CCMinutes - 01/21/04 WS - Laserfiche WebLink

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4. A general election would have to be held in which voters would have to determine by a yes or no vote whether the airport governance should be changed. Mr. Corey conveyed the staff recommendation that the City should remain in the leadership role in delivering airport service. He underscored that it was a user fee-based enterprise that drew nothing from the General Fund and no property tax subsidy. He stated that, under the current method of operation, it transferred a net benefit of approximately $1.3 million to the City of Eugene through activities such as Fire, Police, and Central Service allocation, fleet services, maintenance services, and other activities in a cost-of- service-provision model. He stressed that the financial forecast and the 20-year master plan did not call for General Fund or property tax subsidies as necessary to maintain the operation of the airport. He noted that a governing body generally considered creating a service district for an airport due to a need to unencumber itself from environmental, financial, and/or maintenance liabilities. To date, there were no examples of a government giving up its authority over a %moothly running" airport simply to create an airport authority. Mr. Taylor reported that a conversation at the Regional Managers Meeting had indicated only a ~tepid" interest in this change. He said the managers, given everything they had before them, did not see the need to pursue the conversation of regional government at a time when the airport was recovering and beginning to stabilize after the tragedies of September 11,2001, and when more flight opportunities were being added to the service. He felt pursuit of regional airport governance was not the highest and best use of the stretched resources of the community at this time. Ms. Bettman opened the floor to council questions and comments. Mr. Meisner expressed his appreciation for the responses received regarding the airport district. He felt the letter sent by the City had not communicated the relative health of the airport, causing the other government entities to view the suggestion for a change in airport governance with suspicion. He stressed that the council was interested in pursuing regionalization as an alternate to City governance so that, should a problem arise, the burden would not fall only on Eugene. Mr. Kelly said the $1.3 million was a payment to the General Fund for services rendered rather than a net gain. He asserted that, should the airport not be part of the City, it would not use the services and, as such, the money would not represent a loss. Mr. Corey stated that there was a synergy by virtue of being able to have a resource in place that could be applied to different service delivery needs throughout the organization. He noted that a port authority structure would be able to make its own business decisions as to how police, fire, and security services would be provided. He averred it would not be fair to say that, absent the air operation, the services and the resulting revenue would be absorbed. Ms. Nathanson said it would be difficult to create a regional air district without the enthusiasm of the district partners. She felt the letters indicated a lack of interest and that, had the City sent a letter that focused on the health of the airport, this level of interest would not have increased. She asked Mr. Corey to elaborate on the response received from the City of Springfield. Mr. Corey read aloud the letter, written under the signature of Springfield Mayor Sid Leiken. The letter indicated that Springfield would only be interested should there be broad regional support for an airport district. MINUTES--Eugene City Council January 21, 2004 Page 1 Work Session