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Local Airport Funding

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MINUTES OF THE

Local Airport Funding Task Force

Tuesday, July 7, 1998 . 9:00 a.m. . Room 303 State Capitol



Members Present:
    Sen. Lyle Hillyard, Co-Chair
    Rep. Bill Hickman, Co-Chair
    Sen. Ed Mayne
    Sen. Alarik Myrin
    Rep. Judy Ann Buffmire
    Rep. Don E. Bush
    Rep. James R. Gowans
    Rep. Glenn Way
    Mr. Robert Froelich
    Mr. Jerry Peterson
    Mr. Danny Quillen
    Mr. Russell Widmar
    Mr. Leonard Wojcik

Members Absent:
    Ms. Sheri Griffiths
    Mr. Jeremy Taylor

Staff Present:
    Mr. Benjamin Christensen,
     Research Analyst
    Mr. Keith Woodwell,
     Associate General Counsel
    Ms. Angela D. Kelley,
     Legislative Secretary

Note:    A list of others present and handouts distributed are on file in the Office of Legislative Research and General Counsel.

1.     Committee Business - Chair Hickman called the meeting to order at 9:05 a.m.

    MOTION: Rep. Buffmire moved to approve the minutes of June 24, 1998. The motion passed unanimously with Chair Hillyard, Sen. Mayne, and Rep. Way absent for the vote.
                                
2.    Funding Requirements - Mr. Robert P. Barrett, Department of Transportation, Aeronautical Operations, finished the presentation that he started at the June 24, 1998 meeting. He discussed possible solutions for Utah's airport funding problems, and discussed the advantages and disadvantages of several possible solutions.

    The committee discussed ways to reduce airport expenses. The committee also discussed distribution of the aviation fuel tax and considered whether the state or the local sponsor should be responsible for the cost of each airport.

    Mr. Mel Leseberg, Provo Municipal Airport, stated that Provo City pays approximately $95,000 per year in operating expenses out of the city's general fund to operate the Provo Airport.
    
3.    Jet Fuel Prices - Mr. Tommy Davis, Manager, Fuel Procurement and Supply, Delta Air Lines, distributed a handout titled "Utah Jet Fuel Price Analysis and Concerns" and explained its content. He explained that although prices are coming down, jet fuel is still more expensive in Salt Lake City than most other markets in the western United States. He also said that Delta has an option of tankering gas to the destination where it is flying. He explained that there are several

reasons for tankering in gas aside from cost savings -- sometimes there are fuel shortages and sometimes there are weather conditions that require diverting the airplane.

    The committee discussed the price of jet fuel, alternative sources of jet fuel, and the dangers of tankering fuel. The committee compared the amount of aviation fuel sold to people passing through the state as opposed to local use.

    Mr. Monte Yeager, aeronautical planner, Aeronautical Operations, discussed the rating system used for evaluating the quality of airport pavements. He said the system he uses is called a micropaver and is used by other states to identify types of pavement deterioration. He stated that he surveys the airports that he is responsible for every three years, if possible.

4.    Committee Discussion on Funding Alternatives -The committee discussed the functions of airports and alternatives for funding airport construction and maintenance. The committee also discussed the relative merits of the personal property tax on airports.

    Sen. Mayne recommended looking at a service area or county option sales tax as a means to enable the residents of those areas to decide if an airport should be maintained in the area.

5.    Other Business -     

6.    Adjourn -

    MOTION: Rep. Bush moved to adjourn the meeting at 11:43 a.m. The motion passed unanimously.F:\USERS\NAE\AIRPORT\JULY98\JUL07MIN.WPD

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