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HomeMy WebLinkAbout04.21.2003 (2)• • JOINT WATERLOO/CEDAR FALLS COUNCIL WORK SESSION April 21, 2003 4:00 p.m. Waterloo Council Chambers Members present: Mayor Rooff, Mayor Crews, Councilpersons Kincaid, Welper, Greenwood, Clark, Jordan, Hurley, Getty, Haugen, Hagarty, Pfalzgraf, Smith, Kolpek, Turner, Murphy. Also present: Cedar Falls staff, Waterloo staff, representatives from the Airport Task Force and Chambers of Commerce. Moved by Jordan, seconded by Clark that the Agenda, as proposed, be approved. Ayes: 13. Absent: Murphy. Motion carried. Mayor Rooff and Mayor Crews and Council Members met to discuss the creation of a Regional Aviation Authority and commitment to regional jets. Councilperson Murphy now present at 4:06 p.m. Jim Walsh, City Attorney, discussed a letter dated February 26, 2003 received by Waterloo from the Ahlers & Cooney Law Firm regarding formation of an Aviation Authority. The law film gave a summary of the actions required for the formation of an Aviation Authority, such as how to create the Authority, powers of the Authority, taxing authority, how to generate and use revenue, etc. Mr. Walsh suggested that the council use a disinterested party such as Ahlers Law Firm for legal opinions and creation of the legal documents for the Authority. Mr. Walsh stated that an Aviation Authority is new ground, but it would have the authority to set its own levy. Mayor Crews commented that both communities have already adopted resolutions of intent of how to establish an Authority and are pretty much in agreement that this is something that should be looked at for economic purposes and to spread the cost to operate the airport over all entities. Mayor Rooff stated that the communities will need to decide before 2005 if they are going to have an Authority. Mayor Rooff stated other cities will be included, but he wanted the two major cities to come up with an agreement. Mayor Crews commented that the Black Hawk County Solid Waste Commission is represented by all the surrounding communities and it has worked very well. Mayor Rooff stated that Waterloo currently is responsible for all funding for the airport. For FY04, the airport budget was removed from the General Fund and put in the Aviation Authority levy. Waterloo levied about five cents in the Aviation Authority for FY04. Mayor Rooff reported that the FAA will decide what the property can be used for. Mr. Walsh reported that the FAA will not allow the airport property to be deviated from any other than airport use. The FAA might let the city lease the airport, but all revenue will have to be kept in the airport budget. The City of Waterloo owns title to the property, but we are subject to approval by the FAA. Brad Hagen, Director of the Airport, stated that the airport has a Master Plan and CIP and will apply for a grant this year. Mr. Hagen reported that the Master Plan is less action oriented and mostly identifies capital. Carl Adrian, President of Cedar Valley Economic Development, reported that they show MidPort, explain the industrial park to potential developers and represent the airport property just like any other site. Mayor Rooff stated that final construction of the Airport Terminal will be completed next April and the renovation project is totally funded. We have a new jet service, but we need to make sure the future is just as bright. Waterloo/Cedar Falls Joint Work Session April 21, 2003 Page 2 Mr. Adrian stated that a change in governance will only enhance the airport. A lot of major cities have established air freight services at their airports. Councilperson Smith stated that the large haulers have driven up the price so smaller companies cannot compete and asked if there is a niche for our airport. Councilperson Hagarty reported he has been working with the Airport Board about air freights. Mayor Crews asked about the land on the south side of the airport. Mr. Walsh responded that the land is owned by Waterloo but has FAA restrictions. Any sale of property has to be put into the airport budget and the tax base is separate. Mayor Rooff reported that these properties are part of a TIF. Michelle Weidner, Chief Financial Officer, reported that $3.2 million is budgeted for the airport in FY03 and FY04 and the Passenger Facility Charge (PFC) helps with operation costs for the airport. Councilperson Kolpek asked if any study has been done that would tell us it would be feasible to establish a Regional Airport Authority. Councilperson Kolpek stated he cannot see any airline wanting to stop at seven or eight spots in the state. Mayor Rooff responded that if we don't do something we will probably lose Northwest or they will come back to us as an essential service. Pat Cole stated if the planes are full they will fly, and she believes we can fill up the planes out of Waterloo. Ms. Cole stated we have to keep the fares reasonable and have a good flight schedule. Ms. Cole stated she believes Northwest likes being the only jet service here. Ms. Cole commented we need to get jet service to Chicago. Councilperson Pfalzgraf commented what happens to economic development if we don't do something. Mr. Hagen stated that the city had a consultant do a study. Northwest has every interest to make this work. Mr. Hagen stated he feels great strides have been made to make the fares equitable. Discussion was heard on how Waterloo fares compare with other Iowa airports. Councilperson Hagarty asked if people have been calling to compare prices. Mayor Rooff responded that there have been considerable calls, and there have been meetings with Northwest. Northwest is convinced it is in their best interest to make jet service work. Mayor Crews suggested that the two liaisons from each council work with airport staff and Ahlers Law Firm and come back with a recommendation to this body. Mayor Rooff recommended including the Air Service Task Force and representatives from the Waterloo and Chambers of Commerce. Councilperson Smith suggested that this group analyze how the airport would do under the Authority and see what it would take to get by for one year under the Authority. Councilperson Smith suggested the group analyze what it costs to run the airport now and would it would cost to try to expand services. Councilperson Murphy stated it all predicates on revenues vs. expenses. Ms. Weidner reported that since 1999 the airport budget has run from $25,000 to $166,000 in the red. Mayor Rooff commented if we can get more passengers and larger aircraft, the PFC will increase to help offset costs. Councilperson Smith stated that more tenants would help. Mayor Rooff offered to supply copies of the airport budget, Air Service Agreement with Northwest and the letter from Ahlers Law Firm to Cedar Falls. It was the consensus of both councils to start with the smaller group with topics to include what the budget would be, what each community would be responsible for and create a bare outline to increase tenants and passenger use. • • Waterloo/Cedar Falls Joint Work Session April 21, 2003 Page 3 • • The next meeting will be held on June 17, 2003 at 3:30 p.m. at Cedar Falls. Mayor Rooff stated that other communities should be contacted to ask for their involvement. Mayor Rooff discussed the Jet Service provided by Northwest. Mayor Rooff reported that Waterloo signed a $1 million commitment with Northwest. John Deere agreed to fly out of Waterloo's airport more. Mayor Rooff stated that the City of Cedar Falls talked about a commitment of $100,000, and that should go hand in hand with our discussions of the Authority. Mayor Crews stated that the original discussion was that Cedar Falls should contribute $250,000. It was set proportionally by population. Mayor Crews commented if Cedar Falls is at the table, they should be paying their share. At the time of discussion of commitment of funds by Cedar Falls, they were not part of any discussions. Mayor Crews stated there has been discussion of some contribution by Cedar Falls, but no set amount. Mayor Rooff stated Waterloo believes strongly in the jet service as is shown by Waterloo's $1 million commitment. Mayor Rooff stated he wants all discussion to be very open, and if we can share expenses it will make it easier on all the citizens. Councilperson Pfalzgraf stated she would need more facts before she could commit to anything. Mayor Rooff stated he wants the City of Cedar Falls to be involved in decision making before they have to pay. Mayor Rooff stated he hopes in the future the two cities can have discussion on other joint ventures. With no further business before the councils, it was moved by Getty, seconded by Clark that the meeting be adjourned at 5:00 p.m. Ayes: 14. Motion carried. Nancy Eckert City Clerk