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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. we avpowc.rt &6-02 doc 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 wWrteae-W.ax