it as appropriate in connection with the correct gender. m. Incorporation of Recitals. The Recitals are hereby incorporated in this Agreement by this reference. n. Authority to Execute. The individuals executing this Agreement on behalf of a corporation,partnership,trust,or other entity,hereby represent and warrant that they are duly authorized to do so on behalf of such entity,and that all corporate,partnership,trust or other entity requirements have been fully complied with including such resolutions,voting,or agreements as may be required to enter into this Agreement and to make this Agreement a binding obligation of such entity. o. Facsimile Copies. Facsimile executed copies of this Agreement shall be deemed an original copy. Any party may rely upon the facsimile copy of the original executed Agreement, which may be executed in counterparts. The parties agree to exchange fully executed original copies by mail within 5 days after signing,provided that said exchange or the failure to exchange originals shall in no way be construed as voiding or negating use of the facsimile copies as originals. p. Notices. All notices permitted or required under this Agreement shall be deemed given upon(i)personal delivery(ii)actual receipt of notice by the party to whom such notice was directed,or(iii)48 hours after having been deposited in the United States mail,certified,postage prepaid,with a second copy sent by regular first class mail and addressed to the appropriate party, at the address provided below or such other address as may hereafter be given by one party to the other party. In Witness Whereof,the Parties have executed this Agreement as of date first above written. CITY: The City of McCall,Valley County,Idaho By: Date TTF LICENSEE: By: Date ©2007 100101000-ORTal ERMEERNG CO.MS NSTRUKIII IS ME PUNY 01 1001010001 ORTON EfiGiNEEDIG CO. ANY REPRODUCflON,REUSE OR MODFICATIOS OF TIE INSTRUVENT OR ITS COMES OW SPECIFIC 01101 PERWSSION OF 1001001 ORION MENG CO.IS SIRTLY PRONINIED. . .........' ; . : . : , " • • )i ‘,\. -„,, _,.) 0 ' ii, (1 \'' '//7.1 -,f.'1/i 4._ - ;.-• -,:/ ,- 1 i /,'' ,' ', ,',,,,,''' ;,1■';',''///,'1, -',''i, i' / '',,'' V Vg. \ ,:_.- _ ,,..t,, 1 1'vii: ,:',.,-,-,",' --liv-,:.• .\:::::::::: i 1 52 ii i_ i 1 ‘ ■ '''',, :'s,H' ' '''' //1C.,--.''''' Ctilli- . \ ' )‘',\ \ 1 l'\'- / !'',...-.:''''': i l' Z..'■ ki , ',13 ` =:_j , \ ''„ , ' \\":‘, ',,,',•.,,.,'"/'::::' Y',' ',I ghtbNialpre fi, ,■ i , QV• ) 1 .'2::\- filiCti U 11 I: '• '. -'' I \ I -\ lir t• ', i i 1 rl, ;,2'.;,,':2-2' ,,,q!, r 3 I),tl, i) ,T .;,5,„I/i ,,'t;),,I :,;..-.....'..• I ii' '-,' II ( ( ) s,;* „_ ._ __..... 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El ., , .. _ o _ 0”r_90 1 coz , ' .0 m 6.--4,1 '''''- - • ■Q 2 , 2 j E L='7 1T- — ' '''' "'"'...." co.x ...,.. co < .... \c— ) 0/ I. • co 0 L".1 : i 1.6---'-' : 1 ',-- 77 --_.I ''''''''\,,'"',.. - 5• '''' -,'( 1 ... .-- ,--,// ',/, ...! 4,)," It ...;.--_,. /,' ',/,,,, ---i--, . ,\\ /( c ', t ,fi't ,---- ,- i '`'<-,' t I- -,', ',-,----,I (--- '\' '• , .. ,...-_-_-/ \ / ) 1 ,.. /..;1 ',"-tt--; i tt- !, . , Diagram of Exhibit B Proposed Krahn Lane Extension Hwy 55 Approx. 29.83 Acre TTF Access Area -- "Private Land" Future Taxiway Expansion l - _-"____.. �-°� OHHdI'11b",VH v ,- s a' 121Od?JI'd 11t" 7 4 W ° I > Sa -_5 r L'a Nb'1d311S 911 �, z y ' a Q ld d ¢ e s Ii 1 1 r-, 0 i X -_� X i 1 .i` i El 1: i ,; 200 wo ti 1111111 _ Z z 11111111 W H.LIJ W I i 61111111111111_ I I i .. a ill W 1' I - W ��� _ • IIIIIIIIILIILL 0 X p CC ■ 0Illllllllllll� s I Cr " 1 a 1 I 0 N UIIIIIIIIIII_] 1 1 1 � ' � � CO - '� IIIIIIIIC1 a� Z o , 111 - 1 �w I I lI cc QJ I I I11I _iii- Ki <0; 0 a_ Zo ep II 1111111 WJ.ILL —S30VdSDS'INtltld 61 S3OVdS 9M1INHVd 71— — S33VdS`.aNMHVd B 'T— 0 Sa3VdSWNINHVd6Z 2 •TlI1I ftTTIJ11111 IIII1II11111111fl '1• 1 1 , x m / IN _I L =I N _ .,,,,,,*,-,,,,,,, ...,_03,,,,,1. (011'Ji�'INdtld 1dW3tlltl a3aeLn I 4 ',•iiiih,.... i '4451- fi.411 1 + j 43 4&rrimAlip ,■.\1174.$E 4 ,„..ii"---t ,- \ ..... / 4,.....„1. , _ 1 I — I y I I �� X I I �� 4pL( 2- I �n X if� 1 4 f31 a 0 X WCE 0 X x I i I I Q � a •i i- M , II `U' o +, .31,N., . P 1 Q z I= -. OTC aZ > 4 i 't44, CC X W z =9 U .. I I 'A'3`T I _ I W W X a H _ F- w 2 -co W q�pp f W = Q m caw LL Z O I I [I 1 tl l t� u r O m i I -- —__i S33VdS'ONINtlVd 81 — \ 0 X O X X W il 1 ,I M ,- W r r N .-- GI I 1 )T J Exhibit B LEGAL DESCRIPTION OF "PRIVATE LAND" granted THROUGH THE FENCE ACCESS to MCCALL MUNICIPAL AIRPORT A parcel of land situated in the NW 1/4 of Section 21, T.18N., R.3E., B.M., more particularly described as follows: COMMENCING at the north 1/4 corner of said Section 21; thence, along the east line of said NW 1/4, A.) S.0°32'07"W., 660.08 feet; to the POINT OF BEGINNING, thence, continuing along said 1/4 section line, 1.) S.0°32'07"W., 702.79 feet; thence, departing said 1/4 section line, 2.) 5.89°38'55"W., 569.85 feet; thence, 3.) S.1°05'03"E., 648.78 feet; thence, 4.) S.89°38'55"W., 660.00 feet; thence, 5.) N.1°05'03"W., 1351.55 feet; thence, 6.) N.89°38'55"E., 1249.71 feet; to the POINT OF BEGINNING. CONTAINING 29.83 Acres, more or less. SUBJECT TO all Covenants, Rights, Rights-of-Way, and Easements of Record. 1 THROUGH-THE-FENCE Exhibit C Fee Assessment Pursuant to Federal Aviation Administration(FAA) requirements to make the airport as "self sustaining as possible", and pursuant to FAA's stated requirement that Through-the-Fence (TTF) licensees pay fees that are at least at parity with on airport users, the following outlines the mechanisms to calculate the amount due from the TTF licensee. The amounts calculated represent a proportionate cost of the maintenance, operation, capital expenditure including equipment and grant match requirements for access to the runway and taxiway system of McCall Municipal Airport (MYL) as depicted in exhibit . In the future if air traffic control services, Aircraft Rescue Fire Fighting and Security, and other as yet unforeseen services and costs are provided for, they will be added these costs. Allocation of Expenses Airfield-Taxiways, On-Airport Terminal Area/Hangars, TTF FY 07 Budget FY 09 Budget Personnel $129,674 $140,726 Operating $ 68,091 $ 92,500 Transfers $ 25,740 $ 40,755 Grant Match $ 6,250 $ 7,500 Other CIP $ 5,645 $ 00 Total $235,400 $281,481 Snow Removal Effort Runway=6,100x75 feet, or 457,500 square feet that is plowed. Additionally, clearing snow from around the runway lights, and moving snow out of the taxiway safety area increases the effort by another 457,500 square feet as the runway safety areas are 37.5 feet off of the pavement edge on both sides of the runway. Therefore, runway effort= 915,000 square feet. Although not included in this calculation, additional effort is made in that the runway is plowed more frequently than are taxiways in front of hangars. Taxi-lanes on the airport equal 243,250 square feet. This includes all of the taxi-lanes that front all of the private hangars and the FBO's. Clearing Taxiway A from A-2 to the west end equals 235,000 square feet. This taxiway is presently not cleared in the winter time, but will need to be cleared when the TTF operation begins. If we are required to clear the entire taxiway A, the square footage is increased by 300,000. During non snow removal times, a split of 79% airfield, 21% on airport but not airfield would also seem reasonable as the safety maintenance of the runway and taxiway system has a much higher priority and requires the majority of effort. Present effort for snow removal equals 915,000 runway square feet plus 243,500 on airport taxi-lane square feet equals 1,158,500 square feet. Airfield effort is presently calculated to be 78.98%. On Airport taxi-lane effort is calculated to be 21.02%. With TTF access snow removal effort will add 235,000 to 300,000 square feet to the total. This is not taking idle assets and applying them to new effort, but will require additional diesel, wear and tear on equipment, and staff hours. Staff hours are especially critical during continuous and heavy snow times when overtime is required. If we assume that only taxiway "A" from A-2 to the west end needs to be cleared in addition to what is presently cleared, then the total snow removal effort increases to 1,393,500 square feet. The TTF additional share of snow removal effort is 16.86%. The Airfield share would then be 65.66%. And, the on airport share would be 17.47%. Approximately 40% of the year's maintenance and operation is dedicated to snow removal. 40% f the Operating budget= $235,400 X 40% or $94,160. 16.86% of the snow removal effort for the TTF would equal an additional $15,875; however, since this will be a non exclusive use, it would be reasonable to allocate their additional share based upon their share of the total, or 36.24%, reducing the additional Snow Removal Cost allocated to the TTF licensee to $5,753. Airfield Cost Allocation The airfield share of cost at 79% X $235,400 = $189,966. Airfield Use can be divided into three categories, USFS, Transients, and the Military. USFS accounts for 24% of the airfield use. The USFS share would equal $44,632. Although they are paying $36,326, their fee is adjusted annually for inflation, and then adjusted every five years to equal 24%, or a different amount if their share of use increases. Transients If we look at revenue received transients account for 26% of revenues generated net of property taxes. This would translate to saying that transients should be generating $61,204 in revenue based on the current year budget. Local Traffic This leaves 50% of the airfield use allocated to local use, or $117,700. The TTF license would compromise 36.24% of the revenue producing area. TTF Share of Airfield Cost Therefore the TTF is $117,700 X 36.24% = $42,654 plus an additional reduced share of Snow Removal cost of$5,753. $42,654 + $5,753 = $48,407 TTF share of Airfield cost. This is equivalent to 20.6% of the FY 07 operating budget. Allocation of Revenues On Airfield Hangar Fees- Based upon the DRAFT FY 08 budget, On Airfield Hangar Leases, including the FBO leases will generate $100,118. This is an area of approximately 26.17 acres, including taxiways, aprons and adjacent unused areas. Use Fees including landing fees, tie-down fees, fuel flowage fees, and ramp fees are budgeted at $52,000. USFS- Revenue from the USFS agreement is budgeted at$37,415 for FY 08. The USFS agreement is set up to capture 24% of operating costs, and is adjusted for inflation every year. Presently the agreement is only paying about 62.7% of the 24% of operating costs. The apron areas associated with the jumper base are about 3.21 acres TTF- The TTF area is 16.7 acres. The Total acreage of these areas is 46.08 acres. The TTF comprises approximately 36.24% of the revenue producing area. The On Airfield Hangar, FBO, and USFS comprise approximately 63.76% of the revenue producing areas. If we look at the allocation of expenses between airfield at 79% and on airport non airfield at 21%, then it is reasonable that revues should be allocated in the same percentages. Property Tax support $ 76,714 User Fees $ 42,500 Hangar Leases $ 78,920 USFS $ 36,326 Other/Interest $ 1,533 Total Revenues $235,993 If we reallocate property tax support between user fees and hangar leases on a proportional basis (USFS is exempt from property taxes) then an adjusted input from user fees is $26,850 + $42,500 = $69,350, and the adjusted input from Hangar Leases is $49,864 + $78,920 = $128,784. If we allocate 79% of the adjusted Hangar Lease input to the Airfield, then the allocation of hangar input for airfield is $101,739. The TTF license compromises 36.24% of the revenue producing area. Therefore, the TTF allocation of airfield expense is $101,739 X 36.24% = $36,870. Adding the additional snow removal effort of$15,875 normalizes this amount to $52, 745, or 22.35% of the revenue budget. This amount should be adjusted by CPI beginning October 1, 2007. A rough estimate at this time is 3%. Fee for TTF Licensee Although Cost is likely the most rationale method of allocating the fee for the TTF operator, Revenue must also be considered to assure that fees charged are "at least at parity" with On-Airport lessees. Utilizing cost the equal fee would be $48,407, or 20.6% of the FY 07 operating budget. Utilizing Revenue, the equal fee would be$52,745 or 22.35% of the FY 07 operating budget. The TTF licensee will also be paying the same fees for fuel flowage, landing fees and other equivalent fees Members of the McCall City Council: Re: Proposed "Through The Fence" Agreement between the City of McCall and Airport Ventures, LLC, and McCall Aviation Partners, LLC. The McCall Airport Advisory Committee met on October 2, 2008, and came to the following decision: THE COMMITTEE SUPPORTS AND RECOMMENDS THE PROJECT. (Subject to FAAs approval of an agreement that is also acceptable to the City of McCall.) We believe that the McCall Airport's contributions and importance to the city's economy would indeed grow as a result of this project, if approved, and at a time well before publicly-funded development could occur. The committee furthermore recognizes an extensive benefit with the sewage-line completion and utility and other infrastructure growth to all areas adjoining the airport complex. Light industry and business-park capabilities are also foreseen as attendant follow-on projects that would be economically important to the city. We are continuing to review the draft agreement. (and will forward it to you immediately upon its completion.) For the record, the vote on the project was 4 in favor/ 1 against, with the dissenting vote cast with an expressed desire to look longer and deeper into the project before voting. The balance of the committee felt comfortable, however, with the vote on this day, as a result of the four meetings in which the project was discussed, and the extensive agreement-review and analysis thereof that had been conducted. Respectfully, Walter G. Lee, Chairman Airport Advisory Committee THROUGH-THE-FENCE Fee Assessment Pursuant to Federal Aviation Administration(FAA) requirements to make the airport as "self sustaining as possible", and pursuant to FAA's stated requirement that Through-the-Fence (TTF) licensees pay fees that are at least at parity with on airport users, the following outlines the mechanisms to calculate the amount due from the TTF licensee. The amounts calculated represent a proportionate cost of the maintenance, operation, capital expenditure including equipment and grant match requirements for access to the runway and taxiway system of McCall Municipal Airport (MYL) as depicted in exhibit . In the future if air traffic control services, Aircraft Rescue Fire Fighting and Security are provided for, they will be added these costs. Allocation of Expenses Airfield-Taxiways, On-Airport Terminal Area/Hangars, TTF FY 07 Budget Personnel $129,674 Operating $ 68,091 Transfers $ 25,740 Grant Match $ 6,250 Other CIP $ 5,645 Total $235,400 Snow Removal Effort Runway=6,100x75 feet, or 457,500 square feet that is plowed. Additionally, clearing snow from around the runway lights, and moving snow out of the taxiway safety area increases the effort by another 457,500 square feet as the runway safety areas are 37.5 feet off of the pavement edge on both sides of the runway. Therefore, runway effort= 915,000 square feet. Taxi-lanes on the airport equal 243,250 square feet. This includes all of the taxi-lanes than front all of the private hangars and the FBO's. Clearing Taxiway A from A-2 to the west end equals 235,000 square feet. This taxiway is presently not cleared in the winter time, but will need to be cleared when the TTF operation begins. If we are required to clear the entire taxiway A, the square footage is increase to 300,000. During non snow removal times, a split of 79% airfield, 21% on airport but not airfield would also seem reasonable as the safety maintenance of the runway and taxiway system has a much higher priority and requires the majority of effort. Present effort for snow removal equals 915,000 runway square feet plus 243,500 on airport taxi-lane square feet equals 1,158,500 square feet. Airfield effort is presently calculated to be 78.98%. On Airport taxi-lane effort is calculated to be 21.02%. With TTF access snow removal effort will add 235,000 to 300,000 square feet to the total. This is not taking idle assets and applying them to new effort, but will require additional diesel, wear and tear on equipment, and staff hours. Staff hours are especially critical during continuous and heavy snow times when overtime is required. If we assume that only taxiway "A" from A-2 to the west end needs to be cleared in addition to what is presently cleared, then the total snow removal effort increases to 1,393,500 square feet. The TTF additional share of snow removal effort is 16.86%. The Airfield share would then be 65.66%. And, the on airport share would be 17.47%. Approximately 40% of the year's maintenance and operation is dedicated to snow removal. 40% f the Operating budget= $235,400 X 40% or $94,160. 16.86% of the snow removal effort for the TTF would equal an additional $15,875; however, since this will be a non exclusive use, it would be reasonable to allocate their additional share based upon their share of the total, or 36.24%, reducing the additional Snow Removal Cost allocated to the TTF licensee to $5,753. Airfield Cost Allocation The airfield share of cost at 79% X $235,400 = $189,966. Airfield Use can be divided into three categories, USFS, Transients, and the Military. USFS accounts for 24% of the airfield use. The USFS share would equal $44,632. Although they are paying $36,326, their fee is adjusted annually for inflation, and then adjusted every five years to equal 24%, or a different amount if their share of use increases. Transients If we look at revenue received transients account for 26% of revenues generated net of property taxes. This would translate to saying that transients should be generating $61,204 in revenue based on the current year budget. Local Traffic This leaves 50% of the airfield use allocated to local use, or $117,700. The TTF license would compromise 36.24% of the revenue producing area. TTF Share of Airfield Cost Therefore the TTF is $117,700 X 36.24%= $42,654 plus an additional reduced share of Snow Removal cost of$5,753. $42,654 + $5,753 = $48,407 TTF share of Airfield cost. This is equivalent to 20.6% of the FY 07 operating budget. Allocation of Revenues On Airfield Hangar Fees- Based upon the DRAFT FY 08 budget, On Airfield Hangar Leases, including the FBO leases will generate $100,118. This is an area of approximately 26.17 acres, including taxiways, aprons and adjacent unused areas. Use Fees including landing fees, tie-down fees, fuel flowage fees, and ramp fees are budgeted at $52,000. USFS- Revenue from the USFS agreement is budgeted at $37,415 for FY 08. The USFS agreement is set up to capture 24% of operating costs, and is adjusted for inflation every year. Presently the agreement is only paying about 62.7% of the 24% of operating costs. The apron areas associated with the jumper base are about 3.21 acres TTF- The TTF area is 16.7 acres. The Total acreage of these areas is 46.08 acres. The TTF comprises approximately 36.24% of the revenue producing area. The On Airfield Hangar, FBO, and USFS comprise approximately 63.76% of the revenue producing areas. If we look at the allocation of expenses between airfield at 79% and on airport non airfield at 21%, then it is reasonable that revues should be allocated in the same percentages. Property Tax support $ 76,714 User Fees $ 42,500 Hangar Leases $ 78,920 USFS $ 36,326 Other/Interest $ 1,533 Total Revenues $235,993 If we reallocate property tax support between user fees and hangar leases on a proportional basis (USFS is exempt from property taxes) then an adjusted input from user fees is $26,850 + $42,500 = $69,350, and the adjusted input from Hangar Leases is $49,864 + $78,920 = $128,784. If we allocate 79% of the adjusted Hangar Lease input to the Airfield, then the allocation of hangar input for airfield is $101,739. The TTF license compromises 36.24% of the revenue producing area. Therefore, the TTF allocation of airfield expense is $101,739 X 36.24% _ $36,870. Adding the additional snow removal effort of$15,875 normalizes this amount to $52, 745, or 22.35% of the revenue budget. This amount should be adjusted by CPI beginning October 1, 2007. A rough estimate at this time is 3%. Fee for TTF Licensee Although Cost is likely the most rationale method of allocating the fee for the TTF operator, Revenue must also be considered to assure that fees charged are "at least at parity" with On-Airport lessees. Utilizing cost the equal fee would be $48,407, or 20.6% of the FY 07 operating budget. Utilizing Revenue, the equal fee would be$52,745 or 22.35% of the FY 07 operating budget. The TTF licensee will also be paying the same fees for fuel flowage, landing fees and other equivillent fees