ASHLAND AIRPORT COMMISSION November 5, 2002 MINUTES MEMBERS PRESENT: CHAIRMAN PAUL ROSTYKUS, WILLIAM SKILLMAN, LINCOLN ZEVE, ALAN DEBOER, BRENT THOMPSON, RICHARD HENDRICKSON STAFF: PAULA BROWN, DAWN LAMB MEMBERS ABSENT: ANN SKY, BOB SKINNER, FBO, DONALD FITCH, MARTY JACOBSON 1. CALL TO ORDER: 10:00 AM 2. APPROVAL OF MINUTES: October 1st minutes were approved with changes 3. OLD BUSINESS: A. Taxiway Paving & Excavation Project There was more fill than originally calculated, but other areas have been identified for relocating. The area is now ready for the taxilane construction as soon as weather permits. There is still some storm drain work to be done. B. Self-Serve Fuel Financial Proposal The cost estimate is $5,800 for the work to be done if the discounts Skinner has been researching come to fruition. Zeve asked for staff to look into options for the electrical work. Rostykus asked for clarification of where the money to pay for this will be coming from. There is $6,000 remaining in the maintenance budget and this gives us the option to pay outright or to get a loan from the City and pay back. Commission asked the status on the parking lot repaving. Brown had an estimate done and because of the extensive disrepair the lot would cost approximately $30,000 to replace. This project has been delayed until funding can be found. The repair can not be covered by grants from the FAA or by ODA. Skillman supported using the maintenance fund money for the self-serve. The maintenance fund would be needed for snow removal or for mowing. The mowing will definitely need to be done but the cost could be taken from the supplemental budget. The cost of the self-serve would be recovered through a surcharge to the fuel. If the fuel sales continue steady the money would be paid back in four year’s time. This surcharge would be placed on all fuel bought including fuel truck sales. Once the surcharge is in place it would most likely never be revoked. Zeve pointed out if fuel sales increase the payoff would be even faster. Action: Motion to add a $.02 surcharge on per gallon on fuel sales to reimburse the maintenance fund and after the self-serve fuel is paid off the surcharge funds will be used to supplement the maintenance fund. Staff is to proceed with bids for the installation of a self-serve fueling facility using their best discretion. Seconded by Skillman and passed unanimously. C. Security Trailer Update The security trailer has now been removed from the airport. Commission discussed if the security was really an issue. Zeve mentioned placing a camera up at the airport. It was recalled that Fitch was looking into this at one point. Commission asked staff to request the police to do a drive through during the night and remind them not to drive on the runway. Thompson asked what the zoning policy was for the airport. Is it allowable for someone to live at the airport, and if not is it something that could be considered for the future. The commission felt if it came down to having a security presence again they would consider this if the person was responsible. D. Beacon Light Location Change Proposal Staff was waiting for an arborist to look at the tree and report back on how far down the tree could be trimmed. Brown consulted the arborist because of the City policies regarding tree removal in the City. Hendrickson stated that this is a safety issue and this should be moved ahead rapidly. Thompson asked if the motion made at the last month’s meeting could be amended to read “prune or top the tree to a point where the view of the beacon is no longer obscured” to open more options on how to handle the tree. This motion was seconded by Hendrickson who amended the motion adding that if this is not a viable option, staff will look into moving the beacon. Brown will need to go before the tree commission to have the tree looked at. DeBoer reiterated that this is a safety issue and that it needs to be handled by either altering the tree or moving the beacon. Skillman if the beacon is moved to where the weather station is there could be other problems that arise for either of the systems. Action: Motion was voted and passed unanimously. 4. NEW BUSINESS: A. Security Signage Progress Update DeBoer brought two options for signage wording: Option A: Anyone Receiving Income on Airport Grounds Either Barter or Cash Must be Registered with the FBO Skinner Aviation Or Option B: Register With FBO Skinner Aviation if Receiving Income Either by Barter or Cash for any Activities on the Airport Grounds Commission discussed the wording and the cost. Brown estimated the sign to cost between $100 - $500. Commission discussed distinguishing a category of workers at the airport that would be exempt from registering as an MSP like a person who would be sweeping out hangars for $20 or an opportunity of that nature. Brown contended that this was a touchy situation and one that Skinner will need to monitor. Doing exceptions like this would be detrimental to the standards that were adopted. Action: Zeve motioned to accept Option B. Hendrickson seconded the motion passed unanimously. B. Sky Research Sign Proposal Request to Planning Commission liked the plan sent in by Sky. This addition to the fronting sign could be the first of other requests. Sky is just waiting for approval from Planning. 5. AIRPORT MANAGER REPORT/FBO REPORT/AIRPORT ASSOCIATION: A. Status of Airport, Financial Report, Review of Safety Reports Skinner was absent. Report will be given next month. 6. OTHER: A. Skinner Lease Renewal & T-Hangar RFP Brown asked the commission to start considering the direction of the Fixed Base Operator lease as it is coming up for renewal in February. There are two items Brown would like input on: 1) how many lease renewals should Skinner be granted, and; 2) Skinner has asked for permission to be a sole source bidder for the T-hangars. Skinner is welcome to bid with other bidders. Brown had expected to send the T-hangar construction out for competitive bid. But even within that there would need to be criteria set for scoring the bids. Some options would be to look at the payback, ground lease options or other items that would offer the best financial gain. Proposers will have consideration with the term or the lease, a percentage of income that would go toward the City. DeBoer felt the hangars should be turned over to the City immediately. The current lease is not set for a lessee who is making a profit. The lease will need to be altered. Commission supported doing a 17cent lease with a percentage of gross income for 20-25 years. Leave the lease term open for bidders to shorten the term or the percentage of the rent revenue. With a 17 cent lease the FBO will make 25% of the income made off the lease. Zeve stated that we want the hangars to be built and if there is not a great deal for the builder why bother. We need to get these hangars built. They are in great need. Brown said the other option would be for the City to build and operate the hangars. There would need to be negotiations with Skinner Aviation for the administration of the hangars. Zeve clarified that Skinner was still able to build in the adjacent to his maintenance hangar, yes and this is his option. Rostykus supported the idea of having the City putting out an RFP. The benefit of having the hangars reverted would be to save having to pay property taxes. One option will reflect more money up front while the other will pay more money later. It makes it more clearly defined with and end and beginning. Staff will need to pencil out the percentage they can change what they want but the City will need to get some percentage. Zeve countered that the owner deserves to make money too. This may not be worth the effort for most builders. The hangar owners will set their own rental rates and if they set a rate to high to compensate for the percentage owed to the City it will reflect in their occupancy rate. Discussion ensued regarding whether to offer the new hangars to existing hangar renters. DeBoer suggested giving first option to current closed hangar occupants. Zeve felt this was favoring these people who already have suitable hangars, it would be better to do a lottery for the new hangars. This could be added to the RFP for the builder to decide. Brown is hoping to have the RFP advertised by February. It was decided that a subcommittee would be formed to meet and discuss the Skinner lease. DeBoer, Rostykus and Zeve all agreed to be on the committee. They will need to look at modifying the lease or rewriting to include new conditions initiated by the new minimum standards as well as the responsibilities of the FBO with these new conditions. 9. NEXT MEETING DATE: January 14th, 2002, 10:00 AM Items to discuss include: § Skinner Lease Renewal ADJOURN Meeting adjourned at 11:45 AM