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Meeting Minutes for:
Finance Committee Meeting
Yuma International Airport, Conference Room
Friday, February 19, 2016 at 09:34 AM
Call to Order:
The Yuma County Airport Authority, Inc. (YCAA) Finance Committee Meeting of the Board of the Board of Directors was called to order at 9:34AM on February 19, 2016 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Jonathan Matheus, Chairman.
YCAA FINANCE COMMITTEE MEMBERS PRESENT WERE:
Jonathan Matheus, Chairman
Stan Gourley, Member
Linda Morgan, Member
YCAA FINANCE COMMITTEE MEMBERS ABSENT WERE:
Dr. Brian Cullen, DMD, Director
ALSO PRESENT WERE:
Randall Nelson, Director
Gladys Wiggins, Airport Director
Gerald Hinkle, Jr., Chief Financial Officer
Jason Frost, Chief Technology Officer
Ken Scott, ASN Volunteer
CALL TO THE PUBLIC
There was no Public Comment.
REGULAR AGENDA
1) Discussion and Possible Recommendation for the Blue Air, LLC agreement regarding the short term lease extension for Joe Foss Suite 1 and West Hangar.
Blue Air, LLC has executed a short term agreement with the YCAA for the use of the West hangar of the Joe Foss facility from February through June of 2016. This agreement for a limited portion of the facility is intended to fill the gap created when the Department of Defense decided to extend the award date of the contract they are competing for. The YCAA has previously authorized the President to execute a long term agreement with Blue Air for the lease of one half of the facility. This lease originally presented with a commencement date of February 1, 2016 has been modified by staff to reflect a July 1, 2016 effective date and provided it to Blue Air for execution. All other elements of the agreement remain unchanged. The owners of Blue Air have indicated that they will enter into the modified agreement once the DOD contract is fully executed.
The Committee discussed the nature of the modified long term agreement and directed staff to move toward execution.
2) Discussion and Recommendation on the Big Adventure Hangars request for YCAA to consider a single lump sum payment for all ground rents due on the existing long term lease agreement set to expire on May 31, 2036.
Staff presented the Committee with the sum total of rents throughout the term of the existing agreement as well as amounts calculated by a local expert reflecting the present value of this rental revenue stream discounted at rates available to the YCAA through their local bank. The Committee discussed the reasons why YCAA would be interested in such an advance payoff and what airport management would do with the funds upon receipt. After a brief discussion related to the possibility of accepting a lump sum payment and negotiation parameters, Committee instructed staff to move forward and to prepare the payoff calculation at an opportunity cost of 4% and 5%.
3) Discussion and Possible Recommendation for the request to extend the Jacobs Engineering lease agreement for an additional five (5) months.
Jacobs Engineering who leases the hangar and office facility commonly referred to as the “NASA Hangar” is coming up on the expiration of the initial term of their agreement. The terms, as amended call for a termination date of April 30, 2016. Representatives of Jacobs Engineering have formally indicated a desire to exercise one of their available 12 month options, but with a twist. Jacobs is requesting that they be allowed to extend the term of their agreement an additional 17 months. Initial discussions indicate that this is the only modification they desire meaning rental rate increases effective May 2016 and May 2017 would remain as agreed to.
After a brief discussion about the modification to the existing terms, the Committee directed staff to move forward.
4) Discussion and Possible Recommendation to modification to the terms of the Skylancer Aviation, LLC short term lease agreement.
Skylancer will soon complete their initial one year commitment for the operation of an aircraft maintenance FBO in the Wrong Way Hangar. During discussions related to their consideration of exercising one of their available one year options, the Principals of Skylancer described their struggles to make the operation financial operation viable. Staff has received the attached formal written request for the YCAA to consider allowing them to exercise their option to under the stipulation that their lease rent not only forego the agreed upon 3% increase but instead a 20% decrease. After a discussion of the implications of providing such rent relief, the Committee instructed staff to move forward with a negotiated rental reduction for a limited period of twelve months.
5) Discussion and Possible Recommendation to assist with the future runway paving project at Somerton Airport.
The committee discussed the current understanding of the Somerton Airport paving proposal and background history which will be provided by the Airport Staff. The formal documents agreed to by the YCAA Board of Directors to work towards assisting with the paving of the Somerton Airport were provided to the committee for review.
After discussion related to the commitment made by the YCAA to pave Somerton Airport, the Committee agreed that the key factor to planning for this capital investment would be a cost opinion. Once the cost proposal is provided with the design and necessary improvements the YCAA will review the possible opportunities to assist with funding of the pavement. The Committee instructed staff to work with the management team of Somerton Airport toward getting a design completed this fiscal year.
6) Discussion and Possible Recommendation regarding the YCAA Loan #2004.
The Airport Staff provided an update on the projects approved by the Board with excess funds from the YCAA Loan 2004.
7) Discussion and Possible Recommendation regarding the current financial status, updates provided and recent activities.
The Airport Staff provided the financial statements and report from the February Board meeting. The Committee discussed how financial presentation and information were provided at the monthly meeting determining it was adequate. The Committee did ensure it was necessary for the Chairman and/or the President to review the finances prior to it being presented monthly. The Airport Director confirmed that the Board President has a meeting prior to the Board meeting in which the financials are reviewed in detail.
ADJOURNMENT
There being no further business before the Committee, the meeting adjourned at 11:43PM.
// Approved //
Jonathan Matheus
YCAA Treasurer; YCAA Treasurer and Finance Committee Chairman | |
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