CEDAR CITY REGIONAL AIRPORT BOARD MEETING JUNE 11, 2015

Transcription

1 CEDAR CITY REGIONAL AIRPORT BOARD MEETING A regular meeting of the Cedar City Regional Airport Board was held on Thursday, June 11, 2015 at 8:15 AM in the Conference Room at the Airport located at 2560 West Aviation Way, Cedar City, Utah. PRESENT: Don Marchant, Chairman Dale Brinkerhoff, Member Karl Hugh, Member Ken Beazer, Member Mark Leavitt, Member Jyl Shuler, Member Ryan Marshall, Public Works Director Jeremy Valgardson, Airport Manager Maile L. Wilson, Cedar City Mayor Rick Holman, City Manager Paul Bittmenn, City Attorney Kathy L. Dahl, Executive Secretary Kirt McDaniel, Jviation Jeremy Lee, Jviation Jay Orton, ULA Scott Jolley, ULA Brenda Lee Blackburn, Sphere One Mike DeRoest, Skywest Thomas Pugh, Leavitt Land Blaine Nay, Citizen Chairman Marchant welcomed everyone and called the meeting to order. MINUTES Beazer moved, Shuler seconded and motion carried unanimously that the minutes from the May 14, 2015 meeting be approved. INFORMATIONAL ITEMS Skywest Mike DeRoest of Skywest reported to the board that the flight schedules remain the same, with the enplanements at a plateau. In answer to query about the possibility of a third flight out of Cedar City to Salt Lake City DeRoest responded that the load factor would have to be about 70% before Skywest would even consider putting in another flight. Right now the load factor is between 40-50%. Load factor is based on fare paying passengers. Skywest is happy where the numbers are with remaining in Cedar City. He feels they will hit the 10,000 enplanements this year with no problem. TSA No one was present. BLM No one was present. FBO Sphere One Brenda Lee Blackburn reported to the board that several people who have their pilot license have taken some of the Boy Scouts up in Sphere One s Triple 8. Sphere One is gearing up working with the BLM getting ready for the upcoming fire season. Their

2 annual fly-in breakfast is scheduled for September 12, 2015 and they are starting the PAGE -2- advertising for that event. She has been talking with the Commemorative Air Force and has received good feedback from them on having some good aircraft at the fly-in for the community to see. In answer to query, she stated that the B-17 s are scheduled for the fly-in and also to be here sometime in July. She will check on the July dates and let Valgardson know the exact date. She will also get the fly-in breakfast information to the Mayor s staff to be put into the next newsletter. MSC Aerospace No one was present. Upper Limit Aviation Scott Jolley first thanked Mark Leavitt for his efforts with the Iron County Honor Flight and allowing them to participate. He reported to the board that Upper Limit s largest recruiting day coincided with the LA Times news article regarding H.R. 476 G I Bill Education Quality Enhancement Act of Jolley stated they feel they are making headway with Congress coming to a reasonable cap on funding that will allow veterans to utilize their benefits for flight training without wasting money. He also reported that ULA is working on a bid to open a location at the University of Hawaii. At this time Chairman Marchant also expressed appreciation to Mark Leavitt for his efforts with the Iron County Honor Flight. Enplanements Skywest enplanements for May, 2015 were 1,176 compared with 1,200 for May, AIRPORT MANAGER S REPORT Changes to Rules and Regulations As the existing fire regulations did not meet all FAA and National Fire Protection Association (NFPA) requirements, changes have been made that now meet these regulations. Due to the need for increased security, language has been added to the Violations section that gives the airport authority to remove persons from the airport and issue penalties for violations of the Rules and Regulations and Minimum Standards. It also includes an appeals process. There are some facilities on the airport that are not suited for aviation use and so will never be used in that capacity. We are requesting a release from FAA to classify these facilities for non-aeronautical use so we can have them utilized for commercial/industrial businesses and be able to derive revenue from these parcels for the airport. This section gives the authority to release a p arcel for non-aviation use. In answer to query about people living at the airport with the example of the Spanish Fork Airport, Valgardson replied that that would be a violation

3 due to Cedar City being classified as a secured airport and Spanish Fork is not. He will check further into this. PAGE -3- Under Action on Application the Airport Manager was added as the authority to deny or reject any bid or proposal. The section on self-fueling has been added. Paul Bittmenn, City Attorney stated that he has reviewed this document and is in agreement with it. Brinkerhoff moved, Beazer seconded and motion carried unanimously that the board recommend approval of the Airport Rules and Regulations and Minimum Standards to the City Council. Self-Fueling Application Valgardson discussed the self-fueling permit application. The document has been approved by the FAA and city staff. Any person or entity that would like to self-fuel over 5 gallons at a time can complete the application process which will then be approved by the Airport Manager and City Fire Chief. Leavitt moved, Brinkerhoff seconded and motion carried unanimously that the board recommend approval of the Self-Fueling Application to the City Council. ULA Self-Fueling Application Valgardson stated that pending approval of the Self-Fueling Application by the City Council, Upper Limit Aviation is anxious and ready to start their self-fueling operations. Jolley introduced Jay Orton, the person who will oversee ULA s self-fueling program, and stated to the board that ULA has been working with the airport staff on this since January, going through the process with EPA and FAA. Jolley stated that they still have some things to work through, but ULA has provided Valgardson a completed application and Jolley stated that ULA is in complete compliance with the application as it currently stands. Leavitt asked if ULA had approached the existing FBO about negotiating a fuel price. Jolley stated they had. Leavitt stated that when ULA first arrived in Cedar City it was discussed that they be accretive in the community and to the health of the airport. He stated that their presence has strengthen the airport but he has concern s about significant costs to ULA over and above the fuel su rcharge paid to the FBO and about keeping the FBO in this city healthy. Jolley stated that they are not applying to become an FBO ; they only want to fuel their own aircraft. ULA wants to save money wherever they can and have control over their deliv eries, timelines and operations and feel, even with the additional upfront costs they can save money. Leavitt feels this make s the airport more in jeopardy. Returning to ULA s request, Jolley again stated that their application is totally complete as it now stands, and if changes are made by the City Council to any portion of the self-fueling application process, ULA will meet them. He also stated that both proposed sites and the trucks on site have been approved by the Fire Marshall. ULA is

4 being required to pave the area where they are planning on storing their fuel. The City and FAA prefer that ULA lease the land they are proposing to use. ULA s proposal to the board today is: PAGE -4- For approval of 2 separate leases to be drafted by City s legal counsel - a lease for 12,000 sq. ft. of land in front of the ULA hangar for vehicle storage only and a lease for 2,400 sq. ft. of land on the east apron for the transfer point, both non-assignable, at a rate of $.25 per square foot annually. Both sites will be paved and ULA will be paying for paving both sites. Approval for a conditional temporary permit for ULA to start self-fueling with 2 trucks immediately, using the ap ron space that is now available, until all conditions are met. There are still several items pending including submission of the categorical exclusion to the FAA and approval of the same, and completing the paving project. It could take up to 60 days for FAA to review the exclusion and Jolley wants up to 90 days to complete the paving, and ULA does not want to wait another month for the board to meet to being self-fueling. Paving can t begin until the approval is received from FAA. ULA wants to either give the City a letter of credit or open an escrow account to cover fees and the estimated cost of the paving. Bittmenn responded that the City does not typically use escrow account, but does work with letter s of credit or a cash bond. The problem here is in knowing how much the letter of credit or cash bond would be and in approving something with no defined terms. Also, the plans would need to be reviewed by the City Engineering Department to see if the estimated costs are in line. Marshall stated that there are concerns with the area ULA wants to use as a transfer point because it is public space with existing aircraft tie-downs. He stated staff is not sure they are comfortable with ULA doing a fuel transfer in an unapproved area if there may be general aviation aircraft blocking that space. Do we want to lease public space or find another area for the fuel transfer to take place? Bittmenn does not recommend approv ing leases that are not written and also stated there is nothing in the Airport Rules and Regulations for a procedure on approving a temporary permit for self-fueling. Chairman Marchant recommended that Bittmenn, Marshall, Valgardson and Jolley meet and work out the details and if everything is ready for the board prior to the next meeting, a special meeting can be called to try and expedite this request. Beazer moved, Brinkerhoff seconded and motion carried unanimously that Upper Limit Aviation s request for a temporary permit for self-fueling and approval of leases for fuel transfer and vehicle storage be tabled until such time as all issues have been worked out, and if ULA s request is ready for presentation before the next regularly scheduled meeting, that a special meeting be called to take care of this request. Leavitt Land and Investments Assuming Matheson Lease

5 Valgardson reported to the board that there are a few buildings on the airport that are in question as to whether they are being used for aviation purposes. One building in particular is owned by and the land is being leased by Colonel Matheson. The current PAGE -5- lease has 10 years remaining with 5 5-year options. Valgardson stated that this particular building does not have a hangar door, so can t house aircraft. There has been some interest by the Leavitt Group in utilizing it for non- aviation purposes. The problem is having a portion of the airport under the Airport Improvement Plan used for non-aviation purposes could jeopardize our grant assurances and federal obligations with FAA. There is a process we can go through to get FAA approval for non- aviation use and still maintain the grant assurances. FAA has approved non-aviatio n use leases for a maximum of 5-year periods, but they need to be kept informed of the use and they re-evaluate this type of approval, and they could come back and deny the request. FAA has control under the AIP of the intended use of the land. Leavitt Group would like to assume the Matheson lease, if possible, and run a commercial/industrial business out of it. The building is adjacent to the current Leavitt hangar. It was apparently used previously as classrooms for flight training. Leavitt stated that they are requesting that the Airport Board recommend approval to the City Council of the Leavitt Group assuming Matheson s lease or approving the Leavitt Group to lease the building on a month-by-month basis until the details are worked on an arrangement to utilize the building for non-aviation purposes if possible. Bittmenn stated that there is a lease assumption option, but would not recommend the board approving any leases or lease amendments they have not seen. Chairman Marchant made the recommendation and Brinkerhoff moved Hugh seconded and motion carried by majority vote with Leavitt recusing himself, that this request be moved forward through t he appropriate channels to be acted upon when ready at our selected special board meeting, a date yet to be determined. Master Plan Update Valgardson updated the board on the status of the Airport Master Plan. We previously retained GDA Engineers to update the Plan. We have started the independent fee estimate (IFE) process with a company in Colorado and it should be completed with a report back in a week or two. When we receive the report, we can get an official contract from GDA for the Master Plan that includes their fee schedule and will be able to take it before the City Council for approval. The Master Plan scope will justify the runway extension and any other infrastructure items that we may need to update at the airport. It will also include reviewing the airport signage, the wildlife plan, and update of the current drawings. The Master Plan scope has been reviewed by the legal department. Beazer moved, Leavitt seconded and motion carried unanimously that the board recommend approval of the Master Plan scope for the Airport to the City Council. Board Member Terms

6 Mayor Wilson stated that she has a number of terms of members on different boards that are expiring, and she will make the appointments and bring them to the City Council for ratification. She asked that any recommendation for members be sent to her PAGE -6- and if changes in term expiration dates need to be made, she will take care of that through the City Council. Chairman Marchant reminded the board that the next regular meeting is scheduled for July 9, 2015, but if the items from ULA and the Matheson lease are ready prior to that date, a special meeting will be called and the board will be notified. As there was nothing further, Brinkerhoff moved, Hugh seconded and motion carried unanimously that the meeting be adjourned at 9:52 AM.

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