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HomeMy WebLinkAbout04-13-2006 Airport Commission Meeting Minutes • Airport Commission April 13, 2006 Page 1 MINUTES FINAL Iowa City Airport Commission April 13,2006 Iowa City Airport Terminal—5:45 PM Members Present: Randy Hartwig, Chair; John Staley;Howard Horan(arrived late); Greg Farris,Janelle Rettig, Dan Clay Staff Present: Sue Dulek,Michael Tharp Others Present: David Hughes,Dick Blum,Jay Honeck,Harry Wolf DETERMINE QUORUM: Chairperson Hartwig called the meeting to order at 5:47 PM. RECOMMENDATIONS TO COUNCIL: APPROVAL OF MINUTES FROM MARCH 9,2006,MEETING: Chairperson Hartwig asked if there were any additions or changes to the above-named minutes. Hartwig noted that Item A part 1 - "construction" should be"obstruction." Also, in regards to the hangar floor questioned the amount of the-hangar contract adjustment. Rettig noted that on page 2, item C,where it states, "Rettig stated..."that the wording sounds as if Wal-Mart is being asked to stabilize their debts, and she suggested using"the Airport can clear their debt..." Staley moved to accept the minutes of the March 9,2006, as amended; seconded by Farris. Motion passed 4-0; Horan absent. PUBLIC DISCUSSION: None. ITEMS FOR DISCUSSION/ACTION: (Rem A was addressed following Rem B.) A. Parcel of Land: Parcel No. 1020177001 (the"Hagen parcel"located on Highway 1 between land owned by Patricia Wade and Ann Hargrave) (Discussion to be at 6PM)—Hartwig asked Tharp how many responses they have had to date on this. Tharp noted that they have one response from Westside Automotive, based on a few contingencies, for the purchase price of$440,000. He states that this parcel was assessed at$432,000. Hartwig noted that he is open to discussion on this, as they need to decide how they want to move forward. Horan discussed leasing versus buying on this parcel, stating that they should offer a 20-or 30-year lease on this. Rettig stated that if the property is sold, she would like to see some sort of contingent that they have to be able to apply the money to airport operations and not return it. Dick Blum noted that this is due to F.A.A. regulations and the money has to go to the Airport budget. Rettig noted that she misspoke—she meant to say for capital improvements. Blum stated that"if'they were allowed to keep this money,they would have to use it for Airport budget. Blum stated that they could take a lump sum and immediately invest it in ten hangars, for example, Airport Commission April 13, 2006 Page 2 which would provide immediate income. In the long-term, he states this would be much more valuable,versus the leasing option. Rettig noted that they should consider returning this property to the tax rolls, for the obvious benefit of tax dollars. Staley asked if this property is ever going to be of use to the Airport at any time in the future,to which Hartwig responded to the negative. This area was part of the Runway Protection Zone, at one time. Tharp noted that if they do continue with the sale of this parcel,the F.A.A. will probably want some money back as the Airport has not controlled it for 20 years. Staley asked if anything could be built on this property, and Horan noted that basically only light poles would be constructed,not an actual building. Rettig stated that she would like to give others the opportunity to speak on this before they make any recommendations to the City Council. Hartwig stated that they need to set up a sub-committee to put the issues into focus. Horan,Hartwig, and Tharp will work on this issue. Blum asked if they could have this done by the next Airport meeting. Dulek stated that the Commission could get clarifications from the FAA regarding the use of funds. (TAPE ENDS) The discussion turned to getting this completed by June 1, in order to take advantage of the construction season. Rettig suggested that the sub-committee check with Craig Willis and see if the interested party would even consider a lease. Blum asked if it is possible that the F.A.A. would have them use this money for the Runway Project. Blum noted that everyone should have an email from the DOT regarding reduced funding for aviation, and if this happens,the Airport will lose their$150,000 per year in discretionary entitlements. Blum noted that his clients made an offer to purchase, not lease, and if they are going to come back and ask about a lease now, he believes his clients will not be interested any longer. He suggested they do as Horan said and lay out what they are interested in exactly—for example, a 20- year lease for a specific amount. B. Airport Zoning Ordinance—Hartwig noted that this is in regards to whether or not they want to continue the zoning ordinance. Dick Blum stated that a couple years ago,the Commission directed a revision of the Airport Layout Plan and at that time,the Commission wasvery interested in seeing the plan constructed in such a way that it could provide an instrument landing system at some point. Blum stated that at the same time, it was appropriate to revise the Airport Zoning Ordinance. Blum stated that last year a landowner wanted to open a business in this area, and therefore,the City looked into this,noting the discrepancy between the Zoning Ordinance and the ALP. Members asked what needs to be done in order to move forward withthis. Blum stated that it is very minimal. Dulek stated that in a couple of years the airport layout plan map will be changed. Rettig asked how the Airport Zoning Commission ties into this. Blum stated that the Airport Zoning Commission is a body that is created by State Code that is the actual group that would adopt this Zoning Ordinance. He stated that this group consists of two representatives from the City,two from the County,and a fifth person who is chosen by the members, typically from Zoning or something like that. Horan asked what possible problems could arise if this is not changed. 2 Airport Commission April 13,2006 Page 3 Blum stated that the worst-case scenario would be that someone wants to use their land and due to the zoning, it would not be permitted. They could then say the Airport is acting in a capricious manner and could fight the fact that the zoning will not allow what they want to do on their land. Hartwig stated that he feels they should move forward on it before they run into something like this. Horan stated that he was on the Airport Zoning Commission at one time and that this issue has been tossed around for at least 10 years. He also feels that this needs to get done now. The discussion continued,with several members weighing in on the topic. Horan moved that the Airport Commission should move forward with the Zoning Ordinance; seconded by Staley. Motion carried 5-0. C. FAA/DOT Projects—Earth Tech—David Hughes a. Runway 7/25 i. Consider resolution setting a public hearing for the plans, specifications, form of contract, and estimate on cost for the construction of"Phase 2 Project within the Runway 7/25 Runway Extension Project to grade the area for runway extension—Hartwig noted that the above resolution needs to be approved. The hearing date will be May 1, 2006, at 7:30 A.M. Staley moved to consider Resolution No. ; seconded by Horan. Resolution No. passed on a roll call vote of 5-0. ii. Update—Dave Hughes noted that the box culvert project is about 99% complete now. He stated that they were doing final grading today, and the scheduled completion date is May 7. b. Taxi-lane North Tee's—Hughes noted that they are just now moving to the design phase on this and hope to have it out for construction this summer, as planned. Hartwig stated that he had been talking with someone about how they are going to handle this—whether planes should be moved or if people should leave their planes in the hangars during this project. Hughes stated that the t-hangar floor contractor is done with his work now and everyone has been happy with it so far. c. ASOS Relocation—Hughes stated that they have been working with the Weather Service and the FAA on this and they have agreed on a location. Hughes stated that the paperwork and necessary steps are being taken on this. Hughes was asked the cost of this project, and he stated it was in the $30,000 range. Hughes further stated that they have submitted, on the DOT side, a Vertical Infrastructure Grant recently and that this grant includes concrete floors in Hangar A, some more pavement rehab in the hangar areas, and walk-in doors. Rettig asked about 3 Airport Commission April 13, 2006 Page 4 the Strategic Plan and"curb appeal"and asked if they should not improve some things like painting doors. Hartwig noted that some of these doors are going to be replaced as they are old. Rettig noted that she was at the self-serve pump recently and she noted that gas would spurt out even when the person was done pumping. Tharp will look into this and see what is going on. D. Eastern Iowa Big Kids Toy Show—Clay noted that plans are coming along nicely for this year's show. The show starts with a Friday night hangar party for the sponsors of the show. He noted that he and Jay met with the people at the Iowa Children's Museum regarding the design and construction of the aviation exhibits that will be built there with the use of money generated by this show. Clay and Honeck stated that this display will be right inside the large windows and can be seen from the outside, as well. Clay fielded questions from the members regarding this upcoming show. E. Aviation Commerce Park—Harry Wolf was present to address the members. He stated that he was happy to hear that the lawsuits regarding the Wal-Mart project are now over and the process will be moving forward, as planned. He stated that they are optimistic that everything will proceed smoothly. Dulek responded to questions regarding the possibility of an appeal and to any contingencies on this project. Wolf next addressed commercial land leasing and current zoning issues. Some points that he raised regarding commercial land leasing were legal issues, and is the property stand-alone or part of a larger project. He stated that currently they are proposing to market this as two separate parcels—the 13-acre adjacent to Wal-Mart, and the 2-plus acres on the other side of the street, noting that this 2- acre parcel may very well be a stand-alone property. The discussion turned to lease terms and options,with Wolf giving the members his thoughts on these issues. Another factor that Wolf discussed was on-going expenses for tenants, such as snow removal. Discussion continued on fair market value and return on investment issues. (TAPE ENDS) F. Airport Operations: Strategic Plan-Implementation; Budget; and Airport Management—Rettig questioned the electric and heating budget noting that it has gone over, and there was a large monthly charge. Tharp responded that there was an error in the reading of the meter, and the airport has a$566 credit on their bill. Clay questioned whether the possible rise of prices was due to the increased usage from Hertz being in a facility. Staley asked Tharp to look at use vs. price to determine whether the increase was a result of increased costs vs. increased usage. Tharp noted he would put information together for the next meeting. Hartwig noted that the budget only had a small increase to compensate for inflation instead of the large rise of heating prices. Rettig questioned the budget item of Testing Services. Tharp noted the charge was for a 6month retest to the underground fuel tank following repairs last fall. Retting asked about the technical services, and Tharp noted that is the locating for cleaning services performed at the airport, as 4 Airport Commission April 13, 2006 Page 5 well as the current bill from EarthTech regarding the survey done for the Hagen Parcel. Rettig requested a future agenda item regarding the Operations Specialist, Consultants, and Management Agreement with Jet Air,to discuss their relationship with each other, and the airport. Rettig discussed the Capital Projects, and that they aren't in the monthly budget reports. She questioned if there is a way to reflect the capital charges, so the airport can better show its actual budget. Rettig asked about the proposed Economic Coordinator position which the city would like to make full-time, and draw upon the resources of several departments (including the airport)to help fund. Hartwig responded he had discussed the position with the city manager, and that this agreement was made. Tharp noted the registration for the American Association of Airport Executives Certified Member Review Course was open. Tharp noted that the cost would be approximately$2700. Tharp further described the program and expressed that by sending him the airport would gain a better trained and credentialed employee. Horan moved approval of Tharp's request to be sent to this conference. Seconded by Staley. Approved by voice vote. MEETING ADJORNED—SEVERE WEATHER G. Subcommittees' Reports— H. Chairperson's Report-- COMMISSION MEMBERS' REPORTS: STAFF REPORT: SET NEXT REGULAR MEETING FOR: May 11, 2006 @ 5:45 P.M. ADJOURN: Meeting adjourned at 8:00 P.M. due to severe weather. 1� D ld\ S'I S`U6 C airperson Date 5 Airport Commission April 13,2006 Page 6 Airport Commission ATTENDANCE RECORD YEAR 2006 (Meeting Date) TERM 1/12 2/9 3/9 4/13 5/11 NAME EXP. Daniel Clay 3/1/08 — — — --- Randy Hartwig 3/1/09 X X X X Greg Farris 3/1/07 0 X X X John Staley 3/1/06 X X X X Howard Horan 3/1/08 X X X X Janelle Rettig 3/1/12 — — X X KEY: X = Present 0 = Absent 0/E= Absent/Excused NM= No meeting = Not a Member 6