HomeMy WebLinkAboutacm_06032014finalMINUTES of the Ukiah Airport Commission June 3, 2014
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UKIAH REGIONAL AIRPORT COMMISSION 1
June 3, 2014 2
Minutes 3
4
COMMISSIONERS PRESENT STAFF PRESENT 5
Carl Steinmann, Chair Greg Owen, Airport Manager 6
Eric Crane Ken Ronk, Airport Assistant 7
Dottie Deerwester Cathy Elawadly, Recording Secretary 8
Don Albright 9
Gordon Elton 10
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COMMISSIONERS ABSENT OTHERS PRESENT 12
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1. CALL TO ORDER 15
The Airport Commission meeting was called to order by Chair Steinmann at 6:00 p.m. at the Ukiah 16
Regional Airport, Old Flight Service Station, 1403 South State Street, Ukiah, California. Roll Call was 17
taken with the results listed above. 18
19
2. PLEDGE OF ALLEGIANCE - Everyone recited the pledge of allegiance. 20
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3. APPROVAL OF MINUTES – May 6, 2014 22
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M/S Elton/Albright to approve May 6, 2014 minutes, as submitted. Motion carried by an all AYE voice 24
vote of the Commissioner’s present. 25
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4. AUDIENCE COMMENTS ON NON-AGENDA ITEMS 27
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5. DISCUSSION/ACTION 29
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5A. Budget 2014-15 31
Airport Manager Owen: 32
Was hoping the new City Finance Director would be present tonight to discuss the Airport Budget 33
for FY 2014-15 and/or any budget-related questions the Commission may have but was unable 34
to do so for family reasons. 35
City budget hearings will take place in latter June. 36
Referred to Airport budget 2014-15 that he has presented to City Hall Administration and noted 37
there is always the likelihood some of the line items will change and go either up or down 38
depending on the budget, such as PERS retirement, Group insurance, etc. 39
40
Commissioner Elton: 41
Was a ‘projected actual’ prepared for this year? Sees this as a helpful tool for comparison 42
purposes from one budget year to another. 43
Fuel sales seem low for where we are this budget year. 44
The fuel sales report indicates the gross revenue for 2013/14 is approximately $700,000 and this 45
is for 10 months, i.e., July 2013 thru April 2014. To meet the projected actuals, is it possible for 46
the revenue to increase $300,000 more in approximately two months when Calfire is purchasing 47
fuel? 48
Is it reasonable to expect that the Airport will go back more to the average fuel sold versus having 49
a light fuel sales year? 50
Questioned the ‘averaging’ methodology/strategy when reviewing the gross revenue figures for 51
past fiscal years? 52
What mark-up figure is used to make certain of a profit margin? 53
Related to personnel expenses, asked about how staffing is configured into the budget. 54
55
MINUTES of the Ukiah Airport Commission June 3, 2014
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Airport Manager Owen: 1
Confirmed a projected actual was prepared for this budget year. 2
Fuel sales figure represents an average. Talked about Jet A fuel sales comparatively for various 3
budget years and noted Jet A fuel sales in May 2014 were unusually high for this time of year. 4
May 2013 the Airport sold 7400 gallons of Jet A compared to 9900 gallons for May 2014. There 5
has been a significant increase in Jet A fuel sales for the month of May. 6
The monthly financial statement for the Airport shows full year projections. Typically in Ju ne the 7
Airport sees $100,000 in fuel sales. In FY 2011-12, fuel sales for July and August were well over 8
$100,000 for each month. It is unlikely the Airport will see $200,000 or $300,000 in fuel sales for 9
the month of June. 10
Noted last year’s fire season was low in terms of fuel sales. Again, projections relative to fuel 11
revenue are based on the average of fuel sold and not so much on what was sold for last year 12
and/or what has been sold for this fiscal year so far. 13
It is difficult to predict fuel sales f or any given fiscal year. The Airport makes most of its revenue 14
from fuel sales. Fuel sales increase when there is a good fire season. Calfire arrived early this 15
year and this is the reason for the increase in fuel sales for the month of May. 16
‘Averaging’ is also related/based on the Airport’s new pricing mechanism and explained how this 17
works particularly for Calstar fuel sales. Calstar is also purchasing more fuel now than in the past. 18
Looking at the gross revenue for past fiscal years, i.e., 2011/12 and 2012/13, the ‘averaging’ 19
methodology allows for compensation for years when sales were down 20
The Airport is presently looking at $820,000 in fuel sales through May 2014 and anticipates 21
another $100,000 or more which will be close to the projected sales f igure of $900,000 or 22
$1,000,000. 23
Fuel mark-up is based on $.95 per gallon for Avgas and $2.10 per gallon for Jet A fuel. 24
The budget reflects current staffing. Airport staffing includes two full-time persons, one 32-hour 25
position, and three one-thousand hour positions and this is reflected in the current budget. 26
27
There was Commission discussion concerning staffing, current status of staffing, associated benefit 28
expenses for staffing, how this works and how benefit expenses are accounted for in the budget. 29
30
Chair Steinmann asked about line item Munis# 77725200, how ‘utilities’ is accessed/assigned noting the 31
amount is the same for every budget. 32
33
Airport Manager Owen: 34
‘Utilities’ expense is assigned by City Hall administration. 35
36
Commissioner Albright: 37
Asked about the fuel mark-up and profit margins for this fiscal year. 38
39
Airport Manager: 40
The margins are likely different when looking at the fuel revenue because Calstar now pays more 41
for fuel where the mark-up is higher. 42
43
5B. Airport Maintenance 44
Airport Manager Owen: 45
Gave an update regarding maintenance tasks completed at the Airport in preparation for Airport 46
Day. Of significance is the abating of weeds on the runway/taxiway which has dramatically 47
improved the appearance and surface area. The riding mower as opposed to a weed eater was 48
most effective in being able to closely abate weeds in and around the runway. The procedure is 49
labor intensive and the task must be well coordinated with the other duties such as fueling that 50
must be performed on the Airport. 51
52
5C. Fuel Tank 53
Airport Manager Owen: 54
MINUTES of the Ukiah Airport Commission June 3, 2014
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Staff has been working with Mead & Hunt consultants regarding staff’s request for a proposal 1
from Mead & Hunt to provide a design and bid specifications for two different tank options. 2
Mead & Hunt should have the RFPs completed shortly. 3
Has reviewed the prospect of securing a loan with Caltrans Division of Aeronautics for the fuel 4
tank project and determined there is no prepayment penalty should the Airport want to pay-off the 5
loan any time. Caltrans Division of Aeronautics has loan funds available if the Airport wants to 6
take out a loan. 7
8
5D. Airport Business Plan / Buildings 9
Airport Manager Owen: 10
Was unable to meet with Commissioner Crane this month to discuss/review buildings on the 11
Airport so that when the information on the building inventory list is complete this information will 12
be included as part of the Airport Business Plan. 13
14
5E. Lease Recommendations 15
Airport Manager Owen: 16
Staff is requesting the lease agreement for Northern Sky RV be approved by the Airp ort 17
Commission for recommendation to Council 18
At the last meeting the Commission recommendation was that Northern Sky RV be required to 19
have an employee escort for their customers when accessing their RVs. Northern Sky RV has 20
indicated this requirement is not something they can do and have asked that this requirement be 21
taken out of the lease. 22
Northern Sky RV does plan to have staffing/security at night after hours but having to provide 23
staffing during the day would be a problem. 24
Asked the Commission to review the lease agreement to see if the Commissioners are willing to 25
forego that term/condition of the lease that requires an employee escort for customers accessing 26
their RVs. 27
Northern Sky RV will be leasing the building on the site and intends to make some improvements 28
to it as well as other potential improvements, such as to the fence. Staff is not requiring Northern 29
Sky RV to replace the perimeter fencing as part of the lease agreement. 30
Expansion of the business may be an option should Northern Sky RV outgrow the area currently 31
being leased. 32
33
Commission: 34
Discussed the proposed use, type of operation relative to whether it would work well and be a 35
good fit for the Airport. 36
Also discussed the lease agreement and reaffirmed since the lease is month-to-month so that if 37
the use does not work out for one reason or another, the lease can be terminated at that time. 38
Considered whether or not to allow Northern Sky RV to provide security/escort only at night and 39
be okay with people having access to the facility via a key, combination and/or padlock. 40
Is generally okay with having staffing/escort only at night. 41
42
M/S Deerwester/Crane to recommend City Council approve the lease agreement for Northern Sky RV 43
and to exclude that provision of the lease requiring daytime staffing. 44
45
Commissioner Albright: 46
Asked for clarification customers of Northern Sky RV can essentially come and go at any time 47
from the site, seven days a week. Should nighttime hours be defined? 48
Has observed there is always traffic at the intersection of Hastings Road and Commerce Drive. 49
50
Commissioner Crane: 51
While the aforementioned is true, there is nighttime staff to assist RV owners. 52
53
Commissioner Elton: 54
MINUTES of the Ukiah Airport Commission June 3, 2014
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In previous discussion, there was language about ‘normal business hours.’ 1
Is of the opinion evening hours would be more dangerous with large RVs coming to and from the 2
site and possibly conflicting with traffic flow at the intersection of Hastings Road and Commerce 3
Drive. 4
5
Commissioner Deerwester: 6
Is of the opinion traffic congestion would not be a problem during the day because people driving 7
their RVs would not be pulling in or out on a continual basis bu t rather infrequently upon need. 8
Nighttime could be an issue because traffic in the area may not see a RV pulling in or out. 9
Asked about signage? 10
11
Airport Manager Owen: 12
We could not determine what normal business hours were. Northern Sky RV was concerned 13
about evening hours and not so much the daytime hours. 14
Any signage would be installed on the site subject to City sign requirements. 15
Is not concerned about setting nighttime hours. Airport users come and go on the Airport to 16
access their planes, etc., so is of the opinion this would be no different. 17
Related to potential vandalism Northern Sky RV will be responsible for policing the site and, 18
persons renting space for storage of RVs will essentially provide their own security because they 19
will know when something is not right. 20
21
Commissioner Crane: 22
What is the nature of the nighttime security? Is it paid security? 23
24
Airport Manager Owen: 25
Confirmed to his knowledge Northern Sky RV will have a paid security service. 26
27
The aforementioned motion carried by an all AYE voice vote of the Commissioners present (5-0). 28
29
REPORTS 30
6A. Airport Monthly Financial Report 31
Airport Manager Owen: 32
Referred to year-to-date fuel revenue/sales information sheet for May for comparison purposes. 33
Related to the balance sheet for 2014 indicated the ‘pooled cash’ balance has been declining 34
overtime. After researching the problem found it had to do with the City accounting meth odology 35
and/or reconciling of the journal entries thereof and the accounting methodology by Epic 36
regarding im bursement from credit card sales. The matter is being looked. 37
38
Commissioner Elton: 39
Addressed the aforementioned issue and noted if the checks re ceived from Epic were recorded 40
as revenue the money should have been either in the cash account or receivable account. 41
42
Airport Manager Owen: 43
The problem is the Airport was not regularly receiving ‘pooled cash’ back from Epic so that it gets 44
properly recorded in the general ledger. The Airport has to ask for a check from Epic. 45
Airport staff maintains a record of all fuel sales and these figures are compared to City Hall 46
accounting/posting of fuel sales for check and balance purposes. Acknowledged there has been 47
‘a disconnect’ and/or discrepancy between Airport reports and those from City Hall regarding fuel 48
sales, which mostly has to do with posting of data. 49
Staff will determine how best to manage the accounting for credit card sales to make certain the 50
Airport is receiving payments from Epic. 51
52
Commissioner Elton: 53
The reason is because there is ‘no cash’ transaction. The accounting for how the Airport receives 54
credit from credit card sales needs to be straightened out. 55
MINUTES of the Ukiah Airport Commission June 3, 2014
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6B. Airport Day 1
Airport Manager Owen: 2
Is pleased with the plans for Airport Day. 3
The purpose of Airport Day is to have a day all about fun. 4
5
Commissioners Deerwester and Elton: 6
Understands while there is a lot of planning and preparation for Airport Day for it to be a 7
successful event expressed concern/questioned how vendors are managed for Airport Day and 8
would like to see the community more involved with preparation/plans for Airport Day. 9
Asked to see a list of all the vendors. 10
Are of the opinion no vendor should be allowed to sell the sa me thing and that their location 11
should be predetermined. It is not a good idea to have competing vendors since most of the 12
vendors are non-profit organizations raising money for causes. 13
Would like the Commission to review how vendors are managed for future Airport Day events and 14
provide for better organization, structure and operational information. An event like Airport Day 15
requires a well-managed vendor operation. The concept of making Airport Day a day about 16
having ‘fun’ is not about making it fun when it comes to the vendors. Vendors are present to 17
raise money either for profit or for a cause and not necessarily for fun. 18
19
Airport Manager Owen: 20
Protocol for Airport Day has always been that vendors are allowed to sell what they want, free of 21
charge and their location determined by a first come basis. 22
Does not have the vendor list readily available as the list is incomplete because people are still 23
signing up. 24
Related to past Airport Day events, vendors selling the same item have always sold out. 25
26
Commissioners Crane and Albright and Chair Steinmann: 27
While they appreciate having vendors disagreed with Commissioners Deerwester and Elton on 28
how vendors are managed for Airport Day and does not see there is a problem when it comes to 29
vendors. Are of the opinion Airport Day is about having a good time at the Airport enjoying the 30
planes/plane rides, looking at static displays and learning about the Airport and aircraft rather 31
than focusing on vendors and what they are doing. 32
Willing to look at management of vendors for future Airport Days with regard to fairness and 33
possible better organization. 34
Is of the opinion staff and/or volunteers do a great job orchestrating the Airport Day event. 35
36
6C. ALP Update 37
Airport Manager Owen has nothing new to report. 38
39
6D. Commissioner Appointments 40
Airport Manager Owen: 41
Commissioner seats for Steinmann and Deerwester are due for reappointment in June. 42
Has no knowledge whether or not the City Clerk has public ly noticed for recruitment of these 43
upcoming vacancies. 44
45
It was the consensus of the Commission to cancel the regular July meeting. 46
47
7. AGENDA ITEMS FOR AUGUST 48
1. Budget 2014-15 49
2. Airport Maintenance 50
3. Fuel Tank 51
4. Airport Business Plan / Buildings 52
5. Airport Monthly Financial Report 53
6. Airport Day 54
7. ALP Update 55
MINUTES of the Ukiah Airport Commission June 3, 2014
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Commission asked about Chico Model A and when this business will be operating at the former small 1
engine repair building. 2
3
Airport Manager Owen: 4
Chico Model A will likely begin operating in the former small engine repair building next month. 5
6
8. COMMISSIONER COMMENTS/STAFF COMMENTS 7
8
9. ADJOURNMENT 9
There being no further business, the meeting adjourned at 7:18 p.m. 10
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Cathy Elawadly, Recording Secretary 13
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