06/17/2010

Meeting Minutes for:
Special Board of Directors Meeting
Yuma International Airport, Conference Room
Thursday, June 17, 2010 at 09:00 AM

Call to Order:
The Yuma County Airport Authority, Inc. (YCAA) Special of the Board of Directors Meeting was called to order at 9:00 AM on Jun 17, 2010 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer wasWilliam Gresser, President.

YCAA MEMBERS PRESENT WERE:
William Gresser President
Rob Ingold 1st Vice President
Albert Gardner 2nd Vice President
Ed Whitehead Treasurer
Harry Hengl, Director
James Carruthers, Director attended electronically
Jeanine Rhea, Director
Mike Taylor, Director
Jesse Haines, Director
Mikel Smith, Director
Larry Gould, Director

ALSO PRESENT WERE:
Mr. Williams, Airport Director
Gerald Hinkle, Jr., Chief Financial Officer
Gladys Wiggins, Airport Operations Director
Lynn Hall, Director of Maintenance
Gen Grosse, Corporate Account Manager
Andrea Lopez, Executive Assistant
Lt. Col. Workman, Military Liaison
Greg McShane, MCAS Operations Officer
Wayne Benesch, Airport Counsel
Gill Garza, Garza Aviation
Bob Schmidt, Wings Inc.
Dave Claborn, Tennant
Trevor Buckelew, Tennant
Don Loyd, Million Air
Dale Borgman, EAA/AOPA
Chris Alberti, AOPA/EAA
Joe Gamez, GA
Todd Mattern, GA
Alan Horowitch, GA
John Ewing, Dallas Aviation
Mack Brooks, GA
Hal Dunn, Corp Aviation
Carvin Bryant, Wings
Mark Smith

APPROVAL OF MINUTES

The President called for a motion to approve the minutes of the Previous Board Meeting. Mr. Hengl so moved. Mr. Gardner seconded the motion. Motion passed unanimously.

REGULAR AGENDA

1) Discussion and Possible Action to authorize the YCAA President to sign Amendment 1 to the Million Air lease changing the property description to include the Yuma Pilot Center for $7,000 per month, to temporarily reduce the lease rental for the DCC property to $1,600, to adjust the lease term, and related changes as negotiated.

Mr. Williams briefed that the Board approved Amendment 1 to the Million Air lease on June 8, 2010. For compliance with the Open Meeting Law, it is necessary to vote again on that decision.

Mr. Williams provided a history of the Board's decision three years ago to focus on improving service to the GA community and our effort to find a premier FBO to meet that requirement.

Although the airport is the landlord of the airport's property, it has little to do with business deals between our tenant business owners. In the past three years, our various FBO's have been sold four times and one has gone out of business; a reflection of the current consolidation in this very competitive industry.

The Million Air FBO operator, Freeman Holdings, Inc., approached us in December of last year with a proposal to open a franchise at Yuma International Airport. This was an interesting and difficult choice because the Airport had just gone through a 12-month ordeal with Lux Air, which left the airport in a deep hole financially, and with a single FBO providing fuel sales on the airport. Everyone wondered if this was going to be a repeat of that misadventure.

Another question was how Million Air would affect CareFlight FBO, a proven partner who stood with us through some tough times.

The airport's goal was for everyone to come out a winner. Initially it seemed only natural that CareFlight would concentrate on GA and the airlines, and that Million Air would grow our military fuel sales. In the end, the "best of all worlds" solution did not happen. CareFlight decided to sell their FBO operation to Million Air and concentrate on their core air ambulance business.

This was not a bad thing for the airport, but the final solution involved having another "new" FBO as the sole provider of fuel. This was a bitter pill for a weary GA community, who had lived through eighteen demanding months of ever-changing corporate identities with an active rumor mill of misleading information.

The final question is, what now? What did the airport buy and what agreements did we make in getting this new FBO at our airport? Here's the answer.

To protect the airport from a cut-rate fuel provider the Board of Directors last March adopted a two-tier system for potential future FBO providers. Here's how it works.

The two-tier system is based on providing different fuel flowage rates for different investments in the airport. Here is the breakdown:

Tier One FBO Fuel Flowage Fees:
a: Jet-A $0.22 / gallon
b: Av Gas $0.22 / gallon
c: Signatory Air Carrier Aircraft $0.15 / gallon
d: Military Contract $0.22 / gallon"

Tier Two FBO Fuel Flowage Fees
a: General Aviation Aircraft $0.22 / gallon
b: Non-Signatory Air Carrier Aircraft $0.22 / gallon
c: Signatory Air Carrier Aircraft $0.10 / gallon
d: Military Contract $0.10 / gallon

The bottom line is that all FBO's pay the same fuel flowage fees to service all of our General Aviation aircraft, whether Av Gas or Jet-A. There is a five-cent difference in the airline fee. What does this mean? In the real world, it means very little. Both of our Airlines are partial to AV Fuel and have contracts with AV Fuel. The recent move to Chevron was not to their liking. As it happens, Million Air is an AV Fuel distributers so it is unlikely that anyone can dislodge Million Air from their new position of airline fuel supplier. This would have been true of any new FBO who came to Yuma and teamed with AV Fuel.

The big difference between the two tiers is the Military Contract fuel flow rate. This was the only real negotiation point in the lease with Million Air. It was an important concession, just as important for the airport as it is for Million Air. As an airport, it is important to us to have well funded suppliers going after our important military fuel customers.

At the entry level, a new fuel provider would need a business plan requiring a $3 million investment over an unspecified period, reasonably up to five years. This would qualify a new FBO to qualify for a fuel sales Fixed Base Operator airport lease and to start selling fuel to the GA Community or to the Airlines. At that level, the FBO would be competing with Million Air on an essentially even footing.

Quite of bit of alarm has been felt by the GA community over the presence of Million Air; and it is difficult to understand why. An often repeated, but unfounded fear is that Million Air is going to increase the price of fuel for all our local pilots. Not true. Million Air has made the same commitment that CareFlight made; they are not going to change the price of fuel in the immediate future.

What does that mean? Is that a trick statement? Not at all. The Jet Fuel industry changes prices on a global scale. The price goes up; the price goes down, all across the nation. No matter who our FBO is, those prices will be reflected in the local cost of fuel, but that has nothing to do with CareFlight, Million Air or any FBO on any airport. Million Air has promised that they will keep the exact same markup on fuel that CareFlight had. Also, local pilots who want self-service fuel will have it, and at lower rates than in the past. Our corporate pilots who want to pre-purchase fuel can do so, with the same uplift fee charged by CareFlight.

The bottom line is that local pilots will be able to purchase fuel for the same price as in the past, but they are going to get a lot more for their money than ever before. That’s because Million Air is committed to providing their premier class of service to the entire GA community. Every single GA pilot is going to get the first class treatment that Million Air is famous for.

A particular highlight will be the extra investment Million Air will put into the Yuma Pilot Center; they will more than double the amount we had planned. In a previous meeting, staff briefed the Board of Directors that budget constraints were preventing us from making it a first class Terminal; but we would do the best we could. We could afford only metal siding instead of stucco, carpet instead of tiles, Formica instead of granite. We were going to put in a food service area by doing the work ourselves on a shoestring budget. That's all changed. The Yuma Pilot Center will now feature the best of everything; stucco exteriors, solid surfaces, a deluxe restaurant area and much more. Our local aviators are the direct beneficiaries of our new FBO's world-class standards.

It's true; the last eighteen months have been difficult. But from here forward, life should be much better for our GA community. They're going to see a new FBO, a new FBO facility and an all-new airport with brand new asphalt, all through the GA area. The goals of improving the airport for General Aviation, which the Board of Directors established in April of 2007, will continue to be met as we move forward.

2) 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. (Presentation by Airport Director)

Mr. Williams informed the Board about the recent human smuggling incident that occurred at CareFlight. An aircraft owner hired local IP to transport “farm workers”. A CBP Agent witnessed the crew going thru CareFlight onto the Flightline. He became suspicious and investigated discovering human smuggling

Creation of GA Committee:

Mr. Williams explained that Mr. Gresser had appointed a GA Committee. On this committee will be Ed Whitehead, Albert Gardner and Dr. Brian Cullen. He informed the Board that there are three more spots available for this committee. The Charter of the GA committee will be to work with the GA community, find out what is important to them so the Board of Directors can work on making those wishes a reality.


MILITARY LIAISON

There was no comment at this time.

CALL TO THE PUBLIC

Mr. Chris Alberti stated that the two tier system with a 3 million dollar investment does not seem reasonable if another FBO does not have the DOD Contract.

Mr. Dave Claborn stated if every board member had to have a minimum investment on their business no one would have a business. He is in favor of having someone serve the military. His opinion is the standard is too high. He is concerned with the minimum standard.

Mr. Mark Smith explained that there are other ways to check fuel prices. He suggested that it be put it in the contract that they can’t raise the price. He further explained that DOD wants specific things and he is a hangar tenant and does not need the same things in an FBO. Our standards should be on type of building not on dollars.

Bob Schmitt had concerns with ramp fees on the facility.

Don Lloyd explained that Million Air has 0 ramp, 0 facility fees, 0 tow fees & 0 parking fees. He stated that there is no charge for normal GA services. He further explained that they are going to honor CareFlight pricing for the foreseeable future.

Trevor Buckelew simply stated that he would like that in writing.

ACTION

Mr. Hengl made a motion to Motion to authorize the YCAA President to sign Amendment 1 to the Million Air lease changing the property description to include the Yuma Pilot Center for $7,000 per month, to temporarily reduce the lease rental for the DCC property to $1,600, to adjust the lease term, and other related changes as negotiated. Mr. Gardner seconded the motion. The vote was unanimous.

ADJOURNMENT

There being no further business before the Board, Mr. Gould made a motion to adjourn Mr. Gardner seconded the motion. The vote was unanimous. The meeting adjourned at 10:09AM.



// Approved //
Craig Williams
Airport Director
Other Board Minutes

Group IconTue May 12, 2026 -- May Board
Person IconTue Apr 28, 2026 -- Public Relations Committee
Group IconTue Apr 14, 2026 -- April Board
Person IconWed Apr 8, 2026 -- Strategic Planning Committee
Person IconFri Apr 3, 2026 -- Finance Committee
Group IconTue Mar 10, 2026 -- March Board Meeting Minutes
Group IconTue Feb 10, 2026 -- February Board
Group IconTue Jan 13, 2026 -- January Board
Group IconTue Jan 13, 2026 -- Annual Board Meeting 2026
Group IconTue Dec 9, 2025 -- December Board
Group IconTue Nov 18, 2025 -- November Board
Person IconFri Nov 14, 2025 -- Finance Committee
Person IconThu Nov 13, 2025 -- Strategic Planning Committee
Group IconMon Nov 3, 2025 -- Special Board
Person IconFri Oct 31, 2025 -- Strategic Planning Committee
Person IconMon Oct 20, 2025 -- Elections and Personnel Committee
Group IconTue Oct 14, 2025 -- October Board
Group IconTue Sep 9, 2025 -- September Board
Person IconWed Sep 3, 2025 -- Public Relations Committee
Person IconWed Aug 27, 2025 -- Strategic Planning Committee
Person IconWed Aug 20, 2025 -- Executive Committee
Person IconMon Aug 18, 2025 -- Election and Personnel Committee
Group IconTue Aug 12, 2025 -- August Board
Person IconMon Jul 28, 2025 -- Finance Committee
Person IconWed Jul 16, 2025 -- Election and Personnel Committee
Group IconTue Jun 10, 2025 -- June Board
Person IconWed May 21, 2025 -- Finance Committee
Person IconTue May 20, 2025 -- Election and Personnel Committee
Group IconTue May 13, 2025 -- May Board
Person IconWed May 7, 2025 -- Election and Personnel Committee