DeBoer commented that the construction looks great. Brown said that the construction was on schedule and on budget. There needs to be a cut off date established for the pre-paid leases so that Skinner Aviation will know how many unoccupied hangars will be available to the current renters and the waiting list. Commission agreed that August 15th will be a soon enough date. Staff will send a letter to all interested parties to have shown an interest in the pre-paid lease. Staff will also print out a map for Skinner to fill in with names of prospective tenants. Commission is hoping to avoid a lag in rents when they become open and the other hangars are vacant. It was suggested that Skinner require the first month's payment up front to avoid money flow problems. Skinner will solicit for eight hangars now since there is only two confirmed pre-paid. Keys and locks will need to be acquired for the hangars, staff will order them.

Action: Staff to order keys and locks, send letter to interested pre-paid persons with deadline date and make a diagram of the hangars for Skinner.

B.     ALP Master Plan Update-
There has been some conversations regarding the lack of effort by Century West. Brown has had several conversations with ODA about reassigning the contract. ODA will remain with Century West who has agreed to making the ALPs a priority. Brown will keep the Commission informed of the dates of upcoming meetings. Tentatively we are considering September or October for public meetings.

C.     AlP Update
LTM was the sole bidder to the construction portion. There bid was considerably higher than the engineering estimate. The FAA has accepted the bid, but Brown is considering rebidding next spring to see if we could increase the interest. The accepted bid excludes Bid Alternate A, which included more paving. Brown would prefer to have this extra paving done. The cost for this alternative is $150,000 and we are not sure where we will' get the money. Brown may be able to fund it through the annual grant monies if it is applicable. If we were denied the grant, the City would be out the $150,000. The Alternate B included the beacon and we did accept that cost. DeBoer opted for rebidding in the spring. The funding from the state for road construction has been spent for the next five to ten years. The work that has kept the contractors busy will be starting to wrap up and they will be searching for other work. Brown would probably rebid in December for a start date in the spring. One of the issues is that LTM has the only FAA approved asphalt in the immediate area. Another company would have to buy from LTM or start their own batch plant for the duration of the project.

Part of the expenses is the amount of testing that is required by the FAA. It drives the cost up, but is somewhat unavoidable.

Action: Staff will continue to negotiate with LTM and may decide to rebid the construction piece in the spring as long as it doesn't affect our Federal funding.

D.     Airport Association & Oregon Air Tour Event
Hamilton reported that everyone was fed pancakes and happiness abounded. The event was a huge success as the pilots all compared aircraft. Rostykus is working on flyers for the Airport Association. They are interested in doing an event for the opening of the T-hangars.

The new T-hangar rate needs to be set. There is a $5.00 utility charge that needs to be billed. There will need to be more research by staff on how to charge.
Skinner will not receive 25% of the utility charge. The rate was discussed in the beginning as $225 per month. DeBoer asked if we had surveyed around the valley for other hangar costs for comparison. The rate survey from ODA gives a fairly good representation and we are in the normal range. The small half hangars at each end of the hangars can be used by helicopters, do we want to rent them. Brown would like to keep one for storing City items for the airport, but the other could be rented if someone has a use. The fee should be comparable to the established T-hangar rates. Commission felt it could be considered a closed T-hangar.

For the exiting T-hangar rates, a sheet with proposed increases has been presented. The Commission agreed to increase the hangar costs by $5 but to leave the tie-down costs as they were. There will be no change to the tariff fees this year either.

There was discussion on the Mobile Service Provider fee. It is currently $100 and when you are a small company, that's a large expense. Skinner feels the real reason there aren't more applications for the MSPs is because of the insurance requirements. The insurance companies charge large amounts for the coverage we require and what we require is not unreasonable.

Inspections still need to be made of the hangars sometime in the near future to ensure compliance with the lease. Rostykus asked if staff would include the lease language in the next packet for discussion. The Fire Marshal will need to be included with the inspections. Skinner will send out a reminder in his mailing to the tenants that inspections will be up and coming.

Action:
Skillman moved to accept $225 with a $5 monthly utility fee. Second by Westerman. DeBoer will abstain because of potential conflict.

B.     Applied Technology Self-Service Pump Warranty
The initial warranty has expired and there are several options for new warranties. Depending on the cost, the degrees of coverage range from phone service up to replacement parts.

There are existing challenges with the system that need to be resolved. Applied Technology has agreed to work on these issues until they are completed at no cost. Skinner has not received this in writing, only verbally. The commission discussed the validity of service warranties. If nothing breaks then it is money spent, but if something does break they will usually pay for themselves.

Action:
Skinner will ask Applied Technology if they will do a 2 year warranty for $2,000 and report back to the commission in September. The cost will come out of the maintenance funds.

C.     TSA Recommendations
The Transportation Security Administration, US Department of Homeland Security has established an office in Medford. They visited the airport and gave Skinner a few recommendations on safety matters at the airport. No funding was mentioned. They made suggestions on signage, fencing and log in /log out sheets for transient flyers.

Action: Staff will look over the report and give a summary to the Commission.

Hamilton would like a chance to bring this up to the Association to see if they would be willing to help out, like volunteers to sweep or a donation of hot mix to pack the area down.