05/12/2015

Meeting Minutes for:
May Board Meeting
Yuma International Airport, Conference Room
Tuesday, May 12, 2015 at 04:01 PM



Call to Order:
The Yuma County Airport Authority, Inc. (YCAA) Regular Board of the Board of Directors was called to order at 4:01PM on 05/12/2015 in the Yuma International Airport Conference Room, 2191 E. 32nd Street, Suite 218, Yuma, Arizona 85365. The Presiding officer was Ron Rice, President.

YCAA MEMBERS PRESENT WERE:
Ronald Rice, President
Stan Gourley, 1st Vice President
Dean Hager, Treasurer
Linda Morgan, Secretary
Charles Balch PhD, Director
Jonathan Matheus, Director
Dr. Brian Cullen, DMD, Director
Randall Nelson, Director
Eric Saltzer, Director

YCAA MEMBERS ABSENT WERE:
Albert Gardner, 2nd Vice President
Ed Whitehead, Director

ALSO PRESENT WERE:
Gladys Wiggins, Director
Gerald Hinkle, Jr., Chief Financial Officer
Mark Workman, Airport Operations Director
Jason Frost, Chief Technology Officer
Gabby Reyes, Office Manager
Major John Gibson, USMC, Military Liaison
Greg McShane, MCAS Operations Officer
Minda Greene, Airport Counsel
Tom Thompson, 1st Bank Yuma
Ken Scott, ASN Volunteer
Nellie Robertson La Fuente Inn & Suites

CALL TO THE PUBLIC
There was no Public Comment.

APPROVAL OF MINUTES
The President called for a motion to approve the minutes of the Previous Board Meeting. Dr. Brian Cullen so moved. Mr. Dean Hager seconded the motion. Motion passed unanimously.

ANNOUNCEMENTS

Airport Director Gladys Wiggins provided a presentation for the 2015 Airport of the Year Award that was presented to Yuma International Airport by ADOT Aeronautics Division during the 2015 AzAA Spring Conference in Lake Havasu, AZ. In additional to this Award, the Airport was also recognized as the Member of the Month from the Yuma Chamber of Commerce. Within the announcement for the award, the Board received information that one of the interns from the airport received a scholarship and the Airport Director was taking the seat as the President for the Arizona Airports Association.

COMMITTEE REPORTS

1) Strategic Planning Committee summary of the April 21, 2015 meeting to include the discussion, review, and possible recommendation regarding the remodeling of the Quimby Aviation Center, relocation of the YCAA Maintenance operations, completing the Joe Foss facility, revising the YCAA strategic key points of focus, and additional capital improvements.

Chairman Dean Hager provided a summary of the April 21, 2015 committee meeting with the revisions to the key strategic points for the YCAA, remodel of the Quimby Aviation Center (QAC) to accommodate a car wash facility, the relocation of the YCAA vehicle and equipment maintenance operation to Martha Taylor hangar facility, completing the Joe Foss facility, and the development agreement with the City of Yuma related to the construction of the Amelia Earhart hangar. Chairman Hager briefed the Board that the committee was supportive and requested that a number of their recommendations be presented to the Finance Committee for consideration. The recommendations will then be placed before the YCAA Board of Directors for consideration and understanding.

2) Finance Committee summary of the May 12, 2015 meeting to include the discussion, review, and possible recommendation regarding the Construction Loan #2004, six month financial review, and the proposed improvements in the terminal, airfield, and airport facilities for lease.

Chairman Gourley provided a summary of the May 12, 2015 meeting to include the discussion, review, and possible recommendation regarding the Construction Loan #2004, a financial review of the FY15 budget after the first six months of operation, and the proposed investment in improvements, equipment and technology in the Joe Foss hangar facility, the passenger terminal, the airfield, and airport facilities for lease. As a result of the discussion Chairman Gourley and Committee supports the Staff recommendation to use the remaining balance of proceeds from 1st Bank Yuma Note #2004 for this purpose, to include project costs to connect the QAC to the power generated by the solar array with all project costs accounted for “Off-Budget”.

REGULAR AGENDA

1) Monthly report by Chief Financial Officer on current financial status and recent activities.

Mr. Hinkle briefed the Board on our current financial status to include the first six months of FY15.

2) Discussion and Possible Action to authorize the YCAA President, the Airport Director, or their designated representative to sign lease agreement GS-09P-LAZ03034, a five (5) year agreement with the one (1) renewal option for an additional five (5) year term with the US Government for airport terminal office space for the Transportation Security Administration for the first five (5) years at $62,282.91 per year and the additional five (5) years thereafter for $72,212.85 per year, contingent upon final review by staff and airport legal counsel.

Ms. Wiggins briefed the Board on a proposed new agreement for five (5) years with a single five (5) year option with the GSA for office space located in the passenger terminal building to begin in November of 2015. The lease terms are substantially similar to the existing lease with fixed rates based upon annual 3% increases. If the GSA exercises its option, lease rates would increase but remain fixed for the final five (5) years calculated based upon 3% annual increases.

Dr. Balch made a motion to authorize the YCAA President, the Airport Director, or their designated representative to sign lease agreement GS-09P-LAZ03034, a five (5) year agreement with the one (1) renewal option for an additional five (5) year term with the US Government for airport terminal office space for the Transportation Security Administration for the first five (5) years at $62,282.91 per year and the additional five (5) years thereafter for $72,212.85 per year, contingent upon final review by staff and airport legal counsel. Mr. Hager seconded the motion. The vote was unanimous.

3) Discussion and Possible Action to authorize the YCAA President, the Airport Director, or their designated representative to sign the amendment to the lease agreement described in Agenda Item #2 with the US Government for airport terminal office and space for the Transportation Security Administration which provides a “Notice to Proceed” and authorization for the GSA to fund the design of the desired remodel of the premises, contingent upon final review by staff and airport legal counsel.

Ms. Wiggins briefed the Board this was an amendment to the new lease agreement which was placed prior for action and approved. The proposed amendment will allow for a “Notice to Proceed” to be issued and authorization for the GSA to fund the design of the desired remodel of office space currently used by the local TSA field office. Ms. Wiggins stated that the design services will be provided by Architecture West through the contract which will follow this agenda item. The proposed amendment provides for design documents to be prepared, the bidding process, construction oversight and management of the punch list and permitting process. Ms. Wiggins informed the Board that if the GSA chooses to move forward with construction, another amendment will be established for that purpose. The Board was provided the amendment for review and consideration.

Mr. Nelson made a motion to Motion to authorize the YCAA President, the Airport Director, or their designated representative to sign an amendment to the lease agreement described in Agenda Item #2 US Government for airport terminal office and space for the Transportation Security Administration which provides a “Notice to Proceed” and authorization for the GSA to fund the design of the desired remodel of the premises, contingent upon final review by staff and airport legal counsel. Mr. Gourley seconded the motion. The vote was unanimous.

4) 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 $33,252.00 with Architecture West for the design of the TSA terminal office space remodel, contingent upon final review by staff and airport legal counsel.

Ms. Wiggins briefed the Board that in order to provide the professional services agreed to in the proposed amendment to our lease with the GSA described in a previous agenda item, the airport staff is proposing YCAA enter into a contract with Architecture West for the performance of design services as described in the proposed amendment to our lease with the GSA. CFO Mr. Hinkle explained that all costs incurred will be passed along to the GSA for reimbursement including the airport administrative cost for processing and oversight of 15% for the project. This agreement will result in design documents, estimated costs to construct, permitting, submittal review and punch list oversight services.

Mr. Gourley made a motion to authorize the YCAA President, the Airport Director, or their designated representative to sign a professional services agreement for an amount up to $33,252.00 with Architecture West for the design of the TSA terminal office space remodel, contingent upon final review by staff and airport legal counsel. Dr. Balch seconded the motion. The vote was unanimous.

5) Discussion and Possible Action to authorize the YCAA President, the Airport Director, or their designated representative to sign a five (5) year lease agreement with one (1) two year option for Hangar #1 with AV, Inc at Rolle Field contingent upon final review by staff and airport legal counsel.

Ms. Wiggins explained to the Board that the agenda posted indicated AV Inc agenda item was for a five (5) year agreement however that was incorrect. Ms. Wiggins briefed the Board that the request was for the Airport staff to prepare a seven (7) year agreement with a single option for one (1) additional year to continue their performance of UAS development and testing at Rolle Field.

Dr. Balch made a motion to authorize the YCAA President, the Airport Director, or their designated representative to sign a seven (7) year lease agreement with one (1) one year option for Hangar #1 with AV, Inc at Rolle Field contingent upon final review by staff and airport legal counsel. Mr. Hager seconded the motion.

There was discussion regarding the Certificate of Authorization (COA) that was and its necessity for AV Inc.’s operations. Ms. Wiggins shared with the Board that the FAA has a form 333 in which the commercial operator can file to operate their vehicle and platform with the letter of agreement from a public agency stating the understanding of AV Inc’s operations. The airport staff has provided the Letter of Agreement that will be in the lease as an exhibit. Ms. Wiggins also shared that AV Inc will still continue to work with AWC regarding the COA in the future if AWC so desires.

There was no further discussion. The vote was unanimous.

6) Discussion and Possible Action to authorize the Airport Director to contract services for the connection of the existing solar array to the Quimby Aviation Center.

Ms. Wiggins and CFO Mr. Hinkle provided the Board with information on the solar array to include how it was constructed, owned and managed by Blue RE. The system currently produces more electricity than the passenger terminal building can consume. During the presentation, Ms. Wiggins briefed the Board that the terminal building consumes only about half the power it generates. Any excess power generated by the system is pushed back into the grid and “sold” to APS through a system of credits used to off-set the power purchase from APS and used by the passenger terminal building during darkness or inclimate weather. It was discussed that the YCAA’s contract with Blue RE calls for all of the power generated by the system to be purchased at a rate of approximately $0.08 per KWH while APS purchases excess power pushed back into the grid at approximately $0.03 per KWH. CFO Mr. Hinkle added that the situation establishes a loss of $0.05 per KWH on all excess power. The Board was informed that there are only two ways to reduce this loss, either by generating less power or by using more of the power generated.

The airport Staff explained that reducing the amount of power generated by the system is not in the best interest of the system owners. Connecting the system to the QAC located just west of the passenger terminal would increase the use of generated power and reduce the number of KWH sold at a loss. Investing in this electrical improvement would not only provide for electrical power to the QAC without cost, the YCAA could sell a portion of this power to the FAA who leases a portion of the QAC.

The Airport Staff shared they have evaluated the possibility of connecting the QAC to the passenger terminal electrical system over a year ago. A design was created by an electrical engineer resulting in cost estimates in excess of $80,000. The possible investment in this improvement was held for future budget resources which have yet to be established. Ms. Wiggins has placed before the Board for its consideration to invest in this improvement using available capital funding through remaining funds on the Joe Foss facility construction loan #2004. Ms. Wiggins shared with the Board that she is working with the owners of Blue RE to obtain a better understanding of the current design of the solar array especially with it producing so much more power than the passenger terminal can consume. Ms. Wiggins provided information regarding the overall cost of providing electrical power to the passenger terminal which indicated an increase since installation of the solar array. Ms. Wiggins also provided information indicating that the solar array did however provide for a significant shift in the source of electrical power consumed by the passenger terminal away from nuclear to renewable energy source.

Ms. Wiggins briefed that the financial benefit of this investment would be immediate. The annual savings in our electrical bills for powering the QAC are expected to reach $12,000 annually. When combined with the sale of electrical power to the FAA (a current tenant in the QAC) estimated at $9,900, annually the investment in the improvements would be returned in less than four years. Since the solar array is expected to generate power for another 15 to 20 years, the return on this investment would be beneficial as the rates increase in APS and overall cost levels itself based on the current agreement. Discussion was provided during this agenda item to include other methods in which the airport may be able to consume more energy as well as provide services to our community. Suggestions provided during the meeting were electric car stations or creating non-aeronautical services in which could be built that may require a high consumption of energy use.

7) 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 update, SCASDP Grant, overview of projects completed to date, Airport Operations, Rolle Field Hangar Development, Rolle Field Rolle Airfield Masterplan, status of the Airline agreements, General Aviation and the Marketing/Business development plan, future GA events, and any other Airport Business.

Mr. Workman briefed on the Runway and Taxiway construction and closures.

Ms. Wiggins gave a general update on current grants, construction projects, marketing, and airport activities by the airport staff.

MILITARY LIAISON

Major John Gibson did not have any items concerning the air station except that he will be leaving this duty station and does not know if he will be here for the next Board meeting.

EXECUTIVE SESSION
Mr. Gourley made a motion to go into executive session for discussion and/or consideration related to contractual terms of the Airport Director and related personnel matters, and for possible legal advice with Airport Legal Counsel under the provisions of A.R.S. §§ 38-431.03(A)(1) & (3).Dr. Balch seconded the motion. The vote was unanimous.

Mr. Rice excused the Public and Airport Staff at 5:46 PM so the Board could enter into an Executive Session.

The Board remained in Executive Session from 5:51 PM until 6:13 PM.

RECONVENE REGULAR BOARD SESSION
The Board reconvened to regular session at 6:13 PM

Ms. Morgan made a motion to provide Airport Director Ms. Wiggins a bonus for the recent accomplishments to include receiving the airport of the year and becoming Arizona AA (Airports Association) President in the amount discussed and agreed to during executive session. Dr. Balch seconded the motion. The vote was unanimous.

CALL TO THE PUBLIC
There was no Public Comment.

ADJOURNMENT
There being no further business before the Board, Mr. Gourley made a motion to adjourn Dr. Cullen seconded the motion. The vote was unanimous. The meeting adjourned at 6:14 PM.



// Approved //
Linda Morgan
YCAA Secretary & Public Relations and Marketing Committee Chairman ; YCAA Secretary
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