MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE INDIAN WELLS VALLEY AIRPORT DISTRICT
MAY 5, 2004

NOTE: This meeting was tape recorded and the tape is available at the airport office.

1. CALL TO ORDER

President Dave Rosenthal called the meeting to order at 7:00 p.m. Present: Directors Bozack, Mohn and Rosenthal. Director Farris arrived immediately after the Pledge to the flag. Director Bates was absent. Also present were District Manager and District Counsel Scott Nave through telephone conferencing. Mr. Jim Kidrick was present representing the Kern County Air Show.

2. PLEDGE OF ALLEGIANCE TO THE FLAG

Director Bozack led the pledge of allegiance to the flag.

3. CONSENT CALENDAR

A. Approval of Minutes of Regular Meeting of April 7, 2004 and waive further reading of the Minutes.

B. Approval/ratification of the Payment Register of May 5, 2004.

C. Acceptance of Financial Report for March, 2004.

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

4.A. AGREEMENT WITH KERN COUNTY AIR SHOW FOR 2004 EVENT

Director Rosenthal introduced the agreement and some changes were noted in the contract as it was sent out. Mr. Rosenthal and Mr. Mohn, members of the Lease Committee, both commented on the agreement and recommended approval as submitted. Clarification was made on the verbiage of some items, including sections 6 and 9. Mr. Mohn noted that the agreement is almost the same as last year's. Mr. Kidrick gave a presentation and described the benefits to the airport and community by holding the annual show.

The event sponsors need to keep expenses as low as possible in order to be able to continue doing the show.

• He said that the student competition will be larger this year, providing opportunities for interesting young people in aviation.
• The event does not make money.
• The airport and its services are shown to people who might otherwise not visit.
• There will be no night show or fireworks this year, reducing the time the airport is used for the event. There will probably not be any need for lighting this year due to the early event ending.
• The event volunteers will be available to do work done by District employees in the past to reduce workload and cost to event.
• A booth may be made available to the District to be staffed by airport volunteers.
• Event volunteers will be available to assist with security requirements.

Set-up and clean-up went very well last year on the day before and day after the event.

The military at China Lake is cooperating this year and may have more equipment on display.

The airport can look at the event as an airport event, too.

Mr. Rosenthal stated that the work the day of the show is negligible compared to how much effort has been
done beforehand. Director Rosenthal mentioned that the event ads state the air show is held at Ridgecrest, which doesn't promote Inyokern Airport. Mr. Kidrick explained the reasons for the name Kern County Air Show.

Mr. Mohn said it is apparent that the volunteers do a great deal of work for the event and he believes the event is worthwhile. He added that the staff of the District cannot be directed to work for anybody else, as the funds for use on airport are a public trust. It is necessary to justify use of airport assets and there must be a fee charged for use of the facility. Tangible or financial benefits to the District are negligible with the event, regardless of whether the Directors like the show.

Ms. Bozack agrees that the airport is promoted by the event, but she cited other events which also promote the facility and still pay fees.

Other points made:

• The District does not receive tax revenue but must exist on fees earned.
• Charges to the event for security in 2003 were for personnel needed because of the event not providing the required barricades.
• There was not enough coordination last year between the event and the airport. This year the District staff needs to be included in pre-event planning.
• There was no overtime paid for the night before the event, as the airport manager and one Director were the only airport personnel working so there was no charge for their services.

Director Farris said that the airport needs to be part of the event team and work with the sponsor to reduce
costs to both the event and the airport. The District can consider lowering the base fee on that basis, being aware that the event is helping promote the airport. Director Bozack pointed out that as a “partner” to the event, the District cannot change the financial picture. She added that this should have been brought up before the announcements and other planning had been done. It was pointed out by others that the District cannot be a co-sponsor due to liability.

Director Rosenthal said that fees are charged all airport users in order to maintain and improve the facility, and the Board has to look at the event from that standpoint. There was a short discussion about the difference between the air show and other airport events such as filming and drag racing. The Directors said that the District needs to at least break even. It was mentioned that the only thing the airport has to sell is fuel and ground. During the last few years the District has had to refuse four million dollars in grants because they lacked matching funds. When the airport does something at no charge, every user and tenant at the airport has to pay for it. Ms. Bozack added that all the airport users who pay fees do not just pay for their charges, they pay for the entire operation and improvement of the field, such as paving , the beacon, the utilities, matching funds, and other expenses.

Motion was made by Director Farris to reduce the base fee to $2,000.00 and charge actual costs over that. Mr. Farris added that staff should work with the event staff to keep expenses at a minimum. There was no second.

There was additional discussion by all present, again looking at points brought up previously. The booth space may be used by the District, but they could pay the event for that space. It was also pointed out that the rate was drastically reduced after the first year once the District had a better idea of their costs.

Ms. Bozack asked for clarification on the statement regarding deposits being paid by a specific date. Ms. Bass explained that the deposit is not the fee for using the airport, it is for damages etc. and is refunded if not used. Ms. Bozack also is concerned about the fact that some fees and documents were not submitted on time last year, and she inquired about late fees. Mr. Kidrick agreed they have been tardy, but they did pay all of the fees. Ms. Bass said that the late fee was not as worrisome as late permits and documents.

4.B. ESTABLISHMENT OF BASE SIZE FOR TIE DOWN SPACE

The Lease Committee discussed this and concluded that if a base size for a tie-down space is determined, it will be easier to figure the charges for hangar construction in the future, avoiding problems as have been evidenced with another large hangar in the south hangar area. Because aircraft are not all the same size, the committee reviewed various sizes and is recommending a 45’ x 45’ size, for a total of 2025 square feet. Director Mohn said that the committee looked at how the other hangar at the south site was charged, and the tie-down rate was utilized.

There was a discussion about various private hangars at the airport and their rental rates. Director Bozack expressed her concern that there will still be differences in rates if square footage is used which could be construed as discriminatory. There were comments regarding reasons for some differences, such as economy of size and hangar layout. The result of the discussion was that although there were disparities in the past, this will be avoided in future with approval of the base size. As leases come to the end of their terms, they will be all be brought into line with the standard size as to rental rates.

Ms. Bozack converted the sizes to square footage and found that the rates per square foot at the south site ranged from $.0109 for a 7700 foot parcel and $0207 for a 4550 foot parcel. She suggested that the rate should be lowered to make them all the same. Mr. Mohn brought up that the south site is different than the smaller sites rented by the Spencers, Mr. Watkins, and Mr. Tharp. Ms. Bass added that if the rate is lowered, the tie down rates must also be lowered.

There was a lengthy discussion on the same points already stated.

Motion was made by Director Farris, seconded by Director Mohn, TO APPROVE A SIZE OF 2025 SQUARE FEET AS THE BASE FOR TIE DOWN SPACE. Motion passed with 3 ayes, 1 no (Director Bozack), and 1 absent.

4.C. APPROVAL OF GROUND LEASE: WILLIAM HICKLE APPLICANT

Mr. Hickle has obtained a hangar which is 40’ x 60’ and he has requested a ground lease in the south hangar area for building construction. Using the tie-down rate as established at this meeting, the space he requires is 2 ¼ spaces. Mr. Hickle will also be required to pave from the front of the hangar to the existing taxilane, comply with all requirements for building permits and other permits required by Kern County, and provide any utilities he desires or requires at his expense. A standard ground lease for hangars will be utilized and reviewed by District Counsel.

Motion was made by Director Farris, seconded by Director Bozack, TO APPROVE A LEASE WITH WILLIAM HICKLE TO CONSTRUCT A HANGAR IN THE SPACE RQUESTED. Motion was approved by voice vote: 4 ayes, 1 absent

4.D. APPROVAL OF FISCAL YEAR 2004-2005 BUDGET

The Finance and Personnel Committee met and reviewed the proposed budget. They are now recommending approval as submitted.

Director Mohn asked about the fund for continuing education for directors. Ms. Bozack responded that the amount has been decreased, but there is still some money for this purpose and she suggested that rather than send a Director to a seminar, the money might be spent to have somebody come and address the Board on a subject of interest. Ms. Bass suggested possibly having somebody come and explain the assurances, for example. Directors can suggest ideas for this. The fund could also be used to pay for tickets to the Economic Outlook Conference or some other class or presentation. Mr. Nave was asked if the fund could be used for expenses for somebody to come here, and he said it would be a legitimate expense.

Ms. Bass pointed out that the figures for fuel may change due to the constant price changes, but the profit would remain the same.

Ms. Bozack asked that all Directors review the budget considering how to increase income to the District. She mentioned the sale of oil as an additional revenue source.

Motion was made by Director Bozack, seconded by Director Mohn, TO APPROVE THE FISCAL YEAR 2004-2005 BUDGET AS SUBMITTED. Motion was approved by voice vote: 4 ayes, 1 absent.

4.E. APPROVAL OF PURCHASE OF COPIER

This item was continued to the June agenda.

5. DISTRICT COUNSEL

District Counsel had no report.

6. DISTRICT MANAGER 

• Kern County has approved payment of the matching funds for the fire truck. Deputy Chief Cody is checking the specs to ensure compliance with the bid and following that a purchase order will be issued.
• The segmented circle has been rehabilitated, weeds gone, etc., and Mr. George Bertrand generously loaned some equipment to complete this.
• Mr. Kinder has noted that the District and the Fire Department are using the storage unit at no charge, thereby depriving him of income. Ms. Bass said that she had not thought of that because Mr. Kinder did not have the unit rented out but was using it for his own storage. The Fire Department and the District have discussed this and will each pay half the rental on an annual basis.
• Airport staff has been doing asphalt patching in a number of locations to decrease cracking in the paving.
• Tours are still in progress, with many of the classes touring both the airport and the fire station.

7. COMMITTEE REPORTS

LEASE COMMITTEE: The committee reported under business items.

FINANCE/PERSONNEL COMMITTEE: The committee reported under budget. Ms. Bozack reported that the
committee discussed the manager performance evaluation which will be on the agenda in June. There will
be no forms, just comments made to Ms. Bass in closed session.

SAFETY/SECURITY: Ms. Bass reminded them as well as other Directors of the presentation by TSA scheduled
for May 7 at 11:00 a.m. and they may come and view it with staff.

8. PUBLIC COMMENT

There was no public comment.

9. BOARD COMMENT

DIRECTOR FARRIS: no comment.

DIRECTOR MOHN: Mr. Mohn reminded the Directors that election sign up begins July 12.

DIRECTOR BOZACK: Ms. Bozack said that she enjoyed the open house and ribbon cutting at the Fire Station. She said that one of the firemen mentioned a problem with the road Ms. Bass said that she already explained to the Fire department that they need to ask for repairs from the Kern County Road Department.

DIRECTOR ROSENTHAL: Mr. Rosenthal said he appreciated comments from everybody on the air show, and he thinks Mr. Kidrick did a good job with the information to the Board.

10. ADJOURNMENT

Motion was made by Director Bozack, seconded by Director Farris, TO ADJOURN THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF INDIAN WELLS VALLEY AIRPORT DISTRICT OF MAY 5, 2004 at 8:45 p.m. Motion was approved by voice vote: 4 ayes, 1 absent.

Submitted by:
Nancy Bass, Executive Secretary