Morehead-Rowan County Airport Board
Annual Meeting Minutes
June 29 2017
Chairman Tim James called the meeting to order at 6:52 PM in the Terminal Building Conference Room at the Morehead-Rowan County Regional Airport. The meeting began after a BBQ dinner attended by Col. Steve Parker, Commissioner of the Kentucky Department of Aviation, State Representative Rocky Adkins, Judge Walter Blevins and other local city/county officials and friends of the airport. Other members present were Harry Clark, Tom Fossett, Aaron Roberts, Charles Derrickson, Jim LeMaster, Mike Gray, Bruce Mattingly, Porter Dailey, and Ron Oliver. Guests present include: Perry Sloan – FBO; Earl Rogers – Attorney; Bob Helton, Executive Director-Morehead-Rowan County Economic Development Council; Mark Upchurch – Garver; Charles Williams – PHI Air Medical Base Supervisor ; and Barbara Marsh – Assistant Secretary-Treasurer.
Mr. James presented the Minutes of the May 2017 Meeting. The motion to approve the May 25, 2017 Meeting Minutes was made by Mr. Clark, seconded by Dr. Derrickson, and approved unanimously.
Dr. Mattingly presented the May financials including profit and loss statements for the month and for the fiscal year (July-May). The motion to accept the May financials was made by Mr. Gray, seconded by Mr. Oliver, and approved unanimously.
Public Comment: Mr. James opened the floor to public comment.
Mr. Williams indicated that PHI was very happy to be re-locating to the airport and was grateful to the Board and Mr. Sloan for their warm welcome and assistance. He indicated that by locating at the airport they would be able to provide much improved service to the region.
Mr. Helton reported that almost every contact he makes in an effort to attract businesses to the MMRC Regional Industrial Park involve the Airport, which is a huge asset to economic development.
Mr. Upchurch reported that the Kentucky Aviation Association Annual Conference will be on September 27-29 in Lexington. Garver will again host an appreciation dinner and invited everyone to the dinner.
REPORTS
FBO Activity Report. Mr. Sloan reported on fuel sales, maintenance, and Airport activity.
- 100LL Fuel Truck Meter Repair. The truck has been repaired and is operational.
- Fuel Sales in April were 1203 gal. of 100LL and 2446 gal. of JETA fuel.
- Replacement Light Fixtures on Hangar. All replacement light fixtures have been installed. One additional light was found to be broken and will be replaced.
- The third mowing of the airport has been completed for the year and everything appears to be in good shape. Mr. Sloan thanked Mr. John Holbrook for his generous assistance in installing the light fights and with mowing.
- There will be an EAA Pancake and Sausage Breakfast on July 1, 7:30-10:30am.
- Incident on Field. A Cessna 303 plane landed gear up with no injuries to the pilot.The incident was reported to theFAA. Reporting procedures in the future should include the KAA also.
Garver Report. Mr. Upchurch, PE
State Project – Runway End Identifier Light (REIL) System Replacement Project
State Project – Fuel Farm Rehabilitation Project
Federal Project – Apron Reconstruction and Drainage Improvement Project
1 Runway End Identifier Light (REIL) System Replacement Project.
a. 100% State Funded
b. TEM Group, the successful bidder, has sent in all paperwork necessary and the project is ready to go. The runway will be closed for up to seven days for completion of the project. The project will be completed concurrent with the Apron Recon/Drainage Improvement project to limit inconvenience to airport traffic and tenants
2. Apron Reconstruction and Drainage Improvement Project (Trench Drain).
a. At the pre-bid meeting, several companies attended. At the bid opening, only one bid was received from ASL Excavating Inc, Flemingsburg, KY for $328,183.26. A review has been conducted and after consideration of bid bond and insurance requirements, an award recommendation letter has been prepared. Mr. Farmer, KDA Transportation Engineer Branch Manager, has said KDA is prepared to cover any funding shortfall up to $100,000.
Breakdown of Projected costs:
$3,500 PDC IFE Review
$45,700 Garver Admin, Design, Bidding
$49,900 Garver CA, CO, Testing, Closeout
$340 Advertisement for Bid
$328,183.26 Construction Contract Value (base bid)
$427,624 Total Project Cost
Funding Summary
$330,470 Federal Grant (90%)
$27,540 State Grant (7.5%) to FAA Grant
$9,180 Local Match (2.5%) to FAA Grant
$70,430 State Grant (100%) pledged to cover any shortfall
$437,620 Total Funding
b. For ASL Excavating Inc., Mr. Gary Shannon prefers to start in August if possible. The project is expected to require up to 30 days for completion. During this time, tenants in hangars A6 –A12 will be unable to remove (or return) their plane from(to) their hangar.
c. Dr. Mattingly will send a letter to all tenants about the airport closure.
3 Fuel Farm Rehabilitation Project
a. The Fuel Farm Rehab Project application is submitted for FY18. Garver will draft specs and get bids.
b. Requesting $20,000 for 100% State only funded project.
Buildings and Grounds. Mr. Oliver – Chair, Dr. Derrickson, and Mr. Clark
- Facility Update. Mr. Oliver surveyed the runways, walkways, and grounds to assess conditions.
The apron/parking area looks good.
–Runway End Markers are fading badly and need to be re-painted.
Others commented that Central Seal Company painted the markers in 2015.
– Runway/taxiway: Seal coating still looks good.
–Gravel Parking Lot Damage. The gravel parking lot was graded and is in good shape.
– Seed demonstation project: For the most part fail to yield grass.
–Access Road to PHI. Would like to upgrade the road to the DWMH.
–Water Seepage. There is a ground fed spring on the property. A plan of action includes
digging it out in the spring and placing riprap rock in the area. Mr. Roberts will speak to
Mayor Trent about receiving help on this project.
–Electrical. There will be additional electrical needed in the future. A new pad will be poured
for the PHI helicopter needs. They would like it in the corner of the yard. There may need to
be a spotlight on the corner of the hangars. The committee will work with Mr. Williams to determine needs and solutions.
–PHI Shed 12×20’. PHI would like to have a shed erected near the DWMH.
–Needs at DWMH. The committee will work with Mr. Williams to address needs for the DWMH and the Shed.
- MSU Hay and Organic Material Update. Hay will be cut and harvested soon, and manure will be
spread. Hay will be bush hogged (and left for organic matter) but will not be harvested for hay after the Fall cutting.
Legal Report. Mr. Rogers
- Kevin Mays Hangar Rent Delinquency $1502. Filed action – served. Between now and the 15th, can file garnish/liens.
- Fannin Easement Access. Mr. Blair was informed of the decision to grant access.
Communications and Security. Mr. Roberts
- T-hangar Light Replacement. Nine fixtures have been installed on the hangars. One fixture had a broken lens. A replacment lens is not available. A new light fixture will be ordered. The next question is how much other lighting do we need? There are still 4 lights out on the Terminal building. After these are replaced or repaired, an assessment will be made after dark. Mr. Roberts will work with Buildings & Grounds on the lighting necessary.
- Update on Lock Replacement. Mr. Clark and Mr. Roberts met with Rowan County Road Dept. about the signs to be ordered. They will also help install the signs. Locks will be ordered after the installation. The pilot lounge door code has now been restored to the previous settings.
Chair Report: Mr. James
Apron Recon/Drainage Improvement Project (Trench Drain). The FAA is expected to extend a grant offer in mid-July for the repair of the apron/trench drain. A motion to give the Chairman authority to execute a contract for the Apron Reconstruction/Drainage Improvement Project and REILs project (if necessary), which may run concurrently, was made by Mr. Clark, seconded by Dr. Mattingly, and approved unanimously.
OLD BUSINESS
None
NEW BUSINESS
a. Approval of 2016-17 Amended Budget. The motion to approve the amended FY17 budget was made by Dr. Derrickson, seconded by Mr. Oliver, and approved unanimously.
b. Approval of 2017-18 Budget. Dr. Mattingly presented the proposed FY18 budget. Hangar occupancy was budgeted at 90% occupancy. There are four end hangars (half hangars) which are not presently leased. Two of the hangars are available for lease. The motion to approve the proposed FY18 budget was made by Dr. Mattingly, seconded by Mr. LeMaster, and approved unanimously. We ended up with a projected $41,000 carryover. In a previous meeting, we discussed the need for a depreciation reserve fund. Dr. Mattingly proposed that “the Board create a Depreciation Reserve Fund for the replacement of existing assets or the acquisition of new assets to support the Airport. The Fund shall be generally restricted for the intended purposes but may be accessed to meet emergency operational needs if recommended by the Treasurer, approved by the Executive Committee and ratified by the Board. It shall be the intent of the Board to transfer funds to this Fund annually as part of its annual budget process in order to maintain an appropriate level of funding to meet the Airport’s asset replacement needs”. The motion to create a Depreciation Reserve Fund by Dr. Mattingly, was seconded by Mr. Clark, and approved unanimously.
c. Approval of Financial Institutions. Dr. Mattingly reported that we have received very good service from The Citizens Bank for our operational accounts and The First National Bank of Grayson carries a line of credit of $27,000. The motion to approve The Citizens Bank and First National Bank of Grayson as our financial institutions was made by Mr. Dailey, seconded by Mr. Oliver, and approved unanimously. Mr. Clark requested information about non-profits and SPGEs (Special Project Governmental Entity) and their attestation yearly reporting. We are not required to have an annual attestation because our income as a non-profit is less than $500,000 a year. We do have to have an audit every four years. Our next audit is due in 2019, twelve months after the close of the fiscal year.
Special Project Governmental Entity Audit/Attestation Engagement Requirements
? <$100,000 = Attestation
Engagement – every 4 years
? $100,000-$499,999 = Audit –
every 4 years
? $500,000 and up = Audit –
every year
d. Election and Installation of Officers. Derrickson, Chair of the Nominating Committee,
reported that the Committee consisting of Mr. Gray and Dr. Fossett, carefully considered all members of the Board in the selection of a slate of officers to lead the Airport Board in FY18. He reported on the improvements to the Airport made by the current officers during their past tenure, citing countless hours being spent behind the scenes by this group, and that Mr. James had a “full time job” as Chairman of the Board. In addition, the positive working relationship with federal, state, county, and city leaders, as well as local economic and business leaders has contributed to the success of our regional airport.
The motion to close the nominations was made by Mr. LeMaster, seconded by Dr. Derrickson, and approved unanimously. The motion to approve Mr. James as Chairman, Mr. Dailey as Vice Chairman, and Dr. Mattingly as Secretary-Treasurer, was made by Mr. LeMaster, seconded by Dr. Derrickson, and approved unanimously.
ADJOURNMENT