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BCC Minutes 05/18/2004 W (w/Airport Authority) May 18, 2004 TRANSCRIPT OF THE MEETING OF THE COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS/AIRPORT AUTHORITY WORKSHOP Naples, Florida, May 18, 2004 LET IT BE REMEMBERED, that the Collier County Board of County Commissioners/Airport Authority Workshop in and for the County of Collier, having conducted business herein, met on this date at 9:00 AM in WORKSHOP SESSION in Building "F of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Commissioner Donna Fiala Commissioner Fred Coyle Commissioner James Coletta Commissioner Tom Henning Commissioner Frank Halas ALSO PRESENT: Jim Mudd, County Manager Dennis Vasey, Airport Authority Gene Schmitt, Airport Authority Steve Price, Airport Authority Debbie Harnaga, Airport Authority Tammy Nemechek, Economic Dev. Council 1 --.. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS ;} WORKSHOP AGENDA w/AIRPORT AUTHORITY May 18,2004 9:00 a.m. Donna Fiala, Chairman, District 1 Fred W. Coyle, Vice-Chair, District 4 Frank Halas, Commissioner, District 2 Tom Henning, Commissioner, District 3 Jim Coletta, Commissioner, District 5 NOTICE: ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM MUST REGISTER PRIOR TO SPEAKING. SPEAKERS MUST REGISTER WITH THE COUNTY MANAGER PRIOR TO THE PRESENTATION OF THE AGENDA ITEM TO BE ADDRESSED. COLLIER COUNTY ORDINANCE NO. 2003-53, AS AMENDED, REQUIRES THAT ALL LOBBYISTS SHALL, BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES (INCLUDING, BUT NOT LIMITED TO, ADDRESSING THE BOARD OF COUNTY COMMISSIONERS), REGISTER WITH THE CLERK TO THE BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT. REQUESTS TO ADDRESS THE BOARD ON SUBJECTS WHICH ARE NOT ON THIS AGENDA MUST BE SUBMITTED IN WRITING WITH EXPLANATION TO THE COUNTY MANAGER AT LEAST 13 DAYS PRIOR TO THE DATE OF THE MEETING AND WILL BE HEARD UNDER "PUBLIC PETITIONS". ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE PROCEEDINGS PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. 1 May 18,2004 ALL REGISTERED PUBLIC SPEAKERS WILL RECEIVE UP TO FIVE (5) MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN. IF YOU ARE A PERSON WITH A DISABILITY WHO NEEDS ANY ACCOMMODATION IN ORDER TO PARTICIPATE IN THIS PROCEEDING, YOU ARE ENTITLED, AT NO COST TO YOU, TO THE PROVISION OF CERTAIN ASSISTANCE. PLEASE CONTACT THE COLLIER COUNTY FACILITIES MANAGEMENT DEPARTMENT LOCATED AT 33,01 EAST TAMIAMI TRAIL, NAPLES, FLORIDA, 34112, (239) 774-8380; ASSISTED LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN THE COUNTY COMMISSIONERS' OFFICE. I. Introductory Remarks from Chairman Vasey II. Airports Update: a. Everglades Airpark and Marco Island Executive Airport b. Immokalee Regional Airport c. Florida Tradeport - EDC III. Strategic Plan Update IV. Closing Remarks/BCC Comments 2 May 18,2004 May 18, 2004 Meeting was called to order by Chairman Commissioner Donna Fiala. Pledge of Allegiance was recited. County Manager Jim Mudd gave a brief overview of the meeting according to the Agenda. The Airport Authority needs to talk about their 5 year plan as a budget is given for the year. It is an Annual requirement based on a new Ordinance passed. Is to improve communications between the Board and the Airport Authority. I. Introductory Remarks from Chairman Dennis Vasey. (Chairman Collier County Airport Authority) · Changes have been made to the Airport Authority Management and rectified communications, efficiencies and coordination with the Board. · Administrative Code was reviewed and provided to Authority members and staff for discussion for the June 14th meeting. · Economic development opportunities are being exploited. · Requirement to submit a 5 year strategic business plan update will keep them focused on their goals. Will also identify infrastructure requirements to match economic growth and changes in general aviation and keep the BCC infonned of their progress. · They have a proper delegation of authority from the Board. · Have improved with more changes needed. · The Authority and Economic Development Council are natural partners and should develop and manage industrial park operations consistent with FAA and grant provider guidelines. Also total responsibility for marketing of the industrial park at Florida Tradeport. · Economic development is a goal - will prevent the Authority from paying down their accumulated debt. · Rent free facilities offered to attract jobs and industry to Collier County make revenue generation and authority debt repayment difficult if not impossible. · Potential for jobs and industry is a powerful inducement. The debt and repayment agreement was one of the best decisions made. It assures, at a future time, when the Authority makes profits, the taxpayer will realize a return on the investment. · Debt repayment is a real obligation. Imminent transfer of Everglades Airpark, at no cost, considers careful consideration. If Everglades City is to be successful in operating the Airpark, should have an opportunity to break even and make money. · It's questionable whether the debt generated should still be retained on the Authority Ledger. · He realizes the BCC is looking for a legal and cost effective Budget. He is committed to reducing the annual county subsidy. · Divestiture of Everglades Airpark demands the Authority reorganize. 2 ---"'.'-'-"'~ May 18, 2004 · Authority appointed a Budget sub-committee and issued guidance. They will make recommendations for cost reductions presented at their June meeting. · Economic development can be a significant engine for the communities and in partnership with the Economic Development Council. · Financial considerations must be addressed on debt repayment and how to account for loss in revenue from "free rent" offers at Florida Tradeport and associated with the transfer of Everglades Airpark. Introductions were made: Robin Doyle-Vice Chainnan Airport Authority, Debbie Harnaga-Airport Authority Marketing, Gene Schmitt-Executive Director, Steve Price- Airport Authority member and represent Immokalee. Commissioner Henning asked Mr. Vasey what he envisioned with the '05 Budget. Mr. Vasey mentioned there are some questions to be resolved before the Authority approves it and forwards it to the County Manager. Will be resolved by the end of June. A Budget draft has been presented in May to Mr. Mudd. Mr. Mudd discussed a few items from the budget such as: revenues understated with fuel and will need to be prepared to talk about employees. Mr. Price mentioned pennanent Executive Director will be hired in the near future and have narrowed the list to 11 at this time and will be narrowed down further very soon. The Director would then review the staffing to see if changes need to be made. Commissioner Henning asked about the remarks from Mr. Vasey in forgiving the debt. Mr. Vasey mentioned the contribution the County is making and can, under the FAA guidelines, be identified separately and be credited back to the Airport Authority. Commissioner Henning understood when the Airport Authority was created, there was a debt accumulating in those first years. The Naples Authority, being profitable right now, the City doesn't receive any of the profits. When the Collier Country Airport starts making money, the repayments will start to come back. Mr. Vasey stated it is an FAA requirement for the City of Naples stating money earned in the airport must be reinvested in the airport. He is not sure how the FAA will rule on their request, but seems to be support since the County is providing the financial money for the Authority to operate. Mr. Price gave a history of when the Airport Authority was established. The Commissioners at that time recognized responsibility to fund the Airports and prepared for matching funds for infrastructure. Discussed the City of Naples to find ways to take money out to subsidize the taxpayers. The FAA said they could not do that. He suggested keeping track of it as a debt, and at some point if the Airports become profitable, they thought of the long tenn, and no plans to immediately pay the money back. Why not create the mechanism that the County has that to get back what they put in plus interest on the money. 3 .---..... May 18, 2004 Commissioner Henning asked what happened to the long range plan where the debt will be reduced. It was a repayment ofthe debt. Mr. Price responded there was initially a ten year plan that projected the Airports becoming self-sustaining in a ten year period. Not far away from projections, but were unallocated costs in the original business plans that the County has now begun to allocate. (To all departments) That changed the ten year plan. Not the intent for it to become an overnight profit. The loan was set up to pay back. Commissioner Halas felt they need to take a step at a time, listen to his presentation and will then have an idea what they are looking at. Mr. Doyle said they thought the way it was set up was a good idea. If it is causing a problem for the County, with the debt on the books, then the recommendation to the County was to ask the County to forgive it. They have been trying to work out something with the Parks and Rec Dept. where they can expand and use a portion of the Airport property. Thought they had it all worked out and then found the FAA had to approve that use. They won't approve it unless they get fair market value for the property in charging the County rent. The FAA said the County puts money into the Airport every year maybe they can use that contribution to be consistent with the FAA requirements and wouldn't result in any real change. He felt it was a good idea. Unless it is causing a problem he felt it should be left and hope to get it repaid some day. Commissioner Coyle asked about the debt. He referred to the draft and questioned the figures knowing it is a draft. Discussed the fuel prices and asked if they would lose much business if they increased it 15-20 cents. Felt they need to look at that. Mr. Vasey referred to the Budget with the revenues being understated. Fuel costs were discussed. Commissioner Coyle felt this was a good idea of how to deal with the debt issue. He is concerned about a need to find a way to credit the loan or debt to the Airport. FAA has no choice about repayment but he is concerned about the indication they will not pennit the Airport to provide property for public use purposes. He felt there are circumstances they can provide property for public uses at a discounted rate and specifically pennit it. He is reluctant to manipulate the debt figure and would like to see repayment when the time comes that make that possible. Mr. Price responded he did not hear about debt forgiveness from the FAA person. He did say they would "consider" the political implications of their decision. If they were not to use excess property from the County, not making pennanent improvements, the FAA would consider the fact if they said "no" to the County, the County may say "no" to them at their next budget request. That is what he heard from the FAA man, not to forgive any debt. Talked about implications. Mr. Vasey stated the monies had to be separately identified in budgeting and accounting. Mr. Price talked about different maintenance costs etc. and accounting procedures with particular or separate funds. 4 May 18, 2004 Commissioner Coyle talked about decisions in attracting businesses and helping the Airport Authority become profitable in the future. He asked ifthey are going to interfere in the ability to provide discounted rates to attack business at Irnmokalee Airport. Cornman sense would prevail and FAA would review and look favorably on any constructive purpose for the Airports. Gene Schmitt added that at recent meetings he has had with the FAA there are ways to acquire grants etc. that are borderline revenue diversion issues. They put a lot of importance on the relationships they have with the Community. Airport does not pay taxes. II. Airports Update: (Report attached) III. Strategic Plan Update Mr. Gene Schmitt talked about their strategic business plan they have talked about before. (Attached) Some highlights are as follows: · Reduce reliance n General Fund Transfers · Annual transfer in 5-year plan projected to be $756,680 · Self-sufficiency is ultimate goal. · Operational efficiency & grant leveraging can reduce reliance on transfers but not eliminate them. · Elimination of the need for General Fund Transfers will eventually come from development of the Irnmokalee Industrial Park. · Goal is to draw a tenant/s for the new cargo processing facility at Immokalee. · Total potential revenue from cargo operations: $203,424 Conservative figure. · Greatest revenue generating opportunities is at the Immokalee Regional Airport. a. Everglades Airpark & Marco Island Executive Airport · Marco Airport - fuel sales up 25-39% above budget · Tenant business doing well. · Staff efficient and customer friendly. · Vegetation management programs important. · Taxiway project moving forward. · Sale of the 182 - in hands of purchasing and nationally advertised. · Everglades Airpark - fuel sales on track. · Everglades City Pilot Assn. fanned and hosted pancake breakfasts. · On tract with transferring the Airpark over to Everglade City. 5 May 18, 2004 b. Immokalee Airport: · Tenant in Incubator Support Facility-FL Architectural Inc. . Have a paying tenant · Looking for management plan for the campground. · Airport Security Program- perfonned security assessments · Integrating assessments to develop the Collier County Airport Authority Security Plan for each airport. · Complete plan before the end ofthe year. · Certification Program · FAA 139 Airport Certification Program includes revising plans to ensure compliance with certification requirements. · New Plan - new employee, Debbie, to develop and initiate a Marketing Plan . Identify Grant Sources · Assist Airport Management in revising and updating Airport Plans. Commissioner Coletta - feels debt should be a write-off for services received. If the Authority continues, it would incur another $97,000 and every year thereafter a debt incurred. Everglade City will not come up with the money. Won't be a moneymaker for them and passing it on and getting the debt off the books for the coming year the services have been satisfied. Gene Schmitt stated his concern is the taxpayer. Any way they can reduce that debt, he would be in favor of it. Originally when the County took over the Airport from Everglade City it was a $10 transfer. A fair exchange to give it back to them for something they received for basically nothing. There is no debt that needs to be satisfied. There are tremendous volunteers to carryon. Jim Mudd asked Commissioner Coletta what happens if the Airpark makes money. Profits stay with the airport unless there is a debt. The debt service is $1.8M. Commissioner Coletta did not want to impede them from not making a profit down the road, and ifthey did, it may go to the Fire Department etc. If they are going to take it away from them if they do make a profit. . .. ... . .... Mr. Mudd mentioned Sammy Hamilton has no discretion with the money - ifhe makes a profit on the airport and there is no debt, it stays on the airport. It cannot go to the Fire Dept. or any other organization. Before they make a decision, don't throw out the flexibility issue so the dollars can go back to the community if they have a profit. If the Commissioners throw the debt out and transfer it, anything they want to do with any 6 May 18, 2004 organization, the money that is making a profit on the airport will stay on the airport. Just so the cornmunity realizes it. Commissioner Coletta said they should have some mechanism they can put into place as part of their agreement for the profits from the Airport so they could go back to Everglade City. Mr. Mudd needs to talk to the attorneys, come back to the Board and not tie down the Airport and make sure they aren't going to pay back the debt until the revenues are sufficient in the operations. Discussion followed on incentives and community efforts benefiting the community. Commissioner Coletta is leery about asking them to incur a debt. If they do that, they may just leave it where it is and continue with the debt. Commissioner Halas asked about the fuel sales in Irnmokalee and the projection of sales. Also has there been additional interest in tie-downs or renting hangars. With the amount of traffic in Marco Airport, can they transfer some ofthe aircraft to Immokalee? Or would that be a problem and what is the maximum aircraft that can be handled at Marco and how much room is there for expansion. Gene Schmitt stated the Marco Airport doesn't have a lot of room for expansion. Transferring from Marco to Irnmokalee would have to be the owner/operator's decisions but could be encouraged. Talked about other airports, larger cities, 1 hub airport, and international and surrounding reliever airports. Has been some interest in hangars and moving from one airport to another. He was surprised at the number of people willing to drive to Irnmokalee. There is a glider school there, an area for aerobatics and is a friendly area. Other issues are hangar space in Irnmokalee, renting additional hangars, and in the process ofre-Iooking at the Master Plan and additional things to be done before space could be built. Immokalee good potential for expansion. Marco also has potential for expansion. Commissioner Halas mentioned freight service and asked how far they are from that being a reality. c. Florida Tradeport - EDC - Tammy Nemechek - Executive Director for Economic Development Council- the EDC has worked with the Airport Authority for a year on the branding of the Airport as Florida Tradeport. Has put on the map as a potential place for locating companies. Still waiting on the interest from Safire. Success breeds success and showing that the airport was an interest brought interest from other companies. She credited the Cornmissioners and County Manager Jim Mudd along with the private and public sector. Opportunities for the future are important. They put together a BBQ & Briefing that attracted Lt. Governor Jennings and other legislative interests. 150 people from the private sector came to see what 7 May 18, 2004 was going on. They unveiled the Florida Tradeport which is now registered with the State of Florida. They increased the awareness. Sky Truck was another company showing interest. Company is looking to assemble cargo aircraft manufacturing planes in which are manufactured in Poland. They have signed their applications for the local incentive program. They will have the opportunity for the exchange of international trade business and educational opportunities. She mentioned all the educational facilities that have agreed to partner with them. A delegation from Poland will come over in December and a delegation will go over in October and have or 3 or 4 business opportunities for companies at the Florida Tradeport. Many things have been spurred from the BCC and County staff and are very thankful. Still need to look at the long tenn development of the Immokalee Airport. Talked about increasing the road capacity on 82 and 29. The runway length was discussed. To attract larger freight forwarders and cargo companies they need to extend the runway. It needs to be done now. (Mr. Price left at 10: 14 AM) The EDC would like to take a more active role in public/private partnership with the airport or extending their partnership with the BCC - taking on a particular role to take the throttle full speed ahead and aggressively recruit companies into the airport. Commissioner Halas asked if she foresees a maintenance facility in the near future. Gene Schmitt stated there had been a major airline asking about a maintenance facility - strictly a talking stage at this time. Tammy stated Sky Truck will have a maintenance and training facility. Aviation companies that were looking to recruit will have maintenance. Mr. Mudd asked about the extension of the runway. There was a $2.7M that came in as a benefit at the end of the year as return money outside of what was budgeted. When runway extensions are done, the FAA nann ally gives a percentage of dollars to extend a runway. Heard $25M figure. How much would the FAA give as a grant - 90%/95%? He is concerned that a runway may have to be done in the next few months when he hasn't heard anything final, but now concerned on time. He would have to meet with contractors, there can be emergencies and not sure on pulling pennits - is hoping they can push their timeframe a bit. The runway was discussed with alignment studies, length, reconditioning and extension from 5,600 feet to 8,700 feet. The figure for putting the concrete down was $11 M last year. 8 My 18, 2004 Mr. Mudd stated if they are talking 5 or 10% max total cost, they have that on a one time funding source that came in this year. If that is causing people to walk away from Irnmokalee because the runway is too short, then suggests they tell the Airport Authority to get the grant and match the 5% and get going. The east/west alignment is the best. Mr. Mudd stated it doesn't make any sense to him; it's not that they are going to pay $11M or $25M out of the County coffers, going to pay anywhere from $2.5M total cost if it is $25M. Runway alignment was explained by Gene Schmitt in talking about using the east/west runway - 927 - issue came up when there were objections of aircraft flying over Corkscrew Swamp. Commissioner Henning asked if they still have a grant writer. Answer was "yes". Debbie is their person for writing and handling grants. Asked how the listed species protection would affect the runway alignment. Mr. Mudd answered he didn't know and would have to go out and take a look. The "glitch" amendment basically says they are going to move development away from habitat. Question is what habitat exists around the airport right now. Commissioner Coyle suggested they ask the Airport Authority give them a recommendation on whatever runway resurfacing or extension is necessary. They should move forward and maybe can be done in stages. BREAK -10:34 AM RECONVENED - 10:50 AM Commissioner Coletta asked about Sky Truck for instance, if they require anything additional with the runway. Tarnmy said the runway will accommodate their needs. He asked what kind of time line they are looking at. Should they build it in stages or accommodate the future and build it all at one time. For Grant purposes they would need the preliminary work done by June 1. Mr. Mudd would like the infonnation to get it done for the budget workshop. He gave the timeframe for budgeting, approvals and laying dollars aside so decisions can be made the end of June to make a detennination of millage rate for the 27th of July. Commissioner Coletta said the listed species are good questions to ask when brought back under the Glitch cycle etc. Commissioner Coyle asked about the time frame from Gene for the proposal and grant request being June 1 st. 9 May 18,2004 Didn't finish discussion on the debt - Commissioner Coletta made an argument for forgiving the debt in Everglades. Same argument can be made for Marco and Immokalee. Not the existence of the debt - it is the payment schedule. Would be a bad precedence to start canceling debt obligation. They represent all the taxpayers of Collier County. To single out one is not a good thing to do. Can be flexible about the repayment schedules and realistic about the ability to do that over time. But should not forgive the debt. Commissioner Halas thought the debt should be retained to the present Airport Commission and would relieve the pressure offthe Everglades City. Commissioner Coletta said they are talking about an airport that hasn't shown a profit in many, many years. Marco is profitable and Irnmokalee has got a future that they want to nurture. Has talked to Mr. Mudd and can see advantage of having a debt structure passed on that Everglade City would be able to draw profits off the airport. Could then be redirected. Commissioner Fiala thought it was a good idea to keep the debt on the books and whittle away when they are making profits. The $1.8M debt was discussed and many things need to be worked out. Mr. Mudd discussed the positive and negative sides concerning the debt. Commissioner Halas was looking at the option ofthe current Airport Authority taking on the debt. The taxpayer will get their money back quicker if the current Airport Authority - Mr. Mudd responded there are problems with that - but that is dissociating the debt with the assets they just gave away and difficult to do. The Clerk of Courts has some severe issues with that. Mr. Vasey stated the debt isn't the real issue - they want to keep a relationship with Everglade City and their Airpark. Never want to close the door on this issue. They have to look to the future. Mr. Coyle complimented the Airport Authority and EDC on their fine jobs that have been done in increasing interest and visibility in the Immokalee area. They should maybe fonnulize a relationship with EDC with the industrial component of the Airport. Gene agreed they have done a great job - but they have a mission and they do work together. Discussion followed on the relationship and partnership with EDC and working in cooperation with the Airport Authority. Commissioner Henning agreed with Commissioner Coyle with the emphasis on the industrial area with the EDC with the cooperation of the Airport Authority. Emphasizing how it enhances the Airport and the operation of the Airport. He is looking forward to seeing what will be presented on the '05 budget. Also the 10 May 18, 2004 runway expansion - the FAA is still taxpayer's money and would like to know the expansion is going to be used and utilized. Commissioner Halas always thought they had a good relationship with the EDC and the Airport Authority and wouldn't want to upset the apple cart. Commissioner Coletta recognizes each entity and wouldn't have gone anywhere without the EDC in exerting their influence. When setting up the organizational structure, he would be in favor of what Commissioner Coyle stated - when EDC deals with day to day can act more independently. Wouldn't have to go before the Airport Board - too much administrative dealings on the part ofthe Airport Authority. Would like to see anything major still go to Airport Authority, but day to day things should be EDC. Commissioner Coyle asked they get together and provide the Commissioners a recommendation of how it should work with what responsibilities. Commissioner Fiala said the Airport Authority has done a good job and should be the governing body and EDC would work in coordination with them. The Airport Authority thanked the support everyone has given them. Mr. Mudd stated they have Budget reviews by Airport Authority and should sharpen their pencils. ***** There being no further business for the good of the County, the workshop was adjourned by order of the Chair at 11:13 AM. Collier County Commissioners/Airport Authority Workshop Ij~¿ ~d Chairman ommissioner Donna Fiala ..¡' '1"'i¡"I..., ATTE~~S.\)'J · C~1)f~f\."'·"" '':>~I ........... "'I ~. Dwí~l'E.BRQC~td~RK .:: ~"! t.' ::,: 'i:-i~ "':l~ \ ~ 11 --_.