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Meeting Minutes for:
Monthly Board Meeting
Yuma International Airport, Conference Room
Tuesday, August 11, 2009 at 04:00 PM
Call to Order:
CALL TO ORDER
The Yuma County Airport Authority, Inc. (YCAA) Regular Board of the Board of Directors was called to order at 4:00 PM on Aug 11, 2009 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Karl Moedl, President.
YCAA MEMBERS PRESENT WERE:
Karl Moedl President
Ron Rice1st Vice President
William Gresser Treasurer
Albert Gardner Secretary
Harry Hengl, Director
Robert McLendon, Director (attended electronically)
James Carruthers, Director (attended electronically)
Brian Cullen, Director
Jeanine Rhea, Director
Ed Whitehead, Director
Michael Taylor, Director
ALSO PRESENT WERE:
Mr. Williams, Airport Director
Gerald Hinkle, Jr., Chief Financial Officer
Gen Grosse, Corporate Account Manager
Gladys Wiggins, Airport Operations Director
Lynn Hall, Director of Maintenance
Andrea Lopez, Executive Assistant
Maria Gonzales, Customer Service Representative
Craig Blomdahl, Operations Supervisor
Wayne Benesch, Airport Counsel
Joe Gamez, CareFlight
Julie Engle, GYEDC
Dale Borgman, AOPA – EAA 590
Ken Scott, EAA
Ken Rosevear, Yuma County Chamber of Commerce
Gill Garza, Garza Aviation
APPROVAL OF MINUTES
The President called for a motion to approve the minutes of the Previous Board Meeting. Mr. Gresser so moved. Mr. Cullen seconded the motion. Motion passed unanimously.
Ken Rosevear presented the Board of Directors the Yuma County Chamber of Commerce Member of The Month Plaque.
COMMITTEE REPORTS
1. The Strategy Committee will provide a report on their meeting on August 6, 2010 with regard to progress on the Taxiway Y project and to solicit discussion and possible action to authorize the Airport Director to allocate such funds as necessary, up to a maximum of $100,000, to comply with unexpected administrative requirements from the Naval Facilities Command for their consideration of the YCAA's offer to begin construction of Phase 1 of a parallel taxiway for Runway 21R/3L.
Mr. Williams briefed that the YCAA Strategy Committee met on August 6, 2009 to discuss the Taxiway Project and the unexpected requirement by the military to accomplish several expensive and unnecessary administrative tasks before giving their "approval" for an "easement" that has not been requested and is also unnecessary.
To provide some background on the situation Mr. Williams explained that a critical aspect of the YCAA's offer to build the Taxiway is the funding cycle of the FAA's grant program. Specifically the timing for our grants is fixed and cannot be deviated from; i.e. when grant funding becomes available, we have to accept it; and once accepted, construction has to start. Because of this, the construction for Taxiway Y "must" start on or about April 1, 2010. We have no ability to "bank" grant awards to use at a later date.
Initially MCAS agreed that they would handle any administrative tasks for military channels while YCAA completed similar tasks for the FAA and would also handle the actual construction contingent upon federal funding. Unfortunately, we have discovered that an inescapable bureaucratic process within DOD is, in fact, going to impose certain requirements on YCAA that MCAS, though willing, cannot complete in our place.
Mr. McShane informed the committee that Col Werth continued to provide his full support for this project through all levels of his chain of command. He also discussed the extensive work of the MCAS staff in working this issue with Headquarters Marine Corps (HQMC) and the Naval Facilities Command (NAVFAC). He emphasized that these requirements were solely administrative in nature and urged the committee not to read any "hidden" meaning into the letter from the Community Plans and Liaison office. Mr. Williams echoed Mr. McShane's comments.
The problem however, are not the tasks themselves. The problem is that time required to complete the tasks first and then obtain DOD approval could make our mandatory construction start date of April 1, 2010 unreachable. After some back and forth coordination a meeting was arranged to resolve some of the questions.
Mr. Williams and Mr. Moedl attended a meeting with Ms. Patricia Weeks of MCAS Community Plans and Liaison and Mr. Christopher Haskett from the Naval Facilities Command (NAVFAC) on Monday, August 10, at 11:30am to discuss the details of the new requirements and to obtain their agreement that the tasks would not interrupt the planned construction start date.
Early in the meeting it became clear that both MCAS and NAVFAC held some basic misunderstandings about the Yuma County Airport Authority. Both thought the airport was simply a division of the County. Mr. Williams provided a brief overview on the history of the Airport, the 1956 Patent, the County, the creation of the Airport Authority in 1964, and the legal status of the Airport Authority under Arizona Statutes.
We also discovered that Mr. Haskett was not aware that YCAA was building the taxiway in response to a request by the Marine Corps. He was also not aware that we did not require an easement and had specfically not requested one. Mr. Moedl provided an in-depth review of the safety situation that the Airport was trying to address and explained that the NAVFAC requirements imposed an enormous administrative and financial burden on the Airport that the military had promised to handle. After much discussion it became clear that NAVFAC had no idea how to handle such a unique situation and so they were just going to fall back to something they could understand, which is to pigeon-hole us into the standard requirement to follow existing easement request guidelines.
Beyond that point Mr. Williams and Mr. Moedl could make no headway. However, if we accepted the extraordinary burden of NAVFAC's easement process, the military representatives were eager to make this work. The bottom line is that they understand our funding and construction restrictions and they outlined exactly what is required to obtain the necessary approvals to meet our deadline.
Basically, if YCAA provides MCAS with the first round of materials they require for an "easement request," (which consists of the property's legal description, an approximate start date and details of each phase of construction, the length of time the easement is needed, documentation as to who will maintain and operate the taxiway, and an Environmental Baseline Study) by the middle of September, they will be able to give us a "Go" or "No Go" by the middle of October. That "Go", which they called "a determination", gives us complete authorization to start construction when we get our funding next spring. Assuming we get a "Go," which both Mr. Haskett and Ms. Weeks felt was "highly probable," the Airport would then contract for an Environmental Assessment (EA) which they say is required under their rules (as opposed to a CatEx under FAA and NEPA guidelines). The military completely understands that the EA will not be completed for about a year. Once completed, it would be sent up the chain from MCAS to NAVFAC, and then about nine to eighteen months after that, we would receive our final easement, along with an invoice for their trouble, which they promised to cap at $25,000. Bottom line, even though the environmental work will not be complete and the easement review will not be complete, they WILL give us authorization to start construction on our schedule.
The downside is the costs on our side will exceed $100,000 based on our current estimates from Nicklaus Engineering (NEI).
Mr. Williams told the Board of Directors that he had received confirmation from the military earlier in the afternoon on exactly what was required. The requirements and their expected maximum costs include:
$25,000 for the Phase 1 (called an Environmental Baseline Study by DOD)
$5,000 for the Legal Description
$5,000 for the Metes and Bounds Survey
$25,000 for the NAVFAC expenses for the preparation and legal review of the easement
$56,000 for the Environmental Assessment
Mr. Moedl made the point that in good faith the Airport Authority should continue to press forward. We have made a commitment to build the taxiway and should not withdraw at the first obstacle.
After much discussion it was agreed to move forward and authorize the expenses according to the timing plan presented by Mr. Williams and to wait for the "GO" determination by NAVFAC in October.
Regular Agenda
1) Monthly report by Chief Financial Officer on current financial status and recent activities
Mr. Williams briefed that Overall, revenues and expenses for are within acceptable parameters as compared to our budget.
2) Discussion and Possible Action to authorize the YCAA President to sign a Lot Tie request to the City of Yuma to tie Parcel 25 and 26 of the Triple S sub-division to Parcel A, as described in Exhibit A of the Airport's lease with Yuma County, for the purpose of allowing DBRT YUMA FBO, LLC, i.e. "Lux Air" to commence the construction of their proposed General Aviation Terminal, as required by their lease with YCAA signed August, 5, 2008, which terminal will occupy portions of all three parcels, contingent upon final review by Airport Staff and Airport Counsel.
Mr. Williams briefed that the proposed Lux Air General Aviation terminal will be built on two subdivided parcels that were originally part of the Triple S subdivision, lots 25 and 26 and part of Parcel A of the Airport's original lease with the County. In order to meet the City's building code, a "Lot Tie" will need to be recorded to tie those three lots together. The lot tie must be submitted for review and once approved, will be recorded with the Yuma County Assessors office.
In the meantime, the City Development Office agreed that while the lot tie is being processed, the City would continue moving forward on the project and issue building permits as appropriate. The airport hired Nicklaus Engineering to handle the necessary survey work and administrative application process with the City.
Mr. Eisenman, of Nicklaus Engineering, raised the question which we forwarded to the City about, "Who is authorized to sign the Lot Tie request?" The law states that the "Property Owner" must sign the Lot Tie Request. The Airport's lease with the County clearly identifies the YCAA as the responsible party for all property issues at the airport including "Leases, Contracts, Easements, etc." Unfortunately, our lease does not specifically include the words "Lot Tie" so prior to submitting our request for the Lot Tie, we asked for guidance from the City Planning.
According to Richard Files, Assistant City Attorney, he is fine with the president of the Yuma County Airport Authority signing the Lot Tie Request as long as we document the YCAA Board's authorization for the signing. The City asked that the legal caption be inclusive enough to describe the entire project; hence the convoluted Caption above. We will provide a notarized excerpt of the minutes along with the Lot Tie request.
3) Discussion and Possible Action to Authorize the YCAA President to sign a one to four year lease with the National Aeronautics and Space Administration either through a government lease with NASA or through the YCAA standard lease with Jacobs Engineering for the Boyington Hangar for the base sum of approximately $170,692.50 per year, plus all planned additional services as itemized in the lease document to be billed monthly, contingent on final negotiations with approval by Airport Staff and Airport Counsel.
Mr. Williams briefed that this year's 40th anniversary of Apollo 11 and America's first Moon Landing highlights the next phase of space exploration that will include the delivery of American space crews to and from the International Space Station and establishing a permanent manned presence on the moon.
NASA's new launch vehicle system is comfortably familiar and yet it is entirely new. It is the Constellation system and includes NASA's new spacecraft, the Ares and Orion.
The Ares I rocket is the essential core of a reliable space transportation system. It is the application of today's modern technology to the powerful Apollo and space shuttle propulsion system and decades of NASA spaceflight experience. This is the vehicle that will carry our space explorers back to the moon and on to Mars.
The companion vehicle, the Ares V Cargo Launch Vehicle, is the "heavy lifter" for our next-generation space fleet. Ares V will deliver huge payloads to space; things like new lunar landing vehicles and everything necessary to establish and maintain a permanent moon base stocked with food, water, plants and everything else needed to extend human presence in the next frontier.
But more importantly, especially to us, is the Orion "Crew Exploration Vehicle" (CEV). The CEV is a sophisticated Crew Module designed to launch a six-person crew from the Earth and return them safely. It will be capable of transporting and housing crews on ISS, lunar, and Mars missions.
As one would expect, a key portion of that vehicle is a parachute system that will deliver the crew back to earth, safely, every single time. Jasen Raboin is the Orion Parachute Project Manager from NASA's Johnson Space Center (JSC).
At this time the NASA team is one of the many organizations working out of the facilities at Yuma Proving Ground. During their visit they shared some of the difficulties they routinely face in the crowded environment at YPG. These difficulties have prompted them to find more suitable facilities and our new hangar is very attractive. On Wednesday, Aug 5, Mr. Raboin's team flew to Yuma from the Johnson Space Center to visit with the Airport's staff and view the hangar. It was love at first sight.
Although this is NOT a done deal, our impression is that they want the hangar and want to move in as soon as possible, making it their Yuma base of operations for the testing of the Generation 1 and 2 Parachute Architecture for the Orion space craft. Prior to leaving on Thursday, they explained they will return to NASA and then have a business and facility manager come back for a final administrative review, and hopefully acceptance. Assuming all the details work out as hoped for, they plan to occupy the facility in early September if not sooner.
The lease itself may be either a typical government lease, such as those we have with the FAA, TSA, etc., or our own standard lease. If we use our lease, although funded by NASA, it will be under the name of NASA's primary engineering firm, Jacobs Engineering. Jacobs Engineering Group Inc. is a publicly traded company with over 57,000 employees and revenues exceeding $12.0 billion. Jacobs, headquartered in Pasadena, California, offers support to industrial, commercial, and government clients around the world and includes more than 160 offices in over 20 countries, with operations in North America, the United Kingdom, Ireland, Europe, India, Australia, and Asia. They provide a wide variety of engineering and management support services to NASA.
NASA's use of the hangar will be unusual in that they will NOT occupy the hangar on a continuing basis. Instead, once they have moved in and installed all of their equipment and tools, their development team will come to Yuma about every other month and stay for three to four weeks as they prepare the capsule for flight testing.
When their preparation is complete a military aircraft, normally a C-130 or C-17 will come to Yuma, pick up the capsule and drop it over the YPG ranges. The team will monitor the event, close down their operation, depart back to the Johnson Space Center for further R&D and then return about one month later to start all over on the next phase of testing. During the flight tests the C-130's and C-17's will require servicing and the use of Lux-Air's K-loader.
The final lease details are still being worked out but the essence is that this will be for an expected duration of one year with up to three one-year options. The lease rental fee will be a combination of our triple net rate of approximately $170,692.50 per year plus a full range of billed services such as custodial, maintenance, utilities, etc. All costs in preparing the hangar for delivery are included in the pricing with an additional 8% ROI fee. All additional services will be billed monthly as itemized expenses with 15% added for overhead and ROI.
When they are in town their additional services are currently estimated to run about $7,850.37 per month. When not in residence the additional services should be about $2,846.25 per month. A rough estimate of annual revenue for additional services is $64,179.72.
They have tentatively asked us to provide pricing on some relatively minor modifications to the hangar building which will be included in their fees and amortized during the initial term of the lease, probably one year. These costs include installing a phone system, adding building security access control, adding some 3 phase 208 volt electrical outlets in the hangar bay, and upgrading the HVAC system to refrigerated air, which will likely be the most costly change. None of these costs are available at this time but will be included in the final lease.
4) Discussion and update regarding current construction projects, associated contracts, grant status, general aviation, marketing efforts, conferences and meetings and items with the city and county.
Mr. Williams gave a general update on current grant and construction projects plus other pertinent activities by the airport staff.
The DCC Apron, Boyington Hangar and Taxiway Design are on schedule and on budget. Financing for the Lux Air GA Terminal has not changed.
The Solar Power application to APS for the covered parking was not selected for funding. A larger scale solar farm for the 80 acres west of 4th Avenue extension was discussed and approved by the board to continue working towards finding a suitable partner.
The Marketing Program is on track and on budget. Mr. Williams briefed the Board on the airports TITE initiative, "Turning Inquires To Enplanements". Last year we had over 600 calls from local customers referred to local Travel Agents.
Mr. Williams discussed new possibilities with Border Patrol, including their inquiries about the Airport building them a new facility. A meeting is scheduled next week with Border Patrol representatives from Washington DC and San Diego. The Board expressed their satisfaction with this possibility.
An unveiling ceremony for the new Hangar Plaques is tentatively scheduled for the week of September 28. Budget season is approaching and a Finance Committee meeting is scheduled for Wednesday, August 18, at noon.
MILITARY LIAISON
Lt Col Workman and Mr. Greg McShane were unable to attend this week due to other military requirements.
CALL TO THE PUBLIC
Mr. Scott said he knew that the question had been asked and answered last month but asked again about the closure of Runway 17/35. He wanted to know why a contract could not be written for the use of the runway during the day. He also wanted to know if NASA does indeed come to the airport will it change airport security.
ACTION
Mr. Hengl made a Motion to authorize the Airport Director to allocate such funds as necessary, up to a maximum of $100,000, to comply with unexpected administrative requirements from the Naval Facilities Command for their consideration of the YCAA's offer to begin construction of Phase 1 of a parallel taxiway for Runway 21R/3L. Mr. Rice seconded the motion. The vote was unanimous.
Mr. Gresser made a motion to Motion to authorize the YCAA President to sign a Lot Tie request to the City of Yuma to tie Parcel 25 and 26 of the Triple S sub-division to Parcel A, as described in Exhibit A of the Airport's lease with Yuma County for the purpose of allowing DBRT YUMA FBO, LLC, i.e. "Lux Air" to commence the construction of their proposed General Aviation Terminal, as required by their lease with YCAA signed August, 5, 2008, and which shall occupy portions of the property of what was all three lots, contingent upon final review by Airport Staff and Airport Counsel. Mr. Whitehead seconded the motion. The vote was unanimous.
Mr. Hengl made a motion to Motion to Authorize the YCAA President to sign a one to four year lease with the National Aeronautics and Space Administration either through a government lease with NASA or through the YCAA standard lease with Jacobs Engineering for the Boyington Hangar for the base sum of approximately $170,692.50 per year, plus all planned additional services as itemized in the lease document to be billed monthly, contingent on final negotiations with approval by Airport Staff and Airport Counsel. Mr. Rice seconded the motion. The vote was unanimous.
ADJOURNMENT
There being no further business before the Board, the meeting adjourned at 5:17PM.
// Approved //
Craig Williams
Airport Director | |
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