HomeMy WebLinkAbout10-09-2003 Airport Commissionu
IOWA CITY AIRPORT COMMISSION
AIRPORT TERMINAL BUILDING
1801 S. RIVERSIDE DRIVE
THURSDAY, OCTOBER 9, 2003 — 5:45 P.M.
I. Determine Quorum
II. Changes/Amendments to Minutes of September 11, 2003 meeting
III. Payment of Expenditures
IV. Public Discussion — Items Not on Agenda
V. Unfinished Items for Discussion/Action:
VI. Items for Discussion/Action:
a. Environmental Assessment (consutant-H.R. Green Co.)
b. Vertical Infrastructure Grant — Bldgs B & C, bid opening
c. Obstruction mitigation project (consultant -Stanley Engineering)
d. Aviation Commerce Park (ACP) — Iowa Realty
i. Prospects/activity report
ii. Marketing plan/expenditures review
iii. Site improvement recommendations
e. Strategic Plan
i. Review plan
ii. Future action steps
f. Runway 07 project — consultant selection process
g. Fuel flowage fees
h. Civil Air Patrol lease
I. FY 2Q05 budget review
VII. Election of Officers
a. Chairperson
b. Vice -chairperson (if needed)
Vill. Chairperson's Report
IX. Commission Members' Reports
X. Administrative Report
A. Set Next Regular Meeting for November 13, 2003 at 5:45 p.m.
Al. Adjournment
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Agenda summary- 09 October 2003
a. Environmental Assessment — There may be a response from the FAA by the time of the
meeting to the revisions sent in by H.R. Green. Someone from H.R. Green will be at the
Commission meeting to answer questions you may have.
b. Vertical Infrastructure Grant — Bids for this project are due at 5:00 p.m. on October 9.
Someone from H.R. Green will be at the meeting to tabulate the bids and make a
recommendation. This is a 70/30-match grant from the Iowa Department of
Transportation, with a maximum contribution of $ 50,000 by IDOT.
C. Obstruction mitigation project— Stanley Engineering has started the mitigation program.
They are meeting with obstruction owners and developing a list of contractors.
d. Aviation Commerce Park —Tracy Overton will be at the meeting to discuss information
with the Commission.
e. Strategy/business plan —The draft report was presented to the Commission and Council
on September 22. The Council is expecting a report from the Commission sometime in
the next two months. The Commission will need to coordinate a final plan from ABS
and then write an action plan to implement the recommendations the Commission was in
agreement with.
f. Runway 07 project — The Commission will interview three engineering firms on October
2. If a selection is not made on October 2, the Commission should make a final selection
on October 9. The firm selected will be the engineering firm for the entire project, from
design to construction oversight.
g. Fuel flowage fees — This was requested to be on the agenda as a result of the discussion at
the last meeting concerning increasing revenues.
h. Civil Air Patrol lease — The Civil Air Patrol is leasing office space in Building G. This is
a two-year lease. A copy of the proposed lease is in the packet.
i. The FY 2005 budget proposal from the Finance Department is in the packet. As you are
aware, there is not much flexibility in the budget this year. The operating budget is
similar to last year. The Commission will need to decide what capital projects to request
funding for from the City Council.
MINUTES
IOWA CITY AIRPORT COMMISSION
THURSDAY, SEPTEMBER 11, 2003 — 5:45 P.M.
IOWA CITY AIRPORT TERMINAL
MEMBERS PRESENT: Michelle Robnett, Rick Mascari, Randy Hartwig, Baron
Thrower
STAFF PRESENT: Sue Dulek, Ron O'Neil
CALL TO ORDER:
Chairperson Thrower called the meeting to order at 5:45 p.m.
APPROVAL OF MINUTES:
Dulek suggested a couple of typographical changes. She said the August 14 minutes should
include the exact language of the motion to change the by-laws. The minutes of the July 15 and
August 14, 2003, Commission meeting were approved with the corrections.
AUTHORIZATION OF EXPENDITURES:
Mascari had questions about several of the bills. Mascari made a motion to pay the bills.
Hartwig seconded the motion. The motion passed 4 - 0.
PUBLIC DISCUSSION — ITEMS NOT ON AGENDA:
No items were presented.
UNFINISHED ITEMS FOR DISCUSSION/ACTION:
No items were presented.
ITEMS FOR DISCUSSION/ACTION:
a. Aviation Commerce Park (ACP) — O'Neil said Tracy Overton, from Iowa Realty, had a
last minute personal issue he had to attend to and could not be at the meeting. Overton sent a
letter concerning some of the questions the Commission had at the last meeting associated
with money spent for advertising. His monthly report was in the Commission packet. He
sent a copy of an ICAD newsletter that mentioned the Aviation Commerce Park.
Robnett said to remind Overton of the funds Governor Vilsak earmarked for business start-
ups. She said it might be useful in attracting businesses to the ACP. She said it was a $5
million dollar fund. It is separate from Vision Iowa. It would be available to potential
property buyers.
Mascari had a flyer from Iowa Realty. He wanted to know if a flyer could be developed and
sent out to advertise the ACP.
O'Neil said he talked to a contractor that builds steel buildings. The contractor said the same
thing that Overton has told the Commission, that he thought there is an upturn in the
business. Mascari said he thinks the Airport Manager should contact Iowa Realty on a
weekly basis. O'Neil said he would contact Overton weekly. Thrower suggested discussing
the projects planned for the Airport and how those projects may effect the ACP.
Thrower asked if the Commission wanted to discuss the letter from Scott Byers or discuss it
with Overton at the next meeting? Mascari requested that Byers be at the next meeting.
O'Neil said that by the time the second fill project is completed, almost all the ACP will be
out of the 100 year flood plain. This will make the lots more building ready.
b. Hangar # 32 lease —O'Neil said Iowa City Aircraft Repair would like to negotiate a two-
year lease. A copy of the lease was included in the packet. The rent was increased 2% per
year. He said he spoke with the tenants and it was acceptable to them.
Mascari asked O'Neil what he thought of the lease. O'Neil said he would like to see a less
complicated lease, but it was the same lease that the tenant in hangar #33 signed. O'Neil
said feedback from the tenants was that the leases are too cluttered. Mascari made a motion
for a resolution to accept a lease with Iowa City Aircraft Repair. Robnett seconded the
motion and at roll call vote, the motion passed 4 — 0.
c. Obstruction mitigation project- O'Neil said a list of prioritized obstructions was included
in the Commission packet. Mitigation of obstructions will start as soon as contractors can be
contacted. O'Neil said the MOT grant would not be enough to mitigate all the obstructions.
d. Environmental Assessment project —Dick Blum, from H.R. Green, said he contacted the
FAA today and they have started the review of the rewrite of the EA. He said that should
clear the way for the other projects in the Master Plan. Blum asked if the ACP was included
in the flow predictions for Willow Creek? O'Neil said the Corps reviewed the project for
drainage and potential wetlands. He said a drainage plan was developed. Blum said he
would like to see a copy of the drainage plan. O'Neil said the water flows to the drainage
ditch at the south end of the ACP or is captured by the storm drainage system in the street.
e. T-hangar leases — O'Neil said the only issue left to decide was what the rent would be for
the next year. Mascari and Hartwig did not participate in the discussion because they rent t-
hangars. Robnett said, based on discussions from the previous meeting, she thought a 10%
increase would be appropriate. She said this would be fair because the hangars vary in rent
and it would be an across the board increase. She asked O'Neil what he thought would be
fair?
O'Neil said that at the last meeting, the Commission discussed generating income from
increasing the flowage fee in addition to or in place of hangar rents. O'Neil said Jet Air now
pays $.05 per gallon flowage fee and $.05 per gallon for equipment rental. O'Neil said that
the flowage fee would need to be negotiated with Jet Air.
Thrower asked if there was full occupancy? O'Neil said that of the 64 hangars, there were
two or three available in the north buildings. He said there are two tenants that are selling
their planes and three potential new tenants. At this point, they are 95% occupied.
Thrower asked Dulek about voting on the flowage fee and the hangar rent at the same time?
Dulek said they should be two separate issues.
Robnett made a motion to increase the hangar rent by 10%. Thrower seconded the motion
and it passed 2 — 0, with Mascari and Hartwig abstaining. O'Neil said he would discuss the
flowage fee with Jet Air. Dulek said she would review Jet Au's lease. Thrower said this
should be an agenda item for the next meeting.
L ABS Contract Management Process Review
i. Review findings — Thrower said this would be an opportunity to review the findings
of the draft report received from Airport Business Solutions. O'Neil said he had e-
mailed the report to the Commission, but found out that the City's Information
Services has a block on a -mails of a certain size. Although his computer showed it
as sent, it didn't make it through the City's server.
Mascari said he read the report and asked O'Neil if there was a personality conflict
between him and Hodges, the author of the report? O'Neil said he read the same
thing from the report and does not know where that came from. O'Neil said he has
only talked to Hodges for a short time when he was here and then a couple of times
on the phone. Mascari said ABS said there was information they couldn't get from
the manager. O'Neil said one of the things specifically mentioned was a copy of Jet
Air's lease. O'Neil said that he not only sent them a copy of the lease with Jet Air,
he sent a copy of the old FBO lease with Iowa City Flying Service.
O'Neil said that the form that ABS wanted the financial information in was not the
same form that the City provides. He explained that the City Finance Department
and Accounting Department were the Airport's source for accounting and finance
and scheduled a time for ABS to meet with Kevin O'Malley. O'Neil said he has
access to the budget on line and can track the budget on a daily basis. The Finance
Department would have archived budget numbers.
Mascari said the report said the Airport needs to develop Minimum Standards. He
said he and Mark Anderson were the subcommittee that developed the Standards.
O'Neil said that is one of the documents he gave ABS when they were here for the
first on -site visit. O'Neil said he did not receive a list of requested documents until
ABS was about 65 days into their 90 day time period for producing the draft report.
He said when Michael Hodges was here, he gave him information he thought would
be helpful, such as the Minimum Standards, the City Code, and the State Code.
Mascari said the report says there is a lack of communication between the
Commission and the Council. Mascari said he remembers mentioning at a Council
meeting that he thought the City Manager should attend some of the Commission
meetings. The report recommends that the City Manager should be a member of the
Airport Commission. O'Neil said he told ABS that he doesn't think that is legal.
Dulek said Council policy is that City employees are not to be members of boards or
commissions that they would have direct contact with.
Mascari asked about an e-mail received from ABS that was critical of the Airport
Manager. O'Neil said he thinks that was a result of a comment he made to a
newspaper, stating that he thought, as did the majority of the Commission and
Council, that a full draft report was due at the end of 90 days. ABS said they
thought only a summary report was due. Robnett said she told the newspaper the
same thing. Mascari said that all the items and inaccuracies has put a question mark
on the report.
Robnett said she agrees, especially as far as the finances. She said the Airport comes
in on budget every year and she thought O'Neil managed it well. She said it is a
slim budget and she didn't agree with the analysis by ABS. She said she likes some
of the ideas but does not think an FBO manager would do all of the management
work for the $12,000 ABS estimated.
Many of the revenue increases are not justified. The increase in fuel sales generated
by an ILS does not take into account the cost of installing an ILS. The economic
growth factor for this area does not match the projected income growth. Robnett
said she did like some of the ideas, such as hosting the media for an event. She said
attracting student pilot starts is not as easy as they made it sound. The marketing
wasn't added as an expense.
Thrower asked if there was a consensus that the financial analysis was not complete.
Mascari said he agreed with Robnett in improving the marketing of the Airport. He
said there are a lot of ideas that need to be looked at. He said there are other ideas
that aren't very good.
O'Neil said he discussed the report with Jet Air. He asked how management and
maintenance is done in Galesburg? Harrol Timmons said that someone in Public
Works does the paperwork, management, grants, etc. There is someone from Parks
that does the mowing and the Streets Department cleans the runways. The only
difference from Iowa City is that the City employees are from different departments
and not assigned to the Airport.
Mascari said one thing that he would like to pursue was a mention of a land swap.
He said if the Commission took two or three lots and turned them over to the City, in
exchange for the money owed on the hangars, the Commission would come close to
breaking even.
Robnett said she would suggest the Council change the Airport from an enterprise
fund to a general fund, such as they did recently with Transit. She said it might
change the expectations, although the goal would still be to work toward self-
sufficiency.
O'Neil said there are some factual errors in the report. He said, as an example, that
ABS said the Commission spent $ 5 million dollars on the ACP infrastructure.
O'Neil said there were several pages dedicated to how to hold an open house.
O'Neil said the annual fly -in and open house hosted by the Commission and
SERTOMA is one of the more successful in Iowa.
Mascari asked about the number of operations? O'Neil said the number of
operations is counted and published by the IDOT. The numbers ABS used were
numbers given to the Airport by the IDOT. O'Neil said the IDOT places counters
on the runways for a week, four times a year. The number of operations is projected
from those counts. The IDOT sent reports directly to ABS.
ii. Actionable recommendations — Chapter 1 Thrower said there were two action
items. The first dealt with increased involvement with the business community. He
said that without any details in the report, he is assuming this referred to
organizations like ICAD and the Chamber. Hartwig said the idea has merit and he
thinks they are already doing that. He said he knows O'Neil was speaking to a
group from the Chamber just last Tuesday. O'Neil said he does not turn down an
opportunity to explain the Airport to groups, although he does not get asked that
often. Robnett said ICAD would be a good group to talk to and she would volunteer
to go with him. Some groups don't have speakers at their meetings. Thrower said
the Commission should lay out a plan of which groups they would like to visit with.
The second action item was to increase the interaction with the City Manager.
Thrower said he felt there was a direct channel to the City Manager through the
Airport Manager. O'Neil said he meets weekly with the rest of the Department
Directors, usually to discuss upcoming Council meetings. O'Neil said that since the
Commission meeting with the Council a year ago, he has provided the City Manager
with information about the Airport on a more frequent basis. He said he provides
the City Manager with a copy of the Commission's information packet so he is
aware of issues being discussed by the Commission.
Thrower said there is a unique relationship between the City Manager and the
Airport Manager and it is a potentially a very positive relationship. The City
Manager has a good perspective on what is going on in the City and Johnson
County. O'Neil said the City staff meetings involve going over projects that the City
is involved with as they relate to Council action.
Mascari said the interactions with the City Manager should be documented in
writing. O'Neil said memos sent to the City Manager discussing the Airport are
always copied to the Commission. Mascari said he would like to see all
conversations with the City Manager documented so the Commission has a record of
the contacts. O'Neil said that could be done.
Chapter 2 - The first action item is better record keeping. Thrower said this is
something that needs more detail from ABS. Thrower asked if there is scheduled
maintenance or is it handled if a problem develops?
Thrower asked if it would be beneficial to have more preventative maintenance
contracts? O'Neil said they have a couple of maintenance contracts, but experience
would suggest not spending money on the service contract and repair things as they
need it. O'Neil said the City has an HVAC contract and elevator maintenance.
Mascari asked where the Airport might consider using a service contract? O'Neil
said there aren't too many areas that would apply, maybe the self-service 100LL fuel
pump. He said they do routine inspections of the Airport facilities and grounds. He
does not know if paying for an outside service contract would be beneficial.
A second action item was to continue to monitor rates and fees at comparable
airports. Thrower asked O'Neil if that was done? O'Neil said rates at other airports
are reviewed when there is an opportunity to change rates and fees. Continually
monitoring rates on an annual or quarterly basis would not be productive if Iowa
City's rates were locked in by leases. Robnett said she knows that in the past, the
Commission has compared rates when negotiating leases. She said on a major lease,
it might be good to have a professional appraiser value whatever property is being
leased.
The next action item suggested playing a stronger role in economic development of
the area. Thrower said that is hard to argue against. He said the Commission might
want to lay out a more specific course. Thrower said the next item, monitoring
demographic business and University activity for aviation opportunities, is like the
item before it. It is obvious the Commission should do this. Robnett said with the
University being a research school, and cutting classes to meet budgets, it would be
difficult to get the school interested in teaching aviation. She said there might be
more success getting a community college interested in offering aviation classes.
Robnett said that there might be an opportunity to foster more cooperation with the
Daily Iowan to write positive articles about the airport and aviation. Mascari said he
thought Iowa State offers aviation as a class. Robnett said they do, through their
Engineering School. She said Iowa State is more applied engineering than Iowa.
Iowa's is research based. Robnett said maybe the University would be interested in
some of the property is the Aviation Commerce Park.
Thrower said maybe Kirkwood College would be interested in being more involved
in aviation at the Iowa City campus. Robnett said it would be great to have private
and instrument classes, as well as A & P classes. Mascari said he thought the FBO
had tried that with Kirkwood in the past.
Thrower said the last action item for Chapter 2 was covered in previous discussions.
Chapter 3 — The first action item was that the FBO/Manager should take a more
active role in management and development of the airport. Thrower said this issue
was covered as part of the opening review of the findings. Mascari said that the
Airport Manager is essential when it comes to obtaining grants and doing the day to
day maintenance. He said he would not be comfortable having the FBO doing those
things for the Airport. Thrower said the question is would the City be willing to pay
the amount of money needed hire the resources to write grants comparable to the
resource they already have in the airport manager? Robnett said the FBO could be
asked how much they would charge to do different duties at the Airport. Mascari
said the Airport needs a person to carry out the ideas and objectives of the Airport.
He said it is important to maintain a manager.
Hartwig asked if there isn't some conflict with the FBO being the manager? He said
that is one of the reasons the City and Commission wanted to separate that in the
past. O'Neil said there were several reasons for the City wanting their own manager,
the increasing conflict of interest being the last straw. He said ICFS was paid several
thousand dollars per year, plus income from the t-hangars. Hartwig said you need
both the FBO and a manager, but they need to work together. Thrower said you
could contract out management services, but have you saved any money in the end?
Mascad asked Harrol Timmons how they operate in Galesburg. Timmons said he
used to be the airport manager, but not any more. He said the official manager is in
the Public Works Department and does the paperwork. A city park employee does
the mowing. The City street employees plow the runways. Mascari asked if plowing
the airport was a priority? He said it is a priority basis for two or three trucks.
Timmons said Galesburg also has a pretty sizeable Street Department. Mascari
asked about the daily management of the airport? Is it done by City staff? Timmons
said it is now. They do not have an airport commission. As far as revenue, he pays
hangar rent similar to the way he does in Iowa City. All the hangar revenue goes to
the City. The airport also has over 400 acres of very good farmland that generates
$ 60,000 to $90,000 per year revenue. He said at one time they had airlines, which
allowed them to get additional grants to develop the airport. He said he was airport
manager until last year. He said the airport does not get charged for other City
departments working at the airport.
Mascari asked if the airport is an enterprise fund? Timmons said no, it is a very
uncomplicated system. Timmons gave a brief history of the Galesburg Airport,
including the City trading the old airport site in town for a 600 + acre site at the edge
of town.
Mascari thanked Timmons for his information. He said there are several things at
Galesburg that help the airport's budget. Number one, it is not an enterprise fund.
Number two, there are no interdepartmental loans to repay and no charge -backs. He
said Iowa City's budget would be better balanced if the situation were the same as in
Galesburg. Timmons said there has always been a cooperative effort within the City
towards the airport.
Thrower said the next action item said to begin implementation of the suggested new
organizational recommendations. He said there is no consensus from the
Commission to act on that recommendation. He said that item can be pulled off.
Robnett said if the Council was interested in pursuing this item, they could develop
an RFP to develop a cost comparison. .
The next recommendation was continued oversite of the Airport by the Airport
Commission. Thrower said that is not an actionable item by the Commission.
The fourth action item is that the City Manager should maintain a full-time position
on the Airport Commission, as a representative of the Mayor's administration.
Thrower said this does not appear to be an actionable item.
Make adjustments to the lease agreements is the next item. Thrower said there are
efforts underway in that regard.
Thrower said the efforts for aggressive joint marketing will be discussed later. He
said there has been some discussion to that in relation to the Aviation Commerce
Park.
The next item is to restructure advisory and communications distribution to City
leaders. Thrower said, simply put, this is as simple as keeping everyone briefed.
Mascari said this involves the Commission reporting regularly to the Council. He
said there should be a renewed effort to do this. Thrower said the Mayor and at least
one of the Council members were at the fly -in breakfast.
The management team needs to be able to manage several goals simultaneously was
the next item. Thrower said he thought O'Neil multi -tasked very well.
The ninth item was to seek development and installation of a precision landing
approach. Thrower said there is a runway extension project and an obstruction
mitigation project currently going on. He said he does not know if ABS was aware
of those projects in the context of this statement. Mascari said Council and
Commission members visited with the FAA in Kansas City to discuss this issue. An
equipment manufacturer spoke at a Commission meeting. Robnett said the
Commission also informed the Council that the United hangar needed to be moved
because it was an obstruction to implementing the Master Plan. Robnett said the
preliminary numbers generated by H.R. Green should be sent to the Council. O'Neil
will send that information to the Council.
Blum, from H.R. Green, said the report says that Runway 17/35 will close when the
obstruction mitigation project is completed and an instrument approach is installed.
He said it was his understanding that the runway would he closed when the extension
of Runway 07/25 is completed. Mascari said the thought the runway would remain
open until there is a replacement approach on Runway 25. O'Neil said that issue
should be resolved. Blum said the Master Plan identifies the closing timeframe as
when the extension is completed.
Hartwig asked Timmons what his view was of having an instrument approach?
Timmons said that increasing the runway length and an ILS would double the jet fuel
sales. Timmons said the runway length is the most important project. Mascari asked
Timmons about a WAS approach? Timmons said it would be several years away.
Hartwig said he thought the physical installation of the light system might be
difficult. Blum said the esthetics have not been discussed.
Robnett said the Commission needs to determine how realistic getting an ILS is. She
asked O'Neil how likely it would be to get funding for an US? O'Neil said the
Commission is getting conflicting information from the FAA. The division that
designs and installs the instrumentation says it can be sited in Iowa City. The
Planning and Programming division has indicated that it is not a priority for funding
in Iowa City. Robnett said ABS left out funding for an ILS in their analysis.
Mascari said one problem to solve is how to get the FAA to pay for maintaining an
ILS. He said this would be $60,000 to $70,000 per year.
The next recommendation is to maintain a high level of safety and security. O'Neil
said he met with TSA and IDOT to discuss upcoming safety and security issues.
O'Neil said there are no mandates at this time. He said a lot of the things being
recommended because of September 11 were already being done at the Airport. He
said this would include having lockable hangars, fencing around the Airport, and
controlling access to the airside of the Airport. He was told that Iowa City is ahead
of many airports in eastern Iowa as far as safety and security are concerned.
The last action item is to provide excellent service. O'Neil said he believes this is
absolutely an example of a joint effort between the City and the FBO. The tenants
on the field are the Commission's customers. Jet Air has an excellent reputation for
customer service.
Chapter 4 — The first item was to adopt a leasing policy. Thrower said that ABS
included a template. O'Neil said many of the suggestions in this section are things
the Commission is doing. They do not have a formal leasing policy or rates and
charges policy, but they do have minimum standards, uniform lease language, and
security deposits.
O'Neil said the outlines given were a good starting point to develop policies. He
said the examples included in the report were probably adopted from AAAE or some
other organization.
The sixth action item is to prepare and maintain emergency phone numbers and
addresses for all tenants. O'Neil said he has phone numbers for the tenants, but not
as an emergency document. Thrower said this could be an actionable item.
The last item was to negotiate a separate operating agreement with the FBO.
Thrower said this had been discussed earlier and the idea rejected.
Mascari asked what documents ABS received? O'Neil said he sent everything they
requested that he had, including the Minimum Standards. Mascari wanted to know
why ABS said they need to develop Minimum Standards? Thrower said it was not
because it wasn't provided.
Chapter 5 — Robnett said that she thought there should be more money in the budget
to send O'Neil to more conferences. O'Neil said he has tried to go to one national
conference a year. He said that as far as networking is concerned, the FAA
conference in Kansas City and the Iowa Aviation conference are very important.
Robnett said education is very important in keeping the Airport proactive. She said
this is well -spent marketing money.
O'Neil said AAAE has conferences for airport management and owners and NATA
is the national organization for FBOs and aviation businesses. Both sponsor national
conferences
Timmons said that in Illinois there is an annual conference. O'Neil said Iowa does
same thing and the FAA, the IDOT, the Iowa Public Airports Association and airport
operators are invited. Robnett said she recommends going to national conferences.
She said most of the conferences she has been to are invaluable.
Another item was to conduct surveys. O'Neil said the IDOT is going to provide
posters and forms to collect data on who is using the airports in Iowa and what their
reasons were for being in the individual communities, such as business, recreation,
etc.
Chapter 6 - The first item is to reduce and/or eliminate tax subsidy to the Airport.
Mascari said the FAA grant assurances obligate the airport to work towards self-
sufficiency.
The next item is to increase t-hangar rates and flowage fees. Thrower said this has
already been discussed.
Item three was to increase fuel volumes. Thrower said increasing the runway length
and installing a precision approach should increase fuel volumes. Mascari said some
of the increase is up to the FBO to market their services. There could be football
game -day specials. Hartwig said traffic is not as heavy as it used to be on game
days. O'Neil said it depends on the weather, whom the University is playing and
what kind of season the team is having.
The next action item was to restructure management to reduce overhead. Thrower
said this is a reoccurring theme in the report. Mascari said the Commission might
want to think about taking a look at the possibility of maybe reducing the
maintenance worker to part time.
Action item five was to develop milestone incentives for the FBO. Robnett said she
thought there was some conflict with this. She said ASB suggested that the FBO get
more active and generate more income and share that profit with the Commission.
She said she doesn't think any FBO would agree with that idea. Thrower said the
information shared by Timmons about the tenant constructing a building with their
own money and the City securing low cost financing may have some possibilities.
Mascari said something happened similar to that in Iowa City. O'Neil said that the
FBO built an addition to a building. The City told him that if he built the building
and finance it and they would pay the monthly mortgage payment. He would pay the
City rent for the building. It will be a 30- year agreement. Eventually, the FBO, who
was then the manager, convinced the City that instead of paying rent, he would just
pay his own mortgage payment. Simplified, he ended up with his rent fixed for 30
years. The FBO was supposed to do the maintenance on the part of the building he
built, and the Airport was to maintain the old part of the building. The building was
to be in good repair when the Airport took over the maintenance after the 30 years.
It didn't work out. O'Neil said a better agreement would need to be written if the
Commission wanted to explore an option like that.
Another action item was to improve financial tracking of revenues and expenses.
Thrower said this was covered earlier. O'Neil said that after Commission
discussions with the Council, the Accounting Department now does the billing.
Thrower asked O'Neil if he could run a report that would tell if someone was behind
in their rent? O'Neil said he could run a report, but does not do that on a regular
basis. He relies on the Accounting Department to let him know if they are having
trouble collecting rent and if they needed him to intervene.
Thrower said the review of the direct and indirect economic impact of the Airport
was discussed earlier. Robnett said the Commission might have to hire someone that
is an expert in the field to conduct an economic impact report.
Action item eight suggests negotiating a land swap of industrial park property.
Mascari and Robnett said they liked that idea. Thrower said that is an actionable
item.
The next item is to complete a facilities audit and facilities need audit. Thrower
asked if there was a need for an outside audit. Mascari said the budgets have always
been in order. O'Neil said the City does an audit every year. Occasionally, capital
projects are selected that they would like to audit in more detail. There have been
Airport projects selected and there have not been any problems providing additional
information of the accounting on the projects. Thrower said facilities needs are
assessed with the annual budgets. Mascari said additional hangar space is built only
after there is a big enough waiting list. O'Neil said airside needs are discussed in the
10
Master Plan. O'Neil said the Commission would be working on next year's budget
soon.
Mascari asked about maintaining the asphalt by the north t-hangars? O'Neil said that
the best solution would be to replace the asphalt. Because the Commission does not
have the funding for this, O'Neil recommended slurry -coating the asphalt. It has
been put in the budget the last couple of years, but has been removed at the Council
level. O'Neil said the budget would be on the agenda the next month.
The last item listed was to complete an energy and environmental study. O'Neil said
the Airport, in conjunction with the runway project, has been working on an
environmental study for the last 10 months. An energy audit was conducted by the
City a few years ago and Mid American routinely conducts energy audits for their
customers. They compare the Airport's energy use as compared to other commercial
customers.
Mascari said this report is listed as a draft. He wanted to know if there were going to
be changes? Thrower said the report was presented to the Commission. ABS will
come to town and discuss the report with the Council and Commission and
clarifications can be included.
iii. Determine neat steps — Thrower said the purpose of the draft is to provide for an
interaction between the Commission, the Council and ABS. The document logically
describes key elements of concern. How does the Commission want to focus the
discussion and ask questions?
Mascari said he would like to review the items with ABS before meeting with the
Council. He would like to have a meeting with the whole Commission as opposed
to a subcommittee. O'Neil said Michael Hodges plans to be in Iowa City about an
hour before the meeting on September 22. Thrower said the Commission could
meet and have a conference call with ABS. Thrower asked O'Neil to schedule a
meeting for September 16 at 5:30 p.m. Robnett said ABS did not talk to the
Commission members individually and she would like more interactions. She said
some of the marketing information would be helpful.
The Commission directed O'Neil to have at least Michael Hodges available for the
conference call. O'Neil said he would explain that the Commission wants some
clarification on some of the action points so they will be able to explain things to
Council.
g. Runway 07 project
i. Timeline — O'Neil said he gave the Commission a memo outlining a timeline for
selecting a consultant. O'Neil said there were six responses to the RFQ. He would
recommend shortening the list to three and interviewing the finalists. Thrower said
he would need some type of criteria to short-list the companies. O'Neil said he
would recommend using the FAA consultant selection criteria. He included a copy
of the criteria in the Commission's information packet.
O'Neil said he would shorten the FAA criteria list and put it in a form that is easier
for the Commission. Thrower asked the Commission if they wanted O'Neil to
11
provide them with a short-list of firms to interview? Mascari said that is what he
would prefer. Robnett said she agreed.
O'Neil said he has read a large number of proposals for projects, both for the Airport
and on committees for the [DOT and he thought the six proposals, as a group, were
some of the best he had seen. He said any one of the firms could do the project. He
said the consultants all have spent time at the Airport, getting an understanding of the
project and trying to understand exactly what the Commission wants to accomplish
from the project.
Thrower said he knows the City builds projects all the time and wondered if the City
has some criteria that could be used to supplement the FAA criteria? O'Neil said he
would contact Public Works or Planning for criteria. The Commission asked O'Neil
to utilize downtown resources and give them a list of three to interview.
iv. Selection process — O'Neil said he would send the Commission a list of three
companies. He said the Commission could conduct telephone interviews, have a
subcommittee interview and make a recommendation or have the whole
Commission interview. In the past, the entire Commission has interviewed the
firms.
Thrower asked how the criteria for narrowing the list are any different than selecting
the final firm? He wanted to know if the Commission should be sensitive to price,
or if quality was the most important factor? O'Neil said the written criteria would be
the same, but the personal contact would give the Commission additional
information. O'Neil explained the FAA criteria and said price can not be a factor.
Price can be discussed only after a selection is made and the contract is being
negotiated. If the Commission can not negotiate a contract with their fast choice,
they must move on to their second choice. The FAA wants the selection to be on
quality, not price.
Thrower said if you had to re -advertise because you could not come to terms on a
contract with any of your firms, it would send a message to those that apply again
the second time of what you expected. O'Neil said that it has been his experience
that firms that apply for FAA projects have done their homework and know how
much the project is worth. There is an industry standard on what their fees will be.
The FAA also reviews the contracts and the fees and will let the sponsor know if
they fees are out of line.
Thrower asked what would separate the firms if they all meet the FAA criteria and
price can not be considered? O'Neil said it would end up being whom the
Commission was most comfortable with in the interview. Mascari said it would he a
matter of personal comfort and intuition. They all have the basics to offer and each
have areas where they are strong. Thrower said he would like to see if there is some
other criteria out there to assist them in the selection process. O'Neil said he would
try to find some additional criteria. In the past, Mascari said O'Neil has supplied the
Commission with interview questions so that the interviews are consistent.
Thrower asked if the Commission wanted to have a special meeting or wait until the
October meeting? Robnett said they could discuss this at their special meeting on
RVA
September 16. O'Neil said he would suggest the interviews be limited to 30 or 40
minutes and be a question and answer format.
CHAIRPERSON'S REPORT:
Thrower said he is very comfortable as chairperson through the meeting with ABS, but he would
like to have on the agenda at the October meeting the election of a permanent chairperson and
vice -chairperson. O'Neil said the appointment of the new commission member is October 14.
COMMISSION MEMBERS' REPORTS:
Robnett said she would contact the University marketing department to see if the Commission
could get a student team to help with marketing.
Mascari asked if O'Neil had done anything with a request from Mr. Hinckley for some dirt near
his property. O'Neil said he would take care of his request.
Mascari said the Commission needs to look at whether the Airport needs a maintenance worker in
order to reduce the budget. O'Neil said the time to discuss it is when the budget is being
discussed. It will fit in with the discussion of the business plan. O'Neil said the budget coming
out from Finance would have very little flexibility. Thrower said that if the Commission would
look at reducing the maintenance worker's time, the work would still have to get done by
someone. He said it would be important to address this at budget time because some other
department will have to pick up the work. Mascari said it might be a matter of cutting services.
Robnett noted that the City has said they were trying not to lay anyone off and the personnel
reductions would be dealt with by attrition where possible.
ADMINISTRATIVE REPORT:
O'Neil said a letter was sent to City Council, explaining the Commission's discussion of the
United hangar. O'Neil said he explained to one of the newspapers that the FAA was involved
with this project because it is a safety issue, not because the building may have some historical
significance. It is complicated by the fact that the hangar is a safety problem and may have
significance. The building is an obstruction. It was discussed that the cost estimates generated by
H. R. Green should be forwarded to the Council. O'Neil will send a letter to Council with the
estimates.
A copy of the revised by-laws was included in the Commission packet. The question was raised
on whether the by-laws needed to be reviewed by Council. O'Neil said he has discussed this with
Dulek and they thought the Commission by-laws were treated like those of the Library and do not
go to Council.
There was a list of Council candidates included in the Commission packet.
An article was included in the packet that included a graph of the per cent of the general fund
paid out for each department. The bottom of the graph was the animal shelter, at 1 %. The
Airport was not on the graph. The amount of funding from the general fund for the Airport is less
than 1%.
13
There was an article in the packet about improvements to Council Bluffs. They are a reliever
airport. Iowa City looked into being designated as a reliever, but Cedar Rapids is not over
capacity.
There is a copy of the Iowa Public Airports newsletter in the packet.
The Iowa Aviation Conference is in Des Moines on October 16 & 17.
O'Neil said he explained earlier that ITS has a limit on the size of a -mails going out and that
contributed to the delay in the Commission getting the report from ABS.
O'Neil said he received a call, asking if the Airport could use up to 130,000 cubic yards of fill.
O'Neil said he would find a place for it if the contractor got the bid. Thrower asked if fill dirt is
tested before it is placed on the Airport? O'Neil said he would check with Public Works. The
last two fill projects were managed by the Public Works Department.
O'Neil said he met with officials from the TSA and IDOT. He said he discussed safety with the
TSA and airport projects with the IDOT.
Ron Duffe, from Jet Air, asked to address the Commission. He said that there are areas on the
runways that are pooling up during heavy rains. O'Neil said overlays are planned for in the
Master Plan. They will depend on FAA funding.
Mascari asked about the commercial lots on Riverside Drive? O'Neil said there has been
discussion about marketing the property directly south of the entrance, but it has not been a
priority project. Thrower said that is mentioned in the Planning Departments South Central
District Plan.
SET NEXT MEETING:
The next regular Airport Commission meeting is scheduled for October 9, 2003, at 5:45 p.m.
ADJOURNMENT:
The meeting was adjourned at 9:47 p.m.
Baron Thrower, Acting Chairperson
14
IOWA CITY AIRPORT COMMISSION
October 2003 Airport Expenditures
Account 46110
Amount
119185
PMMIC
Underground tank insurance
50.00
119186
Seneca Company
Cathodic protection test
395.00
119187
RMB Co. Inc
Lift station repair
3620.77
119188
Larew Company
Bldg E,south unit, air condit.
1303.21
119189
Midwest Janitorial
September service
185.00
119190
Verizon
August service
1.98
119191
City of Iowa City
Sewer & water — Sept service
146.82
The above listed expenditures were approved for payment at the Iowa City Airport Commission
meeting on October 9, 2003.
Chairperson
Vice -chairperson
AVIATION COMMERCE PARK
NAI IOWA REALTY COMMERCIAL
Status Report
By Tracy K. Overton, 319-354-0989
October, 2003
Executive Summary:
There has been a slight increase in the interest level of the ACP land this last month. We
have had a few more requests for information than in previous months primarily from
area brokers. We remain optimistic that the economy is heading in the right direction and
thus soon to follow will be stronger interest/activity in small business development and
expansion.
An offer to purchase ACP land was received this month and is under review.
Administrative Issues:
New Issues
Old Issues
Signage for the main entryway off of Riverside Dr.
Marketing Issues:
Advertising — We have an ad that will be appearing in the Press Citizen a few times over
the next couple of weeks.
Prospects
No strong prospects at this time.
Tracey Overton aviation 5x4 9/26/03 11: AM Page 1
Aviation Commerce Park
IOWA CITY • IOWA
PRICING:
Lots 1, 7, 6, 9
Lots 5, 6, 10,
Lots 2, 3, & 4
�1
Prepared by: Ron O'Neil, Airport Manager,1801 S. Riverside Drive, Iowa City, IA 52246 (319)356-5045
RESOLUTION NO. 03-18
RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST AN
AGREEMENT WITH IOWA REALTY COMMERCIAL TO SELL AND /OR LEASE PROPERTY IN
THE AVIATION COMMERCE PARK
WHEREAS, it is -a goal of the Airport Commission to generate as much income as possible for the
Iowa City Municipal Airport, and;
WHEREAS, the Airport Commission and the City Council have worked cooperatively to develop a
17-lot commercial subdivision on Airport property, and;
WHEREAS, the Airport Commission and the City Council have agreed to contract with NAI Iowa
Realty Commercial to sell or lease the property known as the Aviation Commerce Park
subdivision, and;
WHEREAS, attached, marked Exhibit 1, and incorporated herein is the Listing Agreement that the
Iowa City Airport Commission has approved by resolution on January 6, 2003.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA
CITY, IOWA, that the Council approves the attached agreement, and authorizes the Mayor to sign
and the City Clerk to attest said agreement.
It was moved byyanderhoatand seconded by Wilburn the Resolution be adopted, and
upon roll call there were:
AYES
x
)i
NAYS
ABSENT
Lehman
Champion
y_ Kanner
Pfab
Vanderhoef
Wilburn
O'Donnell
Passed and approved this 7 da January, 2003.
E.mest Lehman, ayor /•
ATTEST: 7tr-4 /
Madan Karr, City Clerk
Approved by
la-3r�o�
City Attomey's Office
EXHIBIT
LISTING AGREEMENT
This Agreement is being made and entered into among NAI Iowa Realty Commercial
(hereinafter called "Agent"), the City of Iowa City, a municipal corporation, (hereinafter called
"Owner'), and the Iowa City Airport Commission (hereinafter called "Commission") in Iowa City,
Iowa.
RECITALS:
Whereas, the Owner desires now to offer the land lots in Aviation Commerce Park (hereinafter
called "the lots" or "the Property") for sale as well as for lease contingent upon approval by the
Federal Aviation Administration to sell the lots;
Whereas, the Owner desires the Commission to recommend to it whether an offer to purchase
should be accepted;
Whereas, the Owner desires the said lots may still be offered for lease by the Commission with
consultation with the Owner, and
Whereas, the Agent desires to be the Owner's agent in selling the lots and the Commission's
agent in leasing the lots.
AGREEMENTS:
NOW, THEREFORE, it is agreed as follows:
1. COMMISSION. The Commission has the sole right and authority to review and approve
any land lease transaction. Attached, marked Exhibit "'A", and incorporated herein is an
agreement for the listing of the lots by Agent
2. OWNER. The Owner has the sole right and authority to review and approve any land
sale transaction The City Manager may accept an offer to purchase on the contingency that
said offer must be approved by the Owner. The Owner may not enter into a land sale
transaction without receiving the Commission's recommendation. If the Owner rejects the
Commission's recommendation, the Owner and the Commission shall meet to discuss the
potential sale transaction, but the Owner maintains the sole right and authority to enter into said
transaction.
3. SALES AND LEASE PROCEDURES. An outline of the land sales transaction is
attached, marked Exhibit "B", and incorporated herein, and shall be utilized for the sale of the
lots. An outline of the land lease transaction is attached, marked Exhibit "C", and incorporated
herein, and shall be utilized for the lease of the lots.
4. GA ENCY. Owner hereby employs Agent and Agent accepts such employment by Owner
as the exclusive agent with the sole right and authority, to offer for sale and to sell the land,
designated as lots 1-17 on Exhibit "D" which is attached and incorporated herein, (hereinafter
referred to as the 'Property").
5. TERM. The term of this Agreement and Agent's employment, right and authority shall be
extended for 12 months from the last date affixed below.
6. AGENT'S RESPONSIBILITIES. Agent hereby agrees as follows:
a. To secure and compile appropriate and customary written information with
respect to the sale of the Property.
b. To exert Agent's best efforts to perform its obligations under this Agreement
including, but not limited to, enlisting the efforts and resources of Agent's organization,
and. to: (i) list the Property for ale with any local or other appropriate multiple listing
services; (it) advertise the Property for sale in a commercially prudent manner. Agent
shall advertise the Property at terms and conditions that have been approved in advance
in writing by Owner and attached hereto as Exhibit "E°. Agent acknowledges that the
Owner anticipates recording Restrictions and Covenants and that he will notify potential
buyers of said restrictions and covenants.
C. To submit monthly progress reports to the City Manager and the Airport
Manager by the first day of each month, concerning the status of marketing, interested
parties and any negotiations together with current market information affecting the
Property. At the request of Owner, Agent shall attend meetings of Owner relative to the
scope of this Agreement, and at the request of the Commission, Agent shall attend
meetings of Commission relative to the scope of this Agreement.
d. To solicit active cooperation from other qualified brokers in the sale of the
Property.
e. To use its best efforts to sell the Property at the terms approved by Owner.
7. PAYMENT OF SALE COMMISSION. Agent acknowledges and agrees that Owner shall
be obligated to pay sales commissions and fees, as set forth below, only to Agent. Agent shall
be entirely responsible for payment and safisfaction of any and all co -brokerage obligations due
any other brokers or sales agents working with Agent, or who have procured for Agent, or
referred to Agent, a buyer.
8. OWNER'S RESPONSIBILITIES. Owner hereby agrees as follows:
a. During the term of this Agreement, Owner shall pay Agent a sales fee per
transaction for a Buyer procured by Agent as follows:
7% of the first $500,000 of gross sales price
6% of the second $500,000 of gross sale price
5% of the next $1,000,000 of gross sale price
3% thereafter
b. In addition, Owner shall pay Agent a sales fee, as set forth above, for a sale
effected by Owner within 350 days following the termination of this Agreement,
provided: (i) Agent has previously shown the Property to the buyer, (ii) such
buyer is included on a written list of prospective buyers submitted to Owner
within ten (10) calendar days following the termination of this Agreement.
G. Except as specifically set forth herein, to refrain from negotiations with
prospective buyers or their agents and to direct to Agent all prospective buyers
2
and their agents, and all brokers, and other persons or entities interested in
purchasing the Property.
d. To cooperate with Agent and to permit Agent to conduct all negotiations and
other dealings with all prospective buyers and their agents.
e. At the time of settlement promptly deliver a complete abstract showing good and
merchantable title to the date of transfer and execute a warranty deed to the
property for delivery to the buyer, or enter into a contract for deed.
9. LISTING AGREEMENT WITH COMMISSION. The Listing Agreement entered into
between the Commission and Agent on April 5, 2001, is hereby terminated. Agent waives all
fees, commissions, and other financial remuneration that it may be due under said agreement,
including but not limited to an early termination fee under Paragraph 2 and a commission for
leasing lot 10 to Rob Nichols and fully releases the Commission from any and all liability,
including all claims, demands, and causes of action of every nature arising out of said
agreement.
10. NON-DISCRIMINATION. Agent covenants its employees, and agents shall not
discriminate against any person in employment or public accommodation because, of race,
religion, color, creed, gender identity, sex, national origin, sexual orientation, mental or physical
„ „
disability, marital status, or age. Employment shall include but not be limited to hiring,
accepting, registering, classifying, promoting, or referring to employment. "Public
accommodation' shall include but not be limited to providing goods, services, facilities,
privileges and advantages to the public. Agent shall remain in compliance with all requirements
of 49 CFR Part 21, Non -Discrimination in Federally Assisted Programs of the Department of
Transportation.
11. TIME OF ESSENCE. Time is of the essence as to this Agreement and each of its
terms and provisions.
12. ASSIGNMENT. Agent shall not assign or allow assumption of this Agreement
except with prior written consent of Owner and Commission. In the event this Agreement is
assigned by Owner in conjunction with the sale of lots, with such an assignment to occur only
with the express consent of Agent, Owner shall be released from liability for all matters arising
after the effective date of the assignment.
13. NOTICES. Any notice required or permitted to be given hereunder shall be in
writing and:
As to Owner shall be delivered by: (i) certified mail, return receipt requested; or (it) prepaid
Federal Express or other similar overnight delivery service, in care of City Manager, Iowa City
Civic Center, 410 E. Washington Street, Iowa City, Iowa 52240.
As to Commission shall be delivered by: (1) certified mail, return receipt requested; or (it) prepaid
Federal Express or other similar overnight delivery service, in care of Airport Manager, Iowa City
Municipal Airport, 1801 S. Riverside Drive, Iowa City, Iowa 52246.
As to Agent shall be delivered by: (i) personal service; (ii) certified mail, return receipt
requested; or (iii) prepaid Federal Express or other similar overnight delivery service, addressed
to: Tracy K. Overton, NAI Iowa Realty Commercial, 568 Highway 1 West, Iowa City, Iowa
52246.
Notice by personal service shall be deemed delivered upon service. Notice by certified mail
shall be deemed delivered three business days following deposit of the mailing with adequate
postage, addressed to the receiving parry's most current address for the purposes of notice, or
upon receipt of the certified mailing by the party to whom directed, whichever first occurs. Notice
by overnight delivery service shall be deemed given on the next business day following sending
of the notice addressed to the receiving party at their most current address for the purposes of
notice. Addresses for purposes of notices may be changed by a party from time to time upon
providing formal notice of such change to the other party.
14. AMENDMENT. This Agreement may be modified in writing only, duly signed by
all parties.
15. APPLICABLE LAW. This Agreement is declared to be a contract of the State of
Iowa and shall be construed in accordance with the laws of Iowa.
16. ENTIRE AGREEMENT. All negotiations, considerations, representations and
understandings, prior proposals or earlier written documents between the parties as to the sale
of the Property are incorporated into this Amendment, which contains the entire agreement of
the Parties as to the sale of the Property. The Parties agree and acknowledge that no
representations, warranties or agreements, other than as set forth in this Amendment have
been made by the parties to each other as to the sale of the Property.
IN WITNESS WHEREOF, the parties have executed this Amendment as of the _ day of
January 2003.
AGENT:
WITNESS: NAI IOWA REALTY COMMERCIAL
WITNESS:
• '"` ��l �"fib'``
Secretary
K.Tbwrqrej A4AtCA -IP
COMMISSION:
THE IOWA CITY AIRPORT COMMISSIO
avez
Mark A.0on, Chairperson
COMMISSION ACKNOWLEDGMENT
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
d�b3
On this day of J 2992, before me, Ca.,clrae-
a N
r 0r+ . otar Public in and for the State of Iowa, personally appeared
Mary- Andtrsen and -T 0ogA , to rso �IIIIy
known, who, being by me duly sworrk �I say tha they are the Chair and , reIry W
of the Iowa City Airport Commissioma at the instrument was signed and sealed on behalf of
the Commission, by authority of Resolution No. o;" r 1 passed adopted by the Commission,
on the __I__ day of LTd,,..nr.. '7°0?2ee2;and that McLrIZ Anpxzek
and acknowledged the execution of the instrument to be their
voluntary act anfd deed of the Commission, by it voluntarily executed.
SONDRAEFORT
Com lWan Number 159781
• My ComnYsdm E"ae
WITNESS:
Mari nit. Karr, City Clerk
STATE OF IOWA )
) ss:
JOHNSON COUNTY )
Sendnac i�..'�'
Notary Public in and for the State of Iowa
OWNER:
THE CITY OF IOWA CITY
melt Lehman, Mayor
CITY ACKNOWLEDGMENT
o7ae3
On this / rS day of �adu,+a� left before me, the undersigned, a
notary public in and for the State of to , personally appeared Ernest W. Lehman and Marian K
Karr, to me personally known, who being by me duly swom, did say that. they are the Mayor and
City Clerk, respectively, of said municipal corporation executing the within and foregoing
instrument; that the seal affixed thereto is the seal of said municipal corporation: that said
instrument was signed and sealed on behalf of said municipal corporation by authority of its City
Council; and that the said Mayor and City Clerk as such officers acknowledged that the execution
of said instrument to be the voluntary act and deed of said corporation, by it and by them
voluntarily executed.
symtm—" F"b
Notary Public in and for the State of Iowa
Approved by
SONDRAEFORT
CormnhWon Number 155781
City Attomey's Office M 4TM71�0"
This governs the legal relationship (hereinafter called "Lease Agreement") between NAI Iowa Realty
Commercial (hereinafter called "Agent") and the Iowa City Airport Commission (hereinafter called
"Commission") with regard to leasing lots 1-17 in Aviation Commerce Park as designated on Exhibit "C"
of the Listing Agreement (hereinafter called "the Property").
1. AGENCY. Commission hereby employs Agent and Agent accepts such employment by
Commission as the exclusive agent with the sole right and authority, to offer for lease and to lease the
rentable portions of the Property Commission acknowledges that Tracy Overton is its project
representative. Agent shall assign Tracy Overton to this project through the expiration of the original
term of this Lease Agreement. If Agent assigns a person other than Tracy Overton to this project, said
person must be acceptable to Commission. If said person is of equal competence and experience to
Tracy Overton, but is not acceptable to Commission, Commission may elect to terminate this Lease
Agreement, and if Commission does elect to terminate, Commission shall pay to Agent an early
termination fee of $2,500, and not the full early termination fee of $5,000 provided in Paragraph 3
below. If said person is not of equal competence and experience to Tracy Overton and is not
acceptable to Commission, Commission may elect to terminate this Lease Agreement without incurring
any early termination fee.
2. TERM. The term of this Lease Agreement and Agent's employment, right and authority
shall commence upon execution of the Listing Agreement and terminate upon termination of the Listing
Agreement, unless sooner terminated by a ninety (90) day written notice by one party to the other party,
with or without cause. In the event the parties continue to observe this Lease Agreement following the
expiration of its stated term without formally renewing the Lease Agreement, it shall be deemed to
continue on a quarter to quarter basis subject to the ongoing termination rights of the parties.
3. EARLY TERMINATION. In the event the Commission elects to terminate this Lease
Agreement prior to the expiration of the original term, then Commission shall pay to Agent, at the time
of notice, a $5,000.00 termination fee, except as provided in Paragraph 1 above. In the event the Agent
elects to terminate Commission prior to the expiration of the original term, Agent agrees to furnish,
upon demand by the Commission and without cost, copies of all basic notes and sketches, charts,
computations, diagrams, charts, maps, and marketing materials prepared or obtained by Agent
pursuant to this Lease Agreement, without restrictions or limitation as to the use relative to the
marketing of the Property. In such event, Agent shall not be liable for the use of such documents by the
Commission or others.
4. AGENT'S RESPONSIBILITIES. Agent hereby agrees as follows:
a. To secure and compile appropriate and customary written information with respect to the
leasing of the Property.
b. To exert Agent's best efforts to perform its obligations under this Lease Agreement
including, but not limited to, enlisting the efforts and resources of Agent's organization,
and to: (I) list the Property for Lease with any local or other appropriate multiple listing
services; (tt) to place the appropriate signage on the Property; and (tit) advertise the
Property for lease in a commercially prudent manner. Agent shall advertise the Property
at monthly rentals and terms that have been approved in advance in writing by
Commission.
C. To submit written monthly progress reports to Commission by the first day of each month
beginning February 1, 2003, concerning prospective tenants and the status of any lease
negotiations -together with current market information affecting the Property. At the
request of Commission, Agent shall attend meetings of Commission relative to the scope
of this Lease Agreement.
d. To solicit active cooperation from other qualified brokers in the leasing of the Property.
e. To use its best efforts to lease the Property at the rentals and upon the terms approved
by Commission.
Agent will not be held liable for the performance of any term, covenant or condition
contained in any agreement pertaining to the Property except as set forth in this Lease
Agreement and in any other written Lease Agreement between the parties.
5. PAYMENT OF LEASING COMMISSION. Agent acknowledges and agrees that
Commission shall be obligated to pay leasing commissions and fees, as set forth below, only to Agent.
Agent shall be entirely responsible for payment and satisfaction of any and all co -brokerage obligations
due any other brokers or leasing agents working with Agent, or who have procured for Agent, or
referred to Agent, a tenant.
6. COMMISSION'S RESPONSIBILITIES. Commission hereby agrees as follows:
a. During the term of this Lease Agreement, Commission shall pay Agent a leasing fee
equal to twenty-five cents ($.25) per gross square foot of land area under lease. The
leasing fee shall be due and payable in three (3) equal annual installments with the first
installment due at the time of lease execution and each of the two remaining annual
installments due onfor before the subsequent lease execution anniversary dates.
b. In addition, Commission shall pay Agent a leasing fee, as set forth above, for leases
executed by Commission within one (1) year following the tennination of this Lease
Agreement, provided: (i) Agent has previously shown the Premises to that tenant; (H)
Agent has had active negotiations with tenant; and (iii) such tenant is included on a
written list of prospective tenants submitted to Commission within ten (10) calendar
days following the termination of this Lease Agreement.
G. Except as specifically set forth herein, to refrain from negotiations with prospective
tenants or their agents and to direct to Agent all prospective tenants and their agents,
and all brokers, and other persons or entities interested in leasing the Premises.
d. To cooperate with Agent and to permit Agent to conduct all negotiations and other
dealings with all prospective tenants and their agents. All tenants, lease terms, and
lease conditions shall be approved by Commission, with all leases to be signed by
Commission upon Commission's lease form.
e. Reasonable and customary expenses incurred by Agent in providing leasing services to
the Property shall be at Agent's sole cost and expense. [given that it is doubtful that lots
will lease, as opposed to sell, it seems to me that such costs should be dealt Win the
listing agreement itself]
7. COMMISSION INDEMNIFICATION OF AGENT. Commission will indemnify, defend and
save Agent safe and harmless from all claims in connection with the Property and from liability for
damaged property and injuries to or death of any person, except in those cases where the damage to
property or injuries or death to persons is caused by, or contributed to, Agent's willful malfeasance, bad
faith, reckless disregard of duty or negligence.
EXHIBIT B
Aviation Commerce Park
Lot Sale Procedures
After Purchase Offer has been received by Agent:
1. Agent delivers copy of Offer to City Manager and Airport Manager.
2. Agent works with Airport and City Manager on negotiating favorable terms
and conditions, including but not limited to Counter -Offers.
3. Agent forwards copy of final terms and conditions to City Manager and
Airport Manager.
4. City Manager may accept offer contingent upon approval by City Council.
5. Agent presents Offer, whether or not accepted by City Manager, to
Commission for its recommendations.
6. Commission makes recommendation to Owner.
7. If Owner disagrees with Commission's recommendation, Commission and
Owner shall, within a reasonable period of time, meet and discuss said
offer prior to Owner's final action, but Owner retains sole right to accept or
reject offer.
8. Owner votes on whether to accept offer.
EXHIBIT C
Aviation Commerce Park
Lot Lease Procedures
After Lease Offer has been received by Agent:
Agent delivers copy of Offer to City Manager and Airport Manager.
2. Agent works with Airport and City Manager on negotiating favorable terms
and conditions, including but not limited to Counter -Offers.
3. Agent forwards copy of final terms and conditions to City Manager and
Airport Manager.
4. Agent presents Offer to Owner for its recommendations.
5. Owner makes recommendation to Commission.
6. If Commission disagrees with Owner's recommendation, Commission and
Owner shall, within a reasonable period of time, meet and discuss said
offer prior to Commission's final action, but Commission retains sole right
to accept or reject offer.
7. Commission votes on whether to accept offer.
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LEGEND -AND NOTES
1.
EXHIBIT "E"
AVIATION COMMERCE PARK
Pricing Model
Lots SlzaS
price md.
Purchase Price Lease Rate
1
60,076
$4.50
270,342-00
$0.29
2
193.482
$2.65
512,727.30
$0.14
3
276,603
$2.65
730.347.95
$0.14
4
313,924
$2.65
831.898.60
$0.14
5
137,904
$3.0D
413,712.00
$0.29
6
94,754
$3.30
312,925.09
$0.29
7
42,263
$4.15
175,349.95
$0.29
8
54,260
$4.15
225,137.50
$029
9
53,761
$4.15
223,161.91
$0.29
10
92,230
$3.30
304,359.00
$0.29
11
63,429
$3.60
222,001.50
$0.29
12
36,331
$4.10
144.857.10
$0.29
13
39,280
$4.10
161,048.00
$0.29
14
39,454
$4.10
161,761.40
$029
15
39.423
$4.10
161,634.30
$0.29
16
38.919
$4.10
159.567.90
$0.29
L
48,628
$4.00
186,512.00
$0.29
TOTALS
1,620,701
$ 5,197,343.50
Average gross price per sq. ft. $ 3.21
The above pricing is valid as of December, 2002.
Pricing is subject to review and adjustment at Commission/Owner's discretion.
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
September 29, 2003
Airport Business Solutions
Ms Bobbi Thompson
17040 Pleasure Road
Cape Coral, Florida 33903
Dear Bobbi:
Attached are several items of information we discussed last week. Let me know if I
should send copies to Michael Hodges and Randy Bisgard or if you will share the
information with them.
1. A typical T-hangar lease
2. Iowa City Code information
3. The current FBO lease with Jet Air
4. State Code information
When you have time, give me a call and we can discuss the presentation you gave to
the Council and Commission. I would be interested in your reaction to the discussion.
If you have questions about this information, please contact me at (319) 356-5045 or e-
mail at ron-oneil(&iowa-citv.ora
Sincerely,
Ronald J. O'Neil
Airport Manager
Cc: Airport Commission
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
June 13, 2003
Airport Business Solutions
Ms Bobbi Thompson
17040 Pleasure Road
Cape Coral, Florida 33903
Dear Bobbi:
I have started on the list of information you and Randy requested. Included in this
information is:
1. A list of 2003 leases
2. A typical T-hangar lease
3. The old FBO lease with Iowa City Flying Service
The current FBO lease with Jet Air
5. Three versions of the lease for corporate hangar #32 that were discussed at the
meeting you attended. The first one is similar to the lease the tenant was familiar
with, with just the term dates and rent changed from the last lease. The second
one is a lease the Commission approved in January and the third is the same as
the second, with comments from the tenant incorporated.
I will work on the rest of your list when I get back from vacation. If you have questions
about this information, please contact me at (319) 356-5045 or e-mail at
ron-onei i(c_Diowa-city. org
Sincerely,
Ronald J. O'Neil
Airport Manager
Cc: Airport Commission
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
July 9, 2003
Mr. Randy Regard
Airport Business Solutions
15231 Radcliff Drive
Aurora, Colorado 80015
Dear Mr. Bisgard:
This is in response to your e-mail dated July 7, 2003, requesting information on the Iowa
City Airport:
3. Grant history - Attached is a five-year grant history. The State grants are in blue, the
federal grants in red.
4. AIP obligations — The last federal grant was closed in 2002. There are two open
state grants, the Obstruction Removal and the Vertical Infrastructure. Both state and
federal grants carry the usual grant assurances.
5. Rates and fees — Attached is a list of the current leases. It will tell you what the
current rates are and when the lease started. It will also give you an asset list(#12)
6. Budget history — Enclosed are the budgets for 2000 — 2004.
7. Proposed budget — Included with #6
8. Commission meeting minutes — June 2001 —May 2003
9. Job descriptions and resumes —1 do not keep resumes on file. There are only two
employees, the Airport Manager and an Airport Maintenance Worker.
\� 11 Legal documents - The Commission was created by referendum in the 1940's. I do
�c not have the exact legislation that created the Commission. When he was here, I
gave Mr. Hodges a copy of the enabling legislation from the State Code that allows a
municipality to create an airport commission.
12. Asset inventory — Included is a copy of the fixed assets as listed with the City's
Accounting Department.
13. Legal documents -The only pending litigation are attempts to collect unpaid hangar
rent. One is for hangar rent and the other is for rent for one of the parcels in the
Aviation Commerce Park.
14. News articles — You will need to be more specific on what topics you want articles
on. Usually, if there is an article, I make a copy of it and include it in the
Commission's monthly information packet I don't keep a file specifically of articles.
16. Aerial photograph — The most recent aerial photograph of the Airport that I have was
taken in the late 1980's. 1 will send you a copy of it if you want something that old.
Let me know.
17. Environmental issues —The Commission is currently conducting an Environmental
Assessment of the Airport. It should be completed late this summer. If you have
specific environmental questions that you need answers for now, let me know and I
will put you in touch with Joe Tmka, from H.R. Green Company. The preliminary
information sent to the FAA did not indicate any environmental issues.
I have a Commission meeting on July 15. Please contact me as to when your report will
be completed. Alan Ellis, the Commission Chairperson, is going to be contacting the
Mayor this week to schedule a work session in early August. Let me know when you
would be able to present the report to the Council and the Commission.
If you have questions or require additional information, please contact me at (319) 356-
5045.
Sincerely,
Ronald J. O'Neil
Airport Manager
Cc: Alan Ellis, Chairperson
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
September 18, 2003
Listed below are some comments from the review of the draft Airport Business Solutions
report, dated September, 2003
Chapter 1, page 5 — Under flight operations, ABS may want to explain that the Iowa
Department of Transportation is the organization that provides the aircraft operations count.
They install counters four times a year, for about a week at a time, and project the number
of operations from those counts. They do not count operations every year.
Chapter 1, page 8 — Line 3, the word should be they, not "their". Also, there were 15
requests for information and 2 proposals.
Chapter 1, page 9 — First paragraph, could start out All, not "Most". Line 7, all of the t-
hangar leases are current. They started in October 2002 and expire at the end of
September 2003. In August and September, 2003, the Commission revised the lease and
increased the rents by 10% for 2003-04. Second paragraph, the above ground tanks are
12,000 gallon each and there is an additional 10,000 gallon underground Jet A tank
between Buildings G and H. Paragraph three, line three, the infrastructure investment for
the Aviation Commerce Park was $1.6 million. The Commission has not had discussions
with the Council about a land swap. That was an idea suggested by a Commission
member at a Commission meeting, but was not taken to the Council
Chapter 1, page 10 —The north/south runway is RW 18/36. It may be more accurate to say
the runway will be closed after the extension is completed for RW 07. Part of the old
runway will be retained as a taxiway. In the table comparing airports, it should be noted
that Cedar Rapids is a commercial service airport and the rest are general aviation airports,
or maybe only use the GA operations from Cedar Rapids to get a realistic comparison.
Because of their proximity to Iowa City, CR would be a good comparison for hangar rents,
fuel costs, etc.
Chapter 2, page 1, Local Demographics, first paragraph, line 5, It may not make much
difference, but Iowa City is about 25 miles from Cedar Rapids and about 55 miles from
Davenport.
Chapter 2, page 4, second full paragraph, line two, might read better as "Iowa City hangar
tenants" or "Iowa City Airport based pilots". Maybe even _ percentage that have a
commercial license. The Airport does not collect information on type ratings.
Chapter 3, page 2, line 6, "Minimum Standards" The Commission does have a minimum
standards document. That was one of the documents given to ABS when they were here
on May 5, along with the Airports chapters of the Iowa Code, and the airport chapters of the
City of Iowa City Code. If ABS needs another copy of any of that information, it would be
available for you on September 22. Line 8, because of the State open meetings law,
unless a subcommittee meets with a tenant to negotiate a lease, the Commission as a
group, must negotiate at an open meeting. When discussing the report, the consensus of
the Commission agreed with the ABS recommendation to reduce their involvement with
negotiating leases.
Second paragraph, line 2, the Airport Manager meets regularly once a week with the City
Manager and the other department directors and then has at least one or two other
contacts a week with the City Manager. At the request of the Council and Commission,
communication has increased between the Airport Manager and City Manager since the
Council/Commission meeting in August of 2002. Second paragraph, line 5, could say "The
City Manager has managing authority over all departments except the Airport and the
Library". The City Manager reports to the Council.
Chapter 3, page 4, The City Manager can not be a voting member of the Airport
Commission. Paragraph 5, Shared Management ... Line 5, There are liability concerns if
the FBO has responsibility and control "as if they were a City employee".
Chapter 3, page 5, first full paragraph, line 4, "standardized financial reporting". The Airport
does have standardized reporting through the Finance and Accounting Departments. The
City's Finance and Accounting are the Airport's resource. Accounting does most of the
billing and receives the income from that billing directly. Budgets are on-line and kept up-
to-date daily. Archived records for the Airport are available through the Accounting and
Finance Departments. The Airport's finances are included in the City's annual audit.
Annual budgets are generated from the Finance Department, reviewed and revised by the
Airport Manager and Commission, reviewed and revised by the City Manager and Finance
Director after a review with the Airport Manager, then passed and adopted by the City
Council. There is an opportunity for the Commission to meet with the Council if the City
Manager and Finance Director make changes in the budget that the Commission does not
agree with. In the last 14 years, the Commission has always stayed within the operating
budget given to them by the Council. It is the revenue side of the budget that has
fluctuated.
Chapter 3, page 5, 2"d check -mark. During their discussion of the report, the Commission
raised the question of how Jet Air would improve their market presence as an
operator/manager instead of as only the FBO?
Chapter 4, page 4, "Minimum Standards" line 4, "and " seems to be an extra word.
Standardized lease language — The Commission standardized the language on the 64 t-
hangars a year ago in October. They are standardizing the other leases as they expire and
are renewed.
Chapter 4, page 5, first full paragraph. There are 64 t-hangars and the leases all expire on
the same day. The Commission does require premise liability of $1,000,000. The City is
named as additional insured and the tenant is required to produce a Certificate of Insurance
when the lease is signed. Points 1 — 7 are all included in the t-hangar leases. Last
paragraph -The Commission does not offer aircraft parting leases. It might be a good idea
to have a lease developed in case that situation should occur. At this time, there is not a
demand for outside long-term parking. No one from the City ties down or moves aircraft.
Chapter 4, page 7, first paragraph, it is noted that ABS did not have a copy of the FBO
lease. On June 13, 2003, as requested by Bobbi Thompson, she was sent a list of the
2003 leases, a copy of a typical t-hangar lease, the old FBO lease with Iowa City Flying
Service, the current lease with Jet Air and three versions of the corporate lease for hangar
#32 that the Commission asked her to review. The Commission received the review
comments on the corporate hangar.
Chapter 4, Page 7, Paragraph 2, "The previous FBO was paying $.25 per gallon..." The
most flowage fee ICFS paid was $ .05. For most of the 20 year contract, the flowage fee
was $.03, only on fuel they sold, not on fuel they used in their own aircraft.
Chapter 5, page 3. The Airport has co -sponsored a fly -in breakfast and open house for the
last 20+ years. In 1991 and in 2001, the Airport hosted Fly Iowa, an open house and
statewide fly -in to promote aviation in the State. The event is usually the last weekend in
August. This year, in June, in addition to the annual breakfast, the FBO and Commission
teamed with a local bank to host a customer appreciation day that had an aviation theme.
In August, the FBO hosted a Chamber of Commerce Business P.M. to promote their
business and give business leaders an opportunity to see some of the Airport facilities. At
least one FAA safety seminar is conducted at the Airport annually and the last two years
the Airport has been one of the stops on a statewide poker run. The Commission
incorporates many of the suggestions mentioned in the draft report into their events.
Chapter 5, page 8, first full paragraph, line 3 should read (AAAE) The Airport Manager tries
to attend at least one AAAE sponsored event annually. The conferences are usually
productive and informative. As a member of AAAE, the Manager receives almost daily e-
mails from AAAE, updating current issues. The Manager has been on the AAAE General
Aviation committee and was a member of the planning committee and presenter at the
State Aviation Conference and FAA AIP regional conference. He has also been on Iowa
Department of Transportation consultant selection committees and a board member and
past treasurer of the Iowa Public Airports Association.
Chapter 6, page 1, last line, the Commission wanted more details on what formulas where
used for this analysis.
Chapter 6, page 2, first paragraph. The Commission had two questions. One was what is
considered a "significant restriction" to business for lack of a precision instrument approach
and two, if the FAA would not pay for this equipment and/or maintenance, was this
projected in the financial analysis?
Chapter 6, paragraph 2, lines 2, 10, 11, 12, and 13. This was reviewed in the Chapter 3,
page 5.
During the review of the report by the Commission on September 11, one of the
Commission members commented that there were several negative personal comments in
the report directed toward the Airport Manager and wanted to discuss this with ABS.
The Commission reviewed every chapter, and discussed all of the action items individually.
There were some recommendations they agreed with and would like to implement
immediately. There were other recommendations they did not agree with and there were
some comments that they look forward to discussing with ABS to get further clarification.
The consensus of the Commission was that the outlines for the Rates and Charges Policy
and the Leasing Policy will be helpful and should be developed and implemented to meet
the requirements of the Airport
Ron O'Neil
From:
Baron Thrower [bthrower@sprintmail.com]
Sent:
Monday, September 29, 2003 5:00 AM
To:
Ron O'Neil
Subject:
FW: Iowa City Airport - Strategic Planning Process (thought stimulation)
Ron,
I just realized that you were not included on the
following e-mail.
Sorry for the oversight.
Baron
-----original Message -----
From: bthrower@sprintmail.
Sent: Wednesday, September
To: michelle-robnett@uiowa
ARENA610@aol.com
Subject: Iowa City Airport
stimulation)
Fellow Commissioners:
com[mailto:bthrower@sprintmail.com]
24, 2003 9:33 AM
.edu; rdhartwig@hartwigmotors.com;
Stratigic Planing Process (thought
As you know, there are several approaches that one could consider in
developing the FY04 Strategic Plan for the Iowa City Airport. In the
interest of facilitating our discussion towards choosing a process that we
are each comfortable with, I have provided one option that you may find
useful in support of developing your own and even better recommendations.
My general approach to fairly detailed and important task is to "begin with
the end in mind". In other words, once the Iowa City Airport Commission
creates the strategy we will need to articulate it. One model of a fairly
clear/concise approach towards communicating a strategy, is via a Strategy
Articulation Map (SAM). An effective SAM should and therefore by
extension, a strategic plan must contain the following elements:
1. Vision
2. Market Differentiators (SWOT Analysis in our particular case may not be
required)
3. Financial and Strategic Objectives (revenue/cost model for the FY04
Budget)
4. Key Processes (describing actions taken to deliver on the vision)
5. Key Performance Indicators (establishing the specific metrics/measures
of success)
The Commission's success, specific to this planning exercise will be
founded in our respective ability to collaboratively leverage each other's
broader talents, as both individuals, and as fellow Commissioners.
Michelle has performed and excellent service to the Commission, by
acquiring the services of (3) MBA students (interns) from the University of
Iowa to assist us in the strategic plan development process. I would
propose that we decompose the task at hand and create assignments for both
Commission members as well as our "interns", which will afford each of us
an opportunity to support the activity using our own respective strengths.
Additionally, within our individual assignments, lets set the expectation
that we will share our respective assumptions and request input from each
other, leading up to the creation of the jointly developed draft plan.
To honor our commitments, we will need to prepare a document for the Iowa
City Council that embodies the to be developed strategy, in the context of
the findings contained within the analysis performed by ABS. I believe
that by linking the ABS findings to our strategy, articulating it in a
formal strategic plan as well as linking all cost and revenue back to our
proposed FY04 Budget, demonstrates to the Iowa City Council one key
aspect of the value provided by the Iowa City Airport Commission.
At this point we may be looking at the (4) following deliverables:
1. Strategic Plan (one document with 5 parts)
2. SAM (1 page Power Point summary)
3. FY04 Airport Budget
4. Response -Letter to the Iowa City Council (addressing the ABS findings)
I would recommend that we each volunteer for our own respective
contribution (e.g. Vision, Market Differentiators and Financial/Strategic
Objectives) to the Strategic Plan, as I believe that it is to big for any
one person to accommodate. I also recommend that, once the Commission
established the Vision, Market Differentiators, Financial and Strategic
Objectives that we ask the interns to establish and document the key
contributing processes and key performance indicators. We may also want to
have the Airport Manager create the FY04 budget, as it will reflect the
direction established/captured within the Strategic Plan and SAM.
Additionally, it may be appropriate for the noted "Response -Letter", be
assigned to whomever is elected to the role of Chairman of the Iowa City
Airport Commission during our next meeting.
Since, we already have a pretty thick agenda, I would like for each of you
to share your respective input prior to the next Commission October 9th
meeting, so that we will be positioned to use that time to finalize our
approach/task assignments.
I have covered a lot of ground and hopefully each of you will find that it
has stimulated some thoughts on what our best going forward approach should
be.
Thank you.
With best regards,
Baron D. Thrower
(319) 358-7460 Home
(319) 337-1480 Voice
mail2web - Check your email from the web at
http://mail2web.com/ .
OFFICE LEASE
THIS OFFICE LEASE made and entered into this day of 2003,
by and between the Iowa City Airport Commission of Iowa City, Iowa (hereinafter called the
"Lessor'), and the Civil Air Patrol, "CAP" (hereinafter called 'Tenant'), whose address for the
purpose of this lease is
WITNESSETH:
1. Leased Property. In consideration of the mutual terms, agreements, and conditions herein
contained, Lessor hereby leases unto Tenant the following described real property
situated at the Iowa City Municipal Airport in Iowa City, Johnson County, Iowa, ("Airport"),
to wit:
A 165 square foot office located in the northwest comer of Building G, 1801
South Riverside Drive, at the Iowa City Municipal Airport. A diagram
showing the approximate location of said office is attached hereto and
incorporated herein as Exhibit A (hereafter "Leased Property").
2. Term. The term of this lease shall commence on August 1, 2003, and shall expire on July
31, 2005.
3. Rent. Tenant agrees to pay Lessor rent for the Leased Property as follows: $50.00 per
month, in advance, payable on the first day of each month for the first year. The rent shall
increase to $ 75.00 per month for the second year. The rent shall be paid pro rate by the
Tenant for any period of possession less than a full year. Payments received after the
fifteenth day of each month shall draw interest at 9% per annum from the due date, until
paid.
4. Possession. Tenant shall be entitled to possession on the first day of the term of this
lease, and shall yield possession to the Lessor at the time and date of the close of this
lease, except as herein provided. Should the Lessor be unable to give possession on said
date, Tenant's only damages shall be a pro rate reduction of the monthly rent otherwise
due.
5. Use of Property. Tenant covenants and agrees during the term of this lease to use and
occupy the Leased Property only for CAP office purposes. In regard to said use, the
Tenant shall comply with all city, state and federal codes, including but not limited to
Federal Aviation Administration rules and regulations. Parking shall be limited to the hard -
surfaced area directly north of Building G. Access to the controlled access gate west of
the building shall not be obstructed.
6. Maintenance. Lessor shall be responsible for the structural maintenance of the Leased
Property, including the walls, roof and floor, and Lessor shall keep these structures in
good repair. Tenant shall be responsible for the interior maintenance of the Leased
Property. Tenant agrees to keep faucets closed so as to prevent waste of water and
flooding of the property; to promptly take care of any leakage or stoppage in any water,
gas, or waste pipe inside the Property; to repair any damage to electrical circuits due to
overloading. Tenant shall maintain adequate heat to prevent freezing of pipes. Tenant
shall make no structural alterations or improvements to the Leased Property without first
obtaining the Lessor's written approval of the plans and specifications. Any interior
alterations or improvements which Tenant elects to make during the term of this lease
shall comply with Title II, 42 U.S.C. 12131 ("Americans with Disabilities Act'). Further,
Tenant agrees not to construct or attach any fixtures without first obtaining the Lessor's
written approval. Tenant shall be responsible for snow removal within two (2) feet of the
building.
7. Reasonable Care of Leased Property. Tenant shall not permit or allow any portion of the
property to be damaged by any negligent act or omission of the Tenant or its employees,
and Tenant agrees to surrender the Leased Property at the expiration of this agreement in
as good condition as at the commencement of this Lease, normal wear and tear excepted.
Tenant agrees to allow Lessor free access to inspect the Leased Property at all
reasonable times.
8. Insurance.
a. Tenant shall at its own expense procure and maintain general liability and
casualty insurance in a company or companies authorized to do business in the
State of Iowa, in the following amounts:
Type of Coverage
Comprehensive General (or Premises) Liability - Each Occurrence $1,000,000
b. Tenant's insurance carrier shall be A rated or better by A.M. Best. Tenant shall
name the Commission and the City of Iowa City, as additional insured. The
Commission and Tenant acknowledge that a Certificate of Insurance is attached
to this Lease. Tenant shall provide fifteen (15) days notice to the Commission
before cancellation of said insurance.
C. It is the tenant's responsibility to keep the insurance certificate current. If the
Certificate of Insurance expires during the term of the lease, the Tenant must
provide a current certificate to the Airport within 7 days of when the certificate
expires.
9. Utilities. Lessor shall pay all water use and sewer utility costs incurred for the Leased
Property during the term of this lease, as such costs become due. Tenant shall be
responsible for all electricity and gas costs including expenses for heating, cooling and
lighting the Leased Property during the term of this lease. Tenant is responsible for his or
her own refuse disposal.
10. Non -Discrimination. The Tenant covenants, in consideration of the right to Lease Property
at the Iowa City Municipal Airport, that the Tenant, its employees, and agents shall not
discriminate against any person in employment or public accommodation because of race,
religion, color, creed, gender identity, sex, national origin, sexual orientation, mental or
physical disability, marital status or age. "Employment" shall include but not be limited to
hiring, accepting, registering, classifying, upgrading, or referring to employment.
"Public accommodation" shall include but not be limited to providing goods, services,
q
facilities, privileges and advantages to the public. The Tenant shall remain in compliance
with all requirements of 49 CFR Part 21, Non -Discrimination in Federally Assisted
Programs of the Department of Transportation.
11. Assionment. This Lease shall not be modified, waived or abandoned except in writing duly
executed by both parties. This Lease contains the whole agreement of the parties, and is
not assignable by either party without the written consent of the other.
12. Severability. In the event any portion of this Lease is found invalid, the remaining portions
shall be deemed severable and shall remain in full force and effect.
13. Indemnification. All claims of damages caused by Tenant's negligence arising under or by
reason of the terms of this lease and relating to the Leased Property as described in
Paragraph One (1) of this lease, shall be the sole responsibility of Tenant, and Tenant
agrees to defend against said claims. '
14. Grant Assurances. This Lease shall be subordinate to the provisions of any outstanding
or future agreement between Lessor and the United States government or the State of
Iowa relative to the maintenance, operation, or development of the Iowa City Municipal
Airport. Tenant acknowledges and agrees that the rights granted to Tenant in this Lease
will not be exercised so as to interfere with or adversely affect the use, operation,
maintenance or development of said Airport.
15. FAA Provisions.
a. Tenant, for itself, heirs, personal representatives, successors in interest, and
assigns, as a part of the consideration hereof, does hereby covenant and agree
as a covenant running with the land that in the event facilities are constructed,
maintained, or otherwise operated on the said property described in this (license,
lease, permit, etc.) for a purpose for which a Department of Transportation
program or activity is extended or for another purpose involving the provision of
similar services or benefits, the (licensee, tenant, permittee, etc.) shall maintain
and operate such facilities and services in compliance with all other requirements
imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted
Programs of the Department of Transportation, and as said Regulations may be
amended.
b. Tenant, for itself, personal representatives, successors in interest, and assigned,
as a part of the consideration hereof, does hereby covenant and agree as a
covenant running with the land that: (1) no person on the grounds of race, color,
or national origin shall be excluded from participation in, denied the benefits of, or
be otherwise subject to discrimination in the use of said facilities, (2) that in the
construction of any improvements on, over, or under such land and the furnishing
of services thereon, no person on the grounds of race, color, or national origin
shall be excluded from participation in, denied the benefits of, or otherwise be
subject to discrimination, (3) that Tenant, shall use the premises in compliance
with all other requirements imposed by or pursuant to 49 CFR Part 21,
Nondiscrimination in Federally Assisted Programs of the Department of
Transportation, and as said Regulations may be amended.
4
C. It in understood and agreed that nothing herein contained shall be construed to
grant or authorize the granting of an exclusive right within the meaning of
Section 308 of the Federal Aviation Act of 1958. This Lease shall be subordinate
to the provisions of any outstanding or future agreement between the Commission
and the United States government or the Commission and the State of Iowa
relative to the maintenance, operation, or development of the Iowa City Municipal
Airport. Tenant acknowledges and agrees that the rights granted to Tenant in this
Lease will not be exercised so as to interfere with or adversely affect the use,
operation, maintenance or development of the Airport
d. Tenant agrees to furnish service on a fair, equal and not unjustly discriminatory
basis to all users thereof, and to charge fair, reasonable and not unjustly
discriminatory prices for each unit or service; provided, that Tenant may make
reasonable and non-discriminatory discounts, rebates, or other similar types of
price reductions to volume purchasers.
e The Commission reserves the right (but shall not be obligated to Tenant) to
maintain and repair the landing area of the airport and all publicly -owned
facilities of the airport, together with the right to direct and control all activities of
Tenant in this regard.
The Commission reserves the right further to develop or improve the landing area
and all publicly -owned air navigation facilities of the airport as it sees fit,
regardless of the desires or views of Tenant, and without interference or
hindrance.
g. The Commission reserves the right to take any action it considers necessary to
protect the aerial approaches of the airport against obstructions, together with
the right to prevent Tenant from erecting, or permitting to be erected, any
building or other structure on the airport which in the opinion of the Commission
would limit the usefulness of the airport or constitute a hazard to aircraft.
h. During time of war or national emergency, the Commission shall have the right to
enter into an agreement with the United States Government for military or naval
use of part or all of the landing area, the publicly -owned air navigation facilities
and/or other areas or facilities of the airport. If any such agreement is executed,
the provisions of this instrument, insofar as they are inconsistent with the
provisions of the agreement with the Government, shall be suspended.
i. It is understood and agreed that the rights granted by this Lease will not be
exercised in such a way as to interfere with or adversely affect the use,
operation, maintenance or development of the airport.
j. There is hereby reserved to the Commission, its successors and assigns, for the
use and benefit of the public, a free and unrestricted right of flight for the
passage of aircraft in the airspace above the surface of the premises herein
conveyed, together with the right to cause in said airspace such noise as may be
inherent in the operation of aircraft, now known or hereafter used for navigation
of or flight in the air, using said airspace or landing at, taking off from, or
R
operating on or about the airport.
k. The Lease shall become subordinate to provisions of any existing or future
agreement between the Commission and the United States of America or any
agency thereof relative to the operation, development, or maintenance of the
airport, the execution of which has been or may be required as a condition
precedent to the expenditure of federal funds for the development of the airport.
IOWA CITY AIRPORT COMMISSION
By:
Commission Chairperson
ATTEST:
Secretary
Approved By:
City Attorneys Office
CIVIL AIR PATROL
By:
ATTEST:,
Commission's Acknowledgement
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
On this day of . 20. before me,
a Notary Public in and for the State of Iowa, personally appeared
and . to me personally
known, who, being by me duly swom, did say that they are the Chair and Secretary, respectively,
of the Iowa City Airport Commission and that the instrument was signed and sealed on behalf of
the Commission, by authority of Resolution No. passed adopted by the Commission, on
the day of . 20. and that
and acknowledged the execution of the instrument to be their
voluntary act and deed of the Commission, by it voluntarily executed.
Notary Public in and for said County and State
Board of Supervisors' Acknowledgement
STATE OF IOWA )
) SS:
JOHNSON COUNTY )
On this day of . 20. before me, the
undersigned, a Notary Public in and for the State of Iowa, personally appeared
and to me personally known, who, being by me duly
sworn, did say that they are the Chairperson, Board of Supervisors and County Auditors,
respectively, of Johnson County; that said instrument was signed (and sealed) on behalf of
Johnson County and its Board of Supervisors; and that the said and acknowledged the execution of said
instrument to be the voluntary act and deed of said County, by it and by them voluntarily executed.
Notary Public in and for said County and State
South Riverside Drive
J
RMI
L AREA
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES,
FY04
BUDGET AND
FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04
FINANCE DEPT
-------------------------
ACTUAL
ACTUAL
BUDGET
PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT
-------------------------------------------------
OPERATIONS
------
--------------------
6110 Perm. Full Time
84,674
88,536
91,947
94,630
%
INC/DEC
4.56
3.85
2.91
Justification: USE FORM 5
6130 Temporary Employees
2,574
2,184
2,728
2,315
%
INC/DEC
-15.16
24.90
-15.14
Justification:
6211 Overtime Wages
579
800
608
840
INC/DEC
38.16
-24.00
38.15
Justification:
6230 Longevity Pay
1,450
1,450
1,450
1,450
°s
INC/DEC
.00
.00
.00
Justification: USE FORM 5
6310 Fica
6,812
7,107
7,400
7,591
%
INC/DEC
4.33
4.12
2.58
Justification: USE FORM 5
6320 Ipers
4,985
5,229
5,407
5,706
%
INC/DEC
4.89
3.40
5.52
Justification: USE FORM 5
6410 Health Insurance
9,919
11,358
13,097
14,653
INC/DEC
14.50
15.31
11.88
Justification: USE FORM 5
6420 Life Insurance
286
299
312
319
INC/DEC
4.54
4.34
2.24
Justification: USE FORM 5
6430 Disability Insurance
523
618
645
664
%
INC/DEC
18.16
4.36
2.94
Justification: USE FORM 5
6610 Monthly Cellular/pcs
0
150
0
0
%
INC/DEC
-100.00
-100.00
.00
Justification: USE FORM 5
*6000 TOTAL
111,802
117,731
123,594
128,168
7110 Office Supplies
67
133
70
139
%
INC/DEC
98.50
-47.37
98.57
Justification:
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION
FY05 FY05
DESCRIPTION FY02 FY03 FY04 FINANCE DEPT
------------------------- ACTUAL ACTUAL BUDGET PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT OPERATIONS ------ --------------------
7120 Book(s)
188
188
196
196
%
INC/DEC
.00
4.25
.00
Justification:
7140 Minor Off Equip/furn
0
24
0
25
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
7148 Minor Telecom Equip.
218
ill
378
0
%
INC/DEC
-49.09
240.54
-100.00
Justification:
7153 Misc. Peripherals
73
28
76
29
%
INC/DEC
-61.65
171.42
-61.85
Justification:
7214 Ag Chemicals
580
255
606
266
%
INC/DEC
-56.04
137.64
-56.11
Justification:
7241 Gasoline
1,464
2,051'
1,530
2,400
%
INC/DEC
40.09
-25.41
56.86
Justification:
7242 Grease & Oil
60
41
63
43
%
INC/DEC
-31.67
53.65
-31.75
Justification:
7243 Fluids Gases & Other
0
11
0
11
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
7250 Sanitation Supp.
455
418
500
437
%
INC/DEC
-8.14
19.61
-12.60
Justification:
7283 Tools & Minor Equip.
794
160
830
167
%
INC/DEC
-79.85
418.75
-79.88
Justification:
7284 First Aid/safety Sup
96
0
300
0
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
7286 Misc. Supplies
658
52
500
54
%
INC/DEC
-93.94
861.53
-89.20
Justification:
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES,
FY04
BUDGET
AND FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04
FINANCE DEPT
-------------------------
ACTUAL
ACTUAL
BUDGET
PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT
-------------------------------------------------
OPERATIONS
------
--------------------
7288 Paper Supplies
17
52
18
54
%
INC/DEC
205.88
-65.39
200.00
Justification:
7311 Lumber/hardware
471
8
492
8
%
INC/DEC
-98.31
6,050.00
-98.38
Justification:
7312 Paint & Supplies
79
54
83
56
%
INC/DEC
-31.65
53.70
-32.54
Justification:
7313 Plumbing Supplies
7
0
50
0
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
7314 Electrical Supplies
279
62
292
65
%
INC/DEC
-77.78
370.96
-77.74
Justification:
7315 Bdlg. & Improv. Mat.
0
12
10,000
13
%
INC/DEC
-100.00
83,233.33
-99.87
Justification:
7319 Bldg. & Const. Supp.
213
105
223
110
%
INC/DEC
-50.71
112.38
-50.68
Justification:
7321 Minor Equip. Rep Mat
86
82
90
86
%
INC/DEC
-4.66
9.75
-4.45
Justification:
7331 Auto & Light Truck
22
68
23
71
%
INC/DEC
209.09
-66.18
208.69
Justification:
7335 Snow Removal Equip.
0
160
0
167
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
7337 General Equipment
0
0
600
0
%
INC/DEC
.00
-100.00
-100.00
Justification:
7351 Concrete
0
162
0
169
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION
FY05 FY05
DESCRIPTION FY02 FY03 FY04 FINANCE DEPT
------------------------- ACTUAL ACTUAL BUDGET PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT OPERATIONS ------ --------------------
7352 Asphalt
0
73
0
76
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
7354 Sand
39
0
41
0
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
7359 Surfacing Materials
0
95
100
99
%
INC/DEC
-100.00
5.26
-1.00
Justification:
7363 Traffic Ctrl. Improv
1,411
318
1,474
332
%
INC/DEC
-77.47
363.52
-77.48
Justification:
*7000 TOTAL
7,477
4,723
18,535
5,073
8121 Filing Fee
0
281
0
281
°s
INC/DEC
-100.00
-100.00
-100.00
Justification:
8122 Attorney Services
39
0
42
0
INC/DEC
-100.00
-100.00
-100.00
Justification:
8123 Recording Fees
0
112
0
115
INC/DEC
-100.00
-100.00
-100.00
Justification:
8162 Appraisal Services
0
975
0
0
%
INC/DEC
-100.00
-100.00
.00
Justification: USE FORM 4
8163 Consultant Services
3,591
6,104
0
0
%
INC/DEC
69.98
-100.00
.00
Justification: USE FORM 4
8164 Abstracts
0
0
0
0
%
INC/DEC
.00
.00
.00
Justification: USE FORM 4
8166 Engineering Services
1,200
3,008
2,000
0
%
INC/DEC
150.66
-33.52
-100.00
Justification: USE FORM 4
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES, FY04
BUDGET AND
FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04
FINANCE DEPT
-------------------------
ACTUAL
ACTUAL
BUDGET
PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT
-------------------------------------------------
OPERATIONS
------
--------------------
8167 Testing Services
610
914
1,450
0
%
INC/DEC
49.83
58.64
-100.00
Justification: USE FORM 4
8211 Local Phone Service
951
348
0
0
%
INC/DEC
-63.41
-100.00
.00
Justification:
8212 Long Distance Serv.
74
62
78
0
%
INC/DEC
-16.22
25.80
-100.00
Justification:
8215 Cellular/pcs Service
96
55
192
57
%
INC/DEC
-42.71
249.09
-70.32
Justification:
8219 Phone Move/add/chnge
0
309
0
0
%
INC/DEC
-100.00
-100.00
.00
Justification:
8223 Couriers
39
40
42
43
%
INC/DEC
2.56
5.00
2.38
Justification:
8231 Legal Publications
155
359
162
375
%
INC/DEC
131.61
-54.88
131.48
Justification:
8239 Advertising
343
0
2,000
0
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
8311 Travel Advance
0
-4
0
0
%
INC/DEC
-100.00
-100.00
.00
Justification: USE FORM 2
8312 Transportation
329
1,617
600
0
%
INC/DEC
391.48
-62.90
-100.00
Justification: USE FORM 2
8314 Registration
315
490
665
0
%
INC/DEC
55.55
35.71
-100.00
Justification: USE FORM 2
8315 Lodging
545
290
825
0
%
INC/DEC
-46.79
184.48
-100.00
Justification: USE FORM 2
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES, FY04
BUDGET AND
FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04
FINANCE DEPT
_________________________
ACTUAL
ACTUAL
BUDGET
PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT
-------------------------------------------------
OPERATIONS
------
--------------------
8316 Misc. Travel Expense
0
-26
0
0
%
INC/DEC
-100.00
-100.00
.00
Justification: USE FORM 2
8319 Meals
400
137
250
0
%
INC/DEC
-65.75
82.48
-100.00
Justification: USE FORM 2
8340 Meals (non -travel)
40
0
42
0
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
8410 Comp. Liability Ins.
8,500
9,495
9,775
10,919
%
INC/DEC
11.70
2.94
11.70
Justification:
8420 Fire & Casualty Ins.
8,796
11,614
10,115
13,356
%
INC/DEC
32.03
-12.91
32.04
Justification:
8430 Worker's Comp Ins.
221
187
254
215
%
INC/DEC
-15.39
35.82
-15.36
Justification:
8470 Loss Reserve Payment
5,079
0
20,000
0
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
8530 Landfill Use
0
246
0
246
INC/DEC
-100.00
-100.00
-100.00
Justification:
8540 Energy Grant Payback
332
331
0
331
%
INC/DEC
-.31
-100.00
-100.00
Justification:
8550 Heating Fuel/gas
2,578
5,510
2,707
6,061
%
INC/DEC
113.73
-50.88
123.90
Justification:
8560 Electricity Charges
14,019
14,895
14,720
15,640
%
INC/DEC
6.24
-1.18
6.25
Justification:
8570 Sewer Utility Charge
1,014
860
1,014
860
%
INC/DEC
-15.19
17.90
-15.19
Justification:
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES, FY04
BUDGET AND
FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04
FINANCE DEPT
-------------------------
ACTUAL
ACTUAL
BUDGET
PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT
-------------------------------------------------
OPERATIONS
------
--------------------
8580 Water Utility Charge
1,222
993
1,222
993
%
INC/DEC
-18.74
23.06
-18.74
Justification:
8611 Vehicle Repairs
1,751
994
1,830
1,039
%
INC/DEC
-43.24
84.10
-43.23
Justification:
8613 Vehicle Repairs
150
112
157
117
%
INC/DEC
-25.34
40.17
-25.48
Justification:
8621 Repair Of Structure
1,301
1,397
1,366
1,467
%
INC/DEC
7.37
-2.22
7.39
Justification:
8622 Rep Of Heating Equip
1,234
729
1,296
765
%
INC/DEC
-40.93
77.77
-40.98
Justification:
8623 Rep Of Cooling Equip
472
518
496
544
%
INC/DEC
9.74
-4.25
9.67
Justification:
8625 Rep Of Electric/plbg
325
114
341
120
%
INC/DEC
-64.93
199.12
-64.81
Justification:
8626 Bldg. Pest Control
0
0
0
0
%
INC/DEC
.00
.00
.00
Justification:
8629 Rep & Maint. To Bldg
9,275
1,386
9,692
1,448
%
INC/DEC
-85.06
599.27
-85.06
Justification:
8632 Office Equip. Repair
0
0
0
0
%
INC/DEC
.00
.00
.00
Justification:
8637 Radio Equipment Rep.
25
25
26
26
%
INC/DEC
.00
4.00
.00
Justification:
8641 Other Repair & Maint
6,313
5,000
6,597
5,225
%
INC/DEC
-20.80
31.94
-20.80
Justification:
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES,
FY04
BUDGET AND
FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04
FINANCE DEPT
-------------------------
ACTUAL
ACTUAL
BUDGET
PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT
-------------------------------------------------
OPERATIONS
------
---------- ----------
8722 Laundry Service
596
607
623
634
INC/DEC
1.84
2.63
1.76
Justification:
8732 Hauling
20
800
21
836
8
INC/DEC
3,900.00
-97.38
3,880.95
Justification:
8739 Equipment Service
1,264
696
1,321
727
INC/DEC
-44.94
89.79
-44.97
Justification:
6742 Outside Printing
726
368
759
385
%
INC/DEC
-49.32
106.25
-49.28
Justification:
8762 Film Processing
10
11
10
11
%
INC/DEC
10.00
-9.10
10.00
Justification:
8769 Technical Services
2,933
2,553
3,065
2,668
%
INC/DEC
-12.96
20.05
-12.96
Justification:
8770 Word Processing
4
0
50
0
%
INC/DEC
-100.00
-100.00
-100.00
Justification:
8821 City Attorney Chgbck
3,040
3,725
3,162
3,874
%
INC/DEC
22.53
-15.12
22.51
Justification:
8824 Its Pc/periph Supp.
590
2,123
535
995
%
INC/DEC
259.83
-74.80
85.98
Justification:
8825 Its - Cmptr Repl Chg
1,003
941
0
0
%
INC/DEC
-6.19
-100.00
.00
Justification:
8826 Its - Appl Dev Fees
286
0
0
0
%
INC/DEC
-100.00
.00
.00
Justification:
8827 Its-nw/internet Chg
360
360
360
360
%
INC/DEC
.00
.00
.00
Justification:
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03 EXPENDITURES, FY04
BUDGET AND
FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04
FINANCE DEPT
-------------------------
ACTUAL
ACTUAL
BUDGET
PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT
-------------------------------------------------
OPERATIONS
------
--------------------
8841 Supply Room Chgbacks
0
0
0
0
%
INC/DEC
.00
.00
.00
Justification:
8842 Print Shop Services
0
0
0
0
%
INC/DEC
.00
.00
.00
Justification:
8843 Photocopying Chgback
492
309
590
371
%
INC/DEC
-37.20
90.93
-37.12
Justification:
8845 Local Phone Service
0
1,512
1,618
0
%
INC/DEC
-100.00
7.01
-100.00
Justification:
8846 Phone Admin/repl Chg
0
0
480
0
%
INC/DEC
.00
-100.00
-100.00
Justification:
8847 Mail Chargebacks
507
415
553
436
%
INC/DEC
-18.15
33.25
-21.16
Justification:
8848 Ups Chargebacks
11
19
12
20
%
INC/DEC
72.72
-36.85
66.66
Justification:
8930 Dues & Memberships
345
345
1,011
361
%
INC/DEC
.00
193.04
-64.30
Justification:
6942 Building Rental
0
0
0
0
%
INC/DEC
.00
.00
.00
Justification:
8945 Tools & Equip. Rent.
1,368
1,439
1,430
1,504
%
INC/DEC
5.19
-.63
5.17
Justification:
8946 Film Rental
0
0
0
0
%
INC/DEC
.00
.00
.00
Justification:
8950 City Vehicle Repl.
15,698
17,111
16,326
17,795
%
INC/DEC
9.00
-4.59
8.99
Justification:
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03
EXPENDITURES, FY04
BUDGET AND
FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04
FINANCE DEPT
-------------------------
ACTUAL
ACTUAL
BUDGET
PROJECTION REQUEST
ACTIVITY # 46120 AIRPORT PROPERTY MANAGEMENT
-------------------------------------------------
------
--------------------
8942 Building Rental
0
-233
0
0
% INC/DEC
-100.00
-100.00
.00
Justification:
8948 Landlord Rents
2,292
955
0
998
% INC/DEC
-58.34
-100.00
-100.00
Justification:
*8000
TOTAL
2,292
722
0
998
9595 Residual
Equity Tran
0
0
0
0
% INC/DEC
.00
.00
.00
Justification:
USE FORM 3
*9000
TOTAL
0
0
0
0
TOTAL
2,292
722
0
998
PRINTED 19-SEP-03
CITY OF IOWA CITY
FY02 - FY03
EXPENDITURES, FY04
BUDGET AND
FY05 PROJECTION
FY05 FY05
DESCRIPTION
FY02
FY03
FY04 FINANCE DEPT
--------------
-- ACTUAL
ACTUAL
BUDGET PROJECTION REQUEST
ACTIVITY # 46110 AIRPORT OPERATIONS
-------------------------------------------------
--------------------------
*8000 TOTAL
100,587
102,811
121,882 91,220
9313 Tractor(s)
Justification: USE FORM 3
9540 Capital Projects
Justification: USE FORM 3
9720 Interfund Loans
Justification: USE FORM 3
*9000 TOTAL
TOTAL
0
0
0
0
% INC/DEC
.00
.00
.00
1,433
0
0
0
% INC/DEC
-100.00
.00
.00
123,722
84,990
85,440
85,440
% INC/DEC
-31.31
.52
.00
125,155
84,990
85,440
85,440
345,021
310,255
349,451
309,901
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
Memorandum
To: Airport Commission
From: Airport Manager
Date: September 29, 2003
Re: Hangar rent increases
There has been some discontent from tenants that the hangar rents have been
increased. One tenant asked if the Commission was going to raise the rent every few
months. Another said he didn't think the Commission could raise the rent without 30
days notice.
As has been explained to those that have contacted me, t-hangar leases are for a term
of one year. The reason for limiting the time period is so that the Commission can
evaluate the leases annually and make adjustments if necessary. One of those
adjustments is the rent.
T-hangar leases were on the Commission meeting agenda for August and September.
Those agendas are posted in the Terminal Building and at City Hall. In addition, a
separate notice was posted in the Terminal Building that specifically stated that hangar
leases and rent would be discussed at the Commission meetings. A copy of that notice
is attached to this memo. Increasing hangar rents was discussed in no less than 4
newspaper articles. No one came to the Commission meetings to discuss the rent or
other lease issues. Also attached is the memo that was sent with the 2003 — 2004
leases.
In the future, if there were a proposed change to the lease during the term of the lease, I
would recommend attempting to notify each tenant individually. That would be a
different situation than the annual t-hangar lease expiring.
No one likes to pay an increase for property or services. The Airport, like every other
City department, needs to carefully monitor expenses and look for ways to generate
revenue.
CC: Sue Dulek, Assistant City Attorney
NOTICE
Date: 31 July 2003
T-hangar Tenants
At the August 14, 2003 Commission meeting, the Airport Commission will be discussing
the 2003-2004 t-hangar leases. This will include discussion on hangar rent.
If you have changes to the lease that you would like the Commission to discuss, please
contact me before the meeting or attend the meeting on August 14, 2003 at 5:45 p.m. at
the Airport Terminal Building. You may also send me suggestions at; Ron O'Neil, 1801
South Riverside Drive, Iowa City, Iowa, 52246 or e-mail at ron-oneil@iowa-city.org
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
Memorandum
To:
Hangartenants
From:
Ron O'Neil, Airport Manager
Date:
September 22, 2003
Re:
2003 — 2004 leases
Attached are two copies of the annual t-hangar lease. Please fill in the information in
paragraphs 1. and 26. c. (2), then sign and return one copy to me. Your address and
current phone number are important for our emergency contact list.
The term of the lease is from October 1, 2003 to September 30, 2004. There are a
couple of minor changes. One change is to please remind your insurance carrier that if
your policy is renewed during the term of the lease, a current Certificate of Insurance
needs to be sent to me or Erin Harting, the Assistant Finance Director. There were also
some punctuation errors corrected from last year's lease.
After discussing the t-hangar leases at their last two Commission meetings, the
Commission voted to raise the rent 10%. The rents are still comparable to t-hangar
rents at most other airports in the area. As you are most likely aware, the Commission
has spent a lot of time and effort trying to work toward financial self-sufficiency. A rate
increase was necessary to keep up with increasing operational costs.
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
At their September 11, 2003 Airport Commission meeting, the Commission established
the following monthly t-hangar rates:
Hangar number
2002-03 rate
2003-04 rate
# 1 -#10
$110.00
$121.00
#11 - #30
$120.00
$132.00
#36 - #44
$130.00
$143.00
#45
$160.00
$176.00
#46 - #54
$130.00
$143.00
#55
$160.00
$176.00
#56
$250.00
$275.00
#57
$155.00
$170.50
#58
$155.00
$170.50
#59
$135.00
$148.50
#60
$135.00
$148.50
#61
$160.00
$198.00
#62
$135.00
$148.50
#63
$135.00
$148.50
#64
$150.00
$165.00
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
September 18, 2003
Mr. Norm Kane
Air Traffic Manager
Cedar Rapids Municipal Airport
2525 Wright Bros. Blvd. SW
Cedar Rapids, Iowa 52404
Dear Norm:
I apologize for the delay in sending this letter, but I wanted to thank you and your staff for
the temporary tower you supplied for our open house and fly -in breakfast on August 24. 1
received many positive comments from the pilots on the professionalism of the three
controllers and how it enhanced safety, especially at some rather busy times.
Having a tower really added to the safety of the event and we would hope to be able to get
a tower again next year.
Again, thank you for your assistance and to your staff for a job well done
Sincerely,
bl I
Ronald J. O'Neil
Airport Manager
Cc: Airport Commission
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
September 2, 2003
The Honorable Mayor
Mr. Ernest Lehman
410 East Washington
Iowa City, Iowa 52240
Re: United hangar
Dear Emie:
As a follow-up to the letter of September 2, 2003, concerning the disposition of the
United hangar, 1 am attaching a copy of the cost estimates the Commission reviewed in
their discussions.
As you can see, the cost to move the hangar is estimated to be between $ 20,000 to
$ 35,000. The cost to rehabilitate or restore the building could cost up to almost
$ 500,000. Although the Federal Aviation Administration would pay for some of the site
preparation, a considerable amount of local funds would be needed to restore the
hangar to a condition to be able to use it.
If you have additional questions or would like to discuss this at some time, please
contact me at 356-5045 or e-mail at ron-oneil@iowa-city.org
Sincerely, \ n
(:�,) a
Ron O'Neil
Airport Manager
Cc: City Council
Airport Commission
Steve Atkins, City Manager
Sue Dulek, Assistant City Attorney
Table X: Tasks & Rough Order of Magnitude Costs
Removal of Old United Hangar from Runway Safety Area
Iowa City Municipal Airport, Iowa City, Iowa
Task
Alternatives
Demolish
Hangar
Move and
Hangar
MoveMove and
Restore Hangar
Historic recordation of
at existing site
20,000
20,000
20,000
-building
Building demolition &
debris removal
30,000
n/a
n/a
Clear existing site
0 to 10,000
0 to 10,000
0 to 10,000
Clear & grade new site,
new foundation & pad
n/a
100,000
100,000
Provide utilities to site
n/a
35,000
35,000
Rehabilitate brick joints
n/a
12,000
12,000
Move brick section
n/a
15,000
15,000
Move steel section
n/a
20,000
20,000
Electrical repair/upgrade
n/a
10,000 to 20,000
20,000 to 40,000
HVAC repair/upgrade
n/a
10,000 to 20,000
20,000 to 40,000
repair/upgrade
n/a
10,000 to 20,000
20,000 to 40,000
-Plumbing
Interior repair/upgrade
n/a
20,000 to 40,000
40,000 to 80,000
Window replacement
n/a
n/a
25,000
Door replacement
n/a
n/a
5,000
-Rehabilitate/repair roof
n/a
15,000
30,000 to 40,000
Restore roof on brick
section
n/a
n/a
10,000 to 15,000
Total
$50,000 to
$60,000
$267,000 to
$327,000
$372,000 to
$497,000
Notes to table:
Rehabilitate = repair or replace as necessary so that building can function as intended;
work to be conducted without consideration of historic nature of building
Restore = repair or replace as necessary so that building can function as intended;
work to be conducted in accordance with the Secretary of the Interiors
Standards & Guidelines for work on historic buildings
Recordation = photograph and document historic details & nature of building prior to
alteration of its historic setting, feeling, materials, etc.
Door replacement does not include replacement of steel hangar doors
Presence or absence of hazardous materials, such as asbestos, is unknown
IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
September 2, 2003
The Honorable Mayor
Mr. Ernest Lehman
410 East Washington
Iowa City, Iowa 52240
Re: United hangar
Dear Ernie:
At the last three Commission meetings, the Commission has discussed the disposition of
the building known as the United hangar, at 1701 South Riverside Drive. Boeing Air
Transport Company constructed it around 1929. Boeing Air later became United
Airlines. Because of its age, the building has some historic significance. It has been
determined to be eligible to be a historic structure, but it has not been designated as a
historic building.
Because of its location in relation to the end of Runway 25, it is considered an
obstruction. The building can not remain in the current location. Disposition of the
building would be included with the second phase of the Runway 07125 project. The
Commission hopes to receive funding for phase two next year.
There are at least three options_ All three options include the required historic
documentation of the building. One option is to demolish the building. Another option is
to move the building and rehabilitate it. A third option is to move the building and restore
it.
The FAA will pay 90% of the cost to move the building. This would include moving
costs, new footings and floor and constructing the utilities to the new site. They will not
pay to rehab or restore the building. The Commission has known for some time that the
building is considered an obstruction. Very little money has been spent on it and it
would need considerable work to rehab or restore it.
Because of the economic climate, the consensus of Commission is that the structure will
be demolished. The Historic Preservation Commission was invited to the August
Commission meeting to discuss the building, but the Commission did not receive any
response from them. The Commission does not know of any other group that might
have an interest in preserving the building.
The Airport Commission has started the process of selecting an engineering firm for the
Runway 07/25 project. In defining the final Scope of Services for the project, the
Commission will need to decide the fate of the United hangar.
The main objective of this letter is to notify the Council that the Commission has spent a
considerable amount of time on this issue and, using the available information, has
decided to demolish the building. There was some sentiment to save the building, but
there are no funds to allow that to occur.
Sincerely,
Ron O'Neil
Airport Manager
Cc: City Council
Airport Commission
Steve Atkins, City Manager
Sue Dulek, Assistant City Attorney