AUBURN-LEWISTON MUNICIPAL AIRPORT

BOARD OF DIRECTORS

AUBURN, MAINE

April 2, 2008 

The Auburn-Lewiston Municipal Airport Board of Directors meeting was held on Wednesday, April 2, 2008 at 5:30 p.m. at Androscoggin Valley Council of Government (AVCOG) 125 Manley Road, Auburn, Maine.

 Present:  Chairman Plourde

Board Members:  Lunt, Sargent, Bickford, Dycio, Smith, Reed, Thompson and Metivier.

Also Present:  Airport Manager, Rick Cloutier; HTA Representative, David Guadalupe.

 Vice Chair Lunt called the meeting to order at 5:30 p.m.

ON MOTION BY MR. REED SECONDED BY MR. SARGENT IT WAS VOTED (1) TO ACCEPT THE MINUTES OF MARCH 6, 2008 AND PLACE THEM ON FILE.

VOTE: 7:0

 TREASURER’S REPORT

 The Airport Manager reviewed the treasurer’s report with the board.  A good portion spent in legal fees will be reimbursed with the ongoing FAA projects.  Landing fees have increased slightly with the Vector collections for the airport.  This will also give valuable information to HTA and the FAA for exact numbers of landings and type of aircraft using the airport for the study involving the runway safety area and extension project currently ongoing.

 ON MOTION BY MR. BICKFORD SECONDED BY MR. REED IT WAS VOTED (2) TO ACCEPT THE TREASURER’S REPORT AS PRESENTED.

 VOTE:  7:0

 Mr. Metivier arrived.

 CONSTRUCTION OF DEUTSCHE LUFTHANSA BERLIN HANGAR

The last airport board of directors meeting, March 6, 2008 it was voted to allow Gendron and Gendron develop the hangar and the airport would lease back from the developer with an agreed upon buy back and sub lease to Lufthansa.  The lease will be finalized shortly.  The airport is looking to receive approximately $800,000 for the first 30 months with a breakout of $100,000 deposit on signing of lease, $525,000 upon occupancy of building, and $175,000 for the first 30 months up to the agreed amount of $800,000.  The lease is a triple net lease (everything is paid by the lessee including taxes, ground maintenance, repairs, etc...)  The airport will pay Gendron and Gendron $631,000 over the same 30-month timeframe.  In the first 3-years, the airport should realize revenue of $150,000.  The fourth year starts a month-to-month agreement with yearly estimated revenue of $10,000 from the lease.  The Airport Manager continues to discuss the marketing plan for this hangar with numerous interested parties, and currently the leaseholder (Lufthansa Technik North American Holding Corp) may be open to continuing the lease after the Super Star has left, and have a maintenance facility here.  Other options are also being looked into. 

 Chair Plourde arrived.

 SILVER WINGS LEASE AMENDMENT

The airport has received a letter from Mr. Pohl, owner, requesting an amendment to his current lease. 

 ON MOTION BY MR. DYCIO SECONDED BY MR. BICKFOR IT WAS VOTED (3) TO ACCEPT THE INFORMATION FOR THE FILE AND DISCUSS IN EXECUTIVE SESSION.

 VOTE:  9:0

 TAXIWAY UPDATE

Mr. Guadalupe stated the contractors are looking for a start up on the taxiway at the end of April (pending snow conditions).  Preconstruction meeting has been set for April 15 to discuss what has happened last year, what needs to happen this year to complete the project.  There is 80 working days left on the contract, the project should be completed by July, we are not expecting delays.  New REILS and runway LED lights, which will have a cost saving of over $20,000 in maintenance and operational costs over a period of ten years.  Four more airfield signs have been added to the current list.  The FAA has been processing the requests for reimbursements in a timely matter and it has been a good turnaround with the payouts to the contractor. 

 AIR SERVICE DEVELOPMENT

Jack Penning, representative from Sixel Consulting Group, contacted the Airport Manager regarding small community air service development grants.  The Airport Manager stated since he has taken this position, he has been asked numerous times when air service will return to Auburn-Lewiston.  Many discussions have taken place with Hoyle Tanner & Associates and other airports with commuter service.  There are two types of air service for airports our size, 1) essential air service grants like Bar Harbor, Augusta, and Rockland, and 2) rural community development grants.  This would be a 3-4 year grant for start up costs, small capital improvement costs, marketing service, etc….We may be a good candidate for one of these grants.  The service could connect in Boston, Cleveland, or Philadelphia.  Sixel Consulting Group, would do the research, put the grant package together for the FAA, and continue if the grant is accepted.  This would put an end to everyone’s question, and tell us if we get the grant, we get service, or if we cannot, this issue can be laid to rest and move towards other avenues.  It would cost $7,000 to $10,000 to complete the grant.  The next step is to have Sixel come out and give their presentation to the Board.

 OPEN SESSION

Keith Oliver questioned the FBO letter from Silver Wings being discussed in Executive Session while back a few months ago, negotiating the Auburn Hangar Condo lease, it was done in public session.  The Airport Manager stated, it is not only an amendment to the lease, but involves the FAA ongoing complaint that was filed by Silver Wings last year.

 ON MOTION BY MS. SMITH SECONDED BY MR. DYCIO IT WAS VOTED (4) TO GO INTO EXECUTIVE SESSION TO DISCUSS MR. POHL’S LEASE AMENDMENT FOR SILVER WINGS. 

VOTE:  9:0

 Mr. Bickford left.

 ON MOTION BY MR. THOMPSON SECONDED BY MS. SMITH IT WAS VOTED (5) TO COME OUT OF EXECUTIVE SESSION.

 VOTE:  8:0 

ON MOTION BY MR. THOMPSON SECONDED BY MR. DYCIO IT WAS VOTED (6) TO INSTRUCT THE AIRPORT MANAGER TO DRAFT A RESPONSE WITH AIRPORT ATTORNEY FINDING SILVER WINGS SETTLEMENT PROPOSAL NOT ACCEPTABLE.

 VOTE:  8:0 

ON MOTION BY MR. DYCIO SECONDED BY MR. THOMPSON IT WAS VOTED (7) TO ADJOURN THE MEETING AT 7:10 P.M. 

VOTE:  8:0

 Respectfully Submitted,

  Richard Cloutier

       Airport Manager