ASHLAND AIRPORT COMMISSION

MAY 1, 2007

MINUTES

MEMBERS PRESENT:              RICHARD HENDRICKSON, TOM BRADLEY, LINCOLN ZEVE, BILL SKILLMAN, ALAN DEBOER, RUSS SILBIGER, GOA LOBAUGH

STAFF:            DAWN LAMB

MEMBERS ABSENT:  BOB SKINNER, PAUL WESTERMAN

Visitors:  Ben Lindner

CALL TO ORDER:                  9:30 AM

APPROVAL OF MINUTES:    April 3, 2007, minutes approved as written.

Public Forum:

OLD BUSINESS:

A.                 Tree Trimming RFQ Results

Hooper Tree Service has begun working on the trees.  There has been one concerned citizen through the process.  Staff has worked to accommodate their issues.  Hooper realizes the need for an expeditious project and has been working to complete the trimming as soon as possible.

B.                 Burl Brim Development

The planning commission will be hearing the application tonight from Krippaheane.  The commissioner are asked to attend to answer any questions the commission may have on the variances.  Skillman and DeBoer will plan on attending. 

Discussion ensued regarding the proximity of the helicopter to the taxiway.  Hendrickson felt the Brim staff had been very gracious in considering the other operators on the field.  Skillman asked that the operators be reminded to leave adequate space on the taxiway.

C.         Subcommittee Assignments

Draft lease has been forwarded to Lamb for continuation.

Draft Zoning Ordinance -   Lamb continued to work on a draft document.

NEW BUSINESS:       

A.                 Rental Rates

The budget preparation is complete and the proposed budget is printed.  The airport is under the public works budget and will be presented at that time.  Lamb will include the proposed budget for the airport in the next packet.  The central service fee is our highest cost.  Silbiger commented that the central service fees are being reviewed to see if there is a way to have a more direct correlation per department.  The cost now is assigned a calculated number by the Finance Department.  Lamb will see if the airport is included in the facilities plan.  Zeve asked if the Commission is doing a reasonable job at attaining a more profitable airport.  Some of the revenue is under our control and some isn’t. 

The rental rates are up for review.  The Commission needs to decide on rates for the upcoming year.  Lamb has provided a sheet showing the income and the expenses for the airport to help the Commission decide on increases for revenue.  Lamb suggested a $5.00 increase for the rental rates.  Bradley suggested tyring a percentage increase.  The percentage increase that corresponds with the CPI increase equals just over $4.00 and when rounded up would still be $5.00.  Skillman had heard some complaints that the fees were too high compared to other airports.  The ODA survey does put Ashland at the higher end, but the other airports are not that far from our rates.  Discussion ensued about whether or not to raise the daily tie down rates.  It was discussed that other airports waive the tie down if fuel is purchased.  Commission reviewed the income from the tie downs over the past year.  The commission agreed that there was really no need to waive the fee.  The tariff rate had not been adjusted in years and the commission discussed a way to increase the rate.  Bender offered to ask what the tariff rate charged at the Jackson County airport.  The Ashland Airport should match their fee.

Action:  Lobaugh moved to accept staff recommendation of a five dollar increase to the open hangars, closed hangars, contemporary hangars; increase of the monthly tie downs to $40.00/small and $50.00/large and for the daily tie downs to remain the same.  The tariff rate will be adjusted to match the Jackson County Airport fee.  Seconded by Skillman.  The vote was passed, DeBoer abstained for potential conflict of interest.

B.         FAM Grant Application -

The next FAM grant application is coming due and staff has asked for recommendations for the money.  The FAM grant is a small $25,000 grant which can be applied to soft match for larger grants or used on safety needs at the airport.  It can not be used for any project that will produce revenue.  Lamb reviewed the capital improvements list in the master plan and identified electronic gate installation was listed and was within the cost. 

Some ideas that were brought up included fencing, security cameras, paving the gravel areas near the ends of the hangars.  The electronics would increase the utility rates. 

C.                  Airport Day – Hendrickson has contacted the EAA and they will be supplying the pancake breakfast if the date is available for them. 

D.                 Ben Lindner Development Proposal – Lindner asked to address the commission on the forward motion of his proposal to build a hangar development at the airfield.  Zeve commented that during discussion with the Commission there was concern over allowing a complete buildout of the airfield, but the reality of the need for the hangars and for the improvements to happen in a more timely manner than the City could financially support seemed beneficial.  There needs to be control over development and there was concern about how to ensure that both parties would be prosperous. 

Lindner said that other airports have been doing this type of growth because it can be done so much more expeditiously then a municipality can accomplish.  Lindner is more than willing to discuss the development and process.  The proposal wouldn’t be for the entire site development.  Lindner is calculating the amount of hangars that would be necessary to make the development profitable.  The possibility of phasing the growth is a strong possibility.  The phasing would offer a way to gauge subsequent phasing based on performance.  The airport has need for facilities and after installation there will be ability to meet the need of other hangar development.  The infrastructure installation is a very large investment for a private developer and there needs to be a guarantee that there will be a way to recoup the initial investment.  With the support of the commission the development could be started and nearly complete within a year’s time where for the City to install the infrastructure could take seven to eight years.  Lindner intends to follow the Master Plan development because it is logical and already approved by the FAA.  There is no need to reinvent the wheel.  His interest in Ashland was spurred because of the already accepted plan, engineering and demand.  Any work that takes place will need inspection and approval so that should not be a problem. 

The expectation is to lease the piece of land and develop it.  Lindner will need to amortize the cost of the infrastructure installation to project the extent of the development.  DeBoer suggested that Lindner present a proposal showing the infrastructure and showing prospective income for the airport.  DeBoer would like to see this so that the Commission could make a decision.  The Commission would be happy with just a rough drawing of where the hangars and type would go.  Lindner did not want to spend too much time and energy until the Commission had given some preliminary support. 

Zeve commented that future develop from grant is coming down the line eventually.  Zeve asked for the rough drawings to be put together and we can talk about the comfort levels and see what we can talk about.  We would set up things to protect the development and a performance measure could be put in place.  The growth of the airport will happen by private developers or by the City and having a comfort level on how that happens will need to be worked out.  Skillman agreed that he does not want one developer to have the entire field developed.  Zeve was confident that there will be additional development available to other interested parties.  Brim still wants to do his additional development.  Lindner told the commission that he has no interest in monopolizing the airport development.  He would like to encourage some competition.  Lindner encouraged the commission to talk to some of the other airports that he has worked with for references.  The idea is not new.  Bend has leased a 40 acre parcel to a developer to build hangars and no other areas are now available.  Lindner sees this as a future problem for the airport at Bend.  Redmond is doing leases for individual building footprints.  Redmond is also developing an area with a convention center and a hotel.  There is a precedent and procedure for developing large tracts of land at an airport.  Redmond leases include the footprint and the tarmac while the Prinville airport only counts the footprint of the building.  Lindner is guessing that when he does the numbers he will need to have about twenty hangars, but that will depend on the type of hangars too. 

Lindner will bring in a proposal for the next meeting and then the attorney will be brought in to discuss the draft leases. 

E.         SuperAWOS Field Trip – Lamb has received notice that the Grants Pass airport is in the process of installing the SuperAWOS system for their airport.  The system is supposed to be up and running in the next two weeks.  The commission should take advantage of the opportunity to see the SuperAWOS in action before we officially purchase the system later in the summer.

AIRPORT MANAGER REPORT/FBO REPORT/AIRPORT ASSOCIATION:

A.                 Status of Airport, Financial Report, Review of Safety Reports

Skinner did not attend the meeting.  

B.                 Maintenance Updates –  Parking lot replacement is scheduled for after July 1^st.  The project will be completed by the street division and will be completed with the new parking layout.

OTHER:

Is the July 3^rd meeting date ok for the majority of the commission, yes, meeting time will remain the same.

NEXT MEETING DATE:  June 5, 2007, 9:30 AM

ADJOURN:  Meeting adjourned at 11:15 AM