Meeting Minutes for:
Finance Committee Meeting
Yuma International Airport, Conference Room
Friday, June 03, 2022 at 09:03 AM
Call to Order:
The Yuma County Airport Authority, Inc. (YCAA) Finance Committee Meeting of the Board of Directors was called to order at 9:03AM on June 3, 2022, in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Stanley Gourley, Chairman.
YCAA FINANCE COMMITTEE MEMBERS PRESENT WERE:
Stanley Gourley, Chairman & YCAA Treasurer
Reetika Dhawan, Director
YCAA FINANCE COMMITTEE MEMBERS ABSENT WERE:
Albert Gardner, Director
ALSO PRESENT WERE:
Ken Scott, Director
Gladys Brown, Airport Director
Gerald Hinkle, Jr., Chief Financial Officer
CALL TO THE PUBLIC
There were no Public Comments.
1) Discussion and possible recommendation to adopt the Yuma International Airport 2023 - 2027 and Rolle Airfield 2024 - 2028 Airport Capital Improvement Plan (ACIP) as presented.
Ms. Brown, the Airport Director, described the ACIP process and presented the projects to be submitted to the FAA and ADOT regarding future development, rehabilitation, and reconstruction at the Yuma International Airport. Ms. Brown informed the Committee that the Strategic Planning Committee had also examined the proposed ACIP in some detail during their meeting on May 26, 2022 and will recommend its adoption at the June 14, 2022 regular meeting of the Board of Directors.
After a brief discussion, the Committee came to a consensus to recommend the Board of Directors approve the ACIP for Yuma International Airport for 2023 – 2027 as presented.
Ms. Brown, then presented the ACIP for Rolle Airfield Airport, which has its own Masterplan and infrastructure planning process. Since the airport does not qualify for FAA funding, the plan will be submitted to ADOT only. After briefing the Committee on the capital improvement plan, Ms. Brown emphasized that due to the current situation of having less than twenty years remaining on the County’s lease on the property, along with the YCAA’s status as the County’s agent assigned to manage the property, the YCAA does not currently qualify for ADOT capital improvement grant funding. Ms. Brown followed by updating the Committee on efforts to enter into an agreement directly between the YCAA and the Bureau of Reclamation which would resolve this issue.
After a brief discussion regarding the capital projects included, it was the consensus of the Committee to recommend the Board of Directors adopt the Rolle Airfield 2024 to 2028 Airport Capital Improvement Plan (ACIP) as presented.
2) Discussion and overview of FY22 Year to Date Budget.
Mr. Hinkle, Chief Financial Officer provided a presentation on the status of the FY22 Budget through April of 2022. Mr. Hinkle reminded the Committee that this presentation will also be provided at the June 14, regular meeting of the Board of Directors. After some discussion regarding the nature of a few line items, the Committee expressed their understanding and satisfaction with the airport’s financial situation through April 2022.
Following this presentation, Ms. Brown, the Airport Director provided a projection that reflects estimated revenues and expenses through the remainder of FY22. Ms. Brown explained to the Committee that due to a number of positive financial events having occurred during the year, such as success in leasing the entire Joe Foss facility and paying off two long term notes, the FY22 Budget is projected to conclude with a significant amount of revenues in excess of what was budgeted.
Ms. Brown continued her discussion related to the FY22 Budget by going over her plan for investment in personnel. This plan was reviewed by the Committee. The Committee Chairman, Mr. Gourley explained to members of the Committee how the Board had authorized the Airport Director a number of years ago to implement the investment in personnel program not to exceed a total cost of $60,000 without further consultation.
3) Discussion and overview of the YCAA’s PFC program.
Ms. Brown, Airport Director, described the Passenger Facility Charge (PFC) program which allows the YCAA to accumulate locally sourced funds from airport users, for the purpose of investing in capital infrastructure. The PFC program involves obtaining FAA approval to direct signatory commercial air carriers to collect up to $4.50 per enplanement and remit these funds to the YCAA monthly. These funds are held and accounted for separately since the purpose of their collection was for specific approved projects, resulting from a process that includes participation from the public. The funds can only be expended on the intended, approved projects.
Ms. Brown provided the Committee with a detailed listing of approved PFC projects, eligible costs remaining for each and the amount of funds available for expenditure. After some discussion about the most recent authorized PFC project (PFC #8) which funds the acquisition of three new commercial airline boarding ramps and a new runway power sweeper, Ms. Brown pointed out how collections have already exceeded the total cost of approved projects which has resulted in PFC collections being halted effective July 2022. This temporary pause in collections will extend until our next PFC project which provides for matching costs of each project listed in the ACIP addressed earlier is approved.
4) Discussion and possible recommendation on personnel matters.
Ms. Brown, Airport Director, provided a presentation and information to committee regarding inflation and personnel costs. Ms. Brown described her intent to implement cost of living adjustments (COLA) across the board to YCAA personnel due to the dramatic increase in the rate of inflation. After discussing the overall situation with inflation, including providing the most recent rates of inflation for our region, which exceeds 11%, Ms. Brown introduced her plan to implement the COLA in July, rather than in October along with the start of the next fiscal year. Ms. Brown showed the Committee that the cost of early implementation of the COLA would cost the YCAA less than $50,000 against the FY22 Budget which has room to absorb the cost. The consensus of the Committee was to support the early implementation, with recognition that the decision was well within her authorized limit.
Ms. Dhawan pointed out that Ms. Brown’s scheduled rate of increase was not in alignment with the amounts listed for the remainder of YCAA personnel and expressed her desire to ensure that Ms. Brown also receive an increase in an amount commensurate with the rest of the employees. Mr. Gourley, Chairman of the Committee pointed out that unlike other YCAA employees, Ms. Brown has a contract. Mr. Gourley expressed his desire to authorize a similar COLA for Ms. Brown but explained how that action would be considered as part of the annual evaluation process included in her contract. Mr. Hinkle, Chief Financial Officer expressed his agreement related to the process described and reminded the Committee that language in Ms. Brown’s contract allows the Board to take any action they believe is necessary regarding her compensation.
The consensus of the Committee was to support the early implementation of the COLA proposed and agreed that no further action would be required.
CALL TO THE PUBLIC
There were no Public Comments.
There being no further business before the Committee the meeting adjourned at 10:43AM.
|// Approved //|
Treasurer, Yuma County Airport Authority; Finance Committee Chairman
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|Thu Jan 19, 2023 -- Strategic Planning Committee|
|Tue Jan 10, 2023 -- January Board|
|Tue Jan 10, 2023 -- Annual Board Meeting 2023|
|Tue Dec 13, 2022 -- December Board|
|Tue Dec 6, 2022 -- Finance Committee|
|Tue Nov 8, 2022 -- November Board|
|Tue Oct 11, 2022 -- October Board|
|Thu Sep 22, 2022 -- Elections and Personnel Committee|
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|Tue Aug 9, 2022 -- August Board Meeting Minutes|
|Wed Aug 3, 2022 -- Elections and Personnel Committee |
|Tue Jun 14, 2022 -- June Board|
|Fri Jun 3, 2022 -- Finance Committee|
|Thu May 26, 2022 -- Strategic Planning Committee|
|Tue May 10, 2022 -- May Board|
|Tue Apr 12, 2022 -- April Board|
|Tue Mar 8, 2022 -- March Board|
|Mon Feb 28, 2022 -- Strategic Planning Committee |
|Mon Feb 28, 2022 -- Elections and Personnel Committee |
|Mon Feb 28, 2022 -- Public Relations Committee |
|Mon Feb 28, 2022 -- Finance Committee |
|Tue Feb 8, 2022 -- February Board|
|Tue Jan 11, 2022 -- January Board|
|Tue Jan 11, 2022 -- Annual Board Meeting 2022|
|Tue Dec 14, 2021 -- December Board|
|Tue Nov 9, 2021 -- November Board|