CHESAPEAKE AIRPORT AUTHORITY MINUTES February 9, 2011

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

February 9, 2011 at 7:00 p.m., at the Chesapeake Regional Airport, Chesapeake, Virginia.

CALL TO ORDER
Mr. Lee Lowder declared a quorum present and called the February 2011 meeting to order at 7:00 p. m.

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

TREASURER’S REPORT
Mr. Burke Craver, Finance Committee member, stated that he did review the financials that were prepared for this meeting and any questions he had were satisfactory answered. A motion was made, seconded and passed unanimously to accept the financials for the month of February 2011

INVOICES
Mr. Joe Love went over the invoices for the month: Virginia Resources Recycled $89,964.45 (Obstruction Removal); Talbert & Bright $23,920.47 (Obstruction Removal), $2,560.24 (Fire Suppression). A motion was made, seconded and passed unanimously to accept the treasurer’s report and the invoices for the month of February 2011

OLD BUSINESS
FY 2012 BUDGET
Mr. Joe Love discussed the draft operating budget. Mr. Love passed out copies of the budget and the summary information on the landscaping information. Mr. Burke Craver, the Finance Committee, discussed the FY 2012 Draft Operating Budget and the changes that have been made. Mr. Craver discussed the results of asking for bids for the Landscaping. Out of 5 companies solicited, we only received two bids, one for $38,000 and another for $137,000 and neither one included snow removal. Mr. Craver discussed how the numbers would change with payroll, benefits and buying new equipment if the quotes are plugged into the budget. Mr. Craver recommends that we make no changes at this time in relation to the landscaping bids and the planned purchase of equipment. Mr. Craver discussed the pay increases that the city council just voted in for their employees. Mr. Craver stated that the airport has followed the city in their recommendations when it comes to pay raises. The city is giving their employees a 1 ½ raise, retroactive to July 1, 2010. Mr. Craver stated that he had Mr. Joe Love work up the numbers of giving a 1 ½% bonus for the airport employees. Mr. Craver recommends that a bonus be given to the airport employees instead of the 3% pay increase. Mr. Kevin Hubbard made a motion to approve the budget. Members began a discussion of the different options. Mr. Lowder stated that because we only got two bids for the landscaping RFP and they were so much apart in numbers, that we need to take another look at the RFP to see where a breakdown in understanding occurred with this proposal and revisit the project afterwards. A motion was made by Mr. Kevin Hubbard, seconded and passed unanimously to accept the 3rd draft of the budget as discussed to send to the city. Mr. Joe Love stated that he had moved the purchase to the capital budget. That is the only change to the capital budget. A motion was made, seconded and passed unanimously to accept the capital budget with the change that Mr. Love discussed.

RFP FOR AUDIT SERVICES
Mr. Joe Love discussed the updated RFP for Audit Services. Mr. Burke Craver discussed the 5 proposal that have come in to the airport. The Selection Committee (Finance Committee [Mr. Craver and Mr. Hollowell] and Mr. Joe Love) will review the proposals and determine the top two firms that will be invited to interview. The Selection Committee will then interview those two firms and make a final selection for Authority approval.

MANAGER APPRAISAL
Mr. Lee Lowder stated he has received feedback from the members and Mr. Joe Love. Mr. Kevin Hubbard asked Mr. Lowder if he had built the appraisal from the job description. Mr. Lowder stated that, no, he started from a clean sheet of paper but he did go to the job description and incorporated some of the things that he thought were important. The members discussed how the appraisal will be used and the participation of each of the members in the appraisal. After extensive discussion, it was pointed out that the members may not be able to address each of the areas to be evaluated and should only address those areas where they had sufficient knowledge to do so. Mr. Joe Love stated that in the interest of any future manager that may be hired, he believed that it was important that, whatever appraisal they come up with, the job description should be modified as necessary to be aligned with the appraisal so that the manager knows what he is expected to do and what he will be measured against. A motion was made, seconded and passed unanimously to accept the draft of the appraisal review for the manager.

NEW BUSINESS
BOND REISSUE/REFINANCE
Mr. Joe Love discussed his discussions with David Rose at Davenport & Company. They came up with several scenarios and how they would work in reissue or refinancing the bond. Mr. Love pointed out that Davenport & Co. is an advisor to the Virginia Resources Authority.

Mr. Lowder stated that the authority will give Mr. Joe Love the authority to have Davenport proceed with scenario 1 and that they put in writing that the authority can stop this process without any cost to the authority. Mr. Love stated that he would pdf a copy and send the original overnight. Mr. Love stated that he will have a meeting with Nancy Tracy at the city to get the process started. A motion was made, seconded and passed unanimously to get the process started with the stipulations that the authority can stop this process at any time without any cost to the authority.

TALBERT & BRIGHT (Summary by Mr. Steve Peterson)
Silviculture (Obstruction Removal)
The contractor is still on shutdown due to poor site conditions. It is expected that they will be back to work some time in April or May. The contractor will continue to check the site to see when it will be dry enough to start back.

Land Acquisition (RPZ RW 5 Approach)
The plat and property information has been submitted to the appraiser to begin his work. We hope to see something in the next 45-60 days. Once we have his information we will forward the information to the review appraiser. Once all of the appraisals have been completed the information will be forwarded to Bob Powell to begin the property owner negotiation process.

Fire Suppression (Phase I – Waterline Extension)
The contractor has started work on the waterline installation. Unfortunately the first backhoe scoop cut a phone line that was not marked. Evidently the contract did his job and called in his Miss Utility ticket. When Verizon came out they did not mark this phone line. The Verizon representative admitted that they knew the line was there but that it was a Cavalier line. Unfortunately, Verizon installed the line and maintains the line. They were contacted and the line was fixed within 24-hours. The line was the main communications line for Horizon Aviation.

FBO REPORT
Mr. John Beaulieu stated that he has discussed getting space for a simulator that he has the chance to get now with Mr. Joe Love. Mr. Love stated that he has called Mike Swain to see what the cost would be to convert the public space (Pilot Lounge) to private space. Members discussed the uses of the space and possible use of the space. Mr. Beaulieu stated that he has another option. He has rented a twin hanger from the authority and could possibly put the simulator in that hanger. The authority stated that would look at any numbers or information that Mr. Beaulieu puts before the committee for the purpose of finding and maintaining a space for a simulator.

AIRPORT MANAGERS REPORT
Airport Sign
Mr. Love advised the Authority that he had talked to Mr. Dick Browner, and because Mr. Williams has still not resolved some issues with the City, they are not are not prepared to proceed with the sign easement right now.

NDB Site
Mr. Joe Love talked to a realtor, Mr. Lee Halyard, who advised that the current City assessment for the land is $40,000. However, due to easements, restricted use as an antenna site and restrictions on residential development combined with the currently depressed market, he did not believe the property could be listed for any more than $20,000 at this time. As a result, Mr. Love recommended not doing anything with the land at this time.

Inverse Condemnation Litigation
Mr. Joe Love stated we had not heard from the plaintiffs since the Supreme Court decision and that there was nothing new to report on the cases that had been stayed.

Janitorial Services
Mr. Joe Love reported that he had obtained a quote from Jani-King to see if they could do the janitorial services at a lower rate than the current contract, but the Jani-King quote was higher than current service.

Hangar Door Repair / Fuel Farm
Mr. Joe Love stated that he had asked for three quotes and received two quotes to repair the hangar door and that the RFQ to paint the fuel farm will be ready next month.

Obstructions
Mr. Joe Love stated that trees had been taken down at three points. The WAAS approach to RWY 23 minimums will be 200 feet DH and one mile visibility.

Tidewater Flight Center
Mr. Joe Love advised the Authority that Tidewater’s SASO agreement will expire at the end of April. He closed his report by noting that we are expecting 2 to 3 inches of snow.

CHAIRMAN’S REPORT

ADJOURNMENT

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

 
Leander M. Lowder, III
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.