CHESAPEAKE AIRPORT AUTHORITY MINUTES December 7, 2011

The regular meeting of the Chesapeake Airport Authority was held on Wednesday,

December 7, 2011 at 3:00 p.m., at the Economic Development Authority Office, Chesapeake, Virginia.

CALL TO ORDER
Mr. Vince Gordon declared a quorum present and called the December 2011 meeting to order at 3:00 p. m.

MINUTES
After review of the minutes, a motion was made and passed unanimously to accept the minutes from the November 2011 meeting.

TREASURER’S REPORT
Mr. Burke Craver stated that he had reviewed the financials and found everything to be in order. A motion was made and passed unanimously to accept the Treasurer’s report.

INVOICES
Mr. Joe Love went over the invoices for the month: Cooper-Crouse Hinds $1,224.01 (Lamps); Talbert & Bright $1,881.54 (Land & Easements), $2,604.61 (Fire Suppression), $9,815.75 (Obstruction Removal); Pender & Coward $3,273.00 (C&H); Austin Electric $1,513.84 (PAPI Repair); City of Chesapeake $33,284.04 (Stormwater Fees); Virginia Resources Recycled $96,020.55 (Obstruction Removal); VSC $155,043.33 (Fire Suppression).A motion was made, seconded and passed unanimously to approve the invoices for the month of November/December 2011.

OLD BUSINESS
FY2013 CAPITAL IMPROVEMENT PROGRAM
Mr. Love discussed the capital improvement budget for current and future years and those projects that will be added to the current year. Mr. Love discussed the various projects and the funding involved for the projects. Mr. Love discussed the results of a conference call between himself, Mr. Kevin Hubbard, Mr. Ron Hallman (city’s attorney’s office), the FAA district office, Randy Burnett (DOAV) and the engineers from Talbert & Bright regarding the tree obstructions and hazards to navigation on the adjoining property owned by C & H. The consensus agreement was to move forward with a purchase of an avigation easement or possibly acquisition of the property in fee simple. Costs are not known at this time. Mr. Love then discussed the steps to accomplish the goals to complete the obstruction removal project. Mr. Lee Lowder discussed the city’s incorporating our capital budget into the city’s capital budget program. A motion was made, seconded and passed unanimously to approve the capital budget.

Mr. Kevin Hubbard and Mr. Burke Carver arrived for the meeting.

FY2013 OPERATING BUDGET
Mr. Joe Love discussed the operating budget with the authority. The budget amount requested $679,892 witch includes the local share of $43,000 of several projects such as re-striping and crack-filling on the road and ditch clearing. Mr. Love stated that on the guidance of the city, we will submit 3 budgets: one based on city contribution held constant, one based on where city contribution is reduced by 5% and then a budget that reduces the city contribution by 10%. Mr. Love discussed the results of the bond refinancing with the authority and its effect on the budget. Mr. Tom Love would like to see how the money saved with the bond refinancing changed the budget and how it affects the expenses or any improvements that are planned. Mr. Love would like to see the savings used for improvements. Mr. Lee Lowder stated that we have to do a really good job in the presentation of these budgets and Mr. Love assured him that he would use all of the resources of the authority in preparing the presentation. A motion was made, seconded and passed unanimously to approve the operating budget presentation.

NEW BUSINESS
APPLICATION FOR FBO PERMIT/AGREEMENT – EPIX AVIATION
Mr. Joe Love stated that EPIX Aviation has submitted an application to operate as an FBO to do 3 activities: aircraft rental, flight training and aircraft maintenance. Mr. Love stated that he has reviewed the application and it meets the minimum standards of the authority. Mr. Tom Love of the FBO committee discussed the application that was submitted. Mr. Tom Love asked the owners of EPIX Aviation (Mr. Jim Parkman and Mr. Robert Ziegenfuss) to introduce themselves. Mr. Ziegenfuss also introduced some of their employees to the board. Mr. Tom Love stated that the FBO committee would like to study their payment schedule and make some adjustments that might be necessary. Mr. Tom Love stated that the FBO committee recommends approval with the caveat that the operating agreement is complete before the start business on January 3rd. Mr. Herb Perlin asked how many employees EPIX Aviation will have. Mr. Jim Parkman said there are around 20 employees. Mr. Lee Lowder concurred in respect to making sure the operating agreement is approved before the business begins and that compensation has been determined. Mr. Kevin Hubbard asked how this would affect our current FBO. Mr. Lee Lowder stated that his understanding that we can have as many FBO’s as can qualify. Mr. Joe Love stated that in terms of the FAA and our grant assurances: they say that there is a need for a second of anything if someone applies. The authority has to decide if having redundant services is in the long run the best thing for the airport. The authority discussed different requirements that they must meet for approval. Mr. Hubbard just wants to determine if the airport can support two FBO’s. Mr. Joe Love stated that he only researched the information that would determine if this application meets all rules and regulations and the minimum standards. A motion was made, seconded and passed unanimously to accept the application pending the successful negotiation of an FBO agreement with EPIX Aviation, to be drafted by counsel and circulated to the authority members for comment before being executed.

POWER EASEMENT – DOMINION VIRGINIA POWER
Mr. Joe Love discussed the power easement that is required by Dominion Virginia Power to complete their work. A motion was made, seconded and passed unanimously to approve granting an easement to Dominion Virginia Power for underground power service to the fire suppression system pump station, pending review by counsel and the FAA and DOAV.

TALBERT & BRIGHT – Submitted by Steve Peterson
Fire Suppression – Pump Installation
The building and fire pump have been installed. Now we are waiting for Dominion Power to run the power to the building so it can be tested. That process is in the works. Hopefully that will be accomplished in the next 30-45 days.

North Terminal Area (Wetland Credits)
There is about one more week left of the public comment period. To date we have not received any comments so things are looking pretty good. After the comment period is over, and assuming no comments, the Corp of Engineers will finalize and issue the permit. We should see something in the next 30 days.

Silviculture
The contractor has completed all of the clearing as well as the planting of the wetland plants. A preliminary inspection was held a couple of weeks ago and a small punch list was generated and presented to the contractor. The contractor has completed the punch list. A final inspection will be scheduled in the next couple of weeks.

Land Acquisition RPZ
There has been no change at this point. The offers have been made and legal counsel is working through the negotiation process.

AIRPORT MANAGER’S REPORT
Glide slope
Mr. Joe Love stated that it is up and running at this time. The GCO is not working and ARINC provided a quote for $6,765 for a replacement. We have an 80% grant from the state. A motion was made, seconded and passed unanimously to proceed with application and installation once the equipment arrives and pay the invoice with the 80% grant and the rest with airport operating funds.

Employee Health Status
Mr. Joe Love stated that Mary Cover will be having gall bladder surgery on the 16th.

Chairman’s Report
Mr. Kevin Hubbard discussed the results of the conference call with the FAA earlier in the week as mentioned by Mr. Joe Love. Mr. Hubbard wished everyone a Merry Christmas and Happy New Year.

ADJOURNMENT

There being no further business, a motion was made, seconded and passed unanimously to adjourn the meeting.

 
Kevin Hubbard
Chairman

The minutes are summary in nature and are not intended to be an exact transcript of the proceedings. The Authority maintains an audiotape of the meeting.