An Editorial...The Fuss over the Trust
This week the Grove City Council voted to request transfer of real property from the public trusts to the city. Boiled down, the purpose is to reduce risk of losing property in case of a lawsuit against one of the trusts. While slight, the risk is still there as long as the trust holds property, because the trust can be sued.
The two things that get people stirred up the most are Money and Power. Loss of either can cause a catastrophic reaction.
Put on simple terms, why should taxpayers of Grove foot the bill for two attorney's arguing over the reduction of risk and possible loss of property owned by the citizens of Grove?
Public trusts are required to operate as a legal entity separate from the municipality; separate meetings are required, separate books, accounts and fiscal affairs. Funds of the trust must not be commingled with those of the municipality, according to Title 60 of the Oklahoma Statutes, Sections 176-180.4.
But many in Grove will state that our airport trust has been "out there doing its own thing for too long." In 2004 the authority allowed a local developer to remove dirt from the airport property without being declared surplus property, according to a report. The Airport Manager is the only employee that does not report either to Council or the City Manager. Not a single member of the airport trust was elected by the people. They serve five year terms, a year longer than the U.S. President. The meeting minutes even refer to people by first names, which is not exactly per Roberts Rules of Order.
The transfer of property will go smoothly with GMSA and GIDA; it is the Grove Municipal Airport Authority trust transfer request that will not go silently into the night. We can expect more fighting over this issue.
Public trusts were created to borrow money, which the city cannot, without a vote of the people. The city is the beneficiary of the trust. It is not unlike a parent-child relationship, but in the case of the Grove airport trust, the child is always having temper tantrums over authority.
The public trust is liable for its own torts, and property owned by the trust is subject to loss in the event of a lawsuit. So the idea is to transfer all of the property to the city where it is safe.
Grove hired an outside CPA firm in early 2005 to make recommendations on a number of city functions. One of them regarded ownership of and title to Land.
In its recommendations, Carlson & Cottrell, CPA/s of Shawnee, OK, said quite simply:
"All assets purchased by the City of Grove, or with funds received by the City of Grove should be held in title by the City of Grove for use by the Grove Municipal airport Managing Authority. The city and authority should determine which land was purchased by which entity and the source of the funds used, and make any necessary changes to the title-holder."
City Attorney Ron Cates, in a letter of Dec. 12, stated "a conveyance to the City of Grove of all real estate held in the name of the trust would greatly enhance the protections for the real holders of interest in the real property, i.e., the citizens of Grove, while at the same time not interfering with the Trustees duties and rights pertaining to the overall management of such airport property…"
Victor Bird, chairman of the Oklahoma Aeronautics Commission, made similar pleadings at a recent meeting of airport managers held in Pryor.
There you have it. The city does not intend to interfere in the operations of the airport, but wants to eliminate risk to its property in case of a lawsuit. And everyone knows that in today's world litigation is something we all face at one time or another.
But at this week's council meeting one would have thought the airport authority trust was being asked to disrobe in public and run around the hangers, based on their reaction and previous meetings where the subject was much discussed, again using attorneys working on the clock.
In the last council election there was much talk of the "airport crowd" and its controlling nature.
The Grove Municipal Airport belongs to the City and its citizens, not the trust board members, and they would be well advised to recognize the tail does not wag the dog here and work for the good of all of us, while continuing to manage a fine airport in a sound manner.
The two things that get people stirred up the most are Money and Power. Loss of either can cause a catastrophic reaction.
Put on simple terms, why should taxpayers of Grove foot the bill for two attorney's arguing over the reduction of risk and possible loss of property owned by the citizens of Grove?
Public trusts are required to operate as a legal entity separate from the municipality; separate meetings are required, separate books, accounts and fiscal affairs. Funds of the trust must not be commingled with those of the municipality, according to Title 60 of the Oklahoma Statutes, Sections 176-180.4.
But many in Grove will state that our airport trust has been "out there doing its own thing for too long." In 2004 the authority allowed a local developer to remove dirt from the airport property without being declared surplus property, according to a report. The Airport Manager is the only employee that does not report either to Council or the City Manager. Not a single member of the airport trust was elected by the people. They serve five year terms, a year longer than the U.S. President. The meeting minutes even refer to people by first names, which is not exactly per Roberts Rules of Order.
The transfer of property will go smoothly with GMSA and GIDA; it is the Grove Municipal Airport Authority trust transfer request that will not go silently into the night. We can expect more fighting over this issue.
Public trusts were created to borrow money, which the city cannot, without a vote of the people. The city is the beneficiary of the trust. It is not unlike a parent-child relationship, but in the case of the Grove airport trust, the child is always having temper tantrums over authority.
The public trust is liable for its own torts, and property owned by the trust is subject to loss in the event of a lawsuit. So the idea is to transfer all of the property to the city where it is safe.
Grove hired an outside CPA firm in early 2005 to make recommendations on a number of city functions. One of them regarded ownership of and title to Land.
In its recommendations, Carlson & Cottrell, CPA/s of Shawnee, OK, said quite simply:
"All assets purchased by the City of Grove, or with funds received by the City of Grove should be held in title by the City of Grove for use by the Grove Municipal airport Managing Authority. The city and authority should determine which land was purchased by which entity and the source of the funds used, and make any necessary changes to the title-holder."
City Attorney Ron Cates, in a letter of Dec. 12, stated "a conveyance to the City of Grove of all real estate held in the name of the trust would greatly enhance the protections for the real holders of interest in the real property, i.e., the citizens of Grove, while at the same time not interfering with the Trustees duties and rights pertaining to the overall management of such airport property…"
Victor Bird, chairman of the Oklahoma Aeronautics Commission, made similar pleadings at a recent meeting of airport managers held in Pryor.
There you have it. The city does not intend to interfere in the operations of the airport, but wants to eliminate risk to its property in case of a lawsuit. And everyone knows that in today's world litigation is something we all face at one time or another.
But at this week's council meeting one would have thought the airport authority trust was being asked to disrobe in public and run around the hangers, based on their reaction and previous meetings where the subject was much discussed, again using attorneys working on the clock.
In the last council election there was much talk of the "airport crowd" and its controlling nature.
The Grove Municipal Airport belongs to the City and its citizens, not the trust board members, and they would be well advised to recognize the tail does not wag the dog here and work for the good of all of us, while continuing to manage a fine airport in a sound manner.
posted by Editor | 2:29 AM
0 Comments:
Post a Comment
<< Home