06/08/2017

Meeting Minutes for:
Strategic Planning Committee
Yuma International Airport, Conference Room
Thursday, June 08, 2017 at 11:59 AM

    Call to Order:
    The Yuma County Airport Authority, Inc. (YCAA) Strategic Planning Committee of the Board of Directors was called to order at 11:59AM on June 8, 2017 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Dean Hager, Chairman.

    YCAA STRATEGY COMMITTEE MEMBERS PRESENT WERE:
    Ronald Rice, President (via speakerphone)
    Stan Gourley, 1st Vice President
    Dean Hager, 2nd Vice President
    Russell Jones, Director (exited the meeting at 1:30PM)
    Albert Gardner, Director

    YCAA STRATEGY PLANNING COMMITTEE MEMBERS ABSENT WERE:
    None

    ALSO PRESENT WERE:
    Gladys Wiggins, Airport Director
    Gerald Hinkle, Jr., Chief Financial Officer
    Jason Frost, Chief Technology Officer
    Andrea Lopez, Executive Assistant
    Gen Grosse, Property/Community Relations
    Ken Scott, ASN Volunteer

    REGULAR AGENDA
    1) Strategic Planning Committee discussion and possible recommendation on the FY 2017 Airport Capital Improvement Program for Yuma International Airport and Rolle Airfield.

    Ms. Wiggins presented the FY 2018 Yuma International Airport Capital Improvement Plan (ACIP) to be submitted to the FAA and ADOT. She also briefed the committee on the ACIP Project list for FY 2019-2023, 10 year 2018-2028 ACIP Planning and FY 2019 Rolle Airfield ACIP to be submitted to ADOT.

    The consensus of the Committee was to recommend staff move forward with presenting the ACIP both the FAA and ADOT as required.

    2) Strategic Planning Committee discussion and possible recommendation on the engineer’s recommendation to accept the lowest qualified bidder for the Taxiway H1 Rehabilitation project and the Construction Administration cost as proposed by CEI.

    Ms. Wiggins described the project scope and the public bid process which culminated with the opening of construction bids on May 25, 2017. She described the bid results and presented the consultant’s recommendation that the YCAA accept award the construction contract to DPE Construction, Inc. for the base bid plus alternate #1 in the amount of $4,296,172, if the project is ultimately funded by the FAA.

    Ms. Wiggins then went over the design consultant CEI’s negotiated cost to provide construction oversight services. The addition of these services would increase the existing consultant contract by $379,100. In order to implement the additional scope of services to be provided, Committee was asked to consider Amendment #2 to the existing contract, if the project is ultimately funded by the FAA.

    Ms. Wiggins went on the describe to the committee that an application for project funding had been submitted to the FAA in the amount of $4.47M towards the total estimated cost of the project of $4,983,232 for the Rehabilitation of Taxiway H1. She went on to explain to the committee that in order to provide for the likely event that the FAA would provide a grant offer and before the next scheduled Board of Directors meeting, she would be seeking the authorization to accept the grant at the June meeting of the Board of Directors.

    Ms. Wiggins described the options available to the YCAA to cover the remaining 9% of elligible project costs. The YCAA could forgoe participation in the ADOT Aeronautical grant process utilizing available PFC funds previously authorized for the project or apply for 4.47% of matching funds from ADOT ($222,750). After a brief discussion about the ADOT’s recent struggle to provide funds previously granted to airports such as the YCAA; it was the recommendation of the committee that while avoiding ADOT’s grant program seems reasonable participation would support the overall process and is preferable.

    The overall consensus of the Committee was to recommend that the Board of Directors:
    · Accept the recommendation of DPE Construction, Inc as the lowest qualified bidder and offer them the contract, if the related FAA grant is ultimately funded.
    · Adopt Amendment #2 to our existing consultant contract to expand the scope of services to include construction oversight.
    · Provide the authorization necessary to accept FAA Grant AIP-37 upon receipt of a grant offer and apply for the related matching funds from ADOT.

    3) Strategic Planning Committee discussion and possible recommendation on the proposals submitted by Republic Parking and the YCAA Airport Staff for the Airport Parking Lot Management Systems Contract.

    Ms. Wiggins deferred to the YCAA’s CFO Junior Hinkle, who provided information to the committee related to the passenger terminal parking lot.

    Mr. Hinkle described the history of the parking concession agreement with Republic Parking System (RPS) and how it has generated revenues supporting concession payments to the YCAA. He reminded the committee members that YCAA had received proposals to extend our existing agreement with RPS, using the continued business model, none of which were favorable to either party. Rising costs of personnel had simply forced the application of an automated system. Mr. Hinkle described the direction received by the Finance Committee to request that RPS provide a proposal based upon an automated or “cashierless” business model and staff to investigate the possibility of doing the same, in house.

    Mr. Hinkle described in some detail the “cashierless” proposal provided RPS which based on the revenues projected, would provide a modest increase in concession payments to the YCAA. The RPS proposal included a number of kiosk based pay stations and a parking lot free of entrance and exit controls. He further described how accepting this proposal would keep the YCAA out of a new operation to manage and emphasized the professional abilities of RPS. The committee then discussed briefly elements of the RPS proposal that seemed unfavorable, including the possibility of leakage, the inability to provide parking related marketing incentives with RPS controlling the concession and inherent difficulties with parking validation.
    Following Mr. Hinkle’s presentation, Jason Front, the YCAA’s Chief Technology Officer provided a presentation on a fully automated system to be purchased, installed and managed by the YCAA, in house.

    Mr. Frost described to the committee a proposed state of the art automated digital based system with controls at both entrances and exits. He described the many features available with the installation of this system including the ability to keep the parking fee structure as it is today, the ability to provide marketing incentives in the form of reduced or free parking to identified parties. He described how the system would be constructed and the overall estimate cost of $350,000. After his presentation, the committee discussed the many features available with this system, the benefits of taking this operation in house and the many high tech aspects of the system, including the ability to use cell phone apps.

    Once again, Mr. Hinkle the YCAA’s Chief Financial Officer addressed the committee on how the cost to acquire and construct the system could be financed with existing capital reserves and the return on investment estimated at under five years. Mr. Hinkle also described projected revenues in excess of those proposed by RPS in the form of concession fees and how those excess revenues were calculated.

    The consensus of the Committee was to recommend moving forward with YCAA taking over the parking lot by investing in an automated solution with an estimated cost of $350,000 as an Off-Budget expenditure.

    ADJOURNMENT
    There being no further business before the Board the meeting adjourned at 1:37PM.



    // Approved //
    Dean Hager
    2nd Vice President; 2nd Vice President, Strategic Planning Committee Chairman
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