CHESAPEAKE AIRPORT AUTHORITY MINUTES September 14, 2011

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

September 14, 2011 at 7:00 p.m., at the Chesapeake Regional Airport, Chesapeake, Virginia.

CALL TO ORDER
Mr. Kevin Hubbard declared a quorum present and called the September 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 theAugust 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: DEQ $1,781 (VDPES Permit); Dixon Hughes & Goodman $8,800 (Annual Audit); Kaufman & Canoles $5,635, 6,657.50 (C&H Dispute); Talbert & Bright $34,559.07 (Obstruction Removal); and Virginia Resources Recycled $79,283.55 (Pay Request). A motion was made, seconded and passed unanimously to approve the invoices for the month of September/October 2011.

OLD BUSINESS
COMMITTEE ASSIGNMENTS
Mr. Kevin Hubbard assigned the following members to various committees: Finance Committee – Mr. Vince Gordon, Mr. Burke Craver; Capital Improvement Committee – Mr. Herb Perlin, Mr. Lee Lowder; Marketing Committee – Mr. Vince Gordon, Mr. Earl Hollowell; FBO Committee – Mr. Lee Lowder, Mr. Tom Love; Security Committee – Mr. Earl Hollowell, Mr. Julian Jackson.

NEW BUSINESS
APPROVAL OF ANNUAL FINANCIAL AUDIT
Mr. Kevin Hubbard introduced Don Britt. Mr. Britt discussed the results of the annual audit by Dixon Hughes and Goodman. Mr. Britt stressed the authority’s continuing need to exercise due diligence in their oversight duties. A motion was made, seconded and passed unanimously to accept the results of the audit as presented by Mr. Britt.

VRA Refinance
Mr. Joe Love discussed the refinancing efforts and the discussions with the city. The city requested that we make an application to VRA and get a statement of commitment from VRA based on the application before the city has their meeting to provide a moral obligation of the city. That gives us a timeframe that the authority has to give Mr. Love authority to formally submit the application to VRA. This requires a motion and approval to do that. Then by October the 7th, VRA will have a commitment letter available to us on their commitment to the loan and by October 12, we will consider a formal resolution approving that loan under the commitment circumstances. Then on October 18th or the 25th, after we make our commitment it will be sent to city council for their review and approval of the moral obligation of the city. We are not getting new funds but are refinancing our current obligation by extending it for 5 years and refinancing at a lower rate. This should result in $65,000 annually being available to the authority. A motion was made, seconded and passed unanimously for the manager to make the application to the VRA.

TALBERT & BRIGHT
Fire Suppression – Pump Installation
Initial submittals have been reviewed and returned to the contractor. The equipment is being manufactured and we are expecting site work to start in the next 30-45 days in advance of the equipment delivery.

North Terminal Area (Wetland Credits)
The FAA was able to come up with the federal share of the wetland credits. Our sub-consultant is currently working with the US Army Corp of Engineers to verify the legitimacy of the low bidder (wetland bank). The total credits were for 12.3 acres of wetland disturbance or 24.6 credits.

Land Acquisition RPZ
The FAA has reviewed and approved the appraisals. Formal letters have been prepared by Bob Powell and they have been sent to the property owners. At this point the Authority will be in the negotiation phase.

Perimeter Road
At last months Virginia Aviation Board meeting the VAB approved a tentative allocation for the project. We are anticipating that it will be submitted to Joe soon.
Mr. Love discussed various grants and their status to include the sign grant. Mr. Love discussed the obstruction/removal & Silviculture project that will begin the next day.

AIRPORT MANAGER’S REPORT
Taxiway Incident
Mr. Joe Love discussed a taxiway incident that occurred. An EAA member’s plane suffered damage but there were no injuries. State Police were notified and took a report. Horizon Aviation removed the airplane from the runway.

Business Update from Mr. Lee Lowder
Mr. Lee Lowder had a meeting with the city manager to discuss 1) tying our capital improvement budget with the city’s capital improvement budget; 2) requested a meeting to discuss ways to promote compatible growth with the airport; 3) requested funding for the preliminary design phase for FBO expansions and additions. Mr. Lowder stated that Mr. Harrell indicated that now is not the time for that funding due to a hiring freeze going on at the city and that after December they may be able to help us. Mr. Lowder will have a proposal for the authority to vote on at the next meeting.

FBO Committee
Mr. Kevin Hubbard asked the FBO committee if they have a recommendation concerning Tidewater Flight Center SASO renewal. Mr. Lee Lowder stated that the committee has not come to a consensus on the SASO application. Mr. Lowder stated that he will support the application to be approved with the following caveats: 1) need a clear understanding with the SASO that any more issues and he will withdraw his support and that the changes that have been discussed with Tidewater Flight Center’s change in management have to go into effect. Mr. Tom Love stated that he can’t support the application. Mr. Lee Lowder made a motion to approve the SASO application. A motion was made, seconded and passed with a vote of 6 to 1 with Mr. Tom Love voting no on the motion.

C & H LAND COMPANY ACCESS ROAD AGREEMENT
Mr. Kevin Hubbard welcomed Mr. Holton and Mr. Faulk to the meeting. Mr. Hubbard stated that C&H Land is requesting a license to use the access road at the south end of the airport. Mr. Faulk discussed the agreement and different aspects of the agreement. Mr. Faulk stated that he would encourage the airport to approve the license agreement. Mr. Rick West stated that he had a letter from Barry Knight and read the letter into the record. Mr. Lee Lowder made a motion that the authority go into closed session to discuss C&H Land’s request and possible litigation.

EXECUTIVE SESSION

Mr. Lee Lowder made a motion, seconded by Mr. Vince Gordon to assemble informally to meet with legal counsel in a closed meeting in accordance with the Virginia Freedom of Information Act, Section 2.2-3712.A, Clause 1 and 7 as indicated on Form I attached hereto and made a part hereof.

Mr. Burke Craver made a motion, seconded by Mr. Tom Love and passed unanimously to adjourn the Executive Session in accordance with the resolution in accordance with the Virginia Freedom Information Act, Section 2.2-3712, as indicated on Form II attached hereto and made a part hereof.

Authority Member’s Comments
Mr. Burke Craver noted that Tidewater Flight Center had submitted a request for the use of the 100LL fuel tank that is not in use at this time. Mr. Craver stated that he recommends we look into. Mr. Kevin Hubbard asked Mr. Love to look into Horizon’s lease to see if that request is possible.

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.