HomeMy WebLinkAbout02-21-2011 Airport Commission Meeting Minutes Airport Commission
February 21,2011
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MINUTES FINAL
IOWA CITY AIRPORT COMMISSION
FEBRUARY 21, 2011 —6:00 P.M.
AIRPORT TERMINAL BUILDING
Members Present: Jose Assouline, Minnetta Gardinier, Howard Horan, Rick Mascari, Steve
Crane
Members Absent:
Staff Present: Sue Dulek, Michael Tharp
Others Present:
RECOMMENDATIONS TO COUNCIL: (to become effective only after separate Council
action):
CALL TO ORDER:
Chairperson Horan called the meeting to order at 6:06 P.M.
ITEMS FOR DISCUSSION/ACTION:
ADJOURN:
1. Upcoming meeting with City Council: Gardinier asked Tharp for a brief explanation of
the airport debt and how some of the debt structures where created. Tharp explained
that previous hangars built in the late 90s were structured when a different FBO had
been operating on the field. Due to financial issues the FBO left and that left the Airport
with reduced income. The Finance Department had then restructured the loan
repayments to meet the existing income of the airport. That resulted in several loans
been amortized over a much longer period. Mascari asked about not continuing with the
Hangar L project in favor of using funds that had been allocated towards it to pay off
some of the hangar debt. Members then discussed where Hangar L was and that they
committed to building it when they signed the grant agreement with the state. Horan
asked Commission members whether they favored a plan to use Aviation Commerce
Park sale proceeds pay off all the debt or to pay off debts that had been extended by
Finance. Gardinier then suggested that the Commission should use a percentage of
sales with the possibility of paying more if they don't have a readily available grant
opportunity. Mascari suggested they first obligate funds to pay off Hangar K and Hangar
I and then use the rental payments on those buildings to accelerate the repayment of
Hangar F. Mascari noted that it would take about 2 and half lots to pay off the first two
hangars and then it would bring the repayment of Hangar F to a 7 year window. Mascari
added that following this they could then revisit the repayment of the remaining debts.
Members then took turns giving their opinions on how to best repay the debt. Tharp
noted that based on his feelings through the most recent budget discussion was that the
Airport is close to reaching the debt ceiling that council is comfortable with it having, and
that any future projects would need to be able to be funded through cash or grants
without debt until some of the existing debts had been repaid. Horan then suggested the
Airport Commission
February 21,2011
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Commission offer a position of willingness to obligate Aviation Commerce Park sales
proceeds to repay the existing debt. Gardinier suggested they limit the initial offer to
50% of the proceeds, suggesting that would also help to establish the reserve fund as
well as save money for future projects. Members then discussed what amount of
proceeds they wanted to have obligated to debt repayments. Horan asked if
Commission had consensus to obligate 50% of the sales proceeds from Aviation
Commerce Park which members agreed. Horan asked about the establishment of the
reserve account. He noted they had previously discussed $100,000 and asked if that
was still the consensus. Members discussed the reserve fund and consensus was that
$100,000 was sufficient and that those funds would be used for high dollar repair items
and emergency needs. Assouline asked about how the meeting with City Council would
be conducted. Dulek noted that the meeting would be a work session with Council and
Commission members seated around a table. Dulek noted that the meeting would likely
be at 7:15 and that she or Tharp would send the actual time to members once it was
finalized. Horan noted he would put together the consensus statement and that he
would email it to Tharp to send to embers to review.
2. March meeting date—Tharp noted that this was added because the March 17th date
set at the last meeting was in the middle of spring break week. Tharp noted that if the
Commission wanted to change the date they would also need to reset the public hearing
for the Army Reserve Lease. Members chose to reset the regular Commission meeting
date to March 10.
3. US Army Reserve Lease— Consider a resolution rescinding Resolution No. A11-05
and setting public hearing for lease with United States Army Reserve—Mascari
moved the resolution No. A11-06, seconded by Gardinier. Motion passed 5-0.
Horan asked for a motion to adjourn. Crane made the motion to adjourn the meeting at 7:20
P.M.; seconded by Gardinier. Motion carried 5-0
Chairperson Date
..,
Airport Commission
February 21,2011
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Airport Commission
ATTENDANCE RECORD
2011
TERM N N
N j N)
O V zt
NAME EXP. _s 1
j
03/01/13 X X X
Rick
Mascari
03/01/14 X X X
Howard
Horan
Minnetta 03/01/15 X X X
Gardinier
Jose 03/02/12 X X X
Assouline
Steve 03/02114 O/E X X
Crane
Key:
X = Present
O = Absent
O/E =Absent/Excused
NM = Not a Member at this time