05/12/2015

Meeting Minutes for:
Finance Committee Meeting
Yuma International Airport, Conference Room
Tuesday, May 12, 2015 at 10:00 AM

    Call to Order:
    The Yuma County Airport Authority, Inc. (YCAA) Finance Committee of the Board of Directors was called to order at 10:00AM on 05/12/2015 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Stanley Gourley, Chairman.

    YCAA FINANCE COMMITTEE MEMBERS PRESENT WERE:
    Stan Gourley, 1st Vice President (Finance Committee Chairman)

    YCAA DIRECTORS IN ATTENDANCE WERE
    Ron Rice, President
    Randall Nelson, Director

    YCAA FINANCE COMMITTEE MEMBERS ABSENT WERE:
    Albert Gardner, 2nd Vice President
    Dr. Brian Cullen, DMD, Director

    ALSO PRESENT WERE:
    Gladys Wiggins, Director
    Gerald Hinkle, Jr., Chief Financial Officer
    Jason Frost, Chief Technology Officer
    Ken Scott, ASN Volunteer

    CALL TO THE PUBLIC

    There were no members of the public who wished to address the Committee.

    REGULAR AGENDA

    1) Finance Committee discussion and possible recommendation regarding the Closing of the Joe Foss Facility Construction Loan.

    The Committee discussed the terms of the existing Joe Foss hangar facility construction loan. Discussion ensued as to how the original amount financed exceeded construction costs to date and the process involved in closing the construction portion of the loan. Staff described how the previous direction from the committee to hold the remaining balance available for tenant improvements until a long term user was established had essentially ran its course. The airport staff briefed that the facility is currently being used by short term tenants who would benefit from completion of the improvements. Additionally, when showing the facility to tentative future tenants the facility appears unfinished.

    Staff presented to the committee during the discussion that the original loan proceeds were $2M and the remaining balance available was in excess of $583,000. Staff described the debt service requirements as stipulated in the loan documents and how the decision to expend the remaining balance of funds available would have no effect on the monthly debt service requirements.


    The Committee unanimously decided to recommend to the Board of Directors that the remaining balance of the loan proceeds be made expended to make the necessary improvements to the facility in addition to other capital improvements at the airport effectively closing out the construction loan.


    2) Finance Committee discussion and possible recommendation regarding investing in capital improvements authorized by the Strategic Planning Committee 1st Bank Yuma construction loan #2004.

    Staff provided a detailed brief to the Strategic Planning Committee (SPC) on April 21, 2015 proposing the use invest in completion of the development of the Joe Foss hangar facility as well as various capital improvements and equipment throughout the airport. The SPC recommended the following investments:

    Joe Foss Facility
    Final investment in technology, equipment and finishes in the amount of approximately $170,000.

    Repurpose the QAC Shop Building
    Invest in renovations necessary to transform the Quimby Aviation Center (QAC) from the YCAA vehicle and equipment maintenance shop to a rent car service center to be made available for lease.

    Staff discussed with the Finance Committee how an existing rent car agency located in the terminal building had requested a proposal for the rent car service center. Staff described the proposed terms, including specific business points under negotiation and the resulting return on the investment. Staff did point out that the project would not be initiated unless the concept was authorized by the Committee and the proposal was accepted by the proposed tenant. The estimated cost of this project, including costs to relocate the YCAA vehicle and equipment maintenance operation was presented at $32,000.

    Passenger Terminal and Fuel Farm Improvements
    Investments in renovations, equipment replacements and technology supported by the Strategic Planning Committee were discussed in detail totaling an estimated $165,000. Additionally, the Committee discussed investments in the fuel farm and to the facia of the passenger terminal estimated at $10,000 and $50,000 respectively

    The investments described were supported by the Strategic Planning Committee but the issue of funding was left to the Finance Committee. The Finance Committee unanimously decided to recommend to the Board of Directors the expenditure of excess loan proceeds from Note #2004 for the purposes described “Off-Bedget”, presuming that the concept was acceptable to 1st Bank Yuma and their participants holding the note.

    Connection the QAC to the Solar Array
    The Finance Committee discussed recommendations from staff that they consider utilizing excess loan proceeds from Note #2004 for an investment in improvements necessary to connect the Quimby Aviation Center (QAC) to the solar array via the passenger terminal building. This project was not previously addressed by the Strategic Planning Committee and therefore was addressed in great detail.

    Staff provided a presentation showing how the solar array currently and has since its inception, produced electricity far in excess of the needs of the passenger terminal building. This excess power is available for YCAA’s use but is currently sold to APS at a rate less than favorable causing a loss. Staff described the performance of the solar array and estimates of the financial benefits of connection the QAC to the system. Those benefits not only included a dramatic reduction in the cost to provide power to the QAC but also included the possibility of new revenues from the sale of power to other tenants of the building.

    The Finance Committee decided unanimously to recommend to the Board of Directors that staff move forward with the investment necessary to connect the QAC to the power generated by the solar array at a cost estimated to be $80,000. The Committee recommendation is to utilize remaining proceeds from Note #2004 as recommended and account for the project “Off-Budget” since the funding source is not part of our operational budget.


    3) Finance Committee discussion and possible recommendation regarding the budget presentation through March 2015.

    Staff provided an in depth review of the FY15 budget through March of 2015. Staff answered a number of questions and provided detail not commonly provided in regular monthly Board of Directors meetings.

    ADJOURNMENT

    There being no further business before the Committee adjourned at 12:25PM.



    // Approved //
    Stan Gourley
    Chairman Personnel Committee
    Other Board Minutes

    Group IconTue Apr 9, 2024 -- April Board
    Group IconTue Mar 12, 2024 -- March Board
    Group IconTue Feb 13, 2024 -- February Board
    Person IconThu Feb 8, 2024 -- Finance Committee Meeting Minutes
    Group IconTue Jan 9, 2024 -- January Board
    Group IconTue Jan 9, 2024 -- Annual Board Meeting 2024
    Group IconTue Dec 12, 2023 -- December Board
    Group IconTue Nov 14, 2023 -- November Board
    Person IconMon Oct 30, 2023 -- Strategic Planning Committee
    Person IconTue Oct 24, 2023 -- Executive Committee
    Group IconTue Oct 10, 2023 -- October Board
    Person IconMon Sep 18, 2023 -- Elections and Personnel Committee
    Group IconTue Sep 12, 2023 -- September Board
    Group IconMon Aug 28, 2023 -- Special Board
    Person IconThu Aug 17, 2023 -- Finance Committee
    Group IconTue Aug 8, 2023 -- August Board
    Person IconTue Aug 1, 2023 -- Elections and Personnel Committee
    Group IconTue Jun 13, 2023 -- June Board
    Person IconWed Jun 7, 2023 -- Strategic Planning Committee
    Group IconTue May 9, 2023 -- May Board
    Person IconFri May 5, 2023 -- Finance Committee
    Group IconTue Apr 11, 2023 -- April Board
    Person IconWed Apr 5, 2023 -- Strategic Planning Committee
    Group IconTue Mar 14, 2023 -- March Board
    Group IconTue Feb 14, 2023 -- February Board
    Person IconWed Feb 8, 2023 -- Finance Committee
    Person IconFri Jan 27, 2023 -- Finance Committee
    Person IconThu Jan 19, 2023 -- Strategic Planning Committee
    Group IconTue Jan 10, 2023 -- January Board
    Group IconTue Jan 10, 2023 -- Annual Board Meeting 2023