HomeMy WebLinkAbout04-10-2008 Airport Commission Meeting Minutes MINUTES FINAL
Iowa City Airport Commission
April 10,2008
Iowa City Airport Terminal—6:30 PM
Members Present: Greg Farris, Randy Hartwig,Howard Horan,Janclle Rettig,John
Staley
Staff Present: Sue Dulek,Michael Tharp
Others Present: John Yeomans,Peggy Slaughter,Randy Miller,Al Wells,David
Hughes,Minnetta Gardinier,Phillip Woolford,Jay Honeck,Jason
Honea, Corey Pospisil
DETERMINE QUORUM:
Chairperson Farris called the meeting to order at 6:32 P.M.
RECOMMENDATIONS TO COUNCIL: none
APPROVAL OF MINUTES FROM THE MARCH 13,2008 MEETING:
Farris asked if anyone had any changes to the March 13,2008 minutes. Staley moved to
accept the minutes of the March 13,2008,meeting as presented; seconded by Hartwig.
Motion carried 5-0.
PUBLIC DISCUSSION:
John Yeomans,Farm Manager with Farmers National Company,stated that he has some
pictures of their project that he would like to share with the Commission. He noted that it
looks really nice, and that the fence gate is being reinstalled as it was installed
improperly. He added that the contractor putting in the roadway found this error. He
stated that they have also been trimming brush along the fence and cleaning up the area.
Yeomans stated that schedules are getting set up,as is soil sampling,and that the farm is
getting ready for spring.
ITEMS FOR DISCUSSION/ACTION:
a. Aviation Commerce Park—Hartwig made a motion to move Item
4.d.vii up to the discussion with 4.a.; seconded by Staley. Motion
carried 5-0. Randy Miller told the Commission that they have bad
several more inquiries in regards to lots,but nothing official yet. Peggy
Slaughter added that the interested parties need to find investors before
they can build,and that this process takes a bit longer to iron out. Dulek
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noted that an offer was received yesterday on Lot#1, from Mr.Wells (on
behalf of his LLC),and that it expired today. She added that it was not
accepted because of contingencies that were part of the offer,and that due
to the time constraints there was not time to review this with the
Commission prior to the expiration at 5:00 P.M. Dulek continued,stating
that the Commission has two options now with regards to the United
hangar—they can reward the demolition contract to the lowest bidder, or
they can explore an agreement with Mr. Wells. Dulek stated that if they
chose the latter,then a myriad of issues would need to be addressed,such
as when would the hangar come down,what FAA money is available, and
other Airport-related issues that could be included in an offer between Mr.
Wells(his LLC) and the Airport. She further explained what the
Commission needs to decide upon at this evening's meeting.
The discussion began with Rettig asking Slaughter what the lot is listed at.
Al Wells joined the Commission at this point in the discussion. At 6:45
Rettig moved to temporarily adjourn the meeting due to a tornado
warning; seconded by Farris.
The meeting resumed at 8:00 ,with discussion returning to the Aviation
Commerce Park and the United hangar demolition and offer. Wells noted
that his new offer would not have anything to do with the United hangar or
the land lease or the fence agreement. He added that what he understands
is that Iowa City City Council needs to review the offer, and then the
Airport Commission will review it. Wells stated that this offer expires
tomorrow at 5:00 P.M. Horan asked what the details of this offer are,and
Wells stated that it's based almost exactly on the ITC purchase,$180,000,
which is 80%of the asking price,which is what the ITC offer was. Wells
added that there are requirements of due diligence that cover adequate
enough time to acquire the United hangar and get it over to this lot, if he
receives approval for this. Mother alternative,according to Wells,is that
if a contractor does get the demolition contract,he could still pursue
obtaining the hangar from the contractor. It was noted that the low bid for
this demolition is $103,060,and the high bid was $135,040,with four total
bids received. Horan noted that it appears to him that the contractors
would be considering the value of the salvageable steel when demolishing
this hangar, and he questioned the cost to Wells. Wells added that perhaps
he could subcontract for the contractor, and take care of getting the hangar
down himself. Rettig asked how much they have invested in this bidding
process so far, and whether they could revisit this at a later time.
Discussion ensued,with Members discussing rebidding and what they
might expect if they did do this. Tharp noted that one concern is that they
have the bid process underway already,and that he has discussed this with
the FAA already. He stated that he believes that if they did rebid,the
FAA would not contribute to the cost of doing this a second time.
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The discussion continued,with Hartwig stating that his concern is that
they don't have much time left on this. He asked David Hughes of Earth
Tech for some clarification on time frames. Hartwig noted that the
historical aspects of the United hangar were taken care of as planned,and
that he believes nothing should uphold the opening of the runway, as they
have been planning accordingly all along with this project. Members
continued to discuss their concerns,with Dulek responding to time frame
questions for them. The discussion turned to whether or not the FAA
would even allow the hangar to be moved and installed on Lot 1 in
Aviation Commerce Park. Wells questioned if the bids would actually go
up,if the Commission chooses to do a rebidding process. He stated that
he believes the bid prices would go down. Rettig noted that steel prices
have climbed,and scrap metal is a high commodity right now. She also
questioned Wells having a subcontract type of deal with whoever is
awarded the demolition contract. Wells addressed some of the concerns,
stating that the"through the fence" agreement is pretty cut and dried. He
added that if you follow the minimum standards,you can still have a
"through the fence"facility that will compliment the Airport. He stated
that the facility he is proposing could potentially have twenty airplanes at
it,and that this would be a sizable addition to the Airport. Wells added
that he believes this could be a win-win for everybody involved,with the
additional development outside of the Airport fence being a real positive.
Rettig noted that she is very much interested in Wells' idea,but that she
questions how this can all work.
Wells continued speaking to the Commission,explaining what all he has
researched in coming up with his proposal. He noted that he has had no
response and no guidance from the City in this endeavor,and he
questioned the process thus far. He added that the purchase agreement he
presented this evening is just for the land,and that it does not say anything
about the hangar or a"through the fence"agreement. Wells continued to
state his case,explaining how he has gone above and beyond the
minimum standards required,based on what he has read about"through
the fence"agreements. He talked about swipe card systems, identification
facts,and single-vehicle entry points at his facility,items that he claimed
the FAA requires. He compared the Merschman agreement with his
proposal,and responded to Members' questions about his proposal. Wells
added that his purchase agreement does have conditions and time frames
for other items that do not have to do with the Airport.
The discussion continued,with the Commission reviewing Wells'
purchase agreement. Rettig asked for clarification of this offer. It was
stated that this offer is for Lot 1 and the outlot. Dulek responded to
questions regarding the ITC offer,and clarified some of the issues that
Members were unsure of. Members continued discussing what they
would like to do,whether to continue with the awarding of the demolition
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bid or trying to work out an agreement with Wells. Various scenarios
were discussed,with Rettig asking what type of expenses are they looking
at if they stop the bid process for now and see what happens with Wells.
Tharp responded that it's the legal publications for the bid process and
whatever staff has to do to the plans. Therefore the republication would
not be much,but he is concerned about what the new bids could come in
at. Staley talked about having Wells deal directly with Zimmerman on the
demolition and obtaining of the United hangar that way. Tharp noted that
the FAA has to approve what they come up with.
It was pointed out that the bids are for not only the demolition and
removal of the hangar,but also to remove the debris and the concrete, and
to replant the grass in this area. Wells again talked about how in a case
like that,he could offer$30,000 to the contractor for the hangar, and how
the contractor would still come out ahead. He added that he is not familiar
with Zimmerman Excavation,but that he is familiar with the other three
bidders.
Farris stated that they needed to make a decision and move on. He added
that as a steward of the Airport, and with the money and funding that they
have,as well as the runway extension and the amount of risk that he sees
at the moment,he believes is beyond what they should take on at this time.
Farris moved to consider Resolution A08-13 Accepting Bids and
Awarding Contract for the Demolition of the"United" Hangar;
seconded by Hartwig. Staley added that his preference would be to
work out some sort of arrangement to delay the action,but that it is not
practical at this time. If they aim to get the extended runway open by July
1, Staley believes they need to move forward. He added that Wells can
work out the possibility of obtaining the hangar with the contractor.
Dulek responded to this, clarifying Members' concerns. Rettig stated that
she will be voting no on this issue,briefly adding that she believes it could
be a calculated risk to keeping the United hangar close by. She believes
having this hangar on Lot 1 could help relieve space issues. Wells asked
if there is a financial penalty if the runway is not opened by July 1,and
Members responded to this. Jay Honeck added that he believes Wells has
a great idea,and that the Commission is missing a great opportunity if
they don't take advantage of this. Motion carried 4-1;Rettig voting no.
b. Hertz—Tharp began the discussion, stating that the Hertz lease is before
the Commission as there have been some changes to their operations at the
Airport. He added that the Commission needs to renegotiate the lease
basically. Rettig asked if Tharp obtained the information she had
requested. She would like to know how many cars Hertz has on the
airfield at any given time. Corey Pospisil and Jason Honea spoke to the
Commission on behalf of Hertz,and responded to Members' questions
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concerning their operations. It was noted that Hertz has two full-time
employees at present, and plan to add a third in the next month or so.
Rettig asked ag.in how many rental cars could be expected to be on the
airfield, and was told it could be as high as 50 rental cars,plus
employees'. She asked how many spaces Hertz rents from the Airport,
and Tharp responded that their lease defines it as seven to eight spaces.
The Hertz representatives explained a typical week for their business and
continued to respond to Members' questions. Rettig stated that she is all
for leasing space to Hertz,but that their lease needs to be redone to reflect
the space they are actually using. Hartwig stated that he agrees,as the
original lease dealt with the seven to eight spaces at the south end of the
lot. He questioned though if they have the space to have 50 cars. The
Hertz reps responded again, stating that they would most likely not have
50 cars on the airfield at all times. Rettig asked for more details on the
sublease that Hertz has with Jet Air, and stated that she would like to
review a copy of this lease. She asked Dulek for clarification on subleases
on the airfield,and Dulek stated that most likely there is a provision that
there are no subleases without the Commission's approval. Rettig stated
that she would make the motion to dissolve this lease with Hertz,and in
the interim,negotiate a new lease with them. Horan agreed with her,
stating that he would like to see the monthly fee of$100 go to $300,and
to lease three more parking spaces to Hertz at$40 a month. The
discussion continued,with Dulek responding to questions on the original
lease with Hertz. Members also discussed what time frame they will give
in renegotiating this lease,and the Hertz reps explained what they need to
do on their end. Rettig refined her motion,adding a 90-day time frame to
negotiate this lease. Rettig also clarified the lease agreement that Hertz is
to continue following,until their new lease is agreed upon. Honea noted
that he does not know what the management at Hertz will want to do,and
that he will have to go through the channels on his end to see how they
want to handle this. Rettig volunteered to serve on the subcommittee that
will work with Hertz on the lease negotiations.
Rettig made the motion that the Airport Commission give 30-days
notice to dissolve the current lease with Hertz,and in the interim a
new lease will be negotiated within 90 days; seconded by Horan.
Motion carried 5-0.
c. U.S. Army—Tharp stated that two issues have come up with this lease.
One is that the Army wants more than a 30-day notice to vacate. They
would like to have 180 days. Also,Tharp noted that there was a clause
that Dulek had some opinions on the"reasonable consideration"issue.
Dulek briefly addressed this with the Members. Rettig asked if the U.S.
government is actually nine months behind on their lease,and Tharp stated
that that is true. Rettig added that they would not accept this from any
other lessee.
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i. Consider a Resolution Amending Lease--Staley moved to
consider Resolution A08-10,amending lease; seconded by
Hartwig. Motion carried 4-1,Rettig voting no.
d. FAA/MOT Projects—Earth Tech
i. Runway 7/25—David Hughes addressed the Commission,stating
that the Members have a resolution to approve tonight which will
accept the work for the Phase 2 runway grading. Hughes added
that they have met with the pavement contractor.
1. Consider a Resolution Accepting Work for the Phase 2
Runway 7-25 Extension Grading--Farris moved to
consider Resolution A08-11,accepting work for the
Phase 2 runway 7-25 extension grading; seconded by
Horan. Motion carried 5-0.
Hughes added that they are currently in the design phase for the
rehab on the remaining portion of the runway. He noted that this
would be an overlay. Hughes stated that the FAA has shortened
their fiscal year by three-quarters;therefore,he stated they need to
have a grant in place by mid-June. He stated that the Commission
would need to have a special meeting in order to meet the
timeframes being set forth by these deadlines. A discussion
ensued on the best time to hold these meetings, and Monday,April
28th,was chosen for a morning meeting to take care of the overlay
issue.
ii. South Aviation Development Study—Hughes stated that they
would be finalizing this report soon.
iii. South Taxilane Rehab—Hughes noted that they have met with the
City and are working with the contractor on a few issues.
iv. North Taxilane Rehab—Survey was completed,and Hughes stated
they are in the design phase.
v. Jet A Fuel System/AvGas Upgrade—Hughes stated they have
met with the FBO and the contractor,and are resolving some
issues.
vi. Terminal Apron Rehab—Hughes stated that the contractor is
basically done,and is requesting an early release of his retainage.
1. Consider a Resolution Approving Early Release of Retainage—
Staley moved to consider Resolution A08-12 Approving Early
Release of Retainage; seconded by Hartwig. Motion carried 5-
0.
vii. Obstruction Mitigation—FAA approval on funding has been
received. Mediacom and MidAmerican are lined up to get their
pieces done.
viii. United Hangar—(Discussed above under 4.a.)
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IDOT FY2009 Grant Application—Hughes stated that there are
different options for hangars—one being corporate style, and the
other is community type t-hangars. He added that they have
talked to some hangar manufacturers, and he shared the cost of
installation per square feet. A 120 X 120 hangar would be about
$1.4 million. Hughes continued to respond to Members'
questions regarding the cost of building new hangars. It was
noted that the deadline for this grant is May 2"d. The discussion
continued,with Members talking about what they may be able to
afford to do since the price of steel has climbed so dramatically.
Tharp and Hughes shared what they have come up with,cost
wise,for a possible hangar project. Rettig asked if they
shouldn't look at an 80 X 80 hangar, and what type of revenue
they could expect from it. Tharp stated that with Hughes'
figures,this would be around$600,000 to build. Hughes asked
the Members for a dollar figure so that he can work to see what
that would build. Rettig stated a maximum of$650,000 sounds
good, and hopefully the State would give them$250,000. After
a brief discussion,the Members agreed on the$700,000 range
and what type of building could they get for that amount; and
what type of return would they get on their investment. Tharp
and Hughes will work on gathering this information for the
Members.
e. Airport"Operations": Strategic Plan-Implementation; Budget; and Airport
Management—Rettig had asked questions of Tharp in an earlier email, and
they shared this with Members. The first item was a question about
unemployment and seasonal employees. Next she asked about Tharp's
classification in the budget. Tharp explained that he was hired at 60%time,
and Rettig questioned how he could have increased his time without approval.
A discussion ensued on this,with Members reviewing how this would have
occurred. Rettig explained that the Commission has not approved Tharp to be
paid at a higher rate. Dulek stated that they need to decide how they will deal
with this from now on. Staley asked if the Chairperson doesn't have the
authority to sign the timesheets and to allow Tharp's position the hours it
needs. Staley moved that they give the Airport Commission Chairperson the
authority to sign the timesheets for the Airport Specialist to authorize
payments based on what the Chairperson feels is necessary to get the job
done. Horan stated that he is in favor of staying within the budget, and that he
found it difficult to count up all the hours for the employees when he was
faced with this. He added that there is not much they can do about what's
already happened,and that he agrees they need to decide what to do from here
on.. Hartwig agreed, stating that he believes they can rely upon the Chair to
handle this as Staley has suggested. Staley moved to give the Airport
Commission Chairperson the authority to pay beyond the.6 FILE,if
needed; seconded by Hartwig. Motion carried 4-1,Rettig voting no.
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Rettig then asked what they plan to do about this as they are over budget. She
asked that the Legal Department address this, and what happens when they
have beyond the budgeted 1.6 employees. Horan added, how can they operate
over budget.
Tharp stated that he also has the snow removal report, and Rettig asked that he
hold that for the next meeting. She asked that Tharp explain how they will get
through the summer, and where they are going to get the extra money they
need for the budget. Staley stated that he has one comment in looking at the
total, and times four,he believes they will have no problems. Tharp explained
the changes to the various budget lines that Rettig had questioned in her
earlier email. Rettig noted the memo from Jeff Davidson that the Members
received, and Tharp stated that a request was made from the City Council on
how airports are funded elsewhere, and that he received a copy of this memo
from the Interim City Manager. Rettig expressed her concerns about this
issue.
Tharp stated that in his conversations with Hertz recently,it was brought to
his attention that there is some roof leakage and that he is working on getting
someone out to look at it. Hartwig also noted a concern about garbage in the
wash bay area, and Tharp stated that this has been relayed to Hertz personnel.
f. FBO Staff Report—Phillip Woolford of Jet Air stated that he didn't have
much to add this evening. He noted that they are looking forward to the
runway opening. Horan asked how long it is taking to fuel up with the Jet A
fuel system, and Woolford responded. It was noted that for the helicopters,it
is working well.
g. Subcommittees' Reports—Farris stated that as soon as the weather breaks,
they hope to start on the shelter. He noted that they will be meeting the first
part of May to finalize some fundraising plans.
h. Commission Members' Reports—Horan noted that he drove down and looked
at the gate that Merschman put in, and that it looks like things are moving
forward. Farris stated that he has been meeting with the City Council
Members,and he hopes to get Regenia Bailey down for a flight. Farris then
spoke about Angel Flight and their thank you to the Airport recently.
i. Staff Reports—Tharp reminded Members of the Aviation Conference on
April 23 and 24.
SET NEXT REGULAR MEETING FOR: May 8,2008, at 5:45 P.M.
ADJOURN: Meeting adjourned at 10:13 P.M.
S/ISt20°?
C s r 'ERSON DATE
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Airport Commission
ATTENDANCE RECORD
YEAR 2008
(Meeting Date)
TERM 1/10 2/14 3/6 3/13 4/10 5/8
NAME EXP.
Randy Hartwig 3/1/09 X X X X X
Greg Farris 3/1/13 X X X X X
John Staley 3/1/10 X X X X X
Howard Horan 3/1/14 X X — X X
Janette Rettig 3/1/12 X X X X X
KEY: X = Present
O = Absent
O/E= Absent/Excused
NM= No meeting
— = Not a Member
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