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Minutes Airport 10 24 05 DUBUQUE REGIONAL AIRPORT COMMISSION MEETING Monday, October 24, 2005 4:00 p.m. Dubuque Regional Airport Dubuque Jet Center Conference Room PRESENT: Teri Goodman, Mike Santillo, Doug Brotherton, and Steve Accinelli. ABSENT: None. STAFF: Andrew Perry, Gordy Vetsch, Peggy Dickson and Todd Dalsing GUESTS: Dan Nicholson (City Council), Mike Dymterko (Coffman Assoc), Dave Heiar (City of Dubuque) Rick Dickinson and Kimberly Ahrens (GDDC) 01. APPROVAL OF MINUTES Steve Accinelli moved to approve the minutes of August 1, 2005 Commission meeting. Doug Brothertoni seconded the motion. AYES: All. NAYS: None. OLD BUSINESS: 01. REVIEW OF AIRPORT STATISTICS Andy asked if anyone had any questions regarding the statistics. Steve Accinelli noted the hangars had a 90% occupancy since 8 of the old wooden t's had been torn down. There was a correction noted to the FBO statistics. There was a remark that Jet fuel was down compared to last year, but 2004 was election year with all the campaign traffic. 02. CIP BUDGET FY07 The CIP budget meeting with the City Manager was discussed. After some dialogue, the Commission asked that a meeting be set up between Mike Van Milligen, Teri Goodmann and Steve Accinelli. Andy was directed to provide the information to the City Manager regarding the process for the release of airport property to City control for the area the occupied by the Naval Reserve. Steve Accinelli asked for a maintenance schedule to be established for all airport buildings. Andy said this information was being put into the GIS system by the Operations Staff but progress has been slow with staff limitations. There was some discussion about an ongoing project each year that deals with the maintenance of all airport buildings. Document in 1 1706 Agenda.doc Airport Commission Minutes October 24, 2005 Meeting Page 2 NEW BUSINESS: 01. ADDENDUM FAA AIRWAY FACILTIY SECTOR LEASE The FAA has downsized its employees in Dubuque to one person. Their current lease expired on September 30, 2005 and they have requested a six month extension to develop a proposal to remodel the space over the winter months reducing the square footage to one person. Staff will negotiate a new lease with a reduction in square footage. Steve Accinelli moved to approve a six month extension. The motion was seconded by Doug Brotherton. AYES: All. NAYS: None. 02. HERTZ APPROVAL OF LEASE ASSIGNMENT Hertz Corporation, owned by Ford Motor Company, has been sold and a change of ownership assignment has been requested. Tim O'Brien has reviewed and approved the lease assignment. Steve Accinelli moved to approve the assignment to CCMG Holding, Inc. This motion was seconded by Doug Brotherton. AYES: All. NAYS: None. 03. SET 2007 PARKING PERMIT RATES The Commission was asked if they wished to increase the cost of the long-term parking permits for 2007. After a brief discussion the Commission took no action leaving the 2006 parking rates in place. 04. MODIFY THE FY06 EQUIPMENT BUDGET (GROUND SUPPORT EQUPMENT) The Commission reviewed the scenario that was discussed with the City Manager to help defray airline revenue losses through the purchase of ground equipment that could be utilized by multiple carriers. A new de-ice vehicle was approved by the City Council which the FAA will fund @ 95% of the cost. Teri Goodmann said she wanted to thank the Council for supporting the Airport Commission's efforts to retain and enhance air service during these hard economic times in the airline industry. Steve Accinelli moved to request Council approve the acquisition ground equipment and fund it by postponing the Jet A truck that was budgeted in FY06. This motion was seconded by Doug Brotherton. AYES: All. NAYS: None. 05. FY 07 OPERATING AND MAINTENACEIIMPROVEMENT BUDGET: Document in 117 06 Agenda.doc Page 2 Printed: 1/13/06 at 8:26 AM Airport Commission Minutes October 24, 2005 Meeting Page 3 The Commission received the proposed budget, Andy Perry advised the Commission that some minor modifications would probably still be made. Some items called out were; Supplies and Services have increased 35.57% mainly due the aviation and other fuel costs. Capital outlay has increased 7.69% and debt service has decreased. There are some decreased revenues with FAA, TSA downsizing and the demolition of 8 wood t-hangars. There is a 29.6% FBO revenue increase mainly due to the higher cost of fuel, and a 2% decrease in parking based on 05 actual. The Commission agreed to send the operating and maintenance budget to the City. The Commission discussed an improvement level for the position of marketing manager. Throughout the business forums a fundamental need for a more consistent marketing strategy. This stems from a lack of personnel resources. The Commission asked about the cost outside of salary, Andy told the Commission that it would cost about $4,000 to set up computer, desk other items. The Commission unanimously approved the request for this position. The Commission then discussed the reclassification of the stenographer position that Peggy Dickson holds. When she retires in the FY07 budget this classification no longer exists. Her role now consists over overseeing various programs: Passenger Facility Charges, Disadvantages Business Enterprise and Airport Improvement Program, and budget related areas. The Commission supported the change based on work done and asked that it not wait until the FY07 budget goes into effect. Steve Accinelli moved the Commission's support of the reclassification and the position is to be reviewed and reclassified and directed Andy to get with Human Resources and move that process along. This motion was seconded by Doug Brotherton. AYES: All. NAYS: None. The Commission also discussed other areas such as obstruction mitigation with cutting some trees in violation of Part 77. Also discussed were several items related to operational equipment or building changes. The Commission said that the consensus was to send the improvement level budget be turned into City Hall. 06. AIRPORT MANAGER'S REPORT: &... Set Strateqic Session Dates: The Manager was looking for some common dates to reschedule the strategic session dates with Sid Scott. The Commission set November 15 and December 15, 2005. Document in 1 1706 Agenda.doc Page 3 Printed: 1/13/06 at 8:26 AM Airport Commission Minutes October 24, 2005 Meeting Page 4 B. Marketinq Update 1-888 Number An idea from the marketing group was a number business travelers use when airfares discrepancies are found. This phone will be in American Eagle's office who will respond in four hours to find the lowest possible price from Dubuque. This will be installed in November. Marketing money will be used keeping more business travel in Dubuque with competitive pricing. C. Construction Update The Commission was told the SRE building was well underway as they could observe across the road. The box hangars are moving along, and the self fueler will arrive somewhat later than anticipated. A set of the old wood t-hangars are being demolished in conjunction with the construction of the new box hangars. D. Set Commission Meetinq Dates With holidays falling in both the November and December regular meetings the Commission discussed various dates they could reschedule that met all calendars. It was finally decided that the Nov/December meetings would be combined and be held on December 15, 2005. E. De-Ice Vehicle: Specifications for the vehicle have been submitted to the FAA for review, upon approval they will be ready to start the bidding process, possibly at the next meeting. 07. CORRESPONDENCE: There was no discussion on the correspondence. 08. PUBLIC INPUT None. 09. COFFMAN INDUSTRIAL PARK PRESENTATION Mike Dymetrko spoke about multitude of airports in the Midwest with business parks on the airport. Most commercial airports have some type of commercial land use. He explained that land not needed for aviation is used to boost the bottom line. Airports would be derelict to do nothing when they have a possible source of Document in 1 17 06 Agenda.doc Page 4 Printed: 1/13/06 at 8:26 AM Airport Commission Minutes October 24, 2005 Meeting Page 5 revenue. Businesses that locate on airports normally have nothing to do with aviation. Land lease rates vary depending upon the infrastructure available. With no infrastructure you can look at 4 ~ on up. Major access such as rail and improved property could run from 12 to 20~. The benefit to potential business to use a land lease rather than purchase property is that they have the ability to reduce up front costs. Some problems associated with the land lease is the reversion clauses in these leases make the banks nervous. However, long-term leases typically reassure the banks. Dave Heiar talked about competition for tenants. Mike Dymetrko said that any tenants in Dubuque would not likely be looking for the same thing. The Airport did not have enough land for a large business and had little infrastructure in place and buildings that have to revert to the airport in time. Rick Dickinson said he had little concern about the same tenant base but his concern was the visible area and design of buildings. Teri Goodmann told him she had seen the design and the Commission approved the buildings. Andy said the airport had some covenants in development and the Commission has approval on the building design. There will be plantings around the buildings as construction and weather permits. Rick Dickinson said IIW had looked at a cost estimate to bring out utilities and it would take a major anchor to support this construction. Mike Dymetrko said the airport did not have that amount of land available at this time. Some suggestions were that information on the Airport Business Park be placed on the airport web page and to post the rates. Doug Brotherton moved to adjourn the meeting. This motion was seconded by Mike Santillo. AYES: All. NAYS: None. Meeting adjourned at 6:18 p.m. Document in 1 1706 Agenda.doc Page 5 Printed: 1/13/06 at 8:26 AM