MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS
OF THE INDIAN WELLS VALLEY AIRPORT DISTRICT
April 6, 2005

This meeting was tape recorded and the tape is on file at the airport office.

1. CALL TO ORDER

President Michael Mohn called the meeting to order at 7:00 p.m. Present: Directors Bozack, Farris, Mohn, and Rosenthal. Director Wallum arrived prior to approval of the Consent Calendar. Also present were District Manager Nancy Bass, Assistant Manager Scott Seymour, and District Counsel Mr. Scott Nave through telephone conferencing. Members of the public present were Brad Glasco, Ruth Justus, and Ann Norris.

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 March 2, 2005 and waive further reading of the Minutes.

B. Approval/ratification of the Payment Register of April 6, 2005.

C. Approval of Financial Report for February 2005.

Motion was made by Director Rosenthal, seconded by Director Farris, TO APPROVE THE CONSENT CALENDAR AS PRESENTED. Motion was passed by voice vote: 5 ayes,

4.A. REGULAR PERIODIC REVIEW OF HANGAR AND TIE-DOWN RATES

Director Mohn stated that the Lease Committee, Directors Mohn and Rosenthal, met and reviewed the current rates. Director Rosenthal reported that the committee recommends no rate increase at this time for the following reasons:

(a) The rates were increased one year ago whereas most leases at the airport are reviewed every three years;
(b) fuel and other costs are increasing at this time making flying more expensive and the airport is trying to encourage more flying;
(c) there will be another review in one year and at that time the rates can be increased.

Director Mohn added that the philosophy might be small increases frequently, rather than large ones after a lengthy period. The committee is aware that the District’s costs continue to rise, but still believes no increase should be done this year. Director Wallum asked how the increases are figured, perhaps CPI or comparisons. The response was that CPI is usually far too high, and comparisons are sometimes considered. Director Rosenthal stated that Inyokern is one of the most reasonable airports with rates in order to promote the airport. Director Farris disagreed with the recommendation, saying that Inyokern is far lower than almost any other airport in California and a 3% increase is not a significant increase which would cause an airplane owner to sell his aircraft. He believes that a 3% increase each year could be made in order to bring the rents in line, instead of waiting and having to do a very large increase. Director Bozack said that she sees Director Farris’ point. Ms. Bass pointed out that the pilots are always given a few months notice of any increase, and the effective date would be July 1. Mr. Glasco said that he is paying the rent at this time, but he believes the airport needs to increase the revenues in order to keep pace and pay the bills. Mr. Mohn pointed out that the Board could also reconsider this in three or six months. Mr. Wallum asked how much revenue the increase generates. Ms. Bass answered approximately between $2500.00 and $3000.00 per year. Director Bozack said that if the airport is to be maintained as it should be, then rates must be capable of supporting the airport.

Ms. Bozack wished to clarify for the record that more than one Director rents a hangar from the District, and the conflict of interest should be mentioned. Mr. Nave provided the explanation that because the rates are not negotiated individually, but instead apply to all tenants, there is an exception to the conflict of interest based on the "public generally" rule. Mr. Farris said that there will be fewer complaints if the rates increase annually rather than a large increase after several years. Director Wallum agreed with this point.

Director Rosenthal said that economically we are experiencing a lot of uncertainty, with the price of oil increasing greatly, and prices might be better held at present levels. Director Farris said he would agree if the rents were already at parity, but they are not. Mr. Rosenthal added, and Mr. Wallum agreed, that some reasonable measurement should be used as the basis for an increase.

Motion was made by Director Farris, seconded by Director Bozack TO INCREASE THE HANGAR AND TIE-DOWN RATES BY 3% WITH THE NEW RATES EFFECTIVE JULY 1, 2005. Motion was approved: 4 ayes, 1 no, with Director Rosenthal casting the no vote.

4.B. REVIEW/DISCUSSION/ACTION: MISSION STATEMENT, GOALS, AND MARKETING PLAN

At the March Regular Board Meeting the Board reviewed the Mission Statement and Goals, and copies with the suggested revisions were provided for final review. Following a discussion with suggestions from all Directors, it was agreed that the Mission Statement is acceptable as revised in March. At the conclusion of the discussion, the goals were revised as follows.

COMMUNITY INTERACTION: Promote and expand aviation through positive relations with commercial and general aviation, community activities, and cooperation with other agencies and the public.

FACILITIES/PHYSICAL ENVIRONMENT: Maintain all facilities in top condition for safe operations, support and expand facilities as necessary to ensure safe operations.

ADMINISTRATIVE REPONSIBILITIES/COSTS: Operate the airport effectively and efficiently, remaining within budget, while actively seeking additional revenues.

BUSINESS DEVELOPMENT/ACTIVITY: Develop, maintain, and execute a marketing plan focused on aviation business activity and promotion of unique aspects of the airport.

Director Bozack brought up a suggestion that Mr. Seymour made at the previous meeting, and she suggested that this be utilized in the marketing plan. Mr. Glasco suggested that there could be a lead-in statement to the plan stating "Inform the public about the airport, provide opportunities to celebrate aviation, and position Inyokern Airport as a modern facility in a growing region". There was agreement on this.

There was a lengthy discussion by all Directors and the members of the public on the marketing plan, with many suggestions being considered. The Board reached consensus on some of the recommended changes to the marketing plan and they are incorporated as follows, with further review at the May meeting.

Goals and Expectations:

The Indian Wells Valley Airport District plans to expand its marketing practices to increase aviation business activity at Inyokern Airport by encouraging expansion of existing businesses, recruiting new businesses, and promoting growth of business activities managed by District.

Customers and Clients, including but not limited to:

1. Commercial Businesses: Airlines service, cargo service, film industry, auto rentals, manufacturing, security, storage, aerospace industries, and building and site rentals.

2. General Aviation: pilots, student pilots, aircraft owners, flight instructors, mechanics, and FBOs.

3. Emergency Services Agencies.

4. Military/defense industry

It was agreed to remove the "Competition" section in the current plan.

Action Plan:

1. COMMERCIAL GROWTH

A. Attend conventions, conferences, and trade shows to evaluate and recruit new businesses.

B. Visit other airports to obtain new ideas.

C. Advertise industrial/commercial space available at Inyokern Airport.

D. Expand/support airline service.

This item will be continued to the May 4, 2005 Regular Board Meeting for continued review and revision by the Board of Directors prior to adoption.

During the discussion it was suggested that the staff maintain a notebook containing information on policies adopted by the Board, as well as dates of adoption. Staff agreed this is a good idea and will begin this immediately.

4.C. SCHEDULE SPECIAL MEETING

Director Mohn said that a tour of Kern Valley Airport is currently scheduled for April 8, at 9:00 am for informational purposes. Mr. Mohn and Ms. Bozack visited Meadows Field, and they find the visits to other airports very informational and interesting. They are encouraging all Directors and staff to join them in looking at other airports to get new ideas that can be put into practice at Inyokern.

Ms. Bass advised the Directors that should three or more of them meet at the same time, an agenda for a Board Meeting will be prepared and posted, and the Directors present will actually have to open and close the meeting as well as providing a public comment period. Minutes will need to be prepared.

Following discussion, it was decided to postpone this tour until after the Fly-in scheduled for April 9 in order for staff to participate. A date will be determined for this meeting but April 22 was suggested as a date.

4.D. PERSONNEL: EMPLOYEE POSITIONS

This is continued to the May Meeting when the Finance/Personnel Committee will have had to time to meet. Ms. Bozack asked for input from Directors on the notes distributed by Directors Bozack and Mohn.

5. DISTRICT COUNSEL - no report.

6. DISTRICT MANAGER

• The F.A.A. has indicated that Inyokern will receive two million dollars in grant funds, and Ms. Bass has submitted an application for the following projects: weather reporting equipment, master plan and EIR, rehab all taxiways and runways, and possibly overlay and widen runway 02/20. Now that underground fuel tanks are an eligible project, this application may be changed to reflect the airports needs. The current PFC was competed in November of 2004, and the new rate is expected to be $4.00.

• A Passenger Facility Charge application is being prepared currently to cover the matching funds for the grant, and the matching fund requirement has been lowered to 5%. The PFC application may be ready for approval by the Board at the May Board Meeting. A public hearing is necessary for this action. (There was a short explanation of the PFC requirements by Ms. Bass.) A $4.00 PFC for five years would provide sufficient matching funds for over four million dollars in grants.

• There will be a load of 100LL Av Gas delivered this week, and the price has increased $ .09 over the load received in March. Air BP estimates that the price of automobile gas will be at least $4.00 by the end of summer, and of course there will be corresponding increases to aviation fuels.

• Mr. Seymour reported on the fly-in scheduled for April 9. At this time many aircraft are scheduled to participate, including two P-51s, a number of jets, T-28s, and other aircraft. The airport continues to receive many phone calls so a good turn-out is expected. Volunteers are appreciated.

• Mr. Seymour reported that during the recent very high wind day, (wind gusts to 70 knots) the airport had a film crew on runway 10/28. Mr. Seymour said that the film crew was told the runway was needed for safe flight operations, and they immediately vacated the runway and it was returned to service.

7. COMMITTEE REPORTS

AD HOC COMMITTEE – TOUR OF MEADOWS FIELD: Directors Bozack and Mohn said that they enjoyed the tour, which was very informative. They prepared notes which include a number of ideas which might be useful for Inyokern. Copies were provided to everybody present. Ms. Bass explained that the suggestion regarding property tax revenue cannot be done as the District does not receive tax revenue, having been formed after the passage of Proposition 13. Because the airport has more than 250 commercial passengers annually, the District is not eligible for any State grant revenues.

LEASE COMMITTEE: The Lease Committee met and reported under Agenda Item 4.B.

8. PUBLIC COMMENT

Mr. Glasco is the new local Airport Support Network volunteer for the Aircraft Owners and Pilots Association (AOPA). He has received introductory information, including several videos. After he has time to review these, he will make them available to the District for their review. It was suggested that one or more of these may be appropriate for use at pilot seminars. Mr. Glasco received some congratulations and thanks for his service.

Mr. Glasco asked about the residential lots adjacent to the proposed golf course west of the field, and the possibility that the future owners may file complaints against the airport. Ms. Bass said that that property does have an avigation easement; however, they have not lost their right to complain. An education campaign about being good neighbors may be in order for pilots.

Mr. Glasco reported that on recent weekends, two pilots have asked where sectionals are available. He added that some method might be found to have sectionals and other supplies available for sale on week-ends.

Mr. Glasco also said that he recently experienced the loss, possibly theft, of some fuel from his airplane based in Hangar #1. He had also had a digital camera removed from his aircraft. Ms. Bass expressed her concern on this, and it is possible that the locks on the doors of hangar #1 may need to be changed.

9. BOARD COMMENT

DIRECTOR FARRIS: Mr. Farris thanked the members of the public for participating with their time and comments at this meeting, especially Mr. Glasco.

DIRECTOR WALLUM: Mr. Wallum volunteered to help with the fly-in and will be at the airport at 9:00 a.m.

DIRECTOR BOZACK: Ms. Bozack said that she was happy to see that the local glider community and the airport staff being supportive of the Perlan Project. Ms. Bozack is concerned that the gates provide an opportunity for unauthorized persons to enter the airfield by following another car through the gate. She suggested getting signs requesting that the vehicle remain in place inside the gate until it closes to preclude the possibility of illegal entry.

DIRECTOR MOHN: Mr. Mohn thanked everybody for their comments and participation in the discussions at the meeting. Mr. Mohn added that in future all airport tours will be scheduled for the middle of the month for everybody’s convenience in scheduling.

10. ADJOURNMENT

Motion was made by Director Farris, seconded by Director Rosenthal, TO ADJOURN THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF INDIAN WELLS VALLEY AIRPORT DISTRICT OF APRIL 6, 2005 at 9:05 P.M. Motion was approved by voice vote: 5 ayes.

Submitted by:
Nancy Bass, Executive Secretary