2016-11-14-minutes-public-works-study-session

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KITTITAS COUNTY DEPARTMENT OF PUBLIC WORKS PUBLIC WORKS — BOARD OF COUNTY COMMISSIONERS STUDY SESSION STAFF REPORT STUDY SESSION DATE: November 14, 20'16 TOPIC: IASCO Use Agreement ACTION REQUESTED: Direct Staff Proceed with a 20'16 Airport Use Agreement with IASCO LEAD STAFF: Mark R. Cook RECOMMENDATION: Direct staff to proceed with a 2016 Airport Use Agreement with IASCO. BACKGROUND: In February 2015, Kittitas County Public Works created an Airport Use Agreement with IASCO supporting flight training services at Bowers Field. The original agreement set an annual fee of $500.00. During 2016, staff approached IASCO on several occasions and requested communication from IASCO management developing a 2016 use agreement. Recently, the IASCO staff contact for the County severed from IASCO. Over the past several months, staff has been communicating to IASCO the rationale for developing an appropriate use fee. Several months ago, staff determined the number of landings and takeoffs from IASCO accounts for approximately 90-95% of all such actions at Bowers Field. We have been advising IASCO (for over six months) that we intend compiling all consumable costs (lighting, striping, snow removal, weed control and other budgeted undistributed costs) as the basis of setting a use fee. We have been clear that we intend applying the percentage of landings and takeoffs to these costs as the fee basis of the use agreement. DISCUSSION: Evaluating 2015 and 2016 consumable costs to date provides a basis of understanding annual expenditures. The average annual cost for services is approximately $30,000/year. Using the 90% figure equates to approximately $27,000 per year. We propose setting the annual Airport Use Fee for IASCO at $24,000 per year; based on the rate of consumption of services not covered by any other financial instrument (land lease or FBO services). Page 1 of 3 PUBLIC WORKS BOARD OF COUNTY COMMISSIONERS WORK SESSION STAFF REPORT