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03-C Airport Advisory BoardMINUTES OF THE REGULAR MEETING OF THE AIRPORT ADVISORY BOARD Tuesday, August 21, 2001 6:00 PM The Airport Advisory Board Meeting was called to order by the Chairman, Victor Abeles, at 6:00 P.M. The following members were present: Victor Abeles, Chairman James Ashmore, Recorder J. B. Richey Vic Ressler James Proctor The following members were absent: Mark Buster Paul Golden Also in attendance were: Tommy Haynes, Airport Director Jim Collier, Airport Manager Jerry Richey II. The Minutes of the July 17, 2001, meeting had been distributed to the directors with their agenda. A motion was made by Vic Ressler, seconded by J. B. Richey and unanimously approved to accept the minutes as presented. III. Council action on new "T" hangars Mr. Haynes explained to the board that the City Council had passed a resolution accepting the bid of George Spencer Construction to build a 10 unit "T" hangar for $156,766.00. This is approximately $1300 more than the low bid of the 7 unit "T" hangar three months ago. IV. Council vote on private hangars. Term length: The City Council accepted the Advisory Board's recommendation of hangars up to 5000 square feet for 25 year terms; 5000 to 20,000 Airport Advisory Board August 21,2001 Page 2 square feet for 30 year terms; over 20,000 square feet would be negotiable. Option: Council accepted the recommendation of the Advisory Board that there be no options in new lease agreements and the City would seek competitive bids for the next primary term of the hangar, and based on those bids, the tenant who had originally built the hangar and was then in the hangar would have the opportunity to exercise, within thirty (30) days, a right of first refusal. Should plans for hangars go through the City's typical building plan review process: Council accepted the Advisory Board's recommendation that all hangars go through the City's building plan review, including permits, fees and that standards specific to hangars be developed. Should special consideration be given in hangar leases which are used for business or economic development purposes in contrast to purely personal use? What should those considerations be? The city's a current lease does not prohibit living quarters per se, and some people live in the hangars. Should future leases allow this? Council accepted the recommendation of the Advisory Board that future leases prohibit tenants from living in the hangar or having full living quarters in the hangar. However, such items as a sink, bathroom, or associated facility to allow temporary over-night stay or perhaps social use of a portion of the hangar was recommended. The business or economic development of hangars was better left to incentives from the Paris Economic Development Corporation. Should there be a specific beginning and end date for construction of private hangar? The Council accepted the Advisory Board's recommendation that each lease require the construction of the hangar to be completed with Airport Advisory Board August 21,2001 Page 3 eighteen (18) months. Should the lease provide for ground lease payments? Ground lease payments or payments made for lease of the ground on which the improvement is located. Council accepted the Advisory Board's recommendation that a ground lease payment of $.12 per square foot per year, adjusted every five years with a Consumer Price Index Adjustment. Should the lease place the burden for taxes, if any taxes are due, on the hangar tenant? The Advisory Board made no recommendation on this matter. The City Council voted that taxes will be on the tenant should there be any. How much and what insurance should be required? The city's form lease requires $250,000 personal injury, $500,000 event, $100,000 property damage coverage in each policy. The question is whether or not more extensive insurance coverage, including fire and casualty insurance on the actual hangar should be an obligation of the tenant. The Board had recommended that the current requirement of general liability insurance be continued. However, the Advisory Board took the position that requiring fire or casualty insurance of the tenant to the benefit of the City as a co-insured, should not be a requirement of the lease. The board had further recommended that the City should be responsible for obtaining its own insurance for this particular purpose. The City Council voted that each tenant pay their own insurance on the hangar at replacement cost value so the City will be covered on Fire and Extended Coverage. Council vote on size of Airport Advisory Board. Mr. Haynes reported that the City Council voted to increase the size of the Airport Advisory Board from seven (7) to nine (9) members. This will not take place until a resolution is passed by City Council and that VI. VII. VIII Airport Advisory Board August 21,2001 Page 4 vote will probably be at the October, 2001, meeting. Council vote on new rental fees for "T" hangars. According to Mr. Haynes, the City Council voted to raise the rental fees of the city owned hangars according to the schedule shown below: Open Hangars Closed Hangars Smaller Closed Hangars Large Closed Hangars (7 units at Hangar C) $49.00 will increase to $55.00 per month $85.00 will increase to $110.00 per month $100.00 will increase to $110.00 per month $100.00 will increase to $150.00 per month These changes will not take place until a resolution is passed by the City Council and that will probably be at the October, 2001, meeting. Report from Jerry Richey on proposal for self-service pumps at Cox Field. Jerry Richey reported on the self-service pumps at Cox Field. He was unable to get a "turn key" bid for $12,500 from another source because of installation. Roddy McCarrell of Paris Pump submitted a bid of $21,150 for a "turn key" job. J.W. Ashmore moved the consideration of a self service pump be tabled. It was seconded by J. B. Richey and passed by a unanimous vote. There being no further business a motion was made by Vic Ressler and seconded by Victor Abeles to adjourn the meeting. The motion passed unanimously and the meeting adjourned at 6:35 P.M. J. W. Ashmore, Recorder