ASHLAND AIRPORT COMMISSION March 11th, 2002 MINUTES MEMBERS PRESENT: CHAIRMAN PAUL ROSTYKUS, LILLIAN INSLEY, BRENT THOMPSON, MARTY JACOBSON, WILLIAM SKILLMAN, DONALD FITCH, LINCOLN ZEVE STAFF: PAULA BROWN, DAWN LAMB, BOB SKINNER, FBO MEMBERS ABSENT: ALAN DEBOER, KENNETH EHLERS 1. CALL TO ORDER: 11:30 AM ADDITIONAL AGENDA ITEMS: A) Sandler Proposal 2. APPROVAL OF MINUTES: February 11th minutes accepted as written; moved approval – seconded; passed unanimously. 3. OLD BUSINESS: A. SFBO / Commercial Lease Discussion Commission discussed the theory of a rate or fee paid by Secondary Fixed Base Operators. The rate would offset usage of the airport field for these businesses. The rate would need to be such that it could fairly apply to all SFBO lessees. Staff proposed a fixed number that would be multiplied by the square footage. This cost would be set by the Airport Commission. Staff has been looking at a number in the range of 1.6. At this rate the Sky Research cost would be (12,000 sf X 1.6 =19200 sf) X $.1745 = $3,551.00 per year. This would be the cost of doing business at the airport. Rostykus asked if this would be in place of the gross profit rate that has been previously discussed. Staff felt this would be a more even playing field and would be less of an administrative burden on both City Staff and the SFBOs. Brown has left the gross profit as an option within the lease. As a choice the lessee could chose this option during lease renewals. Jacobson voiced concern over section 8.3 where the lease limits office spaces. The lessee should have control over their hangar without interference from the City. They pay for the space, it should be up to them to conduct business they see fit. Skillman opted for a balance between the airport related business and personal use. The concern is that the cost of office space anywhere else in town would be a higher rate then the $.17 we are charging. The idea of a checks and balance being in place to ensure the airport is not being taken advantage of needs to be addressed in the lease. Zeve supported having legal enforcement for violating the usage clause included in the lease and that wording stating if legal action is taken that the lessee is responsible for payment of legal fees. Landscaping areas are called out to be the responsibility of the lessee. Landscaping percentages are set by the Planning Commission at the time of plan approval, the lessees will be informed of this amount. Parking is done in the same manner as landscaping dependant on the type of business. City inspections of the premises is also a condition. Notification will be given prior to inspections. Zeve voiced concern over making the leases too limiting and constrictive. The idea is to encourage the building of businesses. Are we still accomplishing this? Rostykus felt this was an attempt to make the opportunity fair for large and small businesses interested in the airport. The question of infrastructure reimbursement was addressed. The cost of access roads and use of parking areas and facilities is already established. Is the fees for the SFBO and their rent going to encompass the degradation of the airport infrastructure? Sky commented that the business requires incentive for building at the airport. Rostykus feels businesses are taking a gamble to build not knowing if they will profit or not. Zeve commented that the use of the airport is what we are looking for and the infrastructure support needs to be there. Commission considered different numbers to compare the costs of using a higher percentage number. Insley made a motion to accept the 1.6 rate for doing business as a Secondary Fixed Base Operator. Thompson felt the Commission should move forward on this decision. The lease has been months in the discussion and we need to make a decision. Sky deserves something firm, it is a hardship for their business at this time. He suggested adopting this lease as a framework for now and make revisions later if needed. Sky was not in support of a gross receipt percentage. The idea of a business tax was considered but would still create an accounting nightmare. Fitch feels the 1.6 should stand alone with no percentage clause. Action: Thompson seconded Insley’s amended motion for the lease in entirety to be accepted. Motion was dropped. Zeve motioned for the 1.6 rate to be accepted by the Commission. Thompson seconded this motion, passed unanimously. Zeve motioned for the lease to be revised excluding all references to the gross receipt percentages (Sections 3.2, 3.3 and 3.6 and other reference to gross receipts). Fitch seconded the motion. Passed six in favor, one opposed (Jacobson). 4. NEW BUSINESS: A. CAP Lease A subcommittee was formed; Rostykus, Bill Crayer, and Bill Skillman to begin negotiations for the upcoming lease renewal. Topics to be addressed include utility cost for septic connection and use of hangar to house private aircraft. Action: Subcommittee will arrange meeting time and report back to Commission. B. Minimum Standards Review Commission received copy of the Minimum Standards for Commercial Aeronautical Activities by the Oregon Department of Aviation. Commission could consider adopting these standards in their entirety in place of our current Minimum Standards. Skinner feels that the ODA Standards closely follow the FAA standards . Action: Commission is to compare the current Ashland Minimum Standards against the ODA Minimum Standards and be prepared to discuss the adoption at the next meeting. C. Jacobson Proposal Jacobson would like to build a hangar next to the Tregg Scott/ Day hangar. The hangar would include office space and equipment storage other than airplanes. Jacobson will need to speak to Lamb to work out the proposal details and building requirements. 5. AIRPORT MANAGER REPORT/FBO REPORT/AIRPORT ASSOCIATION: A. Status of Airport, Financial Report, Review of Safety Reports There was a water leak that was repaired. Weeds are growing, need attention soon. Skinner would like to do a clean-up day and have the sweeper there to clean the apron. This would require people to help move the tie-down airplanes. He would like six to eight people for about half a day. Need to contact Street Department to arrange the sweeper, probably need a weeks notice and it will need to be a weekday. Airport Appreciation Day – May 19th. Work is in progress. Other: ODA Aviation Town Hall Meeting – Rogue Valley International, March 20, 2002 at 7 PM. ADJOURN Meeting adjourned at 1:00 PM