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HomeMy WebLinkAbout08-18-2016 Airport CommissionIOWA CITY AIRPORT COMMISSION MEETING AGENDA AIRPORT TERMINAL BUILDING 1801 S. RIVERSIDE DRIVE IOWA CITY, IOWA THURSDAY, AUGUST 18, 2016 - 6:00 P.M. 1. Determine Quorum 2. Approval of Minutes from the following meetings: 2 min* July 21, 2016; August 5, 2016 3. Public Discussion - Items not on the agenda 5 min 4. Items for Discussion / Action: a. Farming Operations i. Farm Management Agreement b. Airport Master Plan 15 min c. FAA/IDOT Projects: AECOM / David Hughes 10 min i. FY16 Apron Expansion ii. FY15 Obstruction Mitigation d. FY2017 Iowa DOT Grants 5 min i. Consider a resolution authorizing chair to accept grant offers from the Iowa Department of Transportation Office of Aviation e. Jet Air Hangar— Hangar N Proposal 25 min i. Hangar M 1. Consider a resolution approving a purchase agreement with Jet Air for Hangar M 2. Public Hearing 30 year rental agreement for Hangar M 3. Consider a resolution approving rental agreement for Hangar M ii. Hangar N 1. Public Hearing — 30-year ground lease for Hangar N 2. Consider a resolution approving 30 year ground lease for Hangar N iii. FBO Agreement 1. Public Hearing — FBO Agreement Amendment 2. Consider a resolution approving an amendment to the FBO agreement f. Airport "Operations" 20 min i. Strategic Plan -Implementation 1. Strategic Plan Process ii. Budget iii. Management g. FBO / Flight Training Reports 20 min i. Jet Air h. Commission Members' Reports 2 min i. Staff Report 2 min 5. Set next regular meeting for September 15, 2016 at 6:00 p.m. 6. Adjourn *The times listed in the agenda are the anticipated duration of that particular agenda item. The actual discussion may take more or less time than anticipated Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 2 of 85 July 21, 2016 Page 1 MINUTES DRAFT IOWA CITY AIRPORT COMMISSION JULY 21, 2016 — 6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Julie Bockenstedt, Minnetta Gardinier, Robert Libby, A. Jacob Odgaard, Chris Ogren Staff Present: Michael Tharp, Sue Dulek Others Present: Matt Wolford, Melissa Underwood, Harrel Timmons, Philip Wolford RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): None. DETERMINE QUORUM: The meeting was called to order at 6:08 P.M. by Odgaard. APPROVAL OF MINUTES: Minutes of the June 16, 2016, meeting were reviewed. Tharp noted that Dulek gave him a couple of corrections — on the front page of the minutes she suggested making it clear how often the University plans to do their testing, which will be 12 to 18 times total per year. Then on page 3 of the minutes, second paragraph —where the conversation was centered on there being an inflatable car and pedestrians being used in the testing. Ogren moved to accept the minutes of the June 16, 2016, meeting as amended. Libby seconded the motion. The motion carried 5-0. PUBLIC DISCUSSION: None. ITEMS FOR DISCUSSION/ACTION: *. Motion to move Item 4f up in the agenda — Odgaard noted that there is a desire to move Item 4f — Jet Air — up in the agenda as Matt and Philip Wolford need to leave early. Ogren moved to allow Item 4f to be moved up in the agenda. Odgaard seconded the motion. The motion carried 5-0. f. FBO / Flight Training Reports - i. Jet Air — Matt Wolford with Jet Air shared the monthly maintenance reports with Members. He noted that there has been a lot of grass mowing this season with the rain and heat. There have also been several storms that left debris needing to be picked up around the grounds. He Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 3 of 85 July 21, 2016 Page 2 added that with the storms they have had to replace some door seals as water was coming in. The bushes in front of the terminal have been trimmed, new plants have been planted, and mulch has been laid down. Wolford continued, noting other odds and ends that staff took care of. The self -serve pump is down currently and parts have been ordered to repair this. Gardinier suggested that a large sign be posted when the self -serve pump is not working so pilots know this. Referring to the July report, Wolford noted that there was more of the same — mowing and debris pick up. A fuel filter was replaced, as well. Wolford noted that earlier today they purchased some nice Rubbermaid tables for the Congressional meeting. These will come in handy for other activities as well. Philip Wolford noted that with some of the storms that came through a couple of airplanes that were outside were damaged. He also spoke to the t-hangar that Jet Air would like to build. He stated that the sub- committee has met to review the new plans, with the change being that the Airport would be buying hangar M at a reduced rate, and then do a lease on it with Jet Air. This way there would be no lost funding for the Airport. Tharp stated that they will need to move forward with this and get the paperwork together in order to have the Commission review the plans. Speaking to Jet Air's business, Philip Wolford noted that they did sell an aircraft that is going to be based in Iowa City and that they are working with a company that is interested in relocating their airplane to Iowa City, as well. a. Airport Master Plan — Melissa Underwood spoke next, bringing Members up to date on the Master Plan process. She noted that last Friday they did receive the FAA's comments on the Airport layout plan. They have addressed these comments, according to Underwood, and she shared some of the changes that were recommended. The main change involved taxiway and taxilane connections, and Underwood further clarified these changes. She added that none of these changes need to be handled immediately, that it will probably be something they could do when the parallel taxiway is reconstructed or the runway — some major pavement project. The changes are basically safety measures, according to Underwood. Members reviewed these changes and asked questions of Underwood. Continuing, Underwood spoke to the location of the ASOS. The FAA is questioning the location being close to where planes are parked and possible interference with the ASOS and wind data. Underwood stated that she sent back a response to the FAA saying she disagreed with this, that you can have objects 15-feet below the sensor in the 500-foot radius circle of the ASOS with no interference. In addition, the planes that would be in this area would be smaller planes, not the bigger jets. She noted that Tharp is looking for the ASOS sighting study that was done when it was first put in this location to see if they can obtain some data from this, in order to keep the conversation going with the FAA. Underwood and Tharp then responded to Member questions regarding the Master Plan process and when they can move forward with various projects. b. FAA/IDOT Projects: AECOM / David Hughes - i. FY16 Apron Expansion — Tharp stated that Hughes is not available this evening. As for the apron expansion work, Tharp noted that the apron is Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 4 of 85 July 21, 2016 Page 3 open and usable. He noted that they are wrapping up some punchlist items at this point and there will be some final seeding yet to come. ii. FY15 Obstruction Mitigation — As mentioned in the previous conversation, the obstruction mitigation is on hold until the Master Plan is finalized. C. FY2017 Iowa DOT Grant Application — Tharp stated that he put this in the meeting packet so that the Members could see what it looks like filled out and what levels were applied for. Both projects are on the funded list, according to Tharp, in terms of being recommended to the Transportation Commission — the taxiway extension and the north t-hangar bathrooms. Both are funded at 70%. Tharp then responded to Member questions and concerns, further explaining how these projects will be handled. d. 2016-2017 T-Hanger Rates — Tharp noted that Gardinier will need to recuse herself from this item as she has a hangar at the Airport. He explained how each year the Commission reviews the hangar rates before he sends out the yearly contracts. He noted that he looks at other airports to see what they are charging in order to compare rates. Tharp stated that the last time they raised rates was during the 2014-2015 cycle. At that time the south t-hangars had a 4% increase, with the north t-hangar rates remaining the same since 2011. Tharp stated that he still believes the north hangars are at a market cap. His recommendation is to leave all of the t-hangar rates the same at this point. Members responded to this, asking questions of Tharp regarding how often rates have increased. Odgaard moved to maintain t-hangar rates at the current levels. Libby seconded the motion. The motion carried 4-0, Gardinier recusing herself. Tharp stated that there is also a copy of the t-hangar lease in the packet. He noted that last year he was given authority by the Commission to enter into the t-hangar leases. e. Airport Operations - i. Strategic Plan — Implementation — Tharp stated that in the on -going effort to get people out to the Airport, they hosted the FAA Congressional outreach meeting recently. He noted that there were approximately 28 people in attendance, with 12 being from the FAA. He briefly shared what the meeting entailed, noting that the FAA spoke about the AIP program and also the medical reform that was part of the FAA extension. Gardinier asked if there will be minutes or some type of report available from this meeting, and Tharp stated that he will ask about this. Gardinier suggested they put out a press release regarding this visit and share with others what took place here. Regarding the strategic plan, Tharp noted that he had a conversation recently with Regenia Bailey, who runs a leadership group and does strategic planning activities. He would like to invite her to speak to the Commission regarding their strategic planning process. ii. Budget- 1. FY2017 Budget Review— Tharp stated that he put this in the packet so Members could review the FY17 budget and pose any questions they may have. Bockenstedt asked for some clarification on the total revenues and expenditures section. Tharp responded, explaining what some of the expenditures were Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 5 of 85 July 21, 2016 Page 4 for. Members continued to discuss the FY17 budget, questioning various line items. A discussion continued about the fuel tank and when they may need to discuss replacing it. Gardinier asked if they have given any thought to replacing the self -serve as the repairs are costing quite a bit. Tharp stated that he has begun to research the cost of upgrades and what would be needed to do this. iii. Management — None. g. Commission Members' Reports — Libby spoke to the issue of the Airport having a disaster drill. He noted that he has talked with Dave Wilson, the Emergency Manager, regarding this. The goal is to have this drill in May, with planning done on a regional basis, and he briefly explained what they would like to see take place in this drill. Members briefly discussed who all should take part in this drill. Gardinier spoke about her recent participation in the Air Race Classic, noting that they finished 22nd in the race. She stated that after the race she flew to Ottawa, which was her first time flying into Canada. Ogren stated that she was at the Airport on Saturday for the Young Eagles' event, as was Gardinier. She noted that it was quite busy at first and turned out to be a successful event. Odgaard noted that there is interest in making the Young Eagles' events into half -day camps for the youngsters. He also shared that he helped to fly an airplane to Phoenix, one that was previously housed at the Airport. h. Staff report — Tharp stated that he too was at the Young Eagles' event. There were approximately 31 participants. He also noted that at the end of the month and early August he will be out of the office here and there. He reminded Members of the Sertoma pancake breakfast on August 281n SET NEXT REGULAR MEETING FOR: The next regular meeting of the Airport Commission will be held on Thursday, August 18, 2016, at 6:00 P.M. in the Airport Terminal Building. Ogren noted that she will be out of town on this date. ADJOURN: Ogren moved to adjourn the meeting at 7:40 P.M. Gardinier seconded the motion. The motion carried 5-0. CHAIRPERSON Airport Commission DATE Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 6 of 85 July 21, 2016 Page 5 ATTENDANCE RECORD 2015-2016 TERM o 0 0 0 0 0 0 0 0 0 Co O N N N W A L" T V co NAME EXP. -i cn co co 3 N 3 n n n n 0)m a) a) a)m a) m 0) 0) 0) Minnetta 03/01/19 X X X X X X O/ X Gardinier X X X X E Jose 03/01/16 X O/E X N N N N N N NM Assouline X X X X M M M M M M Chris Ogren 03/01/18 O/ X X X X X O/ X X X X E X E A.Jacob 03/01/18 X X X X X O/ X X Odgaard X X X X E Julie 03/01/17 N N O/ X X X X O/ X X X Bockenstedt M M X E E Robert Libby 03/21/20 N N N N N NM NM N X X X X M M M M M M Key: X = Present X/E = Present for Part of Meeting O = Absent O/E = Absent/Excused NM = Not a Member at this time Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 7 of 85 August 5, 2016 Page 1 MINUTES IOWA CITY AIRPORT COMMISSION AUGUST 5, 2016 — 5:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Minnetta Gardinier, A. Jacob Odgaard, Chris Ogren Members Absent: Julie Bockenstedt, Robert Libby, Staff Present: Michael Tharp, Eric Goers Others Present: DETERMINE QUORUM: The meeting was called to order at 5:04 P.M. by Odgaard. ITEMS FOR DISCUSSION/ACTION: DRAFT a. Consider a resolution setting a public hearing on a 30 year ground lease with Jet Air Inc. Gardinier moved the motion, seconded by Ogren. Motion approved 3-0 (Bockenstedt and Libby absent) b Consider a resolution setting a public hearing on a 30 hangar lease with Jet Air, Inc for Hangar M — Ogren moved the resolution, seconded by Gardinier. Motion approved 3-0 (Bockenstedt and Libby absent) Consider a resolution setting a public hearing to extend the FBO Agreement for four additional five year options Ogren moved the resolution, seconded by Odgaard. Motion approved 3- 0(Bockenstedt and Libby absent) Gardinier nominated Ogren to be Acting Secretary for the meeting, seconded by Odgaard. Motion approved 3-0 ADJOURN: Ogren moved to adjourn the meeting at 5:08 P.M. Gardinier seconded the motion. The motion carried 3-0. (Bockenstedt and Libby absent) CHAIRPERSON DATE Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 8 of85 August 5, 2016 Page 2 Airport Commission ATTENDANCE RECORD 2015-2016 TERM 0 0 0 0 0 0 0 0 0 0 Co 0 N N N W A (\1 0) v 00 NAME EXP. v cn to to N m - co Ch o n n n n 0) m 0) 0) 0) 0)a, N 0) rn Minnetta 03/01/19 X X X X X X O/ X X Gardinier X X X X E Jose 03/01/16 X O/E X N N N N N N Assouline X X X X M M M M M M Chris Ogren 03/01/18 O/ X X X X X O/ X X X X X E X E A.Jacob 03/01/18 X X X X X O/ X X X Odgaard X X X X E Julie 03/01/17 N N O/ X X X X O/ X X X O/ Bockenstedt M M X E E E Robert Libby 03/21/20 N N N N N NM NM N X X X X O/ M M M M M M E Key: X = Present X/E = Present for Part of Meeting O = Absent O/E = Absent/Excused NM = Not a Member at this time Airport Commission Agenda & Info Packet r Meeting Date: August 18, 2016 Page 9 of 85 CITY OF IOWA CITY ' cq:—q WIT, MEMORANDUM Date: August 15, 2016 To: Airport Commission From: Michael Tharp Re: Farmers National Agreement During the period of August 1-September 30, the Airport Commission's agreement with Farmer's National Company for the management of the Airport's farmland can be terminated. Exercising this option would terminate the agreement effective March 1 of the following calendar year. Staff does not recommend termination. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 10 of 85 December 11, 2013 Ti 317 1TU `"T MFIV M Farm #73948 - Airport John Yeomans, Accredited Farm Manager This .Agricultural Property Addendum shall be attached to and become a part of the Professional Management Services Agreement dated January 26, 2006 between Farmers National Company ("FNC"), and The City of Iowa City, Iowa: Iowa City Airport Commission ("Client"). This addendum shall add acres to management and correct the acres and legal description on the current management agreement. State: Iowa County:.. Johnson Approximate Acres: 12.09t _ Farther described as: Outlot A, Westport Plaza-Part2, in the Southwest comer of the SW %< Section 16 — Township 79 North — Range 6 West of the 5"P.M. Recorded in Plat Book 38, Page 357, Records of Johnson County, State of Iowa Legal ➢Descriolon of the Total Farm Property State: Iowa County: Johnson Approximate Acres: 139.0914: Further described as: Farmland belonging to the Iowa City Airport Commission, City of Iowa City, Iowa, located in Sections 16, 20, 21, and 22. Township 79 North — Range 6 West of the 5i' P.M. ADDITIONAL INFORMATION: Effective Date: December 12, 2013 All other terns and services outlined in the Professional Management Services Agreement dated January 26, 2006 remain valid. 111JItYVVV7V - VlL 1 , remains in the Farmers National Company Interest Bearing Account Clie gts ' Sigr ,id Date Here Signature: .' ' ' Date: -xieif�r of owa City, Iowa City Airport Commission Acceptance By Farmers National Company Sig®at /sw Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 11 of 85 INC Farm #73948 Farnmrs ® Farm Name: Airport Bruce Ahrens, Accredited Farm Manager General This Professional Management Services Agreement ("The Agreement") is entered into between Farmers National Company, ("Fanners National"), and the Iowa City Airport Commission, ("Clients.") Fanners National is a Nebraska Corporation whose corporate offices are located at 11516 Nicholas Street, Suite 100, Omaha, Nebraska, 68154. The Clients are more fully identified on the Client Information sheet, attached. The property subject to this Agreement ("The Property") is described under the Legal Description, attached. The parties acknowledge and agree that the terns of this agreement may only be changed by the mutual agreement of the parties, in writing. The parties also agree that whenever any of the information contained in this Agreement, or any of its attachments, changes, they will promptly notify the other party in writing. The notification of changes made to Farmers National shall be made to the Customer Service Department at the address set forth above. The Agreement or the appropriate attachment(s) hereto, shall be modified to reflect any such changes. This agreement replaces contract that was signed in 1982 between Doane Western and the Iowa City Airport Commission. Exhibit "A" Anti -discrimination provision is attached and incorporated herein. Professional Mannement Services Farmers National is duly licensed and qualified to provide Professional Property Management Services for the Clients. The Clients desire Farmers National to provide such services under the terms and conditions set forth herein. Such services shall include, but shall not necessarily be limited to those set out in the Professional Management Services section, attached. The parties acknowledge that this Agreement does not attempt to include all of the details relative to the Professional Management Services provided to the Clients, but it is intended to provide a general understanding of the duties and responsibilities of the parties. Term of Agreement This Agreement shall take effect on the date set forth below, and shall remain in full force and effect thereafter until terminated in writing by either party, by giving the other party advance written notice of termination between August I' and September 30`" of any calendar year. Such notice shall cause the Agreement to be terminated effective March I' of the following calendar year, unless otherwise mutually agreed between the parties. If this Agreement is terminated by the Clients, they agree that, for a period of one year following the effective date of termination, they will not directly or indirectly enter into a management agreement or similar relationship with any employee or former employee of Farmers National. This limitation shall apply only to employees or former employees of Farmers National who have personally participated in providing management services to the Clients during the term of this Agreement. 1 „Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 - Page 12 of 85 Agency Relationship It is mutually understood and agreed that the; relationship between the Clients and Fanners National shall be that of Principal and Agent. The Clients acknowledge having been provided with the Agency Relationship Disclosure that accompanies this Agreement.` The relationship of Principal and Agent shall be limited to the particular Management Services contracte0er hereunder. As so limited, the duties, responsibilities, and authorities of the parties hereto shall.be governed bythe Laws of Principal and AgentJn effect in the state where the.Property is located. Management Fees Management Fees will be based upon the type of management service selected.by the Clients: There is a flat fee arrangement for Tailored Management Professional Agricultural Services and a percentage fee arrangement for Complete Professional Agricultural Management Services. The Clients shall designate the .preferred. arrangement on the ManagemeniTee schedule attached hereto; and incorporated herein. Percentaee Fees � The Clients agree to terms and conditions set'forth in-Attachmeni 1; if 'complete Professional Agricultural Management Services is selected. Clients.agree,to pay FannersNational abase fee. Base :fees, are structured upon the anticipated ongoing volume of management activities to.be performed. Ile base fee to, be paid by. the Clients is set out under the Complete Professional,Agricultural Management' Services attached. The Clients agree to pay Fanners National percentage fees based on the gross farm'mcome and are charged in addition to the base fees. Percentage fees are charged and collected as income is received. All income is to be paid directly to Fanners. National so that itcan be properly accounted for. Percentage fees are based upon the lease type or operating arrangement utilized on the Property during the;ffarni year, and is set, out under the Complete Management Services attached If this Agreement :is terminated, the Clients agree to make a final percentage fee payment to Farmers National, based upon the estimated inventories of crops, and/or livestock as of the effective date of termination. The final percentage fee shall be due :and payable on or before. the effective date: of termination. In the event the Property is sold and the, transaction inclosed duringthei term of this Agreement,; management fees shall be prorated to the date of closing. Fiat Fee' The Clients agree to, the terns and conditions set forth, in Attachment 2 if a Tailored Professional Agricultural Management Service is'selected- The Clients agree to pay Farmers National an agreed upon flat fee to perform the specific agricultural services set forth on the Tailored Agricultural Management Services: sheet attached,hereto and 'incorporated herein. The Clients acknowledge that this fee is based. upon an estimate of the time to be, required' in providing the services selected by the Client, and the hourly,rates determined by Farmers National. A_flat fee shall be determined for each farm Year(March 1. to February 28);that this Agreement is in effect. While the fee may remain the same for subsequent farm yearsi the Clients, understand and acknowledge that Farmers National may determine.that a.fee adjustment may be necessary for future farm'years. If Farmers National determines that an adjustment' is necessary, they shall notify the Clients in writing, between August V and September 30'”. If the parties are unable to,agree upon the fees',to be charged during the upcoming farm year, this agreement shall be terminated effective March I' of the following -year. Flat fees shall be billed to the Clients, at times mutually agreed upon between parties, and set forth,orrthe Tailored Management Services schedule. i The Clients may add additional Tailored Management Services during the term of this Agreement. If they do so, the parties will: agree upon an additional flatfee to cover the' additional services to be provided by Farmers National. Airport Commission Agenda & Info packet _ Meeting Date: August 18, 2016, -' - Page 13 of 85 Accounting Farmers National will perform all of the accounting. associated with the management of the Property, in conformity with its usual, and customary accounting practices, and in accordance with any specific guidance provided by the Clients on the Special Accounting Instructions -,sheet; attached. Specialized or customized accounting activities:may be subject to -an extra charge. It is mutuallyunderstood and agreed that whenever, Faemers,National Company pays for items or services that are needed for the management or operation of the Property, khe I Clients will promptly, reimburse Fanners National. With respect to majorimprovements,. however, Farmers National shall confer with and -obtain. the prior approval of the Clients before commencement of the project. The Clients may providefor their funds to be in an interest bearing trust account. If so desired, "the Clients shall execute the; Interest Bearing Account Authorization Addendum form; attached. If the Clients have directed; Farmers National Company- to -utilize an interest bearing account in the management of the Property, Farmers National may secure reimbursement for the costs ,of such items or services from funds available in said account: If no such account is utilized; or if the funds in the account are insufficient to h cover the payments made; Farmers National will advise the Clients of the amount due on,the accounting statement sent to the Clients at the end of the month- The ;Clients will reimburse Farmers National for the full amount due upon receipt of the statement: An the event thatreimbursement is not received when due, -the Clients agree to pay a service charge to Fanners National. Insurance: Farmers National Company realizes the, importance of protecting -the assets of our clients farm property and one such protection is the.'procurement of a liability policy in'the- :client's name. -Therefore, the Client is required to obtain (if not already in effect) a liability' policy with a minimum $500,000 limit within thirty days of the execution of this Agreement. Declaration of Authority'& Rower of Attorney The Clients, by executing this, Agreement, grant the authorized employees of Farmers National access to any relevant governmental records pertaiintgto the Property and germane to its professional management. In addition, the authorized employees of Farmers National are authorized to act in the name, place, and stead of the Clients with respect to the professional management of the Property: The authorized employees of Farmers National are vested with full power and authority to do; and perform alLactions.necessary-or appropriate to the professional management of the Property. This shall include the execution,_ delivery and/or recording of any leases, documents, forms, or other papers; as fully to all intents and purposes as the Clients: might or could do, with full power of substitution and revocation. -The:Clients ratify and confirm' all that the duly authorized employees of Farmers National lawfdlly do or cause to be done on behalf of the clients:. The Clients agree to give Farmers National any additional, Powers of Attorney needed 'to professionally manage the Property -in the manner described herein. This may include, but is not limited to, Powers of Attorney required by government agencies for participation in government programs. Successors in Tirust This Agreement shall be binding; upon the heirs, successors„assigns, or personal representatives of the parties hereto. -3- Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 14 of 85 Effective Dates This Professional Management Services Agreement is entered into and between the parties on Jan uae26, 2006 Professional Management services shall commence on: 1st day of March 20_06- 617mijillITUO, Iowa County:. ApproximateAcres:. Legal Description® Cropland acres at the Iowa City Municipal Airport located in Sections 15, 16, 21, & 22. All Township 75 North — Range 6 West of the 5th P. M. Attachments' This Professional Management Agreement provides the following services and fee arrangements for the above property: [ V ] Complete Professional Agricultural Management Services and Fees (Attachment 1) [ ] Professional Hunting/Fishing Management and Fees (Attachment 3) I 1 Professional Mineral Management and Fees (Attachment 4) Addendums• [ J ] Interest Bearing Account Authorization (Addendum 1) [ ] Special Accounting Instructions (Addendum 2) [ J ] Principal Correspondent Designation (Addendum 3) [ ] Other: Clients City of Iowa City Signature: IQ r tl Accentarncce By Farmers National Company Signature:`^°`�`'D +� 13 - Airport Commission Agenda & Info Packet - - .. ' • Meeting Date: August 18, 2016 Page 15 of 85 CLIENT INFORMATION Type of Ownership: [ ] Single [ ] Multiple [ ] Corporate [ .] Partnership [ ] Trust [ V ] Other: Municipality (For all Partnership, Corporate. & Trust:®woerehip: Please list each individual owner dame & perceat ownership for insurance purposes) City of Iowa City 42-6004805 Name City Airport Commission Tax ID Number 'Municipal Airport Iowa City Iowa _Iowa Address } City State (_319 } 356-5045 Home Phone Number Office Phone Number Fa Email address AB# Name Social Security or Tax,,ID.Number %.of Ownership (This number will be used for RtS reporting); - Address City State Zip Code Spouse's Name Spouse'sSocial` Security'or Tax ID Number Spouse Date of Birth Home Phone Number Work Phone Number FaxNumber Email address Date of Birth Name 'Social Security or Tax ID Number % of Ownership �. (This number will be: used for Ms reporting) Address City State. Zip Code Spouse's Name Spouse's SocialSecurity or Tax]D Number Spouse Date ofBirth Home Phone Number VVork.Phone:Number Fax Number I Email address Date of Birth -5- Airport.Commission Agenda &Info Packet _ Meeting Date: August 18, 2016 - - Page 16 of 85 . Agency elate®s ap esel®sine It is mutually acknowledged between Farmers National and the Clients that Farmers National will act exclusively as the agent of the Clients hereunder, and not as a Tenant's agent or dual agent. As such, Farmers National's duties and obligations shall be as follows: 1. To perform the terms of the Professional Agricultural Services Agreement made with.the Clients; 2. To exercise reasonable skill and care for the Clients; 3. To promote the interests of the Clients with the utmost good faith, loyalty, and fidelity, including: a. Seeking rental terms which are acceptable to the Clients, except.that FNC shall not be obligated to, seek additional offers to lease the property while the property is subject to a lease or letter of intent to lease; b. Presenting all written offers to and from the Clients in a timely manner -regardless of whether the property is subject to a lease or a letter of intent,to-lease; c. Disclosing in writing to the Clients all adverse material facts actually known by FNC; and d. Advising the Clients to obtain expert advice as to material matters about which the FNC knows, but the specifics of which are beyond the expertise of FNC; 4. To account in a timely manner for all money and property received; 5. To comply with all requirements of any 'applicable Real Estate License Act, and any rules and regulations promulgated pursuant to such act; and . . 6. To comply with any applicable federal,state,,and local laws, rules, regulations, and ordinances, including,fair housing and.civil rights statutes and regulations. Farmers National acting as the Clients' agent shall not disclose.any confidential Wormation about the Clients unless disclosure is required by statute, rule; or'regulation or failure to disclose the information would constitute fraudulent misrepresentation. No cause of action for any person shall arise against Farmers National acting as Clients agent for making any required or permitted disclosure. Farmers National acting as Clients'. agent owes no duty or obligation to a tenant; except that Farmers National shall disclose in writing to any tenant all adverse material facts actually known by -Farmers National. The adverse material facts may include adverse material facts pertaining to: 1. Any environmental hazards affecting the property which are required by law to be disclosed; 2. The physical condition of the property; ' 3. Any material defects in the property; 4. Any material defects in the title to the property; or 5. Any material limitation on the Clients' ability to perform under the terms of the lease. Farmers National owes no duty to conduct an independent inspection of the property for the benefit of the tenant and owes no duty to independently verify the accuracy or completeness of any statement made by the Clients or any independent inspector. Farmers National may show alternative properties not owned.bythe Clients to prospective tenants and may identify competing properties for lease without breaching any duty or obligation.to the Clients. Farmers National may not designate. or retain the services of any other brokers. as ;subagents, without the express written consent of the Clients. Any such subagents so retained shall be compensated, if at,all, by Farmers,National, and not by the Clients. Any designated broker who is acting as a subagent on the Clients' behalf shall be a limited agent with the obligations and responsibilities set forth above. The Clients acknowledge having been provided -with any Agency Disclosure information prepared by the State Real Estate Commission baving jurisdiction in the state where the property is located, if providing such information to Clients is required. Additional information specific to state regulation maybe attached: . ❑ Nebraska Real Estate Disclosure ❑ South Dakota Real Estate'Disclosure IM Missouri Real Estate Disclosure ❑ Ohio Real Estate Disclosure ❑ Other: Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 17 of 85 -Attachment 1- The Professional Agricultural Management Services that Farmers National will perform are as follows: ® Complete detailed analysis of farming operation and provide recommendations. ® Analyze applicable Government Farm Program considerations and provide recommendations. ® Develop an annual operating plan and budget including capital improvements, if applicable. ® Make recommendations regarding farm or ranch operators as needed. ® Analyze alternative lease types or operating arrangements. ® Negotiate and prepare an annual written lease or operating agreement. ® Prepare and implement necessary crop and/or livestock marketing plans. ® Conduct regular inspection visits to the farm and/or meetings with the operator followed by written reports. ® Provide financial reporting services including periodic and annual reports to the Clients. Payment of Real Estate Taxes ❑ Farmers National to pay Real Estate Taxes from Client Account before they become due at no additional charge Client to pay. Crop Marketing Directions Unless otherwise directed by the Clients on a case -by -case basis, the Clients direct Farmers National to handle the marketing of crops as follows: ❑ Market according to Farmers National's recommendations ❑ Sell crops at harvest. ❑ Consult with the Clients prior to sale 21 Do not handle marketing The parties have mutual agreed to thefiflowing additional arrangements relative to the services to beprovided: Agricultural Services Management Fees The Clients and Farmers National have agreed to the following Agricultural Services Management Fees: 1. Base Management Fee: $600 per year 2. Percentage Management Fees: a. Cash Rent Lease — 8% e. Custom Operating Agreement -- 8% b. Bushel Rent Lease -- 9% f. Rental House — 201/o c. Blended Share Lease -- 9% g. Sale of Previous Crop Inventory --5% d. Crop Share Lease -- 10% 3. A minimum yearly fee of $1,000.00 shall be charged as part of the foregoing fees for each faun listed. Base fees will be collected annually in February of each farm year this Agreement is in effect. In cases where a Property is operated with multiple lease types and/or operating arrangements, Percentage Management Fees shall be calculated based upon the dominant lease type in use on the farm during the farm year. The dominant lease type shall be determined based upon where the majority of the farm income is derived. All percentage fees will be taken as income is received. Clients City of Iowa City Signature: Ir ` Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 18 of 85 0 Eylt. t. 1. :I r AccountInterest Bearing I: 1 1 ': rveived to onen the account. The Clients, by executing this authorization in the space provided below, direct Farmers National to deposit funds drawn from income and moneys collected on thew account into an interest bearing account. To the extent required or allowed by law, the characteristics of the account shall be as follows: 1. None of the interest earned on the funds in the account shall belong to, or otherwise inure to the benefit of Farmers National. 2. The funds in the account shall not be commingled with any funds of Farmers National. 3. The account shall be a demand type account. 4. The account shall be federally insured. 5. The account shall be open to audit or examination at all reasonable times. 6. Where required by applicable local law, Farmers National shall notify any appropriate regulatory agencies of the existence of the account. 7. The account shall be designated and identified as a trust account. The clients understand and agree that administrative fees may be charged by the financial institution handling the account. The amount of any such fees shall be disclosed in advance to the client. The client hereby requests and authorizes Farmers National to pay all expenses incurred in the professional management of the Property out of Farmers National's non -interest bearing trust account. The parties acknowledge that the foregoing provisions shall replace any previously executed Interest Bearing Account Authorization. Clients City of Iowa City Signature: i(� " (� Signature: This addendum pertains to the Agricultural Services Agreement entered into between the parties on January 26 2006 Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 19 of 85 � 1 1 1 1111I 1•: �1 14 The Clients will identify certain matters that they desire to be specifically informed about, and will indicate to Farmers National circumstances wherein they desire to be consulted prior to the making of final management decisions. To accommodate these situations, the Clients wish to designate the following individual as the Principal Correspondent. The parties acknowledge that the Principal Correspondent will then advise and consult with the other Clients, and will communicate their decisions and recommendations to Farmers National. Principal a ;s pan , , ... A.. of Iowat 40069 All Clients are to be sent routine periodic accounting statements, narrative reports, and other similar information, except those identified below Client: Client: Client: In addition to the Clients, please send routine periodic accounting statements, narrative reports, and other similar information to the following Additional Correspondents (Limit 3): Additional Correspondent: Address: Phone: Email Address: Additional Correspondent: Address: Phone: Email Address: Additional Correspondent: Address: Phone: Email Address: This addendum pertains to the Agricultural Services Agreement entered into between the parties on January 26. 2006 Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 20 of 85 Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-3505045 RESOLUTION NO. RESOLUTION AUTHORIZING CHAIRPERSON TO ACCEPT IOWA DEPARTMENT OF TRANSPORTATION GRANT. WHEREAS, the Iowa City Airport Commission has previously applied for grants from the Iowa Department of Transportation Office of Aviation for work associated with a taxilane extension project and a restroom addition in the North T-hangar area. WHEREAS, the Iowa Transportation Commission has met and approved the FY2017 State Aviation Program WHEREAS, the Iowa City Municipal Airport was recommended to receive grant funds as part of the FY2017 State Aviation Program; and WHEREAS, it is in the best interest of the Iowa City Airport Commission to accept these grants. NOW, THEREFORE, BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY: 1. The Chairperson is authorized sign and the Secretary to attest to acceptance of the grants. Passed and approved this CHAIRPERSON ATTEST: SECRETARY day of 2016. AA roved Bey: City Attorney's Office It was moved by and seconded by Resolution be adopted, and upon roll call there were: Ayes Nays Absent Bockenstedt Gardiner Libby Odgaard Ogren the Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 21 of 85 Jet Air, Inc. Iowa City Airport Expansion Proposal Summary: Since 2002, Jet Air, Inc. has been committed to serving the aviation customers at the Iowa City Airport. Jet Air completed construction of the first "Privately Owned" land -lease hangar at the Iowa City Airport in November 2012. The 6,400 heated hangar was designed to accommodate corporate users and further improve the services provided to both local and transient customers. Now in 2016, space is tight once again and options need to be evaluated to determine if the construction of another hangar is feasible. Results from Hangar M's construction (See Exhibit A): • Increased Based Aircraft: 1 jet, 1 turbo -prop, 3 single -engine aircraft. All of which required heated hangar space. • Increased Fuel Sales from Based Aircraft: The above -listed new aircraft consumed 35,591 gal. in 2015. • Increased Transient Aircraft Accommodation: More availability for visiting traffic. • Aircraft De-icing Improvements: Over -head heat provided to quickly get frost/ice off of aircraft. • Promoted Active Aircraft: Heated "corporate -style" space promotes higher utilization. • Gained "Temporary" Space: Newcomers to the airport used space through Jet Air while on T-Hangar waiting list. • Gain in Airport Value: The Airport gained a hangar that would have cost approx. $627,904 to build. • Fostered Jet Air's business expansion in Iowa City: More charter aircraft, staff and increased customer base. • Fuel Consumption by Jet Air's managed / charter aircraft increased: 39,714 gal. in 2011 to 103,984 gal. in 2015! • Increased Community Event Involvement: Fly Iowa, Iowa City Area Development Meeting, 2 Wedding Receptions. • Increased based -aircraft flexibility: Newer single -engines have a wider wingspan that will not fit in T-hangars. Further benefits of the new proposed hangar (See Exhibit B): In the four years since Hangar M was constructed, the space has now filled up (over -capacity) and an additional hangar is needed to continue to foster growth at the airport. Jet Air has gathered pricing estimates to construct a much larger hangar (100'x100') that would offer all of the benefits of those above as well as several additional features: • Large -Aircraft Capability: 26ft Tall by 80ft Wide Door to accommodate aircraft that currently can only use the Iowa City Airport in "good -weather" situations because they will not fit in any hangars (The tallest door at the airport right now is 20ft 6in.). Examples: Citation Sovereign, Citation X, Falcon 50, Falcon 900, Challenger 300, etc. • Floor Drains / Water for washing aircraft: The maintenance shop is currently split between line service duties and shop mechanic duties. By having aircraft washing capabilities in the new hangar, it allows further growth in maintenance expansion at the airport. • MORE Fuel Sales: Based on the amount of fuel sold from Hangar M tenants per square foot in 2015, it would be reasonable to project an additional fuel flowage of approximately 55,600 gal. annually at maximum capacity. This equates to $5,560/year in annual flowage fees at the current flowage rates. 0 Flexibility: 100'x100' is 36% larger than Hangar M, offering much more in terms of flexibility. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 22 of 85 Exhibit A — Hangar M Year of Construction: 2012 Replacement Value: Total Size: Door Size: Annual Gallons by full-time tenants: $627,904 (Based on Hangar L construction costs of $98.11/sq. ft.) 80'x80' (6,400sq. ft.) 18' tall x 65' wide 35,917 gal. ($3,591.70 in annual fuel flowage to airport - 2015) Exhibit B — Proposed New 100'x100' Hangar Year of Construction: 2016 / 2017 Replacement Value: $981,100 (Based on Hangar L construction costs of $98.11/sq. ft.) Total Size: 100'x100' (10,000sq. ft.) Door Size: 26' tall x 80' wide Projected Annual Gallons by full-time tenants: 55,600 gal. ($5,560.00 in new fuel flowage to airport) I Based on the square footage cost for the construction of Hangar L in 2012, a 100x100 hangar would cost the airport approximately $981,100 to construct. Jet Air would propose the following options to minimize the airport's capital outlay: Option 1: The Iowa City Airport Purchases Hangar M and then leases it back to Jet Air. Jet Air would then use the proceeds of the sale towards constructing a new hangar. Option 2: The Iowa City Airport would issue a grant to Jet Air for the construction of the new hangar. Further details on these options are listed in the following pages. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Hangar Proposal Summary: Page 23 of 85 Jet Air constructed Hangar M in 2012 as a private -build hangar on public property through the use of a land lease. The land lease is set to expire in May of 2042 (26+years) from now. Jet Air would be willing to sell the hangar at a very good value (significantly lower than it would cost the airport to build) and in -turn sign a lease for the hangar from the airport that would offer a direct return on the airport's investment. The proceeds of the sale would be used towards the construction of a new 100'x100' hangar at the Iowa City airport. This hangar would become the property of the Iowa City Airport after the 30 year land lease expires. The initial concern over "Option 1" was the airport cash -on -hand would drop below a comfortable level. This revised option takes into account a few changes since that time: • Jet Air reduced the initial hangar sale price in exchange for a discounted lease rate for the first 10-years. • The airport will receive grant funding for the Taxiway portion of the project. Hangar M Replacement Cost: $ 627,904.00 ($98.11/sq. ft. — same as Hangar L in 2012) Hangar M Sale Price to the Airport: $ 250,000.00 ($40.63/sq. ft. —Significantly lower than market value!) Infrastructure build-up by airport: $ 50,000.00 (Y2 of ramp, other) (Taxiway separate - grant & match) Total Airport Cash Outlay: $ 300,000.00 Annual Revenue Increase — First 10-Years Fixed Lease Rate hangar M: $ 6,000.00 per year (reduced rate first 10 years) Annual land lease New Hangar: $ 2,000.00 per year (same per square foot as Hangar M) Proiected Fuel Flow Increase (new hanearl: S 5.560.00 per vear Overall Airport Annual Revenue Increase: $ 13,560.00 per year ($135,600 in first 30 years) Annual Revenue for 20 Remaining Years Fixed Lease Rate hangar M: $ 14,361.60 per year (Full Rate ) Annual land lease New Hangar: $ 2,000.00 per year (same per square foot as Hangar M) Proiected Fuel Flow Increase (new hanearl: S 5.560.00 per vear Overall Airport Annual Revenue Increase: $ 21,921.60 per year ($438,432 over 20 years) Airport Investment: $ 300,000 Airport Payback (over 30 years): $ 574,032 (initial investment paid back in 17.5 years, not accounting for CPI) Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 24 of 85 Hangar Proposal Continued: Requirements of the Airport: • Purchase of Hangar M • Invest in New Hangar in the same manner as other private -build construction (All of taxiway, ''/: of ramp expense) • Offer a lease of Hangar M to Jet Air for $1,196.80/month, at flat rate $500 first 10 years ($500.00/mo.) o This lease rate matches Hangar L lease rate of 18.7 cents / sq. ft., at flat -rate ($500) for first 10 years. o Same terms and conditions as Hangar L o Extensions at Jet Air's option for up to 30 years • Provide 30-year Land Lease to Jet Air for new 100'x100' Hangar (same terms as Hangar M's land lease). • Work with Jet Air and McGladrey Accounting firm to structure the leases/transactions appropriately. • Due to the significant capital contribution by Jet Air to build the new hangar, additional options to the FBO Agreement would need to be added to align the operating agreement with the Land Lease on the new hangar. o Jet Air's FBO Agreement options end on December 31, 2026 o Jet Air would require 4 additional 5-year extension options through December 31, 2046 • Same conditions as the existing contract (CPI adjustments, fuel flow adjustments, etc.) Requirements of Jet Air: • Sell Hangar M free and clear of all liens and encumbrances at a price of $260,000 subject to the infrastructure build-up by airport for the new hangar. • Sign a lease for Hangar M (as defined above). • Sign a land lease for the new 100'x100' hangar with the support of the airport (as defined above). • Design and build a 100x100 hangar to be put into service as soon as practical. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 25 of 85 Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr, Iowa City IA 52246 319-350-5045 RESOLUTION NO. RESOLUTION AUTHORIZING THE CHAIRPERSON TO SIGN A PURCHASE AGREEMENT FOR HANGAR BUILDING "M". WHEREAS, the Iowa City Airport Commission desires to enter into a contract with Jet Air, Inc. to purchase Hangar Building "M"; and WHEREAS, both parties have agreed to the contract terms. NOW, THEREFORE, BE IT RESOLVED BY THE IOWA CITY AIRPORT COMMISSION, THAT: 1. The Chairperson is hereby authorized to sign and the Secretary to attest to the attached Hangar Purchase Agreement. Passed and approved this day of _, 2016. CHAIRPERSON ATTEST: SECRETARY It was moved by and seconded by adopted, and upon roll call there were: Ayes Nays Ap oved by City Attorney's Office Absent the Resolution be Bockenstedt Gardiner Libby Odgaard Ogren Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 26 of 85 Prepared by: Eric Goers, City Attorney's Office, 410 E. Washington, Iowa City, Iowa 52240, 319-356-5030 HANGAR PURCHASE AGREEMENT This Hangar Purchase Agreement (hereinafter, "Agreement") is made between the City of Iowa City, a municipal corporation of the State of Iowa (hereinafter, "City") and Jet Air, Inc. (hereinafter, "Jet Air"), for the purchase, by the City of Hangar M, located on ground owned by the Iowa City Municipal Airport but leased to Jet Air. Jet Air currently owns the improvements built thereon — namely, Hangar M, on the ground leased to Jet Air by the City. Hangar M, as described below, shall hereinafter be referred to as the "Property". The ground on which the Property is located is presently owned by the City, and will continue to be owned by the City. I. PURCHASE PRICE / PROPERTY DESCRIPTION. The Purchase Price for the Property shall be $250,000.00, to be paid in full at the time of closing. The Property, Hangar M, is the corporate hangar, approximately 80' wide and 80' deep, with a 65' x 18' Bi-Fold door, located at the Iowa City Municipal Airport. The ground on which the Property sits is not changing hands — only the Hangar itself is being sold. Upon the conclusion of the sale, the City will own both the ground (which it already owns) and the Hangar (which is presently owned by Jet Air.) 2. REAL ESTATE TAXES. Seller pays its prorated share, based upon the date of closing, of the real estate taxes for the fiscal year in which closing occurs, due and payable in the subsequent fiscal year, and all unpaid taxes for prior years. The amount shall be calculated based upon the assessed valuation, legislative tax rollback and real estate tax exemptions that may be applicable to and used for the calculation of taxes payable in the fiscal year commencing July 1, 2016. If, at the time of closing, the tax rate has not been certified, then the most current certified tax rate shall be used. Buyer shall be given a credit for such proration at closing. 3. RISK OF LOSS AND INSURANCE. Seller shall bear the risk of loss or damage to the Property prior to closing or possession, whichever first occurs. Seller agrees to maintain existing insurance until closing or possession, whichever first occurs. City may also insure the Property prior to closing or possession. The Property shall be preserved in its present condition, ordinary wear and tear excepted, and Seller shall deliver it intact at the time the City takes possession. Prior to the City taking possession, Seller shall promptly give written notice to the City of any loss or damage to the Properly. In the event of loss, damage or destruction of all or part of the Property, the City shall have the option to terminate this Agreement effective immediately. However, in the case of loss, damage or destruction of all or part of the Property from causes covered by insurance, the City shall have the option to either 1) take possession of the Property and accept an assignment of all Seller's right, title and interest in and to any claims Seller has under the insurance policies covering the Property; or 2) terminate this Agreement effective immediately. 4. POSSESSION AND CLOSING. if Seller timely performs all obligations, possession of the Property shall be delivered to City on September 1, 2016, and any adjustments of rent, insurance, taxes, interest and all charges attributable to the Seller's possession shall be made as of the date of closing. 5. FIXTURF,S. Included with the Property shall be all fixtures that integrally belong to, are specifically adapted to or are a part of the real estate, whether attached or detached, such as: fencing, gates, bushes, trees, shrubs and plants. 6. STATEMENT AS TO LIENS. Seller shall deliver the Property free of any and all liens. 7. GENERAL PROVISIONS. In the performance of each part of this Agreement, time shall be of Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 27 of 85 the essence. Failure to promptly assert rights herein shall not, however, be a waiver of such rights or a waiver of any existing or subsequent default. This Agreement shall apply to and bind the successors in interest of the parties. This Agreement shall survive the closing. Paragraph headings are for convenience of reference and shall not limit or affect the meaning of this Agreement. Words and phrases herein shall be construed as in the singular or plural number, and as masculine, feminine or neuter gender according to the context. 8. ADDITIONAL PROVISIONS: A. TERMITE INSPECTION. City, at its expense, may have the Property inspected for termites or other wood destroying insects by a licensed pest inspector within 15 days of acceptance. If active infestation or damage due to prior infestation is discovered, Seller shall have the option of either having the Property treated for infestation by a licensed pest exterminator and repaired to the Buyer's satisfaction or declaring this Agreement null and void and returning all earnest money to Buyer. This provision shall not apply to fences, trees, shrubs or outbuildings other then garages. Buyer may accept the property in its existing condition without such treatment or repairs. B. LEASES. The Property must be free of all leasehold interests. Seller agrees to defend, indemnify and hold harmless the City from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney's fees and costs) arising from or related to any leasehold interest. This provision survives closing. 9. ACCEPTANCE. When accepted, this Agreement shall become a binding contract. If not accepted and delivered to City on or before August 18, 2016, at 5:00 o'clock p.m., this Agreement shall be null and void. BUYER: IOWA CITY AIRPORT COMMISSION By: Jacob Odgaard, Chairperson n Bob Libby, Secretary Approved By: City Attorney's Office SELLER: Jet Air, Inc. Date Date Date Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 28 of 85 Commission's Acknowledgement STATE OF IOWA ) ss: JOHNSON COUNTY ) On this day of , 2016, before me, , a Notary Public in and for the State of Iowa, personally appeared Jacob Odgaard and Bob Libby, 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 and that Jacob Odgaard and Bob Libby acknowledged the execution of the instrument to be their voluntary act and dced of the Commission, by it voluntarily executed. Notary Public in and for said County and State Seller's Acknowledgement STATE OF IOWA ) ss: JOHNSON COUNTY ) This instrument was acknowledged before me on , 2016 by _ as of Jet Air, Inc., who verifies that (s)he is empowered to bind Jet Air, Inc. to this Purchase Agreement. Notary Public in and for said County and State 3 Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 29 of 85 Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr. Iowa City, IA 52246 (319) 350 5045 RESOLUTION NO. RESOLUTION AUTHORIZING THE CHAIRPERSON TO EXECUTE AND THE SECRETARY TO ATTEST TO A HANGAR LEASE BETWEEN THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY, IOWA, AND JET AM INC. WHEREAS, the Airport Commission of the City of Iowa City has negotiated a lease for hangar building "M" at the Iowa City Municipal Airport; and WHEREAS, the Commission finds the proposed lease to be proper and in the best interest of the Iowa City Municipal Airport; and WHEREAS, the term of the lease shall be from September 1, 2016 through December 31, 2046. NOW, THEREFORE, BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY: 1. That the proposed hangar lease for Hangar building "M" is hereby approved. 2. That the Chairperson is directed and authorized to execute and the Secretary to attest to the corporate hangar lease between the Airport Commission and Jet Air, Inc. It was moved by and seconded by the Resolution be adopted, and upon roll call there were: Ayes Nays Absent Bockenstedt Gardinier Libby Odgaard Ogren Passed and approved this day of 2016. CHAIRPERSON ATTEST: SECRETARY Approved By: City Attorney's Office Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 30 of 85 CORPORATE HANGAR LEASE This HANGAR LEASE ("Lease") entered into by and between the Iowa City Airport Commission ("Commission") and Jet Air, Inc. ("Tenant") in Iowa City, Iowa. In consideration of the mutual covenants contained herein, and for other good and valuable consideration, the parties hereby agree as follows: Lease of the Hangar Space. The Commission hereby leases to Tenant hangar space in Hangar M (the "Hangar Space") located at the Iowa City Municipal Airport (the "Airport") and described as follows: Building M, Corporate Hangar, 80' wide x 80' deep with a 65' x 18' Bi-Fold Door. 2. Term. The term of this Lease shall commence on the date Landlord takes ownership of Hangar M and shall end on the last day of the month of December, 2046. 3. Rent. For use of the Hangar Space, Tenant shall pay the Commission the amount of $ 1,200 per month, payable in advance on the first day of each month. A 1.5% late fee (which is $ 18.00 per day) for rent not received by the Commission will be charged after the fifteenth (15) day of each month. The rent shall be paid pro rata by the Tenant for any period of possession less than a full month. For the period of until rent shall be $500 per month. Rental Rate shall be adjusted beginning January 1, 2027 and every 5 years thereafter by the CPI Index based on the CPI index from the last adjustment.The first adjustment, on January 1, 2027, shall be based on the applicable index at the time of the execution of this lease. Data for the CPI-U, US City Average, All Items Less Food and Energy shall be used in determining any CPI adjustment. Base Period 1982-1984=100 4. Utilities Tenant shall be responsible for the electric and gas utilities. Hangar does not have water utilities. 5. Security Deposit. At the time of execution of this Lease, Tenant shall pay to the Commission in trust the sum of one month's rent to be held as a rental deposit. At the termination of the Lease, the Commission shall return the deposit to the Tenant less any amounts due to repair damage, conduct cleanup or owed to the Commission. If the Tenant renews the lease, the deposit will be held over for the new term. 6. Use of the Hangar Space. a. The Hangar Space shall be used primarily for storage or construction of the Aircraft consistent with FAR and the Minimum Standards. Airport Commission Agenda & Info Packet Meeting DatT August 18, 2016 Page 31 of 85 C. e. a h. This provision is not to be construed as a prohibition for storage of maintenance materials, cleaning materials, tools, parts, spares, and other aircraft components. Tenant may park his/her car in the Hangar Space during such time that Tenant is using the Aircraft. No commercial activity of any kind shall be conducted by Tenant in, from or around the Hangar Space, other than activities directly related to aviation. No maintenance, including painting, on the Aircraft shall be performed in the Hangar Space or anywhere on the Airport without the prior written approval of the Airport Operations Specialist, except such maintenance as performed by the Tenant on his or her own aircraft as permitted by the FAA. Tenant shall take steps to ensure that the performance of such maintenance work shall not damage the Hangar Space or the Airport where the work is performed or emit offensive odors. Tenant shall be responsible and liable for the conduct of its employees and invitees, and of those doing business with it, in and around the Hangar Space. Tenant shall keep the Hangar Space clean and free of debris at all times. In utilizing the Hangar Space during the term of this Lease, Tenant shall comply with all applicable ordinances, rules, and regulations established by any federal, state or local government agency. Tenant shall dispose of used oil only in approved receptacles. At no time shall Tenant start or run his/her Aircraft engine(s) within the Hangar or Hangar Space. On the termination of this Lease, by expiration or otherwise, Tenant shall immediately surrender possession of the Hangar Space and shall remove, at its sole expense, the Aircraft and all other property therefrom, leaving the Hangar Space in the same condition as when received, ordinary wear and tear excepted. k. Tenant shall be liable for any an Space caused by Tenant's use, interior walls, damage due to fuel improper or negligent operation. Rights and Obligations of Tenant d all damage to the Hangar or to the Hangar including, but not limited to, bent or broken spillage, or damage to doors due to Tenant's a. Tenant shall have at all times the right of ingress to and egress from the Hangar Space, except as provided in Paragraph 12. To ensure this right, the Commission shall make all reasonable efforts to keep adjacent areas to the Hangar Space free and clear of all hazards and obstructions, natural or manmade. b. Tenant shall be responsible to maintain the interior of the Hangar Space to include janitorial services, maintaining all interior lights, cleaning of stoppages in plumbing fixtures and drain lines, cleaning of snow within two (2) feet of the apron adjoining the Hangar Space, disposing of any debris or waste materials, and maintaining any Tenant constructed structures and equipment. The Commission shall be the sole judge of the due maintenance undertaken by the Tenant, and may upon written notice, require specific maintenance work to be Airport Commission Agenda & Info Packet Meeting DatS August 18, 2016 Page 32 of 85 completed. If such maintenance is not completed within a reasonable time period, the Commission shall have the right to perform such due maintenance, and Tenant shall reimburse the Commission for the cost of such maintenance upon presentation of a billing. C. Tenant shall provide and maintain hand fire extinguisher for the interior of the Hangar Space of the building in accordance with applicable safety codes. d. Tenant shall not store any materials outside the Hangar Space. e. Tenant shall promptly notify the Commission, in writing, of any repairs needed on the Hangar or to the Hangar Space. 8. Rights and Obligations of the Commission. a. The Commission shall at all times operate and maintain the Airport as a public airport consistent with and pursuant to the Sponsor's Assurances given by Authority to the United States Government under the Federal Airport Act. b. The Commission shall not unreasonably interfere with the Tenant's use and enjoyment of the Hangar Space. C. The Commission shall maintain and keep the Hangar and Hangar Space in good repair except for the maintenance obligations of Tenant set forth in the Lease. In no event, however, shall the Commission be required to maintain or repair damage caused by the negligent or willful act of Tenant, its agents, servants, invitees, or customer. However, if due to any negligent or willful act by the Tenant, its agents, servants, invitees or customer, there is a need for maintenance or repair of damage, then Tenant shall do such maintenance or repair in a prompt, reasonable manner, as approved by the Commission. d. Snow shall be removed from in front of Hangar Space to within at least two (2) feet of the Hangar. Snow removal closer than two (2) feet is the responsibility of the Tenant. e. The Commission shall ensure appropriate grounds keeping is performed year round. 9. Sublease/Assignment. Tenant shall be allowed to sublease the space per the FBO agreement. 10. Condition of Premises. Tenant shall accept the Hangar Space in its present condition without any liability or obligation on the part of the Commission to make any alterations, improvements or repairs of any kind on or about said Hangar Space. 11. Alterations. Tenant shall not make any alterations to the hangar without the approval of the Airport Commission. 12. Hazardous Materials. Airport Commission Agenda & Info Packet Meeting Datgl August 18, 2016 Page 33 of 85 a. With the exception of Paragraph 11c below, no "hazardous substance," as defined in Iowa Code section 45513.411 (2015), may be stored, located, or contained in the Hangar Space without the Commission prior written approval. (The Iowa Code can be found online at www1ecvs.stateJa.us/lACODE. The. U.S. Code can be found online at www.findlaw.com/caseGode/uscodeslindex.htmi Federal regulations can be found online at htto://www.access.000.ciov/nara/cfrlcfr-table- search.htmi. ) Petroleum products and their byproducts for personal use may be stored or present in the Hangar Space if said substances are contained in approved containers. b. With the exception of Paragraph 11c below, Tenant shall handle, use, store and dispose of fuel petroleum products, and all other non -"hazardous substances" owned or used by it on the Airport in accordance with all applicable federal, state, local and airport statutes, regulations, rules and ordinances. No waste or disposable materials shall be released on the ground or in the storm sewers. Should such materials be spilled or escape from storage or in any way contaminate the Airport or property adjacent to the Airport through activities of the Tenant, the Tenant shall be responsible for the clean up, containment and otherwise abatement of such contamination at Tenant's sole cost and expense. Further, Tenant shall notify the Commission and appropriate governmental agency of such occurrence immediately. Should Tenant fail to do so, the Commission may take any reasonable and appropriate action in the Tenant's stead. The cost of such remedial action by the Commission shall be paid by the Tenant. C. Tenant may have the following materials stored in the Hangar Space: 5 gallons gasoline for motorized tugs 1 gallon of cleaning solvents 2 55 Gallon Drums for oil. The oil drums will be placed on a spill containment pad which would provide containment for entire drum. Spill containment is the responsibility of the tenant to provide and maintain 13. Special Events. During any special event at the Airport, including but not limited to the Sertoma Breakfast or Fly Iowa, Tenant acknowledges that the standard operating procedure at the Airport may be altered such that egress and ingress to the Hangar Space may be altered by the Commission in writing. Tenant's failure to comply with the altered procedure is a default of this Lease, and the Commission may proceed to terminate this Lease. 14. Airport Rules and Regulations. Tenant agrees to be subject to Airport rules and regulations upon adoption by the Commission or provide 30-days notice to terminate this Lease. Commission shall provide Tenant with a copy of said rules and regulations 30-days prior to their effective date. 15. Access and Inspection. The Commission has the right to enter and inspect the Hangar Space at any reasonable time during the term of this Lease upon at least 24 hours notice to the Tenant for any purpose necessary, incidental to or connected with the performance of its Airport Commission Agenda & Info Packet Meeting Datt August 18, 2016 Page 34 of 85 obligations under the Lease or in the exercise of its governmental functions. In the case of an emergency, the Commission may enter the Hangar Space without prior notice but will provide notice to the Tenant after the fact. The Commission shall not, during the course of any such inspection, unreasonably interfere with the Tenant's use and enjoyment of the Hangar Space. At a minimum, the Hangar Space will be inspected annually. Upon execution of this Lease, the Tenant subsequently changes the lock to the Hangar Space, he or she shall provide shall provide notice to the Commission before he or she does so and shall provide a new key to the Commission within twenty-four hours of doing so. 16. 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 Aircraft Liability, including incidental 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 Commision within seven (7) days of when the Certificate expires. 17. Casualty. In the event the Hangar or Hangar Space, or the means of access thereto, shall be damaged by fire or any other cause, the rent payable hereunder shall not abate provided that the Hangar Space is not rendered untenantable by such damage. If the Hangar Space is rendered untenantable and Commission elects to repair the Hangar or Hangar Space, the rent shall abate for the period during which such repairs are being made, provided the damage was not caused by the acts or omissions of Tenant, its employees, agent or invitees, in which case the rent shall not abate. If the Hangar or Hangar Space is rendered untenantable and Commission elects not to repair the Hangar or Hangar Space, this Lease shall terminate. 18. Indemnity. Tenant agrees to release, indemnify and hold the Commission, its officers and employees harmless from and against any and all liabilities, damages, business interruptions, delays, losses, claims, judgments, of any kind whatsoever, including all costs, attorneys' fees, and expenses incidental thereto, which may be suffered by, or charged to, the Commission by reason of any loss or damage to any property or injury to or death of any person arising out of or by reason of any breach, violation or non- performance by Tenant or its servants, employees or agents of any covenant or condition of the Lease or by any act or failure to act of those persons. The Commission shall not be liable for its failure to perform this Lease or for any loss, injury, damage or delay of any nature whatsoever resulting therefrom caused by any act of God, fire, Airport Commission Agenda & Info Packet Meeting Dat%August 18, 2016 Page 35 of 85 flood, accident, strike, labor dispute, riot, insurrection, war or any other cause beyond Commission's control. 19. Disclaimer of Liability. The Commission hereby disclaims, and Tenant hereby releases the Commission from any and all liability, whether in contract or tort (including strict liability and negligence) for any loss, damage or injury of any nature whatsoever sustained by Tenant, its employees, agents or invitees during the term of this Lease, including, but not limited to, loss, damage or injury to the Aircraft or other property of Tenant that may be located or stored in the Hangar Space, unless such loss, damage or injury is caused by the Commission's gross negligence or intentional willful misconduct. The parties hereby agree that under no circumstances shall the Commission be liable for indirect consequential, special or exemplary damages, whether in contract or tort (including strict liability and negligence), such as, but not limited to, loss of revenue or anticipated profits or other damage related to the leasing of the Hangar Space under this Lease. 20. Attorney Fees. If the Commission files an action in district court to enforce its rights under this Lease and if judgment is entered against the Tenant, Tenant shall be liable to and shall pay for the Commission's attorney fees incurred in enforcing the Lease and in obtaining the judgment. 21. Default. This Lease shall be breached if: (a) Tenant fails to make the rental payment; or (b) Tenant or the Commission fails to perform any other covenant herein and such default shall continue for five (5) days after the receipt by the other party of written notice. Upon the default by Tenant, or at any time thereafter during the cintinuance of such default, the Commission may take any of the following actions and shall have the following rights aganst Tenant: a. Termination. Commission may elect to erminate the lease by giving no less than thirty (30) days prior written notice thereof to Tenant and upon passage of time specified in such notice, this lease and all rights of Tenant hereunder shall terminate as fully and completely and with the same effect as if such date were the date herin fixed for expiration of the Term and Tenant shall remain liable as provided in this paragraph. b. Eviction. Commission shall have the immediate right upon Termination of this lease to bring an action for forcible entry and detainer. c. Tenant to remain liable. No termination of this lease pursuant to this paragraph by operation or otherwise, and no repossession of the hangar space or any part thereof shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such termination, repossession, or reletting. d. Damages. In the event of any termination of this lease or eviction from or repossession of the hangar space or any part thereof by reason of the occurrence of an Event of Default, Tenant shall pay to the Comission the rent and other sums and charges required to by paid by the Tenant for the period to and including the end of the Term. 22. Security. Tenant acknowledges that the FAA or another governmental entity or subdivision may enact laws or regulations regarding security at general aviation airports such that the Airport Commission Agenda & Info Packet Meeting Date7August 18, 2016 Page 36 of 85 Commission may not be able to comply fully with its obligations under this Lease, and Tenant agrees that the Commission shall not be liable for any damages to Tenant that may result from said non-compliance. 23. Non -Discrimination. Tenant 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. 24. 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, lessee, 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. 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. Airport Commission Agenda & Info Packet Meeting Dat&8 August 18, 2016 Page 37 of 85 25. e. The Commission reserves the right (but shall not be obligated to Tenant) to maintain and in 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 interferences or hindrance. 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. 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. 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. 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 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. Remedies Cumulative. The rights and remedies with respect to any of the terms and conditions of this Lease shall be cumulative and not exclusive, and shall be in addition to all other rights and remedies available to either party in law or equity. 26. Notices. Any notice, for which provision is made in this Lease, shall be in writing, and may be given by either party to the other, in addition to any other manner provided by law, in any of the following ways: a. by personal delivery to the Commission Chairperson b. by service in the manner provided by law for the service of original notice, or Airport Commission Agenda & Info Packet Meeting Datg August 18, 2016 Page 38 of 85 C. by sending said Notice by certified or registered mail, return receipt requested, to the last known address. Notices shall be deemed to have been received on the date of receipt as shown on the return receipt. (1) If to the Commission, addressed to: Iowa City Airport Commission Iowa City Municipal Airport 1801 S. Riverside Drive Iowa City, IA 52246 (2) If to Tenant, addressed to Jet Air, Inc. Attention: Matt Wolford 1801 S. Riverside Dr. Iowa City, IA 52246 Email: iow@jetairinc.com 27. Airport Operations Specialist. The Airport Operations Specialist is the person designated by the Commission to manage the Hangar Space and to deliver all notices and demands from the Commission, to receive keys to the Hangar Space as provided in Paragraph 14, and to perform inspections as provided in Paragraph 14. 28. Integration. This Lease constitutes the entire agreement between the parties, and as of its effective date supersedes all prior independent agreements between the parties related to the leasing of the Hangar Space. Any change or modification hereof must be in writing signed by both parties. 29. Waiver. The waiver by either party of any covenant or condition of this Lease shall not thereafter preclude such party from demanding performance in accordance with the terms hereof. 30. Successors Bound. This Lease shall be binding and shall inure to the benefit of the heirs, legal representatives, successors and assigns of the parties hereto. 31. Severability. If a provision hereof shall be finally declared void or illegal by any court or administrative agency having jurisdiction over the parties to this Lease, the entire Lease shall not be void, but the remaining provisions shall continue in effect as nearly as possible in accordance with the original intent of the parties. IOWA CITY AIRPORT COMMISSION 0 Title: Date: Airport Commission Agenda & Info Packet Meeting Datfiugust 18, 2016 Page 39 of 85 TENANT: -lam By:.�V{�{� W t C(b'f .- . Title: Date: Approved: City Attorney's Office Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 40 of 85 Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr. Iowa City, IA 52246 (319) 350 5045 RESOLUTION NO. RESOLUTION AUTHORIZING THE CHAIRPERSON TO EXECUTE AND THE SECRETARY TO ATTEST TO A LAND LEASE BETWEEN THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY, IOWA, AND JET AIX INC. WHEREAS, the Airport Commission of the City of Iowa City has negotiated a lease for land as described in Exhibit A; and WHEREAS, the Commission finds the proposed lease to be proper and in the best interest of the Iowa City Municipal Airport; and WHEREAS, the term of the lease shall be from September 1, 2016 through 31 August, 2046. NOW, THEREFORE, BE IT RESOLVED BYU THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY: 1. That the proposed land lease is hereby approved. 2. That the Chairperson is directed and authorized to execute and the Secretary to attest to the land lease between the Airport Commission and Jet Air, Inc. It was moved by and seconded by the Resolution be adopted, and upon roll call there were: Ayes Nays Passed and approved this day of CHAIRPERSON ATTEST: SECRETARY 2016. Absent Bockenstedt _ Gardiner _ Libby _ Odgaard _ Ogren Appr e� G� / City Attorney's Office Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 41 of 85 IOWA CITY MUNICIPAL AIRPORT GROUND LEASE This Ground Lease (the "Lease") is made as of the day of _ 2016, by and between the Iowa City Airport Commission, having a principal business address at 1801 S. Riverside Drive, Iowa City, Iowa 52246 ("Landlord") and Jet Air, Inc. ("Tenant") RECITALS A. The City of Iowa City is the owner of the fee title to premises situated in the City of Iowa City, State of Iowa, commonly known as the Iowa City Municipal Airport. Landlord has the authority to lease ground. B. Tenant is Jet Air, Inc. C. The parties desire to enter into a ground lease pursuant to which Landlord will lease an unimproved portion of the Iowa City Municipal Airport as depicted on Exhibit A (the "Leased Premises") for the purposes of construction of an aircraft storage hangar (Hangar "N")and associated apron. D. Tenant has indicated a willingness and ability to properly keep, maintain, and improve said ground in accordance with standards established by Landlord, if granted a lease of sufficient term on said ground area. In consideration of the foregoing and the mutual covenants hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, Landlord and Tenant hereby agree as follows: ARTICLE I GRANT 1.01 Grant. Landlord hereby leases to Tenant the Leased Premises in accordance with the terms and conditions hereinafter set forth. ARTICLE II CONDITION 2.01 Condition of Lease Premises. Tenant is taking possession of the Leased Premises in an "as -is" condition as of the execution and delivery of this Lease. Landlord Shall have no obligation to perform any improvements, alterations, additions, repairs or replacements thereto except those specifically defined in this lease. ARTICLE III TERM 3.01 Initial Term. The term of this Lease shall commence on September 1, 2016 (the "Lease Commencement Date") and shall continue thereafter until the last day of August, 2046 (the "Term") unless sooner terminated as provided herein. 3.02 Options to renew. There are no options to renew included in this lease. ARTICLE IV RENT AND UTILITIES 4.01 Annual Base Rent. Commencing on and continuing on the first day of each succeeding month, Tenant shall pay to Landlord, at the address specified in Section 17.05, or at such other place as Landlord may from time to time hereinafter designate to Tenant in writing, annual rent ("Annual Base Rent' as follows: Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 42 of 85 Annual Base Rent: $.20 per square foot per year. For the period of - $2,000.00 per year, payable monthly with payments due on the first day of the month $166.67 is due each month beginning , 2016. (a) Definitions. For the purposes of this provision, the following definitions shall apply: (1) the term "Consumer Price Index' or "CPI" shall mean the U.S. Bureau of Labor Statistics Consumer Price Index for all Urban Consumers — U.S. City Average, seasonally adjusted (1982-1 984= 100). (2) the term "Current CPI" shall mean the annual average of Consumer Price Indices for the calendar year immediately preceding the Change Date (3) the term 'Base CPI' shall mean the annual average of Consumer Price Indices for the calendar year immediately preceding the year for which the Current CPI is determined. (4) the term "Change Date" shall mean September 15t of each year beginning 2021 (b) Adjustment. Effective on the Change Date, the Annual Base Rent hereunder shall escalate based on the following formula and illustrated by the following example: (1) Formula: HCurrent CPI -Base CPI} x Rent] + Rent = Escalated Rent [Base CPI] (2) Example: Assume Change Date is 2/1/13. Assume the annual base rent is $1,632. Assume the Current CPI (annual average CPI for 2011) is 225.114 and that the Base CPI (annual average CPI for 2012) is 228.537. Annual base rent beginning February 1, 2013 would be $1,656.81 [(228.537-225.114) x$1,632] +$1,632 = $1,656.81 225.114 (c) No Recomputations. No subsequent adjustments or recomputations, retroactive or otherwise, shall be made to the Consumer Price Index due to any revision that may later be made to the first published figure of the Consumer Price Index for any month. (d) No Rent Decrease. In no event shall the Annual Base Rent for a given year be less than the Annual Base Rent for the preceding year. (e) No Waiver. Any delay or failure of Landlord in computing or billing Tenant for the escalation of Annual Base Rent as provided herein shall not constitute a waiver of or in any way impair the continue obligation of Tenant to pay such escalation of Annual Base Rent. (f) Change in Index. In the event that the Consumer Price Index ceases to use 1982-1984=100 as the basis of calculation the new CPI established by the U.S. Bureau of Labor Statistics Consumer Price Index for all Urban Consumers — U.S. City Average, seasonally adjusted, with a different base year shall be used. Tenant may pay early without a prepayment penalty 4.02 Net Lease. This Lease in every sense shall be without cost to the Landlord for the Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 43 of 85 development, maintenance, and improvement of the Leased Premises. It shall be the sole responsibility of the Tenant to keep, maintain, repair and operate the entirety of the Leased Premises and all improvements and facilities placed thereon at Tenant's sole cost and expense. 4.03 Utility Payments. Commencing with the Lease Commencement Date and continuing throughout the Term, Tenant shall pay or cause to be paid all charges, assessments, or taxes for gas, electricity, water, sewer, telephone and all other utility services incurred in connection with Tenant's use and occupancy of the Leased Premises. . 4.04 Taxes. Commencing with the Lease Commencement Date and continuing throughout the Term, Tenant shall pay all property taxes assessed on the Leased Premises when they become due. ARTICLE V USE AND OCCUPANCY 5.01 Use. Tenant shall use the Leased Premises solely for the construction, use, and support of corporate aviation hangar facilities. 5.02 Construction. Tenant shall use its best efforts to complete the construction of a building facility on the Leased Premises for the operation of said hangar. Tenant's interest under this Lease shall terminate and all payments hereunder shall be forfeited if Tenant does not complete construction of the substantial improvements within one (1) year of the date of the execution of this Lease agreement. "Substantial improvements" means completion of the construction in accordance with the plans and specifications approved by the Commission and with city ordinances. The failure by Tenant to complete minimum improvements within a period of one (1) year from the Lease Commencement Date shall be considered an event of Default and Landlord shall have available all remedies set forth herein. 5.03 Licenses. Tenant shall at Tenant's expense, obtain and maintain during the Term of this Lease all licenses or permits necessary for the operation of Tenant's use of the Leased Premises as defined in section 5.01 herein and Tenant shall comply with any other applicable rules and regulations governing the operation of Tenant's use of the Leased Premises as required by any federal, state, or local government or regulatory authority or agency. 5.04 Zoning. Tenant shall, at tenant's expense, obtain any and all necessary zoning approvals and permits required by local law or ordinance. 5.05 Restrictions. (a) Prohibited Uses. No use of the Leased Premises shall be permitted which is offensive by reason of odor, fumes, dust, smoke, noise, or other pollution, nor shall any use be permitted which is hazardous by reason of excessive danger of fire or explosion, which may be injurious to any property or persons on or about the Iowa City Municipal Airport or that is in violation of the applicable laws or regulations of any governmental authority. Any use that negatively affects the operation of the Iowa City Municipal Airport is prohibited. (b) Hazardous Materials. No hazardous Materials of any kind shall be stored on or disposed of on the lot. As used herein, Hazardous Materials shall mean: 1. Any "hazardous waste" as defined by the Resource Conservation and Recovery Act of 1976, as amended from time to time, and rules or regulations promulgated thereunder; 2. Any "hazardous substance" as defined by the Comprehensive Environmental Response Compensation and Liability Act of 1980, as amended from time to time and rules or regulations promulgated thereunder; Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 44 of 85 3. Any oil, petroleum products, and their byproducts; and 4 Any substance which his regulated by any federal, state, or local governmental authority or that is the subject of any law, rule, or regulation. (c) Nuisances. No act constituting a nuisance as defined under the provision of Chapter 657, Code of Iowa, or the common law of Iowa shall be permitted, and the restrictions pertaining to acts within a county in said Code chapter shall be applicable. (d) Construction Site Standards. Construction and the conduct thereof shall comply with all governmental requirements as to health and safety and shall meet the standards set forth herein as set forth by City ordinance. Such standards shall cover, but not be limited to, the restrictions contained herein and additional regulations concerning erosion control, parking for construction workers, office trailers on the lot, material storage, location of telephones and vending machines, security design, location and disposal of sewage during construction, cleaning and policing of the construction site and protection of streets, street right of ways and property adjoining the building site. Said requirements may vary depending on size, location, and topography of a lot. During the course of construction, Tenant, its agents, and contractors shall keep mud, dirt, debris and building materials off all City roads. No temporary building, job trailers or the like shall be permitted on the lot except those incident to construction while an approved building is being constructed thereon and shall be removed within 30 days following the issuance of a permanent certificate of occupancy by the City of Iowa City. When the construction of a project is once begun, work thereon shall be prosecuted diligently and continuously until full completion. Any building shall be substantially completed prior to occupancy of any part thereof, and landscaping shall be fully completed within 30 days of granting a certificate of occupancy, weather permitting. If the Tenant informs the Landlord in writing within 30 days of issuance of the certificate of occupancy that weather will not permit the completion of landscaping, the Landlord will provide the Tenant with an alternate deadline by which to complete the landscaping. Tenant shall be liable for damage to airport facilities and pavements used during construction activity. (e) Parking. All vehicle parking areas and service drives shall be dust free, hard -surface with a concrete curb and gutter. (f) Landscaping. In connection with construction on the leased ground, the Tenant shall be required to sod or seed the entire ground surface of the leased ground except for building and parking sites and alternatively landscaped areas. The area Tenant shall be responsible for sodding or seeding shall be maintained in good condition and appearance. Any other ground owned by Landlord disturbed by the construction of improvements and facilities by Tenant shall be restored to their prior condition upon completion of construction. (g) Signs. All signage shall comply with city ordinances and be approved by the Landlord. (h) Lighting. All lighting shall be directed away from adjacent properties and shall be positioned to eliminate glare on streets and highways. No neon lights, intermittent or flashing lights shall be allowed. Only shaded light sources shall be used to illuminate signs, facades, buildings, parking and loading areas. All lighting shall be directed downward. (i) Storage. No storage of any articles, goods, or materials shall be permitted outside any buildings except of a temporary nature only and then only with the prior written consent of the Landlord, who shall have the right, as a condition to any such approval, to impose such limitations and screening requirements as it may deem in the best interested of the area. Any such approval may be revoked by the Landlord if at any time any of such limitations or screening requirements are not met. 0) Utilities. All electric, telephone, and other utility lines on or servicing the lot must be underground. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 45 of 85 ARTICLE VI 6.01 Improvements and Personal Property. (a) Title to Tenant's Improvements. Any and all real property improvements, alterations, modifications or additions on or to the Leased Premises made by Tenant during the Term ("Improvements") shall be and remain the property of Tenant throughout the Term. (b) Surrender. Upon expiration of the Term or termination of the Lease, whether by breach, default, expiration of Lease, or otherwise, title to the Tenant's Improvements shall be and become the sole and absolute property of Landlord, and Tenant shall thereupon be required to, at Landlord's sole discretion, either: (i) return and deliver up the Leased Premises in the same condition as when delivered to Tenant, normal wear and tear excepted or (ii) return and deliver up to Landlord the Leased Premises and Tenant's Improvements thereon. If Landlord chooses option (ii), said Improvements shall be surrendered to and become the sole property of Landlord at that time, free and clear of any liens of mortgages, deeds of trust, liens of mechanics, laborers or materialmen, and all other liens and encumbrances other than any such liens and encumbrances incurred by Landlord, or such lien or encumbrance which Landlord agrees in writing may survive the expiration of the Term or the termination of the Lease. (c) Removal of Personal Property. All items of furniture, furnishings, inventories and other personal property acquired by Tenant for use on the Leased Premises (the "Personal Property") shall be and remain the property of Tenant regardless of termination of the Lease or expiration of the Term. Tenant shall remove from the Leased Premises all Personal Property at or before the termination or expiration of the Lease. If Tenant fails to remove such items within such period, then (i) such items shall be deemed abandoned by Tenant and shall become the property of Landlord, and (ii) Landlord shall have the right to remove and dispose of such items as Landlord, in its sole discretion, sees fit and to charge Tenant the cost of doing so. 6.02 Alterations. (a) Required or Discretionary Alterations. Tenant shall make all additions, improvements, and alterations (hereinafter "Alterations') on the Leased Premises, and on and to the Tenant's Improvements thereon, required by any governmental authority or which may be made necessary by the act or neglect of Tenant, its employees, agents or contractors, or any persons, firm or corporation, claiming by, through or under Tenant. Except as provided in the immediately preceding sentence, Tenant shall not make any other Alterations to the Leased Premises without Landlord's prior written consent, which consent shall not be unreasonably withheld or delayed. (b) Performance Standards. Prior to making any Improvements or Alterations, Tenant shall submit to Landlord for approval the following items: i. Final plans and specifications, together with a certificate from Tenant's architect that the final plans and specifications are in compliance with all applicable laws and ordinances; ii. A good faith estimate by Tenant's architect of the cost of constructing the Improvements or Alterations; iii. Names and addresses of proposed contractors and subcontractors iv. A copy of signed contract or contracts for the full cost of construction of the Improvements or Alterations in accordance with the final plans and the cost estimate of Tenant's architect. V. Necessary permits or satisfactory evidence that a permit is not required. Landlord shall determine in its reasonable discretion the sufficiency of such Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 46 of 85 evidence. vi. Certificates of Insurance required by Section 8.01 naming Landlord and the City of Iowa City as additional insureds and including builder's risk, liability and worker's compensation insurance and such other insurance customarily obtained during construction as is reasonably requested by Landlord; and vii. Completion assurances in the form of an Irrevocable Letter of Credit or Payment and Performance Bond in accordance with Section 6.02(c) below, both drawn to the benefit of Landlord, or as may be required by Landlord. Such completion assurances must be acceptable to Landlord in both form and substance, and must also be obtained from companies satisfactory to Landlord. In addition, Tenant shall, upon Landlord's written request, provide Landlord with evidence satisfactory to Landlord of Tenant's financial ability to pay for the Improvements or Alterations. Landlord may also require that Tenant secure, at Tenant's expense, evidence satisfactory to assure Landlord's title in the Leased Premises against mechanic's liens arising out of any work, alterations or improvements made to the Leased Premises by Tenant as provided in Section 6.03 herein below. Tenant shall not commence to perform any Improvements or Alterations costing in excess of $10,000.00 without obtaining Landlord's prior written consent, which consent shall not be unreasonably withheld. All permitted Improvements or Alterations shall be performed with new materials, in a good and workmanlike manner, strictly in accordance with the final plans and specifications approved by the Landlord, and in accordance with any and all Legal Requirements as such term is defined in Section 6.05. Upon completion of any such work by or on behalf of Tenant, Tenant shall provide Landlord with such documents as Landlord may require evidencing payment in full for such work, such as lien waivers, and "as -built" working drawings. In the event Tenant performs any work not in compliance with the provision of this Section 6.02(b), Tenant shall, upon written notice from Landlord, immediately remove such work and restore the Leased Premises to their condition immediately prior to the performance thereof. If Tenant fails to so remove such work and restore the Leased Premises as aforesaid, Landlord may, at its option, and in addition to all other rights or remedies of Landlord under this Lease, at law or in equity, enter the Leased Premises and perform said obligation of Tenant and Tenant shall reimburse Landlord for the cost to the Landlord thereof, immediately upon being billed therefore by Landlord. Such entry by Landlord shall not be deemed an eviction or disturbance of Tenant's use or possession of the Leased Premises, nor render Landlord liable in any manner to Tenant. (c) Performance Bonds. Unless exempt or unless this requirement is waived by Landlord, Tenant, at its own cost and expense, shall cause to be executed, and delivered to Landlord two separate bonds, as follows: (i) Prior to the date of commencement of construction, a contract surety bond in a sum equal to the full amount of the construction contract awarded by Tenant for construction of the improvements on the Leased Premises. Said bond shall be drawn in a form and from such company as approved by Landlord; shall guarantee the faithful performance of necessary construction and completion of improvements in accordance with approved final plans and detail specifications; and shall guarantee Landlord against any losses and liability, damages, expenses, claims, and judgments Caused by or resulting from any failure of Tenant, or Tenant's contractor, to perform completely the work described as herein provided and to pay all bills for labor, supplies, material and equipment incident thereto. In lieu of said bond, Tenant may deposit the amount of said bond in a local depository institution selected by Tenant to remain until Tenant's general contractor has delivered to Landlord a waiver of all claims against the Leased Premises for labor done and materials furnished and for a period of four months after the Landlord's building inspector approves final completion of the construction of improvements, provided no mechanic's liens have been filed against the Leased Premises during that time, at which time such deposit shall be refunded to Tenant. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 47 of 85 All earnings from said deposit shall be the property of Tenant. (ii) Prior to the commencement of this Lease, a surety bond in the sum at least equal to one (1) year's rental. Said bond shall be conditioned on the faithful performance of all terms, conditions, and covenants of this Lease, shall be renewable annually, and shall be kept in full force and effect for the complete term of this Lease. At Tenant's option, an amount equal to one (1) year's rental may be deposited with Landlord in lieu of said performance bond. 6.03 Liens. Tenant shall not cause or permit any liens to be attached to, placed on or filed against the Landlord's interest in the Leased Premises or Tenant's Improvements in connection with any construction, alteration, demolition, repair or restoration work Tenant performs or causes to be performed on the Leased Premises. If, however, at any time, in connection with the planning, construction, alteration, demolition, repair or restoration work Tenant performs or causes to be performed on the Leased Premises, any liens of mechanics, laborers or materialmen shall be filed against, attached to or placed on the Leased Premises, the Tenant's Improvements or any part thereof relating to work described above, Tenant shall, at its expense, cause the same to be discharged, by payment, bonding or otherwise as provided by law, within fifteen (15) days after Tenant receives notice that the lien was filed, except for such liens that may have been incurred by Landlord arising from Landlord's actions. Nothing herein contained shall in any way prejudice the rights of Tenant to contest in good faith to final judgment or decree any such lien prior to payment thereof, provided that Tenant shall (a) furnish and keep in effect a surety bond of a responsible and substantial surety company, acceptable to Landlord, in an amount sufficient to pay 125% of the amount of such contested lien claim with all interest thereon and costs and expenses with respect thereto, or (b) provide other security reasonably satisfactory to Landlord. Upon final determination of the validity of such contested lien or claim, Tenant shall immediately pay the amount finally determined to be due thereon including any judgment or decree rendered in connection therewith, with all property costs and charges and shall cause any such lien to be released of record without cost to Landlord and during the pendency of any such contest, Tenant shall save and keep Landlord harmless from any claim or loss by reason thereof. Tenant's failure to comply with the terms of this Section 6.03 shall be considered a Default under the Lease, and Landlord shall have the right to any and all remedies against Tenant as set forth in Section 13.02 herein. 6.04 Maintenance. Tenant shall, throughout the Term, at its sole cost and expense, maintain the Leased Premises and all buildings and improvements at any time erected thereon, any unimproved portion of the Leased Premises and all Personal Property installed therein, in good repair and in a safe, clean, sightly and sanitary condition. In the event that Tenant, in Landlord's reasonable judgment, fails to comply with its repair and maintenance obligations under this Section 6.04, Landlord may, but shall not be obligated to, in addition to its remedies under Article XIII, perform all repairs and maintenance which in Landlord's reasonable judgment is required to bring the Leased Premises, Tenant's Improvements and Personal Property into compliance with the repair and maintenance standards of this Section 6.04, and charge the cost to Tenant. 6.05 Compliance with Legal Requirements. Tenant shall, throughout the Term, at its sole cost and expense, promptly comply with all applicable laws, ordinances and regulations of governmental entities having jurisdiction over the Leased Premises (including, but not limited to all local zoning use restrictions and requirements), and all policies of insurance applicable to Leased Premises (collectively, "Legal Requirements"). Tenant shall not conduct or permit any person to conduct any unlawful activity on the Leased Premises or any use or activity in violations of (a) any Legal Requirements, including but not limited to zoning or other land use laws or ordinances, or (b) any private restrictive covenants applicable to the Real Estate. Furthermore, Tenant shall not cause or allow any activity which causes air, water, soil, or noise pollution, which would violate any Legal Requirements or which would otherwise constitute a nuisance or reasonably objectionable intrusion into or interference with the use of any surrounding property. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 48 of 85 6.06 Non -Discrimination. Tenant covenants, in consideration of the right to lease property at Iowa City Municipal Airport, that 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, facilities, privileges and advantages to the public. Tenant shall remain in compliance with all requirements of 49 C.F.R. Part 21, non -Discrimination in Federal Assisted Programs of the Department of Transportation. ARTICLE VII INSURANCE, DAMAGE AND DESTRUCTION 7.01 Insurance. Tenant covenants and agrees that it will 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 a. Property Insurance - 100% of the replacement cost value on any building, on an "all risk" or Special Causes of Loss basis or equivalent form. City of Iowa City shall be named as a Loss Payee on the property insurance policy with Clause C. Loss Payable of ISO form CP1213 0607 (or other equivalent form) b. Liability- $1,000,000 occurrence/$2,000,000 aggregate limits on a "Garage Liability" form (or equivalent combined premises and auto liability form) whereby such insurance includes all operations conducted on the premises and any auto or motorized vehicle or trailer operated by or on behalf of the tenant. c. Excess Liability $1,000,000 occurrence /$1,000,000 aggregate. City of Iowa City and the Airport Commission shall be named as an additional insured on the Garage Liability and the policy shall be endorsed with the Government Immunity endorsement provided below. Certificate of insurance will be provided evidencing coverage. All insurance companies involved should have an A.M. Best rating of A- or higher. Tenant shall deliver to the Landlord, within thirty (30) days of execution of this lease agreement, Certificates of Insurance and copies of said policies, naming the Landlord and the City of Iowa City, Iowa as additional insureds. Tenant shall provide fifteen (15) days' notice to the Landlord before cancellation of said insurance. Governmental Immunities Endorsement 1. Non -waiver of Government Immunity. The insurance carrier expressly agrees and states that the purchase of this policy and the including of the City of Iowa City, Iowa and the Iowa City Airport Commission as Additional Insured does not waive any of the defenses of governmental immunity available to the City of Iowa City, Iowa, or the Iowa City Airport Commission under Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. 2. Claims Coverage. The insurance carrier further agrees that this policy of insurance shall cover only those claims not subject to the defense of governmental immunity under the Code of Iowa Section 670.4 as it now exists and as it may be amended from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be covered by the terms and conditions of this insurance policy. 3. Assertion of Government Immunity. The City of Iowa City, Iowa and the Iowa Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 49 of 85 City Airport Commission shall be responsible for asserting any defense of governmental immunity, and may do so at any time and shall do so upon the timely written request of the insurance carrier. Nothing contained in this endorsement shall prevent the carrier from asserting the defense of governmental immunity on behalf of the City of Iowa City and/or the Iowa City Airport Commission. 4. Non -Denial of Coverage. The insurance carrier shall not deny coverage under this policy and the insurance carrier shall not deny any of the rights and benefits accruing to the City of Iowa City, Iowa and the Iowa City Airport Commission under this policy for reasons of governmental immunity unless and until a court of competent jurisdiction has ruled in favor of the defense(s) of governmental immunity asserted by the City of Iowa City, Iowa and the Iowa City Airport Commission. 5. No Other Change in Policy. The insurance carrier, the City of Iowa City, Iowa, and the Iowa City Airport Commission agree that the above preservation of governmental immunities shall not otherwise change or alter the coverage available under the policy. d. Worker's Compensation Insurance as required by Chapter 85, Code of Iowa. 7.02 Subrogation: Subrogation rights are not to be waived unless a special provision is attached to this lease. 7.03 Damage or Destruction. (a) Tenant's Obligation to Restore. If any or all of the Tenant's Improvements shall be damaged or destroyed by fire or any other casualty, then Tenant shall have the right, exercisable by giving written notice thereof to Landlord within fifteen (15) days after the determination thereof, to terminate this Lease. Damaged means when the cost to repair the Improvements exceeds the current value of the Improvements as determined by the Landlord. (i) If the Lease is not terminated, then Tenant shall be obligated to repair and restore Tenant's Improvements, as hereinafter provided. Such repair or restoration shall be commenced within ninety (90) days after the date the casualty occurs, and shall be completed within a reasonable period thereafter not to exceed twelve (12) months. If the Tenant shall fail to commence or complete such repairs and restoration work within the time periods set forth in the preceding sentence, except for reasons due to strike, shortage of labor or materials, war, or an act of God, Landlord shall have the right to immediately terminate this Lease. In performing such restoration, Tenant shall substantially comply with the conditions applicable to Alterations, including but not limited to, Section 6.02. All insurance proceeds collected for such damage or destruction shall be paid to a depositary approved by Landlord, Tenant, and any entity having a security interest in the Lease. Such insurance proceeds shall be made available to be applied toward the cost of such repairs or restoration. If the insurance proceeds shall be insufficient for said repair or restoration, Tenant shall make up the deficiency out of Tenant's funds. In all cases, due allowance shalt be made for reasonable delay caused by adjustment of insurance claims, loss, strikes, governmental approval, labor difficulties or any cause beyond either party's reasonable control. (ii) If the Lease is terminated in accordance with this Section 13.02(a), then Tenant shall demolish the Tenant's Improvements and restore the Leased Premises to its condition prior to the Lease Commencement Date, and the effective date of the Termination shall occur upon completion of such demolition and restoration work, as if such date were specified as the expiration date of the Term. In such event, the insurance proceeds shall be applied to pay for the demolition of the Tenant's Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 50 of 85 Improvements and the restoration of the Leased Premises, as previously provided, and thereafter, Tenant shall receive any remaining proceeds. (b) Remedies. If Tenant shall not enter upon the repair or rebuilding, or the demolition and restoration, as the case may be, of the Tenant's Improvements within the period specked in Section 8.03(a) and prosecute same thereafter with such dispatch as may be necessary to complete same within said period, then, in addition to whatever other remedies Landlord may have either under this Lease, at law or in equity, the money received by and then remaining in the hands of the Depositary shall be paid to and retained by Landlord as security for the continued performance and observance by Tenant of the Tenant's covenants and agreements hereunder, or Landlord may terminate this Lease and then be paid and retain the amount so held as liquidated damages resulting from the failure on the part of Tenant to comply with the provisions of Section 8.03(a). (c) Negotiation, Settlement and Adjustment of Insurance Proceeds. Tenant shall have the right to settle the amount of the casualty loss with the insurance carriers, but no final settlement of a loss in excess of Fifty Thousand Dollars ($50,000.00) may be made without Landlord's prior written consent thereto. (d) Rent and Other Charges. Provided the Lease is not terminated as provided in Section 8.03(a), neither Rent nor other charges shall be reduced or abated following damage or destruction or during the period of repair, restoration or rebuilding. If the Lease is so terminated, Rent and other charges shall be paid through the effective date of such termination. ARTICLE Vill ASSIGNMENT AND SUBLETTING 8.01 Binding Effect. The Lease shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors, and assigns. 8.02 Assignments. Tenant may not sell, transfer, or assign this Lease (either directly or indirectly) or any legal or beneficial interest therein, or sublease ail or any part of the Leased Premises without the prior written consent of the Landlord, which consent may be withheld at Landlord's sole discretion. In exercise of its discretion as to such a proposed sale, transfer or assignment by Tenant, Landlord, in the event that a proposed sale, transfer or assignment by Tenant provides for payment to Tenant an amount of rent greater than the amount of Tenant's rent obligation herein at the time, Landlord may require that a percentage of the difference between the rental amounts be paid to Landlord. Tenant shall give Landlord written notice of any proposed assignment or sublease of the Leased Premises, and such notice shall provide (a) the name and address of the proposed assignee or sublessee, (b) the terms of the proposed assignment or a copy of the proposed sublease, (c) the most recent financial statements of the proposed assignee or sublessee and (d) such other information as Landlord may reasonably request. Any assignment or sublease made by Tenant without Landlord's consent in violation of this Section 10.02 shall be voidable at Landlord's option and shall constitute an Event of Default. Landlord's consent to any one assignment or sublease shall not be deemed a waiver of this Section 10.02 with respect to any subsequent assignment or sublease nor consent to any subsequent assignment or sublease. Absent the Landlord's agreement to the contrary, following assignment, whether with or without the Landlords' consent, Tenant will remain liable for all Lease obligations. Nothing in this paragraph shall prevent Tenant from leasing space in the hangar it intends to build to aviation end users in the normal course of FBO business. Such use will require neither Landlord permission nor any sharing of profits with Landlord. ARTICLE IX 9.01 Leasehold Mortgage. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 51 of 85 (a) General Provisions. Tenant, and any successor or permitted assignee of Tenant shall not, at any time during the Term, pledge, mortgage or encumber the Lease and/or the Leased Premises demised hereunder, or Tenant's Improvements, without Landlord's prior written consent, which consent Landlord may, in its sole discretion, withhold. Any such pledge, mortgage or encumbrance made by and entered into with Landlord's consent, is herein referred to as a "Leasehold Mortgage". Any Leasehold Mortgage made by and entered into by Tenant without Landlord's consent in violation of this Section 11.01 shall be voidable at Landlord's option, and shall constitute an Event of Default. (b) Landlord's Forbearance; Foreclosure by Leasehold Mortgagee. Landlord hereby agrees that for the benefit of a Leasehold Mortgagee holding a Leasehold Mortgage and the successors and assigns of such Leasehold Mortgagee: (i) When giving notice to Tenant with respect to any default under the Lease or any exercise of any right to terminate the Lease, Landlord will also give a copy of such notice to the Leasehold Mortgagee at the address of the Leasehold Mortgagee furnished to Landlord. No such notice to Tenant shall be deemed to affect any rights of the Leasehold Mortgagee unless or until such notice is given in said manner to such Leasehold Mortgagee. (ii) In case Tenant shall default in respect of any of the provisions of the Lease, the Leasehold Mortgagee shall have the right, but not the obligation, to cure such default, and Landlord shall accept payment and/or performance by or on behalf of such Leasehold Mortgagee as though, and with the same effect, as if the same had been done or performed by Tenant. The Leasehold Mortgagee will have a period of time after the service of any notice of a default hereunder upon it within which to cure the default specified in such notice, or cause it to be cured, which is the same period for cure, if any, as is available to Tenant under the Lease for the specified default, plus an additional period of thirty (30) days. In the event of a default (or in the event that Landlord is seeking to terminate the Lease by reason of a default) which cannot reasonably be cured within said period because of Tenant's possession of the Leased Premises, Landlord shall forebear from exercising its rights to terminate the Lease as against Leasehold Mortgagee (while reserving all rights against Tenant) on account of such default provided that the Leasehold Mortgagee: (A) has cured all defaults which can reasonably be cured within the period of time allotted for cure, (B) within said period has notified Landlord of its intent to cure all other defaults in a notice which specifies the proceedings by which the Leasehold Mortgagee intends to secure possession of the Leased Premises, (C) has begun proceedings to secure possession within the said period, and (D) thereafter prosecutes such proceedings with reasonable diligence. The notice specified in clause (B) above shall contain an assumption by the Leasehold Mortgagee of all of Tenants restrictions and obligations hereunder. (iii) No default will be deemed to exist as against any Leasehold Mortgagee and Landlord shall have no right, and shall take no action, to effect a termination of the Lease as against any Leasehold Mortgagee until the Leasehold Mortgagee has had the opportunity to cure such default specified in clause (ii) above. If the Leasehold Mortgagee, by foreclosure or otherwise, acquires Tenant's leasehold estate, the Leasehold Mortgagee shall be subject to ail Lease Restrictions and shall be liable for all Tenant's obligations accruing thereafter to the same extent as the prior Tenant would have been so liable. (iv) Provided that the Leasehold Mortgagee has complied with Subsection (ii) of this Section, any default of Tenant under any provision of the Lease which is not reasonably susceptible of being cured by a Leasehold Mortgagee during the cure period specified in Subsection (ii) of this Section shall be cured by Leasehold Mortgagee or any other purchasers or transferees of Tenants interest under this Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 52 of 85 Lease, whether at judicial foreclosure, trustee's sale or by an assignment of the Lease in lieu of foreclosure within thirty (30) days after acquisition. (v) A Leasehold Mortgagee (or its designee or nominee) may become the legal owner and holder of the interest of Tenant under the Lease, including without limitation, the interest of Tenant in all Tenant's Improvements and Personal Property, by foreclosure or other enforcement proceedings, or by obtaining an assignment of the Lease and a conveyance of the Tenant's Improvements and Personal Property in lieu of foreclosure or through settlement of or arising out of any pending or threatened foreclosure proceeding, without Landlord's consent, but subject always to the applicable terms, provisions, obligations, and restrictions of the Lease. Upon such acquisition of legal ownership, such Leasehold Mortgagee (or its designee or nominee) shall be liable for all obligations under the Lease accruing thereafter to the same extent as the Tenant would have been. In such event, Leasehold Mortgagee (or, if said Leasehold Mortgagee has not yet become a successor Tenant hereto, then its designee or nominee) shall have the right thereafter to assign the Lease and convey the Tenant's Improvements and Personal Property subject to all other applicable terms, provisions, obligations, and restrictions of the Lease. (vi) If Tenant fails to observe or perform any of its obligations under the Lease, Leasehold Mortgagee may, but shall not be obligated to, observe or perform such obligations for and on behalf of Tenant, whether or not Tenant shall be in default under the Lease. (c) Notices to Leasehold Mortgagees. Any notice or other communication which Landlord shall desire or is required to give to or serve upon a Leasehold Mortgagee shall be in writing and shall be served by registered or certified mail or by commercial courier service addressed to such holder at the address as shall be designated from time to time by such Leasehold Mortgagee and shall mail a copy of said notice by ordinary mail. Any notice or other communication which any Leasehold Mortgagee shall desire or is required to give to or serve upon Landlord shall be deemed to have been given or served if sent by registered or certified mail or by commercial courier service addressed to Landlord at Landlord's address as set forth in the provisions of the Lease providing for notices to Landlord or at such other address as shall be designated from time to time by Landlord by notice in writing given to such Leasehold Mortgagee by registered or certified mail or by commercial courier services. Any notice given pursuant hereto shall be effective when received or refused. (d) Non -Merger. No union of the interests of Landlord and Tenant shall result in a merger of the Lease and the fee interests in the leased Premises without the prior written consent of any Leasehold Mortgagee. ARTICLE X EASEMENTS 10.01 Generally. This Lease and the rights granted to Tenant hereunder are expressly made subject and subordinate to any and all existing easements on the Leased Premises, and Tenant shall not in any way act to alter, obstruct, disturb or otherwise impair any of said easements nor grant additional easements on or affecting the Leased Premises during the term of this Lease without Landlord's prior written consent. ARTICLE XI DEFAULT 11.01 Events of Default. The following shall constitute "Events of Default": Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 53 of 85 (a) Monetary. Tenant shall fall to pay Rent at the time required or any other monetary obligation or payment required under this Lease when due, and such failure shall continue for a period of ten (10) days following written notice from Landlord to Tenant; or (b) Non-performance. Tenant shall fail to observe or perform any of the other covenants, terms or conditions contained in the Lease, or a warranty made by Tenant shall fail to be accurate and complete, and such failure shall continue and not be cured for a period of thirty (30) days after written notice by Landlord to Tenant, provided that if the default is not reasonably susceptible of being cured within thirty (30) days, an Event of Default shall occur only if the Tenant fails to promptly commence such cure or fails thereafter to diligently pursue such efforts to completion; or (c) Bankruptcy: Receivership. If (i) Tenant files a petition in bankruptcy or for reorganization or for an arrangement pursuant to any present or future federal or state bankruptcy law or under any similar federal or state law, or is adjudicated a bankrupt or insolvent, or makes an assignment for the benefit of its creditors, or admits in writing its inability to pay its debts generally as they become due, or if a petition or answer proposing the adjudication of Tenant as a bankrupt or a reorganization of Tenant under any present or future federal or state bankruptcy law or any similar federal or state law is filed in any court and such petition or answer is not discharged or denied within thirty (30) days after the filing thereof; or (ii) A receiver, trustee or liquidator of Tenant of all or substantially all of the assets of Tenant or of the Leased Premises or any portion thereof is appointed in any proceeding brought by or against Tenant and is not discharged within thirty (30) days after such appointment or if Tenant consents to or acquiesces in such appointment. 11.02 Landlord's Rights upon an Event of Default. Upon the occurrence of an Event of Default by Tenant, or at any time thereafter during the continuance of such Event of Default, Landlord may take any of the following actions and shall have the following rights against Tenant: (a) Termination. Landlord may elect to terminate the Lease by giving no less than thirty (30) days' prior written notice thereof to Tenant, and upon the passage of time specified in such notice, this Lease and all rights of Tenant hereunder shall terminate as fully and completely and with the same effect as if such date were the date herein fixed for expiration of the Term and Tenant shall remain liable as provided in Section 13.02(c). (b) Eviction. Landlord shall have the immediate right upon Termination of this Lease to bring an action for forcible entry and detainer. (c) Tenant to Remain Liable. No termination of this Lease pursuant to Section 11.02(a), by operation of law or otherwise, and no repossession of the Leased Premises or any part thereof pursuant to Section 13.02(b) or otherwise shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such termination, repossession or reletting. (d) Damages. In the event of any termination of this Lease or eviction from or repossession of the Leased Premises or any part thereof by reason of the occurrence of an Event of Default: (i) Rent and Charges. Tenant shall pay to Landlord the Rent and other sums and charges required to be paid by Tenant for the period to and including the end of the Term or expiration of an option period as provided for by Section 3.02 herein, whichever is later. (e) Rights Cumulative, Non -Waiver. No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy, and each and every right and remedy shall be cumulative and in addition to any other right or Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 54 of 85 remedy given hereunder or now or hereafter existing at law or in equity or by statute. In addition to the other remedies provided in this Lease, Landlord shall be entitled, to the extent permitted by applicable law, to injunctive relief in case of the violation, or attempted or threatened violation, of any of the covenants, agreements, conditions or provisions of this Lease, or to a decree compelling performance of this Lease, or to any other remedy allowed to Landlord at law or in equity. (f) Landlord's Right to Cure. If Tenant fails to pay any utilities charges described in Article IV, insurance premiums described in Article Vill, the cost of any of the repairs or maintenance required to be made by Tenant pursuant to the Lease or any other charges, costs or expenses required to be paid under the Lease, Landlord shall have the right, but not the obligation, to make all such payments, and in addition to its other remedies under this Article XI, Landlord shall have the option of requiring Tenant to repay to Landlord the amount of such payments (which shall be deemed additional rent hereunder) on demand with interest after demand at 10% rate per annum. (the "Default Rate"). (g) Late Charge, Default Rate. If Landlord does not receive payment of any installment of Rent or any other sum or charge required to be paid by Tenant to Landlord hereunder within ten (10) days after the same falls due (regardless of whether Tenant has received notice of the delinquency), Landlord may impose a late charge equal to five percent (5%) of the amount of such delinquent sum and if such sum is not received by Landlord within thirty (30) days of its due date, such sum shall, in addition, bear interest at the Default Rate from the due date until the date paid. (h) Landlord's Lien. Landlord shall have a lien against Tenant's leasehold estate, Tenant's Improvements and all property of Tenant located at the Leased Premises, to secure any obligations of Tenant to Landlord arising pursuant to the provisions of this Lease. 11.03 No Implied Waver. The failure of Landlord to insist upon strict performance of any of the covenants or conditions of the Lease, or to exercise any options herein conferred in any one or more instances shall not be construed as a waiver or relinquishment for the future of any such covenant, condition, or option, but the same shall be and remain in full force and effect. The receipt by Landlord of any Rent or any other sum payable hereunder with knowledge of the breach of any covenants or agreements contained herein shall not be deemed a waiver of such breach. ARTICLE XII ABANDONMENT 12.01 Abandonment. Tenant shall not vacate or abandon the Leased Premises at any time during the Term of this Lease. If Tenant shall vacate or abandon the Leased Premises, the right of possession shall, at the option of Landlord, revert to Landlord and Tenant shall lose ail right to possession of the Leased Premises and Tenant's Improvements; however, Tenant shall otherwise remain liable on this Lease. Landlord shall then, without further notice, have the remedies provided for in Article XIII herein. ARTICLE XIII 13.01 Definitions. As used in this Lease, the phrase "Environmental Condition" shall mean: (a) any adverse condition relating to surface water, ground water, drinking water supply, land, surface or subsurface, strata or the ambient air, and includes, without limitation, air, land and water pollutants, noise, vibration, light and odors, or; Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 55 of 85 (b) any condition which may result in a claim of liability under the Comprehensive Environmental Response Compensation and Liability Act, as amended, or the Resource Conversation and Recovery Act, or any claim of violation of the Clean Air Act, the Clean Water Act, the Toxic Substance Control Act, or any claim of liability or of violation under any federal statute hereafter enacted dealing with the protection of the environment, or under any rule, regulation, permit or plan under any of the foregoing, or under any law, rule or regulation now or hereafter promulgated by the state in which the Leased Premises are located, or any political subdivision thereof, relating to such matters (collectively "Environmental Laws'). 13.02 Compliance by Tenant. Tenant shall, at all times during the Term, comply with all Environmental Laws applicable to the Leased Premises and shall not, in the use and occupancy of the Leased Premises, cause or contribute to, or permit or suffer any other party to cause or contribute to any Environmental Condition. 13.03 Tenant's Indemnity. Tenant will protect, indemnify and save harmless the Landlord, City of Iowa City, the partners of the Landlord, and all of the foregoing's respective partners, agents and employees (collectively "Landlord's Indemnitees"), from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) of whatever kind or nature, contingent or otherwise, known or unknown, incurred or imposed, based upon any Environmental Laws or resulting from any Environmental Condition occurring or contributed to during the term of this Lease. In case any action, suit or proceeding is brought against any of the parties indemnified herein by reason of any occurrence described in this Section 13.03, Tenant will, at Tenant's expense, by counsel reasonably approved by Landlord, resist and defend such action, suit or proceeding, or cause the same to be resisted and defended. ARTICLE XIV TENANT'S INDEMNIFICATION 14.01 Generally. To the extent not expressly prohibited by law, Tenant agrees to indemnify, save, protect and hold forever harmless, Landlord, and all of Landlord's Indemnitees as defined in Section 13.03 hereinabove, from and against all losses, damages, costs, claims and liabilities, including, without limitation, court costs and reasonable attorney's fees and expenses, which Landlord's Indemnitees, or any of them, may become liable or obligated by reason of, resulting from or in connection with: (a) any injury to or death of persons and damage to, or theft, misappropriation or loss of property occurring in or about the Leased Premises or the Property arising from Tenant's use and occupancy of the Leased Premises and/or the conduct of its business; (b) any activity, work or thing done, permitted or suffered by Tenant in or about the Leased Premises, including all liabilities of every kind or description which may arise out of or in connection therewith; and (c) any breach or default on the part of Tenant in the payment or performance of any covenant, agreement or obligation on the part of Tenant to be paid or performed pursuant to the terms of this Lease or any other act or omission of Tenant, its agents or employees. In case of any action or proceeding brought against Landlord's Indemnitees, or any of them, by reason of any such claims, Tenant covenants to defend such action or proceeding by counsel reasonably satisfactory to Landlord and/or any particular Landlord's Indemnitee. ARTICLE XV MISCELLANEOUS PROVISIONS 15.01 Access by Landlord. (a) Landlord or Landlord's agents, representatives or employees shall have the right at any time upon at least twenty-four (24) hours oral notice (except in emergencies, in which case only such notice, if any, as may be feasible under the circumstances shall be required) to enter upon the Leased Premises and Tenant's Improvements for the purposes of inspecting the same, determining whether this Lease is being complied with, curing (as permitted herein) any default by Tenant and showing the Leased Premises to prospective Leasehold Mortgagees. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 56 of 85 (b) Landlord or Landlord's agents, representatives, or employees shall have the right whenever necessary and without notice to enter upon the Leased Premises for the purpose of repairing or maintaining any of Landlord's property adjacent to or abutting the Leased Premises. 15.02 Gender and Number. Words of any gender used in the Lease shall be held to include any other gender, and words in the singular shall be held to include the plural, where required. 15.03 Notices. Notices, statements and other communications to be given under the terms of the Lease shall be in writing and sent by certified or registered mail, or by commercial courier, return receipt requested, and addressed as follows: If to Landlord: Iowa City Airport Commission 1801 S. Riverside Drive Iowa City, Iowa 52246 With Copies to: City Attorney 410 E. Washington St. Iowa City, IA 52240 If to Tenant: Jet Air, Inc. 58 IL Hwy Rt 164 Galesburg, IL 61401 15.04 Applicable Law. The Laws of the State of Iowa shall govern the validity, performance and enforcement of this Lease. 15.05 Partial Invalidity. If any provision of the Lease shall be invalid or unenforceable it shall not affect the validity or enforceability of any other provisions of the Lease. 15.06 Heading. Headings as to the contents of particular sections herein are inserted only for convenience, and are in no way to be construed as a part of the Lease or as a limitation on the scope of the particular section to which they refer. 15.07 Binding Effect. The covenants, conditions and agreements contained in the Lease shall bind, apply to and inure to the benefit of the parties hereto and their respective successors. 15.08 No Partnership. It is expressly understood that Landlord shall not be construed or held to be a partner, joint venturer or associate of Tenant in the conduct of Tenant's business and that the relationship between the parties hereto is and shall at all times remain that of landlord and tenant. 15.09 Holding Over. The Lease shall terminate without further notice at expiration of the Term. Any holding over by Tenant or any party claiming by, through or under Tenant after expiration shall not constitute a renewal or extension or give Tenant any rights in or to the Leased Premises. In the event of any holding over, Landlord may exercise any and all remedies available to it under Article XIII herein or at law or in equity to recover possession of the Leased Premises, and for damages. 15.10 Time is of the Essence. Time is of the essence in this Lease. 15.11 Entire Agreement; Merger. The Lease contains all the agreements and conditions made between the parties hereto with respect to the matters contained herein and may not be modified orally or in any other manner than by an Agreement in writing signed by all the parties hereto or their respective successors. All prior written and oral understandings and agreements shall be deemed to have merged into the Lease and have no further force and effect. 15.12 Counterparts. This Lease may be executed in counterparts, each of which shall be deemed to be an original and all of which shall, when taken together, constitute but one and the same instrument. 15.13 Taxiway Construction. Landlord agrees to extend the south t-hangar taxiway at Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 57 of 85 Landlord's cost east for public use including use by Jet Air, Inc. Tenant acknowledges that Landlord will apply for applicable grant funding for this work and will be subject to certain requirements based on schedule of those grant awards. 15.14 Shared Construction Costs: Landlord agrees to reimburse the Tenant for half (1/2) of the expenses associated with constructing the hangar apron. The Landlord will be responsible for the expense of moving the utility lines outside the building footprint. Tenant shall manage the process of utility relocation at no additional cost to the landlord. Total costs paid by Landlord for construction of the hangar apron and relocation of the utilities shall not exceed $50,000. Apron Size will be approximately 70 feet by 150 feet as depicted in Exhibit A. Utility fees are as established by MidAmerican Energy Co. 15.15 FAA Airspace Studv. Tenant shall request an Obstruction Evaluation I Airport Airspace Analysis (OE/AAA) under CFR Title 14 Part 77. Tenant shall not commence construction activity until said study is returned with a "DETERMINATION OF NO HAZARD TO AIR NAVIGATION" as the study result. ARTICLE XVI FAA PROVISIONS 16.01 Commission Control. The Landlord reserves the right, but shall not be obligated to the Tenant, to maintain and keep in repair the landing area of the Airport and publicly owned facilities of the Airport, without hindrance from the Tenant. The Landlord reserves the right to take action it considers necessary to protect the aerial approaches of the Airport against obstructions. The Tenant shall not act as an agent or represent itself as an agent for the Commission in matters between the Federal Aviation Administration and the Landlord 16.02 Landlord Improvements, The Landlord reserves the right to further develop or improve the landing area and all publicly owned aviation facilities of the Airport as it sees Fit, without interference or hindrance from the Tenant. 16.03 Non-exclusive Right. It is agreed that nothing herein contained shall be construed to grant or to authorize the granting of an exclusive right prohibited by Section 308 of the Federal Aviation Act of 1958, as amended, and the Landlord reserves the right to grant to others the privilege and right of conducting any activity of an aeronautical nature. 16.04 Grant Assurances. This Lease shall be subordinate to the provisions of any outstanding or future agreement between Landlord 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. 16.05 Right of Flight. Tenant acknowledges that the City of Iowa City, Iowa is authorized by law to own and operate the Iowa City Municipal Airport located in Johnson County, Iowa near the Leased Premises. There is hereby reserved to Landlord, 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 Leased Premises herein conveyed, together with the right to cause in said airspace such noise, vibrations, fumes, dust, and particles 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 operating on or about the airport. Tenant foregoes and waives any and all claims for damages, of whatever kind or type, which are reasonably likely to occur in the future as a result of aircraft using the "navigable airspace", as defined by the Federal Aviation Act of 1958 (49 U.S.C.40102 (a) (30)) and regulations promulgated thereunder over and above the Leased Premises, including but not limited to, damages resulting from noise, vibration, fumes, dust and particles. Tenant grants to the Landlord, its successors and assigns, a continuing right to keep the air space above the Airport Imaginary Surfaces as described in Federal Aviation Regulations Part 77 and depicted on the Airport Layout Plan (ALP) clear of any and all fences, Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 58 of 85 crops, trees, poles, building or other obstructions of any kind or nature whatsoever which now extend, or which may any time in the future extend, above said surfaces. Tenant grants the Landlord the right of ingress to, egress from, and passage over the Leased Premises for the purpose of effecting and maintaining such clearance and of removing any and all obstructions which now or may hereafter extend above the Airport Imaginary Surfaces as described in Federal Aviation Regulations Part 77 and depicted in the ALP. 16.06 Additional FAA Provisions. (a) The Tenant for himself, his 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 Lease for a purpose for which i:J Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, Tenant 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) The Tenant, for himself, his personal representative, 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: (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 the 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. (c) Landlord 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 interferences or hindrance. (d) Landlord reserves the right to take any action it considers necessary to protect the serial 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 Landlord would limit the usefulness of the airport or constitute a hazard to aircraft. (e) During time of war or national emergency Landlord 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. (f) It is understood and agreed that the rights granted by this agreement will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance or development of the airport (g) The Lease shall become subordinate to provisions of any existing or future agreement between the Landlord 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. Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 59 of 85 Iowa City Airport Commission By: Chairperson Attest: Secretary City Attorney Approval: City Attorney's Office Jet Air Inc. Date Date Date �l� Da e Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 60 of 85 Commission's Acknowledgement STATE OF IOWA ) ) SS: JOHNSON COUNTY) On this day of 2016, before me personally appeared and to me personally known, who, being by me duly sworn, did say they are the Chairperson and Secretary, respectively, of the Iowa City Airport Commission and that the instrument was signed and sealed on behalf of the Commission, and 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 Tenant's Acknowledgment STATE OF IOWA ) ) SS: JOHNSON COUNTY ) This instrument was acknowledge before me on , 2016 by of Jet Air, Inc., who acknowledged that (s)he is empowered to bind Jet Air to the terms of this Lease. Notary Public in and for said County and State Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 61 of 85 Iowa City Municipal Airport Ground/Hangar Lease Exhibit A Hangar Size: 100ft x 100ft Apron Size: —70ft x —150ft Taxiway Size 35ft x —15Gft Area subject to rental fee: 100ft x 100ft Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 62 of 85 Prepared by: Michael Tharp, Operations Specialist, 1801 S. Riverside Dr. Iowa City, IA 52246 (319) 356 5045 RESOLUTION NO. RESOLUTION AMENDING THE FIXED BASED OPERATORS AGREEMENT AGREEMENT WHEREAS, on November 181, 2001 the Airport Commission of the City of Iowa City entered into a Fixed Base Operators Agreement with Jet Air, Inc., effective January 1st, 2002; and WHEREAS, the original term of said FBO agreement was five years, with Jet Air options for four additional five year terms, for a total potential length of twenty five years; and WHEREAS, Jet Air, Inc. desires to extend that Agreement to cover the term of a new ground lease and Hangar M lease lasting thirty years; and WHEREAS, the Commission agrees such an extension is appropriate and in the best interests of the Airport and the public; BE IT RESOLVED BY THE AIRPORT COMMISSION OF THE CITY OF IOWA CITY: The Chairperson is hereby authorized to sign and the Secretary to attest to the Third Amendment to Fixed Based Operator's Agreement, a copy of which is attached and incorporated herein. Passed and approved this day of 2016. CHAIRPERSON ATTEST: SECRETARY Approved By: �--- �s//,�, City Attorney's Office It was moved by and seconded by Resolution be adopted, and upon roll call there were: Ayes Nays Absent Bockenstedt Gardinier Libby Odgaard Ogren the Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 Page 63 of 85 THIRD AMENDMENT TO FIXED BASED OPERATOR'S AGREEMENT WHEREAS, on November 1, 2001, the Iowa City Airport Commission (Commission) and Jet Air, Inc. (Jet Air) entered into a contract entitled "Iowa City Municipal Airport Fixed Base Operator's Agreement" (FBO Agreement) for lease of space at the Iowa City Municipal Airport including all non-public areas of the first floor of Building "E," the airport terminal building;' WHEREAS, the agreement has previously been amended on two occasions; and WHEREAS, the parties wish to amend the number of additional option periods. IT IS THEREFORE AGREED that; 1. Paragraph 1 Term is hereby amended as follows: The sentence "JA is granted an option to lease the premises for up to four (4) additional five (5) year terms." is deleted and the sentence "JA is granted an option to lease the premises for up to eight (8) additional five (5) year terms" is inserted in its place. All other terms and provisions of the FBO Agreement, not inconsistent with this amendment, remain in full force and effect. IOWA CITY AIRPORT COMMISSION BY Chairperson Approved by: City Attorney's Office JET AIR, INC. BY t/f Matthew Wolford, General Manager Date Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 18 9n18 08/15/2016 15:53 (CITY OF IOWA CITY IP 1 mtharp INVOICE LIST BY GL ACCOUNT apinvgla YEAR/PERIOD: 2017/1 TO 2017/1 ACCOUNT/VENDOR INVOICE PO YEAR/PR TYP S 76850110 Airport Operations 7600-70-70-850-850100-850110-000-0000-438030- Electricity 010319 MIDAMERICAN ENERGY 20160726091244 2017 1 DIR P ACCOUNT TOTAL 7600-70-70-850-850100-850110-000-0000-438070- Heating Fuel/Gas 010319 MIDAMERICAN ENERGY 20160726091244 2017 1 DIR P ACCOUNT TOTAL 7600-70-70-850-850100-850110-000-0000-438100- Refuse Collection Charges 010507 JOHNSON COUNTY REFUS 87902 2017 1 INV P 010507 JOHNSON COUNTY REFUS 87905 2017 1 INV P ACCOUNT TOTAL 7600-70-70-850-850100-850110-000-0000-438110- Local Phone Service 011937 AUREON COMMUNICATION 0789004025.2016.07 2017 1 INV P ACCOUNT TOTAL WARRANT CHECK DESCRIPTION 1,815.37 W072616 1,815.37 33.39 W072616 33.39 165.00 080516 30.00 080516 195.00 195.00 85.80 072916 85.80 325 MidAmBilling 072620 325 MidAmBilling 072620 161983 Refuse & Recycling 161983 Refuse & Recycling 161617 JUL 2016 INV 7600-70-70-850-850100-850110-000-0000-442010- Other Building R&M Services 010856 JET AIR INC IOW IVI-16-002273 2017 1 INV P 600.00 072216 160985 Janitorial Servies ACCOUNT TOTAL 600.00 7600-70-70-850-850100-850110-000-0000-445030- Nursery Srvc-Lawn & Plant Care 010856 JET AIR INC IOW IVI-16-002274 2017 1 INV P 4,500.00 072216 160985 Groundskeeping/Main ACCOUNT TOTAL 4,500.00 ORG 76850110 TOTAL 7,229.56 FUND 7600 Airport TOTAL: 7,229.56 ** END OF REPORT - Generated by Michael Tharp ** Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 18 9n18 08/15/2016 15:54 (CITY OF IONA CITY IP 1 mtharp YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations 382100 Land Rental 850110 Airport Operations 76850110 382100 Land Rental 07/07/16 CRP 778119 FINA 07/27/16 GBI 103098 07/27/16 GBI 103098 07/27/16 GBI 103098 07/27/16 GBM 07/27/16 GBM 07/27/16 GBM 07/27/16 GBI 103098 07/27/16 GBI 104843 382200 Building/Room Rental 850110 Airport Operations 76850110 382200 Building/Room Rent 07/08/16 CRP 778166 FINA 07/08/16 CRP 778166 FINA 07/26/16 GBM 07/26/16 GBI 314170 07/27/16 GBI 314170 07/27/16 GBI 405558 07/27/16 GBI 405441 07/27/16 GBI 319397 07/27/16 GBI 403578 07/27/16 GBI 400467 07/27/16 GBI 400059 07/27/16 GBI 400246 07/27/16 GBI 100686 07/27/16 GBI 105947 07/27/16 GBI 105183 07/27/16 GBI 105172 07/27/16 GBI 104275 07/27/16 GBI 104090 07/27/16 GBI 104090 07/27/16 GBI 104090 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED -48,000 -275,000 0-48,000-1,276.15 .00-46,723.85 2.7% -368.75 US TREASURY -48.53 LAND RENT - JUN 2016 -48.53 LAND RENT - JUL 2016 -48.53 LAND RENT - AUG 2016 48.53 GB INVOICES 48.53 GB INVOICES 48.53 GB INVOICES -582.40 LAND RENT -325.00 LAND RENT 0-275,000-21,924.33 -125.33 -125.33 151.00 -151.00 -151.00 -144.00 -144.00 -358.00 -110.00 -179.00 -151.00 -144.00 -210.00 -179.00 -151.00 -179.00 -144.00 -4,287.00 -106.67 -144.00 00-253,075.67 VALLEY COLLECTION SERV VALLEY COLLECTION SERV GB INVOICES Hangar Rent #11 - July HANGAR #11 Hangar #2 Hangar #7 HANGAR #33 Office Rent (Bldg G) Hangar Rent #41 HANGAR #15 HANGAR #5 HANGAR #57 HANGAR #38 HANGAR #27 HANGAR #48 HANGAR #8 D, E, F, H GROUND LEASE HANGAR #1 8.0% Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 12 9n1R 08/15/2016 15:54 (CITY OF IONA CITY IP 2 mtharp YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 FOR 2017 01 JOURNAL DETAIL 2017 1 TO 2017 1 ACCOUNTS FOR: ORIGINAL TRANFRS/ REVISED AVAILABLE PCT 76850110 Airport Operations APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 07/27/16 GBI 104090 -185.00 HANGAR #59 07/27/16 GBI 104090 -185.00 HANGAR #60 07/27/16 GBI 104090 -650.00 HANGAR #72 07/27/16 GBI 103824 -179.00 HANGAR #51 07/27/16 GBI 103759 -151.00 HANGAR #13 07/27/16 GBI 103636 -179.00 HANGAR #47 07/27/16 GBI 103584 -179.00 HANGAR #42 07/27/16 GBI 103583 -4,392.00 HANGAR #35 07/27/16 GBI 103583 -652.00 HANGAR #32 07/27/16 GBI 103574 -144.00 HANGAR #9 07/27/16 GBI 103503 -310.00 HANGAR #34 07/27/16 GBI 103319 -179.00 HANGAR #53 07/27/16 GBI 103098 -332.00 HANGAR #56 07/27/16 GBI 103078 -151.00 HANGAR #16 07/27/16 GBI 103026 -151.00 HANGAR #19 07/27/16 GBI 102700 -151.00 HANGAR #14 07/27/16 GBI 102618 -179.00 HANGAR #40 07/27/16 GBI 102617 -210.00 HANGAR #58 07/27/16 GBI 102612 -243.00 HANGAR #61 07/27/16 GBI 102608 -217.00 HANGAR #55 07/27/16 GBI 102608 -650.00 HANGAR #71 07/27/16 GBI 102606 -185.00 HANGAR #63 07/27/16 GBI 102603 -217.00 HANGAR #46 07/27/16 GBI 102601 -179.00 HANGAR #49 07/27/16 GBI 102597 -179.00 HANGAR #36 07/27/16 GBI 102597 -179.00 HANGAR #37 07/27/16 GBI 102596 -217.00 HANGAR #45 07/27/16 GBI 102592 -151.00 HANGAR #25 07/27/16 GBI 102592 -179.00 HANGAR #44 07/27/16 GBI 102592 -179.00 HANGAR #50 07/27/16 GBI 102592 -151.00 HANGAR #28 07/27/16 GBI 102586 -151.00 HANGAR #17 07/27/16 GBI 102580 -144.00 HANGAR #6 07/27/16 GBI 102580 -151.00 HANGAR #30 07/27/16 GBI 102578 -151.00 HANGAR #22 07/27/16 GBI 102575 -185.00 HANGAR #62 07/27/16 GBI 102466 -151.00 HANGAR #24 07/27/16 GBI 102090 -179.00 HANGAR #43 07/27/16 GBI 101765 -151.00 HANGAR #23 07/27/16 GBI 101403 -151.00 HARNGAR #21 07/27/16 GBI 101368 -204.00 HANGAR #64 07/27/16 GBI 101069 -144.00 HANGAR #10 07/27/16 GBI 101069 -404.00 HANGAR #31 07/27/16 GBI 100798 -75.50 HANGAR #18 07/27/16 GBI 100701 -75.50 HANGAR #18 07/27/16 GBI 100685 -179.00 HANGAR #39 07/27/16 GBI 100474 -151.00 HANGAR #12 Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 12 9n1R 08/15/2016 15:54 OF IOWA CITY 3 mtharp (CITY YEAR-TO-DATE BUDGET REPORT IP glytdbud JULY 1, 2016 - JULY 31, 2016 FOR 2017 01 JOURNAL DETAIL 2017 1 TO 2017 1 ACCOUNTS FOR: ORIGINAL TRANFRS/ REVISED AVAILABLE PCT 76850110 Airport Operations APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 76850110 382200 Building/Room Rent 07/27/16 GBI 100389 07/27/16 GBI 100354 07/27/16 GBI 100353 07/27/16 GBI 100111 07/27/16 GBI 100061 384900 Other Commissions 850110 Airport Operations 76850110 384900 Other Commissions 07/19/16CRP 770528 REVE 393120 General Levy 850110 Airport Operations 76850110 393120 General Lev 07/31/16 GEN 070909 REJE#2 411000 Perm Full Time 850110 Airport Operations 76850110 411000 Perm Full Time 07/08/16 PRJ 1070216 070216 07/22/16 PRJ 1071616 071616 -36.500 -113,209 58.614 -151.00 HANGAR #26 -100.00 OFFICE SPACE RENT -151.00 HANGAR #29 -179.00 HANGAR #54 -179.00 HANGAR #52 0-36,500-2,351.50 .00-34,148.50 6.4% -2,351.50 EASTERN AVIATION FUELS 0-113,209-9,434.12 .00-103,774.88 8.3% -9,434.12 Ptax from Gen Fund 0 58,614 4,412.00 .00 54,202.00 7.5% 2,180.00 WARRANT=070216 RUN-1 2,232.00 WARRANT=071616 RUN-1 Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 18 9n18 08/15/2016 15:54 OF IOWA CITY 4 mtharp (CITY YEAR-TO-DATE BUDGET REPORT IP glytdbud JULY 1, 2016 - JULY 31, 2016 FOR 2017 01 JOURNAL DETAIL 2017 1 TO 2017 1 ACCOUNTS FOR: ORIGINAL TRANFRS/ REVISED AVAILABLE PCT 76850110 Airport Operations APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 413000 Temporary Employees 850110 Airport Operations 76850110 413000 Temporary Employee 07/22/16 PRJ 1071616 071616 414500 Longevity Pay 850110 Airport Operations 76850110 414500 Longevity Pay 421100 Health Insurance 850110 Airport Operations 76850110 421100 Health Insurance 07/08/16 PRJ 1070216 070216 07/22/16 PRJ 1071616 071616 421200 Dental Insurance 850110 Airport Operations 76850110 421200 Dental Insurance 07/08/16 PRJ 1070216 070216 07/22/16 PRJ 1071616 071616 500 500 5,227 338 0 500 56.25 .00 443.75 11.3% 56.25 WARRANT-071616 RUN-1 0 Soo .00 .00 500.00 .0% 0 5,227 420.88 210.44 210.44 0 338 28.48 14.24 14.24 .00 4,806.12 8.1% WARRANT-070216 RUN-1 WARRANT-071616 RUN-1 .00 309.52 8.4% WARRANT-070216 RUN-1 WARRANT-071616 RUN-1 Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 12 9n1R 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations (CITY OF IOWA CITY YEAR-TO-DATE BUDGET REPORT JULY 1, 2016 - ORIGINAL TRANFRS/ APPROP ADJSTMTS JULY 31, 2016 REVISED BUDGET YTD ACTUAL JOURNAL DETAIL ENCUMBRANCES IP 2017 1 TO AVAILABLE BUDGET 5 glytdbud 2017 1 PCT USED 421300 Life Insurance 850110 Airport Operations 76850110 421300 Life Insurance 145 0 145 12.10 .00 132.90 8.3% 07/22/16 PRJ 1071616 071616 12.10 WARRANT-071616 RUN-1 421400 Disability Insurance 850110 Airport Operations 76850110 421400 Disability Insuran 252 0 252 20.79 .00 231.21 8.3% 07/22/16 PRJ 1071616 071616 20.79 WARRANT-071616 RUN-1 422100 FICA 850110 Airport Operations 76850110 422100 FICA 4,514 0 4,514 338.06 .00 4,175.94 7.5% 07/08/16 PRJ 1070216 070216 164.86 WARRANT-070216 RUN-1 07/22/16 PRJ 1071616 071616 173.20 WARRANT-071616 RUN-1 423100 IPERS 850110 Airport Operations 76850110 423100 IPERS 5,324 0 5,324 399.01 .00 4,924.99 7.5% 07/08/16 PRJ 1070216 070216 194.67 WARRANT-070216 RUN-1 07/22/16 PRJ 1071616 071616 204.34 WARRANT-071616 RUN-1 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 6 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 431020 Court Costs & Services 850110 Airport Operations 76850110 431020 Court Costs & Sery 110 0 110 .00 .00 110.00 .0% 432020 Annual Audit 850110 Airport Operations 76850110 432020 Annual Audit 552 0 552 .00 .00 552.00 .0% 436030 Transportation 850110 Airport Operations 76850110 436030 Transportation 1,000 0 1,000 .00 .00 1,000.00 .0% 436050 Registration 850110 Airport Operations 76850110 436050 Registration 1,000 0 1,000 .00 .00 1,000.00 .0% 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 7 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 436060 Lodging 850110 Airport Operations 76850110 436060 Lodging 500 0 500 .00 .00 500.00 .0% 436080 Meals 850110 Airport Operations 76850110 436080 Meals 200 0 200 .00 .00 200.00 .0% 437010 Comp Liability Insurance 850110 Airport Operations 76850110 437010 Comp Liability Ins 22,886 0 22,886 .00 .00 22,886.00 .0% 437020 Fire & Casualty Insurance 850110 Airport Operations 76850110 437020 Fire & Casualty In 12,524 0 12,524 .00 .00 12,524.00 .0% 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IOWA CITY P 8 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 437030 Worker's Comp Insurance 850110 Airport Operations 76850110 437030 Worker's Comp Insu 159 0 159 .00 .00 159.00 .0% 437041 Bonding & Other Insurance 850110 Airport Operations 76850110 437041 Bonding & Other In 875 0 875 .00 .00 875.00 .0% 437200 Loss Reserve Payment 850110 Airport Operations 76850110 437200 Loss Reserve Pavme 5,000 0 5,000 .00 .00 5,000.00 .0% 438010 Stormwater Utility Charges 850110 Airport Operations 76850110 438010 Stormwater Utilit 14,911 0 14,911 1,577.72 .00 13,333.28 10.6% 07/20/16UBB C-160720160720 1,577.72 Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 18 9n18 08/15/2016 15:54 (CITY OF IONA CITY IP 9 mtharp YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations 438030 Electricity 850110 Airport Operations 76850110 438030 Electricity 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/31/16 GNI REVERSAL KD 438050 Landfill Use 850110 Airport Operations 76850110 438050 Landfill Use 438070 Heating Fuel/Gas 850110 Airport Operations 76850110 438070 Heating Fuel/Gas 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/26/16API VCH IN20160726091244 07/31/16 GNI REVERSAL KD ORIGINAL TRANFRS/ REVISED APPROP ADJSTMTS BUDGET 20.198 83 4,227 0 20.198 0 83 0 4,227 JOURNAL DETAIL 2017 1 TO 2017 1 AVAILABLE PCT YTD ACTUAL ENCUMBRANCES BUDGET USED 410.83 441.74 14.90 .39 1,126.45 .39 .39 32.23 198.88 -1,404.54 M 6.64 10.00 13.39 10.00 -26.75 00 19,787.17 2.0% MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICANJULYPAYMENT 00 83.00 .0% 00 4,220.36 .2% MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICAN E#325 MIDAMERICANJULYPAYMENT Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 12 9n1R 08/15/2016 15:54 (CITY OF IOWA CITY mtharp YEAR-TO-DATE BUDGET REPORT JULY 1, 2016 - FOR 2017 01 ACCOUNTS FOR: ORIGINAL TRANFRS/ 76850110 Airport Operations APPROP ADJSTMTS JULY 31, 2016 REVISED BUDGET YTD ACTUAL JOURNAL DETAIL ENCUMBRANCES IP 10 glytdbud 2017 1 TO 2017 1 AVAILABLE PCT BUDGET USED 438080 Sewer Utility Charge 850110 Airport Operations 76850110 438080 Sewer Utility Char 1,881 0 1,881 181.20 .00 1,699.80 9.6% 07/20/16UBB C-160720160720 181.20 438090 Water Utility Charge 850110 Airport Operations 76850110 438090 Water Utility Char 1,984 0 1,984 192.49 .00 1,791.51 9.7% 07/20/16UBB C-160720160720 192.49 438100 Refuse Collection Charges 850110 Airport Operations 76850110 438100 Refuse Collection 1,363 0 1,363 195.00 .00 1,168.00 14.3% 07/27/16API VCH IN87902 165.00 JOHNSON COUNT#161983 07/27/16API VCH IN87905 30.00 JOHNSON COUNT#161983 438110 Local Phone Service 850110 Airport Operations 76850110 438110 Local Phone Servic 1,322 0 1,322 85.80 .00 1,236.20 6.5% 07/18/16API VCH IN0789004025.2016.07 85.80 AUREON COMMUN#161617 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 11 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 438120 Long Distance Service 850110 Airport Operations 76850110 438120 Long Distance Sery 0 0 0 8.89 .00 -8.89 100.0% 07/31/16 GNI ISICHARGEKD 8.89 CH JUL LONG DIST CHGBK 442010 Other Building R&M Services 850110 Airport Operations 76850110 442010 Other Building R&M 14,069 0 14,069 600.00 .00 13,469.00 4.3% 07/11/16API VCH INIVI-16-002273 600.00 JET AIR INC I#160985 442020 Structure R&M Services 850110 Airport Operations 76850110 442020 Structure R&M Sery 621 0 621 .00 .00 621.00 .0% 442030 Heating Equipment R&M Services 850110 Airport Operations 76850110 442030 Heating Equipment 3,000 0 3,000 .00 .00 3,000.00 .0% 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 12 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 442040 Cooling Equipment R&M Services 850110 Airport Operations 76850110 442040 Cooling Equipment 1,083 0 1,083 .00 .00 1,083.00 .0% 442060 Electrical & Plumbing R&M Srvc 850110 Airport Operations 76850110 442060 Electrical & Plumb 4,459 0 4,459 .00 .00 4,459.00 .0% 442070 Bldg Pest Control Services 850110 Airport Operations 76850110 442070 Bldg Pest Control 242 0 242 .00 .00 242.00 .0% 443080 Other Equipment R&M Services 850110 Airport Operations 76850110 443080 Other Equipment R& 6,997 0 6,997 .00 .00 6,997.00 .0% Airport Commission Agenda & Info Packet 08/15/2016 15:54 OF IONA CITY 13 mtharp (CITY YEAR-TO-DATE BUDGET REPORT IP glytdbud JULY 1, 2016 - JULY 31, 2016 FOR 2017 01 JOURNAL DETAIL 2017 1 TO 2017 1 ACCOUNTS FOR: ORIGINAL TRANFRS/ REVISED AVAILABLE PCT 76850110 Airport Operations APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 444060 Cable & Electrical R&M Srvcs 850110 Airport Operations 76850110 444060 Cable & Electrical 403 0 403 .00 .00 403.00 .0% 445030 Nursery Srvc-Lawn & Plant Care 850110 Airport Operations 76850110 445030 Nursery Srvc-Lawn 41,529 0 41,529 4,500.00 .00 37,029.00 10.8% 07/11/16API VCH INIVI-16-002274 4,500.00 JET AIR INC I#160985 445080 Snow and Ice Removal 850110 Airport Operations 76850110 445080 Snow and Ice Remov 29,000 0 29,000 .00 .00 29,000.00 .0% 445110 Testing Services 850110 Airport Operations 76850110 445110 Testing Services 2,000 0 2,000 .00 .00 2,000.00 .0% 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 14 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 446100 City Attorney Chargeback 850110 Airport Operations 76850110 446100 City Attorney Char 446120 ITS-Server/Storage Chgbk 850110 Airport Operations 76850110 446120 ITS-Server/Storage 07/31/16 GNI July 2016KD 446130 ITS-PC/Peripheral/Tablet S/R 850110 Airport Operations 76850110 446130 ITS-PC/Peripheral/ 446140 ITS -Capital Replacement Chgbk 850110 Airport Operations 76850110 446140 ITS-Canital Renlac 07/01/16 GNI 31-JUL-I6KD 6.465 216 0 6.465 MIS 0 216 9.72 9.72 6,909 0 6,909 .00 0 0 0 983.10 983.10 00 6.465.00 .0% .00 206.28 4.5% Storage of Email 00 6,908.76 .0% .00-983.10 100.0% JUL ITS Repl Chgbk 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 15 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 446160 ITS -Infrastructure Fee 850110 Airport Operations 76850110 446160 ITS-Infrastucture 8,761 0 8,761 .00 .00 8,761.00 .0% 446190 ITS -Software SAAS Chgbk 850110 Airport Operations 76850110 446190 ITS -Software SAAS 216 0 216 .00 .00 216.00 .Oo 446220 Phone Service Chargeback 850110 Airport Operations 76850110 446220 Phone Service Char 800 0 800 .00 .00 800.00 .0% 446300 Phone Equipment/Line Chgbk 850110 Airport Operations 76850110 446300 Phone Equipment/Li 1,378 0 1,378 112.50 .00 1,265.74 8.2% 07/31/16 GNI ISICHARGEKD 112.50 CH JUL PHON EQUIP CHGB 446320 Mail Chargeback 850110 Airport Operations Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 12 9n1R 08/15/2016 15:54 OF IONA CITY 16 mtharp (CITY YEAR-TO-DATE BUDGET REPORT IP glytdbud JULY 1, 2016 - JULY 31, 2016 FOR 2017 01 JOURNAL DETAIL 2017 1 TO 2017 1 ACCOUNTS FOR: ORIGINAL TRANFRS/ REVISED AVAILABLE PCT 76850110 Airport Operations APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 76850110 446320 Mail Chargeback 200 0 200 .00 446350 City Vehicle Replacement Chgbk 850110 Airport Operations 76850110 446350 City Vehicle Repla 18,244 0 18,244 1,817.79 07/31/16 GNI EQUIPMENTHBKEQ 1,817.79 446360 City Vehicle Rental Chargeback 850110 Airport Operations 76850110 446360 City Vehicle Renta 272 0 272 .00 446370 Fuel Chargeback 850110 Airport Operations 76850110 446370 Fuel Chargeback 5,258 0 5,258 329.89 07/31/16 GNI EQUIPMENTHBKEQ 329.89 446380 Vehicle R&M Chargeback 850110 Airport Operations 76850110 446380 Vehicle R&M Charge 27,733 0 27,733 510.87 00 200.00 .0% .00 16,426.21 10.0% JUL REPLACEMENT COST 00 272.00 .0% .00 4,928.11 6.3% JUL DIVISION FUEL 00 27.222.13 1.8% 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 17 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 07/31/16 GNI EQUIPMENTHBKEQ 449055 Permitting Fees 850110 Airport Operations 76850110 449055 Permitting Fees 449060 Dues & Memberships 850110 Airport Operations 76850110 449060 Dues & Memberships 452010 Office Supplies 850110 Airport Operations 76850110 452010 Office Supplies 452040 Sanitation & Indust Supplies 850110 Airport Operations 76850110 452040 Sanitation & Indus 510.87 JUL DIVISION SERVICE 440 0 440 .00 .00 440.00 .0% 1,185 0 1,185 .00 .00 1,185.00 .0% 357 0 357 .00 .00 357.00 .0% 131 0 131 .00 .00 131.00 .0% 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 18 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 455120 Misc Computer Hardware 850110 Airport Operations 76850110 455120 Misc Computer Hard 193 0 193 .00 .00 193.00 .0% 461040 Other Agriculture Chemicals 850110 Airport Operations 76850110 461040 Other Agriculture 336 0 336 .00 .00 336.00 .0% 466050 Electrical Supplies 850110 Airport Operations 76850110 466050 Electrical Supplie 445 0 445 .00 .00 445.00 .0% 466070 Other Maintenance Supplies 850110 Airport Operations 76850110 466070 Other Maintenance 583 0 583 .00 .00 583.00 .0% 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations Airport Commission Agenda & Info Packet Meeting Date: August 18, 2016 CITY OF IONA CITY P 19 YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 JOURNAL DETAIL 2017 1 TO 2017 1 ORIGINAL TRANFRS/ REVISED AVAILABLE PCT APPROP ADJSTMTS BUDGET YTD ACTUAL ENCUMBRANCES BUDGET USED 467020 Equipment R&M Supplies 850110 Airport Operations 76850110 467020 Equipment R&M Supp 1,377 0 1,377 .00 .00 1,377.00 .0% 468030 Asphalt 850110 Airport Operations 76850110 468030 Asphalt 155 0 155 .00 .00 155.00 .0% 469040 Traffic Cntrl Imprvmt Supplies 850110 Airport Operations 76850110 469040 Traffic Cntrl Impr 169 0 169 .00 .00 169.00 .0% 469190 Minor Equipment 850110 Airport Operations 76850110 469190 Minor Equipment 570 0 570 .00 .00 570.00 .0% Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 12 9n1R 08/15/2016 15:54 mtharp FOR 2017 01 ACCOUNTS FOR: 76850110 Airport Operations (CITY OF IONA CITY YEAR-TO-DATE BUDGET REPORT JULY 1, 2016 - ORIGINAL TRANFRS/ APPROP ADJSTMTS JULY 31, 2016 REVISED BUDGET YTD ACTUAL JOURNAL DETAIL ENCUMBRANCES IP 2017 1 TO AVAILABLE BUDGET 20 glytdbud 2017 1 PCT USED 469200 Tools 850110 Airport Operations 76850110 469200 Tools 400 0 400 .00 .00 400.00 .0% 469260 Fire Ext & Refills 850110 Airport Operations 76850110 469260 Fire Ext & Refills 324 0 324 .00 .00 324.00 .0% 473020 Non -Contracted Improvements 850110 Airport Operations 76850110 473020 Non -Contracted Imp 20,000 0 20,000 .00 .00 20,000.00 .0% TOTAL Airport Operations -100,000 0 -100,000 -17,776.09 .00 -82,223.91 17.8% TOTAL REVENUES -472,709 0 -472,709 -34,986.10 .00 -437,722.90 TOTAL EXPENSES 372.709 0 372.709 17.210.01 .00 355.498.99 Airport Commission Agenda & Info Packet nneeflnn na}eAiiniicf 12 9n1R 08/15/2016 15:54 (CITY OF IONA CITY IP 21 mtharp YEAR-TO-DATE BUDGET REPORT glytdbud JULY 1, 2016 - JULY 31, 2016 FOR 2017 01 ORIGINAL TRANFRS/ REVISED APPROP ADJSTMTS BUDGET JOURNAL DETAIL 2017 1 TO 2017 1 AVAILABLE PCT YTD ACTUAL ENCUMBRANCES BUDGET USED GRAND TOTAL-100,000 0-100,000-17,776.09 .00-82,223.91 17.8% ** END OF REPORT - Generated by Michael Tharp **