After hearing cost estimates, the Redmond City Council voted unanimously Tuesday night to authorize city staff to begin necessary steps to provide its own aircraft support services for Redmond Airport.

In May the city updated the minimum standards required for fixed-base operators at Redmond Airport, adding a requirement for increased hours of fueling and mechanical services in response to concerns from air carriers and general aviation clients. Fixed-base operators typically provide services such as fueling, towing, emergency aircraft mechanic and flight instruction.

The Redmond Airport fixed-base operator contract is with KC Aero, which subcontracts some services to Butler Aircraft Co. Butler’s contract expires July 27.

Interim Airport Director Bob Noble told the council in May he had recently received a call from an irate man who missed his son’s graduation. His flight was unable to leave on time because a mechanic wasn’t available, Noble said.

“We need to step up our game and it may cost us something,” Noble said. “We need to look for good partners who are willing to engage.”

Noble said discussions since 2013 with its FBO have not yielded results in terms of agreements and he was served notice that it may pursue legal action regarding the contract. Concerned that renegotiated terms would not be possible by the contract renewal deadline, the city began investigating the possibility of provided its own services, primarily fueling.

Noble also reminded the council at the May meeting that runway work over the next two summers would limit the airport’s number of available runways at times, making mechanical support services especially important if a plane becomes disabled.

Councilor Tory Allman agreed. “We can’t be a first-class facility with sub-par services. We’ve invested a lot of money in the airport, we need to make sure it’s operating at its full potential.”

During the council’s Tuesday night meeting, Redmond Airport’s new director, Jeff Tripp, said that setting up basic FBO services would require the city to lease equipment for fueling and towing, estimated at $252,000 annually. Gross profit from airport fuel sales, including air carriers, military, Forest Service and general aviation, was $1.3 million in 2013.

He estimated personnel costs for a city-staffed fixed base service would be about $700,000.

KC Aero co-owners Ed Gilmore and Arnold Keeton spoke at the meeting, telling the council they were willing to discuss the issue with city staff but felt strongly that changing the terms of their lease, which is how they see the updates to the minimum standards, was grossly unfair.

“We’ve invested millions of our own money to meet requests by the city and we expected our 45-year lease would help us recoup the costs,” said Gilmore. “If the city gets into the fueling business, that will bury us.”

Councilor Ed Onimus replied that the city most definitely did not want to get into the FBO business but needed to make sure its customers at Redmond Airport were provided for.

The KC Aero owners agreed to meet with the city for more discussion.

The council also authorized a change to the 2013-14 budget, authorizing up to $50,000 for a legal defense fund to be used in case the airport’s fixed-base operator sues.

— Reporter: 541-548-2186, lpugmire@bendbulletin.com