Update
The City started off by proposing a $5K yearly fee, then dropped it to $3700, then to $500. They've now agreed that $0 is the fee! They say they won't budge on the requirements for the mechanic to have insurance, and even though we may lose, we're still going to fight it. The argument we have is, the same insurance requirements are already in place for hangar renters, so the City is covered.
The City was very surprised at our turnout, approximately 30 pilots, and I think they thought because they went from $5K to $3700 before the meeting that we would be happy. They also thought they wouldn't get opposition when they lowered it again to $500. So, from our experience, show up in force to Airport Board meetings if you have an issue.