08/14/2019

Meeting Minutes for:
Strategic Planning Committee Meeting
Yuma International Airport, Conference Room
Wednesday, August 14, 2019 at 12:04 PM

    Call to Order:
    The Yuma County Airport Authority, Inc. (YCAA) Strategic Planning Committee Meeting of the Board of Directors was called to order at 12:04PM on August 14, 2019 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Russell Jones, Chairman.

    YCAA STRATEGIC PLANNING COMMITTEE MEMBERS PRESENT WERE:
    Russell Jones, Chairman
    Bill Craft, Director
    Stanley Gourley, Director (attended the meeting telephonically)

    YCAA STRATEGIC PLANNING COMMITTEE MEMBERS ABSENT WERE:
    Albert Gardner, 1st Vice President

    ALSO PRESENT WERE:
    Gladys Brown, Airport Director
    Gerald Hinkle, Jr., Chief Financial Officer
    Jason Frost, Chief Technology Officer
    Andrea Lopez, Executive Assistant
    Gen Grosse, Property/Community Relations
    Juan Trasvina, Airport Operations Supervisor (exited the meeting at 1:57PM)
    Colonel David Suggs, USMC, Commanding Officer, MCAS Yuma (exited the meeting at 1:57PM)
    Maj Henry Hortenstine, USMC, Military Liaison (exited the meeting at 1:57PM)
    Greg McShane, MCAS Operations Officer (exited the meeting at 1:57PM)
    Minda Davy, Airport Legal Counsel

    CALL TO THE PUBLIC
    There were no Public Comments.

    REGULAR AGENDA

    Russell Jones, Strategic Planning Committee Chairman changed the order of the Agenda items to accommodate MCAS presence, moving item one to the last agenda item.

    1) Strategic Planning Committee discussion and possible recommendation regarding the Joint Use Operating Agreement between MCAS Yuma and Yuma County Airport Authority (YCAA).

    Ms. Brown, the Airport Director, briefed the Committee on the history of the Joint Use Operating Agreement between the YCAA and MCAS Yuma. Ms. Brown described a recent request by MCAS Yuma to update and amend the agreement and went over their proposed language in detail. The Committee members and MCAS representatives discussed at length the issues at hand as well as the overall goal which was stipulated to result in improved security on the airfield.

    The consensus of the Committee was to direct YCAA staff to continue working with MCAS Yuma on the proposed revisions and to report back with agreed upon language once that point in the process has been reached.

    2) Strategic Planning Committee discussion and possible recommendation regarding the Patent issued to the County of Yuma, by the United States Department of the Interior in February of 1956.

    Col Suggs began the discussion citing his thorough knowledge of the Patent and the rights provided to the County contained within it. He emphasized however that the Patent is essentially a water rights agreement with additional language addressing airport issues. Col Suggs told the Committee that he is not interested in contesting the Patent or the access rights cited within, but believes the “higher ups” in Washington do not understand the nature of the MCAS Yuma / YCAA operating relationship that has evolved as a result. Col Suggs further expressed his desire to improve airfield security to such an extent that the rights contained within the Patent or the Patent itself is not challenged.

    Ms. Brown emphasized to the Committee the importance of the Patent by describing the document as the “most valuable asset” the County has in its possession in regards to the airport. After pledging her commitment to work with MCAS on the implementation of procedures aimed at improving airfield security, Ms. Brown proposed that most security related concerns related to development of operations in the DCC could be removed if the DoD leased remaining property for their purposes and developed improvements to support the ever expanding mission at MCAS Yuma.

    The Committee had a brief intermission from 1:57 PM to 2:02PM.

    3) Strategic Planning Committee discussion and possible recommendation regarding the sublease and operating agreement, operational and financial status of AQST Space Systems Group, LLC.

    Ms. Brown provided the Committee a brief history of AQST and their lease of the Joe Foss Hangar facility, which has a remaining term of nine years. Ms. Brown went on to explain to the committee AQST’s account status in regards to meeting the obligations under the terms of their lease and described them as a “slow pay”. The Airport Director continued by informing the Committee of several Notices of Default that have been issued, some of which were satisfied and the issues that remain. A detailed listing of their existing account status showed that AQST is currently behind, having yet to pay the YCAA for July and August lease rent and several months of reimbursement for electrical service. The schedule provided totaled an amount due of just over $70,000. Ms. Brown continued by informing the Committee of AQST’s recent attempt to remove their lease obligations via written notice and our rejection, a copy of which was provided for their review.

    Ms. Brown met with one of the principals of AQST to help understand their situation and the information that was obtained. Essentially, it was learned that AQST has taken longer than anticipated to establish their target market and communicated their desire to continue to sub-lease portions of the facility in order to meet the obligations under the lease. Ms. Brown described how YCAA committed to assist AQST in marketing available excess space, until such time as AQST no longer needs it.

    Ms. Brown informed the Committee of AQST’s failure to get the electrical service into their name and the risk to the facility if the electrical service was discontinued. If power was lost, the facilities fire suppression and alert system would not be functional, and neither would YCAA’s remote server location which is vital to YCAA’s ability to operate effectively.

    The Committee directed staff to keep the electrical service in YCAA’s name, regardless of our agreements stipulation otherwise and pass the cost along to AQST until such time as YCAA’s vital interests in the facility are protected by getting them on a separate meter with APS.

    After providing information as to the possibility of amounts due from AQST rising to as much as $139,000 in the next 30 days Ms. Brown described bonds totaling $30,000 provided by the tenant as a security deposit. Ms. Brown shared that one of these bonds was about to expire and received direction from the Committee to ensure it is extended or replaced to maintain security for amounts due under the lease.

    YCAA legal counsel Ms. Davy assured the Committee that during our meeting with the principal of AQST YCAA communicated that YCAA expects AQST to comply with all provisions contained in our agreement, including the payment of electricity and lease rent regardless of their ability to sub-lease the facility.

    ADJOURNMENT
    There being no further business before the Board the meeting adjourned at 2:31PM.




    // Approved //
    Russell Jones
    Secretary Yuma County Airport Authority; Strategic Planning Committee Chairman


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