HomeMy WebLinkAbout08-06-2002 Airport Commission Meeting Minutesr
MINUTES
IOWA CITY AIRPORT COMMISSION
TUESDAY, AUGUST 6.2002 — 5:45 P.M.
IOWA CITY AIRPORT TERMINAL
MEMBERS PRESENT: Rick Mascari, Michelle Robnett, Mark Anderson, Alan Ellis
STAFF PRESENT: Sue Dulek
CALL TO ORDER:
Chairperson Anderson called the meeting to order at 5:47 p.m.
PUBLIC DISCUSSION ITEMS NOT ON THE AGENDA:
None.
ITEMS FOR DISCUSSIONIACTION.,
a. Finance Department Audit Report
Anderson stated that this discussion is in response to the City Council - Airport Commission
joint meeting that occurred in July, as well as the one that is scheduled for August 19.
Anderson said he would like to discuss certain issues in order to respond to Steve Atkins'
report to the City Council. The first item would be hangar rent Anderson said that he had no
problem if the rent was paid directly to the Accounting Department That would save Ron
O'Neil time, but it would also mean that he would not have immediate knowledge of who
paid the rent and who did not.
The next item was capital improvements in lieu of Rent. Anderson said that only happened
once.
Anderson then discussed utilities. He said that if the T -hangars were individually metered,
then the tenant should pay the cost. However, it is cost -prohibitive to meter all the individual
T hangar tenants, and that only the corporate hangars are individually metered now.
Anderson then discussed annual inspections. He said that the new hangar lease will provide
at least annual inspections for safety and lease compliance.
Anderson next discussed insurance. He said that the revised T -hangar lease that will be
effective October 1 will provide insurance coverage consistent with the City's requirements.
He said that a certificate of insurance would have to be attached to the lease. He added that
most old leases did not have a requirement that a certificate of insurance be provided.
Mascad then asked whether the response should stress what has occurred in the past, or
what the Commission is planning to do in the future. Anderson said both issues should be
addressed. Ellis stated that the core issues are why should the City increase its funding from
the General Fund to the Commission at a time when other entities are being decreased in
funding, such as social services and the new Fire Department, and what should the
oversight be. Ellis stated that the City Council is looking for a response to that question and
that is what the response should entail. Anderson stated that was a good suggestion, but
that he believed that that response can be part of the specific response to the specific points
made in Atkins' memo. Mascari suggested that the Airport Manager should appear at
monthly meetings of the City Council. Ellis stated that it should be a Commission member,
and not the Airport Manager. Robnett stated that the Airport Manager could go to those
meetings. Mascari agreed and stated that the Airport Manager could provide a monthly
update to the Council. Ellis disagreed and stated that the Commissioners were appointed by
the City Council, and so it is the Commissioners that should go to the City Council meeting
for an update. Ellis pointed out that the Airport Manager attends the City Manager's staff
meetings. Ellis again stated that the Commission should answer why the City should fund
the airport, and he said that the Commission needs to show that the money is being handled
well and why it is being handled well. Robnett stated that it is a matter of accurate financial
data. Mascad stated that the Commissioners should receive a monthly financial report from
the Airport Manager. Ellis stated that a line -by-line response does not respond to the big
question—again, why should the monies be increased to the Commission and what can be
done to be certain that the money is spent appropriately. Anderson stated the answer to the
first question is a decrease In revenue. Ellis stated he agreed that it was due to the loss of
the FBO and that the Commission had to actually pay for a temporary FBO. This led to a
decrease in revenue. Iowa City Flying Service had an agreement to pay a certain amount of
revenue so the hangars would pay for themselves. Ellis stated that there is no solution to the
lost revenue, given the FBO situation, in the short tern. In the long term, the money will be
paid back to the City. In the meantime, the Commission has the options to increase fuel
flowage, to increase rent hangar space, to increase business at the airport, and so on. Ellis
added that there is no malfeasance. Robnett stated that this is another reason for a strategic
plan to develop a long-term plan. She said that her role when she got on the Commission
was to make policy for the future. Anderson said that the response should begin with why
money should be increased to support a City infrastructure, which is what the Airport is part
of. He said that the City had previously as a matter of policy decided it wanted an airport;
that is the decision of the City, and not a policy decision made by the Commission. Mascari
stated that it is not a service but a facility, and maintaining a facility costs money. Anderson
st ted that the discission should include why the revenues went down, with an explanation
o?the FBO situation, and how Building F can be paid back. Anderson added that there is no
clear-cut solution. The City could forgive part of the debt The North Commercial Area sale is
a short-term solution. A long-term solution would be a long-term lease, but people do not
seem to be wanting to enter into long-term leases. Ellis added another part of the solution is
marketing in the long-term, but that also costs money. Ellis also added that facilities and
capital goods need upkeep, such as streets, and this is just part of the cost to the City.
Robnett added that facilities and services that the City has wanted to provide includes the
Airport. Mascari stated that everyone knew that it was to be a 20 -year payback, that Iowa
City Flying Service backed out, and that is the predicament that they find themselves in. The
Commission could not get a replacement FOO to commit to the same amount of payment.
Mascari added that the Commission needs to respond to the concerns expressed by the
Council, especially the monetary concerns, and make clear that there was not an increase in
expenditures but a decrease in revenue, and why that occurred. Robnett said the response
should be simple and straightforward, and Ellis agreed, but he said that the Commission still
needs to deal with the essence of the concerns.
N
Anderson directed Mascari to write up the response and incorporate and blend in the
Commissioners' suggestions and concerns.
b. Airport Manager/Commission — Duties and Responsibilities
Anderson asked the Commissioners what they were going to do with the Airport Manager.
Anderson said the question is whether the Airport Manager is a manager of the Airport or a
seller of services. Ellis said those two are not mutually exclusive, and Robnett and Mascari
agreed. Ellis distributed a draft of a job description of an airport manager. He got the draft
from looking at text books and an AAAE publication. He said that the airport manager has
three functions: a management function, an administrative function, and a marketing
function. These functions exist at every airport, but differ depending on the size of the
airport. Ellis said the last time the Commission looked at this was in 1988, and since 1988
the role of an airport manager has changed. In 1988 it was a relatively new career, and it
has increased to where there is now accreditation and college classes. The issue was then
deferred because of the absence of Ron O'Neil at the meeting.
c. Executive Session — Personnel
This matter was deferred due to the absence of Ron O'Neil at the meeting.
ADJOURNMENT:
The meeting was adjourned at 7:20 p.m.
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IOWA CITY MUNICIPAL AIRPORT
1801 South Riverside Drive Iowa City, Iowa 52246
Office Phone (319) 356-5045
IOWA CITY AIRPORT COMMISSION
AIRPORT TERMINAL BUILDING
1801 S. RIVERSIDE DRIVE
TUESDAY, AUGUST 69 2002 - 6.45 P.M.
I. Determine Quorum
II. Items for Discussion/Action:
a. Finance Department Audit Report
b. Airport Manager/Commission - Duties & Responsibilities
III. Executive Session - Personnel
IV. Adjournment
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