ASHLAND AIRPORT COMMISSION

(Continuation of May 5, 2009 Meeting)

May 19, 2009

SUPPLEMENTAL MINUTES

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

STAFF: SCOTT FEURY

MEMBERS ABSENT:  LARRY GRAVES

Visitors:  Allan Sandler, Dave Risdale, Kirby Mills, Mr. and Mrs. Ross, Milton Bloombaum

CALL TO ORDER:                   9:30 AM

NEW BUSINESS:          

A.    Rate Policy: Zeve begins discussion with comment regarding the importance of developing the rate policy and methodology. Skinner wants to clarify the rate policy Commission is discussing is for new City owned hangars or all hangars. Commission clarifies that rate policy is for new City owned hangars.  Skillman states that he would like to see electric/hydro electric hangar doors added to the list of amenities. Wolske liked the three method analysis as shown before by staff because it does not limit calculations to one formula it takes a majority of formulas and analysis into account.  Discussion centers on a proposal of .005 for heat/light, .005 for insulation, .03 for a bathroom and .01 for office space netting a total with the shell rent for all improvements of .30 sq-ft/months. Skillman states that as far as the FAA is concerned the office space needs to be used for aviation related uses only. Scott mentions having a volume size factor and a condition factor associated with the rates. Someone with a hangar keeper size hangar should receive a volume discount like entities in the public sector. Discussion revolves around the amenity definitions. Commission likes the idea of only charging for heat, office space and a bathroom. They feel that if you have an improved heat system you would have insulation to make it cost effective and also improved lighting or ability to install improved lighting because of increased electrical capacity required to run heat system. Commission discusses specifics about office space.  Office space within the City of Ashland can rent up to 1.00 sq-ft. Commission discusses using .50 sq-ft because of the limiting factor of Aviation business at the Airport. The .50 sq-ft/month would only be applied to the actual square footage of office space within the hangar.  Skinner states that using the .50 for office space calculates out to the similar price schedule as discussed at last months meeting for total rent as compared with the new amenities of bathroom and heat. Discussion goes back to volume discount and condition factor. Commission mentions that 2400 sq-ft and over could possibly be the factor for rate reduction due to a volume discount. A hangar over 2400 sq-ft could be considered hangar keeper size. As far as the condition factor, it is stated in the lease documents that hangars shall be kept in good condition by tenants and the City of Ashland should receive the hangar back at the end of the term in the same condition it initially rented it. Commission would like to discuss condition factor at later date.  Discussion revolves around improved hangar doors and if they should be added as an amenity. Scott and Skillman believe and improved hangar door is an amenity and would pay more for an improved door. Questions revolve around who would maintain the improved hangar door. Electric hangar doors require a greater replacement cost that the City would bear if they failed while day to day operations and maintenance would be the responsibility of the tenants. DeBoer states that he would rather due the maintenance on an improved hangar door over the City because of the turnaround to get it repaired and it is not in the City’s expertise to fix hangar doors. Zeve also states that he does not want to see added maintenance responsibilities for the City regarding hangar doors. Scott states that an improved hangar door is still an amenity even if it requires more maintenance by the City or private tenant. DeBoer motions to bring reversionary hangars online at a .25 sq-ft/month “shell” rent and then add the amenities as required, .01 sq-ft/months for heat, .03 sq-ft/months for bathroom and .25 sq-ft/months for office space within hangar. The .25 sq-ft/month for office space would equate to the .50 sq-ft/month rate just for office space discussed earlier. The motion is 2^nd by Hendrickson. Vote: Silbiger abstains, Scott opposed, and vote passes. Fleury to add data into pricing sheet and forward to Commission for review. Pricing Policy data to go before the City Council at the July 17^th meeting for final approval. Fleury asks Commission if they would like to see the rate information he previously presented each spring to make a new rate determination and the Commission agrees that it would be beneficial to look over this updated information each spring when assessing new rates to forward to the City Council for approval.

NEXT MEETING DATE:  June 2, 9:30 AM

ADJOURN:  Meeting adjourned at 11:21