02/14/2023

Meeting Minutes for:
February Board Meeting
Yuma International Airport, Conference Room
Tuesday, February 14, 2023 at 04:00 PM

    Call to Order:
    The Yuma County Airport Authority, Inc. (YCAA) Regular Meeting of the Board of Directors was called to order at 4:00PM on February 14, 2023, in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Bill Craft, President.

    YCAA DIRECTORS PRESENT WERE:
    Bill Craft, President
    Dean Hager, 1st Vice President
    Russell Jones, 2nd Vice President
    Stanley Gourley, Treasurer
    Eric Saltzer, Secretary
    Reetika Dhawan, Director
    William Fox, Director
    Albert Gardner, Director
    Juan Guzman, Director
    Ken Scott, Director
    Jenny Torres, Director

    YCAA DIRECTORS ABSENT WERE:
    None

    ALSO PRESENT WERE:
    Gladys Brown, Airport Director
    Gerald Hinkle, Jr., Chief Financial Officer
    Andrea Lopez, Executive Assistant
    Greg McShane, MCAS Operations Officer
    Ryan Hart, Million Air Yuma

    CALL TO THE PUBLIC
    There were no Public Comments.

    APPROVAL OF MINUTES
    Mr. Craft, the YCAA President, called for a motion to approve the minutes of the December 13, 2022, Annual Board Meeting. Mr. Hager so moved. Mr. Scott seconded the motion. Motion passed unanimously.

    Votes in Favor:
    Mr. Craft
    Mr. Hager
    Mr. Jones
    Mr. Gourley
    Mr. Saltzer
    Ms. Dhawan
    Mr. Fox
    Mr. Gardner
    Mr. Guzman
    Mr. Scott
    Ms. Torres

    Votes Opposed: None

    Mr. Craft, the YCAA President, called for a motion to approve the minutes of the December 13, 2022, Regular Board Meeting. Mr. Gourley so moved. Mr. Scott seconded the motion. Motion passed unanimously.

    Votes in Favor:
    Mr. Craft
    Mr. Hager
    Mr. Jones
    Mr. Gourley
    Mr. Saltzer
    Ms. Dhawan
    Mr. Fox
    Mr. Gardner
    Mr. Guzman
    Mr. Scott
    Ms. Torres

    Votes Opposed: None

    COMMITTEE REPORTS
    1) Strategic Planning Committee Chair, Russ Jones, will provide a summary of the January 19, 2023, meeting.

    Strategic Planning Committee Chair, Russ Jones, provided a brief summary of the January 19, 2023, meeting which included a discussion about future capital improvements contained in both the Yuma International Airport and Rolle Airfield Airport master plans, as well as consideration of extending the existing lease agreement with Skydive San Luis, as originally authorized, even though neither the YCAA, nor the tenant are able to obtain liability insurance to manage the risk in the case of a catastrophic event during a skydive operation. Mr. Jones described the Committee’s recommendation that any extension include provisions intended to help minimize the risk including adding provisions that would:

    -Require the Lessee to obtain fully executed liability release/waivers from every customer, and language that would allow the YCAA to audit the operation to ensure compliance; and
    -Require Lessee be responsible for any and all costs incurred by the YCAA as a result of any mishap related litigation, including legal defense.

    2) Finance Committee Chair, Stanley Gourley, will provide a summary of the January 27, 2023, and February 8, 2023, meetings.

    Finance Committee Chair, Stanley Gourley, provided a summary of the January 27, 2023, and February 8, 2023, meetings in which the Committee made the following recommendations:

    -Board of Directors authorize a one-time “Off-Budget” expenditure of $546,000 in Capital Reserves to pay down the balance due on Note #1713 held by 1st Bank Yuma, followed by revisiting the issue in the summer of 2025. (Agenda Item #1)

    -Board of Directors authorize the investment of $1.5 Million of Capital Reserves into a 12 month Certificate of Deposit at 1st Bank Yuma. (Agenda Item #2)

    REGULAR AGENDA
    1) Discussion and possible action related to the authorization of a one-time “Off Budget” lump sum payment of $546,000 against the balance due on Long-Term Note Payable #1713 held by 1st Bank Yuma.

    Ms. Brown, the Airport Director, described the YCAA’s remaining long-term debt, and the estimated financial impact of using existing capital reserves to pay the principal down in an amount of $546,000 which represents approximately 25% of the remaining balance due as recommended by the Finance Committee.

    Ms. Brown explained that the Committee’s recommendation is based on a number of factors including the YCAA’s large balance of Capital Reserves available, and the financial benefit from reducing the balance due on Note #1713 ahead of July 2025 when the effective interest rate is expected to escalate dramatically from its current 3% annual rate to a rate equal to 8.5% based on current conditions.

    Mr. Craft, the YCAA President, called for a motion to authorize the President, Airport Director, or their designated representative to make a one-time “Off Budget” lump sum payment of $546,000 against the balance due on Long-Term Note Payable #1713 held by 1st Bank Yuma. Ms. Dhawan so, moved. Mr. Hager seconded the motion. After some discussion the motion passed unanimously.

    Votes in Favor:
    Mr. Craft
    Mr. Hager
    Mr. Jones
    Mr. Gourley
    Mr. Saltzer
    Ms. Dhawan
    Mr. Fox
    Mr. Scott
    Ms. Torres
    Mr. Gardner
    Mr. Guzman

    Votes Opposed: None

    2) Discussion and possible action related to the authorization of an investment of $1.5 Million of Capital Reserves into a 12-month Certificate of Deposit.

    Ms. Brown, the Airport Director, described the nature of bank accounts held on deposit at 1st Bank Yuma which include a checking account, a money market account which is used to hold Passenger Facility Charge (PFC) revenues and a “savings account” commonly referred to as the YCAA’s Capital Reserves.

    Ms. Brown described how the YCAA’s historically large balance in Capital Reserves earns interest at a rate of only 0.30% due to the nature of the account. Ms. Brown then described 1st Bank Yuma’s offer to invest any amount of at least $1 Million but no more than $2 Million in a Certificate of Deposit (CD) with a term of either one year or two years at a rate designed to result in a 4% Annual Percentage Rate if held to maturity. The purpose of the Finance Committee’s meeting on February 8, 2023 was to evaluate this opportunity.

    Ms. Brown stated the Finance Committee has recommended that the Board authorize the investment of $1.5 Million of the YCAA’s Capital Reserves into a 12-month Certificate of Deposit, as offered which would generate $60,000 of interest if held to term rather than only $4,500 if the same funds were left in the YCAA’s existing Capital Reserves savings account which earns only 0.30% interest annually.

    Mr. Craft, the YCAA President, called for a motion to authorize the President, the Airport Director or an authorized representative to invest of $1.5 Million of Capital Reserves into a 12-month Certificate of Deposit as offered by 1st Bank Yuma. Mr. Jones so, moved. Ms. Dhawan seconded the motion. Motion passed unanimously.

    Votes in Favor:
    Mr. Craft
    Mr. Hager
    Mr. Jones
    Mr. Gourley
    Mr. Saltzer
    Ms. Dhawan
    Mr. Fox
    Mr. Scott
    Ms. Torres
    Mr. Gardner
    Mr. Guzman

    Votes Opposed: None

    3) Monthly report by Chief Financial Officer on current financial status.

    Mr. Hinkle will brief the Board on our current financial status.

    During a discussion related to the $800,000 of Capital Reserves “ear marked” for a future investment into bringing electricity to Rolle Airfield Airport, Mr. Gardner suggested the Board consider the possibility of increasing the $1.5 Million authorized in Agenda Item #1 to be invested into the CD by an additional $800,000. After reminding Mr. Gardner that the maximum amount offered by 1st Bank Yuma was $2 Million, Ms. Brown said she would investigate the possibility of increasing the amount invested into the 12-month CD by an additional $500,000 to a total of $2 Million.

    MILITARY LIAISON
    Greg McShane, MCAS Operations Officer, thanked the Airport for all the Airshow support. He then provided updates on the MCAS Yuma Airshow.

    4) Presentation and update regarding current construction projects, associated contracts, grant status, general aviation, marketing efforts, terminal improvements, aviation conferences, meetings, and items of interest with the city and county or other federal or state agencies. This will include, but is not limited to, additional information, FAA and ADOT grant updates, an overview of projects underway, airport operations, Rolle Airfield, airline recruitment and retention efforts, general aviation, future events, and other Airport business.

    Ms. Brown, Airport Director, provided a presentation on the status of airfield operations to include the runways and taxiways, VirTower Reports for Rolle and NYL, American Airlines updates along with the load capacities and schedule, Rent Car update, Brewers restaurant update, Parking Lot update, Rolle Airfield Update, Skydive San Luis, Air Service Conference, Rolle Airfield Master Plan, Yuma Proving Ground Meeting, marketing and community outreach over the past month to include social media.

    CALL TO THE PUBLIC
    There were no Public Comments.

    ADJOURNMENT
    There being no further business before the Board the meeting adjourned at 4:57PM.




    // Approved //
    Eric Saltzer
    Secretary, Yuma County Airport Authority; Public Relations Committee Chairman


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