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HomeMy WebLinkAbout08-21-2014 Airport Commission Meeting Minutes • Airport Commission August 21,2014 Page 1 MINUTES FINAL IOWA CITY AIRPORT COMMISSION AUGUST 21, 2014—6:00 P.M. AIRPORT TERMINAL BUILDING Members Present: Jose Assouline, Minnetta Gardinier, A. Jacob Odgaard, Chris Ogren Members Absent: David Davis Staff Present: Sue Dulek, Michael Tharp, Eric Goers Others Present: Matt Wolford, David Hughes, John Yeomans, Jeff Edberg RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council action): None. DETERMINE QUORUM: Chairperson Ogren called the meeting to order at 6:05 P.M. She stated that they do have a new member, but he is unable to attend this evening. APPROVAL OF MINUTES: Minutes from the July 17 and August 6, 2014, meetings were reviewed. Ogren noted that on the August 6 minutes, under Determine Quorum, the wording is from the July 17 meeting. Ogren also questioned the wording for the Airport Master Plan subheading. Tharp clarified that this is correct. Also in the August 6th minutes, it states that they welcomed new Member Jacob Odgaard, when this was from the July 17 meeting, as well. Assouline moved to approve the minutes of the July 17 and August 6, 2014, meetings as amended, seconded by Ogren. Motion carried 4-0, Davis absent. PUBLIC DISCUSSION: None. ITEMS FOR DISCUSSION/ACTION: a. Airport Farming Operations—John Yeomans with Farmers National Company addressed the Members. He stated that typically at this time of year he meets with the Commission to see what they want to do in the next year. He shared a summary that he had prepared of where rents are currently. In the current contract, the Airport receives $36,300. Out of that, $1,000 is from the hay operation that Jim Sladek takes care of. The remainder, $35,300, is for the crop- land —the corn and soybean operation. Yeomans responded to Member questions, stating that currently cropland is around $314 per acre. Looking at his current analysis, a fair rent could be in the $250 range per acre. He further explained that the farmer could decide that he wants to renegotiate terms, but Airport Commission August 21,2014 Page 2 that they can proceed with the current terms and see if that is agreeable. Tharp stated that the farmer has been great in how he works the land, getting bales off as soon as possible, etc. He suggested they move forward with where they are now. Yeomans added that the farmer, Jim, has been doing some mowing and spraying in the area, as well, which is a plus for the Airport. Ogren asked if Yeomans' suggestion is to keep the contract amounts where they currently are, versus lowering them. He responded that what he wants to do is first let Jim know that the lease will not be terminated, and then this gives the farmer the option to question the lease terms. Members discussed the issue, with Yeomans noting that at issue is whether they want to change the rent, and/or the operator, or do something completely different with the Airport's property. Assouline stated that he sees no reason to make any changes at this time. Gardinier agreed, stating that she would be agreeable to continuing the current lease with Jim. Tharp stated that there has been some discussion about a possible Fire Department training station at the south end of the Airport. The timeline is such that extending the farm contract for another year should not be a problem, according to Tharp. Members continued to discuss this issue, ultimately agreeing to move forward with continuing the current farm lease. i. Farmers National Company—Tharp noted that this is also the time of the year that the Commission could decide to terminate its contract with Farmers National. He stated that he definitely does not advocate for this, that John Yeomans has done a good job for the Airport. Yeomans gave Members a brief history of the Merschman Seed relationship with the Airport and the show plots that they maintain on some of the land. b. Airport Commerce Park—Jeff Edberg addressed Members next, stating that he has a few updates to share. First, there is a pending sale on lot#8. This was part of the original sale, where the buyer bought lot#9 and had a set amount of time to also purchase lot#8. Edberg explained the intricacies of this transaction and why things are taking longer than expected. Secondly, Edberg noted that he brought an interested party—a building supply company—to see the location. This company is looking at more land, according to Edberg, so they have discussed a possible merger of lots 11, 12, and 13 to get the land required for a warehouse. Edberg showed Members where this is on the map, noting that if this deal does develop, it would leave them with only one lot left to sell. Other than this, Edberg noted that there have not been any new prospects. c. Gilbert Street/Bell Lease— Dulek spoke to this issue, noting her memo in the meeting packet. She stated that when she spoke to Mr. Bell, she invited him to this evening's meeting to further discuss the lease issue. However, he is not present. She asked the Commission for some direction on how they wish to proceed with this. Ogren stated that at the last meeting they had asked that he pay half of his lease, to which he has stated he is not agreeable. She stated that they could then ask that he pay half of that amount, seven and a half years, instead. Dulek noted that Mr. Bell stated that he does not want to pay anything since he no longer needs this leased ground. Members continued to discuss this issue, debating what timeframe they should request Mr. Bell pay for. Gardinier stated that she still believes he is responsible for half of what the remaining lease is. Others agreed, noting that this is what they originally agreed to and that they still agree this is what should be proposed by Dulek. Airport Commission August 21,2014 Page 3 d. Airport Master Plan—Tharp stated that the Advisory Group has now been organized, and they will be meeting Tuesday evening at 5:30. This will be their kick-off meeting. Once things get moving, Members will be seeing more of Melissa at these meetings, according to Tharp. e. FAA/IDOT Projects: AECOM (David Hughes)— i. Runway 7125 Parallel Taxiway— Hughes stated that they did get some signed change orders back from Metro and are now finalizing documents with them. ii. 2014 Iowa DOT Grant Projects— 1. Taxiway B rehabilitation and overlay— Pelling has been in and done some of their punchlist, according to Hughes. They should be able to complete this in the next few weeks. 2. Taxiway B lighting— Hughes stated that they did a punchlist walk-through today, even with the rain, and there are a few items to complete here that should take about a week. Matt Wolford with Jet Air asked if there was a light out, and Hughes responded that there is and the contractor has this on their list to repair. 3. North T-hangar pavement maintenance—Hughes stated that with this project some work is needed on the intake on the west end of the drive. It's a bit high and needs to be lowered. According to Hughes, once done this will complete this project. iii. 2015 IDOT Grant Projects—Tharp spoke to this, stating that the Transportation Commission met earlier this month and the Office of Aviation had their program on the agenda, so he was able to see a preview of what is being recommended. Tharp noted that the Airport is on the list for two projects—the fuel tanks and the electrical service line to redo electrical service to the north T-hangar area. Tharp then stated that what he would like to do is get some consensus from Members to authorize the Chair to sign for a couple of things. He noted that they have a copy of the task order he would like to have authorized with AECOM, which would approve design engineering oversight of both of these projects. Once the grant is received, this would allow them to execute the grant and move ahead with these projects, especially the fuel tank one. Gardinier asked for some clarification of the electrical service line project. Tharp responded, noting that this would be running a main service line from the electrical vault over to the T-hangars. Over the past few years, there have been several outages, especially with a couple of hangars, and this would alleviate such problems. Hughes added that they will also replace the electrical panels in the B and C hangar, and will add a few lights there, as well. Some discussion took place regarding the lighting in this area, with Gardinier asking if they could stagger the lighting throughout this area. Tharp then explained the grant process and what they are looking at in terms of these projects as far as needing to be able to move ahead with the fuel tank project especially. The discussion continued, with Tharp responding to Members' questions and noting that they would have about a $22,000 local match here. Members discussed how they might handle this situation, especially in light of the fact that they need to get the fuel tank project completed Airport Commission August 21,2014 Page 4 sooner rather than later. Hughes stated that what they have is a $74,000 electrical project, which is 85/15 on the grant, and a $67,000 project on the fuel tanks, which is 70/30 for the grant. Gardinier asked if the Airport's portion will come from its own money or City money. Tharp noted that as was previously stated during a budget conversation, this cycle of CIP is coming out of the Airport's 'Cash on Hand' from land sales. Ogren stated that she believes it is not worth worrying about the 70/30 split for payment if it is only $5,000 they are talking about for Hughes to move ahead with the design engineering services. She did caution that they make sure they don't miss out on the grant money, should they decide to move ahead with the design portion on their own. Tharp stated that he will pass this information along to the State and will let the Commission know what the response is. Dulek suggested the Commission have a motion authorizing Ogren to sign in case they get the go-ahead on this project. Ogren moved that the Commission authorize her, as Chair, to sign said contract, only if it is paying AECOM for the advance design process, and if it does not invalidate the actual grant in any way. Assouline seconded the motion. Motion carried 4-0, Davis absent. Wolford asked if there is money in the current grant for a temporary tank while the fuel tank project is taking place. Hughes responded that the $67,000 amount does not cover a temporary tank. He added that he has not had any luck finding one. Wolford stated that he heard from someone today who might have one, but that the minimum cost would be around $15,000. Members discussed this issue, with questions being raised on how the grant money might be able to cover some of this expense. Members continued to discuss the fuel tank project, with questions being raised on how they can handle the temporary tank issue. Tharp stated that they are continuing to look into this issue and will try to find a way to maintain the fuel service during this project. Tharp will let the Commission know what he finds out. f. Runway 12/30 Obstruction Mitigation—Tharp stated that the FAA has told them they need to begin their environmental assessments on the obstruction list so that the Airport is ready for 2016. This was in the five- year plan, as well. Ogren asked if this is what they were talking about last winter, and Tharp noted that it is. The next steps include identifying any environmental considerations. Odgaard asked for some background on this issue, and Tharp and Hughes responded, noting that the FAA generated the obstruction list after doing an assessment of the Airport's approaches. g. Fuel System Storage Maintenance—(See above conversation.) h. T-Hangars—Ogren asked if Members who are renters need to recuse themselves. Gardinier noted that yes, she would be abstaining from the conversation, and she stepped away from the table due to her conflict of interest. Tharp noted that Members have a memo from him in their meeting packets regarding this topic. He stated that he is split on their rates and that he has several issues to discuss. Tharp stated that he believes that rents on the north T-hangars are at their market caps, whereas rents on the south T-hangars have some room to grow. Tharp also stated that rents on the north and south T-hangars are too close together. He believes that the economies of scale for what renters are Airport Commission August 21,2014 Page 5 getting are a bit skewed. Tharp's recommendation to the Commission is basically a hybrid of leaving the north T-hangars the same, while increasing the south T-hangars by certain margins. Tharp noted that the design of the glider bay in the south T-hangars is such that it is specifically useful for only one thing, and that therefore it would not pay to raise the rent. Tharp continued, noting that the only hangars with loans on them now would be the University hangar and the maintenance shop. All of the other T-hangars are paid off now. Members discussed the rates charged at other local airports, noting the range in rates. Gardinier, speaking as a member of the public, noted that Cedar Rapids' hangars that are $88 have dirt floors and just a small asphalt pad, as well as no walls between the hangars. Tharp added that over the years they have lost some tenants to other airports, due to the rental rates, but that some come back as they get tired of the security requirements elsewhere. All of Iowa City's T-hangars have concrete floors. The difference between some hangars are the doors—manual versus electric, etc. Tharp stated that he does price comparisons with Cedar Rapids, Davenport, Ames, Tipton, and Washington. Gardinier, speaking as a member of the public, asked for some clarification of the differences between the various T- hangars, and Tharp responded. Odgaard asked Tharp if he has done a customer survey to see if tenants are satisfied or not satisfied with what they are getting for their money. Tharp stated that a survey has not been done recently. Members continued to discuss what, if any, increases they should consider for the T-hangars, with Tharp noting where he believes they should be in terms of market rates. Assouline agreed that the recommendations are for very modest increases and that they should go ahead with the new rates and leases as discussed. Discussion continued on the proposed rate structure, with Members questioning some of the changes in rates. Gardinier, speaking as a member of the public, questioned Tharp on the changes for the south end T-hangars and he briefly explained his rationale. Ogren suggested Tharp send a letter to tenants, explaining why the rate increase is coming. Ogren asked if a 4% across the board would work and Tharp noted that he will round it to an even dollar amount for tenants. This would cover the south T-hangars only. Discussion continued on the glider hangar and whether it should be increased at the same rate. Ogren summarized their decision: keep the north hangar rates the same; 4% increase to the south hangars; and keep the glider hangar where it currently is. i. Rates and Fees—Odgaard moved that they maintain the rates on the north hangars; that they increase the rents on the south hangars by 4%; and that the glider hangar remain as it is. Assouline seconded the motion. Motion carried 3-0, Gardinier recused due to a conflict of interest and Davis absent. FRO/ Flight Training Reports— i. Jet Air— Matt Wolford of Jet Air shared the monthly reports with Members. He stated that they have been changing fuel filters more often, in light of the fuel system problems they have been having. Trash and branch pickup, and mowing have been a major task this month. Tharp and Wolford both spoke to the roofing repairs and some of the water problems they had been having. Looking at the August report, Wolford Airport Commission August 21,2014 Page 6 stated that the large culvert that is near the end of runway 7 had to be cleared of trees and debris that washed down there during the flooding. Gardinier asked if there is any way that some weed killer could be put down across the old runway 18-36. Wolford stated that they would look into this. Wolford then spoke about Jet Air and how their business has been going. He stated that they have been staying busy with charters and maintenance. One item of note, Wolford stated that since 2009 they have subcontracted their flight training to Iowa Flight Training (IFT). As of today they gave notice that Jet Air would be resuming flight training again. Wolford noted that last week Jet Air bought three 172 airplanes. They plan to offer flight training in the G1000 later model airplanes, and then see how the demand is. They will also offer their 1970s airplanes as these can be rented at a cheaper rate. Wolford then responded to Members' questions regarding this transition in the flight training program. ii. Iowa Flight Training— j. Airport"Operations:" i. Strategic Plan-Implementation —Tharp noted that the City web site redesign is underway and it will be around six months before a mock- up is ready to review. He is working with City staff on the Airport's page, trying to get something that will be more in-line with how other airports do their pages. He wants to also add a 'community attractions' page so people will know what the area has to offer. Another thing that the City is doing is a policy change. This involves an increase in background checks for higher-up positions that have access to monetary accounts, credit cards, etc. This will affect Tharp's position, for example, as he would have to undergo an increased background check. Ogren asked if others would like to review the memo on this and decide how to proceed at the next meeting. Gardinier and others agreed that it sounds like a reasonable step to take. ii. Budget—Tharp stated that the Budget Subcommittee met a few weeks ago and discussed next year's budget. Tharp added that at the staff meeting on Wednesday there were some comments from the Library Director about having the Finance Director do a tour of some of the facilities to talk about the budget and also the local option sales tax issue. If everyone is agreeable, Tharp will invite Bockenstedt to the next meeting, and members agreed that it would be a good idea. Odgaard asked when the last time the Council came to the Airport was. Tharp stated that they have done joint meetings in the past on specific issues, such as the south area development, but that it has been quite a few years. Tharp suggested that the Airport Commission start going to Council meetings and give them updates during the public comment section of their meetings. This helps to keep the lines of communication open with them. iii. Management— k. Subcommittee Reports— i. For August—Budget—Tharp noted that the subcommittee will meet again soon to work on the FY16 budget. Gardinier asked if they would be meeting in the next few weeks, and Tharp stated that it may be Airport Commission August 21, 2014 Page 7 after their next meeting, but that he will get some updated information to Members prior to a meeting time. ii. For September— Review use of subcommittees — Ogren stated that she thinks this is a good idea. Tharp noted that they have talked about this for some time, and now that they have a full Commission with five Members, he believes it's an appropriate time to review this. I. Commission Members' Reports—Ogren stated that she saw the DC-3 on Monday, and that she even saw Tharp and Gardinier after they went for a ride in it. Tharp added that he took a second ride, this one in the jump seat. He added that the plane left around 9:00 A.M. today. Ogren then reminded everyone of the Sertoma breakfast on Sunday. Tharp responded to Member questions regarding this event. Odgaard asked about the issue of gate locks, which was discussed at the previous meeting. Tharp responded that he has followed up with some fencing companies and is still awaiting final pricing on this. Odgaard noted that one of the doors to the terminal building is not locked and can be accessed at all hours, without a code. Tharp stated that he will look into this immediately to make sure the door is locked consistently. Gardinier stated that she enjoyed her ride on the DC-3. She and Tharp shared their experiences with the plane. m. Staff Reports —Tharp stated that the fifth Commission Member has been appointed and should be at next month's meeting. He noted again his experiences with the two flights on the DC-3, adding that there are some videos on the Airport's Facebook page with a jump seat view of the take- off and landing. Dulek shared that this will be her last official meeting, due to some shuffling of duties within the City Attorney's office. Eric Goers will be the new attorney assigned to the Airport. The Commission welcomed Goers to their meetings and thanked Dulek for her service. SET NEXT REGULAR MEETING FOR: The next regular meeting of the Airport Commission will be held on Thursday, September 18, 2014, at 6:00 P.M. at the Airport Terminal Building. ADJOURN: Ogren made the motion to adjourn the meeting at 8:24 P.M.; seconded by Assouline. Motion carried 4-0, Davis absent. Liv X545 CHAIRPERSON DATE Airport Commission August 21,2014 Page 8 Airport Commission ATTENDANCE RECORD 2014 TERM ow 0 0 0 o io to a a o o a NAME EXP. 0 A orn a 01A o V i in w i A A A A A A a A A A A A a 03/01/14 X X X X X X X NNNNNN Howard MMMMMM Horan Minnetta 03/01/15 XX XXX XXX X X O/ X X Gardinier E Jose 03/01/16 XX XXX XXX X X XX X Assouline Chris 03/01/14 X X XX XXX X X X XX X Ogren Paul 03/01/17 XX XX XXX X NNNN N Hofmeyer M M MM M A.Jacob 03/01/17 NN NN NNNN NNNX X Odgaard MM MM MMMM MMM David 03/01/17 NN NN NNNN NNNN 0/ Davis MM MM MMMM MMMM E Kew X = Present X/E = Present for Part of Meeting O = Absent O/E =Absent/Excused NM = Not a Member at this time