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HomeMy WebLinkAbout01-17-2002 Airport Commission Meeting MinutesMINUTES IOWA CITY AIRPORT COMMISSION THURSDAY JANUARY 17, 2002 — 5:45 P.M. IOWA CITY AIRPORT TERMINAL MEMBERS PRESENT: Rick Mascari, Howard Horan, John Ruyle, Alan Ellis STAFF PRESENT: Sue Dulek, Ron O'Neil CALL TO ORDER: Chairperson Mascari called the meeting to order at 5:45 p.m. PUBLIC DISCUSSION — ITEMS NOT ON AGENDA: O'Neil said the deadline for responses for consultants for the Obstruction Removal Project and the Environmental Assessment is February 12, 2002. Those projects will be on the agenda for the next Commission meeting. ITEMS FOR DISCUSSIONlACTION: a. IOW Aero lease - ONeil said the reason the Commission requested this be on the agenda was to discuss the request for receipts for tenant improvements to Building D. Dulek said the lease requires prior approval before beginning any improvements. The Commission would not be required to reimburse IOW for any of the improvements. O'Neil said he has copies of the receipts and a log of the labor for the project. He said the original information given to the Commission was for 120 gallons of paint at about $25.00 per gallon. The receipts show 114 gallons at $ 16.55 per gallon and 2 gallons at $17.75 per gallon. The first accounting listed 251 hours at $17.50 per hour. The labor log indicates 401.16 hours. Ruyle said the Commission should pay a contractor to give them a cost estimate to know what the project should cost. Ellis said this should have been done before IOW started to work. Ruyle said he talked to a paint contractor and was told a good general rule for estimating a job is to take the cost of the paint times three and that should give you the cost of the job, including profit. He said insulating and painting the east door would have been included in that estimate. Mascari asked ONeil if IOW included a profit margin in the job. ONeil said he was told that they calculated their labor at $ 17.50 an hour and those were true costs. Mascari said he thought that was somewhat high. ONeil asked the Commission what they wanted to do? He said he would recommend the Commission pay for the improvements directly and not negotiate labor for rent. He said the Commission would have to forgo some scheduled maintenance in order to pay for the improvements. Mascari said he proposed the Commission pay the materials cost. As far as the labor is concerned, he thought that should be calculated at a lower wage per hour and that IOW should agree to warranty their work for 2 years. Dulek said the number of hours charged to the project was the same as a crew of 10 people working for a week. Ruyle said he would like to establish a fair base cost. Ellis said the Commission did not give IOW a cost limit. Ruyle said he wanted to be fair to the Airport and tax payers. Mascari asked how much value the interior painting added to the building? ONeil said the tenant before IOW was paying $ 751 per month. With the help of a grant from the IDOT, the Commission insulated the building and installed a new roof and siding. The building was leased to IOW Aero for $ 500 per month. ONeil said the $ 500 per month was predicated on the fact that the Commission wanted to help an aviation business get started. Ruyle said that for that amount of rent, the tenant should have been responsible for the leasehold improvements. Ellis wanted to know what the relationship is between IOW and Jet Air? He said the rent charged to IOW for Building D was based on the assumption that IOW was going to provide aviation services in addition to those provided by Jet Air. He said that if they are not occupying Building D, but are just using it for storage for their aircraft and those of Jet Air, the agreement is not valid. O'Neil said that IOW s agreement to operate as a commercial flying club expires in March. This would be on the Commission agenda at their next meeting. Ellis said the relationship between IOW Aero and Jet Air should be made clear. Ellis said Ron Duffe is the local manager for Jet Air and he is the one that should be contacted. Horan made a motion to pay for materials and negotiate the cost ofthe labor. Ruyle seconded the motion. ONeil suggested the subcommittee of Ellis and Mascari should discuss the labor with IOW. Ellis said he did not think the subcommittee should discuss this. He thought the Airport Manager should discuss this with IOW. After some discussion, Horan withdrew his motion and Ruyle withdrew the second. Ellis made a motion to pay materials and a subcommittee would negotiate the labor costs. There was no second to the motion. Ruyle made a motion to pay for all the materials that had receipts and pay $ 5766.60 for labor. Horan seconded the motion. Ruyle asked ONeil how the Commission would pay for the improvements? ONeil said he would review the budget and transfer funds from other maintenance areas and the maintenance would have to be deferred. Ruyle said this should be a final offer. Mascari said ONeil should present the offer to IOW. The motion passed 3 - 1, with Ellis voting no and Anderson absent. Ellis said he thought the subcommittee should present the offer. The consensus of the Commission was to have O'Neil contact IOW and provide them with the Commission's decision. b. Minimum Standards for Commercial Aeronautical Activities O'Neil said there were several items in the Minimum Standards (Standards) that needed to be updated. He said the Standards were approved in their current form in 1998. Circumstances have changed and the Commission should review the Standards. ONeil provided a summary of the sections of the Standards to be reviewed. Dulek also provided comments and suggestions for change. One issue discussed was what services the Commission wanted to consider as mandatory for a FBO to provide. Instead oftwo mandatory services and a list of options, the Commission preferred to provide a list of mandatory services required if fuel is sold and to operate as an FBO. The Commission reviewed comments from ONeil and Dulek and directed ONeil to make changes. ONeil will incorporate the changes suggested by the Commission and this will be on the agenda at the February Commission meeting. CHAIItPERSON'S REPORT: Mascari said he met with the Mayor and discussed the recent press articles concerning the Airport budget. Mascari said the hugest change in the Airport's income was created by the departure of Iowa City Flying Service. The expenditures are the same as were budgeted for. He said the Mayor suggested a joint meeting between the Council and the Commission. Ellis said the informal meetings between Council members and Commission members during the time ICFS was leaving should have been better documented. Mascari asked for support from the Commission at the upcoming Council budget meeting. O'Neil said the Commission should select a spokesperson to present the budget to the Council and answer questions. Mascari said he will present the budget and the Commission members should provide their comments to him. ADJOURNMENT: The meeting was adjourned at 6:58 p.m. Rick Mascari, Chairperson