Loading...
HomeMy WebLinkAboutMinutes - Minutes - Aviation Advisory Commission - Meeting Date: 2/15/2017MINUTES AVIATION ADVISORY COMMISSION GLENDALE MUNICIPAL AIRPORT 6801 N. GLEN HARBOR BLVD. GLENDALE, ARIZONA 85307 AIRPORT CONFERENCE ROOM FEBRUARY 15, 2017 6:00 P.M. I. CALL TO ORDER The meeting was called to order at 6:04 p.m. by Vice Chair Rovey with the following Commissioners present: Terry Aramian, Quentin Tolby, and Leonard Escudero. Chair Dagostino arrived after the Call to Order. Also present were Kenn Potts, Airport Administrator; Kurt Christianson, Assistant City Attorney; John Padilla, Luke Air Force Base (LAFB); Trevor Ebersole, Deputy Public Works Director - Transportation II. APPROVAL OF MINUTES OF THE PREVIOUS MEETING Commissioner Aramian motioned to approve the January 18, 2017 Commission meeting minutes as written. Commissioner Escudero made the second. The motion carried 4 — 0. [Chair Dagostino was not yet present.] III. REQUEST FOR CONTINUANCE OR WITHDRAWAL OF ITEMS. None. IV. AIRPORT BUSINESS 1. ADOT Grant E7F3GO1C Mr. Potts presented information on the ADOT grant E7F3GO1C for the North Apron Rehabilitation — Phase IA. An aerial display of the Airport was presented as well. Commissioner Aramian motioned to recommend that the City Council adopt a resolution authorizing the City Manager to enter into a grant agreement E7F3GO1C with the Arizona Department of Transportation (ADOT) in the amount of $42,465 for the North Apron Rehabilitation — Phase One at the Glendale Municipal Airport. Commissioner Tolby made the second. The motion carried 4 - 0. [Chair Dagostino was not yet present.] 2. SkyQuest Office Suite Lease Mr. Potts presented detailed information on a terminal lease for SkyQuest under the new variable and negotiable rate. Mr. Potts displayed a diagram of the Terminal Building first floor layout, detailing which areas will be occupied by SkyQuest. Mr. Potts presented market trend information for commercial rental rates in Glendale. [Chair Dagostino arrived during the presentation.] Vice Chair Rovey inquired if Mr. Potts advertises available office space. Mr. Potts explained that there is no advertising budget for the Airport; however, Mr. Potts does post rental information on the City's website. Vice Chair Rovey asked for clarification on the second floor tenants which Mr. Potts provided. Mr. Potts noted that there are five empty suites on the second floor of the Terminal Building. Commissioner Aramian inquired if all tenants have separate utility meters. Mr. Potts noted that only the Airport cafeteria has a separate utility meter. Vice Chair Rovey inquired as to the length of the proposed SkyQuest lease. Mr. Potts stated that the lease is for one year, with five, one-year renewals. Mr. Potts added that all Airport leases call for CPI increases each year. Mr. Potts noted that SkyQuest has been at the Airport for a long time and has been a very good tenant. Commissioner Aramian motioned to recommend that the City Council authorize the City Manager to enter into a Lease Agreement Airport Terminal Office with SkyQuest Aviation, LLC for office suite 101 at a negotiated rate of $15.77 psf/yr plus tax, and office suites 103,107A -C, 108, and 109 at a negotiated rate of $21.48 psf/yr plus tax. Commissioner Tolby made the second. The motion carried 5 - 0. 3. Valley Aviation Services Lease Mr. Potts provided an update on a proposed land lease with Glendale Airport Hangars/Valley Aviation Services (VAS). Mr. Potts stated that he and Mr. Ebersole have been in discussions with Mr. Brian Hufft regarding the VAS lease. Mr. Potts displayed an aerial diagram of the Glendale Airport Hangars. Mr. Potts provided the following details: • Hangar rows A, B, D, and I have been sold and are now all in separate hangar associations. There is a suggestion for these four separate hangar associations to combine under one master association. A meeting will be scheduled with the association presidents, Glendale Airport Hangars, and staff. • VAS would like to have separate leases for hangar rows C and J, and the separate shade areas. • The City is proposing to VAS, that if a developer invests up to $1 million to develop the lease area left, the City will extend the lease to 30 years. For a $2 million investment, the City will extend the lease to 50 years. This encourages investment milestones in exchange for increased lease length. VAS'S current lease length of 19 years is not long enough to attract developers to the property. VAS has not yet replied to the proposal. Vice Chair Rovey inquired if the VAS lease rate would remain the same even if the length changed and Mr. Potts replied in the positive. Mr. Potts explained that the lease rate for the south hangars, of $50.00 per hangar, is for the full land area. However, for the north hangars, the lease rate of $25.00 per hangar is calculated based on the building foot print only. Commissioner Aramian wondered if it would be more beneficial to terminate the VAS lease and write a new one, instead of extending the current lease. Mr. Potts stated that this suggestion is also being considered. Chair Dagostino wondered if VAS could walk away from the lease. Mr. Ebersole explained that staff is negotiating with VAS to renew the lease in a manner that could bring in fresh, new business development. Mr. Ebersole explained that the lease will be rewritten in manner so that if VAS fails to reach milestones, the lease will resort back to the original terms. If VAS succeeds, more development and revenue will be brought to the Airport. Mr. Ebersole felt that the City and VAS were close to agreeing upon new terms. Vice Chair Rovey felt that the situation could become very challenging if VAS did not perform. Mr. Potts stated that the Commission will be kept up to date on the status of the VAS lease. 2 4. Terminal Office Master Lease Mr. Potts presented information a proposed revised terminal master lease. Mr. Potts displayed the lease for review of terms, clauses, and proposed changes/additions were noted. Mr. Potts noted the following: • The terminal office master lease will be used for office rentals only. • For a flight school or other aviation business lease, a SASO lease would be required along with the terminal office master lease. • Mr. Potts stated that he has been working with Assistant City Attorney Christenson on the lease wording. • The terminal office master lease can be signed by the City Manager, which will expedite the leasing process. Currently, leases must be approved by the City Council, which can take up to two months or more. Commissioner Aramian motioned to recommend that the City Council approve a Master Lease Agreement Airport Terminal Office and to authorize the City Manager or designee to enter into a new Master Lease Agreement Airport Terminal Office on behalf of the Glendale Municipal Airport and individual Council action is not required. No substantive changes shall be made to the master agreement. Chair Dagostino made the second. The motion carried 5 - 0. 5. FAA Hangar Policy/Stakeholder Group Update Chair Dagostino and Mr. Potts provided an update on the progress of the Airport Rules and Regulations Stakeholder Group. Chair Dagostino stated that there was no Stakeholder Group meeting since the last Aviation Advisory Commission meeting. Mr. Potts explained that he is making progress on the Rules and Regulations revisions to include the recent suggestions by the Stakeholder Group. Mr. Potts met with the Fire Marshall and Building Code staff. Based on the meetings, it was determined that the fire and building codes would only be referenced in the Rules and Regulations, not defined. In this manner, if the fire and building codes change, the Rules and Regulations document does not have to be changed as it references adherence to current local code. Mr. Potts stated that the hangars were built with S 1 classification, which allows for minor maintenance to be conducted in the hangars. Mr. Potts explained that S2 classification would require installation of sprinklers and fire walls in the hangars. Mr. Potts announced that these distinctions will be discussed at the next Stakeholder Group meeting. Chair Dagostino inquired if light maintenance would include welding. Mr. Potts replied in the negative. Chair Dagostino asked if welding is needed for experimental aircraft. Mr. Potts stated that some welding may be needed and there are also different composites used in building experimental aircraft. Mr. Potts explained that sprinklers and fire walls will need to be added to a hangar for welding to be conducted. Mr. Potts noted that the Fire Marshall and Building Code Department would enforce their respective code requirements. Chair Dagostino noted that some hangar owners want to weld in their hangars. Mr. Potts stated that fire and building codes will need to be followed. Commissioner Escudero commented that enforcement responsibility is removed from the Airport staff and shifted to the Fire Marshall and Building Code staff. 3 Vice Chair Rovey inquired as to the timeframe for when the proposed revisions to the Rules and Regulations would be completed. Mr. Potts estimated the draft document to be ready by early March. Once the draft document is complete, another meeting of the Stakeholder Group will be scheduled. V. SUMMARY OF CURRENT EVENTS Mr. Potts reported on current airport activities: 1. Construction Projects/Grants Status o Phase I of the North Apron project has been completed and the walk-through was conducted today. The project was estimated at 45 days and was complete in 44 days. o Dibble is preparing a bid package for Phase IB of the apron project. This will include the center apron up to the north apron. The project will result in left over millings. Mr. Potts met with Airwest, who is interested in using the millings to keep down dust in the helicopter training area. o The Wi-Fi installation via Cox Communications is now available in the entire terminal building. o Mr. Potts sent the Airport Layout Plan to the Citizen's Transportation Oversight Committee (CTOC), as a follow up to a recent presentation. 2. Operating Budget/Expenses/Revenues — graphs o Mr. Potts presented detailed financial information for the month of January as well as year- to-date January. 3. Airport Business Activity/Lease Updates o Mr. Potts and Mr. Ebersole made a presentation to the CTOC regarding Airport needs and requested approval for including the Airport in the end -of -year unused transportation budget fund pool. The CTOC approved the request. Vice Chair Rovey inquired as to who makes the decisions for disbursement of the unused funds. Mr. Ebersole replied that division managers meet to prioritize needs and decide how the end -of -year funds will be utilized. Mr. Potts thanked Mr. Ebersole for taking the lead on the presentation to the CTOC and for his support of the Airport. o In January, a donation in the amount of $8,726.58 was received from the John F. Long group. Since 2014, $69,361.24 has been donated the Airport. o Starshine, a current tenant on the second floor of the terminal building, has expressed interest in leasing an expanded area of its current suite. o Mr. Potts and Mr. Ebersole will be hosting an Airport Tenant Appreciation Breakfast on March 8t'. 4. Land Use Planning/Zoning/Development o Mr. Potts explained the issue with the parcel of land on the east side of the Airport which was donated by J.F. Long. The land was donated with the stipulation that it would be used for a second runway. The FAA will not approve a second runway as the Airport operations do not support the need and the City agrees. Mr. Potts stated that negotiations regarding the encumbrance are moving forward with the J.F. Long estate and a draft agreement removing the encumbrance has been written. Once the encumbrance is removed and the deed is released, the City can move forward to develop the property. Vice Chair Rovey inquired if the second runway would ever be considered reasonable. Mr. Potts explained that based on a recent study, the current runway has a capacity of 230,000 operations and last year there were 73,000 operations at the Airport. Mr. Potts did not see the runway justified even with moderate growth over the next 20 years. Commissioner Tolby commented that more users and filled hangars would be more valuable than a second runway. Commissioner Tolby stated that there is more value in commercial development. 5. 2017 NCAA Final Four National Championship 4 o Preparation meetings continue. The reservation system is open and the FBO is receiving calls. 6. Air Traffic Operations/Airspace/Community Relations o No report. 7. Solar Panel Update o No update at this time. Commissioner Aramian volunteered to assist Mr. Potts with the effort. 8. Luke Air Force Base Operations: Mr. Padilla reported that LAFB now has forty-nine F35's. For the Final Four, LAFB RAPCON will be open to handle the traffic. Commissioner Escudero inquired about the street resurfacing program as previously mentioned by Mr. Jack Friedline and wondered if this included any areas of the Airport, such as the overnight parking lot across from the terminal building. Mr. Ebersole stated that the terminal building parking lot will be completed on March 27th; however, the overnight parking lot has not been scheduled. Mr. Ebersole stated that the south apron has severe cracking and staff is applying for supplemental general funds for the project. Mr. Potts announced that Commissioner Kruger was unable to attend this evening's meeting and called in his absence. VI. CALL TO THE PUBLIC The floor was opened to public comment. No comments were made. VII. NEW BUSINESS REQUESTS (Future Agenda Items) The floor was opened for new business requests. Commissioner Escudero suggested a presentation from the Airport cafe proprietors. VIII. NEXT MEETING TIME The next meeting date is Wednesday, March 15, 2017 at 6:00 p.m. on the second floor Conference Room of the Airport terminal building. IX. COMMISSION COMMENTS AND SUGGESTIONS The floor was opened for Commissioner comments. X. ADJOURNMENT The meeting was adjourned by consensus at 7:41 p.m. The Aviation Advisory Commission eetin Minutes of February 15, 2017 were approved at the Commission Meeting of March 15, 2017. ;r/^ Kenneth Potts, A. .E., MBA Airport Administrator 623-930-2188 5