Airport Advisory Commission

Regular Meeting of the Airport Advisory Commission Roswell Air Center Conference Room Tuesday, July 2, 2024, at 1:30 PM Notice of this meeting given to the public in compliance with Section 10-15-1 through 10-15-4 NMSA 1978 and Resolution 24-23. 2. Roll Call The meeting convened at 1:36 p.m. with Chair Kunkel presiding; Vicechair Espiritu, Commissioner Hitchcock, Commissioner Powell, and Commissioner McDonald being present. Staff present: Jennifer Griego, RAC Director; Jenna Lanfor, RAC Deputy Director; Michelle Sanchez, Property and Contracts Coordinator; and Della Andazola, Deputy City Clerk. Guests present: Robert Sherman, Matt Thomasson, Amy Butler, and Michael Garcia. Guests via GoToMeeting: Shawn Jipp. Kendrick Dane, Jessica Callow, and 4 others without names listed. 3. Approval of Agenda Commissioner McDonald moved to approve the agenda with the following amendment: on non-action items, start on item 12 until Jennifer Griego, RAC Director, arrives; adding (3) non-action items: #25 Discuss insurance problems with tenants; #26 meeting conflict with Finance Committee; #27 FAA reauthorization; and renumbering the last two action items to continue sequence. Commissioner Hitchcock was the second. The voice vote was unanimous and the motion passed 5-0. 4. Approval of minutes from June 4, 2024. Commissioner Espiritu moved to postpone the minutes to the next meeting to make the necessary changes required. Commissioner Powell was the second. The voice vote was unanimous and the motion passed 5-0. 12. Update National Championship Air Races (NCAR) Vicechair Espiritu provided an update. They are still getting a lot of press across the country for making Roswell the home for NCAR. NCAR is not going to move its offices here for at least the first year, the end of May or early June 2025 will be the pilot certification school. Every pilot has to recertify which will bring a lot more people to Roswell. They are working on 2025, 2026-year military acts. No exact dates on NCAR, we just know sometime in September. NCAR’s last show is October 4-6, 2024 in Reno, NV. EDC has organized a team of 12 to learn about how the airshow is operated. RARA is working on a course layout for next year's show in Roswell. Xcel Energy has already donated 30 power poles. The city has already drafted an MOU with RARA. 13. Proposed Large Aviation Hangar Update City Attorney was not present, Vicechair Espiritu provided an update. The hangar is going to be 200,000 sq. feet. The proposed developer wants to look into a general aviation complex and possible RV parking. For The Record: Commissioner Hitchcock stepped out at 2:02 p.m. and returned at 2:03 p.m. 14. Aviation Museum Vicechair Espiritu presented this update. Anticipated construction to begin in early 2025. It is named Project Quinton and is expected to have a full indoor/outdoor museum. 15. SE Waterline Update Engineering was not present to provide an update. Jenna Lanfor, RAC Deputy Director, did state that they are currently working on Phase 2, Phase 1 is complete. For The Record: The Commission experienced technical difficulties at 2:14 p.m. and the meeting was stopped. For The Record: The meeting reconvened at 2:26 p.m. 16. Building 1081 update City Project Manager was not present, Jenna Lanfor, RAC Deputy Director, provided an update. Identified cost estimates needed for life safety systems and HVAC. 17. Insurance Claim Wind 2024 Mac Rogers was not present, Jenna Lanfor, RAC Deputy Director, provided an update. Due to recent rain some water came through on one of the bases? They are currently still dealing with water getting into the building. Mac Rogers, Project Manager, is the lead on this and has more information regarding it. 18. Update Insurance Claim Hail 2021 Jenna Lanfor, RAC Deputy Director, provided an update. Did a final walk-through on Hangar 85 with AerSale and White Rock. Allen Roofing was able to complete all their projects, except for 15% of the DOT building 735. The green metal roof is not completed but is adequately completed, so the project can be closed out with the insurance company. Hail 2021, other than receiving payment, minus the 15% on the DOT building. 19. Update Insurance Claim Wind 2023 Jenna Lanfor, RAC Deputy Director, provided an update. NM Youth Challenge building has been completed and processed and we have received payment from the insurance company for reimbursement for work done. There are 4 other buildings tied to that claim but 3 with significant damage. Dean Baldwin metal on 1083, Hangar 84’s front face of the building with the windows that were blown out, and Hangar 85 had a few items of metal that were blown off the exterior side walls that were in that claim as well. The insurance company is working with the contractor directly to do a direct pay to them to avoid any further delays. 20. Update on Vacant Properties Jenna Lanfor, RAC Deputy Director, provided an update. Michelle Sanchez, RAC Property and Contracts Coordinator, has finalized the lease with BRAVO-3 for a bunker that now falls under the new amended city ordinance that allows city staff, management, and attorney to proceed with the small leases with a term of a year or less. There is no longer a requirement to get approval from City Council. BRAVO-3 will be taking an additional bunker so they will be residing in bunker 1133 and have added bunker 1143 to their leases. There are two vacant bunkers, one with a roll-up door only good for storage and one available and eligible for ATF rating. PAC-Blue was going to vacate 755 but decided to stay and lease the building for another year. Building 93, the old cookie factory, is currently being occupied by American Red Cross on a use of facility lease agreement (30-60 days at $225 a day. ROW did have to fix a toilet and a water leak for that building. They are using it as a distribution warehouse. FEMA has taken over 2 locations at the Airport. Building 611 is under a letter of agreement with the City and FEMA for emergency response. They have 30 days to get into a lease. They have agreed to $9 a square foot for a 1-year lease. They will pay utilities and maintain janitorial, and the city will maintain the exterior yard area. And any repairs that need to be done on the building. The other location will be at the SE corner of the Air Center. It’s a FEMA responder village which consists of 9 acres. It can house up to 300 people, and they anticipate it housing up to 100. They will be paying 10 cents per square foot for the land lease. 21. Vacant Property Marketing Plan This item was discussed with item 20. 22. Lease Summary Report Jenna Lanfor, RAC Deputy Director, provided this report. Red Mountain Arsenal lease has been discussed with the tenant. They cannot get into a lease negotiation until they get their account in good standing and have gone into hold over status. AerSale Hangar 85/AOA Land is listed as an expired lease. AerSale is waiting on an appraisal. The appraisal was requested by the tenant and is being paid for by the tenant. For The Record: Michelle Sanchez is now the new Property and Contracts Coordinator for the Air Center. Summit has a renewal and is awaiting signatures. There was a misunderstanding which was cleared with the tenant. There have been letters sent to Ascent to vacate the property, but they have not left yet. 23. Quick Books migration to Tyler Munis Jenna Lanfor, RAC Deputy Director, provided an update. Tyler has a function that the Finance department manages those locks permissions out for a certain amount of time so that the staff does not go in and manipulate numbers, which results in not allowing them to enter invoices. Finance and IT are working to give them permission, so they are able to get their invoices out to the tenants for rent, parking fees, etc. Going forward, any balances that remain on QuickBooks will be moved to Tyler so that they will be billed as such. Commissioner Hitchcock suggested showing deposits made on statements given to tenants. 24. Auto Hangar Update Jenna Lanfor, RAC Deputy Director, provided an update. Councilor Heldenbrand amongst others did not like the location chosen for this hangar. They went back to the individuals with Auto Hangar and were given a new location. Jenna presented a photo showing the 1st and 2nd Phase with the new location. The Commission discussed the new location and the phases. Chair Kunkel wants to schedule a meeting with the Councilors to discuss this location to continue to accommodate the developer. Armstrong engineer has agreed to do a layout. 25. Discuss insurance problems with tenants Chair Kunkel stated he received an email from CAVU that they have no desire to pay last year’s insurance. The Air Center has pulled an aging report regarding unpaid insurance and the larger amounts have been sent to the City Attorney and the smaller amounts they have attempted to collect. The larger amounts are with CAVU and Dean Baldwin, which the City Attorney will need to handle due to litigation with those tenants. Staff were directed to advise tenants that the City was working on a possible RFP to possibly get additional insurance carrier options for the tenants. Chair Kunkel suggested that a meeting be held with those disgruntled tenants and the City Attorney. Jenna Lanfor, RAC Deputy Director, stated that they have an anticipated premium list, and are working with the City Manager to create a template letter to send to tenants to show our premium list and anticipated costs as the city does not have the bill yet. Once the city receives the bill, the price may change. The city is billing the insurance monthly based on that anticipated premium and will adjust as soon as the city receives the final bill. 26. Discuss meeting conflict with Finance Committee No discussion on changing the AAC meeting. Information was given to Chair Kunkel that Finance Committee moved their meeting this week to accommodate the Holiday and it was not a permanent change. 27. FAA Reauthorization Update Commissioner Hitchcock provided an update. Two weeks ago, Gary Foss sent out an update that Congress has to authorize funding every year. The update said they did not fund any of those grants that were in the act for the upcoming fiscal year that begins October 1. Commission Hitchcock advised that they need Mr. Foss to brief the Commission once his contract is signed. 5. Air Center Operations Report a. passenger boarding Jennifer Griego, RAC Director, presented this report. Jennifer stated there was no report due to the new manager only providing April and May figures. b. Airport Operations Jennifer Griego, RAC Director, presented this report. June 2024 was 2083 versus last year’s June 2023 was 1676. These numbers were based on ATC activity.  c. Aircraft parking Jennifer Griego, RAC Director, presented this report. Currently 237 versus 228 a year ago. d. Revenue/Expense Jennifer Griego, RAC Director, presented this report. Jennifer stated due to glitches in Tyler she has no access to revenues at this time. e. Project List Update Jennifer Griego, RAC Director, presented this update. There are projects out on bid for ITBs which are the SE Waterline, BLM Taxiway, BLM Slurry pit, and Map Grant Project. Vice chair Espiritu asked for an update on the electrical projects being done. Jennifer stated that they are still working on that. The electrical contractor comes in two weeks every month. He will be doing that through December. Some of the taxiways are now redone with LED lighting. f. EDA Grant Discussion/Update Jennifer Griego, RAC Director, presented this update. EDA has given a date of July 24th to come up with a project or they would terminate the grant and would still leave us in good standing for future reimbursement. Brian with CAVU is interested in the project and has not heard anything from it. For The Record: Chair Kunkel stepped away at 3:24 p.m. and returned at 3:27 p.m. The city does not have the funding to support the grant, although when they applied for the grant, they agreed to it. Chair Kunkel stated that since the City Manager requested input, based on discussion, we don’t know if CAVU can meet the requirements of this grant, and the cost of the project since 2021 is likely 30-40% higher. If the City’s portion of that is not available then the city needs to inform CAVU that the funding is not available. 6. Airport Engineer RFP Update Jennifer Griego, RAC Director, presented this update. There were 4 proposals received and evaluations were conducted on June 25, 2024. The recommendation will be presented to Legal Committee on July 25, 2024, and moved onto City Council in August. It will be a (1) year contract with (4) year options. 7. Air Service Development and Consulting Services Update Jennifer Griego, RAC Director, presented this update. Item is going to City Council for approval on July 11, 2024, for the City Manager to negotiate the contract. 8. Master Plan Alternatives/Update Matt Thomasson provided this update. They are coordinating on setting a date for the Technical Advisory Committee to review the alternatives and to look at all the options on the Airport Layout Plan and come to an agreement so they can send to FAA to review. Master Plan completion date is looking toward the end of the year, depending on FAA review times. 9. Strategic Plan Update Jennifer Griego, RAC Director, presented this update. Plan Committee met on June 18, 2024, to brainstorm goals. Mr. Coleman sent out a draft of those goals for the Committee’s consideration on June 22, 2024 and asked for a response by June 26, 2024. They are still awaiting responses from the Committee. 10. Terminal Update/Expansion Jennifer Griego, RAC Director, presented this update. Option 2 was previously discussed but now Option 3 needs to be considered. Chair Kunkel expressed that Option 2 would be more modular as opposed to Option 3 and would be more inclusive. 11. Update on Staff Vacancies Jennifer Griego presented this update. They have hired Mrs. Sanchez for the property manager, and now have a vacant position for the administrative assistant. They have two interviews tomorrow and hope to get that position filled. Action Items 28. EAN Holdings – Jenna Lanfor, RAC Deputy Director, presented this item. Consider recommending EAN Holdings LLC to enter into a five (5) year lease agreement, beginning August 1, 2024 ending July 31, 2029 for counterspace in Building No. 1 consisting of 128 square feet, more or less, and 10 parking spaces on the east side of the Terminal located at the Roswell Air Center. Vicechair Espiritu moved to consider recommending EAN Holdings LLC to enter into a five (5) year lease agreement, beginning August 1, 2024 ending July 31, 2029 for counterspace in Building No. 1 consisting of 128 square feet, more or less, and 10 parking spaces on the east side of the Terminal located at the Roswell Air Center. Commissioner McDonald was the second. The voice vote was unanimous, and the motion passed 5-0. 29. Trans Aero Rent Abatement Request Jennifer Griego, RAC Director, presented this item. The original lease with rent abatement included tenant purchase of kitchen equipment for $27,736.80. The contractor looked at building 1166 and did not see an issue with fire suppression. Once the Fire Marshal went in, he found that fire suppression equipment required replacement. Causing the difference of $7,850 for the fire suppression hood. Trans Aero is asking for an increase in abatement credit of $10,624.18 to be considered for additional costs after the original was signed. Commissioner Powell moved to approve Trans Aero pay 50% of rent monthly then abatement takes place until abatement is fulfilled. Commissioner McDonald was the second. The voice vote was 0-5 with all Commissioners voting no, and the motion failed. Vicechair Espiritu moved to request for lease abatement for Trans Aero in the amount of $10,624.18 to be abated at the beginning of their lease until fulfilled to be sent to City Council for approval. Commissioner Hitchcock was the second. The voice vote was unanimous, and the motion passed 5-0. For The Record: Commissioner Powell left the meeting at 4:17 p.m. Commission comments for future agenda items None. Reports/Announcements – Members, Council, Staff None. Public Participation None. Adjourn Commissioner McDonald moved to adjourn the meeting. Commissioner Espiritu was the second. The voice was unanimous, and the motion passed 4-0, with Commissioner Powell being absent. The meeting adjourned at 4:18 p.m.