Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
10-09-2003 Airport Commission
�LFC CO',P'l IOWA CITY AIRPORT COMMISSION AIRPORT TERMINAL BUILDING 1801 S. RIVERSIDE DRIVE THURSDAY, OCTOBER 9, 2003-5:45 P.M. I. Determine Quorum II. Changes/Amendments to Minutes of September 11, 2003 meeting Ill. Payment of Expenditures IV. Public Discussion—Items Not on Agenda V. Unfinished Items for Discussion/Action: VI. Items for Discussion/Action: a. Environmental Assessment(consultant-H.R. Green Co.) b. Vertical Infrastructure Grant—Bldgs B &C, bid opening c. Obstruction mitigation project(consultant-Stanley Engineering) d. Aviation Commerce Park(ACP)—Iowa Realty i. Prospects/activity report ii. Marketing plan/expenditures review iii. Site improvement recommendations e. Strategic Plan i. Review plan ii. Future action steps f. Runway 07 project—consultant selection process g. Fuel flowage fees h. Civil Air Patrol lease i. FY 2005 budget review VII. Election of Officers a. Chairperson b. Vice-chairperson (if needed) VIII. Chairperson's Report IX. Commission Members' Reports X. Administrative Report Xl. Set Next Regular Meeting for November 13, 2003 at 5:45 p.m. XII. Adjournment ?odea os Oct 03 o n Agenda summary- 09 October 2003 a. Environmental Assessment—There may be a response from the FAA by the time of the meeting to the revisions sent in by H.R. Green. Someone from H.R. Green will be at the Commission meeting to answer questions you may have. b. Vertical Infrastructure Grant—Bids for this project are due at 5:00 p.m. on October 9. Someone from H.R. Green will be at the meeting to tabulate the bids and make a recommendation. This is a 70/30-match grant from the Iowa Department of Transportation,with a maximum contribution of$ 50,000 by IDOT. c. Obstruction mitigation project—Stanley Engineering has started the mitigation program. They are meeting with obstruction owners and developing a list of contractors. d. Aviation Commerce Park—Tracy Overton will be at the meeting to discuss information with the Commission. e. Strategy/business plan—The draft report was presented to the Commission and Council on September 22. The Council is expecting a report from the Commission sometime in the next two months. The Commission will need to coordinate a final plan from ABS and then write an action plan to implement the recommendations the Commission was in agreement with. f. Runway 07 project—The Commission will interview three engineering firms on October 2. If a selection is not made on October 2,the Commission should make a final selection on October 9. The firm selected will be the engineering firm for the entire project,from design to construction oversight. g. Fuel flowage fees—This was requested to be on the agenda as a result of the discussion at the last meeting concerning increasing revenues. h. Civil Air Patrol lease—The Civil Air Patrol is leasing office space in Building G. This is a two-year lease. A copy of the proposed lease is in the packet. i. The FY 2005 budget proposal from the Finance Department is in the packet. As you are aware,there is not much flexibility in the budget this year. The operating budget is similar to last year. The Commission will need to decide what capital projects to request funding for from the City Council. MINUTES IOWA CITY AIRPORT COMMISSION THURSDAY,SEPTEMBER 11.2003—5:45 P.M. IOWA CITY AIRPORT TERMINAL MEMBERS PRESENT: Michelle Robnett,Rick Mascari,Randy Hartwig,Baron Thrower STAFF PRESENT: Sue Dulek, Ron O'Neil CALL TO ORDER: Chairperson Thrower called the meeting to order at 5:45 p.m. APPROVAL OF MINUTES: Dulek suggested a couple of typographical changes. She said the August 14 minutes should include the exact language of the motion to change the by-laws. The minutes of the July 15 and August 14, 2003,Commission meeting were approved with the corrections. AUTHORIZATION OF EXPENDITURES: Mascari had questions about several of the bills. Mascari made a motion to pay the bills. Hart-wig seconded the motion. The motion passed 4-0. PUBLIC DISCUSSION—ITEMS NOT ON AGENDA: No items were presented. UNFINISHED ITEMS FOR DISCUSSION/ACTION: No items were presented. ITEMS FOR DISCUSSION/ACTION: a. Aviation Commerce Park(ACP)—O'Neil said Tracy Overton, from Iowa Realty,had a last minute personal issue he had to attend to and could not be at the meeting. Overton sent a letter concerning some of the questions the Commission had at the last meeting associated with money spent for advertising. His monthly report was in the Commission packet. He sent a copy of an ICAD newsletter that mentioned the Aviation Commerce Park. Robnett said to remind Overton of the funds Governor Vilsak earmarked for business start- ups. She said it might be useful in attracting businesses to the ACP. She said it was a$5 million dollar fund. It is separate from Vision Iowa. It would be available to potential property buyers. Mascari had a flyer from Iowa Realty. He wanted to know if a flyer could be developed and sent out to advertise the ACP. O'Neil said he talked to a contractor that builds steel buildings. The contractor said the same thing that Overton has told the Commission,that he thought there is an upturn in the 1 business. Mascari said he thinks the Airport Manager should contact Iowa Realty on a weekly basis. O'Neil said he would contact Overton weekly. Thrower suggested discussing the projects planned for the Airport and how those projects may effect the ACP. Thrower asked if the Commission wanted to discuss the letter from Scott Byers or discuss it with Overton at the next meeting? Mascari requested that Byers be at the next meeting. O'Neil said that by the time the second fill project is completed,almost all the ACP will be out of the 100 year flood plain. This will make the lots more building ready. b. Hangar#32 lease—O'Neil said Iowa City Aircraft Repair would like to negotiate a two- year lease. A copy of the lease was included in the packet. The rent was increased 2%per year. He said he spoke with the tenants and it was acceptable to them. Mascari asked O'Neil what he thought of the lease. O'Neil said he would like to see a less complicated lease,but it was the same lease that the tenant in hangar#33 signed. O'Neil said feedback from the tenants was that the leases are too cluttered. Mascari made a motion for a resolution to accept a lease with Iowa City Aircraft Repair. Robnett seconded the motion and at roll call vote,the motion passed 4—0. c. Obstruction mitigation project- O'Neil said a list of prioritized obstructions was included in the Commission packet. Mitigation of obstructions will start as soon as contractors can be contacted. O'Neil said the MOT grant would not be enough to mitigate all the obstructions. d. Environmental Assessment project—Dick Blum, from H.R. Green, said he contacted the FAA today and they have started the review of the rewrite of the EA. He said that should clear the way for the other projects in the Master Plan. Blum asked if the ACP was included in the flow predictions for Willow Creek? O'Neil said the Corps reviewed the project for drainage and potential wetlands. He said a drainage plan was developed. Blum said he would like to see a copy of the drainage plan. O'Neil said the water flows to the drainage ditch at the south end of the ACP or is captured by the storm drainage system in the street. e. T-hangar leases—O'Neil said the only issue left to decide was what the rent would be for the next year. Mascari and Hartwig did not participate in the discussion because they rent t- hangars. Robnett said,based on discussions from the previous meeting, she thought a 10% increase would be appropriate. She said this would be fair because the hangars vary in rent and it would be an across the board increase. She asked O'Neil what he thought would be fair? O'Neil said that at the last meeting,the Commission discussed generating income from increasing the flowage fee in addition to or in place of hangar rents. O'Neil said Jet Air now pays$.05 per gallon flowage fee and$.05 per gallon for equipment rental. O'Neil said that the flowage fee would need to be negotiated with Jet Air. Thrower asked if there was full occupancy? O'Neil said that of the 64 hangars,there were two or three available in the north buildings. He said there are two tenants that are selling their planes and three potential new tenants. At this point,they are 95%occupied. Thrower asked Dulek about voting on the flowage fee and the hangar rent at the same time? Dulek said they should be two separate issues. 2 Robnett made a motion to increase the hangar rent by 10%. Thrower seconded the motion and it passed 2—0,with Mascari and Hartwig abstaining. O'Neil said he would discuss the flowage fee with Jet Air. Dulek said she would review Jet Air's lease. Thrower said this should be an agenda item for the next meeting. f. ABS Contract Management Process Review Review findings—Thrower said this would be an opportunity to review the findings of the draft report received from Airport Business Solutions. O'Neil said he had e- mailed the report to the Commission,but found out that the City's Information Services has a block on e-mails of a certain size. Although his computer showed it as sent, it didn't make it through the City's server. Mascari said he read the report and asked O'Neil if there was a personality conflict between him and Hodges,the author of the report? O'Neil said he read the same thing from the report and does not know where that came from. O'Neil said he has only talked to Hodges for a short time when he was here and then a couple of times on the phone. Mascari said ABS said there was information they couldn't get from the manager. O'Neil said one of the things specifically mentioned was a copy of Jet Air's lease. O'Neil said that he not only sent them a copy of the lease with Jet Air, he sent a copy of the old FBO lease with Iowa City Flying Service. O'Neil said that the form that ABS wanted the financial information in was not the same form that the City provides. He explained that the City Finance Department and Accounting Department were the Airport's source for accounting and finance and scheduled a time for ABS to meet with Kevin O'Malley. O'Neil said he has access to the budget on line and can track the budget on a daily basis. The Finance Department would have archived budget numbers. Mascari said the report said the Airport needs to develop Minimum Standards. He said he and Mark Anderson were the subcommittee that developed the Standards. O'Neil said that is one of the documents he gave ABS when they were here for the first on-site visit. O'Neil said he did not receive a list of requested documents until ABS was about 65 days into their 90 day time period for producing the draft report. He said when Michael Hodges was here,he gave him information he thought would be helpful, such as the Minimum Standards,the City Code,and the State Code. Mascari said the report says there is a lack of communication between the Commission and the Council. Mascari said he remembers mentioning at a Council meeting that he thought the City Manager should attend some of the Commission meetings. The report recommends that the City Manager should be a member of the Airport Commission. O'Neil said he told ABS that he doesn't think that is legal. Dulek said Council policy is that City employees are not to be members of boards or commissions that they would have direct contact with. Mascari asked about an e-mail received from ABS that was critical of the Airport Manager. O'Neil said he thinks that was a result of a comment he made to a newspaper,stating that he thought,as did the majority of the Commission and Council,that a MI draft report was due at the end of 90 days. ABS said they thought only a summary report was due. Robnett said she told the newspaper the 3 same thing. Mascari said that all the items and inaccuracies has put a question mark on the report. Robnett said she agrees, especially as far as the finances. She said the Airport comes in on budget every year and she thought O'Neil managed it well. She said it is a slim budget and she didn't agree with the analysis by ABS. She said she likes some of the ideas but does not think an FBO manager would do all of the management work for the$12,000 ABS estimated. Many of the revenue increases are not justified. The increase in fuel sales generated by an ILS does not take into account the cost of installing an ILS. The economic growth factor for this area does not match the projected income growth. Robnett said she did like some of the ideas,such as hosting the media for an event. She said attracting student pilot starts is not as easy as they made it sound. The marketing wasn't added as an expense. Thrower asked if there was a consensus that the financial analysis was not complete. Mascari said he agreed with Robnett in improving the marketing of the Airport. He said there are a lot of ideas that need to be looked at. He said there are other ideas that aren't very good. O'Neil said he discussed the report with Jet Air. He asked how management and maintenance is done in Galesburg? Harrol Timmons said that someone in Public Works does the paperwork,management, grants,etc.There is someone from Parks that does the mowing and the Streets Department cleans the runways. The only difference from Iowa City is that the City employees are from different departments and not assigned to the Airport. Mascari said one thing that he would like to pursue was a mention of a land swap. He said if the Commission took two or three lots and turned them over to the City, in exchange for the money owed on the hangars,the Commission would come close to breaking even. Robnett said she would suggest the Council change the Airport from an enterprise fund to a general fund, such as they did recently with Transit. She said it might change the expectations,although the goal would still be to work toward self- sufficiency. O'Neil said there are some factual errors in the report. He said,as an example,that ABS said the Commission spent$5 million dollars on the ACP infrastructure. O'Neil said there were several pages dedicated to how to hold an open house. O'Neil said the annual fly-in and open house hosted by the Commission and SERTOMA is one of the more successful in Iowa. Mascari asked about the number of operations? O'Neil said the number of operations is counted and published by the IDOT. The numbers ABS used were numbers given to the Airport by the IDOT. O'Neil said the DOT places counters on the runways for a week,four times a year. The number of operations is projected from those counts. The IDOT sent reports directly to ABS. 4 ii. Actionable recommendations— Chapter 1 Thrower said there were two action items. The first dealt with increased involvement with the business community. He said that without any details in the report,he is assuming this referred to organizations like ICAD and the Chamber. Hartwig said the idea has merit and he thinks they are already doing that. He said he knows O'Neil was speaking to a group from the Chamber just last Tuesday. O'Neil said he does not turn down an opportunity to explain the Airport to groups,although he does not get asked that often. Robnett said ICAD would be a good group to talk to and she would volunteer to go with him. Some groups don't have speakers at their meetings. Thrower said the Commission should lay out a plan of which groups they would like to visit with. The second action item was to increase the interaction with the City Manager. Thrower said he felt there was a direct channel to the City Manager through the Airport Manager. O'Neil said he meets weekly with the rest of the Department Directors,usually to discuss upcoming Council meetings. O'Neil said that since the Commission meeting with the Council a year ago,he has provided the City Manager with information about the Airport on a more frequent basis. He said he provides the City Manager with a copy of the Commission's information packet so he is aware of issues being discussed by the Commission. Thrower said there is a unique relationship between the City Manager and the Airport Manager and it is a potentially a very positive relationship. The City Manager has a good perspective on what is going on in the City and Johnson County. O'Neil said the City staff meetings involve going over projects that the City is involved with as they relate to Council action. Mascari said the interactions with the City Manager should be documented in writing. O'Neil said memos sent to the City Manager discussing the Airport are always copied to the Commission. Mascari said he would like to see all conversations with the City Manager documented so the Commission has a record of the contacts. O'Neil said that could be done. Chapter 2- The first action item is better record keeping. Thrower said this is something that needs more detail from ABS. Thrower asked if there is scheduled maintenance or is it handled if a problem develops? Thrower asked if it would be beneficial to have more preventative maintenance contracts? O'Neil said they have a couple of maintenance contracts,but experience would suggest not spending money on the service contract and repair things as they need it. O'Neil said the City has an HVAC contract and elevator maintenance. Mascari asked where the Airport might consider using a service contract? O'Neil said there aren't too many areas that would apply,maybe the self-service I OOLL fuel pump. He said they do routine inspections of the Airport facilities and grounds. He does not know if paying for an outside service contract would be beneficial. A second action item was to continue to monitor rates and fees at comparable airports. Thrower asked O'Neil if that was done? O'Neil said rates at other airports are reviewed when there is an opportunity to change rates and fees. Continually monitoring rates on an annual or quarterly basis would not be productive if Iowa City's rates were locked in by leases. Robnett said she knows that in the past,the Commission has compared rates when negotiating leases. She said on a major lease, 5 it might be good to have a professional appraiser value whatever property is being leased. The next action item suggested playing a stronger role in economic development of the area. Thrower said that is hard to argue against. He said the Commission might want to lay out a more specific course. Thrower said the next item,monitoring demographic business and University activity for aviation opportunities,is like the item before it. It is obvious the Commission should do this. Robnett said with the University being a research school,and cutting classes to meet budgets,it would be difficult to get the school interested in teaching aviation. She said there might be more success getting a community college interested in offering aviation classes. Robnett said that there might be an opportunity to foster more cooperation with the Daily Iowan to write positive articles about the airport and aviation. Mascari said he thought Iowa State offers aviation as a class. Robnett said they do,through their Engineering School. She said Iowa State is more applied engineering than Iowa. Iowa's is research based. Robnett said maybe the University would be interested in some of the property is the Aviation Commerce Park. Thrower said maybe Kirkwood College would be interested in being more involved in aviation at the Iowa City campus. Robnett said it would be great to have private and instrument classes,as well as A&P classes. Mascari said he thought the FBO had tried that with Kirkwood in the past. Thrower said the last action item for Chapter 2 was covered in previous discussions. Chapter 3—The first action item was that the FBO/Manager should take a more active role in management and development of the airport. Thrower said this issue was covered as part of the opening review of the findings. Mascari said that the Airport Manager is essential when it comes to obtaining grants and doing the day to day maintenance. He said he would not be comfortable having the FBO doing those things for the Airport. Thrower said the question is would the City be willing to pay the amount of money needed hire the resources to write grants comparable to the resource they already have in the airport manager? Robnett said the FBO could be asked how much they would charge to do different duties at the Airport. Mascari said the Airport needs a person to carry out the ideas and objectives of the Airport. He said it is important to maintain a manager. Hartwig asked if there isn't some conflict with the FBO being the manager? He said that is one of the reasons the City and Commission wanted to separate that in the past. O'Neil said there were several reasons for the City wanting their own manager, the increasing conflict of interest being the last straw. He said ICFS was paid several thousand dollars per year,plus income from the t-hangars. Hartwig said you need both the FBO and a manager,but they need to work together. Thrower said you could contract out management services,but have you saved any money in the end? Mascari asked Harrol Timmons how they operate in Galesburg. Timmons said he used to be the airport manager,but not any more. He said the official manager is in the Public Works Department and does the paperwork. A city park employee does the mowing. The City street employees plow the runways. Mascari asked if plowing the airport was a priority? He said it is a priority basis for two or three trucks. Timmons said Galesburg also has a pretty sizeable Street Department. Mascari 6 asked about the daily management of the airport? Is it done by City staff? Timmons said it is now. They do not have an airport commission. As far as revenue,he pays hangar rent similar to the way he does in Iowa City. All the hangar revenue goes to the City. The airport also has over 400 acres of very good farmland that generates $ 60,000 to$90,000 per year revenue. He said at one time they had airlines,which allowed them to get additional grants to develop the airport. He said he was airport manager until last year. He said the airport does not get charged for other City departments working at the airport. Mascari asked if the airport is an enterprise fund? Timmons said no, it is a very uncomplicated system. Timmons gave a brief history of the Galesburg Airport, including the City trading the old airport site in town for a 600+acre site at the edge of town. Mascari thanked Timmons for his information.He said there are several things at Galesburg that help the airport's budget. Number one, it is not an enterprise fund. Number two,there are no interdepartmental loans to repay and no charge-backs. He said Iowa City's budget would be better balanced if the situation were the same as in Galesburg. Timmons said there has always been a cooperative effort within the City towards the airport. Thrower said the next action item said to begin implementation of the suggested new organizational recommendations. He said there is no consensus from the Commission to act on that recommendation. He said that item can be pulled off. Robnett said if the Council was interested in pursuing this item,they could develop an RFP to develop a cost comparison. The next recommendation was continued oversite of the Airport by the Airport Commission. Thrower said that is not an actionable item by the Commission. The fourth action item is that the City Manager should maintain a full-time position on the Airport Commission,as a representative of the Mayor's administration. Thrower said this does not appear to be an actionable item. Make adjustments to the lease agreements is the next item. Thrower said there are efforts underway in that regard. Thrower said the efforts for aggressive joint marketing will be discussed later. He said there has been some discussion to that in relation to the Aviation Commerce Park. The next item is to restructure advisory and communications distribution to City leaders. Thrower said, simply put,this is as simple as keeping everyone briefed. Mascari said this involves the Commission reporting regularly to the Council. He said there should be a renewed effort to do this. Thrower said the Mayor and at least one of the Council members were at the fly-in breakfast. The management team needs to be able to manage several goals simultaneously was the next item. Thrower said he thought O'Neil multi-tasked very well. 7 The ninth item was to seek development and installation of a precision landing approach. Thrower said there is a runway extension project and an obstruction mitigation project currently going on. He said he does not know if ABS was aware of those projects in the context of this statement. Mascari said Council and Commission members visited with the FAA in Kansas City to discuss this issue. An equipment manufacturer spoke at a Commission meeting. Robnett said the Commission also informed the Council that the United hangar needed to be moved because it was an obstruction to implementing the Master Plan. Robnett said the preliminary numbers generated by H.R. Green should be sent to the Council. O'Neil will send that information to the Council. Blum, from H.R. Green,said the report says that Runway 17/35 will close when the obstruction mitigation project is completed and an instrument approach is installed. He said it was his understanding that the runway would be closed when the extension of Runway 07/25 is completed. Mascari said the thought the runway would remain open until there is a replacement approach on Runway 25. O'Neil said that issue should be resolved. Blum said the Master Plan identifies the closing timeframe as when the extension is completed. Hartwig asked Timmons what his view was of having an instrument approach? Timmons said that increasing the runway length and an ILS would double the jet fuel sales. Timmons said the runway length is the most important project. Mascari asked Timmons about a WAS approach? Timmons said it would be several years away. Hartwig said he thought the physical installation of the light system might be difficult. Blum said the esthetics have not been discussed. Robnett said the Commission needs to determine how realistic getting an ILS is. She asked O'Neil how likely it would be to get funding for an ILS? O'Neil said the Commission is getting conflicting information from the FAA. The division that designs and installs the instrumentation says it can be sited in Iowa City. The Planning and Programming division has indicated that it is not a priority for funding in Iowa City. Robnett said ABS left out funding for an ILS in their analysis. Mascari said one problem to solve is how to get the FAA to pay for maintaining an ILS. He said this would be$60,000 to $70,000 per year. The next recommendation is to maintain a high level of safety and security. O'Neil said he met with TSA and IDOT to discuss upcoming safety and security issues. O'Neil said there are no mandates at this time. He said a lot of the things being recommended because of September 11 were already being done at the Airport. He said this would include having lockable hangars,fencing around the Airport,and controlling access to the airside of the Airport. He was told that Iowa City is ahead of many airports in eastern Iowa as far as safety and security are concerned. The last action item is to provide excellent service. O'Neil said he believes this is absolutely an example of a joint effort between the City and the FBO. The tenants on the field are the Commission's customers. Jet Air has an excellent reputation for customer service. Chapter 4—The first item was to adopt a leasing policy. Thrower said that ABS included a template. O'Neil said many of the suggestions in this section are things the Commission is doing. They do not have a formal leasing policy or rates and 8 charges policy,but they do have minimum standards,uniform lease language,and security deposits. O'Neil said the outlines given were a good starting point to develop policies. He said the examples included in the report were probably adopted from AAAE or some other organization. The sixth action item is to prepare and maintain emergency phone numbers and addresses for all tenants. O'Neil said he has phone numbers for the tenants,but not as an emergency document. Thrower said this could be an actionable item. The last item was to negotiate a separate operating agreement with the FBO. Thrower said this had been discussed earlier and the idea rejected. Mascari asked what documents ABS received? O'Neil said he sent everything they requested that he had, including the Minimum Standards. Mascari wanted to know why ABS said they need to develop Minimum Standards? Thrower said it was not because it wasn't provided. Chapter 5—Robnett said that she thought there should be more money in the budget to send O'Neil to more conferences. O'Neil said he has tried to go to one national conference a year. He said that as far as networking is concerned,the FAA conference in Kansas City and the Iowa Aviation conference are very important. Robnett said education is very important in keeping the Airport proactive. She said this is well-spent marketing money. O'Neil said AAAE has conferences for airport management and owners and NATA is the national organization for FBOs and aviation businesses. Both sponsor national conferences Timmons said that in Illinois there is an annual conference. O'Neil said Iowa does same thing and the FAA,the DOT,the Iowa Public Airports Association and airport operators are invited. Robnett said she recommends going to national conferences. She said most of the conferences she has been to are invaluable. Another item was to conduct surveys. O'Neil said the IDOT is going to provide posters and forms to collect data on who is using the airports in Iowa and what their reasons were for being in the individual communities,such as business,recreation, etc. Chapter 6- The first item is to reduce and/or eliminate tax subsidy to the Airport. Mascari said the FAA grant assurances obligate the airport to work towards self- sufficiency. The next item is to increase t-hangar rates and flowage fees. Thrower said this has already been discussed. Item three was to increase fuel volumes. Thrower said increasing the runway length and installing a precision approach should increase fuel volumes. Mascari said some of the increase is up to the FBO to market their services. There could be football game-day specials. Hartwig said traffic is not as heavy as it used to be on game 9 days. O'Neil said it depends on the weather,whom the University is playing and what kind of season the team is having. The next action item was to restructure management to reduce overhead. Thrower said this is a reoccurring theme in the report. Mascari said the Commission might want to think about taking a look at the possibility of maybe reducing the maintenance worker to part time. Action item five was to develop milestone incentives for the FBO. Robnett said she thought there was some conflict with this. She said ASB suggested that the FBO get more active and generate more income and share that profit with the Commission. She said she doesn't think any FBO would agree with that idea. Thrower said the information shared by Timmons about the tenant constructing a building with their own money and the City securing low cost financing may have some possibilities. Mascari said something happened similar to that in Iowa City. O'Neil said that the FBO built an addition to a building. The City told him that if he built the building and finance it and they would pay the monthly mortgage payment. He would pay the City rent for the building. It will be a 30-year agreement.Eventually,the FBO,who was then the manager,convinced the City that instead of paying rent,he would just pay his own mortgage payment. Simplified,he ended up with his rent fixed for 30 years. The FBO was supposed to do the maintenance on the part of the building he built, and the Airport was to maintain the old part of the building. The building was to be in good repair when the Airport took over the maintenance after the 30 years. It didn't work out. O'Neil said a better agreement would need to be written if the Commission wanted to explore an option like that. Another action item was to improve financial tracking of revenues and expenses. Thrower said this was covered earlier. O'Neil said that after Commission discussions with the Council,the Accounting Department now does the billing. Thrower asked O'Neil if he could run a report that would tell if someone was behind in their rent? O'Neil said he could run a report,but does not do that on a regular basis. He relies on the Accounting Department to let him know if they are having trouble collecting rent and if they needed him to intervene. Thrower said the review of the direct and indirect economic impact of the Airport was discussed earlier. Robnett said the Commission might have to hire someone that is an expert in the field to conduct an economic impact report. Action item eight suggests negotiating a land swap of industrial park property. Mascari and Robnett said they liked that idea. Thrower said that is an actionable item. The next item is to complete a facilities audit and facilities need audit. Thrower asked if there was a need for an outside audit. Mascari said the budgets have always been in order. O'Neil said the City does an audit every year. Occasionally,capital projects are selected that they would like to audit in more detail. There have been Airport projects selected and there have not been any problems providing additional information of the accounting on the projects. Thrower said facilities needs are assessed with the annual budgets. Mascari said additional hangar space is built only after there is a big enough waiting list. O'Neil said airside needs are discussed in the 10 Master Plan. O'Neil said the Commission would be working on next year's budget soon. Mascari asked about maintaining the asphalt by the north t-hangars? O'Neil said that the best solution would be to replace the asphalt. Because the Commission does not have the funding for this, O'Neil recommended shiny-coating the asphalt. It has been put in the budget the last couple of years,but has been removed at the Council level. O'Neil said the budget would be on the agenda the next month. The last item listed was to complete an energy and environmental study. O'Neil said the Airport, in conjunction with the runway project,has been working on an environmental study for the last 10 months. An energy audit was conducted by the City a few years ago and Mid American routinely conducts energy audits for their customers. They compare the Airport's energy use as compared to other commercial customers. Mascari said this report is listed as a draft. He wanted to know if there were going to be changes? Thrower said the report was presented to the Commission. ABS will come to town and discuss the report with the Council and Commission and clarifications can be included. iii. Determine next steps—Thrower said the purpose of the draft is to provide for an interaction between the Commission,the Council and ABS. The document logically describes key elements of concern. How does the Commission want to focus the discussion and ask questions? Mascari said he would like to review the items with ABS before meeting with the Council. He would like to have a meeting with the whole Commission as opposed to a subcommittee. O'Neil said Michael Hodges plans to be in Iowa City about an hour before the meeting on September 22. Thrower said the Commission could meet and have a conference call with ABS. Thrower asked O'Neil to schedule a meeting for September 16 at 5:30 p.m. Robnett said ABS did not talk to the Commission members individually and she would like more interactions. She said some of the marketing information would be helpful. The Commission directed O'Neil to have at least Michael Hodges available for the conference call. O'Neil said he would explain that the Commission wants some clarification on some of the action points so they will be able to explain things to Council. g. Runway 07 project i. Timeline—O'Neil said he gave the Commission a memo outlining a timeline for selecting a consultant. O'Neil said there were six responses to the RFQ. He would recommend shortening the list to three and interviewing the finalists. Thrower said he would need some type of criteria to short-list the companies. O'Neil said he would recommend using the FAA consultant selection criteria. He included a copy of the criteria in the Commission's information packet. O'Neil said he would shorten the FAA criteria list and put it in a form that is easier for the Commission. Thrower asked the Commission if they wanted O'Neil to 11 provide them with a short-list of firms to interview? Mascari said that is what he would prefer. Robnett said she agreed. O'Neil said he has read a large number of proposals for projects,both for the Airport and on committees for the IDOT and he thought the six proposals,as a group,were some of the best he had seen. He said any one of the firms could do the project. He said the consultants all have spent time at the Airport, getting an understanding of the project and trying to understand exactly what the Commission wants to accomplish from the project. Thrower said he knows the City builds projects all the time and wondered if the City has some criteria that could be used to supplement the FAA criteria? O'Neil said he would contact Public Works or Planning for criteria. The Commission asked O'Neil to utilize downtown resources and give them a list of three to interview. iv. Selection process—O'Neil said he would send the Commission a list of three companies. He said the Commission could conduct telephone interviews,have a subcommittee interview and make a recommendation or have the whole Commission interview. In the past,the entire Commission has interviewed the firms. Thrower asked how the criteria for narrowing the list are any different than selecting the final firm? He wanted to know if the Commission should be sensitive to price, or if quality was the most important factor? O'Neil said the written criteria would be the same,but the personal contact would give the Commission additional information. O'Neil explained the FAA criteria and said price can not be a factor. Price can be discussed only after a selection is made and the contract is being negotiated. If the Commission can not negotiate a contract with their first choice, they must move on to their second choice. The FAA wants the selection to be on quality,not price. Thrower said if you had to re-advertise because you could not come to terms on a contract with any of your firms, it would send a message to those that apply again the second time of what you expected. O'Neil said that it has been his experience that firms that apply for FAA projects have done their homework and know how much the project is worth. There is an industry standard on what their fees will be. The FAA also reviews the contracts and the fees and will let the sponsor know if they fees are out of line. Thrower asked what would separate the firms if they all meet the FAA criteria and price can not be considered? O'Neil said it would end up being whom the Commission was most comfortable with in the interview. Mascari said it would be a matter of personal comfort and intuition. They all have the basics to offer and each have areas where they are strong. Thrower said he would like to see if there is some other criteria out there to assist them in the selection process. O'Neil said he would try to find some additional criteria. In the past,Mascari said O'Neil has supplied the Commission with interview questions so that the interviews are consistent. Thrower asked if the Commission wanted to have a special meeting or wait until the October meeting? Robnett said they could discuss this at their special meeting on 12 September 16. O'Neil said he would suggest the interviews be limited to 30 or 40 minutes and be a question and answer format. CHAIRPERSON'S REPORT: Thrower said he is very comfortable as chairperson through the meeting with ABS,but he would like to have on the agenda at the October meeting the election of a permanent chairperson and vice-chairperson. O'Neil said the appointment of the new commission member is October 14. COMMISSION MEMBERS'REPORTS: Robnett said she would contact the University marketing department to see if the Commission could get a student team to help with marketing. Mascari asked if O'Neil had done anything with a request from Mr.Hinckley for some dirt near his property. O'Neil said he would take care of his request. Mascari said the Commission needs to look at whether the Airport needs a maintenance worker in order to reduce the budget. O'Neil said the time to discuss it is when the budget is being discussed. It will fit in with the discussion of the business plan. O'Neil said the budget coming out from Finance would have very little flexibility. Thrower said that if the Commission would look at reducing the maintenance worker's time,the work would still have to get done by someone. He said it would be important to address this at budget time because some other department will have to pick up the work. Mascari said it might be a matter of cutting services. Robnett noted that the City has said they were trying not to lay anyone off and the personnel reductions would be dealt with by attrition where possible. ADMINISTRATIVE REPORT: O'Neil said a letter was sent to City Council, explaining the Commission's discussion of the United hangar. O'Neil said he explained to one of the newspapers that the FAA was involved with this project because it is a safety issue,not because the building may have some historical significance. It is complicated by the fact that the hangar is a safety problem and may have significance. The building is an obstruction.It was discussed that the cost estimates generated by H.R. Green should be forwarded to the Council. O'Neil will send a letter to Council with the estimates. A copy of the revised by-laws was included in the Commission packet. The question was raised on whether the by-laws needed to be reviewed by Council. O'Neil said he has discussed this with Dulek and they thought the Commission by-laws were treated like those of the Library and do not go to Council. There was a list of Council candidates included in the Commission packet. An article was included in the packet that included a graph of the per cent of the general fund paid out for each department. The bottom of the graph was the animal shelter,at 1%. The Airport was not on the graph. The amount of funding from the general fund for the Airport is less than 1%. 13 There was an article in the packet about improvements to Council Bluffs. They are a reliever airport. Iowa City looked into being designated as a reliever,but Cedar Rapids is not over capacity. There is a copy of the Iowa Public Airports newsletter in the packet. The Iowa Aviation Conference is in Des Moines on October 16& 17. O'Neil said he explained earlier that ITS has a limit on the size of e-mails going out and that contributed to the delay in the Commission getting the report from ABS. O'Neil said he received a call,asking if the Airport could use up to 130,000 cubic yards of fill. O'Neil said he would find a place for it if the contractor got the bid. Thrower asked if fill dirt is tested before it is placed on the Airport? O'Neil said he would check with Public Works. The last two fill projects were managed by the Public Works Department. O'Neil said he met with officials from the TSA and IDOT. He said he discussed safety with the TSA and airport projects with the DOT. Ron Duffe, from Jet Air,asked to address the Commission. He said that there are areas on the runways that are pooling up during heavy rains. O'Neil said overlays are planned for in the Master Plan. They will depend on FAA funding. Mascari asked about the commercial lots on Riverside Drive? O'Neil said there has been discussion about marketing the property directly south of the entrance,but it has not been a priority project. Thrower said that is mentioned in the Planning Departments South Central District Plan. SET NEXT MEETING: The next regular Airport Commission meeting is scheduled for October 9, 2003,at 5:45 p.m. ADJOURNMENT: The meeting was adjourned at 9:47 p.m. Baron Thrower, Acting Chairperson 14 IOWA CITY AIRPORT COMMISSION October 2003 Airport Expenditures Account 46110 Amount 119185 PMMIC Underground tank insurance 50.00 119186 Seneca Company Cathodic protection test 395.00 119187 RMB Co.Inc Lift station repair 3620.77 119188 Larew Company Bldg E,south unit,air condit. 1303.21 119189 Midwest Janitorial September service 185.00 119190 Verizon August service 1.98 119191 City of Iowa City Sewer&water—Sept service 146.82 The above listed expenditures were approved for payment at the Iowa City Airport Commission meeting on October 9,2003. Chairperson Vice-chairperson AVIATION COMMERCE PARK NM IOWA REALTY COMMERCIAL Status Report By Tracy K. Overton, 319-354-0989 October, 2003 • Executive Summary: There has been a slight increase in the interest level of the ACP land this last month. We have had a few more requests for information than in previous months primarily from area brokers. We remain optimistic that the economy is heading in the right direction and thus soon to follow will be stronger interest/activity in small business development and expansion. An offer to purchase ACP land was received this month and is under review. Administrative Issues: New Issues Old Issues Signage for the main entryway off of Riverside Dr. Marketing Issues: Advertising—We have an ad that will be appearing in the Press Citizen a few times over the next couple of weeks. Prospects No strong prospects at this time. Tracey Overton aviation 5x4 9/26/03 11: AM Page 1 Aviation Commerce Park IOWA CITY • IOWA Commercial Lots Now Available for Sale \ - \ 16 15 14 13 12 11 10 9 8 7 61 R l/r Lp ^' ‘ 4— --'"-----pip 1 5 \\\ 2‘ l l + -- _ rummer ROAD 4 \ c, V4 7- NA IOWAREALTYCOMMERCIAL _ . PRICING: - - Lots 1,7, 8,9,& 12-17 $4.50 PSF `° FOH NIOFIE INFORMATION CONTACT Lots 5,6, 10, & 11 $4.25 PSF " TRACY OVERTON Lots 2,3, &4 $3.00 PSF N 319.354.0989 • Prepared by: Ron O'Neil,Airport Manager,1601 S.Riverside Dive,Iowa City, IA 52246(319)356-5045 RESOLUTION NO. 03-18 RESOLUTION AUTHORIZING THE MAYOR TO SIGN AND THE CITY CLERK TO ATTEST AN AGREEMENT WITH IOWA REALTY COMMERCIAL TO SELL AND/OR LEASE PROPERTY IN THE AVIATION COMMERCE PARK WHEREAS, it is-a goal of the Airport Commission to generate as much income as possible for the Iowa City Municipal Airport, and; WHEREAS, the Airport Commission and the City Council have worked cooperatively to develop a 17-lot commercial subdivision on Airport property, and; WHEREAS, the Airport Commission and the City Council have agreed to contract with NAI Iowa Realty Commercial to sell or lease the property known as the Aviation Commerce Park subdivision, and; WHEREAS,attached, marked Exhibit 1, and incorporated herein is the Listing Agreement that the Iowa City Airport Commission has approved by resolution on January 6, 2003. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF IOWA CITY,IOWA,that the Council approves the attached agreement, and authorizes the Mayor to sign and the City Clerk to attest said agreement. It was moved by Vandarhnefand seconded by Wilburn the Resolution be adopted, and upon roll call there were: • AYES NAYS ABSENT Lehman X Champion Kanner __X_ Pfab Vanderhoef X Wilburn O'Donnell • Passed and approved this7 da January, 2003. Approved by Ernest Lehman, ayor J• ATTEST: J 1f . - C 1. la -3( -o ff Manan arr, City Clerk City Attorney's Office EXHIBIT LISTING AGREEMENT This Agreement is being made and entered into among NAI Iowa Realty Commercial (hereinafter called "Agent"), the City of Iowa City, a municipal corporation, (hereinafter called "Owner'), and the Iowa City Airport Commission (hereinafter called "Commission") in Iowa City, Iowa. RECITALS: Whereas, the Owner desires now to offer the land lots in Aviation Commerce Park(hereinafter called "the lots"or"the Property")for sale as well as for lease contingent upon approval by the Federal Aviation Administration to sell the lots; Whereas,the Owner desires the Commission to recommend to it whether an offer to purchase should be accepted; Whereas,the Owner desires the said lots may still be offered for lease by the Commission with consultation with the Owner, and Whereas,the Agent desires to be the Owner's agent in selling the lots and the Commission's agent in leasing the lots. AGREEMENTS: • NOW,THEREFORE, it is agreed as follows: 1. COMMISSION. The Commission has the sole right and authority to review and approve any land lease transaction. Attached, marked Exhibit"A", and incorporated herein is an agreement for the listing of the lots by Agent 2. OWNER.The Owner has the sole right and authority to review and approve any land sale transaction The City Manager may accept an offer to purchase on the contingency that said offer must be approved by the Owner. The Owner may not enter into a land sale transaction without receiving the Commission's recommendation. If the Owner rejects the Commission's recommendation,the Owner and the Commission shall meet to discuss the potential sale transaction, but the Owner maintains the sole right and authority to enter into said transaction. 3. SALES AND LEASE PROCEDURES. An outline of the land sales transaction is attached, marked Exhibit "B", and incorporated herein, and shall be utilized for the sale of the lots.An outline of the land lease transaction is attached, marked Exhibit"C", and incorporated herein, and shall be utilized for the lease of the lots. 4. AGENCY. Owner hereby employs Agent and Agent accepts such employment by Owner as the exclusive agent with the sole right and authority, to offer for sale and to sell the land, designated as lots 1-17 on Exhibit "D" which is attached and incorporated herein, (hereinafter referred to as the°Property"). • 5. TERM. The term of this Agreement and Agents employment, right and authority shall be extended for 12 months from the last date affixed below. 6. AGENT'S RESPONSIBILITIES.Agent hereby agrees as follows: a. To secure and compile'appropriate and customary written information with respect to the sale of the Property. b. To exert Agent's best efforts to perform its obligations under this Agreement including, but not limited to, enlisting the efforts and resources of Agent's organization, and.to: (i) list the Property for ale with any local or other appropriate multiple listing services; (ii) advertise the Property for sale in a commercially prudent manner. Agent shall advertise the Property at terms and conditions that have been approved in advance in writing by Owner and attached hereto as Exhibit SE". Agent acknowledges that the Owner anticipates recording Restrictions and Covenants and that he will notify potential buyers of said restrictions and covenants. c. To submit monthly progress reports to the City Manager and the Airport Manager by the first day of each month, concerning the status of marketing, interested parties and any negotiations together with current market information affecting the Property. At the request of Owner,Agent shall attend,meetings of Owner relative to the scope of this Agreement, and at the request of the Commission, Agent shall attend meetings of Commission relative to the scope of this Agreement. d. To solicit active cooperation from other qualified brokers in the sale of the Property. e. To use its best efforts to sell the Property at the terms approved by Owner. 7. PAYMENT OF SALE COMMISSION. Agent acknowledges and agrees that Owner shall be obligated to pay sales commissions and fees, as set forth below, only to Agent. Agent shall be entirely responsible for payment and satisfaction of any and all co-brokerage obligations due any other brokers or sales agents working with Agent, or who have procured for Agent, or referred to Agent, a buyer. 8. OWNER'S RESPONSIBILITIES. Owner hereby agrees as follows: a. During the term of this Agreement, Owner shall pay Agent a sales fee per transaction for a Buyer procured by Agent as follows: 7% of the first$500,000 of gross sales price 6%of the second$500,000 of gross sale price 5%of the next$1,000,000 of gross sale price 3%thereafter b. In addition, Owner shall pay Agent a sales fee, as set forth above, for a sale effected by Owner within 360 days following the termination of this Agreement, provided: (i) Agent has previously shown the Property to the buyer; (ii) such buyer is included on a written list of prospective buyers submitted to Owner within ten(10)calendar days following the termination of this Agreement. c. Except as specifically set forth herein, to refrain from negotiations with prospective buyers or their agents and to direct to Agent all prospective buyers 2 • and their agents, and all brokers, and other persons or entities interested in purchasing the Property. d. To cooperate with Agent and to permit Agent to conduct all negotiations and other dealings with all prospective buyers and their agents. e. At the time of settlement promptly deliver a complete abstract showing good and merchantable title to the date of transfer and execute a warranty deed to the property for delivery to the buyer, or enter into a contract for deed. 9. LISTING AGREEMENT WITH COMMISSION. The Listing Agreement entered into between the Commission and Agent on April 5, 2001, is hereby terminated. Agent waives all fees, commissions, and other financial remuneration that it may be due under said agreement, including but not limited to an early termination fee under Paragraph 2 and a commission for leasing lot 10 to Rob Nichols and fully releases the Commission from any and all liability, including all claims, demands, and causes of action of every nature arising out of said agreement. 10. NON-DISCRIMINATION. Agent covenants its employees, and agents shall not discriminate agaihst any person in employment or public accommodation because. of race, religion, color, creed, gender identity, sex, national origin, sexual orientation, mental or physical disability, marital status, or age. "Employment" shall include but not be limited to hiring, accepting, registering, classifying, promoting, or referring to employment. Public accommodation" shall include but not be limited to providing goods, services, facilities, privileges and advantages to the public. Agent shall remain in compliance with all requirements of 49 CFR Part 21, Non-Discrimination in Federally Assisted Programs of the Department of Transportation. 11. TIME OF ESSENCE.Time is of the essence as to this Agreement and each of its terms and provisions. 12. ASSIGNMENT. Agent shall not assign or allow assumption of this Agreement except with prior written consent of Owner and Commission. In the event this Agreement is assigned by Owner in conjunction with the sale of lots, with such an assignment to occur only with the express consent of Agent, Owner shall be released from liability for all matters arising after the effective date of the assignment. 13. NOTICES. Any notice required or permitted to be given hereunder shall be in writing and: As to Owner shall be delivered by: (i) certified mail, return receipt requested; or (ii) prepaid Federal Express or other similar overnight delivery service, in care of City Manager, Iowa City Civic Center,410 E.Washington Street, Iowa City, Iowa 52240. As to Commission shall be delivered by: (i) certified mail, return receipt requested; or(ii) prepaid Federal Express or other similar overnight delivery service, in care of Airport Manager, Iowa City Municipal Airport, 1801 S. Riverside Drive, Iowa City, Iowa 52246. As to Agent shall be delivered by: (i) personal service; (ii) certified mail, return receipt requested; or(iii) prepaid Federal Express or other similar overnight delivery service, addressed to: Tracy K. Overton, NAI Iowa Realty Commercial, 568 Highway 1 West, Iowa City, Iowa 52246. 3 Notice by personal service shall be deemed delivered upon service. Notice by certified mail shall be deemed delivered three business days following deposit of the mailing with adequate postage, addressed to the receiving party's most current address for the purposes of notice, or upon receipt of the certified mailing by the party to whom directed, whichever first occurs. Notice by overnight delivery service shall be deemed given on the next business day following sending of the notice addressed to the receiving party at their most current address for the purposes of notice. Addresses for purposes of notices may be changed by a party from time to time upon providing formal notice of such change to the other party. 14. AMENDMENT. This Agreement may be modified in writing only, duly signed by all parties. 15. APPLICABLE LAW. This Agreement is declared to be a contract of the State of Iowa and shall be construed in accordance with the laws of Iowa. 16. ENTIRE AGREEMENT. All negotiations, considerations, representations and understandings, prior proposals or earlier written documents between the parties as to the sale of the Property are incorporated into this Amendment, which contains the entire agreement of the Parties as to the sale of the Property. The Parties agree and acknowledge that no representations, warranties or agreements, other than as set forth in this Amendment have been made by the parties to each other as to the sale of the Property. IN WITNESS WHEREOF, the parties have executed this Amendment as of the _ day of January 2003. AGENT: WITNESS: NAI IOWA REALTY COMMERCIAL 41 Mo. Tra K. Overto Regional Director COMMISSION: WITNESS: THE IOWA CITY AIRPORT COMMISSION • '"` ��l �"fib'`` Secretary Mark • ••(- on, Chairperson K. 72, ,u a c ua) /`/ 4 COMMISSION ACKNOWLEDGMENT STATE OF IOWA ) )SS: JOHNSON COUNTY ) 4071 On this 9 day of Jcnuar , 29921 before me, St,',drat ror+ , a Notary(Public in and for the State of Iowa, personally appeared Mare Andersen and 'Trac Out...kit , to rso�IIII known,who, being by me duly sworn}�i say thatitthey are the Chair and , reivelW of the Iowa City Airport Commissiomanat the instrument was signed and sealed on behalf of the Commission, by authority of Resolution No. of-f 'I passed adopted by the Commission, on the 7 day of TAaua.VM 0°03 alt12;and that Marls Anits Sb&t and Trac./ a/ r fait acknowledged the execution of the instrument to be their voluntary act anti deed of the Commission, by it voluntarily executed. SONORAE FORT (�— �My Commission Em 1 c� a /- u* 3-7-0 3 Notary Public in and for the State of Iowa OWNER: • WITNESS: THE CITY OF IOWA CITY • Mari Karr, City Clerk meat Lehman, Mayor CITY ACKNOWLEDGMENT STATE OF IOWA ) )ss: JOHNSON COUNTY ) dae3 On this /3 rS day of eraatuaa 2O6s, before me, the undersigned, a notary public in and for the State of Iowd personally appeared Ernest W. Lehman and Marian K. Karr,to me personally known, who being by me duly sworn, did say thatthey are the Mayor and City Clerk, respectively, of said municipal corporation executing the within and foregoing instrument; that the seal affixed thereto is the seal of said municipal corporation; that said instrument was signed and sealed on behalf of said municipal corporation by authority of its City Council; and that the said Mayor and City Clerk as such officers acknowledged that the execution of said instrument to be the voluntary act and deed of said corporation, by it and by them voluntarily executed. Smuts F.4.06 Notary Public in and for the State of Iowa Approved by SONDRAE FORT Cmunisaion Number 159701 City Attorney's Office ry ;p"Expiresg 5 EXHIBIT A This governs the legal relationship (hereinafter called "Lease Agreement") between NAI Iowa Realty Commercial (hereinafter called "Agent") and the Iowa City Airport Commission (hereinafter called "Commission")with regard to leasing lots 1-17 in Aviation Commerce Park as designated on Exhibit"C" of the Listing Agreement(hereinafter called "the Property"). • 1. AGENCY. Commission hereby employs Agent and Agent accepts such employment by Commission as the exclusive agent with the sole right and authority, to,offer for lease and to lease the rentable portions of the Property Commission acknowledges that Tracy Overton is its project representative. Agent shall assign Tracy Overton to this project through the expiration of the original term of this Lease Agreement. If Agent assigns a person other than Tracy Overton to this project, said person must be acceptable to Commission. If said person is of equal competence and experience to Tracy Overton, but is not acceptable to Commission, Commission may elect to terminate this Lease Agreement, and if Commission does elect to terminate, Commission shall pay to Agent an early termination fee of $2,500, and not the full early termination fee of $5,000 provided in Paragraph 3 below. If said person is not of equal competence and experience to Tracy Overton and is not acceptable to Commission, Commission may elect to terminate this Lease Agreement without incurring any early termination fee. 2. TERM. The term of this Lease Agreement and Agent's employment, right and authority shall commence upon execution of the Listing Agreement and terminate upon termination of the Listing Agreement, unless sooner terminated by a ninety(90)day written notice by one party to the other party, with or without cause. In the event the parties continue to observe this Lease Agreement following the expiration of its stated term without formally renewing the Lease Agreement, it shall be deemed to continue on a quarter to quarter basis subject to the ongoing termination rights of the parties. 3. EARLY TERMINATION. In the event the Commission elects to terminate this Lease Agreement prior to the expiration of the original term, then Commission shall pay to Agent, at the time of notice,a$5,000.00 termination fee, except as provided in Paragraph 1 above. In the event the Agent elects to terminate Commission prior to the expiration of the original term, Agent agrees to furnish, upon demand by the Commission and without cost, copies of all basic notes and sketches, charts, computations, diagrams, charts, maps, and marketing materials prepared or obtained by Agent pursuant to this Lease Agreement, without restrictions or limitation as to the use relative to the marketing of the Property. In such event,Agent shall not be liable for the use of such documents by the Commission or others. 4. AGENT'S RESPONSIBILITIES.Agent hereby agrees as follows: a. To secure and compile appropriate and customary written information with respect to the leasing of the Property. b. To exert Agent's best efforts to perform its obligations under this Lease Agreement including, but not limited to, enlisting the efforts and resources of Agent's organization, and to: (i) list the Property for Lease with any local or other appropriate multiple listing services; (ii) to place the appropriate signage on the Property; and (iii) advertise the Property for lease in a commercially prudent manner. Agent shall advertise the Property at monthly rentals and terms that have been approved in advance in writing by Commission. c. To submit written monthly progress reports to Commission by the first day of each month beginning February 1, 2003,concerning prospective tenants and the status of any lease negotiations 'together with current market information affecting the Property. At the request of Commission,Agent shall attend meetings of Commission relative to the scope of this Lease Agreement. • d. To solicit active cooperation from other qualified brokers in the leasing of the Property. e. To use its best efforts to lease the Property at the rentals and upon the terms approved by Commission. f. Agent will not be held liable for the performance of any term, covenant or condition contained in any agreement pertaining to the Property except as set forth in this Lease Agreement and in any other written Lease Agreement between the parties. 5. PAYMENT OF LEASING COMMISSION. Agent acknowledges and agrees that Commission shall be obligated to pay leasing commissions and fees, as set forth below, only to Agent. Agent shall be entirely responsible for payment and satisfaction of any and all co-brokerage obligations due any other brokers or leasing agents working with Agent, or who have procured for Agent, or referred to Agent, a tenant. 6. COMMISSION'S RESPONSIBILITIES. Commission hereby agrees as follows: a. During the term of this Lease Agreement, Commission shall pay Agent a leasing fee equal to twenty-five cents ($.25) per gross square foot of land area under lease. The leasing fee shall be due and payable in three (3) equal annual installments with the first installment due at the time of lease execution and each of the two remaining annual installments due on/or before the subsequent lease execution anniversary dates. b. In addition, Commission shall pay Agent a leasing fee, as set forth above, for leases executed by Commission within one (1) year following the termination of this Lease Agreement, provided: (i) Agent has previously shown the Premises to that tenant; (ii) Agent has had active negotiations with tenant; and (iii) such tenant is included on a written list of prospective tenants submitted to Commission within ten (10) calendar days following the termination of this Lease Agreement. c. Except as specifically set forth herein, to refrain from negotiations with prospective tenants or their agents and to direct to Agent all prospective tenants and their agents, and all brokers, and other persons or entities interested in leasing the Premises. d. To cooperate with Agent and to permit Agent to conduct all negotiations and other dealings with all prospective tenants and their agents. All tenants, lease terms, and lease conditions shall be approved by Commission; with all leases to be signed by Commission upon Commission's lease form. e. Reasonable and customary expenses incurred by Agent in providing leasing services to the Property shall be at Agent's sole cost and expense. [given that it is doubtful that lots will lease, as opposed to sell, it seems to me that such costs should be dealt w/in the listing agreement itself] 7. COMMISSION INDEMNIFICATION OF AGENT. Commission will indemnify, defend and save Agent safe and harmless from all claims in connection with the Property and from liability for damaged property and injuries to or death of any person, except in those cases where the damage to property or injuries or death to persons is caused by, or contributed to, Agent's willful malfeasance, bad faith, reckless disregard of duty or negligence. EXHIBIT B Aviation Commerce Park Lot Sale Procedures After Purchase Offer has been received by Agent: 1. Agent delivers copy of Offer to City Manager and Airport Manager. 2. Agent works with Airport and City Manager on negotiating favorable terms and conditions, including but not limited to Counter-Offers. 3. Agent forwards copy of final terms and conditions to City Manager and Airport Manager. 4. City Manager may accept offer contingent upon approval by City Council. 5. Agent presents Offer, whether or not accepted by City Manager, to Commission for its recommendations. 6. Commission makes recommendation to Owner. 7. If Owner disagrees with Commission's recommendation, Commission and Owner shall, within a reasonable period of time, meet and discuss said offer prior to Owner's final action, but Owner retains sole right to accept or reject offer. 8. Owner votes on whether to accept offer. EXHIBIT C Aviation Commerce Park Lot Lease Procedures After Lease Offer has been received by Agent: 1. Agent delivers copy of Offer to City Manager and Airport Manager. 2. Agent works with Airport and City Manager on negotiating favorable terms and conditions, including but not limited to Counter-Offers. 3. Agent forwards copy of final terms and conditions to City Manager and Airport Manager. 4. Agent presents Offer to Owner for its recommendations. 5. Owner makes recommendation to Commission. 6. If Commission disagrees with Owner's recommendation, Commission and Owner shall, within a reasonable period of time, meet and discuss said offer prior to Commission's final action, but Commission retains sole right to accept or reject offer. 7. Commission votes on whether to accept offer. ,, I A lLP UUUIYIJ1UN in w1J 1-4 Lir manna .,....�._,_ �e: us mamas _,517S. �T-IOWA cm, -tre,3,—, Iowa City, Iowa , • PLAT PREPABFD BY: OW!R/SB oma OflEWS AT7 106 CONSULTANTS INC. City of Ion City City Attorao 1017 SOUTH.GUBIIR SC 410 L W shin`ton Street 410 E link GI - • ion CITE IOTA 62240 love City, Ion 62240 Ion City, Ic 1-. 1-1 • CO 1___.o-4 PC 1.61 I'--1------ -1.711-7--7-1.-- -:HI ; 1 _r_ _f + niiscen..........7 _ v. 19 Z$€ I ! J 5 . 1 . MTh .. I 1 awing- =not 1 \1 11-40157 I 14 13I IMK0.MMMMIN.FWiu M 47! \ \ ,:: . 4: � _555Y 4.34.1.15'To-pf • Ji}A(i1 LgN1YmoronYY or= Tw7W was P145AToys up _'• I. 5 / ....,C,,,,,-.1...-_ and__(l___-y ,ti•.___1r _ la -11 46,- _ 00,4 i61 I t AIRPORT. m gVdA1K II INIDEVELCAMT adetarral56 F , O;M7rt_ lei , 1 4 .} ' • OTai C• nl4 s E�• T 00 =t....„.. •-••• �gm.OT 7A 6 AA's _ u.rralY la/ I foo xw�Rmo WT dl • ¢gyp �q , 100 yam ruxo UNT v a ` , - OUILOT4A - I NH AIL . EICUTHEASI CONAN if -- -- DE IM 3C001 S➢1RIL TIW-e1i Nl¢N TAOWT Rae l'1T Kai 3:1 AT IM Me i W: LAMAS/ O'Na1,of 9 TNnte3A! • 0.214.11' that ce-No 173tW , teNaefRai County NO LEGEND SAND - NOTES oublat to 1 EXHIBIT "E" AVIATION COMMERCE PARK Pricing Model _ Lots SizeISF price pit. Purchase Price lease Rate 1 60,076 $4.50 270,342.00 50.29 2 193,482 $2.65 512,727.30 $0.14 3 275,603 $2.65 730,347.95 $0.14 4 313,924 $2.65 831,898.80 $0.14 5 137,904 $3.00 413,712.00 $0.29 6 94,754 $3.30 312,925.09 $0.29 7 42,253 $4.15 175,349.95 $0.29 8 54,250 $4.15 225,137.50 5029 9 53,761 $4.15 223,161.91 $0.29 10 92,230 $3.30 304,359.00 $0.29 11 63,429 $3.50 222,001.50 $0.29 12 35,331 $4.10 144,857.10 $0.29 13 39,280 $4.10 161,048.00 $0.29 14 39,454 $4.10 181,761.40 $029 15 39,423 $4.10 161,634.30 $0.29 16 38,919 $4.10 159,567.90 $0.29 L 48.828 $4.00 188,512.00 $0.29 TOTALS 1,620,701 $ 5,197,343.50 Average gross price per sq.ft $ 3.21 The above pricing is valid as of December, 2002. Pricing is subject to review and adjustment at Commission/Owner's discretion. • 12 ' IOWA CITY MUNICIPAL AIRPORT C 1801 South Riverside Drive Iowa City, Iowa 52246 Office Phone(319) 356-5045 s September 29, 2003 Airport Business Solutions Ms Bobbi Thompson 17040 Pleasure Road Cape Coral, Florida 33903 Dear Bobbi: Attached are several items of information we discussed last week. Let me know if I should send copies to Michael Hodges and Randy Bisgard or if you will share the information with them. 1. A typical T-hangar lease 2. Iowa City Code information 3. The current FRO lease with Jet Air 4. State Code information When you have time, give me a call and we can discuss the presentation you gave to the Council and Commission. I would be interested in your reaction to the discussion. If you have questions about this information, please contact me at (319) 356-5045 or e- mail at ron-oneil(c iowa-citv.orq Sincerely, O Ronald J. O'Neil Airport Manager Cc: Airport Commission t-' G IOWA CITY MUNICIPAL AIRPORT 1801 South Riverside Drive Iowa City, Iowa 52246 Office Phone(319) 356-5045 June 13,2003 Airport Business Solutions Ms Bobbi Thompson 17040 Pleasure Road Cape Coral, Florida 33903 Dear Bobbi: I have started on the list of information you and Randy requested. Included in this information is: 1. A list of 2003 leases 2. A typical T-hangar lease 3. The old FBO lease with Iowa City Flying Service (']j The current FBO lease with Jet Air 5. Three versions of the lease for corporate hangar#32 that were discussed at the meeting you attended. The first one is similar to the lease the tenant was familiar with, with just the term dates and rent changed from the last lease. The second one is a lease the Commission approved in January and the third is the same as the second, with comments from the tenant incorporated. I will work on the rest of your list when I get back from vacation. If you have questions about this information, please contact me at(319) 356-5045 or e-mail at ron-oneil a7.iowa-city.orq Sincerely, Ronald J. O'Neil Airport Manager Cc: Airport Commission IOWA CITY MUNICIPAL AIRPORT 1801 South Riverside Drive Iowa City, Iowa 52246 ..F ' Office Phone(319)356-5045 s s July 9, 2003 Mr. Randy Bisgard Airport Business Solutions 15231 Radcliff Drive Aurora, Colorado 80015 Dear Mr. Bisgard: This is in response to your e-mail dated July 7, 2003, requesting information on the Iowa City Airport: 3. Grant history-Attached is a five-year grant history. The State grants are in blue, the federal grants in red. 4. AIP obligations—The last federal grant was closed in 2002. There are two open state grants, the Obstruction Removal and the Vertical Infrastructure. Both state and federal grants carry the usual grant assurances. 5. Rates and fees—Attached is a list of the current leases. It will tell you what the current rates are and when the lease started. It will also give you an asset list(#12) 6. Budget history—Enclosed are the budgets for 2000—2004. 7. Proposed budget—Included with#6 8. Commission meeting minutes—June 2001 —May 2003 9. Job descriptions and resumes—I do not keep resumes on file. There are only two employees, the Airport Manager and an Airport Maintenance Worker. 0 Legal documents-The Commission was created by referendum in the 1940's. I do not have the exact legislation that created the Commission. When he was here, I gave Mr. Hodges a copy of the enabling legislation from the State Code that allows a municipality to create an airport commission. 12.Asset inventory—Included is a copy of the fixed assets as listed with the City's Accounting Department. 13. Legal documents-The only pending litigation are attempts to collect unpaid hangar rent. One is for hangar rent and the other is for rent for one of the parcels in the Aviation Commerce Park. 14. News articles—You will need to be more specific on what topics you want articles on. Usually, if there is an article, I make a copy of it and include it in the Commission's monthly information packet. I don't keep a file specifically of articles. 16.Aerial photograph—The most recent aerial photograph of the Airport that I have was taken in the late 1980's. I will send you a copy of it if you want something that old. Let me know. 17. Environmental issues—The Commission is currently conducting an Environmental Assessment of the Airport. It should be completed late this summer. If you have specific environmental questions that you need answers for now, let me know and I will put you in touch with Joe Tmka,from H.R. Green Company. The preliminary information sent to the FAA did not indicate any environmental issues. I have a Commission meeting on July 15. Please contact me as to when your report will be completed. Alan Ellis, the Commission Chairperson, is going to be contacting the Mayor this week to schedule a work session in early August. Let me know when you would be able to present the report to the Council and the Commission. If you have questions or require additional information, please contact me at(319) 356- 5045. Sincerely, Ronald J. O'Neil Airport Manager Cc: Alan Ellis, Chairperson n } " IOWA CITY MUNICIPAL AIRPORT a' 1801 South Riverside Drive Iowa City, Iowa 52246 Office Phone(319) 356-5045 September 18, 2003 Listed below are some comments from the review of the draft Airport Business Solutions report, dated September, 2003 Chapter 1, page 5 — Under flight operations, ABS may want to explain that the Iowa Department of Transportation is the organization that provides the aircraft operations count. They install counters four times a year, for about a week at a time, and project the number of operations from those counts. They do not count operations every year. Chapter 1, page 8 — Line 3, the word should be they, not "their". Also, there were 15 requests for information and 2 proposals. Chapter 1, page 9 — First paragraph, could start out All, not "Most". Line 7, all of the t- hangar leases are current. They started in October 2002 and expire at the end of September 2003. In August and September, 2003, the Commission revised the lease and increased the rents by 10% for 2003-04. Second paragraph, the above ground tanks are 12,000 gallon each and there is an additional 10,000 gallon underground Jet A tank between Buildings G and H. Paragraph three, line three, the infrastructure investment for the Aviation Commerce Park was $1.6 million. The Commission has not had discussions with the Council about a land swap. That was an idea suggested by a Commission member at a Commission meeting, but was not taken to the Council Chapter 1, page 10—The north/south runway is RW 18/36. It may be more accurate to say the runway will be closed after the extension is completed for RW 07. Part of the old runway will be retained as a taxiway. In the table comparing airports, it should be noted that Cedar Rapids is a commercial service airport and the rest are general aviation airports, or maybe only use the GA operations from Cedar Rapids to get a realistic comparison. Because of their proximity to Iowa City, CR would be a good comparison for hangar rents, fuel costs, etc. Chapter 2, page 1, Local Demographics, first paragraph, line 5, It may not make much difference, but Iowa City is about 25 miles from Cedar Rapids and about 55 miles from Davenport. Chapter 2, page 4, second full paragraph, line two, might read better as "Iowa City hangar tenants" or "Iowa City Airport based pilots". Maybe even _ percentage that have a commercial license. The Airport does not collect information on type ratings. Chapter 3, page 2, line 6, "Minimum Standards" The Commission does have a minimum standards document. That was one of the documents given to ABS when they were here on May 5, along with the Airports chapters of the Iowa Code, and the airport chapters of the City of Iowa City Code. If ABS needs another copy of any of that information, it would be available for you on September 22. Line 8, because of the State open meetings law, unless a subcommittee meets with a tenant to negotiate a lease, the Commission as a group, must negotiate at an open meeting. When discussing the report, the consensus of the Commission agreed with the ABS recommendation to reduce their involvement with negotiating leases. Second paragraph, line 2, the Airport Manager meets regularly once a week with the City Manager and the other department directors and then has at least one or two other contacts a week with the City Manager. At the request of the Council and Commission, communication has increased between the Airport Manager and City Manager since the Council/Commission meeting in August of 2002. Second paragraph, line 5, could say"The City Manager has managing authority over all departments except the Airport and the Library". The City Manager reports to the Council. Chapter 3, page 4, The City Manager can not be a voting member of the Airport Commission. Paragraph 5, Shared Management ... Line 5, There are liability concerns if the FBO has responsibility and control "as if they were a City employee°. Chapter 3, page 5, first full paragraph, line 4, "standardized financial reporting". The Airport does have standardized reporting through the Finance and Accounting Departments. The City's Finance and Accounting are the Airport's resource. Accounting does most of the billing and receives the income from that billing directly. Budgets are on-line and kept up- to-date daily. Archived records for the Airport are available through the Accounting and Finance Departments. The Airport's finances are included in the City's annual audit. Annual budgets are generated from the Finance Department, reviewed and revised by the Airport Manager and Commission, reviewed and revised by the City Manager and Finance Director after a review with the Airport Manager, then passed and adopted by the City Council. There is an opportunity for the Commission to meet with the Council if the City Manager and Finance Director make changes in the budget that the Commission does not agree with. In the last 14 years, the Commission has always stayed within the operating budget given to them by the Council. It is the revenue side of the budget that has fluctuated. Chapter 3, page 5, 2"d check-mark. During their discussion of the report, the Commission raised the question of how Jet Air would improve their market presence as an operator/manager instead of as only the FBO? Chapter 4, page 4, "Minimum Standards° line 4, "and ° seems to be an extra word. Standardized lease language — The Commission standardized the language on the 64 t- hangars a year ago in October. They are standardizing the other leases as they expire and are renewed. Chapter 4, page 5, first full paragraph. There are 64 t-hangars and the leases all expire on the same day. The Commission does require premise liability of$1,000,000. The City is named as additional insured and the tenant is required to produce a Certificate of Insurance when the lease is signed. Points 1 — 7 are all included in the t-hangar leases. Last paragraph-The Commission does not offer aircraft parking leases. It might be a good idea to have a lease developed in case that situation should occur. At this time, there is not a demand for outside long-term parking. No one from the City ties down or moves aircraft. Chapter 4, page 7, first paragraph, it is noted that ABS did not have a copy of the FBO lease. On June 13, 2003, as requested by Bobbi Thompson, she was sent a list of the 2003 leases, a copy of a typical t-hangar lease, the old FBO lease with Iowa City Flying Service, the current lease with Jet Air and three versions of the corporate lease for hangar #32 that the Commission asked her to review. The Commission received the review comments on the corporate hangar. Chapter 4, Page 7, Paragraph 2, "The previous FBO was paying $.25 per gallon..." The most flowage fee ICFS paid was $ .05. For most of the 20 year contract, the flowage fee was$.03, only on fuel they sold, not on fuel they used in their own aircraft. Chapter 5, page 3. The Airport has co-sponsored a fly-in breakfast and open house for the last 20+ years. In 1991 and in 2001, the Airport hosted Fly Iowa, an open house and statewide fly-in to promote aviation in the State. The event is usually the last weekend in August This year, in June, in addition to the annual breakfast, the FBO and Commission teamed with a local bank to host a customer appreciation day that had an aviation theme. In August, the FBO hosted a Chamber of Commerce Business P.M. to promote their business and give business leaders an opportunity to see some of the Airport facilities. At least one FAA safety seminar is conducted at the Airport annually and the last two years the Airport has been one of the stops on a statewide poker run. The Commission incorporates many of the suggestions mentioned in the draft report into their events. Chapter 5, page 8, first full paragraph, line 3 should read (AAAE)The Airport Manager tries to attend at least one AAAE sponsored event annually. The conferences are usually productive and informative. As a member of AAAE, the Manager receives almost daily e- mails from AAAE, updating current issues. The Manager has been on the AAAE General Aviation committee and was a member of the planning committee and presenter at the State Aviation Conference and FAA AIP regional conference. He has also been on Iowa Department of Transportation consultant selection committees and a board member and past treasurer of the Iowa Public Airports Association. Chapter 6, page 1, last line, the Commission wanted more details on what formulas where used for this analysis. Chapter 6, page 2, first paragraph. The Commission had two questions. One was what is considered a "significant restriction" to business for lack of a precision instrument approach and two, if the FAA would not pay for this equipment and/or maintenance, was this projected in the financial analysis? Chapter 6, paragraph 2, lines 2, 10, 11, 12, and 13. This was reviewed in the Chapter 3, page 5. During the review of the report by the Commission on September 11, one of the Commission members commented that there were several negative personal comments in the report directed toward the Airport Manager and wanted to discuss this with ABS. The Commission reviewed every chapter, and discussed all of the action items individually. There were some recommendations they agreed with and would like to implement immediately. There were other recommendations they did not agree with and there were some comments that they look forward to discussing with ABS to get further clarification. The consensus of the Commission was that the outlines for the Rates and Charges Policy and the Leasing Policy will be helpful and should be developed and implemented to meet the requirements of the Airport • Ron O'Neil From: Baron Thrower[bthrower@sprintmail.com] Sent: Monday, September 29, 2003 5:00 AM To: Ron O'Neil Subject: FW: Iowa City Airport-Strategic Planning Process(thought stimulation) Ron, I just realized that you were not included on the following e-mail. Sorry for the oversight. Baron Original Message From: bthrower@sprintmail.com [mailto:bthrower@sprintmail.com] Sent: Wednesday, September 24, 2003 9:33 AM To: michelle-robnett@uiowa.edu; rdhartwig@hartwigmotors.com; ARENA610@aol.com Subject: Iowa City Airport - Stratigic Planing Process (thought stimulation) Fellow Commissioners: As you know, there are several approaches that one could consider in developing the EY04 Strategic Plan for the Iowa City Airport. In the interest of facilitating our discussion towards choosing a process that we are each comfortable with, I have provided one option that you may find useful in support of developing your own and even better recommendations. My general approach to fairly detailed and important task is to "begin with the end in mind". In other words, once the Iowa City Airport Commission creates the strategy we will need to articulate it. One model of a fairly clear/concise approach towards communicating a strategy, is via a Strategy Articulation Map (SAM) . An effective SAM should and therefore by extension, a strategic plan must contain the following elements: 1. Vision 2. Market Differentiators (SWOT Analysis in our particular case may not be required) 3. Financial and Strategic Objectives (revenue/cost model for the FY04 Budget) 4. Key Processes (describing actions taken to deliver on the vision) 5. Key Performance Indicators (establishing the specific metrics/measures of success) The Commission's success, specific to this planning exercise will be founded in our respective ability to collaboratively leverage each other's broader talents, as both individuals, and as fellow Commissioners. Michelle has performed and excellent service to the Commission, by acquiring the services of (3) MBA students (interns) from the University of Iowa to assist us in the strategic plan development process. I would propose that we decompose the task at hand and create assignments for both Commission members as well as our "interns", which will afford each of us an opportunity to support the activity using our own respective strengths. Additionally, within our individual assignments, lets set the expectation that we will share our respective assumptions and request input from each other, leading up to the creation of the jointly developed draft plan. To honor our commitments, we will need to prepare a document for the Iowa 1 City Council that embodies the to be developed strategy, in the context of the findings contained within the analysis performed by ABS. I believe that by linking the ABS findings to our strategy, articulating it in a formal strategic plan as well as linking all cost and revenue back to our proposed FY04 Budget, demonstrates to the Iowa City Council one key aspect of the value provided by the Iowa City Airport Commission. At this point we may be looking at the (4) following deliverables: 1. Strategic Plan (one document with 5 parts) 2. SAM (1 page Power Point summary) 3. FY04 Airport Budget 4. Response-Letter to the Iowa City Council (addressing the ABS findings) I would recommend that we each volunteer for our own respective contribution (e.g. Vision, Market Differentiators and Financial/Strategic Objectives) to the Strategic Plan, as I believe that it is to big for any one person to accommodate. I also recommend that, once the Commission established the Vision, Market Differentiators, Financial and Strategic Objectives that we ask the interns to establish and document the key contributing processes and key performance indicators. We may also want to have the Airport Manager create the FY04 budget, as it will reflect the direction established/captured within the Strategic Plan and SAM. Additionally, it may be appropriate for the noted "Response-Letter", be assigned to whomever is elected to the role of Chairman of the Iowa City Airport Commission during our next meeting. Since, we already have a pretty thick agenda, I would like for each of you to share your respective input prior to the next Commission October 9th meeting, so that we will be positioned to use that time to finalize our approach/task assignments. I have covered a lot of ground and hopefully each of you will find that it has stimulated some thoughts on what our best going forward approach should be. Thank you. With best regards, Baron D. Thrower (319) 358-7460 Home (319) 337-1480 Voice mail2web - Check your email from the web at http://mail2web.com/ 2 OFFICE LEASE THIS OFFICE LEASE made and entered into this day of 2003, by and between the Iowa City Airport Commission of Iowa City, Iowa (hereinafter called the "Lessor'), and the Civil Air Patrol, "CAP" (hereinafter called 'Tenant"), whose address for the purpose of this lease is WITNESSETH: 1. Leased Property. In consideration of the mutual terms, agreements, and conditions herein contained, Lessor hereby leases unto Tenant the following described real property situated at the Iowa City Municipal Airport in Iowa City, Johnson County, Iowa, ("Airport"), to wit: A 165 square foot office located in the northwest corner of Building G, 1801 South Riverside Drive, at the Iowa City Municipal Airport. A diagram showing the approximate location of said office is attached hereto and incorporated herein as Exhibit A(hereafter"Leased Property"). 2. Term. The term of this lease shall commence on August 1, 2003, and shall expire on July 31, 2005. 3. Rent. Tenant agrees to pay Lessor rent for the Leased Property as follows: $50.00 per month, in advance, payable on the first day of each month for the first year. The rent shall increase to$75.00 per month for the second year. The rent shall be paid pro rata by the Tenant for any period of possession less than a full year. Payments received after the fifteenth day of each month shall draw interest at 9% per annum from the due date, until paid. 4. Possession. Tenant shall be entitled to possession on the first day of the term of this lease, and shall yield possession to the Lessor at the time and date of the close of this lease, except as herein provided. Should the Lessor be unable to give possession on said date, Tenants only damages shall be a pro rata reduction of the monthly rent otherwise due. 5. Use of Property. Tenant covenants and agrees during the term of this lease to use and occupy the Leased Property only for CAP office purposes. In regard to said use, the Tenant shall comply with all city, state and federal codes, including but not limited to Federal Aviation Administration rules and regulations. Parking shall be limited to the hard- surfaced area directly north of Building G. Access to the controlled access gate west of the building shall not be obstructed. 6. Maintenance. Lessor shall be responsible for the structural maintenance of the Leased Property, including the walls, roof and floor, and Lessor shall keep these structures in good repair. Tenant shall be responsible for the interior maintenance of the Leased Property. Tenant agrees to keep faucets closed so as to prevent waste of water and flooding of the property; to promptly take care of any leakage or stoppage in any water, gas, or waste pipe inside the Property; to repair any damage to electrical circuits due to 2 overloading. Tenant shall maintain adequate heat to prevent freezing of pipes. Tenant shall make no structural alterations or improvements to the Leased Property without first obtaining the Lessor's written approval of the plans and specifications. Any interior alterations or improvements which Tenant elects to make during the term of this lease shall comply with Title II, 42 U.S.C. 12131 ("Americans with Disabilities Act"). Further, Tenant agrees not to construct or attach any fixtures without first obtaining the Lessor's written approval. Tenant shall be responsible for snow removal within two (2) feet of the building. 7. Reasonable Care of Leased Property. Tenant shall not permit or allow any portion of the property to be damaged by any negligent act or omission of the Tenant or its employees, and Tenant agrees to surrender the Leased Property at the expiration of this agreement in as good condition as at the commencement of this Lease, normal wear and tear excepted. Tenant agrees to allow Lessor free access to inspect the Leased Property at all reasonable times. 8. Insurance. a. Tenant shall at its own expense procure and maintain general liability and casualty insurance in a company or companies authorized to do business in the State of Iowa, in the following amounts: Type of Coverage Comprehensive General (or Premises) Liability- Each Occurrence $1,000,000 b. Tenant's insurance carrier shall be A rated or better by A.M. Best. Tenant shall name the Commission and the City of Iowa City, as additional insured. The Commission and Tenant acknowledge that a Certificate of Insurance is attached to this Lease. Tenant shall provide fifteen (15) days notice to the Commission before cancellation of said insurance. c. It is the tenant's responsibility to keep the insurance certificate current. If the Certificate of Insurance expires during the term of the lease, the Tenant must provide a current certificate to the Airport within 7 days of when the certificate expires. 9. Utilities. Lessor shall pay all water use and sewer utility costs incurred for the Leased Property during the term of this lease, as such costs become due. Tenant shall be responsible for all electricity and gas costs including expenses for heating, cooling and lighting the Leased Property during the term of this lease. Tenant is responsible for his or her own refuse disposal. 10. Non-Discrimination. The Tenant covenants, in consideration of the right to Lease Property at the Iowa City Municipal Airport, that the Tenant, its employees, and agents shall not discriminate against any person in employment or public accommodation because of race, religion, color, creed, gender identity, sex, national origin, sexual orientation, mental or physical disability, marital status or age. "Employment" shall include but not be limited to hiring, accepting, registering, classifying, upgrading, or referring to employment. "Public accommodation" shall include but not be limited to providing goods, services, 3 facilities, privileges and advantages to the public. The Tenant shall remain in compliance with all requirements of 49 CFR Part 21, Non-Discrimination in Federally Assisted Programs of the Department of Transportation. 11. Assignment. This Lease shall not be modified,waived or abandoned except in writing duly executed by both parties. This Lease contains the whole agreement of the parties, and is not assignable by either party without the written consent of the other. 12. Severability. In the event any portion of this Lease is found invalid, the remaining portions shall be deemed severable and shall remain in full force and effect. 13. Indemnification. All claims of damages caused by Tenant's negligence arising under or by reason of the terms of this lease and relating to the Leased Property as described in Paragraph One (1) of this lease, shall be the sole responsibility of Tenant, and Tenant agrees to defend against said claims. ' 14. Grant Assurances. This Lease shall be subordinate to the provisions of any outstanding or future agreement between Lessor and the United States government or the State of Iowa relative to the maintenance, operation, or development of the Iowa City Municipal Airport. Tenant acknowledges and agrees that the rights granted to Tenant in this Lease will not be exercised so as to interfere with or adversely affect the use, operation, maintenance or development of said Airport. 15. FM Provisions. a. Tenant, for itself, heirs, personal representatives, successors in interest, and assigns, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that in the event facilities are constructed, maintained, or otherwise operated on the said property described in this (license, lease, permit, etc.) for a purpose for which a Department of Transportation program or activity is extended or for another purpose involving the provision of similar services or benefits, the (licensee, tenant, permittee, etc.) shall maintain and operate such facilities and services in compliance with all other requirements imposed pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. b. Tenant,for itself, personal representatives, successors in interest, and assigned, as a part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that: (1) no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subject to discrimination in the use of said facilities, (2)that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of race, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subject to discrimination, (3)that Tenant, shall use the premises in compliance with all other requirements imposed by or pursuant to 49 CFR Part 21, Nondiscrimination in Federally Assisted Programs of the Department of Transportation, and as said Regulations may be amended. 4 c. It in understood and agreed that nothing herein contained shall be construed to grant or authorize the granting of an exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. This Lease shall be subordinate to the provisions of any outstanding or future agreement between the Commission and the United States government or the Commission and the State of Iowa relative to the maintenance, operation, or development of the Iowa City Municipal Airport. Tenant acknowledges and agrees that the rights granted to Tenant in this Lease will not be exercised so as to interfere with or adversely affect the use, operation, maintenance or development of the Airport d. Tenant agrees to furnish service on a fair, equal and not unjustly discriminatory basis to all users thereof, and to charge fair, reasonable and not unjustly discriminatory prices for each unit or service; provided, that Tenant may make reasonable and non-discriminatory discounts, rebates, or other similar types of price reductions to volume purchasers. e The Commission reserves the right (but shall not be obligated to Tenant)to maintain and repair the landing area of the airport and all publicly-owned facilities of the airport, together with the right to direct and control all activities of Tenant in this regard. 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 5 operating on or about the airport. k. The Lease shall become subordinate to provisions of any existing or future agreement between the Commission and the United States of America or any agency thereof relative to the operation, development, or maintenance of the airport, the execution of which has been or may be required as a condition precedent to the expenditure of federal funds for the development of the airport. IOWA CITY AIRPORT COMMISSION CIVIL AIR PATROL By: By: Commission Chairperson ATTEST: ATTEST: Secretary Approved By: S • aa-03 City Attorney's Office 6 Commission's Acknowledgement STATE OF IOWA ) )SS: JOHNSON COUNTY ) On this day of 20 , before me, a Notary Public in and for the State of Iowa, personally appeared and , to me personally known, who, being by me duly 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 of the Commission, by it voluntarily executed. Notary Public in and for said County and State Board of Supervisors'Acknowledgement STATE OP IOWA ) ) SS: JOHNSON COUNTY ) On this day of , 20 before me, the undersigned, a Notary Public in and for the State of Iowa, personally appeared - and to me personally known,who, being by me duly sworn, did say that they are the Chairperson, Board of Supervisors and County Auditors, respectively, of Johnson County; that said instrument was signed (and sealed) on behalf of Johnson County and its Board of Supervisors; and that the said - and acknowledged the execution of said instrument to be the voluntary act and deed of said County, by it and by them voluntarily executed. Notary Public in and for said County and State I J South Riverside DriveOintma ( fi `�,. `r lerIra } Of x - ,,, 4 „I 4 z ... 4 , ,,,, ___ X*; ifB1J,dgH * Bldg I . Bldg C fuel D tank ,.,Bigg G, , Bldg -d. o ' ca .10 Bldg D 0 Civil AM•r Ai ortPatrol Office E1-1 H Manager's o Office GQ Bldg F Bldg K m ,� ` . 1 .,11:1p) Fuel tanks-- Vv TERMIN1 �. AREA PRINTED 19-SEP-03 CITY OF IOWA CITY FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 6110 Perm. Full Time 84, 674 88, 536 91, 947 94, 630 % INC/DEC 4 . 56 3 . 85 2 . 91 Justification: USE FORM 5 6130 Temporary Employees 2, 574 2 , 184 2 , 728 2 , 315 % INC/DEC -15 . 16 24 . 90 -15 . 14 Justification: 6211 Overtime Wages 579 800 608 840 % INC/DEC 38 . 16 -24 . 00 38 . 15 Justification: 6230 Longevity Pay 1, 450 1,450 1, 450 1, 450 % INC/DEC . 00 . 00 . 00 Justification: USE FORM 5 6310 Fica 6, 812 7, 107 7, 400 7, 591 % INC/DEC 4 . 33 4 . 12 2 . 58 Justification: USE FORM 5 6320 Ipers 4, 985 5, 229 5, 407 5, 706 % INC/DEC 4 . 89 3 . 40 5 . 52 Justification: USE FORM 5 6410 Health Insurance 9, 919 11, 358 13 , 097 14, 653 % INC/DEC 14 . 50 15 . 31 11 . 88 Justification: USE FORM 5 6420 Life Insurance 286 299 312 319 % INC/DEC 4 . 54 4 . 34 2 .24 Justification: USE FORM 5 6430 Disability Insurance 523 618 645 664 % INC/DEC 18 . 16 4 . 36 2 . 94 Justification: USE FORM 5 6610 Monthly Cellular/pcs 0 150 0 0 % INC/DEC -100 . 00 -100 . 00 . 00 Justification: USE FORM 5 *6000 TOTAL 111, 802 117, 731 123 , 594 128, 168 7110 Office Supplies 67 133 70 139 % INC/DEC 98 . 50 -47 . 37 98 . 57 Justification: PRINTED 19-SEP-03 CITY OF IOWA CITY FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 7120 Book (s) 188 188 196 196 % INC/DEC . 00 4 . 25 . 00 Justification: 7140 Minor Off Equip/furn 0 24 0 25 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 7148 Minor Telecom Equip. 218 111 378 0 % INC/DEC -49 . 09 240 . 54 -100 . 00 Justification: 7153 Misc . Peripherals 73 28 76 29 % INC/DEC -61 . 65 171 .42 -61 . 85 Justification: 7214 Ag Chemicals 580 255 606 266 % INC/DEC -56 . 04 137 . 64 -56 . 11 Justification: 7241 Gasoline 1, 464 2 , 051 1, 530 2 , 400 % INC/DEC 40 . 09 -25 .41 56 . 86 Justification: 7242 Grease & Oil 60 41 63 43 % INC/DEC -31 . 67 53 . 65 -31 . 75 Justification: 7243 Fluids Gases & Other 0 11 0 11 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 7250 Sanitation Supp. 455 418 500 437 % INC/DEC -8 . 14 19 . 61 -12 . 60 Justification: 7283 Tools & Minor Equip. 794 160 830 167 % INC/DEC -79 . 85 418 . 75 -79 . 88 Justification: 7284 First Aid/safety Sup 96 0 300 0 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 7286 Misc. Supplies 858 52 500 54 % INC/DEC -93 . 94 861 . 53 -89 .20 Justification: PRINTED 19-SEP-03 CITY OF IOWA CITY . FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 7288 Paper Supplies 17 52 18 54 % INC/DEC 205 . 88 -65 . 39 200 . 00 Justification: 7311 Lumber/hardware 471 8 492 8 % INC/DEC -98 . 31 6, 050 . 00 -98 . 38 Justification: 7312 Paint & Supplies 79 54 83 56 % INC/DEC -31 . 65 53 . 70 -32 . 54 Justification: 7313 Plumbing Supplies 7 0 50 0 % INC/DEC -100 . 00 -100 . 00 -100. 00 Justification: 7314 Electrical Supplies 279 62 292 65 % INC/DEC -77 . 78 370 . 96 -77 . 74 Justification: 7315 Bdlg. & Improv. Mat . 0 12 10, 000 13 % INC/DEC -100 . 00 83 , 233 . 33 -99. 87 Justification: 7319 Bldg. & Const . Supp. 213 105 223 110 % INC/DEC -50 . 71 112 .38 -50 . 68 Justification: 7321 Minor Equip. Rep Mat 86 82 90 86 % INC/DEC -4 . 66 9 . 75 -4 .45 Justification: 7331 Auto & Light Truck 22 68 23 71 % INC/DEC 209 . 09 -66 . 18 208 . 69 Justification: 7335 Snow Removal Equip. 0 160 0 167 % INC/DEC -100 . 00 -100 . 00 -100. 00 Justification: 7337 General Equipment 0 0 600 0 % INC/DEC . 00 -100 . 00 -100 . 00 Justification: 7351 Concrete 0 162 0 169 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: PRINTED 19-SEP-03 CITY OF IOWA CITY FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 7352 Asphalt 0 73 0 76 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 7354 Sand 39 0 41 0 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 7359 Surfacing Materials 0 95 100 99 % INC/DEC -100 . 00 5 .26 -1 . 00 Justification: 7363 Traffic Ctrl . Improv 1, 411 318 1,474 332 % INC/DEC -77 .47 363 . 52 -77 .48 Justification: *7000 TOTAL 7, 477 4, 723 18, 535 5, 073 8121 Filing Fee 0 281 0 281 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 8122 Attorney Services 39 0 42 0 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 8123 Recording Fees 0 112 0 115 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 8162 Appraisal Services 0 975 0 0 % INC/DEC -100 . 00 -100 . 00 . 00 Justification: USE FORM 4 8163 Consultant Services 3 , 591 6, 104 0 0 % INC/DEC 69 . 98 -100 . 00 . 00 Justification: USE FORM 4 8164 Abstracts 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: USE FORM 4 8166 Engineering Services 1, 200 3 , 008 2 , 000 0 % INC/DEC 150 . 66 -33 . 52 -100 . 00 Justification: USE FORM 4 PRINTED 19-SEP-03 CITY OF IOWA CITY FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 8167 Testing Services 610 914 1,450 0 % INC/DEC 49 . 83 58 . 64 -100. 00 Justification: USE FORM 4 8211 Local Phone Service 951 348 0 0 % INC/DEC -63 .41 -100 . 00 . 00 Justification: 8212 Long Distance Serv. 74 62 78 0 % INC/DEC -16 . 22 25 . 80 -100 . 00 Justification: 8215 Cellular/pcs Service 96 55 192 57 % INC/DEC -42 . 71 249 . 09 -70 .32 Justification: 8219 Phone Move/add/chnge 0 309 0 0 % INC/DEC -100 . 00 -100 . 00 . 00 Justification: 8223 Couriers 39 40 42 43 % INC/DEC 2 . 56 5 . 00 2 .38 Justification: 8231 Legal Publications 155 359 162 375 % INC/DEC 131 . 61 -54 . 88 131 .48 Justification: 8239 Advertising 343 0 2 , 000 0 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 8311 Travel Advance 0 -4 0 0 % INC/DEC -100 . 00 -100 . 00 . 00 Justification: USE FORM 2 8312 Transportation 329 1, 617 600 0 % INC/DEC 391 . 48 -62 . 90 -100 . 00 Justification: USE FORM 2 8314 Registration 315 490 665 0 % INC/DEC 55 . 55 35 . 71 -100 . 00 Justification: USE FORM 2 8315 Lodging 545 290 825 0 % INC/DEC -46 . 79 184 .48 -100 . 00 Justification: USE FORM 2 PRINTED 19-SEP-03 • CITY OF IOWA CITY FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 8316 Misc. Travel Expense 0 -26 0 0 % INC/DEC -100 . 00 -100 . 00 . 00 Justification: USE FORM 2 8319 Meals 400 137 250 0 % INC/DEC -65 .75 82 .48 -100 . 00 Justification: USE FORM 2 8340 Meals (non-travel) 40 0 42 0 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 8410 Comp. Liability Ins . 8, 500 9,495 9, 775 10, 919 % INC/DEC 11 . 70 2 . 94 11 . 70 Justification: 8420 Fire & Casualty Ins. 8, 796 11, 614 10, 115 13 , 356 % INC/DEC 32 . 03 -12 . 91 32 . 04 Justification: 8430 Worker' s Comp Ins . 221 187 254 215 % INC/DEC -15 . 39 35 . 82 -15 .36 Justification: 8470 Loss Reserve Payment 5, 079 0 20, 000 0 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 8530 Landfill Use 0 246 0 246 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 8540 Energy Grant Payback 332 331 0 331 % INC/DEC - . 31 -100 . 00 -100 . 00 Justification: 8550 Heating Fuel/gas 2 , 578 5, 510 2 , 707 6, 061 % INC/DEC 113 . 73 -50 . 88 123 . 90 Justification: 8560 Electricity Charges 14, 019 14, 895 14, 720 15, 640 % INC/DEC 6 .24 -1 . 18 6 .25 Justification: 8570 Sewer Utility Charge 1, 014 860 1, 014 860 % INC/DEC -15 . 19 17 . 90 -15 . 19 Justification: PRINTED 19-SEP-03 CITY OF IOWA CITY . FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 8580 Water Utility Charge 1, 222 993 1, 222 993 % INC/DEC -18 . 74 23 . 06 -18 . 74 Justification: 8611 Vehicle Repairs 1, 751 994 1, 830 1, 039 % INC/DEC -43 .24 84 . 10 -43 .23 Justification: 8613 Vehicle Repairs 150 112 157 117 % INC/DEC -25 . 34 40 . 17 -25 .48 Justification: 8621 Repair Of Structure 1, 301 1, 397 1, 366 1,467 % INC/DEC 7 . 37 -2 .22 7 . 39 Justification: 8622 Rep Of Heating Equip 1,234 729 1, 296 765 % INC/DEC -40 . 93 77 . 77 -40 . 98 Justification: 8623 Rep Of Cooling Equip 472 518 496 544 % INC/DEC 9 . 74 -4 .25 9 . 67 Justification: 8625 Rep Of Electric/plbg 325 114 341 120 % INC/DEC -64 . 93 199 . 12 -64 . 81 Justification: 8626 Bldg. Pest Control 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: 8629 Rep & Maint . To Bldg 9, 275 1, 386 9, 692 1,448 % INC/DEC -85 . 06 599 .27 -85 . 06 Justification: 8632 Office Equip. Repair 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: 8637 Radio Equipment Rep. 25 25 26 26 % INC/DEC . 00 4 . 00 . 00 Justification: 8641 Other Repair & Maint 6, 313 5, 000 6, 597 5,225 % INC/DEC -20 . 80 31 . 94 -20 . 80 Justification: PRINTED 19-SEP-03 CITY OF IOWA CITY FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 8722 Laundry Service 596 607 623 634 % INC/DEC 1 . 84 2 . 63 1 . 76 Justification: 8732 Hauling 20 800 21 836 INC/DEC 3 , 900 . 00 -97 .38 3 , 880 . 95 Justification: 8739 Equipment Service 1, 264 696 1, 321 727 % INC/DEC -44 . 94 89 . 79 -44 . 97 Justification: 8742 Outside Printing 726 368 759 385 % INC/DEC -49 . 32 106 . 25 -49 .28 Justification: 8762 Film Processing 10 11 10 11 % INC/DEC 10 . 00 -9 . 10 10 . 00 Justification: 8769 Technical Services 2, 933 2, 553 3 , 065 2, 668 % INC/DEC -12 . 96 20 . 05 -12 . 96 Justification: 8770 Word Processing 4 0 50 0 % INC/DEC -100 . 00 -100 . 00 -100 . 00 Justification: 8821 City Attorney Chgbck 3 , 040 3 , 725 3, 162 3, 874 % INC/DEC 22 . 53 -15 . 12 22 .51 Justification: 8824 Its Pc/periph Supp. 590 2 , 123 535 995 % INC/DEC 259 . 83 -74 . 80 85 . 98 Justification: 8825 Its - Cmptr Repl Chg 1, 003 941 0 0 % INC/DEC -6 . 19 -100 . 00 . 00 Justification: 8826 Its - Appl Dev Fees 286 0 0 0 % INC/DEC -100 . 00 . 00 . 00 Justification: 8827 Its-nw/internet Chg 360 360 360 360 % INC/DEC . 00 . 00 . 00 Justification: PRINTED 19-SEP-03 CITY OF IOWA CITY FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS 8841 Supply Room Chgbacks 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: • 8842 Print Shop Services 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: 8843 Photocopying Chgback 492 309 590 371 % INC/DEC -37 . 20 90 . 93 -37 . 12 Justification: 8845 Local Phone Service 0 1, 512 1, 618 0 % INC/DEC -100 . 00 7 . 01 -100 . 00 Justification: 8846 Phone Admin/repl Chg 0 0 480 0 % INC/DEC . 00 -100 . 00 -100 . 00 Justification: 8847 Mail Chargebacks 507 415 553 436 % INC/DEC -18 . 15 33 .25 -21 . 16 Justification: 8848 Ups Chargebacks 11 19 12 20 % INC/DEC 72 . 72 -36 . 85 66 . 66 Justification: 8930 Dues & Memberships 345 345 1, 011 361 % INC/DEC . 00 193 . 04 -64 .30 Justification: 8942 Building Rental 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: 8945 Tools & Equip. Rent . 1, 368 1,439 1,430 1, 504 % INC/DEC 5 . 19 - . 63 5 . 17 Justification: 8946 Film Rental 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: 8950 City Vehicle Repl . 15, 698 17, 111 16, 326 17, 795 % INC/DEC 9 . 00 -4 . 59 8 . 99 Justification: PRINTED 19-SEP-03 • CITY OF IOWA CITY FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46120 AIRPORT PROPERTY MANAGEMENT 8942 Building Rental 0 -233 0 0 % INC/DEC -100 . 00 -100 . 00 . 00 Justification: 8948 Landlord Rents 2, 292 955 0 998 % INC/DEC -58 . 34 -100 . 00 -100 . 00 Justification: *8000 TOTAL 2, 292 722 0 998 9595 Residual Equity Tran 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: USE FORM 3 *9000 TOTAL 0 0 0 0 TOTAL 2 , 292 722 0 998 PRINTED 19-SEP-03 CITY OF IOWA CITY • FY02 - FY03 EXPENDITURES, FY04 BUDGET AND FY05 PROJECTION FY05 FY05 DESCRIPTION FY02 FY03 FY04 FINANCE DEPT ACTUAL ACTUAL BUDGET PROJECTION REQUEST ACTIVITY # 46110 AIRPORT OPERATIONS *8000 TOTAL 100, 587 102 , 811 121, 882 91, 220 9313 Tractor (s) 0 0 0 0 % INC/DEC . 00 . 00 . 00 Justification: USE FORM 3 9540 Capital Projects 1, 433 0 0 0 % INC/DEC -100 . 00 . 00 . 00 Justification: USE FORM 3 9720 Interfund Loans 123 , 722 84, 990 85,440 85,440 % INC/DEC -31 .31 . 52 . 00 Justification: USE FORM 3 *9000 TOTAL 125, 155 84 , 990 85, 440 85, 440 TOTAL 345, 021 310, 255 349,451 309, 901 • • If 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: September 29, 2003 Re: Hangar rent increases There has been some discontent from tenants that the hangar rents have been increased. One tenant asked if the Commission was going to raise the rent every few months. Another said he didn't think the Commission could raise the rent without 30 days notice. As has been explained to those that have contacted me, t-hangar leases are for a term of one year. The reason for limiting the time period is so that the Commission can evaluate the leases annually and make adjustments if necessary. One of those adjustments is the rent. T-hangar leases were on the Commission meeting agenda for August and September. Those agendas are posted in the Terminal Building and at City Hall. In addition, a separate notice was posted in the Terminal Building that specifically stated that hangar leases and rent would be discussed at the Commission meetings. A copy of that notice is attached to this memo. Increasing hangar rents was discussed in no less than 4 newspaper articles. No one came to the Commission meetings to discuss the rent or other lease issues. Also attached is the memo that was sent with the 2003—2004 leases. In the future, if there were a proposed change to the lease during the term of the lease, I would recommend attempting to notify each tenant individually. That would be a different situation than the annual t-hangar lease expiring. No one likes to pay an increase for property or services. The Airport, like every other City department, needs to carefully monitor expenses and look for ways to generate revenue. CC: Sue Dulek, Assistant City Attorney NOTICE Date: 31 July 2003 ATTENTION: T-hangar Tenants At the August 14, 2003 Commission meeting, the Airport Commission will be discussing the 2003-2004 t-hangar leases. This will include discussion on hangar rent. If you have changes to the lease that you would like the Commission to discuss, please contact me before the meeting or attend the meeting on August 14, 2003 at 5:45 p.m. at the Airport Terminal Building. You may also send me suggestions at : Ron O'Neil, 1801 South Riverside Drive, Iowa City, Iowa, 52246 or e-mail at ron-oneil©iowa-city.org • a IOWA CITY MUNICIPAL AIRPORT C 1801 South Riverside Drive Iowa City, Iowa 52246 ' Office Phone (319) 356-5045 70 Memorandum s To: Hangar tenants From: Ron O'Neil, Airport Manager Date: September 22, 2003 Re: 2003—2004 leases Attached are two copies of the annual t-hangar lease. Please fill in the information in paragraphs 1. and 26. c. (2), then sign and return one copy to me. Your address and current phone number are important for our emergency contact list. The term of the lease is from October 1, 2003 to September 30, 2004. There are a couple of minor changes. One change is to please remind your insurance carrier that if your policy is renewed during the term of the lease, a current Certificate of Insurance needs to be sent to me or Erin Herting, the Assistant Finance Director. There were also some punctuation errors corrected from last year's lease. After discussing the t-hangar leases at their last two Commission meetings, the Commission voted to raise the rent 10%. The rents are still comparable to t-hangar rents at most other airports in the area. As you are most likely aware, the Commission has spent a lot of time and effort trying to work toward financial self-sufficiency. A rate increase was necessary to keep up with increasing operational costs. • ..F7 IOWA CITY MUNICIPAL AIRPORT 1801 South Riverside Drive Iowa City, Iowa 52246 Office Phone(319) 356-5045 n At their September 11, 2003 Airport Commission meeting, the Commission established the following monthly t-hangar rates: Hangar number 2002-03 rate 2003-04 rate # 1 -#10 $110.00 $121.00 #11 -#30 $120.00 $132.00 #36 -#44 $130.00 $143.00 #45 $160.00 $176.00 #46 -#54 $130.00 $143.00 #55 $160.00 $176.00 #56 $250.00 $275.00 #57 $155.00 $170.50 #58 $155.00 $170.50 #59 $135.00 $148.50 #60 $135.00 $148.50 #61 $180.00 $198.00 #62 $135.00 $148.50 #63 $135.00 $148.50 #64 $150.00 $165.00 • O IOWA CITY MUNICIPAL AIRPORT 1801 South Riverside Drive Iowa City, Iowa 52246 Office Phone (319) 356-5045 September 18, 2003 Mr. Norm Kane Air Traffic Manager Cedar Rapids Municipal Airport 2525 Wright Bros. Blvd. SW Cedar Rapids, Iowa 52404 Dear Norm: I apologize for the delay in sending this letter, but I wanted to thank you and your staff for the temporary tower you supplied for our open house and fly-in breakfast on August 24. I received many positive comments from the pilots on the professionalism of the three controllers and how it enhanced safety, especially at some rather busy times. Having a tower really added to the safety of the event and we would hope to be able to get a tower again next year. Again, thank you for your assistance and to your staff for a job well done. Sincerely, 6AD Ronald J. O'Neil Airport Manager Cc: Airport Commission 0 117 IOWA CITY MUNICIPAL AIRPORT 1801 South Riverside Drive Iowa City, Iowa 52246 Office Phone(319) 356-5045 September 2, 2003 The Honorable Mayor Mr. Ernest Lehman 410 East Washington Iowa City, Iowa 52240 Re: United hangar Dear Ernie: As a follow-up to the letter of September 2, 2003, concerning the disposition of the United hangar, I am attaching a copy of the cost estimates the Commission reviewed in their discussions. As you can see, the cost to move the hangar is estimated to be between $20,000 to $ 35,000. The cost to rehabilitate or restore the building could cost up to almost $ 500,000. Although the Federal Aviation Administration would pay for some of the site preparation, a considerable amount of local funds would be needed to restore the hangar to a condition to be able to use it. If you have additional questions or would like to discuss this at some time, please contact me at 356-5045 or e-mail at ron-oneil©iowa-city.org Sincerely, \ n a. a Ron O'Neil Airport Manager Cc: City Council Airport Commission Steve Atkins, City Manager Sue Dulek, Assistant City Attorney Table X: Tasks & Rough Order of Magnitude Costs Removal of Old United Hangar from Runway Safety Area Iowa City Municipal Airport, Iowa City, Iowa Alternatives Move and Task Demolish Move and Rehabilitate Hangar Hangar Restore Hangar Historic recordation of 20,000 20,000 20,000 building at existing site Building demolition & 30,000 n/a n/a debris removal Clear existing site 0 to 10,000 0 to 10,000 0 to 10,000 Clear& grade new site, n/a 100,000 100,000 new foundation & pad Provide utilities to site n/a 35,000 35,000 Rehabilitate brick joints n/a 12,000 12,000 Move brick section n/a 15,000 15,000 Move steel section n/a 20,000 20,000 Electrical repair/upgrade n/a 10,000 to 20,000 20,000 to 40,000 HVAC repair/upgrade n/a 10,000 to 20,000 20,000 to 40,000 Plumbing repair/upgrade n/a 10,000 to 20,000 20,000 to 40,000 Interior repair/upgrade n/a 20,000 to 40,000 40,000 to 80,000 Window replacement n/a n/a 25,000 Door replacement n/a n/a 5,000 Rehabilitate/repair roof n/a 15,000 30,000 to 40,000 Restore roof on brick n/a n/a 10,000 to 15,000 section Total $50,000 to $267,000 to $372,000 to $60,000 $327,000 $497,000 Notes to table: Rehabilitate = repair or replace as necessary so that building can function as intended; work to be conducted without consideration of historic nature of building Restore = repair or replace as necessary so that building can function as intended; work to be conducted in accordance with the Secretary of the Interior's Standards & Guidelines for work on historic buildings Recordation = photograph and document historic details & nature of building prior to alteration of its historic setting, feeling, materials, etc. Door replacement does not include replacement of steel hangar doors Presence or absence of hazardous materials, such as asbestos, is unknown • 17 IOWA CITY MUNICIPAL AIRPORT 1801 South Riverside Drive Iowa City, Iowa 52246 ' Office Phone (319)356-5045 S September 2, 2003 The Honorable Mayor Mr. Ernest Lehman 410 East Washington Iowa City, Iowa 52240 Re: United hangar Dear Ernie: At the last three Commission meetings, the Commission has discussed the disposition of the building known as the United hangar, at 1701 South Riverside Drive. Boeing Air Transport Company constructed it around 1929. Boeing Air later became United Airlines. Because of its age, the building has some historic significance. It has been determined to be eligible to be a historic structure, but it has not been designated as a historic building. Because of its location in relation to the end of Runway 25, it is considered an obstruction. The building can not remain in the current location. Disposition of the building would be included with the second phase of the Runway 07/25 project. The Commission hopes to receive funding for phase two next year. There are at least three options. All three options include the required historic documentation of the building. One option is to demolish the building. Another option is to move the building and rehabilitate it. A third option is to move the building and restore it. The FAA will pay 90% of the cost to move the building. This would include moving costs, new footings and floor and constructing the utilities to the new site. They will not pay to rehab or restore the building. The Commission has known for some time that the building is considered an obstruction. Very little money has been spent on it and it would need considerable work to rehab or restore it. Because of the economic climate, the consensus of Commission is that the structure will be demolished. The Historic Preservation Commission was invited to the August Commission meeting to discuss the building, but the Commission did not receive any response from them. The Commission does not know of any other group that might have an interest in preserving the building. • The Airport Commission has started the process of selecting an engineering firm for the Runway 07/25 project. In defining the final Scope of Services for the project, the Commission will need to decide the fate of the United hangar. The main objective of this letter is to notify the Council that the Commission has spent a considerable amount of time on this issue and, using the available information, has decided to demolish the building. There was some sentiment to save the building, but there are no funds to allow that to occur. Sincerely, O ) Ron O'Neil Airport Manager Cc: City Council Airport Commission Steve Atkins, City Manager Sue Dulek, Assistant City Attorney