07/13/2010

Meeting Minutes for:
Monthly Board Meeting
Yuma International Airport, Conference Room
Tuesday, July 13, 2010 at 04:00 PM

Call to Order:
CALL TO ORDER

The Yuma County Airport Authority, Inc. (YCAA) Regular Board of the Board of Directors was called to order at 4:00 PM on Jul 13, 2010 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was William Gresser, President.

YCAA MEMBERS PRESENT WERE:

William Gresser President
Rob Ingold 1st Vice President
Albert Gardner 2nd Vice President
Ed Whitehead Treasurer
Dr. Brian Cullen Secretary
Robert McLendon, Director
James Carruthers, Director attended electronically
Mike Taylor, Director
Jesse Haines, Director
Mikel Smith, Director
Larry Gould, Director

ALSO PRESENT WERE:

Mr. Williams, Airport Director
Gladys Wiggins, Airport Operations Director
Lynn Hall, Director of Maintenance
Gen Grosse, Corporate Account Manager
Andrea Lopez, Executive Assistant
Gabby Reyes, Office manager
Maria Gonzales, Bookkeeper
Lt. Col. Workman, Military Liaison
Greg McShane, MCAS Operations Officer
Wayne Benesch, Airport Counsel
Don Lloyd, Million Air
Chris Freeman, Million Air
Steve Mohrer, Million Air
Doug Pearson, 1st Bank Yuma
Julie Engle, GYEDC
Gill Garza, Garza Aviation
Joe Gamez, Garza Aviation
Brittney Collwell, Garza Aviation
Mitchell Dunn, Pilot
Mark Brooks
Todd Mattern, Pilot
Ron Rice
Ken Scott, EAA – Pilot
Ray Williams
Hank Kras, Air Petro
Doug Schmidt, GA
John Ewing, Dallas Aviation
Will Crittenden, T & T
Elizabeth North
Chris Alberti
Mark Helley, Tenant
J A Deere

APPROVAL OF MINUTES

The President called for a motion to approve the minutes of the Special Board Meeting of June 17, 2010. Mr. Gardner so moved. Mr. Haines seconded the motion. Motion passed unanimously.

CONSENT AGENDA

1) Discussion and Possible Action to authorize the YCAA President to sign a three year engagement letter with Walker and Armstrong for $51,000 to provide auditing services.

Six firms responded to our solicitation. A selection panel met and reviewed the six packages. Each panel member independently reached the same first choice. After the selection committee reached a decision, the Chief Financial Officer was consulted on the choice and no reservations were expressed.

Walker & Armstrong is an experienced and qualified firm, licensed to accomplish the desired work. W&A seemed to strike the right note underscoring their previous selection. The firm is medium sized, based in Phoenix and very well experienced in government audits. Their price was the most competitive at $51,000.

2) Discussion and Possible Action to authorize the YCAA president to accept the FY 2010 FAA AIP grant that may range between $1M and $3M to rehab the airport's GA apron areas.

The grant is expected to cover the Federal Share of four aspects of the project: 1) Design of the Apron Rehabilitation, 2) the Engineering oversight of the construction, 3) the actual construction of the apron rehabilitation and, 4) the necessary quality assurance testing necessary during the construction process to ensure we meet FAA construction guidelines.

REGULAR AGENDA

1) Monthly report by Chief Financial Officer on current financial status and recent activities

Mr. Williams briefed that Overall, revenues and expenses for are within acceptable parameters as compared to our budget. He referred members to their financial packages. There were no questions.

2) Discussion and Possible Action to work with Million Air to ensure that all previous agreements between CareFlight and the local GA community are understood and agreed to by Million Air.

Mr. Williams explained that there is a feeling by some in the GA community that Million Air is not adhering to the agreements that were made in the negotiation sessions with the Board of Directors. He explained that Million Air had promised to keep the same markup on the cost of fuel that CareFlight had, and this is what they have done.

Mr. Williams gave a brief presentation on how retail fuel prices are set; that it is composed of wholesale cost of fuel, which goes up and down, and the FBO markup. Essentially a "spot market" wholesale price is established by AV Fuel and the other distributers on a regional basis. Every Tuesday, Million Air receives these price updates and sets the price for all of their FBOs by adding their fixed "markup" to the wholesale cost. At each Million Air location a series of discounts are applied for various customer groups such as the growers, locally based aircraft, companies who pre-buy their fuel, and so on. This is a common practice in the FBO industry. In Yuma, the amount of those standard discounts had already been established by CareFlight. Million Air had promised the community that he would keep the exact same markup price and the exact same discount amounts for the same user groups.

Mr. Williams explained the increase in fuel price that the pilots had witnessed was not because Million Air had raised their markup or decreased their discounts; the increase was the result of a change in the wholesale cost of fuel. Even though the price had gone up the first week that Million Air had been operating in Yuma, in had since gone back down. Because of the reduction in wholesale cost changes, the cost for Jet-A is exactly the same today as it was when CareFlight stopped FBO operations. Mr. Williams illustrated the specific fuel discounts that CareFlight had offered and showed that Million Air offered the exact same discounts today to the same groups. In fact, Million Air had increased the discount on Self Service, so it was an even better deal today than with CareFlight. Mr. Gardner said that many members of the GA community felt the Airport Board had let them down. Their understanding was that Million Air would not raise the fuel price "for the foreseeable future" and other agreements such as pre buy for fuel would remain the same. Because fuel prices increased immediately, much of the GA community were very critical of the Airport Board and of Million Air. There followed a lengthy discussion by the Board on the Million Air lease agreement and the price of fuel.

Mr. Gresser solicited potential solutions to address the evident discontent. Mr. McLendon suggested that since Mr. Freeman was here and since several GA Community members were here, they should have a discussion on these topics because open communication usually solved these types of issues. There was encouragement from the Board to have that dialog as soon as the Board meeting ended.

3) Introduction of a proposal by Mr. Gil Garza and Joe Gamez to open a new FBO.

Mr. Williams briefed that Mr. Garza and Mr. Gamez have requested that the Board consider their desire to open a new fuel sales FBO.

It was decided this item will be taken to the Strategy Committee for review. The Strategy Meeting is scheduled for June 22, 2010, 11:00AM

4) Discussion and Possible Action to Authorize the YCAA President to sign the Notification of Contract Award to BTZ Inc., DBA Zellers Paving & Excavation in the amount of $2,103,533 for the rehabilitation of the GA apron areas on Yuma International Airport, to sign an Engineering contract with NEI in the amount of $69,725 for construction oversight, to sign a Engineering services contract with GCE, Inc. in the amount of $70,608 for survey and testing, and to authorize the Airport Director to sign an all associated documents for execution of the contracts contingent upon acceptance by the Airport Authority of the FY 2010 Grant Award.

Mr. Williams briefed that the Rehabilitation contract was advertised on June 18, 20, and 29. The bid advertisement was included with the Board's background packages. A pre bid conference was held on June 30 at 10:00 AM in the Airport conference room followed by a tour of the Airport by all participating contractors.

5) Discussion and update regarding current construction projects, associated contracts, grant status, general aviation, marketing efforts, conferences and meetings and items of interest with the city and county or other federal or state agencies.

Mr. Williams gave a general update on current grant and construction projects plus other pertinent activities by the airport staff.

ADOT Visit: Mr. Williams said that ADOT will be visiting on July 21. Our priorities for ADOT funding are the DCC Apron Phase 2 and Rolle Field Runway Rehab.

Military Comfort Center: Mr. Williams briefed that the Military Comfort Center is now open. Orientation took place on Wednesday, July 7. The turnout of volunteers was more than expected.

MILITARY LIAISON

There was no comment at this time.

CALL TO THE PUBLIC

Mr. Chris Alberti stated that he checks fuel prices every Tuesday and quoted the previous week's fuel price. He would like to see the Million Air business plan and the CareFlight lease. He looked online. He heard that CareFlight is paying $700.00 a month in rent. He would like to know how the Airport can make money that way. He stated that General Aviation is very upset and feel let down.

Mr. Ken Scott said that he dittoed Mr. Alberti. Mr. Scott and Mr. Alberti feel let down. Mr. Scott said it was wrong of the Board of Directors to always hold their meetings unannounced and that he never heard about the Airport Meetings, and that they are not posted on the website.

Mr. Ray Williams former Board Member stated that he has tried hard not to be a warrior to the Board. The fact is in the past there was frustration from the General Aviation community not being able to communicate with the Airport Board and Staff. He believes Mr. Freeman’s offer to sell 100LL self serve at cost for one year is wonderful thing.

Mr. Todd Mattern said he flies all over and that we had the best FBO around. He understands that Million Air cannot be everywhere at once.

Mr. Doug Schmidt explained that he flies everywhere. Prices on fuel range from $3.50 to $5.43 depending on location. He believes everyone should give Million Air a chance. When he sees the discounts they are giving he is satisfied. FBO’s come and go if they fail it can be addressed if and when the time comes. Million Air has always given him first class service.

Mr. Chris Freeman explained that every Tuesday fuel prices change. He further explained that CareFlight had not changed their price since April. When they took over, the fuel prices did go up that much from April. He committed to selling 100LL self serve at cost for one year. Tomorrow morning the cost of self serve 100LL will be at $4.06.

Mr. Mitchell Dunn stated that he is not upset about the fuel prices. He feels that CareFlight was pressured to leave the FBO business. He is very upset about the business analysis for Gill and Joe. He felt it was very negative. He referred to page ten. It warned that Gill and Joe did not have a viable plan against Million Air.

ACTION

Mr. McLendon made a motion to authorize the YCAA President to sign a three year engagement letter with Walker and Armstrong for $51,000 to provide auditing services. Mr. Smith seconded the motion. The vote was unanimous.

The vote for the fencing contract was tabled.

Mr. McLendon made a motion to authorize the YCAA president to accept the FY 2010 FAA AIP grant of approximately $2.3M to rehab the airport's GA apron areas. Mr. Smith seconded the motion. The vote was unanimous.

Mr. Whitehead made a motion to Authorize the YCAA President to sign the Notification of Contract Award to BTZ Inc., DBA Zellers Paving & Excavation in the amount of $2,103,533 for the rehabilitation of the GA apron areas on Yuma International Airport, to sign an Engineering contract with NEI in the amount of $69,725 for construction oversight, to sign a Engineering services contract with GCE, Inc. in the amount of $70,608 for survey and testing, and to authorize the Airport Director to sign an all associated documents for execution of the contracts contingent upon acceptance by the Airport Authority of the FY 2010 Grant Award. Mr. Smith seconded the motion. The vote was unanimous.

Mr. Gardner made a motion to Authorize the YCAA President to sign an Engineering contract with NEI in the amount of $69,725 for construction oversight, and to authorize the Airport Director to sign an all associated documents for execution of the contracts contingent upon acceptance by the Airport Authority of the FY 2010 Grant Award. Mr. Smith seconded the motion. The vote was unanimous.

Mr. Gardner made a motion to Authorize the YCAA President to sign an Engineering services contract with GCE, Inc. in the amount of $70,608 for survey and testing, and to authorize the Airport Director to sign an all associated documents for execution of the contracts contingent upon acceptance by the Airport Authority of the FY 2010 Grant Award. Mr. Ingold seconded the motion. The vote was unanimous.

ADJOURNMENT

There being no further business before the Board, Mr. Gould made a motion to adjourn Mr. Smith seconded the motion. The vote was unanimous. The meeting adjourned at 5:02 PM.



// Approved //
Craig Williams
Airport Director
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