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HomeMy WebLinkAbout04-22-2004 Airport Commission Meeting Minutes 0 MINUTES IOWA CITY AIRPORT COMMISSION THURSDAY,APRIL 22,2004—12:00 P.M. IOWA CITY AIRPORT TERMINAL CALL TO ORDER: Chairperson Hartwig called the meeting to order at 12:01 p.m. MEMBERS PRESENT:Randy Hartwig,John Krstenansky,John Staley,Daniel Clay, Carl Williams MEMBERS ABSENT:None STAFF PRESENT: Ron O'Neil OTHERS PRESENT: Kim Brogan-Coleman,Michelle Robnett RECOMMENDATIONS TO COUNCIL:None PUBLIC DISCUSSION—ITEMS NOT ON AGENDA: No items were presented. ITEMS FOR DISCUSSION/ACTION: a. Aviation Commerce Park agreement—Iowa Realty O'Neil said the agreement was the same as the one the Commission previously accepted,except the term is 90 days instead of one year. O'Neil said the Commission agreed that if they were not satisfied at the end of 60 days,they would consider going out for proposals at the end of the 90-day period. The Council passed the agreement on April 20 with no discussion. Clay asked when the 90 days started? O'Neil said it would be from the time the agreement was signed by the Council and Commission. Krstenansky asked about the marketing plan from Iowa Realty? O'Neil said he has contacted Scott Byers and has invited him to the next meeting to present information to the Commission. Clay made a motion for resolution to accept the agreement with Iowa Realty. Krstenansky seconded the motion and at roll call vote,the motion passed 3—0,with Staley being absent and Williams abstaining. b. Flight training school agreement—Kim Brogan-Coleman presented information to the Commission. Hartwig said the purpose of the meeting today was to confirm the details of the agreement and make sure everyone is in agreement with what is proposed. Brogan-Coleman said she wanted to address changes she suggested to the agreement and a proposal for renting part of the hangar. Hartwig said he wanted to clarify something that was brought up at the last meeting. He said that the proposed agreement is for two years. The Commission can not guarantee that there will be some place for Brogan-Coleman to move to when it is time to tear down or move the United hangar. If it is a business that is going well, the Commission will do whatever is possible to assure success for the business at the Airport. 1 Clay asked if the purpose of today's meeting was to agree on the principal issues and sign an agreement? O'Neil said it would depend on how much change there was to the agreement that was sent to the Commission for review. He said if it is just clarification to what was in the agreement,the Commission could move forward with accepting the agreement. If it was something substantive or something was being added,the Commission should take more time to review it. Williams said he was hoping Dulek would have been at the meeting. O'Neil said Dulek had to be in court this morning and did not know what time she would get out. She has reviewed the agreement and her comments have been incorporated in the document. O'Neil said the only response he is waiting for is from Erin Belting on a clarification to the insurance. O'Neil said most of the changes suggested by Brogan-Coleman have been incorporated. Some changes,such as the default language,have not been changed because that is the standard language agreed on for leases and agreements. Brogan-Coleman said she questioned the paragraph concerning taxes. O'Neil stated that the property does not have any taxes due and is not taxed at this time. Williams also had a question concerning liens on the leasee's property. O'Neil said the intent of that language was to prevent the tenant from removing items from the City's property if they defaulted and owed money. Brogan-Coleman said that equipment that she is leasing should not be encumbered. Williams said this usually has to do with ownership,not leased or rental equipment. O'Neil suggested going through the agreement from the beginning to see if there was any disagreement on the terms. He said the term of the agreement is for two years,from June 2004 to May 2006. The only question was the possession date. Staley said the last discussion was about giving possession the on May 1 so she could start renovations and begin operations on June 1. The Commission agreed with that. Staley said he had a question about hours of operation. O'Neil said the hours of operation are taken from requirements in the Minimum Standards. The Standards say daily,which would be 7 days a week. Hartwig asked if Brogan-Coleman would be the only employee? She explained that she would invite other CFIs to join the flying club and she would certify that they met her standards of instruction. She would require a check ride with the students after a certain time to make sure that they are receiving good instruction. Brogan-Coleman said she understood the hours to mean 7 days a week. Staley asked about whom would pay utilities? O'Neil said that all utilities for the office would be paid by Brogan-Coleman. O'Neil said the Commission needed to go back to Paragraph 2 and decide on the rent. He said there was an original proposal,his recommendation and Brogan-Coleman's schedule that she presented at the beginning of the meeting. Krstenansky said the proposal they received today was $600 less for the term of the agreement than what O'Neil proposed. Brogan-Coleman said she based her proposal on the amount Jet Air was paying per square foot. Clay recommended accepting the rent in Attachment A that Brogan-Coleman proposed today. Clay asked about what would be done if the building were still available at the end of the two- year agreement? O'Neil recommended the Commission review this at the end of the first year. If the flight school is a growing and profitable business,the Commission and Brogan-Coleman will both have a strong interest in finding space at the Airport for the business to continue. O'Neil 2 said the key factor in determining when the building will have to be removed will be tied to FAA funding and the Runway 07 project. Robnett said that if the water line would cost too much to repair,Brogan-Coleman would not want to rent a building without water in it for two years. O'Neil said the break was in the parking lot and was not under Riverside Drive. He had an estimate of$ 550 to repair the line. Ron Duffe asked if the airplane wash rack could be turned on once the waterline is repaired? O'Neil said Brogan-Coleman is paying the water bill and it would be up to her if she wanted to pay for the wash rack water. O'Neil said he had a few items that need to be addressed. According to the Minimum Standards, an application will need to be filled out for the flight school. The requirements are in the standards. O'Neil said he discussed this with Brogan-Coleman yesterday. O'Neil stated he is still waiting for the review of the insurance from Hefting. If Brogan-Coleman wants space to tie down three aircraft, an agreement will have to be reached on the location and price. The last issue is the expansion of the landside parking. O'Neil said the only direction the parking lot can be expanded is to the south. It is a chip seal surface. He said the only clarification would be the right-of-way width for Riverside Drive. She would have to present a plan at a later date. O'Neil said the possession date should be discussed. Staley said the agreement could start May 1. Clay suggested the agreement start May 1 and the rent would start June 1. O'Neil said this leaves the tie down agreement and the hangar agreement. Williams asked if there was any standard fie down fee? O'Neil said the FBO does not charge a tie down fee but does charge$5.00 per night for tie down ropes. When there was a fee, it was about$25 to $30 per plane per month. Brogan-Coleman said she was going to start with three planes. Duffe said the only time Jet Air uses the ramp space south of the United hangar is when there are a large number of planes and the ramp area is full by the Terminal or someone with a large plane wants it parked away form the other aircraft. The Commission suggested Brogan-Coleman work with O'Neil to find three parking spots and they would wave the fee. O'Neil said the only issue remaining is renting part or the entire United hangar. O'Neil said Jet Air had asked about renting part or the entire hangar several months ago. O'Neil said that because of the uncertainty of when the hangar would be removed and because of the space itself,he was reluctant to lease it. Brogan-Coleman said she didn't know if it was legally valid to give them the first opportunity to lease the hangar. She said she checked the past minutes and couldn't find any proposal by Jet Air. Duffe said they did not submit a written proposal because the of the reasons given by O'Neil. Brogan-Coleman said she would be willing to remodel the hangar to make it more usable space. Hartwig said he did not think it was usable space based on experience he had with his own plane. He said it would have to be made clear that the Airport would not be liable for anything in the hangar. O'Neil said that when there were aircraft stored in the hangar, ICFS charged$70 per month for a single engine and$90 per month for a twin engine. Clay said both Jet Air and Brogan-Coleman should present proposals to the Commission and the Commission will select the best one. Duffe said Jet Air is definitely interested in all or part of the hangar. O'Neil asked Brogan-Coleman if she needed to settle the hangar space issue to complete 3 • the agreement? She said it does not have to be settled now,but it was important to make the flight school and commercial flying club work. Brogan-Coleman said she needed some of the hangar space and she would like it to have that as a separate lease. O'Neil asked if the only changes that needed to be made from the agreement he had sent to the Commission were the May 1 possession date and rent to start June I? The five hours daily operation was taken from the Minimum Standards. The Commission may review the Minimum Standards at a later date. The Attachment A rent schedule starts at$450 and ends at$900, in six-month segments. Brogan-Coleman said she could accept the default language. Williams said he wanted to make sure there was adequate insurance. Clay asked if they could agree to the agreement,contingent on a favorable review of the application by the City Attorney and Airport Manager? Robnett said she has been working a business plan for Brogan-Coleman. Clay made a motion for a resolution to approve the agreement with Brogan-Coleman, incorporating the changes discussed at the meeting and contingent on a favorable review of the Minimum Standards application by the Airport Manager and the City Attorney's office. Williams seconded the motion and at roll call vote,the motion was passed 5—0. Clay suggested the Commission accept bids for the hangar space from anyone on the Airport. Williams asked if Brogan-Coleman and Jet Air could work out an agreement to share the space? Duffe said he would meet with Brogan-Coleman and see if they could come to an agreement. Brogan-Coleman said she needed 50 feet of the hangar. The Commission directed O'Neil to work with Jet Air and Brogan-Coleman and bring an agreement to the next Commission meeting. O'Neil said if no agreement can be reach,he will have each party submit a proposal and the Commission can choose the best one. CHAIRPERSON'S REPORT: Tom Schnell has extended an invitation to see a demonstration of the simulator in hangar#35. The Commission said they were interested and asked O'Neil to schedule a time before the next meeting. O'Neil will contact Schnell and see if someone would be available to demonstrate the simulator at 4:30 p.m.on May 13`s. ADJOURNMENT: The meeting was adjourned at 12:58 p.m.jo Randy H. 'ig,Chairperson J 4