2011-05-17 Council Airport Committee MinutesCity Council Airport Committee
Tuesday, May 17, 2011
Meeting Minutes
After determining that a quorum was present, the City Council Airport Conullittee of the City of
Denton, Texas, convened in a regular meeting, on Tuesday, May 17, 2011, at 1:00 p.m. in the
City Hall Conference Room at City Hall, 215 E. McKinney Street, Denton, Texas.
PRESENT: Council Member Jim Engelbrecht, Mayor Pro Tem Pete Kamp, and
Cotmcil Member Cluis Watts.
STAFF PRESENT: George Campbell, City Mallager; Bryan Langley, Chief Financial
Officer; Quentin Hix, Airport Manager; and Theresa Jaworski,
Recording Secretary.
OTHERS PRESENT: Don Sinith, Chairman of the Airpor-t Advisory Board.
The meeting was called to order at 1;11 p.m.
Item 1: Consider approval of minutes from the meeting held on May 3, 2011.
Mayor Pro Tem, Pete I�ainp motioned to approve the minutes followed by a second by Colulcil
Member Chris Watts. The motion carried unanimously.
Item 2: Receive reports by citizens and other interested persons.
With no reports by citizens and other interested persons, Council Meinber EngelUrecht directed
the coinmittee's attention to the next itein.
Item 3: Receive a report, hold a discussion and provide a recommendation to City Council
regardiug a proposed lease extension of 120 d�ys for the First Financial Resources, Inc.,
property located �t 910 Aeronca at Denton Airport.
Airpoi-t Manager, Quentin HiX shared the background of the initial lease with Fi�st Finaslcial that
was first approved in September 1987. This extension is the third proposed extension aild will
extend the priinary tei�n of the lease by au additional 120 days to expire October 13, 2011.
The lease had a primary terin of twenty-three (23) years with three (3) consecutive options to
renew for a five (5) year period. The priinary term expired on September 15, 2010.
Hix explained that this is the first enforcement of the assumption clause at Denton Airport where
the initial lease term has expired and over the next ten (10) years, there will be three ground
leases that will reach the elld of the primary lease term and each have a similar reversion clause.
City Staff is currently reviewing the tei-ms for assumption of property improvements under
similar provisions in Airport property leases.
The consulting firm of SAMI Management, Inc., has been engaged to study the reversion clause
used in Denton Airport Ground leases and to offer options with a benefit analysis of each. The
col�sultant's report will be reviewed by Staff and presented to the City Council Airport
Coimnittee in June 2011. In order to allow time for this process, staff recoimnends approval of a
third amendment extension for the 120 days of the primary ten11 fol the lease.
Cotulcil Meinber Engelbrecht asked for questions and coinments from the coimnittee.
Following a short discussion confirming the benefits of the additional extensioil tiine for both
parties, Mayor Pro Tenz Pete I�amp moved that the committee recommend to Council the
extension for 120 days of the primary term for the First Financial Resources, Inc., with a second
fiom Council Member Watts.
Motioil carried iinanimously.
Item 4: Under Section 551.042 of the Texas Open Meetings Act, respond to inquiries from
the Airport Committee of the Denton City Council or the public with specifc factual
information or recit�tion of policy, or �ccept a propos�►1 to place the m�tter on the agenda
for an upcoming meeting.
AND
Undei• Section 551.0415 of the Texas Open Meetings Act, provide reports about items of
community interest i�egarding which no action will be taken, to include: expressions of
thanlcs, cougratul�tions, or condolence; information regarding holid�y schedules; an
honoraiy or salutary recognition of a public of�cial, public employee, or other citizen; a
reminder �bout au upcoming event organized or sponsored by the governing body;
information regarding a social, ceremonial, or community event organized oi- sponsored by
nn entity other than the governing body th�t w�s attended or is scheduled to be attended by
a member of the governing body or an offici�l or employee of the municipality; or �►n
announcement involving �n imminent threat to the public health and s�fety of people in the
muuicipality that has arisen after the posting of the agenda.
Couiicil Member Watts asked, siuce the Airport Comtnittee's charge involves contracts which
affect revenue, could staff provide the Airport's financial statements or ieports that show income
and expenses on a regular basis?
Bryau Langley, Chief Financial Officer, offered that the infoi7nation is �ow inchided in the
Quarterly Fivailcial Reports. The Airport's fina�icial infoimation is liow ili that report with a
dashboard and a Schedule of Revenue and Expenditures but Langley offered additional
infoi�nation, at cominittee's request.
Colulcil Member Watts stated that the information included in the Qiiarterly Financial Report
would be sufficient.
George Campbell, City Mailager, joined the meetitlg at 1:15 p.m.
With no more business, the committee meeting adjoui�ed at 1:17 p.m.
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CITY OF DENTON, TX
THERESA JAWORSKI �'
RECORDING SECRETARY