REGULAR MEETING OF THE MONTEREY PENINSULA AIRPORT DISTRICT BOARD OF DIRECTORS June 14, 2017 - 10:00 AM Board Room, 2nd Floor of the Airport Terminal Building 200 Fred Kane Drive, Suite 200 Monterey Regional Airport (Unless you are a public safety official, please turn off your cell phone or place it on vibrate mode during the meeting. Thank you for your compliance.) 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 (10:15AM - 10:30AM Estimated) (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 Budget and Finance Committee of May 4, 2017 Approve 2. Minutes of the Committee Meeting of the Airport Property Development and Leases Committee of May 5, 2017 Approve 3. Minutes of the Regular Meeting of May 10, 2017 F. DEFERRED CONSENT AGENDA - ACTION ITEMS 1 of 3 G. REGULAR AGENDA – ACTION ITEMS (10:30AM - 11:30AM Estimated) Adopt 1. Resolution No. 1687, A Resolution Authorizing and Approving the Rates and Charges at the Monterey Regional Airport for Fiscal Year 2018 Adopt 2. Resolution No. 1685, A Resolution Authorizing and Approving the Operating Budget and Capital Budget of the Monterey Peninsula Airport District for Fiscal Year 2018 Adopt 3. Resolution No. 1686, A Resolution Authorizing and Approving the Fiscal Year 2018 Salary Schedule Listing Salary Ranges and Pay Steps for the Monterey Peninsula Airport District Adopt 4. Resolution No. 1688, A Resolution Authorizing the Executive Director to enter into a Four-Year Contract with GateKeeper Systems, Inc. for the Replacement of the Manual AVI Taxi Management System with Beacon Technology and Continuing Software Management Support Services Adopt 5. Resolution No. 1689, A Resolution Amending the District-Only Funded Capital Acquisitions Budget of the Monterey Peninsula Airport District for Fiscal Year 2017 and Authorizing the purchase of the DB500 Mobile Paint Stripping and Cleaning System Approve 6. Fuel Farm Auxiliary Fire Suppression System Removal H. ACCEPTANCE OF DEPARTMENT REPORTS (11:30AM - 12:00PM Estimated) (The board receives department reports which do not require any action by the board) I. BOARD COMMITTEE REPORTS (12:00PM - 12:15PM Estimated) (Report on meetings attended by Board Members at Monterey Peninsula Airport District’s expense - AB1234) a. Standing Committees: i. Local Jurisdiction Liaison Directors Miller & Nelson ii. Budget and Finance Directors Leffel & Sabo iii. Air Service, Marketing, Community Relations Directors Miller & Nelson iv. Airport Property Development & Leases Directors Leffel & Nelson b. Ad-Hoc Committees: i. Community Affairs Directors Leffel & Miller ii. Noise Mitigation Directors Nelson & Sabo c. Liaison/Representatives: i. Local Agency Formation Commission Director Leffel Alt: Searle ii. Regional Taxi Authority Director Leffel Alt: La Pier iii. Transportation Agency for Monterey County Director Sabo Alt: Nelson iv. Water Management District (Policy Advisory) Director Searle Alt: Leffel v. Special Districts Association Liaison Director Miller Alt: Leffel 2 of 3 J. CLOSED SESSION 1. LABOR NEGOTIATIONS (Government Code section 54957.6) the Board will meet with the Executive Director and District Counsel to discuss labor negotiations for the following represented groups: All MPAD Employee Bargaining Units.” 2. REAL PROPERTY NEGOTIATIONS (Government Code Section 54956.8) the Board will meet with Real Property Negotiators, Executive Director and District Counsel, regarding the properties identified as 2801 Monterey-Salinas Highway, Monterey, CA 93940. 3. ANTICIPATED LITIGATION (Government Code section 54956.9(d)(2)) the Board will meet with the Executive Director and District Counsel regarding anticipated litigation – one case. K. RECONVENE TO OPEN SESSION L. PENDING REQUESTS FOR FUTURE AGENDA ITEMS M. 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.) N. ADJOURNMENT AGENDA DEADLINE 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. A final Agenda will be posted outside the District Offices in the Terminal Building at the Monterey Regional Airport 72 hours prior to the 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. In order 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 BUDGET & FINANCE COMMITTEE MEETING OF THE MONTEREY PENINSULA AIRPORT DISTRICT BOARD OF DIRECTORS May 4, 2017 - 10:00 AM - Board Room A. CALL TO ORDER Director Sabo called to order the Special Meeting of the Board of Directors at 10:30 AM. Director Leffel, Director Sabo, Executive Director La Pier, and Deputy Executive Director of Finance and Administration Bergholz were present. Presented the following documents to the Budget and Finance committee members: March 2017 Financial Statements March 2017 Financial Statement Variance Analysis March 31, 2017 Accounts Receivable Aged Invoice Report B. COMMUNICATIONS/ANNOUNCEMENTS/INFORMATIONAL ITEMS Discussion about Fiscal Year 2018 budget process and status. Fiscal Year 2018 revenue, employee compensation projections and department expense budgets are complete. Draft operating and capital budgets have been prepared and will be presented to the Finance Committee on May 12 at 2:00 PM. Operations, Police and Maintenance department managers will present their department plans for FY 18. FY 17 Capital Budget amendment will be requested at the May 10 Board meeting. Two emergency projects for roof repair to building 514 and road repair to Fred Kane Drive are needed and will fund by delaying the Automated Taxi Starter project until FY 18. Finance Committee Board Members shared information Caltrust as a possible short investment option for excess PFC funds currently on deposit at Rabobank. C. PUBLIC COMMENTS None. D. REGULAR AGENDA – ACTION ITEMS Review 1. FYTD 2017 Financial Statements Reviewed overall financial performance of the airport as of March 31, 2017. March 2017 combined airport operating revenues are $43.2K (6.3%) higher than plan and 219.2K (3%) higher than plan FYTD. The higher revenues are partially attributed to a new Los Angeles flight added by United, a return of strong fuel sales and an exceptional month for parking services. March operating expenses ($642.5K) are lower than plan by $19.1K (3%). March FYTD operating expenses ($5.683M) are $453.4K (8.0%) lower than plan. March operating income is $91.8K which is $62.3K or 211% higher 1 of 4 than plan ($20.8K). FYTD operating income is $1.008M which is $672.2K or 200% higher than plan ($335.9K). Review 2. March 2017 Financial Statement Variance Analysis Reviewed Revenues: CA Landing Fee GA Landing Fee Taxi Operator Permits and Trip fess TNC Permits and Trip Fees Rental Car Concessions Parking Concession Fuel Flowage Fees* * Combined Monterey Jet Center and Del Monte Aviation exceeded budget by selling an additional 28,500 gallons of Jet A and LL 100 fuel Facility / Space Rents Self-Storage Concession ** ** March MHSS concession payments include short term prepayments. In April, the Airport should expect lower concession. MHSS has also reached 99% occupancy. Expenses: Finance and Administration CalPERS Health Insurance Umbrella Liability Insurance Expense Business Travel & Entertainment Telephone+ + In March AT&T Centrix discount program was cancelled resulting in a 200% increase in telephone line services. We have applied for a discount and are waiting for AT&T to provide the new contract. District Legal Counsel++ ++ Legal fees paid to Cota and Cole LLP for tenant evictions and MOU negotiations. Marketing Public