ASHLAND AIRPORT COMMISSION January 8, 2001 MINUTES MEMBERS PRESENT: CHAIRMAN PAUL ROSTYKUS, LILLIAN INSLEY, WILLIAM SKILLMAN, DONALD FITCH, KENNETH EHLERS, COUNCILOR ALAN DEBOER, LINCOLN ZEVE STAFF: PAULA BROWN, DAWN CURTIS, BOB SKINNER, FBO MEMBERS ABSENT: MARTY JACOBSON, BRENT THOMPSON 1. CALL TO ORDER: 11:30 AM ADDITIONAL AGENDA ITEMS: None. 2. APPROVAL OF MINUTES: December 11th minutes accepted with changes; moved approval – seconded; passed unanimously. 3. OLD BUSINESS: A. Tara Labs Hangar Usage Ehlers was going to contact Merrill Bergs but Bergs has been out of town. DeBoer will talk with Bergs and see if perhaps Zeve can arrange a sublet agreement for his aircraft. Action: Brown and DeBoer will follow up with Bergs. Letter will be mailed in a week. B. Sandler Lease for Restaurant No response from Sandler. Brown has asked for a draft lease. We will look at the Klamath Falls airport lease with their restaurant for comparison. DeBoer reminded Commission that neither of these facilities was built by the renters. Sandler is apt to lose more then he will gain in this endeavor and the $100,000 worth of improvements will benefit us in the future. City staff is not supporting this risky endeavor. The city attorney does not have time to work on the lease and has requested that Sandler produce a lease or have the commission hire an attorney to write the lease. DeBoer asked if this should be an addendum to Skinner’s lease and let him handle the use of the space if the restaurant fails. Skinner will consider this and look into his insurance. DeBoer is willing to work with Sandler and Nolte to negotiate the lease. Brown commented that the lease terms that Sandler has presented are unacceptable. A 50-year lease will never be acceptable; 20 years may be negotiable. Brown commented that it might not be appropriate for the FBO to accept the risk (liability) of the restaurant. The lease must have a clause regarding reversion to the City if the restaurant fails, cleaning and utility costs, bathroom use and maintenance, and the lease rate whether it be $.17 or if we do a percentage of profit and so forth. Brown will need to refer any building alteration or additions to the Planning Department for approval. This may require Planning Commission approvals. Action: DeBoer will meet with Sandler. DeBoer and Brown to work together on lease arrangements. Brown will check with Parks Department on the Oak Knoll Restaurant lease and obtain copies of other relevant leases. C. Lincoln Zeve Hangar Spaces Lincoln Zeve reviewed the three options for a smaller hangar. There would be benefit to using spaces in Option 1 and Option 2 because Zeve would not need to excavate or build extensive taxiway. Using these spaces has been frowned upon because this crowds other hangars and taxiways. Building next to Valley Investments would create a clearance problem. If the commission chooses Option 3, neighboring hangars will need to be notified. The CAP uses this area for field exercises. Further excavation for private hangars will need to be done before it is financially feasible for private builders. This could be 5-6 years. The AIP request will be financed in October 2001. We proposed for combined project in one year of $500,000 instead of two one-year projects of $250,000 each. Action: Motion made to approve Option 3 with a hangar to match the Tara Lab hangar size. In addition the commission asked that the Engineering staff provide a building layout on the site and see if the 39.5 X 42 hangar will fit. Send notification to the neighboring hangars and request that they send comments or attend a future commission meeting. Reduce the spacing between the hangar to 10 feet. Zeve abstained from vote. Passed unanimously. 4. NEW BUSINESS: A. Airport Improvement Plan In March the commission looked at the draft FAA AIP request. In October staff send the official preliminary request to the FAA. Commission would like to put more influence on constructing the taxiway for the t-hangars. Our maximum amount is $500,000. The City will have to match 10% and we can use staff time and resources to offset that cost. If we need specific engineering it could cost us more out of budget money. The additions requested by the commission will be modified on the drawings and a revised proposal sent off to the FAA. 5. BUDGET ISSUES: 1. Review of 2000 Budget Expenditures Brown went over expenditures for the first six months of FY01. Utilities costs are higher than normal, Brown will look into the electric pieces. Central services is the cost for staff time and support. Dues are authorized at $250, but nothing has been expended to date. Airport Commission budget has been allocated to the printing and advertising of the RFP. Capital outlay although budgeted for $225,000, there will be no expenditure this year as the AIP will be a combined 2 year project. Overall, we are in good shape. We have $6,800 left in the maintenance line item and we have spent less than $30,000 so far. There is some landscaping that Parks will need to finish. Equipment payback (fuel tank reimbursement) will stay at $18,000. We could look at increasing the amount next year for a faster pay-off for the fuel tanks. Brown will check with Finance Director to see if this is appropriate use of funds and if this would be beneficial to the airport fund. For next year; electric expenditures will need to be increased and other utilities will stay the same. Central services is appropriate at $26,000. Insurance will go up 10% as usual. Other fees will round up a little as appropriate, dues will stay at $250 and Airport Commission fees could be increased or left as is. Skinner asked about the weather computer fees. The tie-downs were increased by a dollar to cover this cost. Staff and Skinner will need to discuss this cost. DeBoer will contact Bergeson/Boese to discuss the costs of repairing the tanks. We can get this money from the maintenance fund. It would be about $3,800. Skinner will need to get three bids from contractors for this repair work. Council will look at unappropriated funds. Commission would like it to be $10,000. Our budget will go to the Budget committee in April. 6. AIRPORT MANAGER REPORT/FBO REPORT/AIRPORT ASSOCIATION: A. Status of Airport, Financial Report, Review of Safety Reports Please paint the centerline by the six T-hangars. The front door needs repair. Peters with the City is looking for a part. Sky Research has their slab poured and the structure is there. High fuel sales in December. Looking for technicians for the hangar. B. Airport Association Report – No report. C. Other – None 7. INFORMATIONAL ITEMS – ADJOURN Meeting adjourned at 1:00 PM