HomeMy WebLinkAbout2009-0721 Documents Submitted at Meeting
MEMO.
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RECEIVED
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Allan Frank Sandler
PO Box 306
Ashland OR 97520
Office: 541-488-2025
TO
Martha Bennett, City Manager
City of Ashland
FROM:
Allan Frank Sandler
DATE:
July 14, 2009
RE
Concerns on the Ashland Airport
This memo is currently written as an informational tool regarding the Ashland Airport and how it
is being handled and is only stated as my opinion.
1 am recommending that the City Council hold off on accepting the Airport Commission's rate/fee
changes and new general lease points that have been changed, until a full study is conducted and
recommendations submitted by a non-partisan committee of citizens of Ashland who have the
expertise to too look into this matter. Such as attorneys, accountants, property managers, pilots and
persons with airport knowledge. lfyou do decide to approve the Commission's presentation with
certain inclusions that might relate to the below stated jtems, then 1 suggest that it be only a
temporary approval, subject to changes that might come forth during the next 6 months.
I.) In my opinion there appears to be a conflict of interest on the Airport Commission. There
are several Commission members who are voting on the hangar rents and changes in the
basic lease point, who also lease hangars at the airport from the City of Ashland. This could
be looked at as biased voting, which in my opinion, the Oregon Attorney General would not
look at favorably. This could put the City in a position of defending itself against litigation
by citizens of Ashland or the like.
2.) Numerous amenities were added and charged against myoid hangar for figuring the new
lease. But, for some reason, the large electric automatic hangar door was not added as an
amenity. Why not?? This item should be added to any and all hangars as an amenity with
an appropriate rental increase. 1 feel the City Council should have the Airport Commission
add this item to the rent before it approves the rental increases.
3.) 1 understand the current FBO is only charged about ]f3 the rent as against the non-
commercial hangars, while the FBO carries out commercial activity on the airport and
charges for such service. I also believe the FBO keeps 25% of rents collected on rent and
1
,
fees as a collection fee. Commercial property managers charge between 5% and 10% for this
service as well as handling the rentals.
4.) 1 believe that some hangars that have electricity and share a single electrical meter, such as
the T -hangars built in 2004, pays $5.00 a month flat and not a sq ft charge. . On my hangar
they want to charge .01 a sq ft or $21/montfi, plus we woul3 need to pay our own electrical
bill, which is currently with Pacific Power. This is proper, but why are not all hangars being
charged an additional fee by their sq ft for having the use of electricity. Why do the hangar's
tenants not pay for the electrical use as well?
5.) Why is there no cost ofliving increase for other hangars?
6.) Why are the leases month-to-month and not term leases?
7.) Why are the reversion hangars in a class of their own even though they become City owned
hangars at the end of their lease? I believe the Sandler hangar is one of 12 hangars in this
category and the other 1 1 will not change over for several years to come. Why put the add-
ons in a special category (City owned hangars) without the other City owned hangars being
charged accordingly?
8.) The airport does not pay for itself and is in debt. 1 understand that the airport budget does
not figure in the cost of what the City departments spend (legal, public works and etc). We
are having to let go teachers, raise taxes, garbage services and utilities rates. What is this all
about?
9.) It is my opinion that we need a full study by an outside commission to evaluate the airport.
Either raise fees or reduce services or a little of both.
10.) As far as the economic impact on the Cityof Ashland, lwas able to obtain statistics through
www.arinA V.com that indicate that the taxes paid by the approximately 21 ,000 residents of
Ashland support a facility used by just a handful of people. Those statistics are:
S03 Ashland Municipal Airport Operational Statistics
Aircraft based on the field ...................70 Aircraft operations . . . . . avg 71/day*
Single engine airplanes .................... .57 77% transient general aviation
Multi engine airplanes '.' . . . . . . . . . . .. . . . . ... . . 5 17% local general aviation
Helicopters ................................5 6% air taxi
Ultra lights . . . . . . . . . . . . . . . . . . . . . . . . . . 3 </div> <I % military
* for 12-month period ending 9/30/08
2
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Also a report from the Oregon Department of Aviation "Economic Impact of Oregon
Airports...2007 Plan", needs to be referenced because certain members of the Airport
Commission try to use this document to say extraordinary income comes from the aviation
usage related to the Ashland Airport. This report (Chapter 8) relates how important airports
are on a state level. If the residents were to see this report and realize that they are
suppnrting'antl'subswizing a conceprtnargives relatively smammpact to Ashland, foelieve
you would find some very unhappy people. Pleaser refer to Chapter I through 4 of the ODA
report as it relates directly to Ashland and talks about the importance of Ashland to the State
of Oregon, if in fact the citizens of Ashland pay to keep the airport in tact. Again, the
question is why should the City of Ashland be subsidizing other areas of the State with its
City taxes on an entity that is not paying for itself.
I would like to qualify the statements I have above made. The concerns I have stated are based on
facts as I understand them. I acknowledge that I might not have all of the relevant facts and that it
is possible some of the facts I rely on are inaccurate or incomplete. That said, I have strong concerns
as a citizen of Ashland and feel a need to express them.
cc: John Stromberg, City of Ashland Mayor
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4.34.030 Exemptions.
The tax levied by Section 4.34.020 shall not be collected or assessed on food or
beverages:
A. Sold to students on Ity public or private schools Grounds or colleges
camDuses. whether or not as Dart of a student meal Dlan. eJlEept
that food sold b..' iRdepeRdeRt EORt:FiIel6r operat:eFS at sHeh
sehools or Eolleges shall be sHbjeet t:e the taJl iMposed b'; this
ehapter;
B. Provided by Sold on hospitalst arounds:
C. Provided by bed and breakfast establishments to their guests,;,.
D. Sold in vending machines;
E. Sold in temporary restaurants including food stands, booths, street
concessions and similar type operations, operated by non-profit
organizations or service clubs.
F. Served in connection with overnight or residential facilities-including, but
not limited to, convalescent homes, nursing homes, retirement homes and
motels-if the food and beverage are provided as part of the cost of
sleeping accommodations.
G. Provided by nonprofit tax-exempt organizations to citizens over 60 years
of age as a part of a recognized senior citizen nutritional program.
H. Sold for resale to the public.
I. Sold in bulk to the public for non-immediate consumption off the premises
SUGh as includina but not limited to ice cream packed in a container of
one-half gallon or more.
J. Which are candy, popcorn, nuts, chips, gum or other confections but not
including ice cream, frozen yogurt, cakes, pies or other desserts.
K. Sold after July 1, 1993, but before DeGember 31,1993, pUF8uantto a
GonnGt tor the sale of SUGh tood or be>.'oFages signed and delhl'ered
to the oper-ator prior to May 4, 1993, pr-9'fided that a sopy ofsuGh '.
Gontr-aGt is retained by the operator for Fe':ie>N by the direstor upon
request
Sold bv an ooerator at a sinale food service event located within the
city in which restaurant or caterina services. (exclusive of alcohol I
that serves more than 150 customers or exceeds $5.000 contracted
or paid for bv one person or entity.
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Oregon
University
System
Offif;e of the Chancellor
PO. Box751
Ponland, OR 97207-0751
PHONE (503) 725-5700
I:AX (S03) 725-5709
hnp:llwww.ous.cdu
July 21, 2009
President Mary Cullinan
Southern Oregon University
1250 Siskiyou Boulevard
Ashland OR 97520
RE: Food and Beverage Tax
President Cullinan:
Liz Shelby, your Chief,of,Staff, contacted me about a possible amendment to the City of Ashland's food and
beverage ordinance ("sales tax").
Previously, Southern Oregon University was exempted from the City's sales tax; however, in current deliberations,
it appears that some business activity on the SOU campus might be subject to the amended ordinance. After brief
research and consultation with the Oregon Department of Justice, I have some serious and credible concerns
regarding the authority of Ashland-as a political subdivision of the state-to either tax SOU, as the State of
Oregon, or require it to collect a local sales tax. Currently, with the assistance of the Attorney General, I am
reviewing operative statutes and authority to conclude this matter, but Attorney General Opinion No. 7050 appears
to be informative, In that case, as stated in the Question Presented: "The City of Corvallis has adopted an ordinance
providing for a five percent hotel-motel tax, which by its terms includes short,term occupation of public and
private dormitories, Is the State Department of Higher Education required to collect the tax from temporary
dormitory residents and to pay the tax to the City of Corvallis?" The answer, after a review of analogous case law,
Oregon statutes, and the authority of the Department of Higher Education to manage its affairs, was no.
It is my understanding that SOU will request that the City retain the broad exemption for public and private
colleges already existing in the ordinance, I concur with this course of action as it will allow SOU to remain focused
on its statutory mission to educate students and offer me more time to work with the Department of Justice to offer
a well,reasoned and researched conclusion to you.
If you have questions, please do not hesitate in asking,
Sincerely,
GEMANN
c: George Pernsteiner, Chancellor
Douglas Adair, Department of Justice, Tax & Finance Section
SOUTaxLetter 090721.doc
EaStern Oregon UnlversilY J Oregonlnstiwre oITechnology I Oregon Seue Univenity I Ponland Sore University I Somhern Oregon University
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