NOTE: This meeting was tape recorded and the tape is available
at the airport office.
1. CALL TO ORDER
President Russ Bates called the meeting to order at 7:00
p.m. Present: Directors Bates, Bozack, Mohn, and Rosenthal.
Directors Farris was absent; however he arrived during the
discussion of item 4.A. Also present were District Manager
and District Counsel Scott Nave through telephone conferencing.
2. PLEDGE OF ALLEGIANCE TO THE FLAG
Director Mohn led the pledge of allegiance to the flag.
3. CONSENT CALENDAR
A. Approval of Minutes of Regular Meeting of November 5,
2003 and waive further reading of the Minutes.
B. Approval/ratification of the Payment Register of December
3, 2003.
C. Acceptance of Financial Report for October, 2003.
Mr. Mohn asked if the financial reports indicated that the
District is on budget. Ms. Bass responded that the airport
is reasonably on budget. The wages are somewhat high because
of overtime, but the air show payment covers most of that.
Motion was made by Director Rosenthal, seconded by Director
Mohn, TO APPROVE THE CONSENT CALENDAR AS PRESENTED.
Motion was passed by voice vote: 4 ayes, 1 absent.
4.A. APPROVAL OF LEASE BETWEEN DISTRICT AND QUOIN,
INC.
A meeting was held on December 1 with Ms. Sumners of
Quoin, Inc. and at that time the staff put together another
proposal at the direction of the lease committee, and Ms.
Sumners presented a new proposal. Information regarding the
proposals was provided to the Directors. Ms. Bass stated
that revisions are being made to the lease agreement, and
although conceptual approval of an agreement can be done
at this meeting, the formal lease would be approved at the
January meeting. Ms. Sumners and Ms. Wilson, representing
Quoin, arrived at this time, as did Director Farris.
Mr. Mohn explained that the lease committee met with
Ms. Sumners and went over the lease provisions including
rates. Ms. Bass prepared the new proposal at the direction
of the committee. Ms. Bass stated that the new proposal allows
for two of the bunkers to be charged at the standard annual
rate for storage bunkers. The other two bunkers, where the
actual work is performed, were then included in a site charged
at the square footage rate. Ms. Sumners proposal is the same
for the storage bunkers, but provides for a smaller area
for the two bunkers used for the manufacturing.
There was a discussion about the various proposals.
Director Bates asked the lease committee if they would prefer
to continue the item to the next agenda in order to have
time to review and consider the new proposals. Mr. Mohn and
Mr. Rosenthal responded that they would like to do that.
Ms. Bozack asked some other questions about the differences
in the proposals, and Ms. Bass provided information as to
how the sites were measured. Ms. Sumners and Ms. Bass agreed
that the figures were estimates and there has been no actual
measurement done yet. Ms. Bozack reminded the Board that
previously there was discussion about leaving property between
the sites which would not be usable by another tenant. Mr.
Rosenthal and Mr. Mohn said that they would attempt a more
accurate measurement. Ms. Bozack then brought up the date
that the new rate would be effective, and it was stated that
this matter is up to the Board and the lease will so state
when it is approved.
Mr. Bates apologized to Ms. Sumners for the delay, but
he believes it will be more fair to consider the proposals
properly. Ms. Sumners then apologized for the delay as she
was out of the country for a period and then very busy with
the fires in Southern California. She stated that the District
has been very generous by keeping the rate low in the past,
and Quoin has enjoyed a good relationship with the District.
She added that Quoin is a small company heavily dependent
on the fire season, and their use of the facility for manufacturing
is seasonal only. The company is willing to pay for four
months in advance at their proposed rate should it be accepted,
as an offer of good faith. Ms. Sumners also provided information
about the business of making and selling the product. One
of her concerns is the possibility of the discussion resulting
in an unacceptable lease rate, with Quoin unable to give
notice of termination in the interim. This could result in
a large payment owed by Quoin.
Mr. Rosenthal pointed out that the District is subject
to audits and there must be a record of the reasoning used
by the Board in arriving at an appropriate lease rate or
they may be subject to various penalties and sanctions. He
added that the parties have waited this long, and one more
month is not a big difference. Ms. Bozack agreed that the
committee should check things over, but perhaps the District
could accept the four month payment and make the rate effective
December 1 in appreciation for the cooperation Quoin is giving
the District. Ms. Bass said it really doesn't matter whether
the payment is made now or in January.
Director Farris said the new numbers should be verified,
but the Quoin proposal appears to be fair. Ms. Sumners repeated
that Quoin is concerned about a retroactive rate that is
a large increase from the previous one. She said that if
a party actually wanted to lease the space between the working
bunkers, Quoin would like the right of first refusal to lease
the property.
Mr. Bates again stated that the committee needs to review
the proposals but the square footage rate does need to be
in line with other leases at the airport. Mr. Rosenthal said
that the Board appears to be in agreement that they need
to specify exactly what the property is. He does not believe
an agreement should be approved at this meeting as it will
need to be revised. Mr. Mohn agreed with that statement,
and Mr. Bates said there is no compelling reason for haste.
Ms. Sumners then said she would appreciate it if the entire
lease would then be effective January 1. The Board indicated
they would consider this request fairly.
The item is continued to the January meeting.
4.B. REQUEST OF KERN COUNTY AIR SHOW FOR REFUND OF FUNDS
PAID
A letter was received from the Kern County Air
Show requesting refund of $1000.00 of their payment to the
District for the air show event, and also to not be charged
for the $301.00 overage on costs. The finance committee met
and discussed the request. Mr. Bates reported for the committee
that their recommendation is to abide by the agreement signed
by both parties. There was a question about the use of the
word "refundable" and it was explained how the
agreement worked. Mr. Rosenthal asked Mr. Nave if, because
there was a contractual agreement with the Kern County Air
Show specifying the payment, a refund of a portion of the
fee would represent a gift of public funds. Mr. Nave stated
the refund would indeed be a gift of public funds, and hence
illegal. Mr. Mohn stated that his concern was identical;
staff time cannot be provided for an organization at no charge.
Mrs. Bozack asked if she could make a motion. Mr. Bates
advised that the motion must be in accordance with the advice
of District Counsel. Ms. Bozack then read a lengthy motion
requesting a response be sent to the air show with specific
items included in the letter. There was no second to the
motion. It was explained that the Board may simply direct
staff, with President Bates, to write a letter of response
to their letter addressing the statements made in the Air
Show letter. Ms. Bozack said she believes it is important
to respond to the letter with the direction of the Board
and answer the questions therein. Mr. Bates said he has every
intention of responding to the letter, but he has an issue
with "partnering" with the air show as there is
a question of liability to the District. Ms. Bozack said
that the event sponsor may request the District to partner
with the air show, as mentioned by Ms. Farris in her letter,
but it would need to be requested and reviewed in advance.
Mr. Bates said a letter would be written containing
the appropriate responses.
Motion was made by Director Mohn, seconded by Director Rosenthal, TO
CARRY OUT THE CONTRACTUAL OBLIGATIONS IN THE AGREEMENT
WITH THE KERN COUNTY AIR SHOW AS PREVIOUSLY AGREED BY THE
BOARD.
Vote: 5 ayes, 0 noes.
