Director Bates led the pledge of allegiance to the flag.

A. Approval of Minutes of Regular Meeting of December, 2003 and waive further reading of the Minutes.

B. Approval/ratification of the Payment Register of January 7, 2004.

C. Acceptance of Financial Report for November, 2003 was continued to the January meeting.

D. Authorization of payment to Kern County GSA in the amount of $61,400.68 – final payment for AIP 03-06-0110-15

E. Authorization of payment to S. C. Edison Co. for line extension – AIP 03-06-0110-15

F. Authorization of payment to Mead & Hunt for engineering – final payment – AIP 03-06-0110-18

G. Authorization of payment to Division of Aeronautics for loan payments – KER-8-98-L-5 and 6 in the amount of $30,545.41

Motion was made by Director Mohn, seconded by Director Bates, TO APPROVE THE CONSENT CALENDAR AS PRESENTED. Motion was passed by voice vote: 4 ayes, 1 absent.

The report of the Lease Committee was given, and all Directors had a copy of the proposed lease agreement. Ms. Bass said that she had worked with Mr. Nave to put together a lease which is fair to both parties. The square footage rate was lowered because the site does not have airfield access. In addition to providing a justification to the F.A.A., this rate may be used as the basis for a rate on other similar property at the airport in the future. The monthly rental rate is therefore lowered to $ 687.00. Mr. Rosenthal stated that he had reviewed the lease and it was pointed out that the annual rental rate may be reviewed yearly by the Board, but that rate may not be raised without 90 day notice. There is a 90 day termination period which gives the tenant the opportunity to terminate the lease if the new rate is unacceptable. Mr. Mohn, also on the Lease Committee, commented that it is time to finalize this agreement, and he believes the committee recommendation is very fair.

Motion was made by Director Bates, seconded by Director Mohn, TO APPROVE THE LEASE AS SUBMITTED.

There was a lengthy discussion with the following points made.

Director Bates:

• Mr. Bates stated he believes the last offer was fair, and the current one is even lower.
• Considering security measures required, the Quoin operation may be a liability.
• The current proposal is more than fair.

Director Bozack:

• Ms. Bozack asked if the storage only bunkers are separated from the other site. Ms. Bass referred her to the sketch attached to the proposed lease.
• Director Bozack clarified that Ms. Sumners wants three bunkers for storage only.
• If the northerly bunker is used for storage only, it should be charged as such. But the flare testing area should also carry a charge.

Director Farris:

• Mr. Farris also clarified that currently Quoin says that three bunkers are used for storage only.
• If the northerly bunker is used only for storage, Mr. Farris believes it should be charged at the storage only cost.

Director Mohn:

• Mr. Mohn stated that the District proposal is very fair.
• Considering the years Quoin has operated at the incentive rate which is cheaper, the proposal is fair.
• Lease Committee had concerns about liability, particularly with the testing going on.
• Director Mohn can see many reasons for a higher rate, but none for a lower rate.
• Mr. Mohn does not want the matter referred back to committee.

Director Rosenthal:

• The matter has gone on too long, and asked if anybody wanted the motion amended. No reply.
• The property was re-measured as decided at the December meeting.
• Mr. Rosenthal explained the F.A.A. grant assurances and the TSA security requirements. The existing rate is not justifiable to an auditor.
• Mr. Rosenthal asked several times if the Directors were ready for a vote.
• The property between the bunkers cannot be used by anybody else.

Ms. Beth Sumners of Quoin, Inc:

• Ms. Sumners said that she realizes the negotiations have gone on for a lengthy period and she appreciates the efforts of the committee and their consideration of a different rental rate.
• Quoin does not want to pay for the property between the two westerly bunkers.
• The most northerly bunker is being used only for storage at this time.
• Ms. Sumners distributed three new proposals ranging in monthly cost from $272.50 to $445.00.
• Ms. Sumners said she thought she would be present when the site was re-measured.
• Quoin is aware that a site in town will be more expensive, but it would have utilities available.
• Flare testing goes on all the time and $55.00 a month was suggested as a charge for the testing.

Ms. Bass:

Quoin does not pay for use of the testing area in the northwest corner of the airfield.

Mr. Rosenthal called the vote, which was as follows:

Aye: Directors Bates, Mohn and Rosenthal No: Directors Bozack and Farris

The motion was approved by a vote of 3 ayes, 2 noes.

Director Rosenthal stated that if there were no objections he would maintain the same committee appointments that were already existing. After a short discussion this was done.

Mrs. Bass said that after consideration, she has prepared another alternative to a 5% increase for all employees. Ms. Bozack said that she appreciated the information that had been sent to the Directors on this matter. Copies of the new proposal were given to the Directors. Because of the difference in wages, a flat 5% increase results in one employee receiving a much larger increase than the others. The new proposal provides for a 3% increase for the manager and a 7% increase for each employee and would be a tremendous morale booster for the employees. This actually results in a slightly smaller total amount for salaries. The current budget allowed for $7000.00 in salary increases; however, the fiscal year is more than half over, so the actual amount will be less than half of that amount.

Motion was made by Director Mohn, seconded by Director Bates, TO APPROVE A PAY RAISE FOR EMPLOYEES, WITH A 3% INCREASE FOR THE MANAGER AND A 7% INCREASE FOR THE OTHER EMPLOYEES.

Ms. Bozack said she believes this is a very good idea, but she asked if the employee compensation is on track with the budget. Ms. Bass said that as of October, the total was slightly higher because of overtime for the air show, but the air show actually paid for that. Director Rosenthal said this is really overdue as there have been no raises for a very long time. Mr. Mohn agreed and said the District has a very good staff.

Motion was passed with a unanimous voice vote.

Ms. Bass thanked the Board and said that she can hardly wait to tell Scott and Richard. Ms. Bozack added that she would like the staff to know they are appreciated.

Mr. Lemieux reported that Mr. Nave had a death in his family and would be back by the next meeting.

Ms. Bass reported that the airport staff is in the process of painting the numbers on the runways, and several are now finished. The paint has so far cost only $150.00.

The Dust Devils and a film crew will be at the airport over the coming week-end. The production company is paying extra to cover the cost of the airport employees for the shoot.

Ms. Bass will attend a Labor Law seminar on January 8. There have been several changes to the law and this seminar is nearby as it is sponsored by the Ridgecrest Chamber of Commerce.

Volunteers are still needed for the Young Eagles program on January 17. The Directors were also invited for the lunch on that day.

Captain Jeff Reichman of the Kern County Fire Department is now authorized to train fire fighters for airport work. There will be three classes conducted, each three days long, for all of the local fire stations as well as other firemen who will be replacing regular employees when they are sick or on vacation. Mr. Seymour and Mr. Mayhugh will also attend a class. This training is recognized by the State Fire Marshal and the F.A.A. Arrangements are also being made to practice actual burns at China Lake.

The Lease Committee and the Finance/Personnel Committee met and reported under the business items.

Ms. Bass said it is time to see if the budget needs revised, and if so she will ask for a Finance Committee meeting.

The members of the public present were introduced to the Board of Directors.

Mr. Larry Warkentin brought up the idea of some sort of meeting to educate the pilots and tenants on the security requirements in effect at the field. He said that the airfield appears to be readily accessible to anybody, with the gates left open at times. Everybody agreed that this is a good idea, particularly since the new card controlled gates will be installed within the next several months. Mr. Warkentin said that AOPA and others are really emphasizing security on airports. Mr. Rosenthal said that perhaps there can be an e-mail distribution list for information, too. He added that perhaps there could be a link on the web page, also. Ms. Bass gave some information about the new gates, cards, and personnel gates.

Mr. Warkentin then said that perhaps there could be some encouragement for general aviation, and he pointed out that there are many questions about rental aircraft, maintenance, instructors, and other things such as aircraft ownership sharing. Ms. Bass mentioned the airport bulletin boards, but Mr. Warkentin said not everybody checks them. He suggested using the web page for things like this. Mr. Rosenthal said that FBOs at small airports are becoming a thing of the past. The web site may be perfect for things of this sort. Several persons suggested a Message Board so people can make comments that way. The Newsletter may also be used, and it could be used to tell pilots about the ability to leave messages on the web page as well as having pilots furnish information to each other. Mr. Lemieux said that software for the message board is either free or included with Front Page. Ms. Bozack said she would check with the webmaster, Mr. Bozack, and ask what is possible to do. She said that he wants content, rather than just suggestions. Perhaps people could just e-mail Mr. Bozack and ask for things to be posted.

Ms. Bass asked Mr. Warkentin and Ms. Norris for their e-mail addresses to add to the agenda list.

DIRECTOR BOZACK: Ms. Bozack asked if the letter went out to the air show people. The letter had gone out and a copy was put into the Directors boxes. Mr. Bates said that he and Ms. Bass worked together on the letter.

Ms. Bozack then gave the URL for the website for the benefit of those members of the public present.

Director Bozack inquired about the Unlawful Detainer authorized at the last meeting. Ms. Bass said that the estimated cost is from $5,000.00 to $15,000.00, and she is exploring alternatives that might be cheaper.

DIRECTOR MOHN: Mr. Mohn thanked everybody for attending the meeting.

DIRECTOR FARRIS: Mr. Farris asked if there were plans for some weather reporting equipment. Ms. Bass said that the SuperUnicom is now eligible for FAA funding and she will check to see if the last grant from the F.A.A. can be amended to include that equipment.

DIRECTORS BATES had no comments.

DIRECTOR ROSENTHAL thanked everybody for tolerating his first time being President.

Motion was made by Director Bates, seconded by Director Farris, TO ADJOURN THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF INDIAN WELLS VALLEY AIRPORT DISTRICT OF JANUARY 7, 2004 at 8:05 p.m.. Motion was approved by voice vote: 5 ayes