HomeMy WebLinkAbout07-01-2002 Airport Commission Meeting MinutesCity of Iowa City
MEMORANDUM 1P7
Date: July 11, 2002
To: Mayor and City Council
From: Marian K. Karr, City Clerk
Re: Council Work Session, July 1, 2002, 5:10 PM in Emma J. Harvat Hall
Council: Champion, Kanner, Lehman, O'Donnell, Pfab, Vanderhoef, Wilburn
Staff: Atkins, Helling, Dilkes, Karr, Dulek, Lewis, Sproule, O'Malley, Hennes,
Franklin, Fosse, Cate, Klingaman, O'Neil, Boothroy, Rocca, Mollenhauer,
Jensen
Tapes: 02-48, Side 2; 02-53, Both Sides; 02-56, Side 1 (A complete transcription is
available in the City Clerk's Office)
AFFIRMATION OF LONG TERM DEER MANAGEMENT PLAN (IPI of 6127 Info Packet)
Adm. Asst. Mollenhauer present for discussion. Council unanimously affirmed the existing
long term Plan as recommended by the Deer Task Force.
JOINT MEETING WITH AIRPORT COMMISSION (IP2, I133, & IP4 of 6/27 Info Packet)
Commission Members Anderson, Robneft, Mascari, Ellis and Airport Mgr. O'Neil
present for discussion. After discussion there was agreement to schedule another
joint meeting of the two bodies for August 19 to allow the Commission time to
research and provide a written response (by August 14) to issues raised in the
audit/review conducted by the City Finance Department.
STAFF ACTION: Provide written response from Airport Commission to Council in
August 15 packet; schedule item for August 19 work session. (Atkins)
ADDITIONS TO AGENDA
Council agreed to add to the 7/2 formal agenda the following items:
• Class C liquor license and a dancing permit to the agenda for Etre, LLC dba Etc., 118
S. Dubuque St.
• Setting public hearing on resolution of intent to approve lease agreement with Nextel
WIP for Capitol Street ramp space for antenna use
• Appointment of Council Member to Jail Space & Services Task Force
NEIGHBORHOOD HOUSING RELATIONS TASK FORCE RECOMMENDATIONS
(Agenda Item #3g(22))
Task Force Chair Hillary Sale reviewed the recommendations. Council requested the City
Mgr. the recommendations and provide comments on operational issues, and prepare and
schedule discussion of the ordinances.
City of Iowa City
MEMORANDUM
Date: June 20, 2002
To: City Council
From: City Manager
Re: Airport Review
Routinely during our budget process, revenue projections are prepared by departments
and reviewed by the Department of Finance. As a part of this review for FY03, it became
apparent that the income to the Airport would be significantly less than anticipated, not
only in FY03, but also in FY02. In the analysis of Airport revenue, it was noted that hangar
rental income, which was analyzed in more detail, was insufficient to cover the debt cost
for those hangars with existing debt. These concerns led to a more detailed analysis of
Airport revenues. The City Council directed a more comprehensive review of the general
Airport revenues and related operations. This task was assigned to the Department of
Finance.
The analysis performed was a simple review, not an operational audit. Extensive historical
review of financial documents was not performed. However, we believe sufficient
information has been gained to demonstrate clear concern for the extent of future airport
subsidies from the General Fund.
The rental income from the indebted hangars was found to be insufficient to amortize the
loan on each hangar. We believe the City Council's policy was clear, and that money
advanced through internal City loans to pay for the construction of hangars was to be
repaid from income from those hangars. This is not the case.
Finance staff reviewed the Airport Commission minutes from November 1999 through
January 2002. The focus of the review was to understand Airport lease revenues,
contractual agreements, and other decisions on the part of the Airport Commission. Also
reviewed, where they exist, were Airport lease agreements.
During the review other concerns arose, such as lack of leases and certificates of
insurance, capital improvements being made in exchange for rent, the process of billing
and collection of hangar rents, and the use of hangars for non -aviation purposes.
One of the early tasks was to prepare a fixed asset list. As a part of the process of
assembling asset information, a tour of Airport hangars was conducted by Finance staff.
Additionally, a financial comparison of the new fixed base operator agreement (FBO) and
the old agreement was prepared.
Observations during the tour and the compilation of the fixed asset list would appear to
indicate that hangars are being used for non -aviation purposes, contrary to the intent of
the Airport Commission. While the City Council has not documented any formal policy, I
would expect the non -aviation uses would be contrary to your interests. Certain buildings
and hangars have had construction activity performed without building permits. This was
confirmed upon a review of Department of Housing and Inspection Services building
permit records. Whether these construction activities would have required a permit is
unknown; however, a review of the completed work by our building inspectors should now
occur.
Airport Review
June 20, 2002
Page 2
It was clear from the Finance staff analysis, that not only will some of the hangars provide
insufficient revenue to finance their debt, but projections also would indicate the new FBO
lease, when compared to the old lease, will earn substantially less income for the Airport.
These circumstances exacerbate the need for General Fund subsidies of Airport
operations.
Many of the findings are of an administrative nature and should receive immediate
attention. Others are of a long-term financial nature, and appear to indicate a problem of
expanding Airport General Fund subsidies into the future.
The following represents a list of issues associated with the Airport finances and
operations as well as recommendations.
Leases/Certificates of Insurance
Findings:
♦ There are currently no formal leases describing terms and conditions for hangar usage
for the 26 out of 30 hangar units presently rented in buildings A, B and C. Building J
has 10 hangar units which are rented and leases could not be found. Hangar #33 in
building G does not have a current lease.
♦ The leases which were available require the lessee provide a certificate of insurance.
Certificates of insurance do not exist, within City records, from any of the Airport's
current tenants — including the FBO. General liability coverage of
$1,000,000/occurrence, with the City listed as additional insured is required in the
existing leases of all tenants within 30 days of signing their lease. The absence of
such coverage, particularly on the part of the FBO, increases the City's general liability
exposure.
♦ Based on the workbenches and tools frequently seen in individual units when viewing
airport hangars, it appears a number of tenants perform their own repairs and
maintenance. As noted above, certificates of insurance have not been received. The
storage of flammables, use of power tools and possibility of bodily injury to the tenant,
friends or family make this a concern.
Recommendations:
Signed leases should be obtained for all rented airport properties. Signed lease
agreements are needed to define the rights and responsibilities of both the tenant and the
Airport management. Leases define rental amounts, lease terms, insurance requirements,
restrictions on use of the rental property and other such matters. Completed and signed
leases should be kept on file and available for inspection. A standard lease format should
be developed and used for all similarly leased properties. A renewal requirement for
leases should occur on a regular basis.
Certificates of insurance should be obtained from all tenants.
Airport Review
June 20, 2002
Page 3
Aviation Uses of Hangar Space
Findings:
Available lease language specifies hangar space should be used for the storage of aircraft
and should be kept clean and free of debris. Airport Commission minutes also reveal the
commission's intent of leasing these units 'for aviation purposes only'. Practices contrary
to aircraft storage and aviation use were noted when viewing airport hangars.
♦ Hangar #60 in building K may be being used to store the tenant's business iriventory.
This hangar contained numerous wooden spools with what appears to be electrical
wiring material, conduit and shelves full of small parts. Per the Airport Manager, this
person has sold their plane, has a new plane on order, and did not want to give up
their hangar in the interim.
♦ Hangar #61 in Building K contained various machines. There were two floor polishers,
three free weight machines, three Nordic tracks, what appeared to be a drill press, a
washer and dryer, and three motorcycles, among other things. The Airport Manager
noted they had requested proof this individual was going to be building a plane and
that the individual had placed an order for a plane. In commission minutes from April
5, 2001, it was noted that hangar #61 had equipment storage and there was no
airplane. At that time two notices had already been sent asking for confirmation of
intent to build an aircraft. The Commission directed the lease to be terminated. It
appears that the lessee is still renting this unit.
Hangar #38 in building I contained used office equipment including old computers,
office desks and chairs. Other items included a flat bed trailer, mowers, boxes and
cabinets. The Airport Manager noted this tenant had sold a plane and has purchased
a new plane which had not yet arrived.
A review by hangar is shown in Attachment A. Items seen included: classic cars,
trailers, motorcycles, snow plow blades, mower tractors, boats, bikes, furniture,
luggage and the items noted above. Smaller items were refrigerators, microwaves,
grills, television sets, chairs, desks and computers.
♦ The Airport Manager did not readily have access to the keys for all of the hangar units.
Recommendations:
Annual hangar inspections should be conducted with the intent of enforcing aviation
use of leased property, safety, and lease term/condition compliance.
A master key for the hangar units should be available to Airport staff.
The usage noted above represents use of hangar space for non -aviation purposes
and could be construed as competition with the private sector in providing commercial
storage space, possibly at less than fair market value. The question remains - to what
extent should storage of other items be allowed, assuming aircraft exist in each
hangar?
Airport Review
June 20, 2002
Page 4
Building/Construction in Hangars
Findings:
Minor capital improvements have been made to a few hangars, by either current or
prior tenants. It appears three units had lessee improvements installed in airport
hangars without building or electrical permits. Hangar #27 in building C has an
enclosed office area with a window built in the rear of the hangar. The United hangar
had a small plywood room built in the northwest corner of the building. The sponsor of
the 'fly -in' built this to store supplies for the annual 'fly -in', per the Airport Manager.
Hangar #44 in building I has additional fluorescent lighting wired from the electric box
on the north side of the building. There are no records in Building and Inspection
Services of permits or inspections relating to these activities.
Recommendations:
Management needs to ensure that permits are obtained and inspections conducted for
capital improvements. The proper permits — building, electrical, plumbing, etc. should be
obtained before modifications are made. When capital improvements are made,
notification should be sent to both Finance and Risk Management for insurance and
financial purposes.
Indebted Hangars Revenue Shortfall
The rental income from the indebted hangars was found to be insufficient to cover the cost
of the loan repayment on each hangar. The table below shows the estimated shortfall by
hangar.
Note that the loan repayment for building K is budgeted at $1,729.50/month in FY03. This
will increase to $2,104.00/month in FY04, further increasing the revenue shortage.
Note: The current FBO leases buildings E and F. The lease amount is not allocated
between the two buildings. The revenue shown is the rental income for both the corporate
hangar - building F and the airport terminal - building E.
FY03 Estimated
FY03 Loan
FY03
Hangar/Building
Revenues
Payments
(Shortage)
Southeast T -Hangar
15,960.00
24,688.80
(8,728.80)
Building I
South T -Hangar
16,320.00
23,348.57
(7,028.57)
Building J
Southwest T -Hangar
17,160.00
20,754.00
(3,594.00)
Building K
Totals
49,440.00
68,791.37
(19,351.37)
Note that the loan repayment for building K is budgeted at $1,729.50/month in FY03. This
will increase to $2,104.00/month in FY04, further increasing the revenue shortage.
Note: The current FBO leases buildings E and F. The lease amount is not allocated
between the two buildings. The revenue shown is the rental income for both the corporate
hangar - building F and the airport terminal - building E.
FY03 Est.
FY03
FY03
Hangar/BuildingHangar/Building
Revenues
Loan Payments
(Shortage)
Corporate Hangar
15,000.00
56,238.00
(41,238.00)
Building F (& Building
E — Terminal)
Airport Review
June 20, 2002
Page 5
The following assumptions were used in estimating the revenues in FY03:
1. The monthly rental fee will remain unchanged through 6/30/03.
2. 100% rental occupancy.
3. The rent revenues from the units in these buildings are not being used to cover any
costs other than the hangar loan payments. If a portion of these revenues will be used
to cover other expenses, the loan payment shortage will be even greater than that
computed.
4. - Tenants will make their payments in a timely fashion.
Recommendations:
To meet the loan repayments, hangar rents need to be increased on the units in these
buildings. (FY03 loan repayment divided by the number of rented units = Annual lease
amount per unit).
FBO Revenue Shortfall
A contributing factor to the airport revenue shortfall is the result of recent changes in the
FBO lease agreement. A five-year agreement was signed with Jet Air with an effective
date of January 1, 2002. A graduated rate structure was agreed upon for leasing buildings
E & F during the first two years of operation. This rate structure causes the greatest
shortfall during fiscal years 2002 through 2004. When the lease amount levels out in
January 2004, revenue concerns become most apparent. At the maximum rate, there is a
substantial decrease in FBO-related revenue when compared with the prior FBO lease
with Iowa City Flying Service.
Beginning in December 2000, the former FBO (Iowa City Flying Service) failed to make its
monthly lease and contract payments in the amount of $9,326 per month. In February
2001, the Commission took action to remove Iowa City Flying Service as the FBO and to
locate a new FBO. Because of the immediate need for FBO services at the airport, the
Commission contracted with a temporary FBO until the agreement with Jet Air that was
effective January 1, 2002. The Commission advertised nationally for a new FBO, but only
two companies responded to the Request for Qualifications, the temporary FBO and Jet
Air. Jet Air offered to pay the Commission more to be the new FBO than did the temporary
FBO. No request was made to the City to re -amortize the debt for Building F in light of the
substantial decrease in FBO revenue.
FBO-related revenue for FY03 is projected at $15,000. A comparison of revenues
between the old and new FBOs reveals an estimated loss of $44,760 in FY03 due to
differences in revenues generated from leased properties.
Building/Property Listing
An Iowa City Airport building/property listing has been attached which outlines the monthly
lease amount for each of the hangar units. This listing also shows insurance replacement
cost, a physical description of the building, and indicates the status of each unit's lease.
Debt Service Fund Expenditures
In addition to the General Fund subsidies, the City subsidizes the Airport Fund through the
Debt Service Fund. The property taxes designated for payments required for FY03 are
$175,859.
Airport Review
June 20, 2002
Page 6
Airport Projects within General Obligation Debt
Bond Issue
Airport Project Name
Total Airport
GO Debt
Service FY03
Total Airport
GO Debt
Service FY04
Total Airport
GO Debt
Service FY05
2001
Master Plan
5,953
5,889
5,848
2001
Fuel Tanks
32,563
32,216
31,993
2000
Terminal Improv.
53,012
60,836
60,885
2000
Master plan
1,301
1,493
1,494
2000
Hangar "D" rehab
4,120
4,728
4,731
1999
Master plan
27,199
26,526
25,854
1998
Master Plan
17,1901
16,678
16,161
1997
Master Plan
34,521
33,222
33,222
Total
$175,859
$181,588
$180,188
Summary Recommendations:
• To strengthen internal control, hangar rentals should be submitted to Accounting for
monthly accounts receivable billing. (Prepaid rent will need to be taken into
consideration.) Payments should be submitted to Treasury or mailed to the City lock
box as noted on the monthly statements.
• Requests from tenants to pay for capital improvements in lieu of rent should be
submitted in writing for formal consideration by the commission. Multiple bids should
be obtained for the work to be performed and copies of all receipts should be provided
prior to reimbursement by the commission. Generally Accepted Accounting Principles
require both rent revenue and expenditures to be recorded.
• Examine utility usage and monitor month-to-month variances. Review and adjust
building rent in relation to utility usage.
• The Airport Manager needs to contact the ITS Division to find a permanent solution to
delays in receiving e-mail communications.
• Conduct annual hangar inspections to enforce aviation use of leased property.
• Ensure that permits are obtained and inspections conducted for any capital project
improvements on airport property. If capital projects are approved, notification must be
sent to both Finance and Risk Management for insurance and financial purposes.
Notify tenants of insurance requirements and receive the proper insurance certificate.
These findings should receive immediate attention. This will be a task for the Airport
Commission and staff. I encourage the Council to create some type of oversight process
or policy to be assured that all due diligence is undertaken in correcting these
circumstances. As far as future financing, it appears the City can expect further subsidies
for Airport operations. The extent of the subsidies is a question of policy discussion for the
City Council.
Airport Review
June 20, 2002
Page 7
I specifically directed during the review that the Aviation Commerce Park not be part of
this review. We currently have a joint agreement between the City Council and the Airport
Commission. Due to this partnership, I believe the Airport Commission and City Council
may wish to redefine their respective roles in assuring compliance with the agreement, as
well as the general direction of the Aviation Commerce Park. The desire is now to
consider sale of the properties and therefore a new agreement will need to be undertaken.
MgrUnem/ai rportanalysis.doc
Iowa City Airport
Building I Property Listing
=Replaces
FY,
2., Monthly
n In
Monthly
5
k—
a menti !C jD A)bsdip# rBuilding irunjt
bbbf
La Repay
FY03`
Signe
Cerf
n,
Bui d qFa'T M4't, n orm- t I0
–
Fe
asof12101'
,'Shdrfallx
A Northeast T -Hangar
1960 173,780 9,572 fe Steel frame & roof with metal siding and
partitions on girts, electricity. Dirt -surrounded concrete
NO
-*'1'100100
-
NO
NO
pads in each hangar.
Al Raney
gravel put in around pad.
A2 Sponcil / Douglas Systems
NI
Inc.
A3 Douglas Systems, Inc.
NI
Al Schnell
NI
AS Honeck / Innovative Dist
end unit/ NI
19fl 00
Sys
A6 Marengo
end unit I NI
A7 Bullers
NI
A8 Haffner
NI
A6 Demaria
NI
A10 RCG Corp - Field
end unit, gravel
"416 00
-
8 North Central T -Hangar
1970 $ 191,356 9,648 ft2 Wood frame, steel roof with metal siding and
partitions on girts, electricity. Dirt -surrounded concrete
NO
NO
NO
pads in each hangar.
B1:1 Bulgerell / Iowa Eye
gravel
f
Prosthetics
1
B1i2 Calta / Air America
NI
W
-120,!DO'
13113 EMPTY
NI
B 14 Shanklin
NI
120.06
13115 Engler
NI
-1207004
B116 Holly
All concrete floor
420-00,
1]11I7 Yeager
NI
1-20:00-,
B118 EMPTY
NI
2-0-00-
120.00:'
13119 Yeager
131!9
NI
120,00'
B20 Airport Equip Storage
NI
Page 1 of 5
Iowa City Airport
Building / Property Listing
Page 2 of 5
FYO 3 21E
:s
Repl�,
M6 n ih I y-
Monthly
m4hi-,; -Physical Description of BuildingSigned; :/ U
D
y,�Lban, Repay
'Rent
FYtl3
rf
Tenant Informatio
Bu d' inq n
(NI
Built Cost No Improvements)
Se
_as,ofl2lb 14�
of 1�
'In
C Northwest T -Hangar
1976 $ 204,715 9,948 ft2 Steel frame & roof with metal siding and
11200.00,
partitions on girts, electricity. Dirt -surrounded concrete
NO
NO
NO
pads in each hangar.
C21 Hora
All concrete
12D 00;
C22 Tratchel
NI
C23 EMPTY
NI
C24 Guerra
NI
C25 Zimmerman Fancy Inc
Concrete extended, insulation in poor condition
120M01
C26 Peterson
NI, insulation in poor condition
12000'
C27 Hall
Enclosed office area wl window added in rear of
hangar.
C28 Zimmerman DDZ ASSOC
NI
120-00=
C29 Moen
NI
-1' 00,
C30 Mascad / Arena Auto Body
end unit, all concrete, numerous light fixtures
D Old Maintenance Shop
1950 $ 322,801 8250 ft2 Concrete block, load support framing on
%= 509.094
(IOW Aero Club)
concrete slab, steel roof, concrete block or wood stud
partitions in office area. This is a corporate -style
YES
hangar w/ large maintenance area, separate but
NO
THRU
NO
attached office & bathroom facilities. Windows
05/04
replaced/repaired 04102. All new paint 04/02. 2002
Improvements made by tenant with request to board for
improvements to be accepted in lieu of rent.
-,Terminal Building
1952 $ 884,071 5385e One & two-story w/ partial! basement. BricKon
-,.(FB,O: Jet Air, Inc)
masonry exterior, floor is concrete slab/deck on steel.
Air, heat plumbing. Power vault�wl concrete
partitions is, 357ft2. Reception area, offices, rest area',
u
flight planning,room, separate bathrooM adlities,
-,_-(NONE)
3000.00
kitchenede,]oungbi upstairs conferendb1dom %w-
for bldgs
(1,686.50)
"YES
NO
kitchenette. Tdtalbdilding renovated, including
E and F
installation of elevator & other ADA improvs, in 2000.
�-F 'FB0 Corporate Hangar
11999 $ 701,618 `Corporate style hangar w/ office area, bathrc)om,
4,696.50
�'_--`(FBO:, Jet Air, Inc),
Storage, maintenance area and tooll6quipment". room..
YES -
Page 2 of 5
s ws
Iowa City Airport
Building / Property Listing
Page 3 of 5
,a�.r
ro
WB61000
erifPh srcalgDesryptiop of Builant.ln�o'rira
x
G Business Admin &
1981 $ 249,756 5600 fe Steel frame & roof, metal siding on concrete
1 424,51)_;
Maintenance Bldg
slab. Wood stud partitions, electricity, heat & plumbingNO
y ` " ,'M
SEE
for restroom facilities. 48' doors, floor plan varies greatly
:t '
BELOW
NO
between units.
G31 Interwest Equities / Harry
T Hangar w/ adjacent office & bathroom facilities. Air
Hinckley
conditioning, considerable electrical usage: air
YES
conditioning, two computers, refrigerator, microwave,
THRU
key cutting maching, lighting improvs.
02/03
G32 IC Aircraft Repair
End unit w/ front/back access (E & W) to bay area for
x F 450 00`
4
YES
airplane maintenance/repairs. In-house mechanics -
= r
THRU
electrical usage.
xa
09/03
G13 Great Plains Aero Inc. !
T Hangar w/ adjacent office & bathroom facilities,
<ir34425:
EXPIRE
Ruyle
security system. Refrigerator, air conditioning.
r# `3
D
(previously AM Aviation)
':
02101
G34 Don Gumett
` 286;00;
THRU
02/03
� Airport Manager's Office
Office area w/ bathroom facilities.
s
„��._::..._s,,
N/A
H(35) Corporate Hangar
1986 $ 265,530 7610 ft Steel frame & roof, metal siding w/ concrete
g1 250 OOm
(Gordon Aircraft Inc.
slab floor. Wood stud partitions, 50' door, electic, heat,YES
AM Mgmt sublet
plumbing. Floor redone 4/02 (paint), floor to ceiling
THRU
NO
UI Flight Simulator)
storage shelves, adjacent 10,000 gal ground fuel tank.
09106
City storage on north end.
ISoutheast T -Hangar
1998 $ 341,537 10,710 it. Concrete slab floor, 42' doors
YES
2,057 42
(727.42)
EXPIRED
NO
136 Butler
end unit : rent s/b 160
r 130A0„
Expired
1317 Butler
NI
i 130:00=
leases
13,8 Winder I Winder Trucking
NI
1300D;#
1319 Hartwig / Skymaster
NI
:- 130,DD
exiistfor
_
140 Allender
NI
-:i 7300pa
A month to
month
1411 Tearse
NOTAVAILABLE
s130`Ob„
Provision
14 BushaW / Gordon Aircraft
NI
130 00_
does exist
143 Ruyle
NI
i'. 130 OD,
in the
144 Zimmerman / DDZ Assoc
Significant electrical usage could be a concern here.
130 D03
lease,
Eight flourescent tube light fixtures with two lights/fixture
however,
appear to have been hard -wired into the electrical box
ti=
along with
where it enters the unit. Socket exchange on ceiling
a30 -day
fixtures.
notice
145 Full
end unit
160Y)0,'
provision
for rate
•
:x
-Y - �- ,
increases.
Page 3 of 5
sum��
Iowa City Airport
Building / Property Listing
v -4P
w��`'��;,�,,
�
�
ment„� Physrca�De�scnpi�tono�BurldnglU�rrt k
.Debt ,.t
L3anCR.epay
;Reef
i"� FYtl3 �,Stgnetl°,�Ceft=
x ' ° � _t *� a*
Bullt w CostF x'( Iw�No 1 rot%_ments f" ,(
Servacet
� �. "FY.03 �
as of 12/_01 K
`Shortfall."
Lease'"" l
DT Eris?
_
J South Central T -Hangar
1995 $ 285,557 10,710 fe. Concrete slab floor, 42' doors
YES
1,945.75
-1;3160.W,
(585.75)
?
NO
J46 Schmieser/ Big Sky
end unit, NI
160P0¢`
J47 Stearman / Red Sky Inc
NI
x 130,
J48 Ruyle
NI
>5�0
J49 Evers / Campbell
NI
t 13¢Dtl,
Copies of
J50 Zimmerman
NI
130D0-
these
J61 Thornberry
NI°a
130Q
leases
J52 Miller
NI
?: �3000v
have been
J53 Fishbaugh
NI
; M3000
requested
but
J54 Pattschull / la Ave Apts
NI
u4 1307 Da
not
received.
J55 City Carton / Ockenfels
end unit, NI
Transfer
K Southwest T -Hangar
2000 $ 312,671 Est. 10,710 flz. Concrete slab floor. Rate structure on
1,729 50
1,430 0W
(299.50)
building K was based on varying size of individual
`? '
hangars/doors. End units are extra. Nine units vs 10 in
YES
i
YES
NO
hangars a,b,c, I &
K56 Kennedy
50' door, end unit
r1_; _`< 250!0
K57 Lacina
45' door, lighting improvs
; ,' 155`00'
K58 Bushaw / NE IA Physcial
45' door, lighting improvs
155 00
Therapy
Aj _
K59 Bushaw / NE IA Physcial
42' door NI
?,13500
Therapy
x
K60 Knebel
42' door, NI. This tenant reportedly has a new plane
135D0µ.
on order. Unit is currently being used to store a large
amount of business-related electrical supplies.
•=
K61 Goodwin
48 or 46' door. Concern re: electrical usage - tenant is
r z 180 007
using for repair shop or storage: 3 motorcycles, washer
& dryer, 2 floor polishers, bench press, 3 nordic treks,
t _µ
drill press, etc. A receipt was required by the
commission to prove tenant's intent of building a plane.
There did nota ear to be a body arts for an
PP Y or any P
3 f,a
airplane in the hangar at the time it was viewed.
K62 Rezabek / Skybolt
42' door, NI
h. ee yt
_ 135Dt1'
K63 Fishbough
42' door, electrical usage in question - BTU heater
present.
z =;
K64 Anderson
42' door, end unit, space heater present.
h"
Page 4 of 5
sommmos
IowaCity Airport
Building / Property Listing
Monthly totals (FY03): 10,479.17 13,794.5U (3,'199.1!)
x 12 months 12 12 12
Total for FY03: 125,030.00 165,534.00 (39,590.00)
Page 5 of 5
,ns. FY03 Est Ky ',
x
n
�,
to
00 .,
a Repla¢ez
,::
Monthly
Monthly.
menf Physical Descnphon`of Budding /Unit
Debt ;S
, Loan'Repay
Rent,
FY03
Stgned ti
Cert;
Buildings&'Tenanf
s
Information
Built Cost• • (NI, `No Improvements). -- _ :
Service:'
(FY03)
as:of 12101•
Shortfall• =
Lease
Of Ins?
- United Hangar
1948 $ 328,428 9600 f? Steel -frame construction with metal siding &
'variable r
(to be demolished)
retractable hangar doors on both north & south sides of
the building. Asphalt shingle tar & gravel roof. East
end is brick on masonry structure w/ wood stud
NO
NO
NO
partitions. Office area w/ 5+ offices, reception area,
"a
bathroom & storage areas. Provides storage for City
_
snowplows & other misc. equipment, office area is
vacant.
Monthly totals (FY03): 10,479.17 13,794.5U (3,'199.1!)
x 12 months 12 12 12
Total for FY03: 125,030.00 165,534.00 (39,590.00)
Page 5 of 5
Job duties:
AIRPORT MANAGER
1. Schedules and monitors subordinate staff
2. Staff support for Airport Commission, Zoning Commission, & Zoning Bd. of Adjustment
3. Prepares grant applications and supervises funding and projects
4. Manages leased property
5. Maintains airport property and schedules maintenance
6. Receives and replies to complaints, inquiries and comments from the public
7. Monitors off -airport construction for compliance with zoning
8. Maintains airport records and licenses
9. Plans, organizes and develops daily activities and programs
10. Develops and coordinates on-going and long range planning
11. Coordination and cooperation with other City departments
12. Represent the airport at IDOT and FAA meetings
AIRPORT COMMISSION:
1. Establish general administrative airport policy
2. Supervise airport manager
3. Prepare annual budget for the City Council
4. Negotiate and approve airport leases
5. Approve long range planning
6. Develop and implement airport business plan
7. Provide recommendations for airport zoning
8. Provide direct communication with City Council on airport issues
9. Conduct regularly scheduled meetings to keep the public informed of airport issues
10. Approve grant applications and grant offer
CITY OF IOWA CITY, IOWA -- Job Description
JUNE 1992 JD No. 46101
Identification
Position Title: Airport Manager
Department: Airport
Immediate Supervisor: Airport Commission
Job Summary
Directs all operations and activities of the Iowa City Municipal Airport.
Job Scope
Directly supervises 1 employee at the Airport. Prepares and administers the annual budget.
Monitors expenditures during the year and makes recommendations for budget modifications
or additional funds.
Essential Job Duties and Responsibilities
SCHEDULES, MONITORS and EVALUATES the work of subordinate staff.
PROVIDES staff support for the Airport Commission, Airport Zoning Commissin and Airport Zoning
Board of Adjustment. SCHEDULES meeting, POSTS notices, PREPARES agendas and ACTS
as liaison to the boards and commissions.
PREPARES grant applications and SUPERVISES all funding and projects.
MANAGES the airport leased property.
MAINTAINS airport property and MAKES daily inspections. REPORTS concerns and SCHEDULES
maintenance.
RECEIVES and ANSWERS complaints, inquiries and comments from the public.
MONITORS off -airport construction for compliance with zoning and regulations.
MAINTAINS appropriate records and licenses in order to remain in compliance with local, state
and federal codes and regulations.
PLANS, ORGANIZES and DEVELOPS daily activities and programs.
DEVELOPS and COORDINATES on going planning and evaluation of airport services including
writing, updating and administering of the long range plan.
OTHER related duties as assigned.
CITY OF IOWA CITY, IOWA -- Job Description -- Page 2
Airport Manager JD No. 46101
Physical and Environmental Conditions
Ability to move about an office or building. Employee will bend, lift and crawl in order to inspect
airport property. May be exposed to potentially hazardous fumes and chemicals at the
airport.
Minimum Education, Experience and Certification
High school diploma or equivalent plus training in construction or public administration equivalent
to two years of college plus one to three years of experience in aviation and building and
grounds maintenance.
Knowledge, Skills, and Abilities
Knowledge of maintenance equipment and ability to read and understand technical materials,
reports and journals. Ability to develop and present mathematical budget information. Skill
to effectively communicate, both orally and in writing, to citizens, employees and appropriate
agencies.
Signature/Approval
Employee
Supervisor
Date
Date
Department Director Date
The above statements are intended to describe the general nature and level of work being
performed by individuals assigned to this job. They are not intended to be an exhaustive list of all
responsibilities, duties, and skills required of personnel so classified in this position.
Draft #3
August 2, 2002
10 MII r,TI 1 II
To: City Council
From: Airport Commission
Date: August 9, 2002
Re: Financial analysis - Memo dated June 20, 2002
The Commission has carefully reviewed the analysis of the Airport reported to the Council in a
memo dated June 20, 2002. The report was a general overview of several things the Commission
has been addressing over the last several months. It was encouraging to note that many of the
points of interest in the analysis are issues the Commission is nearing completion on. As a
volunteer board, it is good to know that other City staff has come to the same conclusion as the
Commission as far as what issues should be addressed.
Clarification is needed on several issues. Either a lack of knowledge or information about the
Airport operations may have lead to some assumptions that could be somewhat misleading to the
Council. The Airport is like other City departments in many ways, but because of the direct
relationship with the Iowa Department of Transportation, the Federal Aviation Administration
and a large number of private tenants, some of the operations are more difficult to understand
than with other City departments. That is one of the reasons the Commission is here to assist you.
The Commission would like to address the recommendations as stated on page 6 of the brae 20
memo to Council.
1. Hangar rents submitted to Accounting. As the system works now, the Airport Manager mails
out invoices on a monthly basis. When rent is received, the Airport Manager documents the
receipt and submits it to Accounting for deposit. The Airport does not have a separate bank
account. The money is credited to the Airport account through Accounting and is managed
by the Finance Department.
Conclusion: The Commission believes it is important for the Airport Manager to know the
status of the hangar rents on an ongoing basis. It would save the Manager several hours of
work per month if Accounting did the billing and received the money, but the Commission
would not have first hand knowledge of who is current on the rent. Accounting could
generate a rent report on a monthly basis, but another report would increase their workload.
Because many City departments charge back to the Airport for services, this would increase
the Airport's budget. The Commission would have to pay additional money for what the
Airport Manager now does.
2. Capital improvements in lieu of rent. There was only one example of this happening in the
analysis conducted by the Finance Department. The project was to install a new power line
for the runway approach lights for Runway 25. The line was cut when Ruppert Road was
constructed. In that instance, three proposals were received for the project. One of our
tenant's businesses had submitted the lowest proposal and did not suggest trading rent for
labor until after being awarded the project. It was not a factor in awarding the project.
Conclusion: The Commission agrees with the analysis that if labor in lieu of rent is allowed,
it should be based on competitive bidding and should be documented. In order to avoid any
misperceptions, the Commission would not exchange labor for rent in the future.
3. Utility usage. Except for the Terminal Building, the tenants pay their own utilities in the
buildings that are individually metered. In the t -hangars, it would be cost prohibitive to
meter 64 individual hangars. The Commission has discussed metering the hangars
individually each time a new t -hangar was built. The construction costs and monthly meter
fee would not have made this a good business decision.
Conclusion: The month to month variances in the larger buildings and hangars are paid for
directly by the tenants. It was not deemed practical to meter each t -hangar. That could be
revisited if usage and/or costs increase dramatically. The Commission is discussing the
possibility of adding a uniform per month electricity fee for the t hangars.
4. Airport Manager's e-mail. At this time, the e-mail service to the airport manager's office is
not always dependable. It occasionally takes several days to receive some e-mail.
Conclusion: The Airport Manager has discussed this with ITS several times. There is a
glitch in the system somewhere. ITS plans to install new communication lines to connect all
City departments. This would likely resolve the problem. The Airport Manager's computer is
also scheduled to be replaced, although ITS has checked the computer a couple of times and it
does not appear to be a hardware problem. The Airport Manager has informed ITS that if
they are going to back charge all enterprise funds for the new line service, the Airport will
have to wait until next year's budget. There is no money budgeted to install new lines to the
Airport.
5. Conduct annual inspections. The hangars are usually inspected twice a year for maintenance
items. The new t -hangar leases will state that there will be at least annual inspections to
ensure lease compliance.
Conclusion: The Commission agrees there should be at least annual inspections to ensure
safety. As long as the tenant is using the hangar for aviation purposes, and the storage of
other personal property does not violate any safety standards, the Commission does not object
to other personal property being stored in the hangars. Several tenants complained that the
June 20 memo made public and published a list of their personal items. For security reasons,
they did not believe it was in their interest or the Airport's interest to publish a list of hangar
contents. It was not essential for completing the task of providing the Council with a
financial review of the Airport.
6. Tenant insurance requirements. There were not current insurance certificates on file for
several hangars.
Conclusion: The majority of insurance certificates not readily available were from tenants
of the t -hangars. This would be buildings A, B, C, I, J, & K. Until the Commission took
over direct control of the hangars from the FBO last year, there were never any leases for the
hangars in Buildings A, B, and C. The insurance in question is for the tenants premise
liability. The Airport is covered by a separate liability policy, in addition to the City s general
policy. The Commission has developed a new lease for all the t -hangars. It was reviewed at
the July Commission meeting. There will be time for public comment at the August meeting,
and if there are no major revisions after public comment, it will be voted on in August. The
leases will be sent out in late August or early September and will begin on October 1. A
certificate of insurance will be required to be attached as part of the lease.
The Commission realizes there are difficult budget times anticipated over the next several years.
In a way, the Airport's budget mirrors the overall City budget. As there are changes in funding
sources, the budget needs to be adjusted. Unfortunately for the City and the Airport, some
funding sources have decreased, at least on a temporary basis. In the case of the Airport, the
catastrophic terrorist actions of last September have bankrupt many fixed based operators and
have had a very negative impact on general aviation airports like Iowa City. Iowa City is
fortunate to have an FBO to provide aviation services. The Airport will likely feel the effects of
Iowa City Flying Service's default on their lease of Building F for several years.
Unlike many other City departments, the Airport's main focus is providing a facility, not services.
The operations budget has remained steady for the last several years. The Commission does not
have the flexibility to increase or decrease services to help balance the budget. The budget is
designed to provide a safe facility to meet the needs of business and other general aviation
travelers. As is obvious, it is not as much the expenditure side of the budget that has caused the
recent problems. It is the income side of the budget. The Commission is working with the
Council to remedy that issue.
Conclusion:
The Commission is a group of volunteers that understands the commitment they have agreed to
when appointed by the Council. This is not only an advisory board, like many of the other boards
and commissions appointed by the Council. It is a Commission with the responsibility of setting
policy and overseeing Airport operations. Although the Commission is scheduled to meet only
once a month, many additional hours a month are required to understand and act on the issues
needed to provide a safe and useful facility. Commission members understand that role and take
their appointment seriously. They are not isolated from the rest of City government. The
Commission relies on the Airport Manager as a direct link to the other City staff. He attends
weekly City staff meetings. The City Attorney's office reviews all legal documents and an
attorney is present at Commission meetings. The City Manager and department directors know
they can contact the Airport Manager directly when information is needed or coordination is
required with other City departments. Occasional assistance is needed and requested from other
City staff.
An annual review by the Finance Department could be beneficial. This is done to some extent
when the Finance Director and City Manager review the budget with the Airport Manager in
November or December every year. The Commission would be open to suggestions on how to
better utilize the expertise of the Finance Department in reviewing and formulating the budget for
each upcoming year. The Commission appreciates the time and effort involved in the Finance
Department's review and will continue to commit the time and expertise needed to formulate and
administer Airport policy