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HomeMy WebLinkAbout06-12-2003 Airport Commission RECREATED FROM COMMISSION MEMBER MEETING PACKET Item : C710--e_ ,2 , 2_c3 � �2����n j rParket e a , . M IOWA CITY AIRPORT COMMISSION _ l AIRPORT TERMINAL BUILDING 1801 S. RIVERSIDE DRIVE 11\I THURSDAY, JUNE 12, 2003—5:45 P.M. Iii I. Determine Quorum II. Changes/Amendments to Minutes of the May 6, 2003 meeting III. Payment of Expenditures IV. Public Discussion–Items Not on Agenda V. Items for Discussion/Action: — a. Aviation Commerce Park(ACP)y 1. Iowa Realty June report 2. Other issues b. Hangar#31 lease Environmental Assessment(consultant-H.R. Green Co.) Strategy/business plan project(consultant ABS) LibObstruction mitigation project(consultantStanley Engineering) i b United hangar disposition g. FY 2004 budget update VI. Chairperson's Report VII. Commission Members' Reports VIII. Administrative Report IX. Set Next Regular Meeting for July 15, 2003 at 5:45 p.m. X. Adjournment . .,a.doc ?0 J,._r&e_ (a 1a°O: • Agenda summary- 12 June 2003 a. Aviation Commerce Park-Tracy Overton will present his monthly marketing report to the Commission. b. Hangar#31 lease-Harry Hinckley,the tenant for hangar#31,addressed the Commission at the public discussion part of the May meeting,concerning what he considered faults with his proposed lease. The Commission invited him to the June meeting to discuss this as an agenda item. Three leases are included in the Commission information. c. Environmental Assessment—Information has been sent to the FAA for review. The FAA had comments on the EA. H.R. Green is addressing the comments from the FAA. Someone from H.R.Green will be at the meeting to answer any questions the Commission may have about the project. d. Strategy/business plan-Michael Hodges,from Airport Business Solutions,was in Iowa City on May 5—May 7 to meet with the Council and Commission and to gather information.The initial draft is due from ABS on July 7. Randy Bisgard will be in Iowa City for the June Commission meeting. The Commission should schedule a work session with the Council in July or August to discuss the plan. e. Obstruction removal project—Stanley Consultants have met with several owners of property where there are obstructions. Stanley will report on their progress at the meeting. f. United hangar disposition—The Commission wanted to discuss a plan of action for removing the United hangar from its current location. It is considered an obstruction to Runway 25. Funding to renovate or demolish the building will be discussed. g. The State government has reduced the amount of funding it is returning to the cities. The FY 2004,which was filed with the State in March,will be affected and the Council and City staff are trying to determine how to balance the budget. All departments will be impacted. The Commission will review the Airport budget. MINUTES IOWA CITY AIRPORT COMMISSION TUESDAY,MAY 6.2003—4:00 P.M. IOWA CITY AIRPORT TERMINAL MEMBERS PRESENT: Michelle Robnett, Alan Ellis,Randy Hartwig,Rick Mascari STAFF PRESENT: Sue Dulek,Ron O'Neil CALL TO ORDER: Chairperson Ellis called the meeting to order at 4:02 p.m. Ellis said this was the regular monthly Commission meeting that had been moved from the regular time on Thursday,May 8,to accommodate Michael Hodges,from Airport Business Solutions. He said there would not be a meeting on Thursday. APPROVAL OF MINUTES: O'Neil said there were two corrections. The first was under the discussion of the Aviation Commerce Park. At the April meeting,the Commission directed Dulek to file suit against Rob Nichols to recover rent from the parcel he leased in the ACP. The second change concerned the vote for the officers at the March meeting. O'Neil said for the vote for chairperson was 4—0, with Thrower abstaining. For vice-chairperson,the vote was 3—0,with Thrower and Mascari abstaining. After some discussion,the minutes of the April 10,2003,Commission meeting were approved with the corrections. AUTHORIZATION OF EXPENDITURES: Ellis asked about the bill from Hardware Specialists? O'Neil said it was for service doors for Building H. The building was built in 1987 and all five of the service doors were rusting out. Robnett made a motion to pay the bills. Mascari seconded the motion.The motion passed 4 -0, with Thrower being absent. PUBLIC DISCUSSION—ITEMS NOT ON AGENDA: Harry Hinckley,the tenant from Hangar#31,said he had received a lease that was quite different from anything he had received in the past.Hinckley said he has been a tenant at the Airport longer than anyone else has and he did not think the lease was appropriate for a corporate hangar. He said the lease was too vague and general.He said he has been in his office and hangar for 15 years and thinks the previous leases were better than the lease presented to him. Mascari asked what specifically he didn't like? Hinckley said there were several things but he didn't feel he needed to write the lease for the Commission. He said for one thing,after fifteen years,he didn't think a damage deposit was necessary. He had several other suggestions for the Commission on wording changes that would clarify the lease. He said there were two or three things he is permitted to do and thirty or forty things the Commission can do to him. Ellis said the Commission can not discuss this as an agenda item,but if Hinckley was interested, he would put this on the agenda for the next meeting. Hinckley said he would suggest the Commission read the lease the Manager wrote and compare it with this new lease that the Commission wrote. He said the old lease is more appropriate for his hangar space. He said that, as an example,the new lease does not address who pays utilities or that other hangar tenants have to maintain enough heat in the building to keep the water pipes from freezing. Ellis said the Commission developed the lease and solicited public comment. He said this would be on the agenda at the next meeting and asked O'Neil to send the Commission the old lease and the current lease. Mascari invited Hinckley to attend the next meeting. Hinckley said he is not comfortable coming to the Commission meetings. He did not feel he should have to help the Commission write their leases. He suggested the Commission not micro-manage and let the Manager take care of the day to day management. Mascari said the Commission does not micro- manage. He said he used to be involved with the day to day management,but not any more. Robnett said the intention was to create equitable standards. She said the Commission has hired Michael Hodges to help standardize the Airport policies. Hinckley said he would like to review the lease before the next meeting. In other public discussion,Ron Duffe,from Jet Air,said he had put some additional signage on the 100LL fueling station to help direct pilots to it. ITEMS FOR DISCUSSION/ACTION: a. Obstruction mitigation project- Mike Donnelly,from Stanley Engineering,said they have been making contacts with owners of the obstructions. He said they sent out letters and have been making personal follow-up interviews.Ellis asked what would happen if they can not mitigate all of the obstructions? Would the FAA deny them a precision approach? O'Neil said that the FAA could deny giving a precision approach or may even raise the minimums for the Airport. He said the obstruction mitigation is not just to get a precision approach. The obstructions affect the current safety zones. Hartwig said someone had questioned him about some obstructions that seemed to be quite a distance from the Airport. Donnelly said he met with the Public Works Department to discuss obstructions on City property. He said he also discussed the new flagpole on top of the Old Capital dome with the University. They didn't know they were required by the FAA to file for an airspace study. The flagpole will be lighted and the airspace study should let them know what they can do so they will not be in violation of federal airspace. Donnelly said he would be getting a report to O'Neil to discuss the costs of the actual obstruction mitigation. b. Environmental Assessment project—Dick Mum,from H.R.Green,said all drafts had been submitted to the FAA and there had been no response as of yet. He said O'Neil had reviewed the initial report and his suggestions were being incorporated into the report. Blum said all FAA deadlines have been met to stay on track for FAA funding for this year. All the fieldwork has been completed. Ellis asked if the United hangar disposition was included in the EA? Because it is an obstruction,Blum said there were two options for the hangar. One was to move the hangar and the other was to tear it down. Mum said there would be costs associated with refurbishing the hangar if it was moved. Robnett said if a cost benefit analysis showed that it would cost a substantial amount to rehab the building,given the current budget crisis,the 2 building may have to be torn down. She said even if it is restored,the Commission might not be able to afford to keep up the maintenance on the building. Mascari said the only way he would support moving the building is to move it off the Airport. Ellis said he would like to move forward with moving the hangar instead of tearing it down. He said funding might dictate it would be torn down instead of moved. Mascari said that it is important to remember that Airport safety comes first and if the hangar is an obstruction, it can not remain where it is. Ellis said this should be on the agenda for the next meeting for the Commission to decide what they should do with the hangar. Blum said he would develop a working paper to discuss the Commission's options. He will sent that to O'Neil before the next meeting. c. Aviation Commerce Park(ACP)—Overton said he is getting a lot of inquiries,but no one is taking the next step to make an offer. He said he is somewhat surprised,but because of the economy,commercial sales are slow. He said there has been plenty of local publicity. He said he is disappointed in the amount of activity. Mascari asked if Overton was advertising nationally? Overton said they had discussed that at an earlier meeting and decided that the cost of advertising nationally in some of the trade magazines was cost prohibitive. Michael Hodges said there are some trade magazines that the Commission can advertise in without being a member of the organization. Mascari said the Commission needs to get something going on the ACP. He asked Overton what happened to the potential buyer for Lot#17. Overton said the buyer wanted the property at well below market price and has decided to look elsewhere. Overton said the land is not overpriced. He said the property is priced about in the middle of where other similar property is priced. Mascari wanted to know if the Commission could offer any type of fmancing for buyers? He said that could attract the first one or two tenants. Ellis said the value of the property would go up over time. Overton agreed,but said the pricing structure now in place would be realistic for at least the next year. Robnett said the ACP got some free advertising in an article Overton did and she wanted to thank Overton for that. Robnett commented that it was her understanding that the commercial market was extremely flat at this time. Overton said there has not been a lot of commercial activity around the area. He said that sales would just be a function of time. Ellis asked about leasing? Overton said it does not come up very often and he does not think it is something that will be much of an option in the future. Ellis asked what the Commission would think of trading control to the City of enough property to pay off the infrastructure and erase the debt. Then the land that was left could be leased. Mascari asked why would the Commission what to give up control? He would not be in favor of that idea. Mascari said the Commission should set a deadline for sales. Dulek said the Commission does not have a sales contract with Overton. Their contract is for leasing the property. Mascari said that when the contract expires,if Overton has not sold any property,the Commission should recommend the Council hire someone else. Mascari said something has to be done. Hodges and Overton will contact each other to discuss marketing advertising. Hodges said he knows of an airport in California that is similar to the ACP that has through- the-fence access. 3 Overton said the development was planned to have through-the-fence access,but there would be some development cost for the taxiway. Mascari said that the Commission needs someone to get the job done of selling the lots and he expects Overton to get the lots sold. Overton said it is also his responsibility to keep the Commission informed on the realities of the market. Overton said he has invested two years of his time on this project and has not received any compensation. He said he has plenty of motivation sell the property. Mascari said he is livid that nothing has happened and he expects results. Overton said he is on the advisory board for ICAD. He said he is reporting to the Commission what is going on for commercial property throughout the area. The market is flat. O'Neil asked Dulek to provide an update on the Nichols contract. Dulek said she had filed a lawsuit and the papers were served on May I. She said that she had not had a response. If he does not respond within a certain amount of time,he basically loses by default. O'Neil said there was a memo in the packet written by the Director of Finance,explaining what he thought was the debt owed by the Commission. O'Neil recommended the Commission reply to the Mayor in writing,stating their understanding of the Airport debt and what the Commission thought should be repaid. O'Neil said he thought it should be clarified what will be done with the funds from sale or lease of the ACP. Ellis said he would draft a letter to the Mayor. He will have Dulek and O'Neil review the letter. d. Strategy/business plan project—Ellis introduced Michael Hodges from Airport Business Solutions. Hodges said he met the Council last night. He said from meeting with the Council,he was under the impression that the Council wanted something to happen right away. He said the strategy plan is somewhat different than the business part of the plan. He said it would take a little time to gear up. He said ABS will need input from the Commission to see where they have been,what was tried,what has worked,and where the Commission wants to go. Hodges said he was surprised when he first saw the Airport. He said he wasn't sure what he would have to deal with. He said he thought this was a great general aviation airport. It has a tremendous infrastructure. He said even though this is a small community,because this is a University town,there should be more potential for student pilots. Hodges said that ABS will explore every possibility for generating funds from aviation uses. If it is not possible to be self-sufficient,ABS will tell the Commission that. ABS will try to put the Airport on a track to be as self-sufficient as possible. That is a FAA goal. It is not a mandate, it is a goal. ABS will try to minimize the amount of the Airport budget that comes from the General Fund. Hodges said that general aviation airports that are self-sufficient do not become self-sufficient through aviation services alone. Usually only a small amount of their budget is from aviation uses. Having property to lease for non-aviation uses will assist in the goal of self-sufficiency. Marketing the Airport should be a joint effort between the Commission and the fixed base • operator. Hodges said ABS has experience in working with government agencies and private aviation businesses. 4 Hodges said he would be looking at how the Airport is managed. He will look at the existing structure of the Airport Manager and the Commission and what their roles are. They should put policies and procedures in place that will minimize the amount of required interaction needed between the manager and the Commission. This will create continuity when there is change on the Commission. He said they would review leases to see if all the basic items are covered. Hodges said they would gather information,format it and give it back to the Commission for review and comments. He said a plan is a political document as well and will need comment from the Commission on whether certain recommendations will work. Hodges said they would interview the FBO and get their opinion on what it will take to grow business on the Airport. Robnett asked what ABS needed from the Commission. She said she knew of several data sources that would be helpful to ABS. Hodges said it would be important for the Commission to provide input when the draft reports are completed. Ellis asked Hodges if the Commission should sit down with a facilitator and have a meeting or several meetings on strategic planning? Hodges said he would wait until the Commission sees the initial draft of the plan before deciding whether they needed to have a facilitator. e. Commission meeting agenda format- Ellis asked that this be deferred to a future agenda. CHAIRPERSON'S REPORT: Ellis said he did not have anything that had not already been discussed. COMMISSION MEMBERS'REPORTS: Mascari asked O'Neil how much the renovation was to be in Building D and how did he get funding? O'Neil said it would be between$ 14,000-$ 15,000. He said he got proposals from several contractors and presented the information to the City Manager. This was all part of the exchange of space with Jet Air,IOW Aero and trying to find a place for the Civil Air Patrol. Mascari said that he saw there was a response from the DOT concerning a precision approach. He said the DOT thought the FAA would pick up the maintenance for the ILS. O'Neil cautioned that the person from the FAA that said they could pick up the annual maintenance was the person that designs the approaches,not the person that approves funding. O'Neil said an ILS would cost between$1 million and$ 1.2 million. He said that if the FAA would not pick up the maintenance costs,he did not think the Commission could afford it. He said Ankeny installed their own ILS and now there is a question of whether or not the FAA will provide maintenance. O'Neil said an ILS is a high maintenance item that costs between$60,000 and$80,000 per year. Mascari said he thinks the Commission should consider this a top priority for money received from sales of the ACP. ADMINISTRATIVE REPORT: O'Neil said that because of budget cuts at the State level,the City would receive several hundred thousand dollars less than expected. He said the Commission would need to review their FY 2004 budget. All City departments will be affected in some way. 5 The property west of the Airport,including some Airport property, is scheduled for final annexation on May 20. That is the same day the bids are due for the Mormon Trek project. The airport is required to put together a Spill Prevention Control and Countermeasure Plan. (SPCC). O'Neil is getting a proposal from Stanley Environmental,who is working on plans for other City departments. Hodges said ABS writes those plans and he will have someone from his office contact O'Neil. O'Neil provided the Commission with Commission and Council meeting schedules for the summer. There were copies of letters in the packet to John Ruyle and Harry Hinckley concerning their leases. O'Neil said there was a request to store non-aviation items in the United hangar. Mascari said it would have to be on the agenda. There was not additional interest from the Commission. O'Neil wanted to know if the Commission was interested in reviewing the conference room policy,particularly as it related to fees. There was not interest by the Commission to put this on the agenda. A developer west of the Airport wanted to know if the Commission was interested in water storage on the Airport and easements over some of the Airport property? Mascari said he thought this is something the Manager should deal with. O'Neil said he would take care of this. SET NEXT MEETING: The next regular Airport Commission meeting is scheduled for June 12,2003,at 5:45 p.m. O'Neil asked if there were any questions about the summer schedule? He said some of the meetings were not on the regular dates. No one had questions about the schedule. ADJOURNMENT: The meeting was adjourned at 6:31 p.m. Alan Ellis,Chairperson 6 IOWA CITY AIRPORT COMMISSION June 2003 Airport Expenditures Account 46110 Amount 116496 Larry's Maintenance Parking lot&handicap painting 135.00 116497 Commercial Towel Apr.service 53.60 116498 Johnson Co. Sheriff Notice delivery-Nichols 23.34 116499 Roto-Rooter Drain repair-Bldg F 114.00 119150 PES Leak monitor repair-Bldg H 197.75 119151 H.R.Green ALP revision-paymt.#4&#5 1850.65 119152 Midwest Janitorial May service 185.00 119153 Solon Heat&AC Gas line&furnace repair-Bldg D 979.76 119154 City of Iowa City Sewer&water—May 146.82 Account 37470 119153 Solon Heating&AC Furnace&AC—Bldg.D 5712.00 The above listed expenditures were approved for payment at the Iowa City Airport Commission meeting on June 12,2003. Chairperson Vice-chairperson IOCITY MPAAIRPORT • C 1801 WA South Riverside DriveUNICIIowa CityL , Iowa 52246 ' Office Phone(319)356-5045 ao May 15, 2003 The Honorable Mayor Mr. Ernest Lehman 410 East,Washington Iowa City, Iowa 52240 Re: Airport indebtedness Dear Mayor: The memorandum, dated April 15, 2003, from the Director of Finance to the City Manager reflects the Airport Commission's understanding of all the debts that require repayment by the Airport to the City of Iowa City. The Commission agrees with the numbers outlined in the memorandum and considers the memo to be an accurate assessment of all the debts to be repaid by the Airport. We propose to continue paying hangar debts with the rental fees until the loans are retired. We intend to apply all profits from the sale or lease of the property within the Aviation Commerce Park to the Park's infrastructure debt until that loan is retired. The Commission is working on a plan to best maximize income for the Airport from the funds received after the infrastructure loan is paid. If you have questions or would like to discuss this in more detail, please contact me at 338-1051. Sin , Alan Ellis, Chairperson Iowa City Airport Commission Cc: City Council Airport Commission Kevin O'Malley, Director of Finance Steve Atkins, City Manager Sue Dulek, Assistant City Attorney Ron O'Neil, Airport Manager • Ron O'Neil urn: Tracy Overton [toverton@iowarealty.com] .ent: Tuesday, May 20, 2003 11:38 AM To: Steve Atkins; Ron O'Neil Subject: Aviation Commerce Park Update, I spoke with Carousel Motors and they have a continued interest in lots 16 & 17, however, they were unsure as to when they might be able to present us an offer. After speaking with Mary Jo, it does not appear that the Streb's have any further interest at this time. Big Ten Rentals may be a future buyer, but for now they are focusing on the disposition of a couple smaller properties in the area. Bill Frantz is looking at other property options and said he will keep us in mind. As always should you have any questions please feel free to contact me. NAI Iowa Realty Commercial Tracy K. Overton 319-354-0989 1 Las I 92��tccszaD a `( TAfiNi 1 HANGAR LEASE THIS LEASE made and entered into this 13 day of March 2003, by and between the IOWA CITY AIRPORT COMMISSION of Iowa Johnson County, Iowa (hereinafter called the "LESSOR"), and Harry Hinckley, Interwest Equities, (hereinafter called "LESSEE") 886 Park Place, Iowa City, Iowa 52240, contains the following terms and agreements: WITNESSETH 1. PROPERTY LEASED. The Lessor agrees to rent to the Lessee and the Lessee agrees to rent from the Lessor Hangar No. 31 and adjoining office area) located at the Iowa City Municipal Airport("Airport") in Building G (hereafter"Leasehold Premises'). 2. TERM. The term of this lease shall be from March 1, 2003, through February 28, 2008. 3. RENT. Lessee agrees to pay to Lessor a monthly rent of $358.00, payable in advance on the first day of each month beginning with March 1, 2001. The rent amount shall be pro-rata for any rental period less than one (1) month. A 1.5% late fee for rent not received by Lessor will be charged after the fifteenth (15) day of each month. 4. POSSESSION. Lessee shall be entitled to possession on the first day of the term of this lease, and shall yield possession to the Lessor at the date and close of this lease term, except as herein provided. Should Lessor be unable to give possession on said date, Lessee's only damages shall be a pro rata reduction and rebate of the rent otherwise due. All leased property is to be returned to the Commission upon termination of the lease in the same condition as it was leased to Lessee, except for what would be considered ordinary wear and tear. 5. USE OF PROPERTY. Lessee agrees during the term of this lease to use and to occupy the Leasehold Premises only for storage and maintenance of aircraft owned by Lessee or for automobile parking while said aircraft is in use. In the hangars that include offices, the office area is to be used for aviation-related uses only. Sublease of office and or hangar space shall have written approval from the Lessor. Vehicle and equipment parking shall be limited to approved hard-surfaced areas and access to other areas of the Airport shall not be obstructed. It is assumed that only the aircraft hereinafter described will be stored in the Leasehold Premises. In the event of an exchange of aircraft by the Lessee, Lessee shall advise the Lessor of said exchange in writing within a reasonable time, not to exceed twenty (20) calendar days. If such exchange requires additional liability coverage, Lessee shall also provide Lessor with evidence of such coverage with the written notice of exchange. In any event, Lessor's liability, if any, shall not exceed the value of the aircraft herein described. 6. BUILDING MAINTENANCE. Lessor agrees to be responsible for the structural maintenance and the exterior upkeep of the hangar building covered by this lease. Lessor shall be responsible for snow removal and grounds keeping around said building, and agrees to do so in a prompt and efficient manner at no expense to Lessee. Lessee agrees to be responsible for the interior maintenance of the hangar building covered by this lease during the lease term. Without limiting the scope of Lessee's obligation herein, Lessee agrees to keep faucets closed so as to prevent waste of water 2 and flooding of the premises,to promptly take care of any leakage or stoppage in any of the water, gas, or waste pipes inside the hangar building, to repair any damage to electrical circuits due to overloading and replace light bulbs. Lessee agrees to maintain adequate heat to prevent freezing of pipes and is responsible for minor plumbing repairs. For hangars with offices, Lessee at its own expense may paint and carpet the office space. Lessee shall make no structural alterations or improvements without first obtaining the Lessor's written approval of the plans and specifications. Lessee also agrees not to construct or attach any fixtures without first obtaining the Lessor's written approval. My interior alterations or improvements the Lessee elects to make during the term of this lease shall comply with Title II, 42 U.S.C. 12231("Americans with Disabilities Act") 7. AIRFIELD MAINTENANCE. The Lessor reserves the right, but shall not be obligated, to maintain and keep in repair the landing area of the Airport and all publicly owned facilities of the Airport. Lessor also reserves the right to direct and control all activities of the Lessee that relate to safe operation of aircraft. 8. DESTRUCTION OF LEASEHOLD. If, during the term of the lease, any of the property or Leasehold Premises are destroyed by fire or the elements, or are partially destroyed so as to render them wholly unfit for occupancy, and in the event the Leasehold Premises cannot be replaced within two hundred and seventy (270) days from the occurrence, then this lease shall be null and void from the date of such damage or destruction, and the Lessee shall immediately surrender the destroyed premises and all interest therein to the Lessor. In the event of such surrender, the Lessee shall have no obligation to pay rent for said destroyed Leasehold premises from the date of destruction. In the case of partial destruction, wherein the Leasehold Premises can be repaired within two hundred and seventy(270) days,the Lessee may continue to occupy the premises while the repairs are being made, and the Lessor shall repair the same with all reasonable speed. If the Lessee chooses not to occupy said premises during the repair period, no rent shall be due Lessor. Immediately after said repairs have been completed, Lessee agrees to pay rent to Lessor, as provided in paragraph 4 above. In the event the premises shall be only slightly damaged so as not to render them unfit for occupancy, Lessor shall repair the same with all reasonable speed, and the rent shall not cease during the period of repair. 9. UTILITIES. Lessee agrees, at its own expense, to pay for the monthly costs of all utilities, except water and sewer, for Leasehold Premises under this lease. Lessor agrees to furnish monthly water and sewer service at no expense to the Lessee. Lessee is responsible for his own refuse disposal. 10. REASONABLE CARE OF PROPERTY. Lessee agrees not to permit or allow any of the Leasehold Premises to be damaged by any negligent act or omission of the Lessee or its employees, and agrees to surrender all rights, privileges and Leasehold Premises at the expiration of this leave in as good condition as at the commencement of this Lease, normal wear and tear excepted. Lessee agrees to commit no waste and to permit no illegal act on the Leasehold Premises, and further agrees to allow Lessor free access to inspect the Leasehold Premises at all reasonable times. 11 INSURANCE. Lessee 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: 3 Type of Coverage a. Comprehensive General Liability (1) Bodily Injury& Property Damage Each Occurrence $1,000,000 Aggregate $2,000,000 Lessee's insurance carrier shall be A rated or better by A.M. Best. Lessee shall name the Commission, its employees and the City of Iowa City, as additional insured. Lessee shall deliver to the Commission, within thirty (30) days of execution of this agreement, Certificates of Insurance or copies of said policies. Lessee shall provide fifteen (15) days notice to the Commission before cancellation of said insurance. 12. INDEMNIFICATION. (a) Except as to any negligence of the Commission, arising out of roof and structural parts of the building, Lessee will protect, indemnify and save harmless the Commission,the Commission's employees and the City of Iowa City from and against any and all loss, costs, damage, and expenses occasioned by, or arising out of, any accident or other occurrence, including fire, causing or inflicting injury and/or damage to any person or property, happening or done, in, upon or about the leased premises, or due directly or indirectly to the tenancy, use or occupancy thereof, or any part thereof by Lessee or any person claiming through or under Lessee. 13. SUBROGATION. Subrogation rights are not to be waived unless a special provision is attached to this lease. 14. GRANT ASSURANCES. This Agreement shall be subordinate to the provisions of any outstanding agreement between the Lessor and the United States Government and/or the State of Iowa relative to the maintenance, operation, or development of this Airport. Lessee specifically acknowledges and agrees 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. 15. CODE COMPLIANCE. It is agreed that the Lessee shall comply with all applicable provisions of the Code of Ordinances of the City of Iowa City, Iowa. It is further mutually agreed that the Lessee shall observe and obey all reasonable and uniformly applied Airport rules and regulations for all airport users promulgated by the Iowa City Airport Commission and/or the Airport Manager, together with any amendments or changes thereto, which have application to the operations and storage of Lessee's aircraft. 16. FUEL STORAGE. It is mutually agreed that no gasoline or other fuel or lubricating oil, or any other flammable fluids, will be used or stored in or on Leasehold Premises, unless properly contained in a parts-cleaning machine or metal cabinet and as permitted by the Code of Ordinances of the City of Iowa City, excepting the fuel or oil that may be contained within the functional parts of the aircraft itself or fuel distribution equipment. 17. MECHANIC SERVICES. Lessee agrees that the services of mechanics required by Lessee on the Airport, other than the services performed by the Lessee itself, will be secured through a service agency holding an agreement with the Airport Commission or by permission of the Airport Manager, however, nothing herein shall be construed to 4 preclude the Lessee from performing services on its own aircraft, including but not limited to maintenance and repair. 18. SEVERABILITY. In the event any covenant, condition, term or provision herein contained is held to be invalid, the remaining portions shall be deemed severable and shall remain in full force and effect. 19. ASSIGNABILITY. This lease shall not be modified, waived or abandoned except in writing duly executed by both parties. This Lease contains the whole agreement of the parties, and is not assignable without the written consent of Lessor. Lessee shall not sublet this agreement without written consent of the Lessor. 20. NON-DISCRIMINATION. The Lessee covenants, in consideration of the right to lease property at the Iowa City Municipal Airport, that the Lessee, 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. The Lessee shall remain in compliance with all requirements of 49 CFR Part 21, Non-Discrimination in Federally Assisted Programs of the Department of Transportation. 21. FAA Provisions. For purposes of paragraphs (a) through (k) below, the Commission shall be referred to as the Lessor and Lessee shall be referred to as the Lessee. (a) The lessee, 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 (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) The lessee, for himself, his personal representative, 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 the lessee, 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. 5 (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. (d) Lessee 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 lessee may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. (e) Lessor reserves the right (but shall not be obligated to Lessee) 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 the Lessee in this regard. (f) Lessor 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 Lessee, and without interferences or hindrance. (g) Lessor 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 Lessee from erecting, or permitting to be erected, any building or other structure on the airport which in the opinion of Lessor would limit the usefulness of the airport or constitute a hazard to aircraft. (h) During time of war or national emergency Lessor shall have the right to enter into an agreement with the United States Government for military or naval use of part or all of the landing area, the publicly-owned air navigation facilities and/or other areas or facilities of the airport If any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended. (i) It is understood and agreed that the rights granted by this 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. (j) There is hereby reserved to (name or Lessor), 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 Lessor 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. 6 Description of Aircraft Owner Make Model Serial No. "N" No. Value Owner Make Model Serial No. "N" No. Value LESSOR: LESSEE: IOWA CITY AIRPORT COMMISSION By: By: By: By: Approved By: City Attorney 7 LESSOR'S ACKNOWLEDGEMENT STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this day of , 20_, before me, , a Notary Public in and for the State of Iowa, appeared and , to me personally known, and, who, being by me duly sworn, did say that they are the Chair and Secretary, respectively, of the Iowa City Airport Commission and that the instrument was signed and sealed on behalf of the Commission, by authority of Resolution No. passed adopted by the Commission, on the day of , 20 , and that and , acknowledged the execution of the instrument to be their voluntary act and deed and the voluntary act and deed of the Commission, by it voluntarily executed. Notary Public in and for the State of Iowa LESSEE'S ACKNOWLEDGEMENT STATE OF IOWA ) ) SS: JOHNSON COUNTY ) On this_day of , 20 , before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared and to me personally known, who, being by me duly sworn, did say that they are the and respectively, of said corporation executing the within and foregoing instrument to which this Is attached, that (no seal has been procured by the said) corporation; that said instrument was signed (and sealed) on behalf of (the seal affixed thereto is the seal of said) said corporation by authority of its Board of Directors; and that the said and as such officers acknowledged the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Notary Public in and for said County and State airportthangarls.doc LE E S3 PPPoueb o"t ,\poi03 HANGAR LEASE This HANGAR LEASE ("Lease") entered into by and between the Iowa City Airport Commission ("Commission") and Interwest Equities ("Tenant"). In consideration of the mutual covenants contained herein, and for other good and valuable consideration, the parties hereby agree as follows: 1. Lease of the Hangar Space. The Commission hereby leases to Tenant hangar space in Hangar # 31 (the "Hangar Space") located at the Iowa City Municipal Airport (the "Airport") and described as follows: Building G, corporate hangar with a 48' bifold door and attached office area. The Hangar Space shall be used and occupied by Tenant principally for the storage or construction of the following aircraft Aircraft Make & Model Aircraft Registration Number Aircraft Registered Owner Name Registered Owner Home and Business Telephone Numbers Tenant shall promptly notify the Commission in writing of any change in the information furnished above. Tenant may request permission to store a substitute aircraft in the • Hangar Space by making a written request to the Commission. In the event Tenant is permitted to store a substitute aircraft in the Hangar Space, all provisions of this Lease applicable to the Aircraft shall also be applicable to the substitute aircraft. 2. Term. The term of this Lease shall commence on March 1, 2003, and shall end on the last day of the month of February, 2006. Tenant agrees to notify the Commission 45-days prior to the expiration of the existing term if the Tenant does not intend to negotiate another term. In the event Tenant shall continue to occupy the Hangar Space beyond the term of this Lease without executing a Lease for another term, such holding over shall not constitute a renewal of this Lease but shall be a month-to-month tenancy only. 3. Rent. For use of the Hangar Space, Tenant shall pay the Commission the amount of$358.00 per month, payable in advance on the first day of each month. A 1.5% late fee (which is $5.37 per day) for rent not received by the Commission will be charged after the fifteenth (15) day of each month. 4. 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. In the event that the tenant renews the lease, the deposit will be held for the next lease term. If the tenant does not continue on with a renewed lease, the Commission shall retum the deposit to the Tenant, less any amounts due the Commission for rent and damages to the Hangar Space. 5. Use of the Hangar Space and office a. The Hangar Space shall be used primarily for storage or construction of the Aircraft consistent with FAR and the Minimum Standards. b. Tenant may park his/her car in the Hangar Space during such time that Tenant is using the Aircraft. c. This provision is not to be construed as a prohibition for storage of maintenance materials, cleaning materials,tools, parts, spares, and other aircraft components. 2 d. Commercial activity of any kind shall not be conducted by Tenant in, from or around the Hangar Space unless prior approval is received from the Commission, as stated in the Minimum Standards. e. No maintenance on the Aircraft shall be performed in the Hangar Space or anywhere on the Airport without the prior written approval of the Commission, 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. f. Tenant shall be responsible and liable for the conduct of its invitees, and in and around the Hangar Space. Tenant shall keep the Hangar Space clean and free of debris at all times. g. In utilizing the Hangar Space during the term of this Lease, Tenant shall comply with all applicable ordinances, rules, and regulations established by federal, state or local government agencies. h. 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. j. 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 and all damage to the Hangar or to the Hangar Space caused by Tenant's use, including, but not limited to, bent or broken interior walls, damage due to fuel spillage, or damage to doors due to Tenant's improper or negligent operation. Tenant agrees, at its own expense, to pay for the monthly costs of all utilities, except water and sewer, for the hangar and office. Commission agrees to furnish monthly water and sewer service at no expense to the Tenant. Tenant is responsible for his own refuse disposal. 6. Rights and Obligations of Tenant. 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 dear 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, keeping faucets closed so as to prevent waste of water and flooding of the premises, to promptly take care of any leakage or stoppage in any of the water, gas, or waste pipes inside the hangar building, to repair any damage to electrical circuits due to overloading, cleaning of snow within two (2) feet of the hangar, disposing of any debris or waste materials, and maintaining any Tenant constructed structures and equipment. Tenant agrees to maintain adequate heat to prevent freezing of pipes and is responsible for minor plumbing repairs. The Commission shall be the sole judge of the maintenance undertaken by the Tenant, and may upon 3 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. Tenant, at its own expense may paint and carpet the office space. Tenant shall make no structural alterations or improvements without first obtaining the Commission's written approval of the plans and specifications. c. Tenant shall provide and maintain a hand fire extinguisher for the interior of the Hangar Space of the building in accordance with applicable safety codes. Extinguisher must be mounted and be rated at least 2A 40BC. d. Tenant shall not store any materials outside the Hangar Space. e. Except in an emergency situation,Tenant shall notify the Commission, in writing, of any repairs needed on the Hangar or to the Hangar Space. 7. 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 Tenants 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 so 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. 8. Sublease/Assignment Tenant shall not sublease the Hangar Space or assign this Lease without the prior written approval of the Commission. 9. 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. 10. Alterations. Tenant shall not install any fixtures or make any alterations, additions or improvements to the Hangar Space without the prior written approval of the Commission. All fixtures installed or additions and improvements made to the Hangar Space shall, upon completion of such additions and improvements, become Commission property and shall remain in the Hangar Space at the expiration or termination of this Lease, however terminated, without compensation or payment to Tenant. Fixtures include, but are not 4 any item permanently attached to the wall, floor, or ceiling of the Hangar Space by means of concrete, plaster, glue, nails, bolts, or screws. 11. Hazardous Materials. a. No"hazardous substance," as defined in Iowa Code section 4556.411 (2001), may be stored, located, or contained in the Hangar Space without the Commission prior written approval and proper storage containers. b. 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 12. Special Events. During special events at the Airport, 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. Tenant's failure to comply with the altered procedure is a default of this Lease, and the Commission may proceed to terminate this Lease. 13. 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 and regulations 30-days prior to their effective date. 14. 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 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 wants to change the lock to the Hangar Space, he or she shall provide written notice to the Airport Manager before he or she does so and shall provide a key to the Manager within twenty-four hours of changing the lock. 15. Insurance. a. Tenant shall at its own expense procure and maintain general liability and casualty insurance in a company or companies authorized to do business in the State of Iowa, in the following amounts: Type of Coverage Comprehensive General (or Premises)Liability- Each Occurrence $1,000,000 b. Tenant's insurance carrier shall be A rated or better by A.M. Best. Tenant shall name the Commission and the City of Iowa City, as additional insured. The Commission and Tenant acknowledge that a Certificate of Insurance is attached to this Lease. Tenant shall provide fifteen (15) days notice to the Commission before cancellation of said insurance. 16. 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 5 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. • 17. 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, flood, accident, strike, labor dispute, riot, insurrection, war or any other cause beyond Commission's control. 18. 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 profds or other damage related to the leasing of the Hangar Space under this Lease. 19. 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. 20. Event of 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 continuance of such default, the Commission may take any of the following actions and shall have the following rights against Tenant: a. Termination. Commission may elect to terminate 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 herein 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 6 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 therof shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such termination, reposssession 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 Commisison the rent and other sums and charges required to be paid by Tenant for the period to and including the end of the Term. 21. 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 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. 22. Thirty(30) Days Termination. Either party to this Lease shall have the right, with cause, to terminate this Lease by giving thirty(30) days' prior written notice to the other party. 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 is understood and agreed that nothing herein contained shall be construed to 7 Section 308 of the Federal Aviation Act of 1958. This Lease shall be subordinate to the provisions of any outstanding or future agreement between the Commission and the United States government or the Commission and the State of Iowa relative to the maintenance, operation, or development of the Iowa City Municipal Airport. Tenant acknowledges and agrees that the rights granted to Tenant in this Lease will not be exercised so as to interfere with or adversely affect the use, operation, maintenance or development of the Airport d. Tenant agrees to furnish service on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, that Tenant may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. e. The Commission reserves the right (but shall not be obligated to Tenant) to maintain and 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. f. The Commission reserves the right further to develop or improve the landing area and all publicly-owned air navigation facilities of the airport as it sees fit, regardless of the desires or views of Tenant, and without interference or hindrance. g. The Commission reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstructions, together with the right to prevent Tenant from erecting, or permitting to be erected, any building or other structure on the airport which in the opinion of the Commission • would limit the usefulness of the airport or constitute a hazard to aircraft. h. During time of war or national emergency,the Commission shall have the right to enter into an agreement with the United States Government for military or naval use of part or all of the landing area, the publicly-owned air navigation facilities and/or other areas or facilities of the airport If any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended. It is understood and agreed that the rights granted by this Lease will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance or development of the airport j. There is hereby reserved to the Commission, its successors and assigns, for the use and benefit of the public, a free and unrestricted right of flight for the passage of aircraft in the airspace above the surface of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using said airspace or landing at, taking off from, or 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. 8 25. 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 Airport Manager or the Commission Chairperson b. by service in the manner provided by law for the service of original notice, or 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. If to the Commission, addressed to: Iowa City Airport Commission Attn: Airport Manager Iowa City Municipal Airport 1801 S. Riverside Drive Iowa City, IA 52246 If to Tenant, addressed to: Interwest Equities 886 Park Place Iowa City, Iowa 52245 27. Airport Manager. The Airport Manager is the person designated by the Commission to manage the Hangar Space and to receive and deliver all notices and demands upon 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. My 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. 9 IOWA CITY AIRPORT COMMISSION By: Title: Date: Interwest Equities Approved: By: City Attorney's Office Title: Date: L �fts2 w cz ri c tiAfl nrc ca -t 3 HANGAR LEASE This HANGAR LEASE("Lease") entered into by and between the Iowa City Airport Commission ("Commission") and Interwest Equities ('Tenant"). In consideration of the mutual covenants contained herein, and for other good and valuable consideration, the parties hereby agree as follows: 1. Lease of the Hangar Space. The Commission hereby leases to Tenant hangar space in Hangar # 31 (the "Hangar Space") located at the Iowa City Municipal Airport (the "Airport") and described as follows: Building G, corporate hangar with a 48' bifold door and attached office area. The Hangar Space shall be used and occupied by Tenant principally for the storage or construction of the following aircraft: Aircraft Make&Model Aircraft Registration Number Aircraft Registered Owner Name Registered Owner Home and Business Telephone Numbers Tenant shall promptly notify the Commission in writing of any change in the information furnished above. Tenant may request permission to store a substitute aircraft in the Hangar Space by making a written request to the Commission. In the event Tenant is permitted to store a substitute aircraft in the Hangar Space, all provisions of this Lease applicable to the Aircraft shall also be applicable to the substitute aircraft. • 2. Term. The term of this Lease shall commence on March 1, 2003, and shall end on the last day of the month of February, 2006. Tenant agrees to notify the Commission 45-days prior to the expiration of the existing term if the Tenant does not intend to negotiate another term. In the event Tenant shall continue to occupy the Hangar Space beyond the term of this Lease without executing a Lease for another term, such holding over shall not constitute a renewal of this Lease but shall be a month-to-month tenancy only. 3. Rent For use of the Hangar Space, Tenant shall pay the Commission the amount of$358.00 per month, payable in advance on the first day of each month. A 1.5% late fee (which is $5.37 per day) for rent not received by the Commission will be charged after the fifteenth (15) day of each month. 4. 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. In the event that the tenant renews the lease,the deposit will be held for the next lease term. If the tenant does not continue on with a renewed lease, the Commission shall return the deposit to the Tenant, less any amounts due the Commission for rent and damages to the Hangar Space. 5. Use of the Hangar Space and office a. The Hangar Space shall be used primarily for storage or construction of the Aircraft consistent with FAR and the Minimum Standards. b. Tenant may park his/her car in the Hangar Space during such time that Tenant is using the Aircraft. c. This provision is not to be construed as a prohibition for storage of maintenance materials, cleaning materials,tools, parts, spares, and other aircraft components. 'L d. Commercial activity of any kind shall not be conducted by Tenant in, from or around the Hangar Space unless prior approval is received from the Commission, as stated in the Minimum Standards. e. No maintenance on the Aircraft shall be performed in the Hangar space or anywhere on the Airport without the prior written approval of the Commission, 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. f. Tenant shall be responsible and liable for the conduct of its invitees, and in and around the Hangar Space. Tenant shall keep the Hangar Space clean and free of debris at all times. g. In utilizing the Hangar Space during the term of this Lease, Tenant shall comply with all applicable ordinances, rules, and regulations established by federal, state or local government agencies. h. Tenant shall dispose of used oil only in approved receptacles. i. At no time shall Tenant start or run his/her Aircraft engine(s)within the Hangar or Hangar Space. j. 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 and all damage to the Hangar or to the Hangar Space caused by Tenant's use, including, but not limited to, bent or broken interior walls, damage due to fuel spillage, or damage to doors due to Tenants improper or negligent operation. 1. Tenant agrees, at its own expense, to pay for the monthly costs of all utilities, except water and sewer, for the hangar and office. Commission agrees to furnish monthly water and sewer service at no expense to the Tenant Tenant is responsible for his own refuse disposal. 6. Rights and Obligations of Tenant 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, keeping faucets closed so as to prevent waste of water and flooding of the premises, to promptly take care of any leakage or stoppage in any of the water, gas, or waste pipes inside the hangar building, to repair any damage to electrical circuits due to overloading, cleaning of snow within two (2) feet of the hangar, disposing of any debris or waste materials, and maintaining any Tenant constructed structures and equipment. Tenant agrees to maintain adequate heat to prevent freezing of pipes and is responsible for minor plumbing repairs. The Commission shall be the sole judge of the maintenance undertaken by the Tenant, and may upon 3 written notice, require specific maintenance work to be 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. Tenant, at its own expense may paint and carpet the office space. Tenant shall make no structural alterations or improvements without first obtaining the Commission's written approval of the plans and specifications. c. Tenant shall provide and maintain a hand fire extinguisher for the interior of the Hangar Space of the building in accordance with applicable safety codes. Extinguisher must be mounted and berated at least 2A 40BC. d. Tenant shall not store any materials outside the Hangar Space. e. Except in an emergency situation,Tenant shall notify the Commission, in writing, of any repairs needed on the Hangar or to the Hangar Space. 7. 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 so 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. 8. Sublease/Assignment Tenant shall not sublease the Hangar Space or assign this Lease without the prior written approval of the Commission. 9. 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. 10. Alterations. Tenant shall not install any fixtures or make any alterations, additions or improvements to the Hangar Space without the prior written approval of the Commission. All fixtures installed or additions and improvements made to the Hangar Space shall, upon completion of such additions and improvements, become Commission property and shall remain in the Hangar Space at the expiration or termination of this Lease, however 4 terminated, without compensation or payment to Tenant. Fixtures include, but are not limited to, locks, brackets for window coverings, plumbing, light fixtures, luminaries, and any item permanently attached to the wall, floor, or ceiling of the Hangar Space by means of concrete, plaster, glue, nails, bolts, or screws. 11. Hazardous Materials. a. No"hazardous substance," as defined in Iowa Code section 4556.411 (2001), may be stored, located, or contained in the Hangar Space without the Commission prior written approval and proper storage containers. b. 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 12. Special Events. During special events at the Airport, 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. Tenants failure to comply with the altered procedure is a default of this Lease, and the Commission may proceed to terminate this Lease. 13. 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 and regulations 30-days prior to their effective date. 14. 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 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 Tenants use and enjoyment of the Hangar Space. At a minimum, the Hangar Space will be inspected annually. Upon execution of this Lease, the Tenant wants to change the lock to the Hangar Space, he or she shall provide written notice to the Airport Manager before he or she does so and shall provide a key to the Manager within twenty-four hours of changing the lock. 15. Insurance. a. Tenant shall at its own expense procure and maintain general liability and casualty insurance in a company or companies authorized to do business in the State of Iowa, in the following amounts: Type of Coverage Comprehensive General(or Premises)Liability-Each Occurrence $1,000,000 b. Tenant's insurance carrier shall be A rated or better by A.M. Best. Tenant shall name the Commission and the City of Iowa City, as additional insured. The Commission and Tenant acknowledge that a Certificate of Insurance is attached to this Lease. Tenant shall provide fifteen (15) days notice to the Commission before cancellation of said insurance. 16. Casualty. in me 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. 17. 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, flood, accident, strike, labor dispute, riot, insurrection, war or any other cause beyond Commission's control. 18. 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. 19. 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 attomey fees incurred in enforcing the Lease and in obtaining the judgment. 20. Event of Default This lease shall be breathed 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 continuance of such default, the Commission may take any of the following actions and shall have the following rights against Tenant: a. Termination. Commission may elect to terminate 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 . the date herein fixed for expiration of the Term and Tenant shall remain liable as p:oviaea in tris 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 therof shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive such termination, reposssession 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 Commisison the rent and other sums and charges required to be paid by Tenant for the period to and including the end of the Term. 21. 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 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. 22. Thirty(30) Days Termination. Either party to this Lease shall have the right, with cause, to terminate this Lease by giving thirty(30) days' prior written notice to the other party. 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 :ransportation, and as said Regulations may be amended. c. It is understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. This Lease shall be subordinate to the provisions of any outstanding or future agreement between the Commission and the United States government or the Commission and the State of Iowa relative to the maintenance, operation, or development of the Iowa City Municipal Airport. Tenant acknowledges and agrees that the rights granted to Tenant in this Lease will not be exercised so as to interfere with or adversely affect the use, operation, maintenance or development of the Airport d. Tenant agrees to furnish service on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, that Tenant may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. e. The Commission reserves the right (but shall not be obligated to Tenant) to maintain and 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. f. The Commission reserves the right further to develop or improve the landing area and all publicly-owned air navigation facilities of the airport as it sees fit, regardless of the desires or views of Tenant, and without interference or hindrance. g. The Commission reserves the right to take any action it considers necessary to protect the aerial approaches of the airport against obstructions, together with the right to prevent Tenant from erecting, or permitting to be erected, any building or other structure on the airport which in the opinion of the Commission would limit the usefulness of the airport or constitute a hazard to aircraft. h. During time of war or national emergency, the Commission shall have the right to enter into an agreement with the United States Government for military or naval use of part or all of the landing area, the publicly-owned air navigation facilities and/or other areas or facilities of the airport. If any such agreement is executed, the provisions of this instrument, insofar as they are inconsistent with the provisions of the agreement with the Government, shall be suspended. It is understood and agreed that the rights granted by this Lease will not be exercised in such a way as to interfere with or adversely affect the use, operation, maintenance or development of the airport. j. There is hereby reserved to the Commission, its successors and assigns, for the use and benefit of the public, a free and unrestricted right of flight for the passage of aircraft in the airspace above the surface of the premises herein conveyed, together with the right to cause in said airspace such noise as may be inherent in the operation of aircraft, now known or hereafter used for navigation of or flight in the air, using said airspace or landing at, taking off from, or 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 u 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. 25. 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. My 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 Airport Manager or the Commission Chairperson b. by service in the manner provided by law for the service of original notice, or 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. If to the Commission, addressed to: Iowa City Airport Commission Attn: Airport Manager Iowa City Municipal Airport 1801 S. Riverside Drive Iowa City, IA 52246 If to Tenant, addressed to: Interwest Equities 886 Park Place Iowa City, Iowa 52245 27. Airport Manager. The Airport Manager is the person designated by the Commission to manage the Hangar Space and to receive and deliver all notices and demands upon 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. My 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. 9 IOWA CITY AIRPORT COMMISSION! Title: Date: Interwest Equities Approved: By: City Attorney's Office Title: Date: , MAY 0 8 2003 U.S. Department Of Transportation Central Region Fedora! Aviation Iowa,Kansas 901 Locust Administration Missouri,Nebraska Kansas City,Missouri 64106-2325 May 5, 2003 Ms. Stacy E. Woodson,E.I. Staff Engineer Howard R. Green Company PO Box 9009 Cedar Rapids, IA 52404 • Dear Ms. Woodson: Draft Environmental Assessment Iowa City Municipal Airport I have the following comments on the draft environmental assessment and noise analysis: • 1) Cover Sheet. I suggest deleting this page. 2) 'there is no Proposed Federal Action. This must be stated clearly before the purpose and need. 3) Page iii. The purpose and need is not adequate. Fleet mix and the number and type of operations are typically what determine purpose and need. There is no discussion of this. 4) Page iii &4. There is no evaluation of alternatives. All that is described is a list of projects that is typically listed under the proposed federal action. Typically, different runway alignment alternatives are stated in addition to different service alternatives. Alternatives need to be analyzed to determine if they meet the purpose and need. The • prudent and feasible alternatives must be then analyzed in the EA. The no action alternative must be analyzed even if it does not meet the purpose and need. 5) Page 10. Roads may be placed in certain areas of the RPZ. They are not allowed in the ROFA or RSA. 6) The following comments are related to the noise analysis: a) Helicopter operations can be modeled using INM version 6.0c. These operations cannot be discarded unless there is ample evidence showing they will no affect the noise contours. b) The FAA has formally adopted the DNL(Day Night Average Sound Level) as the single system for determining exposure of individual to airport noise. There needs to be an explanation of DNL including the 10-decibel nighttime penalty. Noise contours need to be expressed in terms of DNL." c) Fleet mix and operations need to be shown in the EA. d) Nose exposure maps need to be included in the noise analysis and not in the appendix. The noise contours do not appear to be representative of an airport with only general aviation aircraft. In addition, the flight tracks do not appear to be representative. You need to state the assumptions used in the flight track data. 7) Compatible Land Use. Noise is generally the most significant issue when related to compatible land use. It may also include wildlife issues and land uses such as landfills. 8) Paragraph 4.3. State your conclusion. 9) Paragraph 4.4. The discusion in this paragraph is about environmental justice and not socioeconomic impacts. 10) Paragraph 4.6. The details in determining the conclusion that a box culvert is the best option need to be provided. 11) A review of historic properties was not done, as the process is not finalized. 12) There are obvious impacts to the floodplains. Correct sizing of the culvert and the use of appropriate construction methods can minimize the impacts. There is no discussion of these. • 13) Farmland. Discuss the results of Form AD-1006. 14) Wetlands. The Corps of Engineers asked for a wetlands delineation. If this was completed it needs to be included in the EA. If no wetlands are present, you must show how this was determined. 15) Appendix C. The Airport Layout Drawing needs to be at a readable scale. The draft environmental assessment needs major revisions prior to being acceptable for the public involvement process. Please revise accordingly and prepare a preliminary draft assessment for further review. If you want to discuss these comments please contact me at 816-329-2645. Sincerely, ad/ "dr Mark H. Schenkelberg,P.E. Environmental Specialist fr .: Mr. Ron O'Neil, Iowa City Municipal Airport " C' IOWA CITY MUNICIPAL AIRPORT 1801 South Riverside Drive Iowa City, Iowa 52246 Office Phone(319) 356-5045 • Memorandum To: Airport Commission From: Airport Manager © . Date: May 8, 2003 Re: FY 2004 budget As I reported to you at your meeting on May 6, the State of Iowa passed a budget that reduces the amount of money they collected for local jurisdictions. The State budget was passed after the City of Iowa City certified our budget with the State on March 15. The City Manager and staff have developed a plan to balance the budget through a combination of increased revenues and a decrease in services and City staff. Some recommendations are immediate and some would be phased in over a period of 18 months. The first Council work session to discuss the FY 2004 and FY 2005 budget issues is scheduled for Monday, May 12 at 6:30 p.m. A second meeting, if needed, will be Tuesday, May 13 at 7:30 p.m. Attached are the recommendations for balancing the budget. As you can see, most City departments are affected. City of Iowa City • MEMORANDUM Date: May 6, 2003 To: City Council From: City Manager Re: Budget Reduction Plan As we are all aware, the State legislature has seen fit to approve legislation resulting in a dramatic reduction in State aid to municipal govemments. These reductions, which involve a repeal of existing law, are applicable to our FY04 budget and thereafter. The FY04 budget was approved by the City Council and submitted to the State in March as required by law. The State aid to municipal governments involved the consolidated payment from the State for population, personal property tax reimbursement, monies and credits, as well as the bank franchise fees.These amount to slightly over$1 million in our FY04 General Fund. Considering we levy$18,500,000 in property taxes for our General Fund operations, this represents 5.4% of General Fund property tax revenues for FY04. Additionally, we have also been advised the residential rollback for FY05 will decline dramatically from its current 51.3% to 47% or less. The rollback represents another loss of income to our General Fund and is projected to result in a further revenue reduction in FY05 of $800,000. In order to effectively address these circumstances, both fiscal years 04 and 05 need to be considered in order to assess the full impact of these State reductions. All of these issues in combination require we permanently reduce our proposed FY04 budget and our projected 05 budget, as well as consider what other future revenue alternatives might be available. We are using maximum taxing authority for our General Fund operations. One of the greatest problems in reducing any government's budget is the highly political question of the relative value of public services.All public services are valuable, at least to those citizens who utilize the particular service. Most everyone would agree there are varying levels of public services. Some services benefit many, others a few. The continuum of public services ranges from mandated programs that cannot be reduced to programs that have evolved because of community interests. As we work to reduce our services/programs in the face of the recent State executive/legislative action, we would hope to achieve some balance in the task of reducing—a daunting task for the Council. State Reduction in Aid May 7, 2003 Page 2 In order to develop a Budget Reduction Plan that minimizes the effect on public services and our employees, as well as meet the financial constraints imposed upon us, we initiated abbreviated but intense review of departmental operations and have prepared for your consideration program reductions and revenue increases, as well as an implementation strategy. Some of the service reductions involve internal accountability and administrative systems that support our organization, and others that provide direct service to the community. The new and/or amended revenues suggested will require Council legislative authorization, preferably early in the process. In order to minimize the impact of the budget reductions implemented and others as you might direct, we are proposing, to the fullest extent possible, these reductions be phased in over the next 18 months—July 1, 2003 to January 1, 2005. Our current cash position that has supported our highly favorable credit rating and due to our historic efforts to maintain these healthy reserves will allow us some discretion in implementing budget changes. This can protect us from severe and immediate changes such as those recently imposed by the State. However, our reserves cannot provide monies to offset the overall effect of the reductions in revenue by the State. Permanent reductions and/or revenue increases must be initiated. A phased approach is somewhat unique and does require commitment to a plan of reduced service, but also allows a more thoughtful, deliberate approach to the overall reduction in force that will need to occur. There are service reductions you may find acceptable and others you may not. Proposed reductions and options have been prepared. The ability to phase a particular service reduction will also need to be determined as you assess each reduction proposal.You have the ability to move decisively and make reductions immediately. However, we believe our planned approach, which incorporates managed attrition, is better for all concerned — the community, our employees, and our overall financial position. In the preparation of the Budget Reduction Plan, a basic underlying premise was used — we would "manage our way" through these difficult circumstances and not create a knee-jerk response. We applied the following principles to our proposal: State Reduction in Aid May 7, 2003 Page 3 1. We have attempted to bring a balanced approach to service changes/reductions without severely compromising the overall mission of the department which provides the particular public service. 2. We would attempt a managed process whereby a phasing of these reductions would occur. Wherever possible in implementing our managed attrition plan, the direct impact on employees (immediate layoff) is minimized. This also has an added benefit of minimizing unemployment compensation costs(we are self-insured). 3. With a managed attrition plan,we utilize our historic retirement patterns and annual turnover experience to support a phased implementation policy for the Budget Reduction Plan. As of January 1, 2005 we will have 25 employees eligible for retirement. Please note we cannot make someone retire, but our experience is that many will choose to do so. Also annual turnover and other resignations are factored into the reduction in force. If there is not sufficient reduction in proposed permanent employment as outlined in the Budget Reduction Plan, it will of necessity require implementation (layoff) of the reduction. We are working to minimize those circumstances. In implementing a managed attrition plan, my office will need discretion in determining which positions are filled and those which are not. In order to reduce total employment, attrition plans and/or freezes must be used wisely. Attrition is random, that is those who wish to retire or resign are not the positions involved in the service reduction. Certain positions may need to be filled. Without management discretion, an effort to reduce overall employment cannot effectively occur. 4. We would use our cash reserves to support the planned phasing of reductions. However, certain services do not lend themselves to phasing and will require immediate reduction. 5. We must be vigilant in preserving our Aaa credit in order to assure no long-term slippage of our financial position. This cannot be guaranteed due to the State's control over local governments as clearly represented by the imposed revenue reductions. We are vulnerable to State financial policy, but it will remain our goal to preserve our superior credit and the long-term savings it represents. 6. Departments will be given goals and directions in accordance with the Budget Reduction Plan approved by Council, and given no more than 18 months to fulfill the Budget Reduction Plan. Periodic reports will be prepared for Council in order to update our efforts. State Reduction in Aid May 7,2003 Page 4 7. County governments as well as cities will have their State aid reduced. We note we have contracts with the County for library and senior services. If they were to reduce their participation,we would need further reductions in the General Fund. 8. Wage freezes were not considered as a component of the Budget Reduction Plan. By postponing adjustments for a period of time, we gain little in attempting to provide for permanent reductions in the costs of our program of services. Additionally, there is a question of fairness, i.e. singling out any group of employees in order to have them bear an extraordinary financial burden while other groups do not. There is often a tendency to apply such a freeze to administrative employees since they are not subject to collective bargaining agreements. Many of these are long-term employees and they have been encouraged over the years that hard work and achievement will provide certain rewards. To single out that group discourages ambition. Like other organizations, including the universities and the State of Iowa,we should work to assure that the compensation for our employees is fair. We also propose that our Enterprise Funds be left out of the equation in the reductions of our General Fund. There will be employee turnover within these funds as well as others, and we • can create an opportunity to have those employees leaving General Fund service to possibly seek employment with a position financed by an Enterprise Fund. I must reiterate that the circumstances we face are a direct result of the State's control over local government finances and clearly demonstrate our financial vulnerability to the State. Be that as it may,we must move decisively to respond to these changes. The Budget Reduction Plan represents $1,340,000 in reductions, and $497,000 in new revenues, or a total of $1,837,000. We recognize that expenses and revenues projected out much beyond eighteen months are difficult to guarantee (also another session of the State Legislature will occur January 2004). We believe we have made accurate projections based on the information available. Also included in this report are options which will give you some ideas about alternative revenue increases or budget reductions. Many of the options need additional work in order to estimate their financial consequences. State Reduction in Aid May 7, 2003 Page 5 BUDGET REDUCTION AND REVENUE PROPOSALS(not in priority order) 04 05 1. Reduction of one Associate Planner. Will result in delays in implementing -40,000 the Comprehensive Code Update. -40,000 2. Elimination of neighborhood newsletters, preparation, printing and mailing. -16,000 Will consider use of web page and encourage neighborhoods to create their own financial resources. -16,000 3. Eliminate PIN grants from General Fund. Street and related right-of-way -15,000 improvements can be financed from Road Use Tax. A PIN grant program related to right-of-way improvements could include minor street repair, -15,000 trees in right-of-way, neighborhood signing,trails, bikeways. 4. Reduce contribution to ICAD by 10%, or$5,000.This contribution has been -5,000 $50,000 for many years. Note the Department of Planning and Community Development also has not filled the Economic Development Coordinator -5,000 position. These duties have been assumed, part-time, by our Community and Economic Development Coordinator. 5. Reduce library printing and postage by $15,000. Library newsletter and -15,000 circulation notice distribution will be reduced. They will be sent electronically to the fullest extent practical. -15,000 6. Reduce library materials budget to FY03 levels and establish this as the -15,000 new base amount.The reduction is$15,000. -15,000 7. Elimination of one FTE position. Library operational policy will determine -45,000 the specific positions. -45,000 6. Increase library fines and fees. +15,000 +15,000 9. Library commercial space to be leased and rental income accrue to -0- General Fund. The space represents 4200 square feet on first floor and 7000 square feet in basement. Originally the income was to be used to +50,000 retire library building debt. The estimated income would be directed to the General Fund, not debt service. An annual income when fully leased $100,000. 10. Eliminate library parking reimbursement ($10,000) begun in 2000 to -10,000 -10,000 address library users' most persistent complaint. 11. Reduce the complement of Police Officers personnel by 5. Immediate 250,000 impact will be the elimination of DARE, reduction in Community Relations activities, reduced patrol strength and investigative work. Other possible 250,000 staffing reductions, in lieu of, will be considered as alternative reduction options continue to be explored. State Reduction in Aid May 7, 2003 Page 6 04 05 12. Eliminate 2 full-time equivalent permanent employees in parks and/or -80,000 recreation. Final positions vacated to be determined by program -80,000 reductions, attrition and retirement effects on total departmental employment. 13. Reduce all Community Events and Aid to Agencies for FY04 by 10%; and -37,000 10% for FY05. Each recipient would be notified of the reduction of 10% in -34,000 the amount the Council approved for FY04. It would become the new base for FY05. 14. Reduce the complement of Public Works, Engineering, and related support -130,000 staff by 2'/z full-time equivalents. Much of the staff time is devoted to -130,000 design, management, inspection-related services for capital and maintenance related projects. 15. Reduce the complement of Finance and General Administrative support by -130,000 2%full-time equivalents. These positions support our internal management -130,000 programs/policies and provide support to other City departments. 16. Charge the Housing Authority for the administrative time of the Housing +10,000 Assistant in performance of Housing Quality Standards required by the +10,000 Department of H.U.D. 17. For the Housing Inspection Division to be fully funded by fee revenue and +90,000 maintain the same staff level, the fees would need to be increased by 42%, +90,OOD or$93,000 per year. Option—To be fully funded AND hire an additional inspector would need to increase 66%and generate$145,000. 18. Eliminate Saturday Bus service. This service represents 11% of our -180,000 revenue miles/cost, but only 4%of our ridership. -180,000 19. Reduce advertising budget for Transit(current budget is$20,000) -5,000 -5,000 20.Charge a$.25 fare for the Downtown Shuttle. +30,000 +30,000 21. Re-do our employee training and education policies to concentrate on -75,000 continuing education requirements, training and education transferable to -75,000 other employees. Review all out of state travel related to training and education. Discourage City employee participation in leadership roles for professional association. 22. Increase Building Inspection fees by $70,000. Current fees amount to +70,000 $800,000 annually. An increase of$70,000 or 8% -our fee schedule would +70,000 remain similar to other area communities. State Reduction in Aid May 7, 2003 Page 7 04 05 23. Eliminate the Saturday night concert series planned for downtown -8,000 pedestrian mall. -8,000 24. Reduce Parkland Acquisition Fund from $320,000 to $50,000. These +100,000 Funds would be payable to the General Fund for FY04 of$100,000; FY05 of $100,000; and $70,000 in FY06. This eliminates capital Project +100,000 contributions and a.means for financing the Parks & Recreation Master Plan. 25. Increase parking violations from $3 to $5, assuming the State Legislature +75,000 authorizes the ability to increase. +75,000 26. Reduce Hotel Tax contribution to the CVB from $137,500 to$100,000, and -37,000 change annual % contribution of Hotel tax from 25%to 20%. -37,000 27. Eliminate Public Power study for FY04. This preliminary study was -50,000 financed in FY03 for $18,000. This would have the effect of no additional financing available for any follow-up studies and related costs such as -0- litigation for consideration of this proposal. 28. Increase cable revenues paid to the General Fund from current $30,000 +70,000 annually(was new in FY04)to$100,000.Will require program reductions in cable operations. +70,000 29. Reduce Fire staff from 59 to 55. The Department is currently one over staff -184,000 (authorized 58). In 2002, 6 new firefighters were hired in anticipation of the proposed 4th station.The new station will be on indefinite hold. -184,000 30. Good bids, mild weather'fund." 50,000 50,000 State Reduction in Aid May 7, 2003 Page 8 Options (not in priority order) 1. Develop a use of right-of-way fee for water, sewer, and storm water utilities. As Enterprise Funds these services operate in the public right-of-way, without charge. The consequences, depending on the system used to measure the financial implications,will have a direct impact on water and sewer rates, and the proposed fees for a storm water utility. 2. Eliminate selected Boards and Commissions. Will discontinue staff time commitment for newest boards. They are: Public Art Advisory Committee and Police Citizen Review Board. Direct expenses in value miscellaneous materials support and legal assistance, $4,000 and$7,000 respectively. 3. Eliminate transit service after 7 p.m.Would be an annual savings of$226,000. 4. Direct that negotiations for airport lease payments be initiated with increased rents as the goal. Establish a subsidy as a percentage of operations costs. 5. Assess the Impact of the proposed nuisance abatement ordinance currently being considered. 6. Assess capital improvement project (those in current plan years and those unfunded)— decide on those that have the greatest potential to increase the property tax base. Economic development (tax base) to be higher priority in capital investment (CIP) — °bang for the buck°economic policy. 7. Review all planning and development fees(currently they are inflation adjusted). 8. Review the biennial deer kill($100,000/year)planned for FY04 and FY06 9. Restructure internal loans to Airport for Hangars,Senior Center, and Fire capital projects - Extend payments?(not recommended) - Declare them paid?(can be done selectively) 10.Renegotiate SEATS agreement with County. Currently 40 hours of SEATS services are provided on weekends (Saturday and Sunday). If service is eliminated, a savings of $48,000 annually. 11. Expanded advertising on buses, painted to reflect a product promotion. Estimated annual income of$20,000.Could be as high as$40,000 if used on all 21 buses. 12. Eliminate selected national membership participation by the City in organizations representing City issues, most often at the Federal level. Such as: - National League of Cities $4,400 - American Public Transit $5,000 14.Eliminate payment of the $20,000 multi-county assessment from General Fund to ECICOG. Maintain an involvement in ECICOG Solid Waste Management issues with funds from Landfill revenues. 15. Increase parks and recreation fees. These include recreation programming, cemetery, shelter rental, and City park amusements. Recreation fees are sensitive to public requests for these types of services and are reviewed periodically. Cemetery and shelter fees have not been adjusted in several years. State Reduction in Aid May 7, 2003 Page 9 16. Eliminate downtown shuttle.A savings of$80,000. 17.Consider an "Adopt-a-Trail" program for City trails and pedestrian ways. This would be similar to the IDOT"Adopt-a-Highway" program and our"Adopt-a-Park". 18.Consider rental of the Salvage Barn and Furniture Project. These two organizations use City-financed facilities at the Landfill for no charge. „ IOWA CITY MUNICIPAL AIRPORT ,. Q 1801 South Riverside Drive Iowa City, Iowa 52246 a111 Office Phone (319) 356-5045 b m May 20,2003 Mr.John Bernard Double Check Company 4000 Raytown Road Kansas City,Missouri 64129 Dear Mr.Bernard: I am having a couple of problems with the fuel tank system installed by Double Check. There is a problem with the motor stopping when the FBO is tying to unload fuel into the Jet A tank. The motor runs for a while and then stops. It can sometimes be reset right away,but other times takes quite a while before it will reset. The motor does not seem to be too hot. It took over two hours to unload 7000 gallon of fuel yesterday. It is not the filters because there is not that much • pressure showing on the gauge. The other problem is a relief valve on the I OOLL tank. It sometimes leaks and it is staining the paint It has started to deteriorate the paint The system is still under warranty and I need to know if you will be sending someone to make the repairs or WI should contact someone locally and have them bill you directly. If you want me to have it repaired locally,please send me an e-mail or letter authorizing the repairs so I will have something to show the contractor. If you are going to have someone from Double Check make the repairs,let me know when you will be here so I can have someone available to show you what the problems are. I would like to get this repaired in the next two weeks before Jet Air needs another load of Jet fuel. Please let me know how you would like to proceed. I can be contacted at the address listed above,at(319)356-5045 or e-mail at ron-oneil(@iowa-citv.org If you want more specific information on the problems with the Jet A tank,contact Klay at Jet Air,Inc.at(319)248-1200. Sincerely,1D O‘ Ronald J.O'Neil Airport Manager Cc: Airport Commission • Jet Air,Inc. Ron O'Neil From: Michelle.McEnany@DOT.STATE.IA.US Sent: Thursday, May 15, 2003 8:50 AM Subject: $11 Million to Iowa Airports! HARKIN ANNOUNCES $11 MILLION INVESTMENT IN IOWA AIRPORTS TUESDAY, MAY 13, 2003 WASHINGTON?U.S. Senator Tom Harkin today announced $11 million in federal grants for improvements to 36 Iowa airports. The grants, released by the Department of Transportation, allow for important structural and safety upgrades at facilities statewide. "I am pleased that Iowa airports will receive these important investments," said Harkin. "Maintaining a quality airport is important to the economic health of a community, as many businesses require a nearby airport in order to come to a community or expand existing facilities." Iowa City Grant Description Albia $300,500 Rehabilitate and construct taxiway, Rehabilitate and expand apron Algona $245,800 Construct taxiway, extend runway, improve access road Ankeny $352,900 Extend taxiway and apron Bloomfield $121,800 Expand apron Boone $59,400 Install airfield guidance signs Chariton $182,700 Install perimeter fencing, construct access road Charles City $51,000 Rehabilitate runway Cherokee $480,500 Rehabilitate taxiway and apron Davenport $540,000 Rehabilitate runway Dubuque $873,000 Acquire snow removal equipment and update airport Master Plan study 1 Forest City $27,000 Rehabilitate runway Fort Dodge $359, 600 Acquire aircraft rescue and fire fighting safety equipment, extend runway, rehabilitate access road Greenfield $116,500 Rehabilitate taxiway Grinnell $248,400 Expand apron and taxiway, install taxiway lighting Hampton $288,000 Remove obstructions Harlan $159,700 Rehabilitate apron and taxiway Humboldt $418,500 Construct taxiway, apron, and access road Independence $180,000 Rehabilitate runway, construct taxiway Jefferson $150,000 Extend runway, rehabilitate apron and taxiway Keokuk $252,000 Rehabilitate runway, conduct miscellaneous study, improve runway safety area, install taxiway lighting, install taxiway lighting and miscellaneous NAVAIDS Knoxville $361,200 Rehabilitate runway Marshalltown $446,200 Rehabilitate apron Mason City $1.1 million Acquire land for approaches, obtain aircraft rescue and fire fighting vehicle, extend taxiway Muscatine $69, 900 Install airfield guidance signs, improve runway safety area Newton $367,500 Construct apron Oelwein $84,000 Rehabilitate taxiway Oskaloosa $300,000 Rehabilitate runway and taxiway, install weather reporting equipment Pella $27,000 Rehabilitate runway Pocahontas $456, 600 Expand apron, rehabilitate taxiway lighting, remove obstructions 2 Red Oak $118,600 Rehabilitate runway lighting Sac City $253,000 Rehabilitate apron Sheldon $215,400 Rehabilitate apron Storm Lake $91,800 Rehabilitate runway Waterloo $822, 600 Rehabilitate terminal building Waverly $150,000 Extend runway Webster City $288, 800 Install runway lighting and vertical/visual guidance system For additional information and specific descriptions of the projects, please contact the Harkin press office. ---end--- 3 IOWA CITY AIRPORT OPEN HOUSE JUNE 1 4 , 2003 9 : 00 A . M . - NOON ■ Display your airplane • Visit with other aviation enthusiasts ■ Airplane owners drawing for one grand prize. All other airplane owners who register will receive two free tickets to the Sertoma Fly-In breakfast in August a Enjoy the displays in the large hanger and in the airport terminal. / it ._ � , - i L� .': � �v•`"' .: a;u Y ?,--- if-,-- , .2, ' s r L4 i ' '*, L"n � � k� - az s : • Cti ��4=;2k*;ChD3 E+,�-F.' �,'. •i's§+> -.*. w,.'... -*m,. 3�`r� ..�.“a." n"Jt 8 J�' � �ja �*�vr'F i y+t t 4. k/►�e§�.'�, iR k _i 31nt aP`,Y �i ' " ' � r..;.5-:- g +sC 1Z� .c= Lilt � y( fi -14 4 . �bC4 }� . � yv }imo-. ry � � 4x a � y-i;v TSS ell � it3 �yC. ; . , p�k5* � i S `, I . ffi t � -1,1.7 a ,r RNCaCg at A4 $ ' µ {J 5 ✓ �k � - a � %r �Tr3, :+ iLt k + " t " - 3S *.n , -4,;,..h.4,4 1. , .s +' , s kY = : -k2e al s AI,, -. x ',.^t '' m , _4t 4V.Z.a-, y .Y+F1 Journ. yL3cYontrSPRING 2003 THEAST IOWA REGIONAL AIRPORT $tie j4 .44 W FULL FLIGHTS are " „s� ` t r e a . • �- t , becoming routine . `i t` ,V _ ty ,-� `wr-.mare3 f again as more '^gym J r4 1 ' ,•• . passengers make ay .1 L�� di.z'. s'--•+- :+„fn.� "e. • ;, • Southeast Iowa 'C*sA ,a ca , ; Regional ort u m a 4k1 F 1 9 P r _ • ,.1 _ : ,12 _t r L of choice. 2003 gets off to a flying start for BRL Although Southeast Iowa Regional Airport distant airports.Now,people are beginning to is far from its commercial capacity,boarding agree that that is a waste of potentially numbers and passenger comments have valuable time. officials smiling this.spring. One such patron is long-time Burlington Manager Sharon Leeper is hesitant to chiropractor Dr.David Miller,who recently declare a"turnaround,"because"we want to confirmed plans to take his entire staff to see results over a longer period of lime-but Dallas for a seminar. "Being able to use our the past few months have certainly been local airport allows me to see patients all positive. People do seem to be coming back, morning and fly out in the afternoon,which I both for business flights and for leisure travel." could not do if I had to drive to.Moline or She credits the gains to"a combination of somewhere else,"he says. I factors:new things we're doing,messages "For a modest expense difference, it is more which we've used for some time that arc than cost-effective for us to be in the office beginning to sink in, and factors beyond our and productive that extra half-day." control which are having a positive effect." Time is also of the essence for Tuthill For years,BRL has fought "leakage"- Energy Systems factory reps,as service loss of commercial passengers who live or work in the area but choose to fly from more Leisure travelers— Continued on page 2 SOUTHEAST IOWA REGIONAL AIRPORT PAGE 1 SPRING 2003 Long-. :rm lease-build pmgram gets ft taker Local hangar tenant Tim Binder has become concept arose as a way to develop"new" the first to accept an Airport Authority offer of airport land south of the airport office and west a long-term lease on BRL land in exchange for of the new main taxiway(see story on page 3). the right to install a custom-built facility. "We are pleased to see Mr.Binder take The Burlington resident plans to build a advantage of this new idea so quickly,"Leeper general-aviation hangar for his own use at the said. "We think it also has great potential for west end of"D"Row. Construction is ex- corporate or commercial tenants, and we are pected to start by May,and Binder will enjoy a open to proposals for other aviation-related 25-year lease on the property. projects besides hangars,too." Airport Manager Sharon Leeper said several Interested parties should contact Leeper at parties have expressed interest in tenant-built the SIRAA office,319-754-1414(fax 754- facilities since the Airport Authority opened 1424, e-mail director@brlairport.com). the topic for discussion last October. The Leisure travelers also enjoy BRL's convenience Continued from page 1 manager Ernie Voigt explains: When a cus- You're cleared all the way through."Driving tomer calls, "we need to get out fast. [Com- more than an hour to use another airport? pared to] driving to some distant airport,it's "We've done it both ways,"Milt says,"and convenient for us—and more important, we've found Burlington to be the most conve- convenient for our customers. We've had nient—and the most economical." really good experience traveling through Even as the Quad Cities airport at Moline BRL." was boasting record passenger hoardings with The increasing appeal of BRL goes beyond two cut-rate airlines,`we've been able to get business convenience.Leisure travelers are passengers back from them,"Leeper says. "We also turning increasingly to the region's own have used a$50 certificate as a promotion, and airport. that really turned some traffic around." Taking advantage of special senior and In fact,many flights have been full in recent family fares,Milt Paule says he and his wife weeks,and"that's the way we like to see it," "have found amazing connections from here— American Connections Station Manager Jody and once you get on here,there's no more Olson says. baggage inspection,no more.personal checks. The Southeast Iowa Regional Airport Authority publishes Journey Beyond for the Information of commercial and private aviation customers In southeast Iowa and west-central Minds. Authority Board: Steve Lewis,Chair•Charles E.Walsh,Vice Chair•Gregg Mandsager,Secretary • Staff: Sharon Leeper,Airport Manager We welcome all comments and suggestions to improve both regional air service and this publication.We encourage recipients to help us keep out malting Gst(names,titles,addresses)updated.Send Input to: Southeast Iowa Regional Airport.2515 Summer Street•Burlington,IA 52601-3330 Telephone 319-754-1414•Fax 319-754-1424•e-m31:drector®brlalrportcom•Web site:w,wtbrlairportcom SOUTHEAST IOWA REGIONAL AIRPORT PAGE 2 SPRING 2003 Officials lobby on behalf of flying public Airport Authority Board members and resulting from the 9-11 tragedy for small Manager Sharon Leeper,through active businesses that comprise the majority of involvement with Southeast Iowa's business General Aviation. community and local government agencies, + Support creation of a comprehensive continue to spotlight interests of the flying federal commercial transportation strategy public at the highest levels. linking air,bus and rail services. As members of the Southeast Iowa Eco- And during Southeast Iowa Day in Des noetic Summit April 1-3 in Washington,D.C., Moines Feb. 12,Regional Airport leaders also airport leaders were to meet with members of pressed the case that Iowa taxes on aviation Congress,key staff officials and top adminis- should be returned to aviation infrastructure. trators.They and other"summiteers"will: Currently, aviation sees only a minor fraction + Support a reduction from 10,000 to 7,500 of those taxes,roughly$8 million a year;most in the number of annual commercial goes into the state's general fund. emplanements that qualify airports for entitle- Both ventures were organized by the ments. Chambers of Commerce and economic devel- +Ask that no undue federal restrictions, opment agencies of Burlington/West including on-demand charter,be placed on Burlington,Fort Madison,Keokuk and Mt. General Aviation. Pleasant,and included a number of local- + Support compensation for disruptions government delegates. Taxiway replacement completion in sight After three years of planning, design and allow aircraft to pull onto and taxi off the construction, completion ofBRL's main north-south runway more efficiently. In April taxiway replacement project is in sight 2000,tests showed the old taxiway's concrete Federal Aviation Administration and airport was too badly deteriorated to accept an over- officials officially accepted the contractor's lay,so total replacement became the best work on Phase II of the project in February. option. (Local firms played key roles: Shipley Con- With that necessity,the Airport Authority tracting was the Phase II general contractor, Board also decided to follow newer FAA Frank Millard&Co. did the electrical work.) safety regulations, allowing the new taxiway to Soon after,Congress approved funding for the be built somewhat closer to the runway. That Airport Improvement Program,a nationwide has opened about 25 acres of airport property program which includes the promise of funds for future development or sale. for BRL. Now,Regional Airport Manager Sharon Who's Who— Continued from page 4 Leeper says,"we hope to have Phase III ready airport in mid-February: "They called me in, for bid in May."That will extend reconstruc- and I'm still here!"Of his now-permanent tion all the way to the south end of the airfield, position,he says"I love it out here! There with AIP funds covering about 90% of the cost. are a lot of reasons,but the big one is the The taxiway parallels the 6,700-foot main variety of work we do." • runway, and includes new connectors that Both men live in Burlington. SOUTHEAST IOWA REGIONAL AIRPORT PAGE 3 SPRING 2003 s I WHO'S WHO z� in a D Z (This is a regular Journey Beyond column about thb . CD coA.K 1 people working in and around your regional airport.) a m a -a lit'.c ' s ,1 ' �t,.♦. Vit, {:.. .7.„....... Jeri]kr . , Clausen (left)and 1 Steve h a P, t• Mixer 05 a, 9 This'month,we meet two men you might encounter now and then as they -,tr perform various maintenance tasks in and t r•,' 0. Q around the terminal and general aviation c E. 'g, V til 3 hangars. ' 23 S More often, if you see them at all,it's from afar.When they're not working on iequipment in our shop or garage,they're P 2 -7:7 operating it all over the airfield—and that �� "n C, includes clearing snow and ice to keep tilt y g 1 44 @ ' • airport open in all but the worst of weathe, e O r.a _ On duty part time but on ca1124/7,they \ �� Q ^ '— �^ are base operations maintenance employ- / ees Jerry Claussen and Steve Mixer. Claussen,retired from State Farm / • Insurance,says he has"always wanted to be around airplanes,"but with other : responsibilities,he figured"I could never afford to buy my own plane."Then,when o o • , BRL advertised a position about two years a % ' + .ago,he grabbed it: "This is about as close a' K to Manes as I could get,"he says—and a o 0 en a while he still doesn't expect to have a y �a c oq n c ;_1 plane of his own,"I do take flying lessons o c `~°tic 4 a °' 0 11 about as often as I can afford them." -0 e`� d c 4 j Mixer,who is also a self-employed c °o n y p agent with Tri-State Distributors,came y a ° o ° y about his BRL job much more recently. He ,H y C W 5 O had been"an`extra' for snow removal" w o 1 , "5. .a m y v o until this year's first serious snow hit the "C w ° 0. Q tie. Who's Who— Col ied on page 3 0. A PAGE 4 SPRING 2003