Thursday, February 25, 2010
Airport give-away a "crash and burn" deal for citizens of Peru.
In the long sordid history of sweet-heart deals in Peru, the unveiling Wednesday night of the "Airport Operations Agreement" has to rate as one of the sweetest. Alderman Mikyska has used his influence and position as airport committee chairman to essentially give away the Illinois Valley Regional Airport to Chuck Studer and Midwest Av-Tech. No strings attached and no real benefit to the city. Chuck Studer and Brian Hartman have put a lot of time and effort into this little scam. Back-slapping and ass-kissing has always been the shortest distance to easy money for connected insiders in Peru and this deal is no different. Here are the facts. Peru gives Midwest Av-Tech complete control of airport operations, including corporate hangar rent. But actually the only thing Studer is really interested in is the "very profitable" fuel concession. In order to sell the deal to the council Alderman Mikyska did a stellar job of "Cherry-Picking" the fuel sale numbers for us. He provided limited 2009 and 2010 totals which are not even close to historic averages due to recent construction at the airport and limited air traffic during that period. Mikyska stated the profit per gallon as only 32 to 36 cents. That was designed to show us fools in the audience that "poor" Chuck would only make a tiny profit from fuel sales and we should be grateful to him for taking this burden from us. In reality, the fuel sale numbers for 2003 thru 2008 show a very different profit picture. Those numbers show an average total gallons sold of right around 100,000 gallons per year. In addition, total profit per gallon, (which has previously been split between the city and Midwest Av-Tech) was about $1.00 per gallon. Sometimes a bit more. That is profit after costs and taxes of around $100,000 per year.
Alderman Mikyska's logic is that we will save money as a result of lower insurance premiums, no city employee on site and Chuck will absorb the cleaning person who is about to retire anyway. Total savings said to be approximately $36,000. Midwest Av-Tech takes the corporate hangar rent of about $5,000 per year and Peru will continue to collect the T-Hangar rent at about $50,000 per year. Thanks Chuck.
Here's how I see it. With a profitable fuel concession and steady hangar rent why should we give it away? I understand we will have operating costs and the need for an employee up there. But I see a neglected revenue source here. Why are our elected officials so inclined to give away the management of so many of our taxpayer owned assets. By doing so they are sending the worst possible signal to the citizens of Peru. The message is clear. We have no idea how to manage our own resources. They see the airport as a liability, not an asset. This is not as Chuck Studer said Wednesday, "a good deal for the city". This is a good deal for Chuck Studer and Midwest Av-Tech. I understand very well how businesses lobby and entertain elected officials in an effort to advance their own interests. I can accept that Chuck Studer and Brian Hartman have invested a great deal in order to cultivate personal relationships with aldermen and I know the reality of why they attend council meetings. That's just politics. What is so upsetting for me is that so many of our elected officials make such easy prey for these guys. This agreement could be approved by the council as soon as Monday. At some point in the near future I see vigorous hand shaking, lots of back slapping and numerous "atta boys" from Chuck and Brian to those aldermen who have made it all possible. SWEEEEEEEET!
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6 comments:
THIS JUST PROVES OUR ALDERMEN ARE NOT UP ON EVERYDAY THINGS. JUST LIKE THE GEN-SETS. THEY LOVE TO LOSE MONEY FOR THE CITY. THEN HARL WILL GET BLAMED.
I THINK MAYOR BAKER IS PUTTING IN TO MUCH INPUT, WHEN HAVEING DONUTS AND COFFEE, WITH A LOCAL GROCERY, LIQOUR, STORE OWNER.
This can't possibly be true - CAN IT? Would our aldermen be so gullible to buy this story from AVTEC and give away our airport? I remember quite well at the mayoral debate at the library that both candidates Baker and Potthoff stated that the airport was a very profitable asset to the city. Surely alderman Potthoff would put a stop to this! And, who is Brian Hartman and what does he have to do with the airport?
To anonymous 1:31 pm. Brian Hartman is an employee of Midwest Av-Tech. In addition, he has been on the city payroll for a number of years now at about $6,400 a year. For what you ask? Well, although he works for Chuck at the airport he is also paid by the city as a "Contractor" performing Fuel Quality Control and Light check. I'm not joking. That means he replaces bulbs at the airport and performs a very simple "Bucket Test" periodically for the presence of condensation (water) in the fuel storage tanks. He was a Baker supporter, as was Chuck, and campaign worker,(he was on the Baker campaign sign detail in 2005 and 2009)and he remains close to a few current aldermen, as does Chuck. That explains why he remains on the payroll. This a text-book example of the political patronage that Don Baker stated does not exist in Peru. The real point is this, of course we have people on staff in the Electric Dept. that can change light bulbs at the airport. Of course we have people on staff in the Public Works Dept. that can perform fuel quality control. It's not rocket science or rocket fuel. Why do we continue to pay this guy. That's why it's such a ridiculous waste of tax dollars and one of many reasons why the airport fund has always been in the red.
To add insult to injury, while Chuck Studer has been collecting 100% of all fuel sale profits for months now the city of Peru has continued to pay Brian Hartman for this "Fuel Quality Control". Now is that a good deal for the city?
This is absolutely ridiculous and unacceptable. How can our aldermen sit on their podium and feel confident that they are doing what is best for the city of Peru instead of what is best for themselves and their cohorts? We have got to do something and soon or they will destroy Peru.
Make comments tonight at the meeting, Aldermen wake up, Ask for the publics input. Please listen to them for once. You have made a number of mistakes lately. Please Please take some advice from the public.
I thought it might be a good idea to make a plea regarding the management of the airport at the beginning of the meeting (before they vote). But, I've looked at the agenda for tonight's council meeting and I do not see a heading for "PUBLIC COMMENT".
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