July 3, 2013

Eventually, the city of Blytheville may need a new municipal airport facility.

Eventually, the city of Blytheville may need a new municipal airport facility.

Guided by Sam Jackson, Councilman Kevin Snow, chairman of the Airport and Utilities Committee, recently toured the city-owned Blytheville Municipal Airport, which Snow said is in dire need of work.

Snow told the Airport and Utilities Committee Tuesday night that the hangars have dirt floors and no electricity.

He noted some renters have moved their aircraft to the Aeroplex because of the condition of the hangars, including one who left after mice kept getting in his plane.

"To say the least, that place out there is in bad shape," Snow said, noting the facility is missing out on revenue because of its deteriorating condition.

He added there are several empty hangars, and the ones occupied have low rent -- some getting hundreds a month less than hangars at the Jonesboro airport. The Kennett airport is also able to charge a higher rate than Blytheville because it is in better shape, according to Snow.

Snow said the city asset has been neglected too long, and the airport doesn't have the revenue to perform the needed work.

"He (Jackson) said this is an asset for the city -- and I agree -- that we need to take care of," Snow said. "In the end, this could be revenue-producing. It could be self-supporting and still bring money into the community."

Councilman Stan Parks said, "For some people flying in, it's their first impression of the city."

Snow noted in the past, the facility has utilized some grants for specific work like runway lighting and fencing.

He said the airport could seek a 10 percent matching grant, where, for instance, if the city puts down $30,000, the remaining $300,000 would be funded by the grant.

"He (Jackson) said -- and I probably agree -- that it would be cheaper in the long run just to build a new one," Snow said. "I don't think it's worth throwing money at this one."

Councilman John Musgraves suggested getting an estimate to rebuild and seeking grant funding.

"It's something that's going to take an investment," Snow said. "It's not something we can do right away this year. Don't get the wrong idea that I'm trying to push that. I'm not by any means. This is something that we need to be looking at because it's city property, and there's also negligence on the city's part if something happened to somebody."

He said the Airport Commission has invited Council members to attend its monthly meetings, and Snow plans to begin going to those meeting. The Airport Commission meets at noon on the second Tuesday of each month at the Holiday Inn.

Snow said Jackson is sending him the airport's financials for review as well.

He noted the airport manager, Jimmy Edwards, who doesn't draw a salary, lives out of town, but still helps out with the operations.

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Also Tuesday night, the board discussed updating old franchise fee ordinances and ensuring the city is collecting all it is entitled to by law.

Snow noted the city receives franchise fees quarterly; it anticipates receiving $1,120,000 this year.

The budgeted franchise fees include: Cable ($100,000); Electric ($700,000); Natural Gas ($250,000); and telephone ($70,000).

Snow said the ordinances need to be updated because the cable measure passed July 17, 2001; the electric other (MCEC), on Nov. 18, 1997; the electric (Entergy), on May 16, 1950; and the natural gas, on March 9, 1948.

"It is clear these franchise ordinances and agreements need to be updated and verified that we are receiving what was agreed upon," Snow said.

He noted the city can request a three-year audit of the cable company, Ritter Communications, for example, to determine if it is receiving the proper franchise fees.

Snow noted federal law dictates the maximum percentage rates, and ordinances call for Blytheville to receive 5 percent of the gross city subscriber revenue, along with city taxes.

"I'm surprised the state auditors haven't asked for financials from these places to reconcile what we're getting," he said.

Snow said the city isn't asking for more than it is supposed to receive.

He said there is a company that could do the audit for the city, though he is unsure of the expense.

Snow said the first step is contacting the companies to get their gross city subscriber revenue information.

He pointed out the city has budgeted the same franchise fee amounts for the past several years, projections that could be incorrect.

Councilman R.L. Jones asked if the city is entitled to franchise fees from wireless providers.

Snow is unsure, but he said Internet is not being franchised nationally now.

"Your franchise agreements are rent for them to run their lines," Snow said, noting if they don't have lines, the city doesn't get a franchise fee.

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Also Tuesday night, the board:

-- Briefly looked over the Wastewater financial report.

-- Heard from Snow that Blytheville Waterworks is still manually keying in five weeks worth of information that it lost when a server crashed recently. He noted they are about 90 percent complete, working to get this week's billing out.

-- Heard from Snow that the state is doing more chemical tests next week for Precoat, which is hoping to tie into the city's sewer system. Snow said preliminary results look favorable.

mbrasfield@blythevillecourier.com

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