08/13/2019

Meeting Minutes for:
August Board Meeting
Yuma International Airport, Conference Room
Tuesday, August 13, 2019 at 04:02 PM


Call to Order:
The Yuma County Airport Authority, Inc. (YCAA) Regular Meeting of the Board of Directors was called to order at 4:02PM on August 13, 2019 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Ronald Rice, President.

YCAA DIRECTORS PRESENT WERE:
Ronald Rice, President
Linda Morgan, 2nd Vice President (joined the meeting at 4:08PM)
Eric Saltzer, Treasurer
Russell Jones, Secretary
Bill Craft, Director
Stanley Gourley, Director (attended the meeting telephonically)
Jonathan Matheus, Director
Randall Nelson, Director (joined the meeting at 4:35PM)

YCAA DIRECTORS ABSENT WERE:
Albert Gardner, 1st Vice President
Dr. Brian Cullen, DMD, Director
William Fox, Director

ALSO PRESENT WERE:
Gladys Brown, Airport Director
Gerald Hinkle, Jr., Chief Financial Officer
Andrea Lopez, Executive Assistant
Gabby Reyes, Human Resources/Accounting
Gen Grosse, Property/Community Relations
Juan Trasvina, Airport Operations Supervisor
Colonel David Suggs, USMC, Commanding Officer, MCAS Yuma
Maj Henry Hortenstine, USMC, Military Liaison
Greg McShane, MCAS Operations Officer
Ken Scott, ASN Volunteer
Tanya Gesse

CALL TO THE PUBLIC
There were no Public Comments.

APPROVAL OF MINUTES

The President called for a motion to approve the minutes of the June 11, 2019 Board Meeting. Mr. Matheus so moved. Mr. Jones seconded the motion. Motion passed unanimously.

Votes in Favor:
Mr. Rice
Mr. Saltzer
Mr. Jones
Mr. Craft
Mr. Gourley
Mr. Matheus

Votes Opposed: None

The President called for a motion to approve the minutes of the July 19, 2019 Special Board Meeting. Mr. Jones so moved. Mr. Craft seconded the motion. Motion passed unanimously.

Votes in Favor:
Mr. Rice
Mr. Saltzer
Mr. Jones
Mr. Craft
Mr. Gourley
Mr. Matheus

Votes Opposed: None

REGULAR AGENDA

1) Discussion and Possible Action to authorize the YCAA President, the Airport Director, or their designated representative to sign a professional services agreement for an amount up to $644,041 with Mead and Hunt, Inc., for the preparation of an Airport Master Plan, contingent upon final review and approval by Airport Staff and the Airport Legal Counsel.

Ms. Brown, the Airport Director, briefed the Board on the process taken be staff to select a qualified consulting firm to prepare the Masterplan. She described how Mead and Hunt was selected from the five other firms who responded to the opportunity and how the FAA and ADOT approved this selection and ultimately the negotiated not to exceed cost of the project. Ms. Brown described how the project would proceed with an agreed upon completion date based on 540 days from inception.

Mr. Rice called for a motion to authorize the YCAA President, the Airport Director, or their designated representative to sign a professional services agreement for an amount up $644,041 with Mead & Hunt Inc., for the preparation of the Airport Master Plan, contingent upon final review and approval by Airport Staff and the Airport Legal Counsel. Mr. Matheus so moved. Mr. Craft seconded the motion. The motion passed unanimously.

Votes in Favor:
Mr. Rice
Mr. Saltzer
Mr. Jones
Mr. Craft
Mr. Gourley
Mr. Matheus

Votes Opposed: None

2) Discussion and Possible Action to authorize the YCAA President and the YCAA 1st Vice President to sign a Change in Terms Agreement with 1st Bank Yuma effectively reducing the applicable interest rate by 0.65%, and implementing a floor of 5% on the outstanding balance of Note #50 602004 03 effective August 13, 2019, contingent upon final review and approval by Airport Staff and the Airport Legal Counsel

Mr. Hinkle, Chief Financial Officer described the nature of YCAA’s existing long term debt and the terms of “Note #2004” which was obtained from 1st Bank Yuma for the purpose of constructing the Joe Foss Hangar Complex. Mr. Hinkle briefed the Board on the bank’s offer to modify the terms of the note by modifying the calculation of the effective rate of interest from Prime Plus 1.65% to Prime Plus 1.00%, as well as establishing a 5% overall floor. After describing how this change will result in the immediate decrease in the effective rate of interest from 7.15% to 6.5%, he answered several questions related to the possible ramifications of the proposed floor. Mr. Hinkle described the significant savings that would be recognized from the change which was presented as over $60,000 per year and hundreds of thousands of dollars over the remaining term.

Mr. Rice called for a motion to authorize the YCAA President, the Airport Director, or their designated representative to sign the Change of Terms agreement with 1st Bank of Yuma for Note #50 602004 03 effective August 13, 2019, contingent upon final review and approval by Airport Staff and the Airport Legal Counsel. Mr. Craft so moved. Mr. Matheus seconded the motion. The motion passed unanimously.

Votes in Favor:
Mr. Rice
Ms. Morgan
Mr. Saltzer
Mr. Jones
Mr. Craft
Mr. Gourley
Mr. Matheus

Votes Opposed: None

3) Discussion and Possible Action to authorize the YCAA President, the Airport Director, or their designated representative to sign a three year engagement letter with Walker and Armstrong, LLP for FY19, FY20 and FY21 Independent Audit Services in the amount of $16,000, $16,500 and $17,000 respectively, contingent upon final review and approval by Airport staff and the Airport Legal Counsel.

Ms. Brown, the Airport Director, described the FAA and ADOT regulations which require the airport to have an independent audit each year. Ms. Brown further explained how our previous agreement with Walker and Armstrong had ran its course, ending with our most recent FY18 audit. Since Walker and Armstrong has proven to be qualified, timely, effective and professional, Ms. Brown recommended that the Board authorize acceptance of their most recent proposal to provide audit services for FY19, FY20 and FY21 at $16,000, $16,500 and $17,000, respectively matching the cost of the previous three years.

Mr. Rice called for a motion to authorize the YCAA President, the Airport Director, or their designated representative to sign a three year engagement with Walker and Armstrong, LLP in the total amount of $49,500 to provide auditing services contingent upon final review by Airport staff and the Airport Legal Counsel. Mr. Jones so moved. Mr. Matheus seconded the motion. The motion passed unanimously.

Votes in Favor:
Mr. Rice
Ms. Morgan
Mr. Saltzer
Mr. Jones
Mr. Craft
Mr. Gourley
Mr. Matheus

Votes Opposed: None

4) Monthly report by Chief Financial Officer on current financial status.

Mr. Hinkle, Chief Financial Officer briefed the Board on our current financial status.

MILITARY LIAISON
Colonel David Suggs, USMC, Commanding Officer, MCAS Yuma began his brief by complimenting the work of our Airport Director, Ms. Brown. After a discussion about the importance of security on the airfield and a described the events surrounding a recent runway incursion.

5) Presentation and update regarding current construction projects, associated contracts, grant status, general aviation, marketing efforts, terminal improvements, aviation conferences, meetings and items of interest with the city and county or other federal or state agencies. This will include, but is not limited to, additional information, FAA and ADOT grant updates, an overview of projects underway, airport operations, Rolle Field, airline recruitment and retention efforts, general aviation, future events, and other Airport business.

Mr. Trasvina, Airport Operations Supervisor provided a presentation on the operational status of the airfield.

Ms. Brown, the Airport Director, briefed the Board on the status of the terminal parking lot project, status of existing tenants, as well as ongoing efforts to attract additional commercial air service. Ms. Brown then briefed on the marketing and community outreach over the past month as well as airport activities scheduled next month.

CALL TO THE PUBLIC
There were no Public Comment.

ADJOURNMENT
There being no further business before the Board the meeting adjourned at 5:06PM.




// Approved //
Russell Jones
Secretary Yuma County Airport Authority; Strategic Planning Committee Chairman


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