Jefferson City is expected to save approximately $92,500 annually with a new agreement for operations of the tower at Jefferson City Memorial Airport.
As it is, the city covers about 18 percent of costs to run the air traffic control system at the airport through a contract with Midwest ATC Service, Inc.
The city has been in this agreement for quite some time, Public Works Director Matt Morasch said. Recently, he was told the program would be moved to a fully-funded program as of April 1, 2021.
City Council approved an agreement for July 1 through Dec. 31, 2020, as part of Tuesday night's meeting.
The 2020 contract was delayed because of funding issues and contract negotiations between Midwest ATC and the Federal Aviation Administration.
Morasch said he expects another contract would be coming for January through March 2021, which would cover until the tower moved to the fully funded program.
Under the approved contract, the city will pay $7,708 per month or $46,248 for the six months remaining to be paid for 2020.
This was an increase of $149 per month from previous contracts, Morasch said.
"They built in cost of living increases and that kind of thing," he said.
The switch to a fully funded program without the city's involvement came from the FAA re-evaluating the cost-benefit ratio in the area, Morasch explained.
The city owns the air traffic control tower, but Midwest ATC handles the operations of it.
Midwest ATC is the region's FAA-approved service provider for the reason and employs the air traffic control personnel at the airport.
In other business, the city approved:
- A $59,559 supplemental appropriation for the parks fund, creating an amphitheater budget division.
- An amendment to Chapter 19, Schedule J (Parking Prohibited), for the modification of Veith Drive, south of Canterbury Drive.
- The move of the Facade Improvement Committee's duties and powers to the Historic Preservation Commission, thereby dissolving the Facade Improvement Committee.
Council did not approve a resolution that would continue the legal firm Cunningham, Vogel and Rost P.C. providing services as special counsel to Jefferson City.
According to the resolution, an agreement was reached in 2018 for the firm to offer those services and the firm has similar contracts with municipalities in Missouri, Illinois and Kansas. One example of services the firm could provide, according to council documents, would be to recover unpaid or underpaid utility taxes.
Ward 4 Councilman Ron Fitzwater said he has concerns about the firm's track record, such as involvement in a class action lawsuit that resulted in a payout of only legal fees, and the open-endedness of the contract.
"I just don't feel comfortable handing an open-ended opportunity to someone when there's not a huge track record of success in this area," he said. "I guess I would still like some answers to how much is this going to cost? What do we anticipate? What are those speed bumps when we take a look at it? And what is our overall opportunity to collect dollars?"
City Attorney Ryan Moehlman did not recommend the City Council discuss the topic in open session as legal issues are typically handled in closed session.
Fitzwater, Ward 3 Councilman Scott Spencer, Ward 3 Councilman Derrick Spiecer and Ward 5 Councilman Mark Schreiber voted against the resolution. Ward 1 Councilmen Devid Kemna and Hank Vogt, Ward 2 Councilmen Laura Ward and Mike Lester and Ward 5 Councilman Jon Hensley voted in favor of it. Ward 3 Councilwoman Erin Wiseman abstained.
A resolution requires a two-thirds majority vote to pass, which means it failed.
Moehlman said he'd schedule a closed session meeting to discuss the answers to Fitzwater's questions and the topic can be brought forward to the City Council again.