ASHLAND AIRPORT COMMISSION June 11, 2001 MINUTES MEMBERS PRESENT: CHAIRMAN PAUL ROSTYKUS, DONALD FITCH, ALAN DEBOER, LINCOLN ZEVE, BRENT THOMPSON, LILLIAN INSLEY, KENNETH EHLERS, MARTY JACOBSON, WILLIAM SKILLMAN STAFF: PAULA BROWN, DAWN CURTIS, BOB SKINNER, FBO MEMBERS ABSENT: 1. CALL TO ORDER: 11:30 AM ADDITIONAL AGENDA ITEMS: Web Cam Proposal, Donald Fitch. 2. APPROVAL OF MINUTES: May 14th minutes accepted with changes; moved approval – seconded; passed unanimously. 3. OLD BUSINESS: A. Fuel Dispensing (Skinner Follow-Up) B. Sorenson Update 1. Proposal- Mike Sorenson addressed the Commission on the direction of his business. The company is manufacturing motion controlled robotics for aviation use. There business prospective was focused on the motion picture industry but has recently converted to nearly 100% aviation use. This will make being on the airport an advantage to the business. Sorenson has met with Scott Johnson of the City Electric Department who discussed the availability and some of the details that will need to be ironed out. Sorenson wanted the Commission to know he is anxious to acquire this lease, but does not want the Commission to feel pressured into anything. DeBoer assured him that there are some who want this development to happen but there are also those concerned with the environmental impact to the flora and fauna. There could be obstacles. 2. Lease Discussion (rates) The first obstacle for the commission will be to revise the lease to correspond with a manufacturer and not hangar usage. Sorenson had concern over the lease in the interest of acquiring funding from lending institutions. DeBoer commented that the lease would be considered a pre-paid lease that could be passed to a third party through the first right of refusal clause which makes the lease transferable and sellable. Property tax on the land and building will need to be researched. County will determine the worth of the building and the taxes on the leasable land similar to the Imperatrice Property owned by the City. The minimum standards did not call out any manufacturing limits. The business is not noisy and the CNC is done by an outside business. The business will not require direct access to the airport so there will no need for a taxiway. Commission considered this a factor in businesses located on the site. If there is a need for an access it will be difficult to accommodate planes needing to cross the road. Insley said that helicopters could be an option. DeBoer reminded Commission that this plan will need to be reviewed by the Planning Department along with a public comment process. This site encompasses obstacles such as the creek proximity and utility access. There may be a limit to building size to fit these constraints. This being a city owned property, the planning review would require a joint application for Sorenson and the city. Commission needed to decide the percentage of business will be acceptable for lease consideration. Land slope makes it impossible for hangars. Thompson commented that business should be no less than 25% aviation based gross sales and this needs to be verified by a certified public accountant and this condition should be applicable to any replacement applicant. Skillman felt this was low and should be at least 75%. The site not being accessible to the taxiway would limit some aviation based businesses. Fitch agreed with 51% but feels that DeBoer is correct in assuming if they were heavily aviation based, they would want to be on the airport. Rostykus and DeBoer were against having planes taxing across the road to the airport. Commission agreed that percentage should remain the same for a re-lease. Action: Motion: To consider an applicant for the aviation related site or to be an applicant for an already existing lease, company must be no less than 25% gross sales in aviation related business verified by a certified public accountant. If the business is to be built on the northeast side of the road the percentage could be higher, at the discretion of the airport commission. Staff is to work out the ground lease rate by comparing amounts of the Jackson County Airport leases for surrounding areas. Also ask if they are basing rates on a square footage of building or by the footprint / land. Staff is to bring back example numbers. Staff will meet with Sorenson and Planning Staff to begin the preparation for a planning review. Sorenson will pay fees for planning approval. Costs will be looked at with Planning Department. Airport Commission may be willing to pay a percentage of the fees. Commission is supportive of Sorenson’s proposal. C. Lincoln Zeve Hangar Proposal for Review Zeve has been in contact with city staff regarding the sewer and storm drain lines and the electric connection. The site will need little excavation. The size will be 42 X 39.5 and the color should match the brown of the other nestled t-hangars. Zeve presented three options for the electric meter. One that was suggested was to connect to the CAP meter and sublet from them; install a meter with Pacific Power or install a City of Ashland meter. Brown will look into the subletting with CAP. This may not be acceptable and in the long term a separate meter may be more acceptable. Bill Krayer, CAP was present and asked for clarification on what was entailed with the removal/filling of the septic tank. Brown explained that there would be a stub for them when they were ready to hook up to sewer, but that the CAP would need to cover the SDC charges, building permit fees and the cost for the actual sewer connection. 4. NEW BUSINESS: A. Freight Tarriff Rate Commission discussed staying within prices of Jackson County rates. Staff will bring back costs at next meeting. 5. AIRPORT MANAGER REPORT/FBO REPORT/AIRPORT ASSOCIATION: A. Status of Airport, Financial Report, Review of Safety Reports Fueling dispensing equipment will be installed next week. More crack sealing will be done this week and then there will be painting left to do. Self serve fueling has passed through the senate. Skinner would like to apply for a FAM grant with ODA for the $14,000 needed to complete the card pay system the new fuel system was retrofitted to accommodate. The benefit would be a decrease of maybe 15¢ per gallon. DeBoer suggested applying a 5¢ surcharge per gallon to help with the cost of the equipment. Commission decided that it would be beneficial to Oregon to have three or more airports equipped for self serve along the heavily traveled routes. The Commission felt that the ODA should sponsor the cost of the self service stations for these airports. The Commission will send a letter asking for this program to be considered by ODA and Ashland to be considered as a possible candidate for the program. This could be an increase of 10-15% in fuel sales for our airport. B. Airport Association Report – None. C. Other 1. Rostykus presented an example of a flyer put out by the Bend Airport that would fit in line with the courteous flyer reminder that was discussed last month. Staff will work with Rostykus on putting together a similar flyer. 3. Web Cam Development Don Fitch presented a web cam for consideration. It could be a $79-150 expense and could be mounted on the Sky Research Hangar. Fitch will try avenues for funding through ODA or Fed Ex and other sources of money. Fitch also will need a dedicated computer for the web cam. ADJOURN Meeting adjourned at 1:35 PM