COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

MAY 3, 1999

ATTENDANCE:

B & A MEMBERS: Wishnie, Abinanti, Carsky, Kaplowitz, Mosiello,

Chairman Wishnie called the meeting to order at 10:15 a.m.

DISCUSSION: (There is a cassette tape on file for more detailed information)

On motion of Legislator Mosiello, seconded by Legislator Kaplowitz, the motion to approve the Minutes of April 26, 1999 was carried by a vote of 6-0. (Legislator Abinanti out for vote)

Committee reviewed the A&C Calendar for May 6, 1999. Answers to questions pending back-up information.

COMMITTEE ON BUDGET & APPROPRIATIONS

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• Commissioner Landi stated that they are continuing to look into parking situation with the goal of having a uniform policy to ensure that all employees are treated equally.
• Currently not all employees pay for parking. In some situations, (i.e. Mt. Vernon where the County owns the lot) employees do not pay for parking.
• In New Rochelle there is an escalating scale for parking. The current rate in New Rochelle for parking is $15 per space, the employee pays $10 per month and the County subsidizes $5 per month.

• There is a payroll deduction for employee parking twice a month. No one pays more than $10 per month.
• Employees who have to park in White Plains lots pays approximately $60 per month. There is not enough parking for all of the employees in White Plains. There is a waiting list of approximately 490 employees for County (White Plains) parking. There is only a waiting list of 6 in New Rochelle.
• Committee stressed that they would like to see a consistent parking policy for all employees so everyone is treated fairly.

23. Proposed legislation relating to the lease of property at the Airport for the construction and operation of two light general aviation facilities. (4/12/99) (Also referred to ENV)

• This legislation would authorize the County to enter into 30 year lease agreements with Westair Aviation Services LLC and Panorama Flight Service, Inc.
• Commissioner Church explained that Light General Aviation is the term used to designate the segment of non-commercial aviation community that is capitalized by small airplanes, usually propeller driven and owned by private citizens.
• Commissioner Church assured the Committee that this project is within the Master Plan.

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• The County’s participation included the necessary infrastructure improvements at the Hotel site which was completed in September, 1998, and the echo site which is expected to be completed by November, 1999. The Hotel site, of which the county’s portion is complete, occupies 25.5 acres and provides parking for about 380 aircraft. Echo replaces the western end of the former runway and occupies 23.5 acres and has parking for about 166 planes.

• Aircraft parking has been located on vacant pavement, deactivated taxiways and adjacent grasslands frequently in the Kensico watershed.

• The new facilities will have lighted and paved parking for both aircraft and automobiles. Auto parking will be separated by security fencing from aviation areas.
• New facilities will be tied to an Airport drainage system. Sewers will serve maintenance areas and de-icing pits.
• No run-off will go to Rye Lake.
• According to Commissioner Church, the county has funded the basic infrastructure improvements with Airport revenue and other non-County funds. No tax levy money has been invested in these projects.
• At the end of the expiration or termination of the lease, title to all infrastructure improvements provided by the lessees shall vest in the County.
• The Department of Transportation, in conjunction with the Airport Advisory Board, developed an RFP for the Operation and Management of a Light General Aviation Fixed Base Operation at the Airport. The RFP was issued on December 8, 1997, a preproposal meeting was held in January, 1998 and all proposals were due on February 9, 1998. The RFP was distributed to 47 potential proposers, and advertised in local newspapers and national trade publications. The only proposals received were from the incumbents, Panorama and Westair. A selection committee of representatives from DOT, DPW, the Law Department and the Airport Advisory Board evaluated the proposals and determined that it would be in the best interests of the County to proceed with the selection process. On June 11, 1998 Westair was offered Hotel Site and on June 15, 1998 Panorama was offered the Echo site.

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• Lessee is to provide a hangar and a T-hangar and the current level of general aviation services for 30 years.
• Tenant investment is expected to be in the area of $3.7 million for both sites. Both tenants have secured the financing for their projects. Panorama has indicated that they are going to go through the Westchester County IDA process and Westair will go to a commercial bank for a loan and will have also conducted a lottery for pre-paid T-hangar arrangers.

• Fees to the County: several alternatives were looked at (i.e. price per square foot) and they decided on percentage of gross payment. The percentage of gross is purposely kept low in the initial periods of time and will escalate over time. If they are successful beyond expectation, the County will share in their success.
• Fees to the Public: need to keep them economically reasonable. In some cases there are no changes. Careful to establish a fair waiting list for new facilities and services.

• Tenants will be responsible for (at their cost):

• Maintenance of all hangar items, including structural and routine repairs
• Snow removal, landscaping, trash removal, tiedown ropes, asphalt cleaning, hazardous material handling, grass cutting, and routine and structural maintenance of gates and all asphalt under T-hangars
• All repair costs (related to normal wear and tear) for asphalt maintenance, lighting, joint sealing, crack repair, tiedown anchors, surface paint, wash racks, and blast fencing, up to a specified maximum annual amount. The threshold amounts are as follows: $5,000 for years 1 through 5; $10,000 for years 6 through 10; $15,000 for years 11 through 15; $20,000 for years 16 through 20; $25,000 for years 21 through 25; and $30,000 for years 26 through 30. Upon reaching such amount the County and each lessee shall share any additional costs.

• Westair has been at the field since 1948. Panorama has been at the field since 1958. They are established operators at the field, they are competitors.

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• In the agreement there is a substantial inspection commitment where the tenants will have to submit to the County their daily inspection, monthly inspection, and annual inspection so that the County will know the current condition and know that there is a preventive maintenance program being carried out by the tenant.

• Currently tenants are paying a rental based on a per square foot basis not activity levels. The new agreement goes to a percentage of gross.

• Committee requested a schedule showing current income vs. income under new service.

• Mr. Kaplowitz asked what will happen to the current Panorama and Westair sites. Mr. Russell stated that one of the goals was to consolidate Light General Aviation from all the various places over the field. One of the tie down areas will be taken over by corporate hangars, one tie down will be closed, a facility that includes a hangar will be demised and demolished and a taxiway will go through the center of it. Panorama is currently in Hangar "F" under an arrangement with Champion International. That space will revert back to Champion International. General Aviation will be concentrated on the west side of the Airport under this plan.

• Mr. Kaplowitz inquired as to the County’s share of the percentage of the gross operating profit on the sale of aircraft and on the charter or management of aircraft owned by lessee but not based at the Airport. Mr. Russell explained that with regard to fee centers one is the percentage of gross, however, they do offer services that can have high gross but they don’t have the same expected return. For example, with aircraft sales you may sell for a half a million dollars but you may just get a flat fee, therefore it would not be fair to essentially bulk up your gross revenue and expect them to pay a percentage on it. They have created a "second box" where they take a percentage of operating that profit and the companies are allowed to take away some of the cost of the aircraft. Most of the profit will come from percentage of fee. Currently the County does not share in the gross operating profit in these matters as they are paid in a per square foot formula.

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• Mr. Kaplowitz inquired as to the use of glycol. Mr. Russell explained that both deicing and aircraft washing during the summer are provided for environmentally in a sensitive manner in that any glycol or soap would be collected in a basin. Mr. Russell Assured the Committee that the proper kind of glycol is being used.

• Committee requested a copy of the Airport Advisory Committee’s endorsement of this project.

• Commissioner Church stated that they made sure that the County has final recourse in all financial matters.
• Committee requested a letter from Commissioner with regard to the finances of the companies and the fact that they can met their financial obligations.

On motion of Legislator Abinanti, seconded by Legislator Young, the motion to approve this item was carried by a vote of 7-0.

1. Gift Acceptance: Acceptance of a gift from Hudson Valley Bank to be used for the Sunday Concert series at Governor Malcolm Wilson Park. (4/26/99)

On motion of Legislator Young, seconded by Legislator Mosiello, the motion to Receive and file this item was carried by a vote of 7-0.

There being no further items for discussion, on motion of Legislator Young, seconded by Legislator Mosiello, the meeting was adjourned at 11:20 a.m.