VAN NUYS AIRPORT CITIZENS ADVISORY COUNCIL
April 1, 2008
7:00 p.m.

(Public comments are heard after Council discussion of each agenda item.)

CALL TO ORDER – CHAIR BOB JACKSON

APPROVAL OF MINUTES OF March 4, 2008
  
 1)  STAFF REPORTS

 2)  REPORT FROM THE CHAIR

 3)  BOAC AGENDA ITEMS CONCERNING VNY

 4)  PUBLIC COMMENT – NON-AGENDA ITEMS - Discussion

 5)  UNFINISHED BUSINESS

 6)  NEW BUSINESS
        A. FAA General Briefing Chuck Chamberlain – Discussion/Action

 7)  EMERGENCY ITEMS SINCE POSTING OF AGENDA – Discussion

 8)  ADVISORY COUNCIL MEMBERS’ COMMENTS - NON-AGENDA ITEMS

ADJOURNMENT

NEXT MEETING: April 1, 2008 - Agenda:  7:00 p.m.
MEETING WILL BE LOCATED AT
VAN NUYS FLYAWAY
2ND FLOOR CONFERENCE ROOM
7610 Woodley Ave, Van Nuys, CA 91406

Sign language interpreters, assistive listening devices or other auxiliary aids and/or services may be provided upon request. To ensure availability, you are advised to make your request at least 72 hours prior to the meeting you wish to attend. For additional information, please contact Van Nuys Airport Public and Community Relations (818) 909-3529.

MINUTES
March 4, 2008

A meeting of the Van Nuys Airport Citizens Advisory Council was called to order at 7:10 p.m. by Chair Bob Jackson.  Members present: Bob Jackson, Bruce Ackerman, Ron Merkin, Gerald Silver, Flip Smith, Harold Sullivan, James Wildman, Wayne Williams, Rick Flam, Dave Sotero and Harold Lee.  

Members Absent: Don Schultz, Laurence Rabe, Audrey Madrigal and Ken Miller.

The Council vacancies as of February 5, 2008 are as follows: one appointment from the Office of Councilmember Zine, and two appointments from the Office of Councilmember Alarcon.

The minutes from February 5, 2008 Council meeting were approved by ten votes with the exception of Mr. Gerald Silver stating that at the February 5th meeting he asked that the each agenda include a reference to Part 161 study.

1) STAFF REPORTS:

Ms.Sanchez referred to the Young Achievers Program partnership VNY has with LA Unified School District and the Rotary club of Van Nuys. It’s recognizing four of the top students from each of the 27 middle schools in the Valley. She stated that we are going to recognize the students at a reception at the Airtel Hotel. The Van Nuys Rotary Club will award the top four students of all schools with a $100.00 savings bond. 

Ms. Sanchez also stated that we are going to have an Aviation Career day April 25, it’s a day when all the high schools in the Valley come together and learn about different careers in aviation. She mentioned that Friday, February 29th we had an event at the Airtel Hotel where career counselors from all the schools in the Valley, and the surrounding areas to learn about careers in the Aviation Field.

Mr. Gerald Silver asked about the LAWA budget for making flyers for such school events to which Ms. Sanchez affirmed that the VNY budget is 35 thousand for all printing through the year.

Mr. Ron Merkin asked if the Van Nuys Rotary Club was the only one involved with this program thus far to which Ms. Sanchez said yes.

2) REPORT FROM THE CHAIR

The Chair stated that we will have our future CAC Meetings at the Van Nuys FlyAway. Ms. Birk stated the FlyAway has 75 parking spots and vending machines. Mr. Jackson added the security and Airport Police are always on the premises and the conference room can hold 45 people.

 3) BOAC AGENDA ITEMS CONCERNING VNY
     A. Update of Federal Aviation Administration review of Van Nuys Airport FAR Part 150         Study – Discussion/Action Selena Birk – VNY Airport Manager

Ms. Birk had an update on the Part 150 study. She stated that Roger Johnson recently spoke with Brian Armstrong who works at the local airport district office in El Segundo with the FAA.  The FAA has committed to move the Part 150 Study forward. The FAA has agreed to complete the review of the noise exposure maps by March 16th, publish their acceptance in the federal registrar no later than March 30th, complete the preliminary and public review of the NCP by June 30th and initiate the 180 day public response process.  They will complete the NCP approval on or before October 28th, and publish the acceptance of the Part 150 in the federal registrar no later than November 11th.

Mr. Silver asked if the new aggressive schedule is because the CAC sent a letter to the FAA and Ms. Birk replied that this commitment was made before a letter was sent out.

  B. Approval to Issue a Request for Proposals (RFP) for the Development and Lease of 7335 – 7337 Valjean Avenue – Discussion/Action Monica Milos – VNY Property Manager

Ms. Milos described an issue that staff will be taking to the BOAC. Staff wants to issue a Request for Proposals (RFP) and negotiate with the most responsive proposer for the development and lease of approximately 5.833 acres of aviation land located on the Eastern Edge of the Van Nuys Airport at 7335-7337 Valjean Avenue. The development of this site at this time is consistent with the Van Nuys Airport Master Plan.  Under the terms of the Request for Proposal (RFP) and draft lease, the selected proposer would design, finance, construct, market, and operate a high quality, self-sufficient facility for the aircraft community. The term of the lease would be maximum of 30 years, largely depending upon the investment by the developer.  Ms. Milos stated that the authorized uses must be consistent with its location within the Aviation Area per the Master Plan, LAWA’s leasing policy and VNY Executive Directives.  Uses are limited to activities that support aircraft operations including hangars, aircraft tie down parking, aircraft ramp and maneuvering area, aircraft maintenance, flight training, military aviation functions, air tour, air taxi, and other aircraft uses that are classified as primary aviation uses. Proposed improvements shall not include any of which are to be used for the storage, transport, or sale of fuel of any type.  Ms.Milos confirmed the term of the lease should be for the shortest, reasonable duration taking into account the operational needs and capital investment in leasehold improvements of the Lessee and the ability of LAWA to manage capacity and long-term airport development.  Proposers to offer a minimum capital investment, commensurate with scope and quality of development, of not less than $ 122,500 per year of lease term which translates to $ 22,000 per acre, per year.  Proposers are encouraged to evaluate the feasibility, and if feasible, propose without cost to LAWA or the Federal Government, to design and construct a General Aviation Facility for the sole use of U.S. Customs and Border Protection working at the Airport. The GAF may be incorporated into the main terminal building or housed in a stand-alone structure located on the Demised Premises. It is anticipated that a fee will be charged to the users of this facility that will pay for the amortized building costs, and land use rental costs associated with this facility.  The ramp area that is associated with this facility will only be needed while the aircraft is being processed. The proposers are required to meet or exceed environmental sustainability principles through utilization of various strategies. The development should meet LEED Certification on the Silver level.  The Lessee will be subject to the Van Nuys Noise Abatement and Curfew Regulation. Development design and Operations Plan, to be approved by LAWA, must be noise sensitive to hotel directly south of the site.  A lease may be awarded based on the type of aviation-related business, products and/or services offered, capital investment, development plan, financial offer, business plan, qualifications, experience, references, proposer’s financial strength, and other relevant criteria.

Mr. Wildman asked why the U.S. Customs and the Border of Protection are in the Proposal. Ms. Birk stated that in the beginning of August 2006 Homeland Security changed the way they processed international flights at General Aviation facilities, including Burbank Airport, Van Nuys Airport and Long Beach Airport. They have cleared medical flights and emergencies at those airports, however they no longer clear international flights at those airports. Those flights are required to go to international facilities such as LAX, JFK, San Francisco, etc. They are requiring the airports to have a dedicated facility for their staff, for interviews, for clearing of baggage so this was an opportunity to consider a dedicated facility for Customs.

Mr. Ron Merkin asked if the TSA agents will be on site or as needed, Ms. Birk answered that TSA, Customs and the Border Patrol are separate agencies. Mr. Ron Merkin stated there aren’t permanent Custom Agents stationed on site to which Ms. Birk agreed. She stated that the airport would likely have to pay for the staff then be reimbursed for the user fee.

Mr. Bruce Ackerman asked what uses would be encouraged at the Valjean site and Ms. Milos stated that the land used on this site is an aviation area and all types of aircraft can be there, however the leasing policy states that an FBO must have at lease 7 acres of aviation land and other special requirements, this land does not meet FBO minimum requirements.

The Chair inquired about the 2.5 acres next to the Airtel Hotel. Ms. Birk answered that the entire parcel is 5.833 acres.

Mr. Jim Wildman said that Customs and the Border Protection sound like it was built to order for a tenant and he asked is there any consideration for favoring whomever gets this land.
Ms. Milos stated there will be specs in the proposal and the direct contact with the Border Patrol as to what their specifications are and it will be part of the proposal and the criteria in the selection process.

Mr. Wayne Williams asked what type of business will go in there and invest in the property. Ms. Milos answered it could be used for tie down for propeller aircraft, for an aviation hangar, very light jets. There are quite a few aviation uses that would be feasible on the land.

Mr. Gerald Silver inquired about the mistake in the proposal hand out stating that the stage 2 aircraft will not be allowed on the land to which Ms. Birk replied that stage 2 aircraft will be allowed within the boundaries of the Non-Addition Rule.

Mr. Gerald Silver stated that this is a very significant expansion of the airport, it will bring more jets, more helicopters and more noise. He said there should be more to this proposal than just the CAC Members voting on this motion. Mr. Silver declared his concern, he believes the residents and the media will be concerned.

Mr. Ron Merkin asked when does the RFP go to the Board, and Ms. Birk answered that it will go to the Board in April or early May, it usually takes about 2 to 3 weeks to release the RFP after  the Board to approves it.
Ms. Milos stated after the issue of the RFP there is about 90 days till the proposal is due back to LAWA.

Mr. Flip Smith inquired about the cost of living and Ms. Birk answered that every five years they do an appraisal and re-evaluate the lease. Mr. Smith asked about the annual increases, Ms. Milos stated that every year there is a 2% annual adjustment increase. The increase is between 2 and 7%, it won’t be less then 2 and it won’t be more than 7%, if GPI happens to be over 7% it can be carried over to the next year. The projected term is up to 30 years.

Mr. Gerald Silver said we need to vote on whether to continue or to cut off the debate.

The roll call vote was as follows:

Mr. Silver-No; Mr. Sotero–No; Mr. Merkin–No; Mr. Sullivan–No; Mr.Williams–No; Mr. Ackerman–Yes; Mr. Smith-Yes; Mr. Lee-Yes; Mr. Flam-No; Mr. Wildman-Yes
The total was 4 in favor, and 6 against cutting of the debate. The motion passed.

Mr. Rick Flam stated that this seems like a significant expansion of operations which includes helicopters. He said that the lease does not produce a significant amount of money compared to the impact on our community. He stated that the RFP has to be carefully looked at due to the noise of helicopters and other aircraft.

Mr. Ackerman asked if we were specifically voting on a lease and Ms. Milos replied that we are not specifically voting on a lease, we are asking for a recommendation that the Board of Airport Commissioners recommend that an RFP be released to solicit the most responsive proposers based on certain criteria. The criteria is based on the Master Plan and the designation of that area, what is allowed, and what can go into the evaluation process. The benefits of the noise mitigation, those could possibly be the evaluation criteria.

Mr. Harold Sullivan asked if there are a number of undeveloped parcels on the airport to which Ms. Birk replied that there are only two, one is former Air National Guard Site, and this 5 acre parcel are the only two currently undeveloped areas.

Mr. Gerald Silver stated that there are plenty of other facilities that can occupy that land that will enhance the facility, such as meeting halls, dining areas, sleeping or a residential facility. He thinks that we need something there that is more compatible with the community. He wants to direct LAWA to re-evaluate and recast this motion.

Ms. Milos stated that the language in the proposal comes directly from the master plan, under the Aviation permitted use. To make any alterations the Master Plan would need to be amended.

Mr. Gerald Silver proposed a motion stating that we recommend LAWA to recast the RFP to recommend other uses and a greater propeller aviation usage that would be more compatible with the community.

The roll call vote was as follows:

Mr. Silver-Yes; Mr. Sotero–Yes; Mr. Merkin–No; Mr. Sullivan– abstained; Mr. Williams–Yes; Mr. Ackerman–No; Mr. Smith-No; Mr. Lee-No; Mr. Flam-Yes; Mr. Wildman-Yes. The total was 5 in favor, 4 against, and 1 abstention.  The motion passed.

C. – Lease Assignment of (Century Aero Club, LLC) Lease No. VNA-8277– Discussion/Action Ron Domash – VNY Property Manager
   
Mr. Domash stated that this item proposes that LAWA Consent to Assignment of Lease VNA-8277 from Century Aero Club, LLC to Castle and Cooke Aviation Services for property located at 7552 and 7614 Hayvenhurst Avenue at Van Nuys Airport.  The site consists of 1.9 acres of aviation land with a City-owned 14,326 square foot hangar and 2,420 square feet of office space. Current uses of the demised premises by Century Aero Club, LLC are maintenance, flight instruction, rental, sale and storage of piston aircraft. Century Aero Club LLC recently sold/assigned their leasehold interest to Castle and Cooke Aviation Services.
They currently occupy two leaseholds totaling a combined 4.0001 acres of aviation land and 72,139 square feet of hangar, vehicle paving/parking and aircraft paving/ramp. Under the terms of current lease, Century may assign the lease to another entity subsequent to approval by the BOAC. All parties involved have submitted all appropriate documentation for this transaction. The terms and provisions of the ground lease shall remain the same and unchanged.

Mr. Gerald Silver asked Mr. Domash to explain what usage Aero Club does with the site and what is the intended use for the future. Mr. Domash stated that under the terms of this lease the usage will remain the same.

The council unanimously voted for this motion.

D. – Rental Rate Adjustment for Syncro Aviation, Inc. Lease No. VNA-8242– Discussion/Action Ron Domash – VNY Property Manager

Mr. Domash stated that this item proposes an increase to improvement rental rates for Syncro Aviation Inc.  under Lease No. VNA-8242. Syncro Aviation, Inc. an aircraft interior company has been an aviation tenant at Van Nuys Airport since 1990. Syncro’s existing lease commenced on April 18th, 2007.  As part of the settlement agreement between Syncro and LAWA, the Lease provides for an adjustment to improvement rental rates at the end of an initial 30-month period. Land Rental Rates are not subject to adjustment. LAWA Staff recommends an increase to improvement rental rates only from $2.00 per square foot per year to $3.32 effective October 18, 2007.  The proposed rate represents a negotiated rate predicated upon consideration of the appraised fair market value. In addition, the leased building area will be adjusted from 137,795 to 150,559 square feet as shown by the LAWA appraisal and confirmed by Syncro. The demised premises consists of approx. 7.5941 acres of aviation land including a total of 150,559 square feet of Hangar/office/shop, Building 905 and Building 925 (Storage/Garage) located at 7701 Woodley Avenue on the Eastside of Van Nuys Airport. On January 10th, 2005 the Board of Airport Commissioners approved a settlement agreement with Syncro Aviation, Inc under Board No. AO-4936. The terms of the settlement agreement included dismissal of legal complaints by and between LAWA and Syncro and an agreement to enter into a 30-month lease for specified demised premises at VNY.

Mr. Pierre Moroni the new  president of Syncro Aviation Inc. stated that the VNY Airport isn’t all about cleaning aircraft, noise or maintenance, it’s also about the work that Syncro does inside the aircraft. He stated that Syncro was the only place in California that does the interior work inside the aircraft as extensive as they do. Mr. Jim Wildman asked how long does a typical job take, and Mr. Moroni stated that it varies on the type of work, it could be one to three months, large aircraft can take up to 6 months. Mr. Moroni stated that Syncro does highly customized work; they do work for celebrities, CEO’s and clientele all around the world.

Mr. Gerald Silver referred to the cost of such job and Mr. Meroni replied that it could vary from 500 thousand up to 3 million. Mr. Silver stated that Syncro Co. is the exact kind of operation that is needed here. He said that it’s a definite benefit to the community, and it does not create noise.

This motion was approved by a unanimous vote.

E.– HMMH contract amendment to adjust for ongoing work on the study of the phase out of noisier jets and the FAR 161 study – Discussion/Action  Selena Birk – VNY Airport Manager

Ms. Birk stated that a letter went out last week letting everyone know that the Board was taking possible action, and the item was approved. The original contract came to CAC four years ago with HMMH to conduct the 161 Study, since that was done several items were added to the contract including the Board asking them to look at the phase out of stage 2 aircraft as part of the grandfather action that was taken before 1990. They have taken on that work and therefore their contract needed to be amended. Also, there was an outreach done last November, they have responded to actions that were brought up as part of that outreach. The Air Quality Control Board wanted to know what the impacts were to the potential diversion airports. Those are some samples that have been added to their scope of work and therefore money was added, and terms were added to their contract.  

Mr. Wildman asked why they ask that all the documents be translated to Spanish, Ms. Birk answered that when we do outreach it includes the entire community and Spanish is a major language spoken in the area.

Mr. Williams inquired about the completion date for Stage 2 and Part 161 Study. Ms. Birk stated that they expect to be done with the environmental study and the outreach required in the stage 2 portion and they expect to be back to the Board in the fourth quarter of this year. HMMH is going forward with the scenario of the implementation date on January 1, 2009. Assuming there are no challenges by the FAA that would be their first day of implementation.
On the Part 161 Study they expect it to be ready to submit to the Board in the 3rd or 4th quarter of 2009.

4) PUBLIC COMMENT – NON-AGENDA ITEMS – Discussion

Mr. Robert Rodine stated the Valjean RFP is not airport expansion, common use of the word “expansion” means physical growth, the airport will still be 730 acres, it will not expand an inch. With respect to allowable increases in the sense of the airport many of the CAC Members participated in the Master Plan process. He stated that it is his recollection that Mr. Silver was a part of the master plan process. The master plan process designated this particular parcel as unrestricted aviation use. It could be used for all kind of aircraft. It is the bidder’s decision to decide whether this land is feasible for use in any particular mode and it is the business of the bidder to propose the use. He affirmed he doesn’t think it’s the right time for people to be complaining on how this land will be used. That decision was made when Alternative J was accepted by the community. LAWA wants to release land for use consistent within the determination of the master plan and the determination of the FAA that this is unrestricted aviation land.

Mr. Ron Merkin thanked Ms. Birk for the tour of the airport and he stated that he is looking forward to Chuck’s return to the CAC.

5) UNFINISHED BUSINESS
None

6)  NEW BUSINESS
None

7) EMERGENCY ITEMS SINCE POSTING OF AGENDA – Discussion
None

8) ADVISORY COUNCIL MEMBERS’ COMMENTS - NON-AGENDA ITEMS

Mr. Flip Smith commented that the graffiti in the Sherman Way tunnel is terrible. Ms. Lynda Levitan stated that it takes between 3 to 9 thousand dollars to clean up that tunnel. She stated that the tunnel has just been cleaned, however the tagger crew has already began spray painting on it. They were thinking about putting surveillance cameras in but the taggers disguise themselves so they cannot be identified. Ms. Levitan said that with LAPD’s help, the Mayor’s help and the street services help they will get it done.

Mr. Silver asked for the future agendas to show the progress on the Air Park and the Master Plan implementation.

9) ADJOURNMENT:

8:47 p.m.