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					Airport Advisory Board
August 11, 2010
Page 1 of 10

                                            Airport Advisory Board Minutes
                                                    August 11, 2010
                                              City Commission Chambers
                                             501 W. Meadow St., 3rd Floor
                                                   Leesburg, Florida


Attendance:                   Jim Brown
                              Allen Dunlap
                              Frank Kutch
                              Sherry Stewart

Call to Order

Chairman Kutch called the meeting to order at 4:00pm.

Approval of Minutes from July 14, 2010

Chairman Kutch asked if anyone had questions on the minutes. Allen Dunlap noted the minutes
contain a statement from Deputy City Manager Drymon that no Airport Advisory Board members
attended the City Commission meeting to hear the Embry-Riddle presentation. He advised that
he did attend that meeting. There was no further discussion. Sherry Stewart made a motion to
approve the minutes as submitted. Jim Brown seconded the motion and it was approved
unanimously.

Ground Lease Agreement with Phillips Sales, Inc. d/b/a Phillips Toyota

Airport Manager Weller advised this lease is for the vacant lot on US 441. This same lot was
leased to Phillips a few years ago. This lease is a mirror image of the previous lease. The site
will be used to store cars while a new showroom is built. The term is for one year with a monthly
rate of $1,353.52. The lease includes terms that require Phillips to restore any damage to the lot
such as reseeding the grass.

Sherry Stewart asked for the anticipated completion date of the showroom. Airport Manager
Weller said they believe it will take nine to twelve months.

Chairman Kutch asked if they are required to have insurance. Airport Manager Weller said the
City has been named as a third party on their insurance.

Chairman Kutch asked if the City Attorney has reviewed the agreement. Airport Manager Weller
said Fred Morrison has approved the lease.

Sherry Stewart made a motion to adopt the lease agreement between the city of Leesburg and
Phillips Sales. Allen Dunlap seconded the motion and it was approved unanimously.




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Consent to Sublease among the City of Leesburg, Adam Callow and Exum Aviation for
Space in the Hangar at 32746 Echo Drive

Airport Manager Weller said Adam Callow purchased Tropical Helicopter from Ronn Walker
several years ago. Health issues have caused him to discontinue business operations and he is
currently residing in Colorado. The building has basically been vacant for several months.

Keith Exum is currently operating a maintenance shop from the condo hangars. The condo
hangar location requires customers to use Gate 1 for access and provides him no visibility.

Adam Callow has agreed to sublease the former Tropical location to Exum Aviation. The lease
includes all areas except for the office space. The maintenance shop will be moved from the
condo hangars to this location which provides more visibility and easier access.

Chairman Kutch asked Keith Exum if all terms of the agreement are acceptable to him. Keith
Exum advised his is fine with the agreement. Chairman Kutch noted there may be a jump in
overhead as a result of this move. Keith Exum said he is not concerned about that issue. He
believes he will get more business at the new location and he will also be able to work on several
planes at one time.

Sherry Steward noted that the original lease ends in 2013. Airport Manager Weller said the site
will revert to the City at that time.

Jim Brown made a motion to approve the lease as specified.        Sherry Stewart seconded the
motion and it was approved unanimously.

Policy specifying minimum standards for aviation fuel storage and dispensing facilities –
Continued Discussion and recommendation

Chairman Kutch said that this item was tabled at the July Airport Advisory Board meeting. He
said that at the July meeting he had requested for the two main parties involved – The Villages
and SunAir Aviation – to hold a meeting to try and resolve the fuel issue. Brian Sapp of SunAir
Aviation said he spoke with Mr. Brooks of The Villages in the elevator after the Board meeting,
but that was the only discussion held. Chairman Kutch noted his disappointment that the two
sides have been unable to reach an agreement.

Deputy City Manager Drymon said he can appreciate Chairman Kutch‘s desire to see these two
businesses come to a resolution. However, the intent of this policy is not only to solve this
problem. This issue was a catalyst, but the main problem is that there is no written policy on
fueling. The reason for establishing a written policy is to serve the future of the airport. Even if
the two parties in question reach an agreement, a fueling policy must still be established.

DCM Drymon continued that any policy that is approved will most likely undergo some revisions
over time. This would be a starting point for this matter to be addressed. He said that
Commissioner Christian stated at a City Commission meeting that unwritten policy is no policy
because it is always open to interpretation. He noted that after the agenda packets were mailed,
the airport engineering consultants sent an e-mail to Airport Manager Weller with suggested
language for item #4 regarding distance from the center line of a taxiway. (Attachment A) A

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copy is being provided to each Board member and The Villages for consideration. This is related
to the possibility of the airport receiving a Class III designation. There is sufficient clearance on
runway 13/31 now. Runway 3/21 and taxiway B would most likely require some modification to
meet the Class III requirements.

Chairman Kutch said that by issuing a building permit to The Villages for the slab a precedent
was set. What is done for one business must be done for the next. Once a permit is issued it
gives them the hope that the project will be able to be completed. He would like for this Board to
be able to hold people accountable rather than simply acting in an advisory capacity.

Former City Commissioner Bob Lovell provided his insight into the growth of Leesburg
International Airport. He said he first flew into the airport in 1953. Since that time he has seen it
grow from an airfield with a 1942 beacon and tires around the lights into what it is today. One of
his goals when he was first elected to office was to improve the airport. There have been a
number of people in charge of this facility over the years. There needs to be continuity in
management. The Villages has been a great asset to the airport and he does not want to
jeopardize that relationship. But this is the City’s airport and the decisions about the airport need
to be made by the City. He said the fueling issue is covered by lease contracts. He agrees there
is a need for a policy to establish continuity. There is also a need to protect the City’s interests.
A conclusion needs to be reached on this matter. A lot has changed at airports all over in the
past few years. Along with the FAA, the Transportation Safety Administration (TSA) and the
Department of Homeland Security now have a say in how airports are operated. The time to
have fuel tanks all across the airport is over. The FAA must be consulted on this issue. Over the
years he has invested a lot of time to help this airport move forward. He hopes it continues to
progress. It is up to this Board to ensure it does.

Derek Schroth, attorney for The Villages, said that The Villages did not try to circumvent the
process in an effort to have the fuel tank approved. The site plan application was submitted to
the City in January and all City procedures were followed. The City approved the plan, issued
the building permit and the fuel tank is in place. He agrees that the process to develop a
proposal for any type of fuel regulation should be slow. He said that consideration should be
given to regulating fuel trucks as well. He is willing to sit down with the City to address the many
concerns The Villages still has with the proposed fuel policy. He believes it is too early to
consider taking the policy to the City Commission. The Villages should have received the
proposed language in the e-mail from the airport consultant before today’s meeting. He stated
that The Villages strongly objects to the language proposed in the e-mail. The approved location
for their tank would be in violation of this language. He asked that staff be directed to work with
all parties, including other airport tenants, on the policy.

Attorney Schroth noted that the amendment to The Villages leases is also on this agenda. The
Villages does not believe the leases need to be amended. They believe the lease as written
prohibits self-fueling which is a violation of FAA rules. Section 3 of the existing lease dated
October 12, 1998, says they cannot have fuel in tanks other than the aircraft itself. It does not
specifically say they cannot self-fuel, nor does it say they can self-fuel. That is one of the
reasons why the City Commission directed that a lease amendment be done. Attorney Schroth
reiterated The Villages’ position that the lease does not permit them to self fuel and he noted that
every tenant has the right to self-fuel.


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Allen Dunlap said Attorney Schroth has stated that The Villages does not believe their leases
need to be amended. Attorney Schroth has also said the leases do not include the right to self-
fuel. He finds those two statements perplexing.

Attorney Schroth said he understands why this could seem inconsistent. He said Section 12 of
the lease agreements say that no improvements shall be made to the premises without written
consent from the City prior to commencement of the work. The plans for the tank were approved
by the City as required under Section 12. The Villages position is that approval by the City of
their plan provides them with the ability to self-fuel. He also said that three City commissioners
directed staff to amend the lease to formalize the approval of the plans allowing the fuel tank.

Chairman Kutch said there has never been a problem with allowing tenants to self-fuel other than
some safety concerns. Airport Manager Weller said there is a Standard Operating Procedure
that details self-fueling procedures. Attorney Schroth said The Villages proposal is safer than
using fuel trucks. Chairman Kutch said this is setting a precedent. If everyone can have fuel
storage another safety issue is created. The FAA does not want a lot of fuel tanks driving around
the airport.

Attorney Schroth asked the Board to deny the policy today and direct staff to work to develop a
better proposal.

DCM Drymon said it is clear to the City that The Villages leases must be amended by approval of
the City Commission. Attorney Schroth said the City basically subverted the need to amend the
leases because a permit was issued for a site plan and slab. He said that permit was issued with
a letter from the Community Development director stating that the lease needed to be amended
and The Villages should not proceed with any work until that was done. He is amazed to hear
Attorney Schroth say the tank is in place because the permit for the tank installation and
dispensing equipment has not been issued yet.

DCM Drymon said the issues are being mixed together in this discussion. The focus needs to
remain on the need for a fueling policy. Although the lease amendment is related to the policy it
is a separate issue. The lease amendment cannot be acted on until the policy is in place. We
need to concentrate on the fuel policy and what is in the best interest of the airport.

DCM Drymon said the airport does not prohibit self fueling. Current lease agreements do not
prohibit self-fueling. There is nothing that the City can write into a lease or an ordinance that can
deny self-fueling. The issue that needs to be settled is permanently installed fuel tanks. The
proposed policy takes into account all tenants. Every effort was made to strike a balance with
existing tenant needs and future airport development. The policy needs to have some flexibility
to allow the airport to move to a Class III designation. He said he will glad to address any
specific questions the Board has regarding the proposed policy.

Airport Manager Weller said he has been involved with the airport since the early 1990’s. He has
worked very hard to get the airport where it is today. He believes the fuel policy that the Board is
considering should be adopted with the revision to #4 as proposed by the airport consultants. He
said the current minimum standards do not include rules for fuel tanks. No one knows where the
airport will be in fifteen years. There is a lot of room for expansion. The policy needs to be
adopted to protect the airport in the future.

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Chairman Kutch asked if a system can be worked out to allow people to buy fuel and store it in
the City’s facilities. Volume buying allows someone to get a cheaper rate and makes economic
sense. The fuel could then be metered out with a fuel-flowage fee. This would be a solution in
between self-fueling and owning an individual tank. Chairman Kutch said a provision for this type
of system should be included in this policy.

Airport Manager Weller said competition is always good. If someone wants to open an FBO on
the airport he has no problem with that. He noted that fuel sales at the airport are down right
now. He is not against The Villages and their operations. He is against the proliferation of fuel
tanks on the airport.

Chairman Kutch said he is not in favor of a second FBO trying to open up in this economy. He is
in favor of the fuel policy including a provision allowing users to buy their own fuel and store it in
a city tank to be metered out as needed. The City would receive a fuel flowage fee as the fuel is
dispensed. Brian Sapp said that he currently has a similar agreement with The Villages. They
purchase fuel directly from Chevron and store it in his tanks. He charges The Villages an “into
plane fee” to cover his cost for transportation and fueling the planes.

Lester Coggins, Manager of Fight Operations for The Villages, said there are problems with the
current arrangement with SunAir Aviation. The Villages buys a transport load of 8,000 gallons of
fuel and SunAir Aviation stores it for them in their 12,000 gallon tank. SunAir Aviation controls
the inventory and the vendor the fuel must be purchased from. There is limited capacity for
storage and no option on fuel vendor. This is not a true public fuel farm arrangement.

Chairman Kutch asked if these problems could be resolved if the City installed another fuel tank
and opened a true fuel farm. Lester Coggins said it might work. He noted The Villages has
already expended a lot of time and money on the current tank project. To change that direction
now brings other issues to bear. There must be a new arrangement made with SunAir Aviation
for the current tank. The Villages will have to buy a truck to transport fuel. Parking a fuel truck on
their premises will violate their lease agreements. The City Commission voted to have staff
amend the leases to allow a fuel tank, not fuel trucks. Staff was not directed to write a fuel policy
that applies only to The Villages.

Airport Manager Weller said the capital improvement plan for the airport includes adding a
20,000 gallon tank in the future. It is possible he could get FDOT funding for that project now.
Chairman Kutch asked if the City would consider buying the tank The Villages is proposing to
install. Airport Manager Weller noted that is a 12,000 gallon tank and the City would prefer to
install a larger tank.

Allen Dunlap asked if Lester Coggins’s statement about not being allowed to have a fuel truck on
their premises is correct. Airport Manager Weller said the lease could be amended to allow that.
Allen Dunlap said the Sheriff Department and Brainerd currently have fuel trucks, yet he has
heard they are not supposed to store fuel. Airport Manager Weller said the leases can be
amended to allow that. He noted that if he can get funding, he could have a new tank in place in
approximately six to nine months.



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Brian Sapp said that he currently purchases fuel from Chevron. There are concerns that the
integrity of the fuel could be affected if different fuel brands are co-mingled. He can check with
Chevron to see if their policy has changed and they would allow that. Each time a fuel load is
received there are stringent tests that must be completed to ensure the fuel is clean. Chairman
Kutch asked if there is a big difference between fuel brands. Brian Sapp said there are integrity,
control and liability issues. Their fuel insurance is also issued through Chevron which may be an
issue. He will be willing to look into this.

Lester Coggins noted that another issue related to a fuel farm is that with mixing fuels the City
would probably need to have an employee be responsible for receiving and testing the fuel. That
will add increased liability to the City. This can be done but it will be a big step for Leesburg.
There is also the problem of The Villages needing a fuel truck to transport the fuel from the bulk
facility to their aircraft. This is not an ideal situation and adds a fuel truck to the airport traffic mix.
The Villages believes the best solution is a permanently installed double-walled tank. It is the
best answer environmentally and for safety. He noted that their facility was designed by a
company that specializes in airport fueling systems. He advised that although DEP has
inspected and permitted the tank, it is not yet connected. It is simply sitting on the pad. He also
stated that the letter from the City advising them to proceed with this project at their own risk was
received after the Planning & Zoning approval was received and after the initial slab permit was
received.

Lester Coggins said The Villages does not recommend for the Board to approve this policy
because it applies only to The Villages. The paragraph of the policy under Purpose removes all
other tenants and the FBO. That leaves only The Villages. They object to nearly everything in
this proposed ordinance. For example the insurance provisions under this policy are more than
the FBO must have. He asked if someone using five gallon cans to fuel their aircraft will be
required to have insurance coverage.

Chairman Kutch said nothing in the policy specifies The Villages, but he sees the point Mr.
Coggins is trying to make. He said that with regards to the insurance requirements, fuel storage
is the issue.

Lester Coggins asked the Board to note that with regard to future development of the airport,
there are several issues with the distance from the center line for runway 3/21 and the taxiways.
Their tank location is approximately 69 feet from the center of the taxiway. FAA requires that it
be 65½ feet away. He noted the blast fence is only 51 feet from the center of the taxiway when
you turn off at the end. Aircraft that are parked on taxiway B are less than 65 feet from the center
line. Also, the current published standards for that runway do not allow designated dual wheel
aircraft of 160,000 pound capacity such as a 737.

DCM Drymon said Mr. Coggins made several good points. The City is not trying to deny anyone
the ability to self-fuel. The policy addresses tanks of 10,000 gallons or more. The insurance risk
for that size tank is much different than for someone bringing just a few gallons to the airport in
their vehicle. In crafting this policy many things were considered. The Villages is being permitted
to do something that not every tenant can do. There are probably other tenants who may want to
install a tank but do not meet this standard and would be denied permission to do so. A rational
nexus had to be developed to place limits on who would meet the criteria for installing a tank.


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That included things such as size of hangar, size of leasehold, and type of aircraft. Only a
handful of current tenants may qualify based on the criteria established.

DCM Drymon said the City is aware that runway 3/21 and taxiway B have other facilities that will
need to be addressed before moving to a Class III designation. Things such as the blast fence
will have to be dealt with to make the airport suitable for larger aircraft. The City does not know
what the future holds. This policy has been drafted to try and plan for the future as well as meet
the needs of today’s tenants. Conflicts will be addressed as they arise.

Jim Brown asked Airport Manager Weller how close the self-service fuel tanks by the control
tower are to the taxiway. Airport Manager Weller said they are too close. The City knows they
will have to be relocated.

Allen Dunlap read a statement explaining his position on the fueling issue at this point. He was
on vacation in July and unable to attend that meeting. This issue arose unexpectedly and he
was surprised to learn that it had been on-going since January. As he read the material he
received on this topic he was concentrating on one issue – policy. A statement has been made
that there is nothing in writing that says a tenant cannot have a permanent fuel tank on their
leased premises. However, he has been unable to ascertain anything that states a tenant can
have a permanent fuel tank on their leased premises. He therefore believes it is up to the
discretion of the property owner (the City) to allow or disallow installation and utilization of
permanent fuel storage tanks at Leesburg International Airport. He has been unable to ascertain
anything in writing that states the airport tenants have the right, legal or otherwise, to install and
utilize a static fuel storage tank on airport property. He has been on this Board for eight
consecutive years and the City of Leesburg and Airport Manager’s policy has always been that
only the FBO can have a static fuel storage tank. He feels that if the City changes its past policy
pertaining to permanent fuel storage tanks, it is showing a double standard and setting a
precedent that any tenant, now and in the future, that has the money and space would have the
right to install a permanent fuel storage tank (ex: Sheriff & Brainerd). He thought this issue was
strictly related to the City’s policy of whether or not an airport tenant can install and utilize a
storage fuel tank.

Airport Manager Weller said there have been numerous meetings to discuss this issue. Former
deputy city managers have not allowed permanent tanks on the airport. It has been well known
on the airport that no storage tanks would be allowed except for the FBO. Mr. Schroth has said
that an unwritten policy cannot be enforced. This proposed policy was written to protect the
future of the airport.

Lester Coggins said the FAA grant assurances say all tenants have the right to self-fuel and
reasonable accommodation is to be made as long as it is done on their leasehold. He restated
that after much consideration The Villages determined that a permanent tank is the best way for
them to self-fuel. They believe the FAA grant assurances allow their project, subject to approval
by the owner of the airport. They believe that by issuing the permit, the City gave their approval.

DCM Drymon said he agrees with nearly everything Mr. Coggins just said. However, the
issuance of a permit does not circumvent the lease. One reason this policy has come up is that
City Manager Evans believes it is safer to not have a lot of fuel trucks driving around the airport.
In this instance it makes sense to allow a permanent tank. The safety factor is one driving force.

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Attorney Schroth said one of The Villages’ biggest concerns is the inclusion of the language in
the e-mail received today. He said Mr. Brooks is willing to work with the City on language to
allow for future relocation of the tank if Class III status is eventually achieved. Another of their
concerns is Section 2 which states no tenant shall engage in fuel storage and dispensing unless
those activities are specifically authorized in lease. Their lease does not have this authorization,
and they believe if the policy is approved with this section as written it will end their project. They
ask for the opportunity to continue to work with staff and bring a revision back to this Board.

Airport Manager Weller said the City owns the airport. The City is responsible for drafting the
policy. He does not believe The Villages should be included in drafting the policy. He agreed it
may need to be revised later. Considerable time and effort has been put into this policy and he
again urged the Board to pass it.

Chairman Kutch closed the floor to comment and held discussion among the Board members
only. Sherry Stewart said there are several things in the policy that are too ambiguous and open
to interpretation. Those items need to be more specific. Chairman Kutch said there are two
primary issues that need to be covered – accommodating businesses and the fact that there is
no written policy on fuel storage and dispensing and a policy is needed.

Allen Dunlap said he is impartial on this issue. He is wondering why a written policy is necessary
when the unwritten policy had been in place. He does not understand how it reached the point
that The Villages was allowed to proceed with a tank when there was an unwritten policy in
place. Chairman Kutch explained that the interpretation has been that an unwritten policy cannot
be enforced. Therefore, a written policy must be developed.

Jim Brown said this issue seems to have caught everyone flatfooted. He can see the
advantages and disadvantages to both sides. It appears that management has not thought
about growth and is not looking forward. It does not seem that anyone has planned for future
changes that may come to the airport such as commercial traffic

Airport Manager Weller said all airport development has to be based on the Airport Master Plan.
The current Plan needs to be revised. It was last updated in 2002. That Plan is what the Federal
and State officials use when funding is considered. The Plan is developed based on several
factors such as demographics. There is no crystal ball that can be used to predict everything that
may happen at the airport.

Jim Brown said that no one seems to have thought about self-fueling issues. The Villages’ plan
makes sense to a point. The FBO closes at 7pm. If The Villages wants to begin night operations
that will be a problem because fuel is not available. It seems no one was prepared when The
Villages made came forward with the proposal for this tank. He said that Airport Manager Weller
is trying to stop this tank. Airport Manager Weller said he is not trying to stop a tank, he is trying
to stop all tanks.

Chairman Kutch said he does not think this policy is ready for adoption. There are several things
that need closer examination. The City Commission has the right to move forward without a
recommendation from this Board. This policy is significant and deserves time for closer scrutiny.


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Allen Dunlap agreed that he needs more time to look at this policy. Sherry Stewart asked if City
staff and the airport manager were involved in drafting this policy. DCM Drymon said it was
written by the City Attorney with input from Airport Manager Weller, DCM Drymon, City Manager
Evans and Embry-Riddle Aeronautical University. Sherry Stewart said she believes a special
meeting should be held for the Airport Advisory Board to discuss just this policy.

Sherry Stewart made a motion that this Board should meet to come up with a revised Minimum
Standards for Fuel Storage and Dispensing Facilities policy and present it at the next Board
meeting for discussion. Allen Dunlap seconded the motion and it was approved unanimously.

Board Secretary Pam Hester asked for clarification of a timeline for the special meeting. The
Board requested that the meeting be scheduled in two weeks.

Chairman Kutch asked DCM Drymon to obtain fueling policies from comparable airports such as
Gainesville, Lakeland and Ocala for the Board to review.

Chairman Kutch asked if City Attorney Morrison can attend the special meeting. DCM Drymon
said he will check with him.

Amendment to the Lease Agreements with The villages Equipment Company

Chairman Kutch said that because the fueling policy has not been approved, the lease
amendments must be tabled.

Attorney Schroth said the City Commission indicated the lease should be amended. If the City
Commission is inclined to do so, The Villages would like for the lease amendments to go forward.
They believe the lease amendment should be approved before the fueling policy.

Chairman Kutch said he believes the fueling policy must be approved before the lease
amendment can be considered. Sherry Stewart said she has several concerns with the strike-out
version of the lease amendment that was proposed by The Villages.

Attorney Schroth said The Villages is willing to work with staff on those items. Their main
concern is the implementation of regulations after the lease is approved that will cause problems
after the fact.

Sherry Stewart said this lease proposal has gone to the other extreme. All requirements for
future changes have been removed. Those should apply to all tenants. There is always a risk
when an improvement is made. The lease amendment should include a timeframe limit for
changes to be implemented.

Sherry Stewart made a motion to table the lease amendment with The Villages Equipment
Company until the next regular meeting. Allen Dunlap seconded the motion and it was approved
unanimously.

Project Update

Airport Manager Weller gave the following project update:

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 Runway 3/21 Overlay: The work in the original project scope is complete. There is
approximately $40,000 left in this project budget. FDOT has approved spending these funds on
airside directional lighting. The signage at the airport is outdated. A master signage plan is
proposed for the future. This will be a first step.

There was no further discussion.

Adjournment

Chairman Kutch called for a motion to adjourn the meeting. Sherry Stewart made the motion and
it was seconded by Allen Dunlap. The meeting adjourned at 6:25pm.



_______________________________
Chairman


_______________________________
Secretary




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