1 of 3 REGULAR MEETING of the MONTEREY PENINSULA

REGULAR MEETING OF THE MONTEREY PENINSULA AIRPORT DISTRICT BOARD OF DIRECTORS

July 15, 2020 - 9:00 AM

Monterey Regional Airport 200 Fred Kane Drive, Suite 200

SPECIAL AND URGENT NOTICE ELIMINATING IN-PERSON PUBLIC PARTICIPATION AT MONTEREY PENINSULA AIRPORT DISTRICT BOARD MEETINGS

Due to the directives contained in the Governor’s Declarations of Emergency for the State of California (Executive Orders N- 25-20 and N-29-20) and the Governor’s Stay at Home Order (Executive Order N-33-20), the Board of Directors of the Monterey Peninsula Airport District is required to limit in-person attendance at the upcoming Board Committee meeting. Members of the public may utilize alternative measures established by the Monterey Peninsula Airport District to listen to Board meeting and/or to communicate your opinions to the Board Members. To participate in the Board meeting via Zoom video conference, please visit www.zoom.us/join and enter the following Meeting ID: 854 0739 7580. The password for this meeting is: 20200715. If you do not have access to the internet, you may also participate telephonically by calling (253) 215-8782 and entering the same Meeting ID and password.

Members of the public who wish to provide comment on an item on the agenda may do so during the meeting prior to the item being considered by the Board.

A. CALL TO ORDER/ROLL CALL

B. PLEDGE OF ALLEGIANCE

C. COMMUNICATIONS/ANNOUNCEMENTS/INFORMATIONAL ITEMS

D. PUBLIC COMMENTS

Any person may address the Monterey Peninsula Airport District Board at this time. Presentations should not exceed three (3) minutes, should be directed to an item NOT on today’s agenda, and should be within the jurisdiction of the Monterey Peninsula Airport District Board. Though not required, the Monterey Peninsula Airport District Board appreciates your cooperation in completing a speaker request form available on the staff table. Please give the completed form to the Monterey Peninsula Airport District Secretary. Comments concerning matters set forth on this agenda will be heard at the time the matter is considered.)

E. CONSENT AGENDA - ACTION ITEMS

(The Consent Agenda consists of those items which are routine and for which a staff recommendation has been prepared. A Board member, member of the audience or staff may request that an item be placed on the deferred consent agenda for further discussion. One motion will cover all items on the Consent Agenda. The motion to approve will authorize the action or recommendation indicated.)

Approve 1. Minutes of the Committee Meeting of the Air Carrier Service, Marketing and Community Relations Committee of June 5, 2020

Approve 2. Minutes of the Committee Meeting of the Airport Property Development and Leases Committee of June 8, 2020

1 of 3 Approve 3. Minutes of the Committee Meeting of the Budget and Finance Committee of June 15, 2020

Approve 4. Minutes of the Regular Meeting of June 17, 2020

F. DEFERRED CONSENT AGENDA - ACTION ITEMS

G. REGULAR AGENDA - ACTION ITEMS

Approve 1. Monterey Peninsula Airport District’s Response to the 2019-2020 Grand Jury Report

Adopt 2. Resolution No. 1780, A Resolution Ordering an Election, Requesting the Monterey County Elections Department to Conduct the Election, Requesting Consolidation of the Election and Stating the Determination of the Board of Directors of the Monterey Peninsula Airport District with Respect to Candidates’ Statements of Qualifications

Presentation 3. Detachment of Parcels Owned by Monterey Peninsula Airport District - MOU and Property Tax Transfer Agreement

Presentation 4. Overview of Safety Measures Implemented in Response to COVID-19 and Enhanced Passenger Safety - Recovery Plan

H. BOARD COMMITTEE REPORTS AND ACCEPTANCE OF DEPARTMENT REPORTS

(Report on meetings attended by Board Members at Monterey Peninsula Airport District’s expense - AB1234)

(The board receives department reports which do not require any action by the board)

a. Standing Committees: i. Budget and Finance Directors Cursio & Leffel ii. Air Service, Marketing, Community Relations Directors Sabo & Sawhney iii. Airport Property Development and Leases Directors Leffel & Miller

b. Ad-Hoc Committees: i. Local Jurisdiction Liaison Directors Leffel & Miller ii. Grand Jury Response Directors Leffel & Sabo

c. Liaison/Representatives: i. Local Agency Formation Commission Director Leffel Alt: Sawhney ii. Regional Taxi Authority Director Cursio Alt: Leffel iii. Transportation Agency for Monterey County Director Sabo Alt: Cursio iv. Special Districts Association Liaison Director Miller Alt: Leffel v. Association of Monterey Bay Area Governments E.D. La Pier Alt: Sabo

I. CLOSED SESSION

1. POTENTIAL LITIGATION (Government Code section 54956.9(d)(4)). The Board will meet with the Executive Director and District Counsel to discuss potential initiation of litigation – one case.

2 of 3 2. REAL PROPERTY NEGOTIATIONS (Government Code Section 54956.8). The Board will meet with Real Property Negotiators, Executive Director and District Counsel, regarding the property identified as 2999 Monterey-Salinas Highway, Monterey, CA 93940.

J. RECONVENE TO OPEN SESSION

K. PENDING REQUESTS FOR FUTURE AGENDA ITEMS

• Minimum Standards and Rules and Regulations • Annual Review for Executive Director La Pier

L. DISCUSSION OF FUTURE AGENDAS

(Any Board member may request the Board of Directors to instruct staff to report back to the Board at a future meeting concerning any matter or place a matter of business on a future agenda. Approval of such requests will be made by motion.)

M. ADJOURNMENT

AGENDA DEADLINE

This is the final Agenda that has been posted on the bulletin board outside of the District Offices in the Terminal Building at the Monterey Regional Airport no less than 72 hours prior to the meeting.

All items submitted by the public for possible inclusion on the Board Agenda or in the Board packet must be received by 5:00 P.M. on the Friday before the first Wednesday of the month. This agenda is subject to revision and may be amended prior to the scheduled meeting.

Upon request and where feasible, the Monterey Peninsula Airport District will provide written agenda materials in appropriate alternate formats, or disability-related modification or accommodation, including auxiliary aids or services, to enable individuals with disabilities to participate in public meetings. To allow the District time within which to make appropriate arrangements, please submit a written request containing a brief description of the materials requested and preferred alternative format or auxiliary aid or service desired as far as possible in advance of the meeting. Requests should be sent to the District Secretary at 200 Fred Kane Drive, Suite 200, Monterey, California 93940.

3 of 3 MINUTES OF THE AIR CARRIER SERVICE - MARKETING - COMMUNITY RELATIONS COMMITTEE MEETING OF THE MONTEREY PENINSULA AIRPORT DISTRICT BOARD OF DIRECTORS

June 5, 2020 - 10:00 AM

SPECIAL AND URGENT NOTICE ELIMINATING IN-PERSON PUBLIC PARTICIPATION AT MONTEREY PENINSULA AIRPORT DISTRICT BOARD MEETINGS

Due to the directives contained in the Governor’s Declarations of Emergency for the State of California (Executive Orders N- 25-20 and N-29-20) and the Governor’s Stay at Home Order (Executive Order N-33-20), the Board of Directors of the Monterey Peninsula Airport District is required to limit in-person attendance at the upcoming Board Committee meeting. Members of the public may utilize alternative measures established by the Monterey Peninsula Airport District to listen to Board meeting and/or to communicate your opinions to the Board Members. To participate in the Board meeting via Zoom video conference, please visit www.zoom.us/join and enter the following Meeting ID: 823 7970 2140. The password for this meeting is: 20200605. If you do not have access to the internet, you may also participate telephonically by calling (253) 215-8782 and entering the same Meeting ID and password.

Members of the public who wish to provide comment on an item on the agenda may do so during the meeting prior to the item being considered by the Board.

A. CALL TO ORDER

The meeting was called to order at 10:00 AM. Director Sabo, Director Sawhney and Deputy Director Morello were in attendance.

B. COMMUNICATIONS/ANNOUNCEMENTS/INFORMATIONAL ITEMS

None.

C. PUBLIC COMMENTS

None.

D. REGULAR AGENDA – ACTION ITEMS

Discussion 1. Air Service Update

Deputy Director Morello reviewed current air service considering the Shelter-In-Place and COVID-19 Pandemic. The month of May operations and passenger load numbers increased as compared to April 2020. Airline capacity was discussed and the fact that decreased load factors are considered full capacity as the airlines provided for physical distancing on the aircraft.

Discussion ensued regarding JSX and the possibility of a July launch of service to both BUR and SNA. JSX indicated that once the Shelter-In-Place order was lifted, and leisure/tourism travel was approved, they would begin service.

Director Sabo asked about marketing efforts. Morello reiterated the need to wait until Shelter-In-Place restrictions were lifted and leisure and tourism travel is acceptable. Director Sawhney agreed that the timing of marketing air service is sensitive considering the current County Health Directives.

Review 2. Passenger Comment Cards

One passenger comment was submitted for the month which was positive.

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Review 3. Noise Complaint Report

The noise complaint report was reviewed by the Committee. Director Sabo continued to express his concern regarding the flight school activities and again requested staff continue to monitor those activities.

Discussion 4. Schedule Next Meeting

Next meeting was not scheduled due to the Fourth of July Holiday.

E. ADJOURNMENT

The meeting adjourned at 11:10 AM.

Minutes Approved at the Meeting of July 15, 2020

Mary Ann Leffel, Chair

A T T E S T

Michael La Pier, AAE District Secretary

2 of 2 MINUTES OF THE AIRPORT PROPERTY DEVELOPMENT & LEASES COMMITTEE MEETING OF THE MONTEREY PENINSULA AIRPORT DISTRICT BOARD OF DIRECTORS

June 8, 2020 - 11:00 AM

SPECIAL AND URGENT NOTICE ELIMINATING IN-PERSON PUBLIC PARTICIPATION AT MONTEREY PENINSULA AIRPORT DISTRICT BOARD MEETINGS

Due to the directives contained in the Governor’s Declarations of Emergency for the State of California (Executive Orders N- 25-20 and N-29-20) and the Governor’s Stay at Home Order (Executive Order N-33-20), the Board of Directors of the Monterey Peninsula Airport District is required to limit in-person attendance at the upcoming Board Committee meeting. Members of the public may utilize alternative measures established by the Monterey Peninsula Airport District to listen to Board meeting and/or to communicate your opinions to the Board Members. To participate in the Board meeting via Zoom video conference, please visit www.zoom.us/join and enter the following Meeting ID: 858 3579 9640. The password for this meeting is: 20200608. If you do not have access to the internet, you may also participate telephonically by calling (253) 215-8782 and entering the same Meeting ID and password.

Members of the public who wish to provide comment on an item on the agenda may do so during the meeting prior to the item being considered by the Board.

A. CALL TO ORDER

The meeting was called to order at 11:03 AM. Director Leffel, Director Miller, District Counsel Huber and Deputy Director Morello were in attendance.

B. COMMUNICATIONS / ANNOUNCEMENTS / INFORMATIONAL ITEMS

None.

C. PUBLIC COMMENTS

None.

D. REGULAR AGENDA – ACTION ITEMS

Discussion 1. Leasing Activity Review

Deputy Director Morello reviewed with the Committee the status of the CARES Act grant from the Federal government and the current period use of those funds.

Deputy Director Morello and Counsel Huber reviewed current lease discussions with the Committee. The review included a discussion regarding the abandonment of Building 505 and its proposed demolition. Staff reiterated that the building had been vacated by the last remaining tenant and had been red-tagged by staff. Directors Leffel and Miller supported the inclusion of this Capital Improvement Project in the FY21 proposed budget. Director Miller expressed concern that the building’s condition posed a safety and health hazard and supported staff’s recommendation to include this as a project in the FY21 budget, Director Leffel concurred.

Counsel Huber discussed and indicated he was scheduled to have the draft Rules and Regulations and Minimum Standards for committee review in July 2020.

E. ADJOURNMENT

The meeting adjourned at 12:10 PM.

1 of 2 Minutes Approved at the Meeting of July 15, 2020

Mary Ann Leffel, Chair

A T T E S T

Michael La Pier, AAE District Secretary

2 of 2 MINUTES OF THE BUDGET & FINANCE COMMITTEE MEETING OF THE MONTEREY PENINSULA AIRPORT DISTRICT BOARD OF DIRECTORS

June 15, 2020 - 10:00 AM

SPECIAL AND URGENT NOTICE ELIMINATING IN-PERSON PUBLIC PARTICIPATION AT MONTEREY PENINSULA AIRPORT DISTRICT BOARD MEETINGS

Due to the directives contained in the Governor’s Declarations of Emergency for the State of California (Executive Orders N- 25-20 and N-29-20) and the Governor’s Stay at Home Order (Executive Order N-33-20), the Board of Directors of the Monterey Peninsula Airport District is required to limit in-person attendance at the upcoming Board Committee meeting. Members of the public may utilize alternative measures established by the Monterey Peninsula Airport District to listen to Board meeting and/or to communicate your opinions to the Board Members. To participate in the Board meeting via Zoom video conference, please visit www.zoom.us/join and enter the following Meeting ID: 859 7215 9285. The password for this meeting is: 20200615. If you do not have access to the internet, you may also participate telephonically by calling (253) 215-8782 and entering the same Meeting ID and password.

Members of the public who wish to provide comment on an item on the agenda may do so during the meeting prior to the item being considered by the Board.

A. CALL TO ORDER

Finance Committee Meeting of the Board of Directors was called to order at 10:00 AM. Director Leffel, Director Cursio, Deputy Director Strategy and Planning Morello and Deputy Executive Director of Finance and Administration Bergholz were present. Executive Director La Pier was absent.

The following documents were presented to the Budget and Finance Committee members:

April 2020 Financial Statements April 2020 Financial Statement Variance Analysis April 30, 2020 Accounts Receivable Aged Invoice Report

B. COMMUNICATIONS/ANNOUNCEMENTS/INFORMATIONAL ITEMS

None.

C. PUBLIC COMMENTS

None.

D. REGULAR AGENDA – ACTION ITEMS

Review 1. FYTD 2020 Financial Statements

Reviewed overall financial performance of the Airport as of April 30, 2020

In April 2020, the Monterey County Health Department and national shelter in place health emergency continued to impact the Airport tenants and users of the Airlines and other transportation services. Commercial airlines and general aviation landings and passenger counts continued the downward trend. Other concessions slowed operations and eventually some tenants temporarily closed their businesses.

The federal government’s Corona virus Aid, Relief, and Economic Security (CARES) Act that passed on March 27, 2020 was rolled out to Airports in April 2020 and Airport staff signed the grant application and began updating the FY20 operating forecast to estimate the health emergency impact on 1 of 5 operations. Initial estimates indicate a potential shortfall in operating income of approximately $1.3M for FY20.

April 2020 combined Airport operating revenues are $549.6K which is $265.1K (32.5%) lower than budget ($814.7K), and FYTD revenues are $8.08M which is $79.5K (1.0%) higher than budget ($8.00M). The April unfavorable revenue variance is attributed to the following:

• Commercial Aviation (CA) fees in April are under budget ($30.6K actual vs $71.1K budget) by $40.5K or 56.9%. Aircraft landing volumes (118) are under budget (336) by 218 landings.

• General Aviation (GA) operating revenues for April ($104.2K) are $59.3K or 36.3% lower than budget ($163.5K). This unfavorable GA revenue variance resulted from lower GA Landing and Fuel Flowage fees.

• In April combined TCP permits, Taxi Permits/Trips, TNC Trips, Terminal Concessions, Rental Car and Parking Concessions (Concessions) fees ($36.6K) are $155.5K or 80.9% lower than budget ($192.0K).

• April Non-Aviation Tenant revenues ($169.8K) are lower than budget ($173.8) by $4.0K or 2.3%.

• April Other Operating Revenues ($62.6K) are lower than budget ($66.7K) by $4.1K or 6.7%.

April operating expenses ($798.9K) are over budget ($752.3K) by $46.6K or 6.2%. The expense variance came from the following: • Salary & Wages and Employer Payroll Tax (Wages) Expenses ($171.8K) for April are under budget ($182.8K) by $11.9K or 6.06%.

• Employer Benefit Expenses ($108.8K) for April are lower than budget ($117.4K) by $8.6K or 7.3%. The variance is the result of lower benefits payments with the reduction of four (2 filled and 2 vacant) positions in March that resulted in April savings.

• Personnel Related Expenses ($2.0K) for April were under budget ($5.7K) by $3.7K or 64.6%.

• Business Related Expenses ($23.6K) for April were under budget ($25.6K) by $1.9K or 7.6%.

• Expendable/Consumable Supplies & Materials expenses ($2.8K) for April are lower than budget ($12.1K) by $9.4K or 77.1%.

• Repair & Maintenance expenses ($45.9K) for April are over budget ($38.4K) by $7.5K or 19.5%. The unfavorable variance resulted from higher District Vehicle Repair & Maintenance for repair of the Titan ARFF vehicle ($24.1K) that was partially offset by lower expenses in other Repair & Maintenance categories ($16.6K).

• Professional Service expenses ($132.5K) for April are over budget ($42.5K) by $90.1K or 211.9%. In 2020 the Airport cleared trees from the 2801 properties as requested by the FAA. In April, the Airport was required to make a deposit of $94K related to the removal of the trees.

• Marketing related expenses ($28.7K) for April were over budget ($16.7K) by $11.9K or 70.8%. Most of the variance resulted from higher Public Relations Expense for sponsorship of the Big Sur Marathon in April ($25K) that was offset by lower Marketing expenses ($11.6K).

• Combined Utilities expenses for April ($14.6K) are under budget ($28.9K) $14.3K or 49.4%.

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Lower revenues due to the national health emergency and higher operating expenses resulted in an operating loss of $249.3K for April which is $311.6K lower than budget $62.4K. FYTD operating income is $917K which is $519.3K or 130.5% higher than budget ($398.0K).

Review 2. Variance Analysis - MTD and YTD

Revenues:

CA Landing Fee

The COVID-19 national emergency continued to impact April flight schedules for all airlines. American and United both flew a mix of one to two daily flights and Alaska flew almost daily. Allegiant cancelled most flights after early April. In April airlines made 118 landings compared to the budgeted 336.

APRON Fees CA RON Fees Landing Fee Terminal Concessions Taxi Operator Permits & Trip Fees TNC Permits & Trip Fees Rental Car Concessions Parking Concession GA Fuel Flowage Fees Facility / Space Rents Self-Storage Concession Office Space Rental Revenue Property Tax Allocation Utility Charges

Expenses:

Finance & Administration:

Salaries & Wages

In March two staff positions were vacant, and one employee was laid-off. The April variance represents the savings from the vacant positions.

Business Travel & Entertainment Other / Contract Services Art Program Annual Audit / Accounting Other Legal Services

In April, the Airport was required to make a deposit of $94K related to the removal of the trees.

Marketing Public Relations Air Service Development Utilities – Electricity Utilities - Water

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Planning & Development:

Salaries & Wages Architect & Engineer

Maintenance & Custodial Services:

Salaries & Wages

In April, a janitor requested payment of 40 hours of vacation that was approved which resulted in a small variance to salaries/wages.

CalPERS Health Insurance Custodial Supplies & Materials District Vehicle Fuel Airfield Repair & Maintenance Landscape & Grounds Repair & Maintenance District Vehicle Repair & Maintenance

Airport Operations:

Salaries & Wages

Police Department:

None

ARFF / Fire Services:

General Repairs & Maintenance District Vehicle Repair & Maintenance

In April, the Airport performed $31.1K of repairs to the Titan ARFF vehicle as requested by the City of Monterey staff. The repairs were completed, and the vehicle was put into service.

Board of Directors:

None

Office Rental Property

Rental Space Repair & Maintenance

Other Income and Expense:

Grants – FAA Passenger Facility Charges

No additional questions on revenues or expenses.

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Review 3. Accounts Receivable Aged Invoice Report

The accounts receivable balance on April 30, 2020 is $451K. This balance is 32.1% higher than March 31, 2020 balance of $341K and 6.7% lower than the $483K balance on April 30, 2019. The net accounts receivable balance over 60 days old on April 30, 2020 is $8.3K.

The unrestricted cash and investments balance on April 30, 2020 is $5.43M and the unrestricted cash and investments balance on March 31, 2020 was $5.49M, a decrease of $59.9K. The decrease in unrestricted cash and investments resulted from transferring of prepaid UAL ($61.5K), SDRMA worker’s comp ($15.5K) and business insurance amortization amounts ($17.3K) to the reserve account monthly, and transfers of $170.9K to fund vendor payments in April. The District also recognized interest from investments interest of ($3.1K).

Review 4. Fiscal Year 2021 Rates and Charges (Annex A - Page 5)

Reviewed updates to the proposed FY21 Rates and Charges as a result of requests to use Airport properties for Special Events.

In order to accommodate requests two Special Events fees have been included in the FY21 Schedule of Rates and Charges. The additions are “Special Event - On Property” at $1,500 per day minimum and “Special Event - On Observation Deck” at $1,000 per day minimum. Both fees will be subject to a Special Events Facilities Use and License Agreement to be completed and approved by the Executive Director.

E. ADJOURNMENT

The meeting adjourned at 12:30 PM.

Minutes Approved at the Meeting of July 15, 2020

Mary Ann Leffel, Chair

A T T E S T

Michael La Pier, AAE District Secretary

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MINUTES OF THE REGULAR MEETING OF THE MONTEREY PENINSULA AIRPORT DISTRICT BOARD OF DIRECTORS

June 17, 2020 - 9:00 AM

SPECIAL AND URGENT NOTICE ELIMINATING IN-PERSON PUBLIC PARTICIPATION AT MONTEREY PENINSULA AIRPORT DISTRICT BOARD MEETINGS

Due to the directives contained in the Governor’s Declarations of Emergency for the State of California (Executive Orders N- 25-20 and N-29-20) and the Governor’s Stay at Home Order (Executive Order N-33-20), the Board of Directors of the Monterey Peninsula Airport District is required to limit in-person attendance at the upcoming Board Committee meeting. Members of the public may utilize alternative measures established by the Monterey Peninsula Airport District to listen to Board meeting and/or to communicate your opinions to the Board Members. To participate in the Board meeting via Zoom video conference, please visit www.zoom.us/join and enter the following Meeting ID: 845 1441 8703. The password for this meeting is: 20200617. If you do not have access to the internet, you may also participate telephonically by calling (253) 215-8782 and entering the same Meeting ID and password.

Members of the public who wish to provide comment on an item on the agenda may do so during the meeting prior to the item being considered by the Board.

A. CALL TO ORDER/ROLL CALL

Chair Leffel called to order the Regular Meeting of the Board of Directors at 9:01 AM. Directors Cursio, Miller, Sabo and Sawhney were present. The following District Officers were present: Executive Director La Pier, District Counsel Huber, Acting District Secretary Auker, Deputy Executive Director Bergholz and Deputy Director Morello.

B. PLEDGE OF ALLEGIANCE

Chair Leffel asked for a moment of silence in observation of the Pledge of Allegiance.

C. COMMUNICATIONS/ANNOUNCEMENTS/INFORMATIONAL ITEMS

Executive Director La Pier stated that there was an article in the Monterey Herald about the rescheduling of Alaska’s Seattle service, noting that Alaska has scheduled flights to begin on February 1, 2021. He added that a formal announcement of the new service launch date would come at a later time.

Chair Leffel welcomed Executive Director La Pier back, adding that she was very impressed by Airport staff during his absence.

Executive Director La Pier stated that he was extremely grateful for what he walked back in to upon returning and thanked Deputy Executive Director Bergholz and Deputy Director Morello.

D. PUBLIC COMMENTS

None.

E. CONSENT AGENDA - ACTION ITEMS

Approve 1. Minutes of the Committee Meeting of the Air Carrier Service, Marketing and Community Relations Committee of May 8, 2020

1 of 12 Approve 2. Minutes of the Committee Meeting of the Budget and Finance Committee of May 11, 2020

Approve 3. Minutes of the Regular Meeting of May 13, 2020

Approve 4. Minutes of the Committee Meeting of the Budget and Finance Committee of May 22, 2020

Approve 5. Minutes of the Special Meeting of May 28, 2020

Director Cursio moved to approve Consent Agenda Items E.1 through E.5. Director Sawhney seconded the motion. The motion passed unanimously by a roll call vote of 5-0.

F. DEFERRED CONSENT AGENDA - ACTION ITEMS

None.

G. REGULAR AGENDA - ACTION ITEMS

Approve 1. Resolution No. 1779, A Resolution Ratifying a Side-letter of Agreement with the Airport Administrative Assistants Association, United Public Employees 792, and Authorizing the Executive Director to Execute the Agreement

Executive Director La Pier presented Item G.1. He stated that the District previously entered into an MOU with the Administrative Assistants Association, with a term ending June 30, 2020. He stated that prior to the commencement of negotiations for a successor MOU, the District suspended pay increases for the 2020-21 fiscal year for its unrepresented employees, and notified United Public Employees of California Representatives of a need to freeze salary at the FY 2019-20 levels for the next fiscal year as a consequence of significant impacts on the District revenues arising from the COVID-19 pandemic. He added that representatives of the District met with representatives from the Recognized Employee Organization and reached an overall tentative agreement to extend the terms of the current MOU for one year, with the exception of freezing salaries.

District Counsel Huber thanked all parties involved in the negotiations for a smooth process.

Director Cursio moved to adopt Resolution No. 1779. Director Sawhney seconded the motion. The motion passed unanimously by a roll call vote of 5-0.

RESOLUTION NO. 1779

A RESOLUTION RATIFYING A SIDE-LETTER OF AGREEMENT WITH THE AIRPORT ADMINISTRATIVE ASSISTANTS ASSOCIATION, UNITED PUBLIC EMPLOYEES 792, AND AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE THE AGREEMENT

WHEREAS, the District and Union Representing the Administrative Assistants Association previously entered into an MOU set to expire on June 30, 2020; and

WHEREAS, the District has experienced significant budgetary impacts arising as a consequence of the COVID-19 pandemic requiring it to propose a freeze on employee wages for Fiscal Year 2020-2021; and

WHEREAS, the District and Association Representatives have met and conferred in good faith concerning the wages hours and working conditions, including a potential extension of the MOU for an

2 of 12 additional year, maintaining salaries in a status quo for the members of the bargaining unit of represented employees; and

WHEREAS, the District and Association representatives have reached agreement on an overall tentative agreement in the form of a Side-letter to the original MOU; and,

WHEREAS, the Side-letter agreement has been ratified by the members of the Administrative Assistants Association, and it is the recommendation of District staff that it be ratified by the Board of Directors.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT, that the Side-letter Agreement with the Administrative Assistants Association, represented by United Public Employees of California, Local 792 (LIUNA, AFL- CIO); which Side-letter extends the term of the MOU through June 30, 2021, provides that there be no increases to bargaining unit salaries in the Fiscal Year 2020-2021, and which is attached hereto as Exhibit “A” to this resolution and incorporated herein by reference, is hereby ratified; and

BE IT FURTHER RESOLVED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT, that the Executive Director is hereby authorized to execute said Side-letter of Agreement.

PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT: This 17th day of June 2020 by the following roll call vote:

AYES: DIRECTORS: Cursio, Miller, Sabo, Sawhney, Chair Leffel NOES: DIRECTORS: None ABSTAIN: DIRECTORS: None ABSENT: DIRECTORS: None

Adopt 2. Resolution No. 1776, A Resolution Authorizing and Approving the Rates and Charges at the Monterey Regional Airport for Fiscal Year 2021

Deputy Director Bergholz presented Item G.2, noting that the proposed Resolution was previously presented to the Finance Committee and to the full Board in the Special Meeting Budget Workshop. He stated that, based on requests from the public, rates for special events held on Airport had been added.

Executive Director La Pier added that rates were not increased to keep the market consistent and to keep tenants retained during this difficult time, until the Airport recovers. He noted that the Rates and Charges can always be amended in the future if necessary.

Director Cursio moved to adopt Resolution No. 1776. Director Miller seconded the motion. The motion passed unanimously by a roll call vote of 5-0.

RESOLUTION NO. 1776

A RESOLUTION AUTHORIZING AND APPROVING THE RATES AND CHARGES AT THE MONTEREY REGIONAL AIRPORT FOR FISCAL YEAR 2021

WHEREAS, periodic adjustment of rates and fees is appropriate in order to achieve the District’s goal of recovering the cost of operating and maintaining the Airport from rents, fees and charges paid by tenants and users of Airport facilities in fair proportion to their respective use; and

3 of 12 WHEREAS, the District has set its airside rates in accordance with the airfield residual cost recovery methodology; and

WHEREAS, the District has set its terminal area rental rates in accordance with the terminal compensatory cost recovery methodology.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT, the following rate and fee schedule (SEE ANNEX A) shall be implemented effective July 1, 2020.

1.0 Aviation & Aviation Related Rates and Fees.

1.1 Landing Fees.

1.1.1 Air Carriers. Provided a signed agreement between an air carrier and the District exists and except as exempted from landing fees by the provisions of Section 1.1.5 of this Resolution, there shall be paid to the District a landing fee for all air carrier operations (including unscheduled charter operations) landing at the Airport (SEE ANNEX A). The landing fee is assessed per thousand pounds of certificated gross landing weight. Air carriers operating without a signed agreement will pay a landing fee equal to two (2) times the established rate.

1.1.2 Freight Forwarding/Cargo Carriers. Except as exempted from landing fees by the provisions of Section 1.1.5 of this Resolution, there shall be paid to the District a landing fee for all freight forwarding/cargo carrier operations (including unscheduled charter operations) landing at the Airport (SEE ANNEX A). The landing fee is assessed per thousand pounds of certificated gross landing weight or per landing.

1.1.3 General Aviation Aircraft. Except as exempted from landing fees by the provisions of Sections 1.1.3.1 and 1.1.5 of this Resolution, there shall be paid to the District a landing fee for all general aviation aircraft operations involving aircraft having a certificated gross landing weight of six thousand pounds (6,000 lbs) or greater landing at the Airport (SEE ANNEX A). The landing fee is assessed per thousand pounds of certificated gross landing weight.

1.1.3.1 Based Aircraft Exemption. All general aviation aircraft based at the Monterey Regional Airport shall be exempt from the landing fees set forth in Section 1.1.3 of this Resolution. General aviation aircraft based at the Airport shall be deemed to include general aviation aircraft for which monthly hangar rentals or tie-down fees are being paid to the District or to a fixed base operator holding a valid lease or rental agreement with the District for the conduct of fixed base operations at the Airport. In addition, general aviation aircraft owned or leased by such a fixed base operator shall be deemed to be general aviation aircraft based at the Airport.

1.1.4 Helicopters. Except as exempted from landing fees by the provisions of Sections 1.1.4.1 or 1.1.5 of this Resolution, there shall be paid to the District a landing fee for all helicopter operations landing at the Airport (SEE ANNEX A). The landing fee for helicopters is assessed per landing.

1.1.4.1 Based Helicopter Exemption. All helicopters based at the Monterey Regional Airport shall be exempt from the landing fees set forth in Section 1.1.4 of this Resolution. Helicopters based at the Airport shall be deemed to include helicopters for which monthly hangar rentals or tie-down fees are being paid to the District or to a fixed base operator holding a valid lease or rental agreement with the District for the conduct of fixed base operations at the Airport. In addition, helicopters owned or leased by such a fixed base operator shall be deemed to be helicopters based at the Airport.

4 of 12 1.1.5 General Exemptions. Aircraft landing at the Airport due to mechanical failure or other in-flight emergency shall be exempt from the landing fees set forth in this Resolution. Military aircraft or aircraft operated by the state or federal government shall be exempt from the landing fees set forth in this Resolution. Medical emergency/medical evacuation aircraft shall be exempt from the landing fees set forth in this Resolution.

1.2 Remain-Over-Night (RON) Fee.

1.2.1 Air Carriers. Provided a signed agreement between an air carrier and the District exists, there shall be paid to the District a RON fee for all air carrier aircraft (including unscheduled charter aircraft) that remain over night at the Airport (SEE ANNEX A). The RON fee is assessed per thousand pounds of certificated gross landing weight.

1.2.2 Freight Forwarding / Cargo Carriers. There shall be paid to the District a RON fee for all freight forwarding/cargo carrier aircraft (including unscheduled charter aircraft) that remain overnight at the Airport (SEE ANNEX A). The RON fee is assessed per thousand pounds of certificated gross landing weight.

1.3 Apron Fee.

1.3.1 Air Carriers. Provided a signed agreement between an air carrier and the District exists, there shall be paid to the District an apron fee for all air carrier aircraft (including unscheduled charter aircraft) that park on the terminal ramp at the Airport (SEE ANNEX A). The apron fee is assessed per thousand pounds of certificated gross landing weight. Air carriers operating without a signed agreement will pay a landing fee equal to two (2) times the established rate.

1.3.2 Freight Forwarding / Cargo Carriers. There shall be paid to the District an apron fee for all freight forwarding/cargo carrier aircraft (including unscheduled charter aircraft) that park on the terminal ramp at the Airport (SEE ANNEX A). The apron fee is assessed per thousand pounds of certificated gross landing weight.

1.4 Gate Fee. Provided a signed agreement between an air carrier and the District exists, there shall be paid to the District a gate fee for non-scheduled (including charter) air carrier aircraft that use the Airport terminal facilities (SEE ANNEX A). The gate fee is assessed per thousand pounds of certificated gross landing weight. Air carriers operating without a signed agreement will pay a landing fee equal to two (2) times the established rate.

1.5 Security Fee. There shall be paid to the District a security fee for all air carrier aircraft (including unscheduled charter aircraft) that use the Airport terminal facilities (SEE ANNEX A). The security fee is assessed per enplaned passenger.

1.6 Hangar Rentals. There shall be paid to the District rents for District owned and maintained aircraft hangars (SEE ANNEX A). The hangar rent is assessed by type and location of hangar, except as may otherwise be provided in a contractual agreement between the District (lessor) and a lessee.

1.7 Aircraft Tie-downs. There shall be paid to the District rents for District owned and maintained aircraft tie-down spaces (SEE ANNEX A). The tie-down rent is assessed by aircraft type and location of tie-down, except as may otherwise be provided in a contractual agreement between the District (lessor) and a lessee.

5 of 12 1.8 Fuel Dispensing / Fuel Flowage Fees. There shall be paid to the District a fuel dispensing or fuel flowage fee for each gallon of fuel dispensed at the Airport (SEE ANNEX A). The fuel dispensing or flowage fee is assessed by number of gallons dispensed and by type of fuel.

2.0 Terminal Area Rents.

2.1 Terminal Building and Adjacent Area Rentals. There shall be paid to the District rents for space in and around the Airport terminal (SEE ANNEX A). These rents are paid by square foot (sq. ft.) or space basis (per month) except as may otherwise be provided in a contractual agreement between the District (lessor) and a lessee.

2.2 Concessionaires. There shall be paid to the District fees for the use of space and the conduct of business in and around the Airport terminal. These fees may be assessed by square foot (sq. ft.) or space basis (per month) or may be assessed as a percentage of gross receipts, or a combination provided in a contractual agreement between the District (lessor) and a lessee or concessionaire.

3.0 Non-Aviation Rents. There shall be paid to the District rents for non-aviation space and facilities on the Airport (SEE ANNEX A). These rents are assessed on a square foot (sq. ft.) or space basis (per month) except as may otherwise be provided in a contractual agreement between the District (lessor) and a lessee.

4.0 Other Fees.

4.1 Miscellaneous Fees. There shall be paid to the District fees for AOA badges, parking permits, SIDA badges, law enforcement activities (reports, incidents and services). These fees are assessed on each activity or service provided by the District to a tenant, tenant-employee, and lessee.

4.2 Tenant Event Support / Tenant Repair & Maintenance Fees. There shall be paid to the District fees for law enforcement support or tenant repair, maintenance services and event fees. These fees will be charged on a per hour rate and due at the completion of law enforcement support or tenant repair & maintenance services, and event fees.

4.3 Airport Events / Filming / Photography - Basic Use Fees. There shall be paid to the District fees for special on property events, motion picture filming or television recording and photography events. These fees will be charged on a per day rate and due in advance when the Facilities Use and License Agreement is executed, and before special on property events, motion picture filming or television recording and photography events occur.

4.4 Late Payment and Credit Card Payment Fees. There shall be paid to the District fees for late tenant or lessee and credit cards payments. These fees will be charged on a percentage of tenant or lessee invoices and are due upon contract terms with the District.

5.0 Future Rate Adjustments. The District may implement changes in rates and charges from time-to-time through the adoption of future rates and charges resolutions. During the period following the adoption of this Resolution and until the effective date of a subsequent rates and charges resolution, District leases and rental agreements may provide for adjustments to rates and charges based on changes in consumer price or other indices.

6.0 Severability. If any provision, clause, sentence or paragraph of this Resolution or the application thereof to any person or circumstance shall be held invalid, such invalidity shall not affect the other provisions of this Resolution which can be given effect without the invalid provision or application and to this end, the provisions of this Resolution are declared severable.

6 of 12 7.0 Effective Date. This Resolution shall take effect on July 1, 2020.

PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT: This 17th day of June 2020, by the following roll call vote:

AYES: DIRECTORS: Cursio, Miller, Sabo, Sawhney, Chair Leffel NOES: DIRECTORS: None ABSTAIN: DIRECTORS: None ABSENT: DIRECTORS: None

Adopt 3. Resolution No. 1777, A Resolution Authorizing and Approving the Fiscal Year 2021 Salary Schedule Listing Salary Ranges for the Monterey Peninsula Airport District

Executive Director La Pier presented Item G.3, mentioning that as discussed in Item G.1, all salaries have been frozen for FY 2021. He stated that the proposed Salary Schedule reflects what has been adopted in the past, with very few changes. He stated that the proposed changes include removal of the vacant Part-Time Operations Supervisor position and the vacant Coordinator-Communications and Community Affairs position from the FY 2021 Salary Schedule. He added that the District implemented staff reductions as a result of the COVID-19 national health emergency, which included the termination of four FY 2020 budgeted positions.

Chair Leffel stated that the Finance Committee reviewed the proposed Resolution No. 1777 and is in support of its adoption.

Director Miller moved to adopt Resolution No. 1777. Director Sawhney seconded the motion. The motion passed unanimously by a roll call vote of 5-0.

RESOLUTION NO. 1777

A RESOLUTION AUTHORIZING AND APPROVING THE FISCAL YEAR 2021 SALARY SCHEDULE LISTING SALARY RANGES FOR THE MONTEREY PENINSULA AIRPORT DISTRICT

WHEREAS, the Monterey Peninsula Airport District negotiated a one-year extension with the represented staff (agreement AAA MOU) for FY 2021 with no changes to the lower and upper salary ranges, and

WHEREAS, the Monterey Peninsula Airport District authorized the addition of a second Operations Supervisor position which resulted in the hiring of the then Part-Time Operations Supervisor. The Part- Time Operations Supervisor has been vacated and Airport Staff recommends closing that position and removing it from the FY 2021 Salary Schedule, and

WHEREAS, On March 31, 2020 the Monterey Peninsula Airport District implemented a staff reduction as a result of the COVID-19 national health emergency. The staff reductions included the termination of four FY 2020 budgeted positions and the removal of the Coordinator-Communications and Community Affairs position from the FY 2021 Salary Schedule.

BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT: That the compensation of all employees of the Monterey Peninsula Airport District as set forth and prescribed in the 2021 Salary Schedule, Listing Salary Ranges is hereby approved and adopted. A copy of said schedule is attached hereto and made a part of by reference as though the same were set forth in full herein.

7 of 12 AND BE IT FURTHER RESOLVED: That there be filed in the office of said District, said Salary Schedule in accordance with and designated "Monterey Peninsula Airport District Fiscal Year 2021 Salary Schedule" listing salary ranges.

PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT: This 17th day of June 2020 by the following roll call vote:

AYES: DIRECTORS: Cursio, Miller, Sabo, Sawhney, Chair Leffel NOES: DIRECTORS: None ABSTAIN: DIRECTORS: None ABSENT: DIRECTORS: None

Adopt 4. Resolution No. 1778, A Resolution Authorizing and Approving the Operating Budget and the Capital Budget of the Monterey Peninsula Airport District for Fiscal Year 2021

Deputy Executive Director Bergholz presented Item G.4, noting that staff took a conservative approach in preparing the FY 2021 budget, based on the challenges that are facing the Airport and the general public, and added that the proposed Resolution was previously presented to the Finance Committee and to the full Board in the Special Meeting Budget Workshop. He stated that since the Budget Workshop, the Airport had received a memo from the City of Del Rey Oaks, where Chief Hoyne communicated that Del Rey Oaks staff carefully looked at ways to reduce costs for FY 2021, and provided a contract total that reflected an almost $150,000 cost reduction as a one-time adjustment in light of COVID-19 related revenue decreases at the Airport District and in the City. Deputy Director Bergholz stated that aside from that change, the budget was the same as previously presented. He gave the Board a brief overview of major points of the proposed operating and capital budgets for FY 2021.

Chair Leffel stated that the Finance Committee reviewed the proposed Resolution No. 1778 and is in support of its adoption.

Director Sabo made the following comments:

“As I previously indicated in the budget workshop, I am opposed to this FY 2021 budget proposal.

Much good work has gone into preparing this budget, but I am concerned that in the space of just fifteen months we will have burned through 45% of our CARES Act funding.

This is going to be a very slow recovery and ramp up to regenerating our airline and concession revenue. When we burn through 45% of our CARES money in a short period of time, it raises my concerns about some of the operational line items that we increased substantially and some that we cut dramatically, such as our marketing outreach to our local customers who are primary users of our airport. But of major concern to me is that we are continuing to go forward with a large capital expenditure budget to the tune of $740,000 of District cash at a time of financial crisis and limited funds.

Those capital projects are certainly worthwhile, but I do not believe we should be moving forward on these District funded projects, at a great capital expense, during a time of great uncertainty about our future revenue outlook. For example, we are planning to spend $250,000 to demolish Building 505 in this fiscal year. That is certainly something we have to do but it is not something we have to do in this time period of financial uncertainty.

We are also proposing in the budget narrative to move forward on the water project for $250,000 in this time period. I do not know that this is a necessary project at a time when our revenues are uncertain.

8 of 12 With these capital budget expenditures, we are going to deplete our retained earnings by $740,000 at a time when we are not certain where our future revenues are going to come from.

We have done an admirable job for many of our tenants of relieving them of rent payments at our own expense, without any obligation to repay us in any way for the rent mitigations we have done for them. I think we have done a good community service for them with our rent relief, but I believe we have an equal responsibility to protect the assets of the District.

Going forward, I do not know where we will be two or three years from now, but I don't want us to be in a position where we have spent all of our CARES Act money and a substantial amount of our District reserves leaving us on our financial backs still waiting for the airlines to recover and bring passengers back to Monterey.”

Public Comment: Matthew Wright, Monterey Fuel Company General Manager, thanked the members of the Board and staff for including the FBO partners in the Tier 2 relief. He shared numbers with the Board, indicating where operations were currently at compared to where they were previously. He also mentioned that Monterey Jet Center was ranked as the 10th best FBO in the country by Professional Pilot Magazine.

Director Cursio moved to adopt Resolution No. 1778. Director Miller seconded the motion. The motion passed by a roll call vote of 4-1. Director Sabo voted no.

RESOLUTION NO. 1778

A RESOLUTION AUTHORIZING AND APPROVING THE OPERATING BUDGET AND THE CAPITAL BUDGET OF THE MONTEREY PENINSULA AIRPORT DISTRICT FOR FISCAL YEAR 2021

WHEREAS, the estimates submitted to the Board of Directors of the Monterey Peninsula Airport District entitled "Monterey Peninsula Airport District, County of Monterey, State of California, Budget - Fiscal Year 2021," and now on file in the offices of the District are hereby approved and adopted as the budget of the District for the Fiscal Year 2021, and

WHEREAS, On March 27, 2020, the Congress passed the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”) and the President signed the CARES Act into law. The CARES Act provides grants for airports with commercial airline service, among other forms of relief for aviation businesses; and

WHEREAS, On April 4, 2020, the FAA released an informational document titled Information for Airport Sponsors Considering COVID-19 Restrictions or Accommodations, which specifically addresses the use of grant funds at commercial airports; and

WHEREAS, On April 15, 2020, the Board of Directors approved Resolution No. 1772, which authorized the Airport to receive designated funds from the CARES Act for utilization by the Airport pursuant to FAA authorized purposes; and

WHEREAS, The Districts Fiscal Year 2021 revenues are projected to be insufficient to fund expenses, capital expenditures and debt service; and

WHEREAS, The District anticipates submitting periodic draws from CARES ACT grant to fund operating deficits and to ensure that current operating expenses, capital expenditures and debt service obligations are funded; and

9 of 12 WHEREAS, the revenues of the District for the Fiscal Year 2021 are hereby appropriated as set forth and segregated in the operating budget and the capital budget, and

WHEREAS, all annual salaries, compensations, allowances and operating expenses for the Fiscal Year 2021 as set forth in the operating budget shall be payable in such time, form and manner as is prescribed by the Monterey Peninsula Airport District Act and by Resolution No. 1424, a Resolution Establishing Fiscal Control Policies and Procedures for the Monterey Peninsula Airport District; and

WHEREAS, all capital expenditures for the Fiscal Year 2021 as set forth in the capital budget shall be payable in such time, form and manner as is prescribed by the Monterey Peninsula Airport District Act and by Resolution No. 1424; and

WHEREAS, all debt service expenditures, interest and principal, for the Fiscal Year 2021 are identified and shall be payable in such time, form and manner as prescribed by contract or covenant, are hereby approved, and

WHEREAS, all motions and resolutions and parts of motions and resolutions insofar as they are in conflict with this resolution are hereby repealed.

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT, the Operating Plan and Capital Plan presented in the Budget for Fiscal Year 2021 are hereby established and designated as in the Budget and shall take effect on July 1, 2020.

PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT: This 17th day of June 2020 by the following roll call vote:

AYES: DIRECTORS: Cursio, Miller, Sawhney, Chair Leffel NOES: DIRECTORS: Sabo ABSTAIN: DIRECTORS: None ABSENT: DIRECTORS: None

Approve 5. Establish Procedure for Response to Grand Jury Report

District Counsel Huber presented Item G.5, stating that the Grand Jury issued their report on June 2, 2020. He explained the function of the Civil Grand Jury and gave a brief summary of the contents of the report titled “The Airport Master Plan – a Well-Conceived Flight Plan, but Indications of Financial Turbulence Ahead.” He stated that having received this report, the Board of Directors is now obligated to provide responses to the findings and recommendations the Grand Jury has made concerning these subjects. He explained how the Board is required to respond to each finding and each recommendation and noted that to meet those objectives, Staff proposes that the Board direct that a full draft response to the Grand Jury Report be prepared by August 3, 2020 and that this report be agendized for consideration at the Board meeting scheduled for August 12, 2020.

Chair Leffel suggested establishing an Ad-Hoc Committee to draft a response to the Grand Jury report and asked that Director Sabo join her on that committee.

Director Cursio moved to establish an Ad-Hoc Committee to draft a response to the Grand Jury report, represented by Chair Leffel and Director Sabo. Director Sawhney seconded the motion. The motion passed unanimously by a roll call vote of 5-0.

10 of 12 Approve 6. Board Attendance at Future Conferences and Events

Chair Leffel presented Item G.6, noting that several of the conferences had already been cancelled. She asked that as a Board, the Directors vote that no one attends more than two.

Executive Director La Pier clarified that the budget limits the Board and staff to one conference and attendance at the SWAAAE Annual Airport Management Short Course.

Chair Leffel added that the budget can be amended in the future if needed, she stated to Executive Director La Pier that the Board feels like there are going to be a lot of changes this next year and that, as a policy setting group, it is very beneficial for the members of the Board to hear from representatives of DOT and FAA.

Public Comment: Marlana Brown, Naval Support Activity Monterey, mentioned that the Sustaining Military Readiness Conference planned for August in San Antonio, Texas had been postponed until 2021, in case anyone had planned on attending.

Director Sabo moved to approve Board attendance at one future conference and the SWAAAE Annual Airport Management Short Course. Director Sawhney seconded the motion. The motion passed unanimously by a roll call vote of 5-0.

A break was taken from 10:49 AM to 11:04 AM.

H. BOARD COMMITTEE REPORTS AND ACCEPTANCE OF DEPARTMENT REPORTS

(Report on meetings attended by Board Members at Monterey Peninsula Airport District’s expense - AB1234)

(The board receives department reports which do not require any action by the board)

b. Ad-Hoc Committees: i. Local Jurisdiction Liaison Directors Leffel & Miller

I. CLOSED SESSION

The Board entered into Closed Session at 11:37 AM.

1. ANTICIPATED LITIGATION (Government Code section 54956.9(d)(2).). The Board will meet with the Executive Director and District Counsel regarding anticipated litigation – two cases.

11 of 12 2. REAL PROPERTY NEGOTIATIONS (Government Code Section 54956.8). The Board will meet with Real Property Negotiators, Executive Director and District Counsel, regarding the property identified as 2999 Monterey-Salinas Highway, Monterey, CA 93940.

J. RECONVENE TO OPEN SESSION

The Board returned to Open Session at 1:37 PM.

Chair Leffel stated that no reportable action was taken during Closed Session.

K. PENDING REQUESTS FOR FUTURE AGENDA ITEMS

• COVID-19 Recovery Plan • Rules and Regulations

L. DISCUSSION OF FUTURE AGENDAS

• Annual Review for Executive Director La Pier

Chair Leffel stated that Director Sawhney had asked about the date of the July meeting, because it was scheduled to be so close to the Fourth of July. She added that because of the holiday closure, staff would be limited on time to prepare the agenda packet. She asked staff if it was the pleasure of staff to move the Board meeting to the 15th of July. Executive Director La Pier stated that would be staff’s request.

Director Sabo asked Executive Director La Pier for an update on his health status and what that looks like moving forward. Executive Director replied and thanked the Board for their patience the last few months.

M. ADJOURNMENT

The meeting adjourned at 1:51 PM.

Minutes Approved at the Meeting of July 15, 2020

Mary Ann Leffel, Chair

A T T E S T

Michael La Pier, AAE District Secretary

12 of 12 AGENDA ITEM: G1 DATE: July 15, 2020

TO: Monterey Peninsula Airport District Board of Directors FROM: Scott E. Huber, District Counsel SUBJ: Approve Monterey Peninsula Airport District’s Response to the 2019-2020 Grand Jury Report

BACKGROUND. The Board will consider approving the response to the 2019-2020 Monterey County Grand Jury Final Report.

STAFF ANALYSIS. On or about June 2, 2020, the Monterey County Civil Grand Jury released a report entitled “The Airport Master Plan – a Well-Conceived Flight Plan, but Indications of Financial Turbulence Ahead.” On June 17, 2020, the Board established a procedure to respond and appointed Chair Leffel and Director Sabo to an ad hoc committee to prepare a response for approval by the Board. The Board is obligated to submit its response to the Presiding Judge no later than September 2, 2020. Approval of the responses must be by formal Board action in open session.

The contents of a response to a grand jury report are stated in Penal Code section 933.05. This section requires that as to each grand jury finding, the Board must state that: (i) it agrees with the finding; (ii) it disagrees entirely with the finding; or (iii) it disagrees with part of the finding, in which case it must specify the part of the finding it disputes.

After addressing the findings in this manner, the Board must also respond to each grand jury recommendation. As to each, it must specify one of the following dispositions: (i) the recommendation has been implemented; (ii) the recommendation will be implemented; (iii) the recommendation will be further studied, including discussion of the scope of the study and the timeframe in which it will occur; or (iv) the recommendation will not be implemented and an explanation as to why the recommendation is unwarranted or unreasonable.

The ad hoc committee met with the Executive Director and District Counsel to review and revise proposed responses. The attached draft response letter was approved by the ad hoc committee members for consideration by the Board of Directors.

FISCAL IMPACT. None.

RECOMMENDATION. Approve the District’s response to the 2019-2020 Monterey County Grand Jury Final Report and authorize the Chair to sign the response on behalf of the Board of Directors.

ATTACHMENT(S).

2019-2020 Monterey County Grand Jury Report Related to MPAD Draft Response to the 2019-2020 Monterey County Grand Jury Report

1 of 1 MONTEREY PENINSULA AIRPORT DISTRICT The Airport Master Plan – a Well-Conceived Flight Plan, but Indications of Financial Turbulence Ahead

SUMMARY

The Monterey Peninsula Airport District’s 2015 Airport Master Plan presents three planning time horizons: short-term (1-5 years), intermediate-term (6-10 years), and long-term (11-20 years). The Plan recommends many capital projects during each of these three periods to improve the safety of airport operations as well as to enhance the convenience of commercial airline passengers. The greatest share of capital spending is forecast to occur during the intermediate term.

The 2019/20 Monterey County Civil Grand Jury (Civil Grand Jury) recognized that the intermediate term was about to commence and elected to investigate the Monterey Peninsula Airport District to review its historical five-year short-term results from airport operations as compared with figures used in the Airport Master Plan.

A major source of funding for capital projects is the FAA Airport Improvement Program (AIP) which provides entitlement funds to airports based, in part, on their annual passenger volume and pounds of landed cargo weight. Consequently, shortfalls in passenger volume have a significant effect on available AIP funding. A second source of funds for the projects comes from Passenger Facility Charges which would also be impacted by shortfalls in passenger volume.

The Civil Grand Jury found that even without the covid-19 crisis, the forecasted annual volumes used in the 2015 Airport Master Plan’s Capital Improvement Plan were overly optimistic for the first five years, with actual volumes coming up short by an average 8% per year.

Additionally, the Civil Grand Jury decided to investigate the viability of the proposed funding plans for the intermediate term capital investments which include the planning, design, and construction of a new commercial airline passenger terminal and its associated infrastructure. Even assuming the forecasted volumes for the intermediate - 1 - term project funding are accurate, the unfunded portion (“Local Share”) for those projects was forecast to amount to $62 million or more.

The Civil Grand Jury found that minimal effort had been spent planning to source these additional funds until September 17, 2019 when the Board contracted with a financial advisory firm to begin that planning.

GLOSSARY

AIP – The Airport Improvement Program of the Federal Aviation Administration. AMP – The 2015 Airport Master Plan for the Monterey Regional Airport. CIP – Capital Improvement Plan (section 7 of AMP) Enplanement – The act of a passenger boarding a commercial aircraft. FAA – Federal Aviation Administration. Local Share – the amount of the project cost as identified on Exhibit 7A of the AMP which is not funded by FAA AIP nor by PFC, but which must be sourced through local resources. Civil Grand Jury – The Monterey County Civil Grand Jury. MPAD – Monterey Peninsula Airport District. MRY – Airport code for Monterey Regional Airport. Pax – Passengers PFC – The Passenger Facility Charge fee that is charged to each departing paid commercial passenger (currently $4.50). Special District – a form of local government created by a community to meet a specific need.

BACKGROUND

Originally a municipal airport, the Monterey Regional Airport was acquired in 1941 by a newly formed Special District created by the State of California’s enabling legislation. The Airport is not governed by Monterey County government or by the government of any city within the County, but rather it is a separate entity governed by an elected five- member Board of Directors. The Special District has the authority to levy and collect tax as well as to issue bonds and incur debts. The District’s boundaries encompass the

- 2 - cities of Carmel, Del Rey Oaks, Monterey, Pacific Grove, Sand City, and portions of Seaside, Pebble Beach, Carmel Highlands, the west end of Carmel Valley, and the Monterey-Salinas Highway to Laureles Grade. The Airport operates as a small city with its own police and fire protection units, among other functions.

Airport operations include commercial flights as well as general aviation and military flights. Each passenger departure is known as an enplanement. In calendar year 2018 the Airport enplaned approximately 200,000 passengers and was ranked 189 in size among airports in the United States. By contrast, San Francisco International Airport enplaned 27.8 million, Norman Y Mineta San Jose International Airport enplaned 7.0 million, and Metropolitan Oakland International Airport enplaned 6.7 million in 2018.

Monterey Regional Airport is in competition with San Francisco, San Jose, and Oakland airports for a share of the commercial airline passenger business from Monterey County.

APPROACH

The Civil Grand Jury gathered information from many sources in researching the Monterey Airport Special District. Among the sources of information are:

• Airport management personnel • Monterey Peninsula Airport District Board of Directors members • The 2015 Monterey Regional Airport Master Plan • Audited financial statements (“Annual Financial and Compliance Report”) of the Monterey Peninsula Airport District for fiscal years 2017/18 and 2018/19 • Long-term Capital Budgets of the Monterey Regional Airport • FAA Nationwide Enplanement Data • Enabling Legislation for Monterey Peninsula Airport District Act of 1941 • Board of Directors meeting notes of the Monterey Peninsula Airport District • FAA Federal Airline Regulations Rule 77 • FAA Airport Improvement Program Fund Rules • FAA Passenger Facility Charge Rules (Order 5500.1)

- 3 -

DISCUSSION

The Airport Master Plan

In 2015, the Monterey Peninsula Airport District (MPAD) published an updated Airport Master Plan (AMP) that outlined the short, intermediate, and long-term development goals for the Monterey Regional Airport through the year 2035. The Plan, prepared by the consulting firm Coffman Associates, Inc., was developed over 18 months with input from professional planners, MPAD elected leaders, airport professional staff, 25 community leaders, and the general public. The report studied all aspects of airport operations including commercial aviation, general aviation and military aviation. The report analyzed the current airport inventory, made demand and capacity forecasts, analyzed facility requirements, and presented airport development alternatives; it then recommended certain development alternatives and concluded with a Capital Improvement Plan (CIP) that outlined projected costs and possible funding sources for the recommended airport improvements (see Appendix A).

The total cost of the CIP projects over the 20-year span, 2015-2035, amounts to $236,084,000. Much of this cost can be funded by federal grants and passenger facility charges (discussed below) but there remains some $62 million (the “local share”) that will need alternative sources of funds. This is because certain projects in the plan are enhancements to revenue-producing operations (parking, restaurants, car rental, etc.) which are ineligible for federal grants. These projects include relocating the passenger terminal building, with the construction occurring in the Intermediate Term about to commence.

The Terminal Building Relocation

There are two main reasons the AMP recommends relocating the terminal.1 Monterey Regional Airport has been operating under a waiver from the FAA since the 1970s because the taxiway and apron are too close to the main runway under standard taxiway-to-runway separation requirements. The taxiway and apron cannot currently be

1 The Civil Grand Jury was unable to determine whether the planners considered relocating the entire airport to the Marina Airport facility as one of the options. - 4 - moved away from the runway because the terminal building is in the way. Therefore, the plan is to rebuild the terminal building further to the southeast of its existing location, thereby improving the safety of the Airport’s commercial operations.

In addition, this move provides the opportunity to address certain design and operational shortcomings of the current terminal building, including the addition of passenger jetways so that passengers do not need to brave the elements in boarding and deplaning. Further, with the terminal relocated the Airport would be in position to handle larger commercial aircraft.

Funding Sources

The CIP section of the AMP discusses, in general terms, the possible funding sources for financing the projects. The plan anticipates a total of $158,121,968 in FAA grant funds, and $15,816,169 in Passenger Facility Charges (PFCs), leaving some $62 million to be sourced locally. This assumes that 50% of the cost of the Terminal Building construction would be eligible for federal grant money. Should that assumption prove to be too optimistic, the amount needed to be sourced locally would increase. In addition, because the amount of federal grants available is based on the Airport’s passenger volume (enplanements), should the assumptions used in the AMP for enplanements prove too optimistic there would be a resulting shortfall in available federal grants and an increase in the amount needed to be sourced locally.

The options for financing the local share are some combination of “airport revenues, issuance of a variety of bond types, and leasehold financing.”2 The issuance of bonds requires periodic payments of interest and principal, with such payments potentially funded by additional taxes on District taxpayers.

2 Monterey Regional Airport Capital Improvement Plan (Draft Final – June 2015) pg. 7-9 - 5 -

Enplanements

The FAA AIP provides “entitlement funds to airports based, in part, on their annual enplaned passengers.”3 Because the MPAD AMP anticipates such funding as one of the sources for the CIP, the Civil Grand Jury looked at the actual enplanements for the calendar years 2015-2019 to compare with those years’ respective projected enplanements in the CIP.

Initially, the Civil Grand Jury found two sources for the actual annual enplanement figures: the MPAD’s Annual Audited Financial Statements, and the FAA website.4 The Management Discussion section of the annual MPAD audited financial statements shows total monthly enplanements for the current fiscal year and previous 5 fiscal years (Table 1).

3 Monterey Regional Airport Capital Improvement Plan (Draft Final – June 2015) pg. 7-2 4 https://www.faa.gov/airports/planning_capacity/passenger_allcargo_stats/passenger/media/cy18- commercial-service-enplanements.pdf - 6 -

Figure 1 Enplanements per MPAD financial statements5

5 Monterey Peninsula Airport District Annual Financial and Compliance Report for the Years Ended June 30, 2019 and 2018 pg.7. - 7 -

The FAA table shows enplanements by calendar year total:

Figure 2 Example FAA table of Enplanements 2017 & 2018

Because the FAA data is reported in calendar year totals only, the Civil Grand Jury re- aligned the monthly amounts from the MPAD financials statement table to calculate calendar year totals. Enplanements per MPAD Enplanements Percentage Calendar Year Difference financial per FAA Difference statements 2013 206,186 205,069 (1,117) -0.5% 2014 189,780 186,935 (2,845) -1.5% 2015 182,719 180,605 (2,114) -1.2% 2016 197,324 192,136 (5,188) -2.7% 2017 203,117 197,099 (6,018) -3.1% 2018 190,304 186,806 (3,498) -1.9% Figure 3 Comparing FAA Annual Enplanements to MPAD financial statements

Note that in each year the amounts reported in the financial statements were approximately one to three percent higher than the actual FAA counts.

The Civil Grand Jury then requested documents from the MPAD relating to several areas of investigation, including the enplanements for fiscal years 2019 and 2018. The tables received provided a more granular look at the enplanement totals, showing amounts for each airline and separating Revenue Passenger Enplanements from Non- Revenue Passenger Enplanements. (See Appendix B)

Upon comparing the enplanements received from our initial document request to the enplanements reported in the financial statements, it was noted that in the 2017/18

- 8 - financial statements there is an inconsistency in which types of enplanements are included in the table; in some months (highlighted in green) the Revenue Passenger count was used, and in other months (highlighted in blue) the total passenger count (including non-revenue passengers) was used. This inconsistency seems to have been corrected in the 2018/19 financial statement table which consistently used total passengers (i.e. both Revenue and Non-Revenue passengers). However, that choice remains inconsistent with the amounts used in the FAA reporting (and therefore in calculating potential AIP funds available).

Total Total Enplanements Enplanements Rev Pax per Non Rev per per Doc per audited Month/Year Doc Request Doc Request Request financials Jul - 2017 17,868 560 18,428 18,068 Aug - 2017 16,100 350 16,450 16,450 Sep - 2017 16,038 336 16,374 16,374 Oct - 2017 16,811 340 17,151 17,151 Nov - 2017 15,576 339 15,915 15,576 Dec - 2017 15,353 387 15,740 15,740 Jan - 2018 13,302 370 13,672 13,302 Feb - 2018 13,465 293 13,758 13,758 Mar - 2018 15,448 310 15,758 15,758 Apr - 2018 15,891 456 16,347 16,400 May - 2018 15,622 493 16,115 15,622 Jun - 2018 15,857 533 16,390 15,857 Jul - 2018 16,391 531 16,922 16,922 Aug - 2018 15,537 391 15,928 15,928 Sep - 2018 14,630 324 14,954 14,954 Oct - 2018 17,851 442 18,293 18,293 Nov - 2018 17,071 479 17,550 17,550 Dec - 2018 15,477 483 15,960 15,960 Jan - 2019 14,254 435 14,689 14,689 Feb - 2019 13,299 445 13,744 13,744 Mar - 2019 17,537 391 17,928 17,928 Apr - 2019 19,159 481 19,640 19,640 May - 2019 20,760 469 21,229 21,229 Jun - 2019 21,774 551 22,325 22,325 Figure 4 Compare types of enplanements used in reporting for Management Discussion section of the audited financial statements

With those enplanement count discrepancies understood, the Civil Grand Jury turned its attention to the comparison between the enplanements projected in the Airport Master Plan of 2015 with the actual results through 2019, and the resulting impact on potential

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AIP funding. The formula6 for calculating the funding available under the AIP is as follows: $7.80 for each of the first 50,000 enplanements; $5.20 for each of the next 50,000; $2.60 for each of the next 400,000 (and other amounts for higher levels not relevant to Monterey Regional Airport). The funding for any current year is based on the enplanements from 2 years prior. In years when more than $3.2 billion is available the grant amounts are doubled.7 This doubling appears to be assumed in the AMP. As the table in Figure 5 shows, the actual relevant enplanements for the last 5 years are less than the projections assumed in the Master Plan, resulting in a calculated shortfall of $100,000 to nearly $200,000 each year in available AIP grant funding and in PFCs. Projected Actual Calculated Calculated Enplanements Calendar Year Enplanements Difference shortfall in AIP shortfall in PFCs per 2015 MPAD per FAA funding (@$4.50) Master Plan 2014 204,934 186,935 (17,999) $ (93,595) $ (80,996) 2015 209,308 180,605 (28,703) (149,256) (129,164) 2016 213,776 192,136 (21,640) (112,528) (97,380) 2017 218,339 197,099 (21,240) (110,448) (95,580) 2018 223,000 186,806 (36,194) (188,209) (162,873) Figure 5 Potential impact on AIP funding, Actual vs Projected Enplanements

Because the federal grant money anticipated by the AMP is based on the number of enplanements, fewer dollars will be available from federal grants. PFC’s are also directly impacted by the shortfall in enplanements. As a result, the amount needed to be covered by the local share is greater than previously anticipated. The Civil Grand Jury appreciates that the original forecast was based on the best information available at the time. However, with the five-year trend showing an average 8% per year shortfall in actual enplanement figures, not only is the 2015-2019 local share burden increased, but this also calls into question the accuracy of the estimates of the grant money and PFCs available in each of the succeeding years covered by the AMP.

6 Source: FAA AIP Handbook pg 4-2 https://www.faa.gov/airports/aip/aip_handbook/media/AIP- Handbook-Order-5100-38D-Chg1.pdf 7 Source: Monterey Regional Airport Capital Improvement Plan (Draft Final – June 2015) pg. 7-4

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FINDINGS

F1. Enplanements for the years 2014-2018 have consistently fallen short of the estimates used in the 2015 AMP. This has resulted in a calculated shortfall of $100,000 to nearly $200,000 each year in available AIP grant funding, with similar shortfalls in available PFCs.

F2. Even without the funding shortfall noted in F1, sources of funding for the $62 million or more in local share costs have not been identified. As stated in the AMP, these funds are primarily for the construction of the new passenger terminal building. This was concerning to the Civil Grand Jury because the Board has not effectively communicated to the taxpayers that this large funding gap looms, and the taxpayers within the District are likely not aware that the solution to the unfunded portion may include additional taxes.

F3. The number of enplanements has been inconsistently reported in the District’s financial statement package. This is a critical financial metric used to forecast available AIP grant funding available and should be as clear and accurate as possible for the public, especially for those who live within the boundaries of the MPAD.

RECOMMENDATIONS

When the 2019/20 Civil Grand Jury began our investigations, COVID-19 had not yet become a public health crisis. However, as we conclude our reports, we are tasked to specify a time frame within which to address our recommendations. We have done so, attempting to allow some extra time given the current situation. We ask the County Supervisors, Departments, Cities, and Special Districts responsible for enacting our recommendations to do their best to accomplish these goals as expeditiously as possible, given the effect of the current pandemic crisis on staffing availability.

R1. Within the scope of the contract recently executed for advice on funding sources for the “Local Share” of the project, a complete re-forecast of enplanements (and

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resulting PFC and FAA grant money) should be done, so that the total remaining unfunded local share amount is as accurate as possible. (F1 & F2).

R2. Communicate immediately with the residents of the District about the potential implications of the shortfall in grant funding available for the Terminal Building Project. (F2)

R3. As soon as they become available, share the results of the contracted inquiry into available funding sources for the local share amounts with the taxpayers. (F2)

R4. Revise the table (or alternatively add a separate table) in the Management Discussion section of future annual financial statements to include strictly revenue- passenger enplanements since that (rather than total enplanements) is the metric used by the FAA in determining available AIP funding and PFCs. (F3)

REQUIRED RESPONSES

Pursuant to Penal Code sections 933 and 933.05, the Civil Grand Jury requests responses as follows:

From the following governing bodies within 90 days: • The Board of Directors of the Monterey Peninsula Airport District, F1, F2, F3, R1, R2, R3, R4

Reports issued by the Civil Grand Jury do not identify individuals interviewed. Penal Code section 929 requires that reports of the Civil Grand Jury not contain the name of any person or facts leading to the identity of any person who provides information to the Civil Grand Jury.

APPENDICES

A – 2015 Airport Master Plan, Capital Improvement Program

B – MRY AIRPORT Enplanement/Deplanement provided by MPAD

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APPENDIX A: 2015 Airport Master Plan, Capital Improvement Plan

FAA AIP Local Share Local 1 PROJECT DESCRIPTION Project Cost Eligible AIP Match Share Remaining SHORT TERM PROGRAM (0-5 YEARS) 2016 NEPA/CEQA Environmental Documentation 1 (Terminal Relocation, New ARFF Building, North GA Development) $ 2,000,000 $ 1,813,200 $ 186,800 $- 2016 TOTALS $ 2,000,000 $ 1,813,200 $ 186,800 $- 2017 2 Hold Line/RSA Mitigation on Twys F-K $ 3,900,000 $ 3,535,740 $ 364,260 $- 2017 TOTALS $ 3,900,000 $ 3,535,740 $ 364,260 $- 2018 3 Airport Perimeter Fence $ 850,000 $ 770,610 $ 79,390 $- 2018 TOTALS $ 850,000 $ 770,610 $ 79,390 $- 2019 4 North Side GA - Design $ 1,675,100 $ 1,518,646 $ 156,454 $- 2019 TOTALS $ 1,675,100 $ 1,518,646 $ 156,454 $- 2020 5 Terminal Complex - Design (Aprons & Taxiways) $ 852,000 $ 772,423 $ 79,577 $- North Side GA - Construction 6 2 (Phase 1-Pavement/Site Prep) $ 17,871,000 $ 16,201,849 $ 1,669,151 $-

7 Runway 10L-28R Overlay and Improvements (PAPI, Twy K, L) $ 2,100,000 $ 1,903,860 $ 196,140 $- 8 ARFF Building - Design $ 960,000 $ 870,336 $ 89,664 $- 2020 TOTALS $ 21,783,000 $ 19,748,468 $ 2,034,532 $- TOTAL SHORT TERM PROGRAM $ 30,208,100 $ 27,386,663 $ 2,821,437 $- INTERMEDIATE TERM PROJECTS (Years 6-10) 9 Terminal Complex - Design (Parking Structure) $ 1,296,000 $ - $ - $ 1,296,000 10 Terminal Complex - Construction (Parking Structure) $ 13,824,000 $ - $ - $ 13,824,000 11 ARFF Building - Construction $ 10,240,000 $ 9,283,584 $ 956,416 $- 12 Terminal Complex - Construction (Aprons & Taxiways) $ 9,088,000 $ 8,239,181 $ 848,819 $- 13 Terminal Complex - Design (Terminal Building) $ 6,000,000 $ 3,000,000 $ 280,200 $ 2,719,800 3 14 Terminal Complex - Construction (Terminal Building) $ 64,000,000 $ 32,000,000 $ 2,988,800 $ 29,011,200 Terminal Complex - Design 15 (Roads & Surface Parking) $ 2,647,000 $ 1,222,000 $ 114,135 $ 1,310,865 Terminal Complex - Construction 16 (Roads & Surface Parking) $ 28,231,000 $ 13,030,000 $ 1,217,002 $ 13,983,998 17 Demolish Old Terminal Building $ 1,000,000 $ 906,600 $ 93,400 $- Taxiway A Shift to 327.5’ - Env. Design, Construction - 18 Includes Taxiway “Island” Improvements $ 35,000,000 $ 31,731,000 $ 3,269,000 $- 19 Taxiway E Relocation - Env, Design, Construction $ 3,100,000 $ 2,810,460 $ 289,540 $- TOTAL INTERMEDIATE TERM PROGRAM $ 174,426,000 $ 102,222,825 $ 10,057,312 $ 62,145,863 LONG TERM PROJECTS (Years 11-20) 20 North Side Access Road - Env., Design, Construction $ 10,000,000 $ 9,066,000 $ 934,000 $- 2 21 North Side GA - Construction (Phase 2-Pavement) $ 8,376,900 $ 7,594,498 $ 782,402 $- 22 Maintenance Building $ 1,200,000 $ 1,087,920 $ 112,080 $- 23 RPZ Land Acquisition (20 Acres)/Easement (10 Acres) $ 10,000,000 $ 9,066,000 $ 934,000 $- 24 Extend Taxiway B to Rwy 28L Threshold $ 1,873,000 $ 1,698,062 $ 174,938 $- TOTAL LONG TERM PROGRAM $ 31,449,900 $ 28,512,479 $ 2,937,421 $- TOTAL PROGRAM COSTS $ 236,084,000 $ 158,121,968 $ 15,816,169 $ 62,145,863 1 California Federal share is up to 90.66%. 2 Does not include revenue facilities such as hangars or a fuel farm. 3 Terminal construction estimated at 50% eligible. FAA Modernization and Reform Act of 2012 limits terminal construction discretionary funds to $20 million. AIP: Airport Improvement Program Exhibit 7A Source: Coffman Associates IMPROVEMENT PROGRAM

APPENDIX B: MRY AIRPORT Enplanement / Deplanement ELITE AIRWAYS Monthly YEAR: 2017- AMERICAN EAGLE UNITED EXPRESS ALASKA ALLEGIANT (Unscheduled) Total 2018 Rev Non- Total Rev Non- Total Rev Non- Total Rev Non- Total Rev Non- Total Pax Rev Pax Rev Pax Rev Pax Rev Pax Rev July 2017 Enplanement 5,986 295 6,281 7,503 234 7,737 2,989 31 3,020 1,330 1,330 60 60 18,428 Deplanement 6,431 252 6,683 6,883 205 7,088 3,044 35 3,079 1,372 1,372 60 60 18,282 12,417 547 12,964 14,386 439 14,825 6,033 66 6,099 2,702 0 2,702 120 0 120 36,710 August 2017 Enplanement 5,211 173 5,384 7,711 155 7,866 1,869 22 1,891 1,243 1,243 66 66 16,450 Deplanement 5,546 128 5,674 7,624 158 7,782 1,851 12 1,863 1,209 1,209 70 70 16,598 10,757 301 11,058 15,335 313 15,648 3,720 34 3,754 2,452 0 2,452 136 0 136 33,048 September 2017 Enplanement 4,911 165 5,076 8,487 154 8,641 1,633 17 1,650 952 952 55 55 16,374 Deplanement 4,983 177 5,160 7,971 162 8,133 1,591 16 1,607 1,002 1,002 55 55 15,957 9,894 342 10,236 16,458 316 16,774 3,224 33 3,257 1,954 0 1,954 110 0 110 32,331 October 2017 Enplanement 5,537 205 5,742 8,171 123 8,294 1,856 12 1,868 1,179 1,179 68 68 17,151 Deplanement 5,670 143 5,813 7,846 117 7,963 1,856 5 1,861 1,210 1,210 68 68 16,915 11,207 348 11,555 16,017 240 16,257 3,712 17 3,729 2,389 0 2,389 136 0 136 34,066 November 2017 Enplanement 5,156 179 5,335 7,406 150 7,556 1,841 10 1,851 1,173 1,173 0 15,915 Deplanement 5,313 162 5,475 7,158 123 7,281 1,814 11 1,825 1,109 1,109 0 15,690 10,469 341 10,810 14,564 273 14,837 3,655 21 3,676 2,282 0 2,282 0 0 0 31,605 December 2017 Enplanement 4,931 192 5,123 7,442 184 7,626 1,742 11 1,753 1,210 1,210 28 28 15,740 Deplanement 4,813 183 4,996 6,880 170 7,050 1,687 12 1,699 1,105 1,105 32 32 14,882 9,744 375 10,119 14,322 354 14,676 3,429 23 3,452 2,315 0 2,315 60 0 60 30,622 January 2018 Enplanement 4,511 153 4,664 6,244 191 6,435 1,481 26 1,507 996 996 70 70 13,672 Deplanement 4,925 147 5,072 6,640 144 6,784 1,580 27 1,607 1,135 1,135 70 70 14,668 9,436 300 9,736 12,884 335 13,219 3,061 53 3,114 2,131 0 2,131 140 0 140 28,340 APPENDIX B: MRY AIRPORT Enplanement / Deplanement ELITE AIRWAYS Monthly YEAR: 2017- AMERICAN EAGLE UNITED EXPRESS ALASKA ALLEGIANT (Unscheduled) Total 2018 Rev Non- Total Rev Non- Total Rev Non- Total Rev Non- Total Rev Non- Total Pax Rev Pax Rev Pax Rev Pax Rev Pax Rev February 2018 Enplanement 4,559 115 4,674 6,447 160 6,607 1,516 18 1,534 943 943 0 0 13,758 Deplanement 4,535 100 4,635 6,062 143 6,205 1,621 17 1,638 966 966 0 0 13,444 9,094 215 9,309 12,509 303 12,812 3,137 35 3,172 1,909 0 1,909 0 0 0 27,202 March 2018 Enplanement 5,609 99 5,708 6,735 194 6,929 1,815 17 1,832 1,165 1,165 124 124 15,758 Deplanement 5,487 106 5,593 6,609 155 6,764 1,910 15 1,925 1,113 1,113 66 66 15,461 11,096 205 11,301 13,344 349 13,693 3,725 32 3,757 2,278 0 2,278 190 0 190 31,219 April 2018 Enplanement 6,811 251 7,062 6,212 196 6,408 1,780 9 1,789 1,088 1,088 0 16,347 Deplanement 7,294 248 7,542 5,894 164 6,058 1,858 9 1,867 1,100 1,100 62 62 16,629 14,105 499 14,604 12,106 360 12,466 3,638 18 3,656 2,188 0 2,188 62 0 62 32,976 May 2018 Enplanement 6,091 242 6,333 6,716 237 6,953 1,781 14 1,795 964 964 70 70 16,115 Deplanement 6,331 249 6,580 6,312 185 6,497 1,729 13 1,742 975 975 70 70 15,864 12,422 491 12,913 13,028 422 13,450 3,510 27 3,537 1,939 0 1,939 140 0 140 31,979 June 2018 Enplanement 5,137 195 5,332 7,880 308 8,188 1,535 30 1,565 1,249 1,249 56 56 16,390 Deplanement 5,269 196 5,465 7,940 309 8,249 1,468 15 1,483 1,197 1,197 56 56 16,450 10,406 391 10,797 15,820 617 16,437 3,003 45 3,048 2,446 0 2,446 112 0 112 32,840 YEARLY 131,047 4,355 135,402 170,773 4,321 175,094 43,847 404 44,251 26,985 0 26,985 1,206 0 1,206 382,938 TOTALS

APPENDIX B: MRY AIRPORT Enplanement / Deplanement

ELITE AIRWAYS Monthly YEAR: 2018- AMERICAN EAGLE UNITED EXPRESS ALASKA ALLEGIANT (Unscheduled) Total 2019 Rev Non- Total Rev Non- Total Rev Non- Total Rev Non- Total Rev Non- Total Pax Rev Pax Rev Pax Rev Pax Rev Pax Rev July 2018 Enplanement 6,212 264 6,476 7,185 239 7,424 1,664 28 1,692 1,264 1,264 66 66 16,922 Deplanement 6,745 255 7,000 6,965 250 7,215 1,520 24 1,544 1,243 1,243 69 69 17,071 12,957 519 13,476 14,150 489 14,639 3,184 52 3,236 2,507 0 2,507 135 0 135 33,993 August 2018 Enplanement 4,914 164 5,078 7,613 195 7,808 1,789 32 1,821 1,152 1,152 69 69 15,928 Deplanement 5,434 175 5,609 7,835 186 8,021 1,685 25 1,710 1,161 1,161 69 69 16,570 10,348 339 10,687 15,448 381 15,829 3,474 57 3,531 2,313 0 2,313 138 0 138 32,498 September 2018 Enplanement 4,756 142 4,898 7,119 160 7,279 1,736 22 1,758 953 953 66 66 14,954 Deplanement 5,006 109 5,115 7,043 131 7,174 1,569 22 1,591 867 867 66 66 14,813 9,762 251 10,013 14,162 291 14,453 3,305 44 3,349 1,820 0 1,820 132 0 132 29,767 October 2018 Enplanement 5,257 171 5,428 9,671 253 9,924 1,819 18 1,837 1,104 1,104 0 18,293 Deplanement 5,393 164 5,557 9,564 246 9,810 1,688 21 1,709 1,111 1,111 0 18,187 10,650 335 10,985 19,235 499 19,734 3,507 39 3,546 2,215 0 2,215 0 0 0 36,480 November 2018 Enplanement 4,715 182 4,897 9,130 287 9,417 1,749 10 1,759 1,418 1,418 59 59 17,550 Deplanement 4,888 167 5,055 9,211 253 9,464 1,564 12 1,576 1,377 1,377 56 56 17,528 9,603 349 9,952 18,341 540 18,881 3,313 22 3,335 2,795 0 2,795 115 0 115 35,078 December 2018 Enplanement 4,786 181 4,967 8,040 280 8,320 1,694 22 1,716 928 928 29 29 15,960 Deplanement 4,705 178 4,883 7,541 254 7,795 1,389 19 1,408 929 929 0 15,015 9,491 359 9,850 15,581 534 16,115 3,083 41 3,124 1,857 0 1,857 29 0 29 30,975 January 2019 Enplanement 4,742 141 4,883 7,129 257 7,386 1,352 37 1,389 1,031 1,031 0 14,689 Deplanement 5,141 115 5,256 7,626 260 7,886 1,310 43 1,353 1,167 1,167 30 30 15,692 9,883 256 10,139 14,755 517 15,272 2,662 80 2,742 2,198 0 2,198 30 0 30 30,381 APPENDIX B: MRY AIRPORT Enplanement / Deplanement ELITE AIRWAYS Monthly YEAR: 2018- AMERICAN EAGLE UNITED EXPRESS ALASKA ALLEGIANT (Unscheduled) Total 2019 Rev Non- Total Rev Non- Total Rev Non- Total Rev Non- Total Rev Non- Total Pax Rev Pax Rev Pax Rev Pax Rev Pax Rev February 2019 Enplanement 4,895 142 5,037 5,900 277 6,177 1,492 26 1,518 943 943 69 69 13,744 Deplanement 5,183 132 5,315 5,815 159 5,974 1,298 21 1,319 946 946 68 68 13,622 10,078 274 10,352 11,715 436 12,151 2,790 47 2,837 1,889 0 1,889 137 0 137 27,366 March 2019 Enplanement 5,788 160 5,948 8,847 206 9,053 1,726 25 1,751 1,112 1,112 64 64 17,928 Deplanement 5,882 141 6,023 8,641 206 8,847 1,578 29 1,607 1,063 1,063 63 63 17,603 11,670 301 11,971 17,488 412 17,900 3,304 54 3,358 2,175 0 2,175 127 0 127 35,531 April 2019 Enplanement 7,673 225 7,898 8,785 225 9,010 1,639 31 1,670 993 993 69 69 19,640 Deplanement 8,041 214 8,255 8,772 241 9,013 1,645 22 1,667 1,049 1,049 67 67 20,051 15,714 439 16,153 17,557 466 18,023 3,284 53 3,337 2,042 0 2,042 136 0 136 39,691 May 2019 Enplanement 8,392 208 8,600 9,426 251 9,677 1,762 10 1,772 1,123 1,123 57 57 21,229 Deplanement 8,904 228 9,132 9,392 239 9,631 1,625 12 1,637 1,063 1,063 57 57 21,520 17,296 436 17,732 18,818 490 19,308 3,387 22 3,409 2,186 0 2,186 114 0 114 42,749 June 2019 Enplanement 8,800 306 9,106 9,635 220 9,855 1,874 25 1,899 1,404 1,404 61 61 22,325 Deplanement 9,056 296 9,352 9,100 193 9,293 1,837 31 1,868 1,310 1,310 62 62 21,885 17,856 602 18,458 18,735 413 19,148 3,711 56 3,767 2,714 0 2,714 123 0 123 44,210 YEARLY 145,308 4,460 149,768 195,985 5,468 201,453 39,004 567 39,571 26,711 0 26,711 1,216 0 1,216 418,719 TOTALS

July 15, 2020

The Honorable Julie R. Culver Presiding Judge Monterey County Superior Court 240 Church Street Salinas, CA 93901

Re: Monterey Peninsula Airport District’s Response to 2019-2020 Monterey County Civil Grand Jury Report

Dear Judge Culver:

Pursuant to Penal Code section 933, subsection (c), et seq., the Monterey Peninsula Airport District, which operates the Monterey Regional Airport (collectively referred to as “MPAD”), has reviewed the 2019-2020 Monterey County Civil Grand Jury Final Report (“Final Report”) regarding the Airport Master Plan (“AMP”) and the funding of proposed capital projects listed in the Master Plan’s Capital Improvement Plan (“CIP”). The MPAD would like to thank the Grand Jury members for their effort and dedication in researching the issues and in preparing the annual report.

In preparing this response, information and input was obtained from various sources regarding each finding and recommendation, including several staff members, whose information and input is incorporated in the responses. In response to the Final Report released June 2, 2020, the MPAD Board of Directors [[[unanimously]]] approved the following response in a public session of its duly noticed meeting held on July 15, 2020.

At the outset, the MPAD Board of Directors notes that the grand jury primarily focused its concerns on the capital funding plans for the proposed new airport terminal that could result in an alleged undisclosed future tax burden on citizens of the Airport District or the County.

The MPAD desires to address that important and just concern by stating to the Grand Jury and the public that the MPAD has no legal authority to issue debt backed by general or special tax revenues. Further, the District has never contemplated seeking such taxing authority as a means of financing any aspect of the MPAD's AMP.

If the proposed projects proceed as planned, there will not be any financial impact on the residents of the District or the County. All capital costs will be funded by federal grants and debt instruments supported by internally generated airport funds.

FINDINGS

Response: Agree in part; Disagree in part.

The enplanement forecast in the AMP is a federal mandate that is required as part of the overall FAA process. The AMP numbers are not intended to be used, and are not used, for any debt service calculations.

The MPAD agrees that the annual enplanement totals have not aligned with the forecast in the 2015 AMP. However, the Grand Jury statement incorrectly assumes that the AMP forecast will be used throughout the financing process for any new capital project. New forecasts are required for any debt financing process related to a capital project. At the time that the financing is contemplated, a new and standalone financial analysis will be conducted to determine the level of debt that can be supported by PFC revenues at the time the actual lending will occur.

It is important to note that MPAD has affirmatively and consistently maintained the position that no capital project contained within the AMP program will be undertaken unless and until all funding sources have been identified and secured.

F2. Even without the funding shortfall noted in F1, sources of funding for the $62 million or more in local share costs have not been identified. As stated in the AMP, these funds are primarily for the construction of the new passenger terminal building. This was concerning to the Civil Grand Jury because the Board has not effectively communicated to the taxpayers that this large funding gap looms, and the taxpayers within MPAD are likely not aware that the solution to the unfunded portion may include additional taxes.

Response: Agree in part; Disagree in part.

While the MPAD agrees that complete funding sources will need to be identified for all components of the AMP program, the MPAD continues to maintain that no capital project exhibited as part of the AMP program will be approved by the Board or undertaken until and unless all funding sources have been identified and considered. It is important to note that the MPAD enabling legislation does not authorize parcel tax increases or the issuance of taxpayer secured debt to pay for airport district operations or capital projects.

As the Grand Jury highlighted in their report, in 2019 the MPAD retained the services of a very qualified and respected financial planning consultant and has begun the process of developing its financial plan for each component of the overall CIP program. As the results of the financial planning efforts become known to the MPAD, that information will be shared with the Board of Directors and the general public through the traditional and required public processes and forums including properly noticed public Board Meetings and the publicly available website of the MPAD at www.montereyairport.com.

Any debt, if issued by the MPAD to fund capital projects, would be securitized with current MPAD revenues, such as Passenger Facility Charges (“PFCs”) or Customer Facility Charges (“CFCs”). The risk associated with PFC or CFC backed facility bonds is first borne by the general revenues of the MPAD, and then by the bondholders. At no time, and under no The Honorable Julie R. Culver July 15, 2020 Page 3

circumstances, would the risk of these types of revenue bonds be shouldered by the taxpayers living within the jurisdiction of the MPAD.

F3. The number of enplanements has been inconsistently reported in MPAD’s financial statement package. This is a critical financial metric used to forecast available AIP grant funding available and should be as clear and accurate as possible for the public, especially those who live within the boundaries of the MPAD.

Response: Disagree.

The manner in which the MPAD reports enplanement numbers in prepared financial packages is consistent with Generally Accepted Accounting Principles (“GAAP”), as required during the audit process. It is important to note that there has always been, and will continue to be, discrepancies between the passenger data as reported by the MPAD and the passenger data that the airlines report to the Department of Transportation (“DOT”). The MPAD receives revenue and nonrevenue generating enplanement/deplanement data directly from the airlines monthly in mixed formats which are then summarized in various reports. The DOT, through their regulatory reporting requirements, has a much broader view of passenger activity. The FAA utilizes the DOT data to calculate AIP grant funding opportunities. Annually, the MPAD is provided with an Enplanement report prepared by DOT, rather than by the air carriers. The MPAD is afforded the opportunity to compare and comment on any discrepancy between the information provided in the annual DOT report and the information received monthly from the local airlines.

Any material discrepancy in the various reports, whether timing related or report related, is reconciled annually in the required financial audit of the MPAD’s financial affairs. The MPAD is confident the data reported is as clear and accurate as possible and is consistent with all industry accepted practices and GAAP requirements.

RECOMMENDATIONS

R1. Within the scope of the contract recently executed for advice on funding sources for the “Local Share” of the project, a complete re-forecast of enplanements (and resulting PFC and FAA grant money) should be done, so that the total remaining unfunded local share amount is as accurate as possible. (F1 & F2).

Response: Will be implemented.

As indicated above, the forecast that will be used as part of the MPAD’s discussions with the financial market will be generated independent of the forecast contained within the AMP. It is very important to the MPAD that the forecast used be as reflective as possible of current conditions, as well as an accurate predictor of future conditions. This is not only proper financial management, but the updated forecast will be required by the financial markets as part of any PFC or CFC backed revenue instruments. The Honorable Julie R. Culver July 15, 2020 Page 4

R2. Communicate immediately with the residents of MPAD about the potential implications of the shortfall in grant funding available for the Terminal Building Project. (F2).

Response: Will be implemented.

The findings of the financial analysis will be reported to the Board of Directors and the public at one or more properly noticed public meetings and will be part of the ongoing information that is shared with the Board of Directors and the public.

No decisions will be made by the MPAD Board of Directors regarding proceeding with the Airport Terminal Project without a thorough assessment and understanding of all aspects of the associated funding requirements and the sources. That information, as always, will be shared with the Board of Directors and members of the public through publicly accessible portals, such as the Airport website at www.montereyairport.com.

R3. As soon as they become available, share the results of the contracted inquiry into available funding sources for the local share amounts with the taxpayers. (F2).

Response: Will be implemented.

All financial planning information will be shared with the Board of Directors and the public through publicly accessible portals, such as the Airport website at www.montereyairport.com. In addition, members of the public are invited to and are welcome to attend the meetings of the MPAD Board of Directors where this information will be discussed.

R4. Revise the table (or alternatively add a separate table) in the Management Discussion section of future annual financial statements to include strictly revenue-passenger enplanements since that (rather than total enplanements) is the metric used by the FAA in determining available AIP funding and PFCs. (F3).

Response: Will not be implemented.

The MPAD follows and maintains compliance with all Generally Accepted Accounting Principles and Government Account Standards Board reporting standards. In addition, the MPAD follows airport industry established best reporting practices. This format and practice is nationally utilized by other U.S. commercial airports and is authorized and accepted by FAA.

Respectfully submitted,

Monterey Peninsula Airport District

Mary Ann Leffel Chair of the Board of Directors

AGENDA ITEM: G2 DATE: July 15, 2020

TO: Board of Directors FROM: Michael La Pier, Executive Director Scott E. Huber, District Counsel SUBJ: Resolution No. 1780, A Resolution Ordering an Election, Requesting the Monterey County Elections Department to Conduct the Election, Requesting Consolidation of the Election and Stating the Determination of the Board of Directors of the Monterey Peninsula Airport District with Respect to Candidates’ Statements of Qualifications

BACKGROUND. The Board may consider the adoption of Resolution No. 1780 to call for the election of Directors for the Monterey Peninsula Airport District.

DISCUSSION. Pursuant to California Elections Code section 1002, et seq., the Board must timely call for the election of Directors. The elections have traditionally been consolidated with the presidential and/or congressional election in November of even numbered years. Consolidation is the most cost-effective method of electing Directors to the Board of the Monterey Peninsula Airport District.

During this cycle, there are three (3) Director positions whose terms will expire at the end of 2020. As a result of the transition to by-district elections, the districts up for election will be District 1, 3, and 5. Qualified candidates for election from each district must be residents of the district in which they run for election. By passage of the resolution, the Board will call for the election of three Director positions, one Director from each district.

The Board will consider adoption of the Resolution.

BUDGET EFFECT. The estimated cost of the election is $105,000, which has been placed in the annual budget.

RECOMMENDATION. Adoption of Resolution No. 1780, A Resolution Ordering an Election, Requesting the Monterey County Elections Department to Conduct the Election, Requesting Consolidation of the Election and Stating the Determination of the Board of Directors of the Monterey Peninsula Airport District with Respect to Candidates’ Statements of Qualifications.

ATTACHMENTS.

Resolution No. 1780

1 of 1 RESOLUTION NO. 1780

A RESOLUTION ORDERING AN ELECTION, REQUESTING THE MONTEREY COUNTY ELECTIONS DEPARTMENT TO CONDUCT THE ELECTION, REQUESTING CONSOLIDATION OF THE ELECTION AND STATING THE DETERMINATION OF THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT WITH RESPECT TO CANDIDATES' STATEMENTS OF QUALIFICATIONS

WHEREAS, pursuant to Elections Code Section 10002, the governing body of any district may by resolution request the Board of Supervisors of the county to permit the county elections official to render specified services to the district relating to the conduct of an election; and

WHEREAS, the resolution of the governing body of the district shall specify the services requested; and

WHEREAS, pursuant to Elections Code Section 10002, the district shall reimburse the county in full for the services performed upon presentation of a bill to the district; and

WHEREAS, pursuant to Elections Code Section 10400, whenever two or more elections, including bond elections, of any legislative or congressional district, public district, city, county, or other political subdivision are called to be held on the same day, in the same territory, or in territory that is in part the same, they may be consolidated upon the order of the governing body or bodies or officer or officers calling the elections; and

WHEREAS, pursuant to Elections Code Section 10400, such election for cities and special districts may be either completely or partially consolidated; and

WHEREAS, pursuant to Elections Code Section 10403, whenever an election called by a district for any office to be filled is to be consolidated with a statewide election, and the office to be filled is to appear on the same ballot as that provided for the statewide election, the district shall, at least 88 days prior to the date of the election, file with the Board of Supervisors, and a copy with the elections official, a resolution of its governing board requesting the consolidation, and setting forth the office to be voted upon at the election, as it is to appear on the ballot. Upon such request, the Board of Supervisors may order the consolidation; and

WHEREAS, pursuant to Elections Code section 13307, whenever an election called by a district has offices to be filled, it is required to fix and determine the number of words that a candidate may submit on the candidate’s statement to be either 200 or 400 words and to determine if the candidate and/or the political subdivision will pay the cost of the statement; and

WHEREAS, Elections Code section 15651 requires the district to determine the means and manner in which a tie vote is to be resolved in the event that two or more persons receive an equal number of votes and the highest number of votes (“tie votes”) for an office to be voted upon; and

WHEREAS, the resolution requesting the consolidation shall be adopted and filed at the same time as the adoption of the resolution calling the election; and

WHEREAS, various city, district, county, state and other political subdivision elections may be or have been called to be held on November 3, 2020; and

WHEREAS, there will be a total of three four-year offices on the Board of Directors of this District, to be filled at said election, said offices now filled by the following Board Members:

Mary Ann Leffel four-year term expiring 2020 William Sabo four-year term expiring 2020 Lisa Sawhney two-year term expiring 2020

NOW, THEREFORE, BE IT RESOLVED AND ORDERED THAT the Board of Directors of the Monterey Peninsula Airport District hereby orders that an election be called and consolidated with any and all elections also called to be held on November 3, 2020 insofar as said elections are to be held in the same territory or in territory that is in part the same as the territory of the Monterey Peninsula Airport District and requests that the Board of Supervisors of the County of Monterey order such consolidation under Elections Code Sections 10401 and 10403; and

BE IT FURTHER RESOLVED AND ORDERED THAT said governing body requests the Board of Supervisors to permit the Monterey County Elections Department to provide any and all services necessary for conducting the election and agrees to pay for said services; and

BE IT FURTHER RESOLVED AND ORDERED THAT the Monterey County Elections Department conduct the election for the purpose of electing three Members to this Governing Board on the November 3, 2020 ballot:

POSITION SEATS OPEN OFFICE TERM Board District One One Board of Directors Four Years Board District Three One Board of Directors Four Years Board District Five One Board of Directors Four Years

BE IT FURTHER RESOLVED AND ORDERED THAT pursuant to Elections Code section 13307 the Monterey Peninsula Airport District has resolved that all costs of the Candidate’s statement be paid by the candidate and that no candidate may submit a statement of over 200 words; and

BE IT FURTHER RESOLVED AND ORDERED THAT pursuant to Elections Code section 10551, a tie vote shall be resolved by lot.

BE IT FURTHER RESOLVED AND ORDERED THAT tie votes shall be determined by the governing body.

BE IT FURTHER RESOLVED AND ORDERED THAT the District Secretary is authorized and directed to prepare, sign and submit or file any and all maps, forms, notices of election or other documents that may be required in connection with the conduct of this election by the Monterey County Elections Department and the county elections official.

PASSED AND ADOPTED BY THE BOARD OF DIRECTORS OF THE MONTEREY PENINSULA AIRPORT DISTRICT: This 15th day of July 2020, by the following roll call vote:

AYES: DIRECTORS: NOES: DIRECTORS: ABSTAIN: DIRECTORS: ABSENT: DIRECTORS:

Signed this 15th day of July 2020

Mary Ann Leffel, Chair

A T T E S T

Michael La Pier, AAE District Secretary AGENDA ITEM: H DATE: July 15, 2020

TO: Michael La Pier, Executive Director, Monterey Regional Airport FROM: Department Heads SUBJECT: Monthly Department Reports

FINANCE AND ADMINISTRATION.

Terminal Comment Card Log by Administration Financial Summary by Tim Bergholz, Deputy Executive Director of Finance & Administration

FIRE.

Monthly Fire Report by Monterey Fire Department

OPERATIONS.

Operations Report by Ken Griggs, Operations Manager

PLANNING AND DEVELOPMENT.

Planning & Development Report by Chris Morello, Deputy Director of Strategy and Development

POLICE.

Police Activity Report by Del Rey Oaks Police Department Tone Date Time Airline Flt # A/D/G Comments City & State No Comment Cards submitted during the month of June.

2020 Terminal Comment Cards AGENDA ITEM: H DATE: July 15, 2020

TO: Michael La Pier, Executive Director, Monterey Regional Airport FROM: Tim Bergholz, Deputy Executive Director Finance and Administration SUBJECT: Fiscal Year 2020 Financial Summary

BACKGROUND. May 2020 financial results are summarized in the following documents:

• Graphic Comparison - Actual Operating Revenue & Actual Operating Expense • Airport Operating Statistics & Financial Performance • Capital Expenditures • Investments Schedule • Sources / Uses of Cash

In May 2020, the Monterey County Health Department and national shelter in place health emergency continued to impact the Airport tenants and users of the Airport. Commercial airline enplanements, general aviation landings and passenger counts were slowly improving. Airport concessions are remaining open, but customer traffic is slow.

The federal government’s Corona virus Aid, Relief, and Economic Security (CARES) Act, passed on March 27, 2020, and the Airport received the approved $12.6M grant in May. To assist Airport aviation related tenants the Board of Directors authorized abatement of rents and minimum monthly/annual concession payments (MAGs) from May 1, 2020 to October 31, 2020. To offset lower revenues Airport staff submitted two grant reimbursement requests for eligible expenses incurred through April 30, 2020 and May 31, 2020.

As mentioned in April the following Airport financial statements include a comparative skew to budget because of the national health emergency’s impact on operations. In May, the Airport’s revenues continued to decline, and operating expenses are down to basic fixed and variable costs.

SUMMARY. May 2020 combined Airport operating revenues are $353.6K which is $419.8K (54.3%) lower than budget ($773.4K), and FYTD revenues are $8.48M which is $300.5K (3.4%) lower than budget ($8.78M). The May unfavorable revenue variance is attributed to lower revenues in all categories. Most of the businesses operating in the Non-Aviation and other operating categories were considered essential services and continued to operate during the health emergency.

OPERATING REVENUES

May May FYTD FYTD 2020 2020 VARIANCE 2020 2020 VARIANCE AC T U AL BUDGET $ % AC T U AL BUDGET $ %

$ 353,604 $ 773,397 $ (419,793) -54.3% $ 8,476,477 $ 8,777,029 $ (300,552) -3.4%

1 of 7 Commercial Aviation (CA) fees in May are under budget ($24.7K actual vs $73.4K budget) by $48.7K or 66.3%. Aircraft landing volumes (96) are under budget (348) by 252 landings. The CA unfavorable volume variance is related to the COVID-19 national health emergency impacting operations. In May, all commercial airlines enplanements totaled 1,623 passengers. Commercial

In May scheduled flight cancellations (landings and departures) were 21 on a reduced flight schedule (Alaska 6, Allegiant 4, American 2, and United 9). FYTD commercial flight cancellations are 639 (Allegiant 24, Alaska 30, American 262 and United 344).

General Aviation (GA) operating revenues for May ($90.2K) are $68.1K or 43.0% lower than budget ($158.3K). This unfavorable GA revenue variance resulted from lower GA Landing and Fuel Flowage fees. FYTD GA revenues ($1.64M) that are $151.4K or 8.4% lower than budget ($1.80M).

In May combined TCP permits, Taxi Permits/Trips, TNC Trips, Terminal Concessions, Rental Car and Parking Concessions (Concessions) fees ($30.2K) are $161.2K or 84.2% lower than budget ($191.4K). The May Concessions variance contains lower revenues in all categories.

May Non-Aviation Tenant revenues ($168.5K) are lower than budget ($185.0) by $16.5K or 8.9%. This unfavorable variance resulted from lower tenant rents. In May the Airport offered rent abatements to tenants who were forced to close by the Monterey County Health Department. Tarpy’s restaurant received a rent abatement of approximately $13.0K per month. FYTD Non- Aviation Tenants revenues ($2.00M) are over budget ($1.94M) by $63.7K or 3.28%.

May Other Operating Revenues ($11.9K) are lower than budget ($17.7K) by $5.8K or 32.8%. The unfavorable variance resulted from lower Utility Charge Backs ($4.7K) and other small variances. FYTD Other Operating revenues ($366.2K) are higher than budget ($329.7K) by $36.5K or 11.1%.

OPERATING EXPENSES May May FYTD FYTD 2020 2020 VARIANCE 2020 2020 VARIANCE AC T U AL BUDGET $ % AC T U AL BUDGET $ % $ 658,176 $ 703,341 $ 45,165 -6.4% $ 7,845,985 $ 8,308,959 $ 462,974 -5.6%

May operating expenses ($658.2K) are under budget ($703.3K) by $45.2K or 6.4%. The expense variance came from the following:

Salary & Wages and Employer Payroll Tax (Wages) Expenses ($169.9K) for May are under budget ($184.1K) by $14.249K or 7.73%. The favorable variance came from the reduction of four positions (2 filled and 2 vacant) in March that resulted in continued savings in May.

Employer Benefit Expenses ($112.2K) for May are lower than budget ($117.5K) by $5.4K or 4.6%. The variance is the result of lower benefits payments with the reduction of four (2 filled and 2 vacant) positions in March that resulted in continued savings in May.

2 of 7 Personnel Related Expenses ($2.4K) for May were under budget ($8.4K) by $6.0K or 71.5%. The favorable variance comes mostly from lower Travel & Business Entertainment expenses ($4.6K) and other Seminars and Meetings/Workshops ($1.4K).

Business Related Expenses ($45.5K) for May are over budget ($23.0K) $22.5K or 97.4%. Most of the expense increase comes from a $22.0K bad debts accrual. In April the Airport received a chapter 11 bankruptcy notice from Hertz Rent-a-Car. The accrual will cover the current accounts receivables from Hertz.

Expendable/Consumable Supplies & Materials expenses ($4.5K) for May are lower than budget ($8.9K) by $4.4K or 49.5%. This favorable expense variance resulted from lower custodial, general, maintenance, office, vehicle and fuel supplies & materials expenses.

Repair & Maintenance expenses ($8.8K) for May are under budget ($43.1K) by $34.3K or 79.6%. The favorable variance resulted from lower repair & maintenance expenses in all categories.

Outside Services expenses ($245.4K) for May are over budget ($238.8K) by $6.5K or 2.7%. The unfavorable variance comes from an Other/Contract Services timing difference while renegotiating an OpTerra/Engie Solar Array monitoring/guarantee contract in April. The new contract removed the solar guarantee which saves the Airport about $12.5K per year. The revised invoice was received and paid in May.

Professional Service expenses ($30.7K) for May are over budget ($27.5K) by $3.2K or 11.7%. In May the Airport enrolled in Alvarez Technologies Managed Security Services program for $3.6K per year.

Marketing related expenses ($3.6K) for May were under budget ($16.3K) by $12.7K or 77.8%. Most of the variance resulted from lower Marketing expenses.

Combined Utilities expenses for May ($29.7K) are under budget ($30.1K) $373 or 1.2%. The variance comes from lower electricity usage.

May FYTD Operating Expenses are $7.84M which is $462.9K or 5.6% lower than budget ($8.31M). This favorable variance is attributed to lower expenses in most expense categories.

Lower revenues due to the national health emergency and lower operating expenses resulted in an operating loss of $304.6K for May which is $374.6K lower than budget $70.1K. FYTD operating income is $630.5K which is $184.4K or 34.7% higher than budget ($468.1K).

OPERATING INCOME / (LOSS) May May FYTD FYTD 2020 2020 VARIANCE 2020 2020 VARIANCE AC T U AL BUDGET $ % AC T U AL BUDGET $ % $ (304,572) $ 70,056 $ (374,628) -534.8% $ 630,492 $ 468,070 $ 162,422 34.7%

3 of 7 ACCOUNTS RECEIVABLE. The accounts receivable balance on May 31, 2020 is $314K. This balance is 30.3% lower than April 30, 2020 balance of $451K and 40.9% lower than the $532K balance on May 31, 2019. The net accounts receivable balance over 60 days old on May 31, 2020 is $9.6K.

On March 31, 2020, the Airport Staff offered Airlines, Rental Car, Parking and Concessions vendors the option to defer space rents and minimum guaranteed payments until June 30. Additionally, in May Airport Staff offered rent and MAG abatements to aviation related tenants beginning May 1, 2020. Both support programs have created delays in accounts receivables payments that should subside in July or August.

Chart 1 depicts the accounts receivable balances by month for the 13 months from May 2019 to May 2020.

Chart 1

The balance of accounts receivable at month-end will align with operating revenues in that month. The month end balance of accounts receivables historically was approximately 50% to 70% of revenues. Due to the change in business plus tenant deferred payments, and rent and MAG abatements, the timing of payments has changed. For May 2020, accounts receivables are 88.8% of revenues and the 13-month average is 63.1%. Included in the May accounts receivables balance is a $22.0K increase in the reserve for bad debts to cover the Hertz bankruptcy and other slow accounts.

Chart 2 graphically presents the monthly comparison of operating revenues to accounts receivable.

4 of 7 Chart 2

UNRESTICTED CASH AND INVESTMENTS. The unrestricted cash and investments balance on May 31, 2020 is $5.21M and the unrestricted cash and investments balance on April 30, 2020 was $5.43M, a decrease of $226.1K. The decrease in unrestricted cash and investments resulted from transferring $226.1K to fund vendor payments in May. The District also recognized interest from investments interest of ($2.9K).

Chart 3 graphically presents the monthly balances of unrestricted cash and investments.

Chart 3

Table 1 presents simple load factors for fiscal years 2017, 2018, 2019 and 2020. Load factors indicate the customer utilization of available aircraft seating capacity which generally correlates to customer use of TCP, Taxi and TNC services, parking, and other support services. Simple load factors do not include non-revenue enplanements. Historically annual load factors range from approximately 70% to 77%. Commercial Airline aircraft types have a direct link to capacity and potential changes in enplanements. As the mix of aircraft and destinations change the goal is to have load factors follow which indicates that customers are willing to use the services offered by

5 of 7 the Airlines and Airport.

As previously mentioned, the national health emergency significantly impacted all tenant operations at the Airport. Table 1 clearly shows the impact of the national health emergency on simple load factors.

Airline specific average simple load factors for May 2020 are Alaska 8.8%, American 33.6%, United 6.9%, and Allegiant 17.1%.

Table 1

April 2020 FYTD Fiscal Load Available Load Available Year Factors Enplanements Seats Flights Factors Enplanements Seats Flights 2020 21.8% 1,623 7,448 96 68.1% 168,210 246,980 3,732 2019 71.9% 20,760 28,874 431 68.8% 183,830 267,009 3,996 2018 70.2% 15,622 22,260 347 76.1% 174,199 228,906 3,585 2017 71.3% 18,832 26,418 395 73.9% 188,546 255,116 3,913 2016 73.6% 17,970 24,420 375 74.9% 170,370 227,508 3,597

Chart 4 (next page) presents a comparison of monthly FY 2018, 2019 and 2020 enplanements, which represents the Airport's business cycle. When comparing May 2020 and April 2020, enplanements increased 170% or 1,022 enplanements. When comparing May 2020 to May 2019, enplanements decreased 92.2% or 19,137 enplanements.

6 of 7 Chart 4

7 of 7 Monterey Peninsula Airport District

May 2020 Operating Revenue

OTHER, $11,926 , 3% INTEREST INCOME, $2,870 , 1%

TERMINAL & COMMERCIAL AVIATION, $80,130 , 23%

NON-AVIATION, $168,458 , 48%

LIGHT GENERAL AVIATION, $36,130 , 10% Balance Sheet - July 31, 2016 HEAVY GENERAL AVIATION, $54,090 , 15%

TOTAL OPERATING REVENUE: $353,604

May 2020 Operating Expense

RENTAL PROPERTY, $8,497 , 1%

BOARD OF DIRECTORS, INTEREST FINANCE & $9,851 , 2% EXPENSE, ADMINISTRATION, $5,568 , 1% $166,203 , 25%

ARFF / FIRE, $168,053 , 26%

PLANNING & DEVELOPMENT, $51,450 , 8%

POLICE, $101,523 , 15%

MAINTENANCE, $107,602 , 16% OPERATIONS, $39,430 , 6%

TOTAL OPERATING EXPENSE: $658,176 Monterey Peninsula Airport District

FY 2020 (July 19 - May 20) YTD Operating Revenue

OTHER, $366,162 , 4% INTEREST INCOME, $79,104 , 1% NON-AVIATION, $2,002,591 , 24%

TERMINAL & COMMERCIAL AVIATION, $4,384,573 , 52% LIGHT GENERAL AVIATION, $412,197 , 5%

HEAVY GENERAL AVIATION, $1,231,850 , 14%

TOTAL OPERATING REVENUE: $8,476,477

FY 2020 (July 19 - May 20) YTD Operating Expense

INTEREST EXPENSE, RENTAL PROPERTY, $65,368 , 1% $179,401 , 2%

BOARD OF DIRECTORS, FINANCE & $142,394 , 2% ADMINISTRATION, $2,011,893 , 26%

ARFF / FIRE, $1,893,437 , 24%

POLICE, $1,109,287 , 14% PLANNING & DEVELOPMENT, $499,705 , 6%

MAINTENANCE, $1,445,436 OPERATIONS, $499,064 , , 19% 6%

TOTAL OPERATING EXPENSE: $7,823,985 AIRPORT DISTRICT OPERATING AND FINANCIAL PERFORMANCE SUMMARY May 31, 2020 OPERATING STATISTICS May-20 Budget May-19 YTD FY 20 Budget YTD FY 19

AIRPORT ACTIVITY Air Carrier Landings1 96 348 -72.4% 431 3,707 4,106 -9.7% 3,996 Passengers (emp/dep) 3,324 41,801 337,969 368,651 Total Cargo (in pounds) 67,407 68,111 722,651 747,174

Commercial 494 1,476 12,821 14,338 General Aviation 1,702 2,733 28,677 36,920 Military 77 81 1,241 2,834 TOTAL AIRCRAFT OPERATIONS 2,273 4,290 42,739 54,092

VEHICLE EXIT COUNT Long Term (1) Lot 285 2,053 18,191 19,903 Upper Short Term (2) Lot 385 2,229 16,112 21,101 Lower Short Term (3) Lot 1,468 6,532 57,735 70,238 TOTAL VEHICLE EXIT COUNT 2,138 10,814 92,038 111,242

1 Cancelled Flights: Current Month = 21 (6 - Alaska /4 - Allegiant /2- American /9- United) FYTD = 660 (24 - Alaska /30 - Allegiant /262- American /344 - United) May 20 May 20 May 19 YTD FY 20 YTD FY 19 ACTUAL BUDGET % ACTUAL ACTUAL BUDGET % ACTUAL OPERATING REVENUE TERMINAL CA Landing, Apron, RON and Fuel Flowage Fees 24,730 73,431 -66.3% 82,682 770,675 819,501 -6.0% 777,436 Rents 19,042 143,977 -86.8% 144,689 1,470,430 1,585,315 -7.2% 1,590,534 TCP Operator Permits 424 590 -28.1% 583 7,286 6,490 12.3% 7,217 Taxi Operator Permits & Trip Fees 917 5,826 -84.3% 6,676 50,245 61,177 -17.9% 61,585 TNC Permits & Trip Fees 1,854 14,348 -87.1% 20,121 174,852 160,874 8.7% 175,623 Concessions 858 15,836 -94.6% 21,448 172,666 176,981 -2.4% 217,129 Rental Car 32,305 91,776 -64.8% 114,073 1,013,632 1,070,891 -5.3% 1,113,149 Parking - 63,021 -100.0% 91,508 724,788 759,686 -4.6% 814,214 HEAVY GENERAL AVIATION GA Landing Fees 13,637 32,706 -58.3% 39,882 315,082 364,554 -13.6% 374,721 FBO Rent 28,733 57,780 -50.3% 57,780 606,533 635,580 -4.6% 635,580 Fuel Fees 11,720 29,334 -60.0% 39,958 310,235 372,299 -16.7% 379,914 LIGHT GENERAL AVIATION 36,130 38,458 -6.1% 38,192 412,197 423,038 -2.6% 415,938 NON AVIATION 168,458 185,003 -8.9% 147,704 2,002,591 1,938,936 3.3% 1,610,131 OTHER OPERATING REVENUE 11,926 17,761 -32.9% 18,525 366,162 329,657 11.1% 396,999 INTEREST INCOME 2,870 3,550 -19.1% 3,449 79,104 72,050 9.8% 86,070 TOTAL OPERATING REVENUE$ 353,604 $ 773,397 -54.3% $ 827,268 $ 8,476,477 $ 8,777,029 -3.4% $ 8,656,240 ** ** OPERATING EXPENSE $ (300,553) Finance & Administration 166,203 165,011 0.7% 154,055 2,011,893 2,016,997 -0.3% 1,834,942 Planning & Development 51,450 43,910 17.2% 46,312 499,705 514,949 -3.0% 447,470 Maintenance & Custodial Services 107,602 145,876 -26.2% 141,661 1,445,436 1,650,209 -12.4% 1,400,833 Airport Operations 39,430 45,964 -14.2% 31,475 499,064 555,870 -10.2% 406,808 Police Department 101,523 100,805 0.7% 95,610 1,109,287 1,112,281 -0.3% 1,200,070 ARFF /Fire Services 168,053 172,846 -2.8% 179,114 1,893,437 1,905,493 -0.6% 1,972,740 Board of Directors 9,851 12,826 -23.2% 15,921 142,394 138,072 3.1% 123,619 Office Rentals 8,497 10,535 -19.3% - 179,401 349,701 -48.7% - Interest Expense 5,568 5,568 0.0% 6,906 65,368 65,387 0.0% 79,960 TOTAL OPERATING EXPENSE$ 658,176 $ 703,341 -6.4% $ 671,053 $ 7,845,985 $ 8,308,959 -5.6% $ 7,466,443

OPERATING INCOME / (LOSS)$ (304,572) $ 70,056 -534.8% $ 156,215 $ 630,492 $ 468,071 34.7% $ 1,189,797

DISTRICT CAPITAL EXPENDITURES $ 76,334 $ 149,500 -48.9% $ 10,248 $ 509,821 $ 3,865,908 -86.8% $ 816,348

DEBT SERVICE - PRINCIPAL ONLY $ 41,030 $ 33,495 $ 451,949 $ 360,442 FISCAL YEAR 2020 Airport Capital Improvements / Capital Expenditures FINANCIAL STATEMENTS UNAUDITED May 31, 2020

Actual FY 2020 Prior Fiscal Year Actual FY 2020 Prior Fiscal Year Airport Improvement Programs Current Period Current Period Year-To-Date Year-To-Date District Expenditures (49,780.18) 5.9% (29,536.61) -3.1% (66,784.66) 0.9% 707,611.28 -299.4% AIP -- FAA Funded Expenditures (599,209.19) 70.7% 895,496.02 92.5% (6,751,118.88) 90.0% (900,584.54) 381.1% AIP -- PFC Funded Expenditures (198,966.87) 23.5% 102,235.99 10.6% (688,769.52) 9.2% (43,356.08) 18.3% AIP -- CFC Funded Expenditures - 0.0% 0.00 0.0% 2,359.35 0.0% 0.00 0.0% Total Capital Improvement Expenditures (847,956.24) 100% 968,195.40 100% (7,504,313.71) 100% (236,329.34) 100%

District Capitalized Acquisitions / Expenditures By Department Finance & Administration - - 114,478.93 - Planning & Development - - - Maintenance & Custodial Services 126,114.42 39,784.99 402,070.60 108,737.19 Airport Operations - - 39,558.94 - Police - - - - ARFF / Fire - - 20,496.76 - Total Capital Acquisition Expenditures 126,114.42 0% 39,784.99 576,605.23 0% 108,737.19 0%

Consolidated District Expenditures 76,334.24 -10.6% 10,248.38 1.0% 509,820.57 -7.4% 816,348.47 -639.8% AIP -- FAA Funded Expenditures (599,209.19) 83.0% 895,496.02 88.8% (6,751,118.88) 97.5% (900,584.54) 705.8% AIP -- PFC Funded Expenditures (198,966.87) 27.6% 102,235.99 10.1% (688,769.52) 9.9% (43,356.08) 34.0% AIP -- CFC Funded Expenditures - 0.0% 0.00 0.0% 2,359.35 0.0% 0.00 0.0% Total Capital Expenditures (721,841.82) 100% 1,007,980.39 100% (6,927,708.48) 100% (127,592.15) 100%

FY 2019/20 District Capital Expenses/Budget: Actual PTD Budget PTD R2 Actual YTD Budget YTD R2 2016-01 NEPA & CEQA (49,064.46) - 35,606.92 - 2017-07 FAA Disparity Study (707.94) - (707.94) - 2018-04 East End Procedure Development - 5,000.00 187.50 20,000.00 2018-09 Runway 10L-28R Overlay & PAPI (7.78) - (24,702.58) - 2019-01 Infield Safety Area Rehab Phase 1 - - (133,546.45) - 2019-03 Water Distribution System - - 4,899.10 2,809,608.00 2019-06 Pavement Rehabilitation - - - - 2019-09 Resturant Asset Purchase - - 114,478.93 130,000.00 2019-10 Land Acquisition - - (160,159.67) - 2019-11 ARFF BLDG Exhaust - - 10,248.38 - 2020-X1 P3 Evaluation Program - - 2020-05 Operations Dept Vehicle - - 39,558.94 45,000.00 2020-06 Inside Terminal Refresh - - 120,606.05 124,300.00 2020-07 Short Term Lot Pavement Rehab - - 110,580.00 105,000.00 2020-08 External Sign Replacement - - 44,770.13 45,000.00 2020-10 SWRCB Analysis - 19,500.00 123,773.39 185,000.00 2020-11 PG&E Lighting Project 126,114.42 - 126,114.42 152,000.00 2020-12 Northside GA Apron Construction (25,823.10) 71,040.35 - 2020-13 Northside VSR Improvement 25,823.10 - 27,073.10 - 2020-14 Demolish Building 505 - 125,000.00 - 250,000.00

76,334.24 * 149,500.00 509,820.57 * 3,865,908.00

7/8/2020 1:31 PM 01 FY 2020 PD 11 (May 20) Financial Package BOD 20200629.xlsx Stat Rprt Capt Exp FISCAL YEAR 2020 Schedule Of Investments FINANCIAL STATEMENTS UNAUDITED

Purchase Maturity Value At Interest Date Date 05/31/20 Rate Money Market Account - MPAD State of California - Local Agency Investment Fund Various Various $2,607,666.43 1.940%

Money Market Account - MPAD JP Morgan Chase - District Reserve - Money Market Account $960,189.08 0.18%

Royal Alliance - Certificates of Deposits and Cash Equivalents - MPAD American Express Centurion Bk CTF DEP 06/03/15 06/03/20 120,000.00 120,000.00 2.10% American Express Centurion Bk Instl CTF DEP ACT/365 07/01/15 07/01/20 135,000.00 135,000.00 2.35% Capital One Bk USA Natl Assn Allen VA CTF DEP ACT/365 09/02/15 09/02/20 200,000.00 200,000.00 2.20% Capital One Bk USA Natl Assn Glen Allen VA CTF DEP ACT/365 02/23/17 02/23/22 50,000.00 50,000.00 2.30% Citizens St Bank Lacrosse Wisconsin CTF DEP ACT/365 05/18/16 05/18/21 125,000.00 125,000.00 1.40% Comenity Capital Bank Salt Lake City Utah CTF DEP 10/21/16 10/29/21 100,000.00 100,000.00 1.75% Discover Bk Greenwood DEL CTF ACT/365 03/01/17 03/01/22 25,000.00 25,000.00 2.30% Discover Bk Greenwood DEL CTF DEP ACT/365 06/13/19 06/14/21 100,000.00 3.00% Everrbank Jacksonville FLA CTF DEP ACT/365 07/28/16 07/28/21 120,000.00 120,000.00 1.45% Goldman Sachs Bk USA New York CTF DEP ACT/365 05/31/17 05/16/22 145,000.00 145,000.00 1.80% Sallie Mae BK Salt Lake City UT CTF DEP ACT/365 06/13/19 06/13/23 125,000.00 125,000.00 3.30% State Bank India New York NY CTF DEP ACT/360 02/24/17 02/24/22 125,000.00 125,000.00 2.25% Synchrony Bk Retail CTF DEP 04/17/15 04/17/20 0.00 - 1.85% Synchrony Bk Retail CTF DEP 06/29/16 06/29/21 120,000.00 120,000.00 1.55%

Cash And Cash Equivalents Various Various 146,911.60 Variable $1,636,911.60

Sub-Total: MPAD INVESTMENTS: $5,204,767.11

Page 14 FISCAL YEAR 2020 Schedule Of Investments FINANCIAL STATEMENTS UNAUDITED

Purchase Maturity Value At Interest Date Date 05/31/20 Rate

Tenant's Security Deposits & Certificates of Deposit - RESTRICTED JP Morgan Chase - Money Market Account Various Various $50,090.74 0.20%

Passenger Facility Charges (PFCs) - RESTRICTED JP Morgan Chase - Passenger Facility Charges (PFCs) 1,265,088.74 0.20%

Customer Facility Charges (CFCs) - RESTRICTED 615,780.42 JP Morgan Chase - Customer Facility Charges (CFCs)

Royal Alliance - Certificates of Deposits and Cash Equivalents: Capital One Bk USA Natl Assn Glen Allen VA CTF DEP ACT/365 08/24/16 08/24/21 100,000.00 1.60% Capital One Bk USA Natl Assn Glen Allen VA CTF DEP ACT/365 02/23/17 02/23/22 50,000.00 2.30% CitiBank NATL ASSN SIOUX FALLS SB CTF DEP ACT /365 08/14/19 08/15/22 120,000.00 3.15% Discover Bk Greenwood Del CTF DEP ACT/365 03/01/17 03/01/22 120,000.00 2.30% Discover Bk Greenwood Del CTF DEP ACT/365 08/30/19 08/08/22 130,000.00 3.15% Goldman Sachs BK USA NY CTF DEP ACT/365 01/02/20 01/03/22 50,000.00 3.15% State BK India NY, NY CFT DEP ACT/360 02/24/17 02/24/22 30,000.00 2.25% Wells Fargo NA Sioux Falls SD CTF DEP ACT 365 05/23/19 05/26/20 0.00 2.75% Wells Fargo NA Sioux Falls SD CTF DEP ACT 365 05/23/19 05/24/21 150,000.00 2.90%

Cash and Cash Equivalents Various Various 275,500.91 Various $1,025,500.91

Sub-Total: MPAD Investments - RESTRICTED: $2,956,460.81

Total MPAD Investment Portfolio: $8,161,227.92

Page 15 MONTEREY PENINSULA AIRPORT DISTRICT FINANCIAL STATEMENTS UNAUDITED FY 2020 FY 2020 CURRENT-PERIOD YEAR-TO-DATE ACTUAL ACTUAL SOURCES AND USES OF CASH -- OPERATIONS

SOURCES OF CASH

CASH RECEIVED - OPERATING REVENUE $ 350,733 $ 8,397,373

CASH RECEIVED - INTEREST INCOME 2,870 79,104

CASH RECEIVED $ 353,604 $ 8,476,477

USES OF CASH -- OPERATIONS

CASH DISBURSED - OPERATING EXPENSE1 $ 652,608 $ 7,780,617

CASH DISBURSED - DEBT SERVICE (INTEREST EXPENSE)2&3 5,568 65,368

CASH DISBURSED - DEBT SERVICE (PRINCIPAL REDUCTION)2&3 41,030 451,949

CASH DISBURSED $ 699,206 $ 8,297,934

CHANGE IN CASH POSITION FROM OPERATIONS & DEBT SERVICE $ (345,602) $ 178,543

1Net of non-cash operating expense (OPEB) 2Moved to Restricted POB Account/Disbursement occured in December 2019 & June 2020 3Moved to Restricted CEC Account/Disbursement occured in November 2019 & May 2020

USES OF CASH -- CAPITAL PROGRAM

CASH DISBURSED - DISTRICT CAPITAL PROJECTS4 $ 76,334 $ 509,821

CASH DISBURSED $ 76,334 $ 509,821

CHANGE IN CASH POSITION FROM CAPITAL PROGRAM $ (76,334) $ (509,821)

4District-funded capital plan for FY20

CHANGE IN CASH POSITION FROM OPERATIONS, CAPITAL $ (421,937) $ (331,278) & DEBT SERVICE

01 FY 2020 PD 11 (May 20) Financial Package BOD 20200629.xlsx Sources and Uses

MONTEREY FIRE DEPARTMENT Report to Airport Board of Directors June 2020

1. Incident Responses Engine assigned to Fire Station 16 (Airport) responded to a total of 18 incidents during the month as follows:  MPAD property – 5  City of Monterey – 13  Other Cities in Monterey Fire Jurisdiction – 0  Auto / Mutual Aid – 0

2. Training Personnel completed a total of 4.0 hours of Airport related training during the month. Currently the following numbers of personnel are qualified in the ARFF training program:  Awareness (familiar with operations at the Airport): 81  Operational (qualified to work at Airport, but live fire training not current): 31  Technician (fully qualified to be the designated ARFF fire engineer): 14

3. Other  We graduated our most recent Recruit Academy on June 26. The seven probationary firefighters began their time working in the stations on June 28. As with all of our personnel, they will rotate through the Airport Station during their probation to learn about Airport Firefighting operations.  Two of our ARFF qualified personnel were unable to attend the live fire training this past March due to COVID restrictions. They were provided an extension by the FAA through the end of June. We are working on an alternative to get them requalified. In the meantime, we have enough qualified personnel to ensure coverage and will ensure we do not violate FAA regulations.

MONTEREY FIRE DEPARTMENT - Report to Airport Board of Directors

4. Incident List – on Airport property incidents

Respone Alarm Date / Time Location Incident Type Time 6/1/2020 3:37 AM 0:05:33 1202 AIRPORT ROAD System malfunction, other 6/1/2020 4:45 PM 0:00:00 150 OLMSTED WAY EMS call, excluding vehicle accident with injury 6/13/2020 1:44 PM 0:02:25 200 FRED KANE DR EMS call, excluding vehicle accident with injury 6/13/2020 1:44 PM 0:02:40 200 FRED KANE DR EMS call, excluding vehicle accident with injury 6/23/2020 8:08 AM 0:02:35 200 FRED KANE DR EMS call, excluding vehicle accident with injury

AGENDA ITEM: H DATE: July 15, 2020

TO: Michael La Pier, Executive Director FROM: Operations Department DATE: July 1, 2020 SUBJ: Operations Report ______

The following is a summary of activity of general Airport Operations for June 2020 and planned airline activities for July 2020.

1. COVID-19 has continued to impact commercial and general aviation operations, however overall operations have slowly increased. LAX resumes on July 8th and a second PHX flight resumes on July 7th.

JSX operations begin on July 2nd to Orange County. Service to Burbank is scheduled to begin on July 23rd. Monterey Jet Center staff will be doing all of the ground handling needs for JSX, at this time.

2. The following reports are attached: • June 2020 Noise Comment Report • Operating and Expense Reports for the Taxi (through May 2020) and TNC ground transportation systems (through April 2020) • Commercial Flight Cancellations & Delays Report for June 2020 • Commercial Flight Schedule for July 2020

3. Below is the summary of scheduled airline activity for June 2020:

Alaska Air operated by SkyWest - Continues to use the Embraer (EMB) 175 aircraft to SAN - Scheduled to operate a monthly total of 62 flights (Arrivals and Departures)

Allegiant Air - Continues to use the Airbus 319/320 series to LAS - Scheduled to operate a total of 18 flights (Arrivals and Departures)

United operated by SkyWest - SFO is scheduled for one daily flight using the EMB 175 aircraft. - LAX resumes with one daily flight, five times a week beginning on July 8th using the CRJ 200 aircraft. - Scheduled to operate a monthly total of 78 flights (Arrivals and Departures)

American Eagle operated by SkyWest / Envoy - PHX is scheduled two daily flights using CRJ 700 aircraft - DFW continues with one daily flight using the EMB 175 aircraft. - Scheduled to operate a monthly total of 174 flights (Arrivals and Departures)

Cumulatively speaking, the airlines have reduced 566 flights (332 vs. 898) compared to July 2019, a decrease of 63%. The number of available seats has also decreased by approximately 60% (24,086 vs. 59,540).

1 of 1 MRY AIRPORT NOISE COMMENT LOG JUNE 2020 Location Incident Incident Aircraft of Comments Name (Address) Date Time ID Flight By Action Taken Notes AIR OPERATIONS CENTERED AT MONTEREY AIRPORT 6:49 PM & Aircraft at 1000ft height of ground 1 Kenneth Nowak Pasadera 6/2/2020 Jet 28L App MC Acknowledged and noted 7:59 PM 550ft "United flight, too low, directly over Military 737 charter. As the homes. Now that flights are resuming, aircraft is larger than the our neighborhood requests an update majority of flights at MRY, it 2 L Virshup Pasadera 6/4/2020 12:29 PM B735 28L App MC Acknowledged and noted on what the Airport Board told us it may have gave the impression applied to the FAA for: a standard of being lower than usual. approach over Highway 68." Submitter has been provided N521SB at 1100 feet at this location Part 91.119 minimum altitude 3 Kenneth Nowak Pasadera 6/6/2020 3:44 PM Jet 28L App by radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted requirements on multiple only 550 feet directly overhead. occasions after complaint received ENY3460 at 1000 feet at this location 4 Kenneth Nowak Pasadera 6/6/2020 08:15 PM Emb 175 28L App by radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 350 feet directly overhead.

EJA621 at 900 feet at this location by 5 Kenneth Nowak Pasadera 6/7/2020 05:15 PM Jet 28L App radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 350 feet directly overhead.

ENY3460 at 900 feet at this location 6 Kenneth Nowak Pasadera 6/7/2020 08:15 PM Emb 175 28L App by radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 350 feet directly overhead. 6/9/2020 8:17 PM Aircraft at 1000ft height of ground 7 Kenneth Nowak Pasadera 6/9/2020 8:39 PM Jet 28L App MC Acknowledged and noted 550ft 6/10/2020 8:13 PM Aircraft at 1000ft height of ground 8 Kenneth Nowak Pasadera 6/11/2020 8:08 PM E175 28L App MC Acknowledged and noted 550ft Regretfully I need to report repeated circling of a small and very loud aircraft flying low over homes and disrupting the weekends of the Del Rey Oaks community. What a shameful and disrespectful act to Witnessed Aircraft doing touch residents for the repeated circling and go's, the tail number was 9 Steven Elliot DRO 6/14/2020 2:00 PM unknown Pattern buzzing noise on the same pattern. ZK Acknowledged and noted not registered to a MRY I’ve lost count but I think it’s 8 or 9 tenant. Aircraft departed area times directly over the exact same after. area - very low and very loud. I actually thought things were better but this afternoon has been horrible. Just circled again as I type, maybe 10th time? Same plane did no less than 11 touch and go/low pattern flying over DRO. Pilot never changed altitude or path Kenneth for any of the loops over city. It has 10 DRO 6/14/2020 1:30-2:30 PM unknown Pattern ZK Acknowledged and noted Same aircraft as above. Rutherford been nice these past few months - sure hope you can bring this pilot in line with the rules and noise restrictions in the area. Thanks, Ken

Acknowledged and noted. Further complaint received at Plane doing loops, 5th in the last 20 Went on to airfield on receipt 12:20PM. I was unable to 11 Steven Elliot DRO 6/20/2020 11:25 AM unknown Pattern MC mins of complaint. Aircraft had locate or identify the aircraft ceased doing pattern work as pattern work had ceased.

ENY3460 at 1000 feet at this location 12 Kenneth Nowak Pasadera 6/19/2020 8:00 PM Emb 175 28L App by radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 450 feet directly overhead.

N605VR at 1000 feet at this location 13 Kenneth Nowak Pasadera 6/19/2020 8:05 PM unknown 28L App by radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 450 feet directly overhead

SKW2986 at 1000 feet at this location 14 Kenneth Nowak Pasadera 6/20/2020 11:54 AM Emb 175 28L App by radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 450 feet directly overhead.

EJA516 at 1000 feet at this location by 15 Kenneth Nowak Pasadera 6/20/2020 4:41 PM unknown 28L App radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 450 feet directly overhead.

SKW5845 at 1100 feet at this location 16 Kenneth Nowak Pasadera 6/21/2020 11:30 AM unknown 28L App by radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 550 feet directly overhead.

EJA765 at 1100 feet at this location by 17 Kenneth Nowak Pasadera 6/21/2020 3:16 PM unknown 28L App radar. Ground at 550 feet. Aircraft ZK Acknowledged and noted only 550 feet directly overhead. Aircraft at 1100ft height of ground 18 Kenneth Nowak Pasadera 6/24/2020 8:09 PM EMB175 28L App MC Acknowledged and noted 550ft The tail number was not 4:54 PM - 5:05 Aircraft performing excessive pattern 19 Steven Elliot DRO 6/24/2020 Single Engine Pattern MC Acknowledged and noted registered to a MRY tenant. PM work - 8 passes observed Aircraft departed area after. Loud white and blue plane has already done 6 touch and go, low loops over Del Rey Oaks. Please Kenneth 4:40 PM - 4:53 obtain the identity of this plane so we 20 DRO 6/24/2020 Single Engine Pattern MC Acknowledged and noted Same aircraft as above. Rutherford PM can see if they are a tenant or sub tenant of MRY and so we can escalate this to FAA. Please forward your complaint to the FAA and I’ll do the same Submitter has been provided Jets flying low and loud. Where is the 12:06 PM & Part 91.119 minimum altitude 21 L Virshup Pasadera 6/25/2020 Jet 28L App preferred approach that was MC Acknowledged and noted 12:14 PM requirements on multiple promised. occasions Small plane took off and was low over 22 Wayne Marien DRO 6/26/2020 6:30 PM Unknown Unknown MC Acknowledged and noted houses Kenneth Small plane took off and was low over 23 DRO 6/26.2020 6:30 PM Unknown Unknown MC Acknowledged and noted Rutherford houses Small plane took off and was low over 24 Steven Elliot DRO 6/26/2020 6:30 PM Unknown Unknown MC Acknowledged and noted houses 25 26

AIR OPERATIONS ORIGINATING FROM ANOTHER AIRPORT Called and spoke to Nola. Sounds like these aircraft originated from Watsonville. Explained airports don't 4 Pipers flying low in formation control airspace. Also 1 Nola Santa Cruz 6/13/2020 11:40 Piper MC making noise. explained basic visual flying. Gave FSDO number. She appreciated acknowledgement of her phone call. ID:N79MC direction of flight MRY:N/A - this same plane with this ID is also Called Ms. Young and flying from PAO and flies very loud explained airports do not 2 Cathy Young Los Altos 6/16/2020 5:25 PM Unknown Off airport and low over my home continually ZK control airpsace. Gave the many days creating a public FSDO number disturbance. Pls stop this terriby loud noise AIR OPERATIONS OF UNKNOWN ORIGIN 0 **NONE** MONTHLY TOTALS and COMPARISONS

Jun-20 Jun-19 % Change Other Airport UNKNOWN ORIGINS Number of Complaints: 26 30 -13% 0 0 Number of Operations: 3,220 5,910 -46% % Change Annual Total 131 118 11% 0 0 13-MONTH ROLLING COMPARISON Taxis

NUMBER OF TRIPS

2,300 2,233 2,130

2,050 2,085 2,013 1,934 1,800 1,694

1,550 1,520 1,377

1,300 1,405

1,050

800 702

550 376 324

300

107

50 JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE 2019 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020

2019 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 2020 JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY JUNE NUMBER OF TRIPS 2,085 2,013 1,934 2,233 2,130 1,694 1,520 1,405 1,377 702 107 324 376 PERMITS SOLD 59 8 2 2 0 0 0 0 0 0 0 0 0

TAXI TRIP FEES $ 6,255 $ 6,039 $ 5,802 $ 6,699 $ 6,390 $ 5,082 $ 4,560 $ 4,215 $ 4,131 $ 2,106 $ 321 $ 972 $ 1,128 TAXI PERMIT FEES $ 200 $ 5,900 $ 800 $ 200 $ 200 $ 75 TAXI - TOTAL REVENUE $ 6,455 $ 6,039 $ 5,802 $ 6,699 $ 12,290 $ 5,882 $ 4,760 $ 4,415 $ 4,131 $ 2,181 $ 321 $ 972 $ 1,128

CURB MGMT CONTRACT SOFTWARE LICENSE/HOSTING $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 $ 2,408 BEACON LICENSING $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 $ 1,000 TAXI - TOTAL EXPENSE $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408 $ 3,408

OPERATING INCOME / (LOSS) $ 3,047 $ 2,631 $ 2,394 $ 3,291 $ 8,882 $ 2,474 $ 1,352 $ 1,007 $ 723 $ (1,227) $ (3,087) $ (2,436) $ (2,280)

FYTD 2020 (July 2019 - June 2020) OPERATING INCOME / (LOSS) $ 13,724

CUMULATIVE (12-MONTH) OPERATING INCOME / (LOSS) $ 13,724

03 Rolling 13-Month Taxi Statistics 13 Month Taxi 13-MONTH ROLLING COMPARISON Transportation Network Companies (TNCs)

NUMBER OF TRIPS

7,800 7,748 7,830 7,550 7,524 7,300 7,565 7,050 6,800 7,048 6,673 6,550 6,707 6,300 5,914 6,050 5,800 6,220 5,550 5,791 5,300 5,050 4,800 4,550 4,300 4,050 3,800 3,550 3,300 3,050 2,800 2,821 2,550 2,300 2,050 1,800 1,550 1,300 1,050 800 550 380 300 618 MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY 2019 2019 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020

2019 2019 2019 2019 2019 2019 2019 2019 2020 2020 2020 2020 2020 MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER JANUARY FEBRUARY MARCH APRIL MAY NUMBER OF TRIPS 6,707 7,748 7,048 7,524 7,565 7,830 6,673 6,220 5,914 5,791 2,821 380 618 NUMBER OF TNCs 2 2 2 2 2 2 2 2 2 2 2 2 2

TNC TRIP FEES $ 20,121 $ 23,244 $ 21,144 $ 22,572 $ 22,695 $ 23,490 $ 20,019 $ 18,660 $ 17,742 $ 17,373 $ 8,463 $ 1,140 $ 1,854 TNC PAYMENT PENALTIES $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - TNC - TOTAL REVENUE $ 20,121 $ 23,244 $ 21,144 $ 22,572 $ 22,695 $ 23,490 $ 20,019 $ 18,660 $ 17,742 $ 17,373 $ 8,463 $ 1,140 $ 1,854

Cumulative 12-Month Operating Income: $ 198,396

Fiscal Year To Date (July 2019 - June 2020) Operating Income: $ 175,152

Rolling 13-Month TNC Statistics 13 Month TNC JUNE 2020 June Commercial Flights Operated vs. Canceled

0 0 4 100% 2 2 90% 4 80% 70% 60% 58 60 219 50% 25 58 40% 14 30% 20% 10% 0% LAS PHX SAN DFW SFO TOTALS Canceled 4 0 2 0 2 4 Operated 14 58 25 60 58 219 % Canceled 22.22% 0.00% 7.41% 0.00% 3.33% 1.79%

TOTAL CANCELLATIONS: 4

June Commercial Flights On Time vs. Delayed

0 0 100% 1 5 3 9 90% 80% 70% 60% 25 58 50% 13 53 57 210 40% 30% 20% 10% 0% LAS PHX SAN DFW SFO TOTALS Delayed 1 5 0 3 0 9 On Time 13 53 25 57 58 210 % Delayed 5.56% 8.62% 0.00% 5.00% 0.00% 4.04%

TOTAL DELAYED FLIGHTS: 9 Monterey Regional Airport July 2020 Flight Schedule

ARRIVALS DEPARTURES

Aircraft Aircraft Type FROM AIRLINE FLIGHT TIME SCHD TO AIRLINE FLIGHT TIME SCHD Type (Seats) (Seats) MON, WED, CRJ200 EMB175 (50) LAX 5677 10:45 AM THU, FRI, SUN DFW 3461 6:00 AM JULY 1 - 6 (76) exc JULY 3 MON, TUE, EMB175 CRJ700 (76) SFO 5845 11:30 AM WED, FRI & PHX 3014 6:15 AM JULY 7 - 31 (66) JULY 4 MON, WED, EMB175 CRJ200 (76) SAN 3450 11:40 AM DAILY LAX 5479 11:15 AM THU, FRI, SUN (50) exc JULY 3

CRJ700 EMB175 (66) PHX 2986 11:55 AM JULY 1 - 6 SAN 3450 12:20 PM DAILY (76)

EMB175 EMB175 (76) DFW 3553 12:00 PM JULY 7 - 31 DFW 3553 12:30 PM JULY 7 - 31 (76)

CRJ700 3041 1:25 PM JULY 7 - 31 CRJ700 PHX 3041 12:45 PM JULY 7 - 31 PHX (66) 2986 1:45 PM JULY 1 - 6 (66)

A319 2:45 PM A319 (156) LAS 83 2:00 PM MON & FRI LAS 84 MON & FRI (156)

3218 6:15 PM JULY 6 3:45 PM JULY 1 & 3 CRJ900 EMB175 (76) PHX 3042 7:15 PM JULY 7 - 31 SFO 5984 4:25 PM MON, TUE, (76) 3460 8:15 PM JULY 1 - 6 WED, FRI *Flight Schedule is general information and subject to change. Schedules are updated monthly and can change daily. Please contact your airline for further information. AGENDA ITEM: H DATE: July 15, 2020

TO: Michael La Pier, Executive Director FROM: Chris Morello, Deputy Director for Strategy and Development DATE: July 1, 2020 SUBJ: Planning, Environmental and Maintenance Monthly Project Report

Attached is the current monthly Project Report for the Planning and Maintenance Departments with the following highlights for June 2020:

• On June 8, 2020 the Federal Aviation Administration (FAA) made a Finding of No Significant Impact (FONSI) associated with the proposed Airfield Safety Enhancement Project for Taxiway “A” Relocation and Associated Demolition and Relocation of General Aviation Facilities, Passenger Terminal, and Other Facilities project. The FONSI is based on results documented in a Final Environmental Assessment (EA), completed in June 2020.

The FAA will use the FONSI when considering applications for federal financial assistance from the Monterey Peninsula Airport District.

The Notice of Availability of the Final EA and FONSI was published on June 12, 2020.

• The Infield Safety Area Improvements Project began on May 3, 2020. Due to reduced aviation traffic caused by COVID-19, construction from May through July has been able to occur during the hours of 9:00 pm with a 10R-28L runway closure and is reopened by 5:30 am.

This additional construction time will allow for a project schedule with a reduced timeframe for completion (current estimate of approximately one month earlier).

• Year 5 RSA Mitigation Report

o Monterey Spineflower Seed Bank Conservation . The monitor has observed two consecutive seasons of Monterey spineflower germination in the replacement seed receiver site. The on-going seed distribution and weed control will facilitate the species continued existence in the action area. In addition to the germination in the seed receiver plots, the monitor has observed six locations in the project disturbance area where volunteer Monterey spineflower has become established. The on-going seed distribution and weed control will facilitate the species continued existence in the action area and is on track to satisfy the final project goals for the species of 25% over of Monterey spineflower in receiver site by the end of 7- year monitoring program.

o Yadon’s Piperia Conservation Measures . MPAD initiated Yadon’s piperia mitigation 2-year maintenance and monitoring program in November 2014 and completed the agreed upon conservation efforts in 2016.

Planning & Environmental Monthly Project Report 1 | P a ge

o Coast Live Oak Woodland Mitigation . During construction of the Project, MPAD’s contractors installed 327 coast live oak trees. The monitoring biologist assessed the health and vigor of the coast live oak plantings in March, June, and September 2019 and January 2020. Based on the monitoring data, 313 of the original coast live oak plantings are surviving. The seven-year final project goal is 80% survival and for the species (+262).

o Maritime Chaparral Mitigation . MPAD is actively reestablishing maritime chaparral in the RSA Project area via the use of maritime chaparral species seed in the erosion control mix and planting maritime chaparral species in the Project area. All the hydroseeded maritime chaparral species have continued to show good germination in the site.

o Special-Status Species Mitigation . Sandmat manzanita: The Year 5 performance goal for the species is 1,025 live plantings. In January 2020, 1,401 sandmat manzanita plantings were surviving and showed at least good vigor. If the plants can maintain a 3–5% mortality rate over the next 2 years, the program will be on-track to meet the Year 7 survival requirements of 986 surviving sandmat manzanita plantings.

. Toro manzanita: The eight Toro manzanita plants that are present in the conservation area satisfy the final project goal of 8 plants for the species.

. Monterey ceanothus: The current number of 42 Monterey ceanothus plantings in the conservation area meets the Year 5 performance goal of 41 plants. In addition, the presence of dwarf ceanothus plantings and seedlings in the conservation area contributes to the diversity in the conservation area.

. Eastwood’s goldenbush: The 24 surviving Eastwood’s goldenbush plantings are showing good vigor in 2020. The number of surviving Eastwood’s goldenbush plantings satisfies the final (Year 7 - 10 remaining) success criteria and the fifth-year annual performance goal (15 alive) for the species.

. San Francisco collinsia and Lewis’ clarkia: Seed receiver sites have shown germination of these species for 4 consecutive years. Therefore, the final success criteria of presence for 2 consecutive years for these species has been satisfied.

Planning & Environmental Monthly Project Report 2 | P a ge

02 Staff Report Monthly Cap Projects report 07.15.2020 Page 1

FUNDING EXPENDITURES STATUS

FY 2020 PROJECT Total Project Spent in Prior % Physical Current AIP # PFC Expenditures to 6/30/2020 Project Name 4 Week Look Ahead # Budget Fiscal Years Complete Status Date ACTIVE FEDERALLY-FUNDED PROJECTS: Grant agreement from the FAA for NEPA review was FAA approved the FONSI on June NEPA/PROPOSED executed on 9/21/16. NTP 8, 2020. The Notice of Availablity 16-21-C-00- SAFETY was issued. The public 1 2016-01 64 $1,783,654 $1,526,383 $352,465 $1,878,848 100% was published on June 12, 2020. MRY ENHANCEMENT comment period was Project grant close out is in PROJECTS extended for an additional process. 24 days beyond the 30-day period and closed on May 1,

On November 26, 2018 the Final CEQA PROPOSED An update was provided on EIR was certified and the Master MASTER PLAN AND January 31, 2018. The District Only at Plan Project was adopted. The 2 2016-01 64 $756,346 $763,216 $0 $763,216 100% SAFETY consultant team and staff this time. Notice of Determination was ENHANCEMENT continue to evaluate and posted with the Monterey County PROJECTS prepare the draft documents. on November 26, 2018.

FAA approved the use of PTAC and staff to conduct a 18-22-C-00- CONDUCT DISPARITY 3 2017-06 65 $54,670 $14,995 $9,368 $24,363 100% Disparity Report. A grant Awaiting FAA Close out. MRY REPORT agreement was executed on September 13, 2017.

Flight check for equipment was completed and Final invoices and construction equipment was retention has been processed. All 18-22-C-00- RUNWAY 10L-28R commissioned on May 21, 4 2018-09 67 $1,785,566 $1,711,735 $146,861 $1,858,596 100% grant closeout documents were MRY OVERLAY AND PAPI 2019. The equipment is submitted to the FAA on February available for use and is 26, 2020 for project completion. currently published on September 15, 2019. SWCA/ECI have conducted the As the USFW approved monthly restoration and 14-09-C-00- RSA MITIGATION 5 2020-02 NA $67,000 $0 $42,795 $42,795 100% Biologist, a contract with maintenance activities for MRY YEAR 5 SWCA was executed. mitigation Year 5. The 5-year project report has been submitted Construction began on May 3, A contract to award to INFIELD SAFETY AREA 2020. Due to the reduced aviation 18-22-C-00- Graniterock was approved 6 2019-01 70 $4,944,345 $6,500 $1,438,873 $1,445,373 40% RECONSTRUCTION activity, the consturciton hours are MRY at the August 2019 Board PHASE 1 currently from 9:00 pm-5:30 am (5 meeting. days/week) The final documents were LAND ACQUISITION 18-22-C-00- submitted for project close 7 2019-10 69 $7,513,895 $160,170 $7,385,790 $7,545,960 100% 2801 Monterey Salinas Awaiting FAA Close out. MRY to the FAA on August 30, Highway 2019.

7/9/2020 02 Staff Report Monthly Cap Projects report 07.15.2020 Page 2

FUNDING EXPENDITURES STATUS

FY 2020 PROJECT Total Project Spent in Prior % Physical Current AIP # PFC Expenditures to 6/30/2020 Project Name 4 Week Look Ahead # Budget Fiscal Years Complete Status Date

LAND ACQUISITION 18-22-C-00- 2801 Monterey Salinas Project was completed in January 8 2020-09 69 $70,000 $69,400 $69,400 100% MRY Highway Obstruction 2020 Removal The Board approved a Tartaglia Engineering is 18-22-C-00- NORTHSIDE GA APRON contract with Tartaglia 9 2020-12 71 $11,000,000 $71,040 $71,040 5% engineering the design MRY CONSTRUCTION Engineering on March 11, components. 2020. The Board approved a Tartaglia Engineering is 18-22-C-00- NORTHEAST VSR contract with Tartaglia 10 2020-13 72 $1,946,065 $27,073 $27,073 5% engineering the design MRY IMPROVEMENTS Engineering on March 11, components. 2020. OUTSIDE FUNDED PROJECTS:

A professional service contract with KHA was Staff and KHA continue to evaluate WATER DISTRIBUTION approved at the 11 2019-03 N/A N/A $2,128,058 $18,150 $7,258 $25,408 5% the feasibility of the distribution SYSTEM January 9, 2019 Board system. meeting to provide an analysis and cost estimate.

DISTRICT FUNDED ONLY PROJECTS

EAST END PROCEDURE LEAN remain on-call to assist if 12 2018-04 N/A N/A $20,000 $0 $724 $724 0% DEVELOPMENT needed.

7/9/2020 02 Staff Report Monthly Cap Projects report 07.15.2020 Page 3

FUNDING EXPENDITURES STATUS

FY 2020 PROJECT Total Project Spent in Prior % Physical Current AIP # PFC Expenditures to 6/30/2020 Project Name 4 Week Look Ahead # Budget Fiscal Years Complete Status Date

The exhaust unit installation ARFF BUILDING 13 2019-11 N/A N/A $21,000 $0 $20,497 $20,497 100% was completed on August Project has been closed out. EXHAUST 28, 2019

The concession contract 4-LOCALS ASSETS 14 2019-09 N/A N/A $130,000 $0 $114,479 $114,479 100% commenced on November 15, PURCHASE 2019. A GMC Acadia SUV and PURCHASE NEW 15 2020-05 N/A N/A $45,000 $0 $39,559 $39,559 100% accessories have been Vehicle is in service. OPERATIONS VEHICLE purchased.

A contract for carpet Carpet installation was completed replacement for the non- INSIDE TERMINAL in January 2020. Upper westside 16 2020-06 N/A N/A $124,300 $0 $120,606 $120,606 100% secure lower public areas REFRESH restroom rehabiltation was was approved at the October completed in January 2020. 2019 Board meeting.

Project was completed on October A contract was approved SHORT TERM LOT 4, 2019 for both the Short Term 17 2020-07 N/A N/A $105,000 $0 $110,580 $110,580 100% with Servicon at the August REHABILITATION (upper lot) and the observation 2019 Board meeting. deck.

Installation was completed in Staff have approved the sign EXTERIOR SIGN January 2020. 18 2020-08 N/A N/A $45,000 $0 $44,770 $44,770 100% production with Monterey REPLACEMENT Signs.

Boring for soil and water samples was completed in February. The SWRCB ANALYSIS 19 2020-10 N/A N/A $185,000 $0 $0 $123,773 99% report was provided to the PROJEC T CCRWQCB on April 22, 2020 and is under review.

Lumenature completed the PG&E RETROFIT 20 2020-11 N/A N/A $152,000 $0 $0 $0 100% installation PROJECT on April 29,2020. No action has been taken on this DEMOLISH BUILDING project, due to current financial 21 2020-14 N/A N/A $250,000 $0 $0 $0 0% 505 concerrn the project has been placed on hold.

7/9/2020

MONTHLY POLICE ACTIVITY REPORT

June 2020

TO: Michael La Pier, Executive Director FROM: Sergeant Roger Guzman DATE: July 2nd, 2020 SUBJECT: Police Activity Report for June ______

The following is a summary of significant activity in the Police Department in June, 2020:

Highlights

Del Rey Oaks Police Officers responded to approx 9 door and gate alarms in June.

Training

Ofc.Dowson provided updated training regarding breach protocols and patrol routes around the airport. Commander Bourquin and Ken Griggs meet weekly regarding MRY/DROPD operations.

Calls for Service

1. 6/02/20 Tues 2133 Sgt Perez/Ocfr Lawson Airport Airfield: Sgt Perez/Ocfr Lawson investigated a possible breach to the fence line. Subject not located at time of occurrence. Case Report 20-111

2. 6/13/20 Sat 1344 Officer Moore Airport Airfield: Ofcr Moore followed up regarding possible breach. Determined to be Del Monte employees exercising during both occurrences. Case report 20-111

3. 6/13/20 Sat 1344 Officer Bough Airport Terminal. Ofcr Bough met the American Airlines Flight at the terminal for an unresponsive passenger. Passenger was medically checked and allowed to fly.

4. 6/27/20 Sat 1355 Officer Anderson Airport Terminal Ofcr Anderson investigated upset customer at Avis Counter regarding a rental car. Officer Anderson de-escalated the situation and aided customer as best as possible. Case Report 20-126

5. 6/28/20 Sun 1030 Officer Baza AIRPORT TERMINAL/ Avis counter. Ofcr Baza responded to a physical fight outside near loading zone. One party was on scene and uncooperative regarding the investigation.

END OF REPORT.

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