Agendas and Minutes

Airport Commission (View All)

Regular Minutes

Agenda
Tuesday, May 05, 2009

ASHLAND AIRPORT COMMISSION

May 5, 2009

 

MINUTES

 

MEMBERS PRESENT: LINCOLN ZEVE, DAVID WOLSKE, RICHARD HENDRICKSON, ALAN DEBOER, LARRY GRAVES, RUSS SILBIGER, TREG SCOTT

STAFF: SCOTT FEURY, MIKE FAUGHT, MEGAN THORTON

MEMBERS ABSENT: 

Visitors:  Allan Sandler, Alan Bender, Dave Risdale, Kirby Mills

CALL TO ORDER:                   9:33 AM

 

APPROVAL OF MINUTES: April 14th, Motion by Hendrickson for approval, second by Wolske, unanimous vote, minutes approved as written.

 

Additional Items: Website Comments (Zeve), CAP Hangar (Mills)

 

Public Forum: Allan Sandler speaks before Commission and gives background information regarding his hangar. He presents offer before City and Commission regarding a 5 year prepaid term lease for his hangar. Sandler would like two, Fiver year lease options with the first being prepaid for five years and the second being prepaid with one year installments with an increase via CPI-U for each additional year after the first five year term. Sandler also asks to post-pone bring the rate policy before the City Council until the July do to the fact that Sandler will be out of town and not able to attend.  Sandler also states that after the Commission recommends a rate policy and the City Council approves a final rate that if the rate is to high and he wishes to move then he will pay back rent on his lease for the time he stays at Ashland before moving to a new location. Sandler mentions that a commons accepted practice for valuation is to hire two appraisers and then average the value of both for an accepted rental value. Staff states that the cost of an appraisal at this point in time is not in the budget and would like to resolve the pricing policy in house with the use of comparable airport pricing. Sandler also asks staff about specific use of his hangar with regards to office space and current staff using the hangar. Staff to research and discuss with Sandler at appropriate time. Sandler asks about his first right of refusal and how it applies to the rate policy if it is set to high and he refuses the rental rate and then City is then unable to rent the hangar and must lower the price, does his right of first refusal still apply to then new established rent? Staff to research with legal

 

Mills states there has been no movement regarding CAP hangar after his email was sent to CAP Wing Commander. Mills to follow up with CAP and inform Commission of status at next meeting.

 

 

OLD BUSINESS:

A.    AIP Project: Fleury asks for a Commission member to assist in grading the RFPs for the new Airport Improvement Project. Graves had originally volunteered by has a time conflict with proposal bid opening date. Scott volunteers to grade RFPs and Zeve approves of Scott as a grader. Fleury to furnish Scott with all necessary materials to grade RFPs once they are opened May 18th.

NEW BUSINESS:          

A.    Pricing Policy: Fleury goes through the power point presentation of airport comparables, appraisal analysis and amenity additions. Presentation showed developed hangar rates at Bend, Medford, Roseburg, Grants Pass, Redding (both airports). Fleury states that Bend is a very comparable airport by size, amenities and location and that Medford can be seen as our direct competition for tenants. Fleury goes over break down of amenity analysis as created with the help of various appraisers information. Fleury also states that a primary goal of the Airport Commission is to maintain a rate, charge, and fee schedule that will guide the Airport toward the goal of financial self-sufficiency. Fleury and Faught also discuss the current state of the Airport budget and in plain and simple terms there is a projected revenue shortfall of approximately 7 thousand dollars by 2014. Commission begins discussion of rate schedule presented for review by City. Zeve states that it is important to maximize revenue while being fair and equitable to all tenants of the Airport. DeBoer states that setting the rate to high is the same as setting it to low when it comes to being fair and equitable. Sandler states that the current rate the FBO pays should be the equivalent rate of the reversionary hangars as it is an established rate. Scott states that we can not set a rate policy for all hangars based on a commercial FBO operational rate. Sandler asks about becoming an FBO and it is a plausible scenario as long as Sandler were to provide the minimum amount of services required by the FAA to become an FBO. Skinner states that it is ok to have multiple FBOs at the Airport as long as they all have a level playing field. Sandler also discuss the appraisal option and estimates that an appraisal would cost around 2000.00. The City and Commission re-iterate the financial state of the City and Airport currently and would like to set rate without spending money on an appraisal. Scott states that we can not get an appraisal each time a hangar reverts to City ownership. Wolske states that Commission should determine fair market value rate for hangar facilities without taking into account the existing Airport budget. Scott mentions that in regular leasing arena that lessor receives a discount for a larger type facility and thinks this should be a point of discussion. He also states that it is not practical to set the rate for larger hangars based on the rate of T-hangars. Wolske would like the rate policy to be in a zone that is close to market value without being to over or under priced. Hendrickson states that even if he may pay a little more he will not leave Ashland until he can no longer afford the plane and hangar and that is a choice many current pilots in Ashland believe in. Meeting running over time and Commission would like to have an additional meeting in two weeks to discuss rate policy further. This will give Commission time to ruminate over discussion and help to make a motion for rate policy recommendation to the City Council at a later date. Commission will discuss further the rate policy, amenity definitions, size price break point at supplemental meeting May 19th at 9:30 am in Siskiyou Room.

B.     Insurance requirements letter: Discuss at next meeting

C.    Brim Aviation: Discuss at next meeting

D.    Airport Commission Ordinance: Discuss at next meeting

 

 

AIRPORT MANAGER REPORT/FBO REPORT/AIRPORT ASSOCIATION:

A.              Status of Airport, Financial Report, Review of Safety Reports: No update do to time constraints. Will discuss at June 2nd meeting.

 

B.               Maintenance Updates No update do to time constraints. Will discuss at June 2nd meeting.

 

 

OTHER:

The meeting of the JC airport commission is the third Monday of the month at 12:00 PM.

 

NEXT MEETING DATE:  July 7, 9:30 AM

 

ADJOURN:  Meeting adjourned at 12:05

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