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					     GAINESVILLE-ALACHUA COUNTY REGIONAL AIRPORT
                      AUTHORITY
                             Thursday, May 19, 2005 - 5:00 p.m.
                               Gainesville Regional Airport
                             Passenger Terminal – Restaurant
                                    Monthly Meeting

                                              AGENDA


                          Please turn off all cellular phones and beepers.


CALL TO ORDER BY THE CHAIR

INVOCATION

PLEDGE OF ALLEGIANCE

ROLL CALL

DETERMINATION OF A QUORUM

APPROVAL OF MEETING HIGHLIGHTS
The Airport Authority will review and approve the GACRAA monthly meeting Highlights of
April 21, 2005.

Recommendation: Motion to approve the meeting Highlights of April 21, 2005, and authorize
the Chair and Secretary/Treasurer to execute the document on behalf of the Airport Authority.

ADOPTION OF AGENDA
Citizens Input – Non-Agenda Items

Airport Authority Input – Non-Agenda Items

Consent Agenda

Airport Business:

1.    Information Items - Page 12



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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
            Project Summary
            Air Traffic Volume and Fuel Flowage - Page 17
            Commercial Passenger Traffic Load Factors - Page 19
2.    Finance Report - Page 20

3.    Facilities & Planning Committee Report - Page 24

            CFC Implementation Report / Recommendation
            Leibowitz & Horton Task Order for CFC Implementation –
            Resolution 05-015 - Page 27
            Airport Maintenance Equipment Building Recommendation
4.    Ad Hoc Personnel Committee Report - Page 32

            CEO Annual Performance Review and Contract Amendment –
            Resolution 05-022 - Page 42
            Adoption of 2005 Goals and Objectives - Page 46
5.    Finance & Operations Committee Report - Page 51

            FY03 Audit Report
            FY04 Audit – Purvis Gray & Co. Letter of Engagement –
            Resolution 05-023 - Page 60
6.    US Airways Pre-petition Debt Recommendation - Page 68

7.    AFSS Letter of Support - Page 69


Tenant Reports - Page 71
1. University Air Center

2. Gator Aviation Services, LLC


Airport Authority Attendance - Page 72

Adjournment




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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                   Agenda Page 1




                                               DRAFT

      GAINESVILLE-ALACHUA COUNTY REGIONAL AIRPORT AUTHORITY
                     Thursday, April 21, 2005– 5:00 p.m.
                        Gainesville Regional Airport
                      Passenger Terminal - Restaurant
                             Monthly Meeting
                                 Highlights



Call to Order by the Chair
Chair Jim Stringfellow called the meeting to order at 5:10 p.m.

Invocation: Ms. Carolyn Bomberger delivered the invocation.

Pledge of Allegiance: Chair Stringfellow led the Pledge of Allegiance.

Authority Members Present at Roll Call: C.B.Daniel, Jim Gallagher, Peter Johnson, Jim
Stringfellow, and Kinnon Thomas were present. Billy Brashear, Joe Dunlap, Jon Morris and
Marilyn Tubb were excused.

Determination of a Quorum: It was determined that a quorum was present.

Approval of Meeting Highlights for March 17, 2005
Mr. Daniel moved to approve the meeting highlights of March 17, 2005.                     Mr. Thomas
seconded the motion. Motion passed.

Adoption of the Agenda
Dr. Gallagher moved approval of the agenda. Mr. Johnson seconded the motion. Motion
passed.

Citizens’ Input
Mr. Mac McEachern, citizen, recommended enlisting the aid of the Gainesville City Commission
and the Alachua County Board of Commissioners to petition Lockheed to maintain the
Automated Flight Service Station (AFSS) at Gainesville Regional Airport.

Mr. Crider reported that he has tried to request a meeting with Lockheed Martin to present a case
      for keeping the AFSS open. He recommended writing to the City Commission and the
      legislative delegation to request support for keeping the station. He also mentioned that
      FAA employees have initiated a lawsuit to prevent the FAA from contracting with
      Lockheed Martin.

It was the consensus of the Board that staff should write a letter to the congressional delegation
explaining the merits of maintaining the AFSS at Gainesville Regional Airport. The letter will


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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
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mention the economic impact on the community and the merits of having an inland AFSS during
hurricane season.

Mr. Daniel recommended asking the Chamber of Commerce to co-sign the letters.

Dr. Gallagher recommended referring the matter to the Board’s legislative consultant, Winston &
Strawn.

Airport Authority Input – Non-Agenda Items - None

Consent Agenda

Mr. Crider reported that the FAA Civil Rights Office reviewed the draft FY05 DBE Goals and
Methodology report, and recommended changing the FY05 goal from 10% to 9.13%. The FAA
Civil Rights Office also requested that the public notice be published on April 24 instead of May
1, and ending the public comment period on June 8 instead of June 14.

Dr. Gallagher moved to approve the draft FY05 DBE Goals and Methodology report as
amended at the request of the FAA. Mr. Johnson seconded the motion. Motion passed.

Mr. Daniel moved to approve the consent agenda items. Mr. Thomas seconded the motion.
Motion passed.

The proposed Hoggetowne Medieval Fair Site Contract and the draft of the FY05 DBE Goals
and Methodology report were approved with the motion to approve the consent agenda.

Airport Business:

Information Items:
Mr. Crider reported that March was the sixth straight month of double-digit increases in
passenger traffic. Passenger volume for March of 2005 was 39.7% greater than March of 2004.

Mr. Crider reported that the Quartz Solutions project is moving forward. Construction will
commence upon receiving FAA airspace approval.

Mr. Crider reported that Florida Food Service is interested in expanding their operation in the
Airport Industrial Park.

Mr. Crider stated that our lobbyist continues to advocate funding for the Access Road Project.
The National Car Rental service facility and the airport maintenance area will need to be
relocated before the Access Road Project gets underway.

Mr. Crider reported that University Air Center (UAC) is in the process of moving the sign on
their new maintenance hangar and by doing so will fulfill the site improvement requirements of
the lease agreement.



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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                                     Agenda Page 3




    Mr. Crider reported that the Airport Master Plan Technical Advisory and Policy Advisory
    Committees met on April 21. He stated that Reynolds, Smith and Hills is ready to conduct a
    strategic planning session. Mr. Crider recommended scheduling the strategic planning session
    for Saturday, May 21 from 9:00 a.m. to 2:00 p.m. at the Hilton University of Florida Conference
    Center. He stated that Reynolds, Smith and Hills will provide a facilitator to conduct the
    meeting.

    Dr. Gallagher recommended that the facilitator be knowledgeable of aviation industry issues, as
    well as issues at Gainesville Regional Airport.

    Mr. Crider reported that installation of the passenger boarding bridges is underway and that the
    Gainesville Sun will soon publish a story regarding these enhancements.

    Mr. Crider reported that the St. Johns River Water Management District is very close to
    resolving the conservation easement / tree-clearing permit issue.

    Finance Report
    Mr. Garrick Crocker, CFO, reported that progress to streamline accounting processes and
    implement controls is underway in the Accounting Department.

    Mr. Crocker reviewed the following revenue and expense categories.


                                   March                           Variance
Revenue                             Actual    March Budget    Over / (Under)                      Comment
Terminal Parking                $95,319.18       $72,568.42      $22,750.76    Parking revenue exceeds budget due to increased
                                                                               passenger traffic.
FBO Gross Receipts %                 $0.00        $1,644.17      ($1,644.17)   Billing for March was not generated due to lack of
                                                                               documentation.
FBO Charter Passenger Fee             $0.00        $630.00         ($630.00)
FBO Ramp Parking Fee                  $0.00        $135.42         ($135.42)
Restaurant & Gift Shop            $5,960.71       $1,758.83        $4,201.88
Rental Car Excess Rents          $14,596.18       $6,164.67        $8,431.51
Other Income                    ($5,721.25)        $252.08       ($5,973.33)   Payment previously applied to account was re-
                                                                               posted to another acct.
Industrial Park Land Sales           $0.00        $3,112.50      ($3,112.50)   No activity in March



                                   March
Expenses                            Actual    March Budget    Over / (Under)                       Comment
Adminstration - Payroll         $52,774.85       $38,686.02      $14,088.83    Three payroll periods in March
Operations - Payroll             $5,064.00        $4,763.51          $300.49   Three payroll periods in March
Lounge - Payroll                 $2,974.46        $1,146.71        $1,827.75   Three payroll periods in March
Parking Lot - Payroll           $14,552.55        $9,281.49        $5,271.06   Three payroll periods in March
Facilities & Maint. - Payroll   $38,041.41       $31,789.37        $6,252.04   Three payroll periods in March
FAA Facilities - Payroll         $2,426.30        $1,757.81          $668.49   Three payroll periods in March
Administration - Dept           $56,460.57       $44,930.86      $11,529.71    Accounting consultant and excess legal services
Expense                                                                        unbudgeted.
Lounge - Dept Expense            $2,161.98        $1,008.41        $1,153.57   Cost of Goods Sold higher than budgeted due to
                                                                               additional sales
FAA Facilities - Dept              $616.43        $5,866.25      ($5,249.82)   Amount due to be paid to City


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    Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                       Agenda Page 4



Expense


    Mr. Crocker reported the following March year-to-date results:

                                              March Year-to-     March Year-to-
                                               Date Actual (6    Date Budget (6          Variance
               Revenue                                  mos.)             mos.)     Over / (Under)
               Total Revenue                    $1,775,187.63     $1,582,975.50       $192,212.13


                                              March Year-to-     March Year-to-
               Expenses                         Date Actual        Date Budget      Over / (Under)
               Total Expenses                  $1,491,875.13      $1,578,352.56       ($86,477.43)


               Income (Loss) Before
               Depreciation                      $283,312.50          $4,622.94        $278,689.56

    Mr. Thomas moved to accept the Finance Report. Mr. Daniel seconded the motion. Motion
    passed.

    Facilities and Planning Committee Report
    Mr. Crider recommended postponing discussion regarding the Consolidated Facility Charge
    (CFC) Implementation Report / Recommendation and the Leibowitz & Horton Task Order for
    CFC Implementation due to the fact that two committee members were not present.

    Mr. Thomas moved to table the Consolidated Facility Charge (CFC) Implementation Report /
    Recommendation and the Leibowitz & Horton Task Order for CFC Implementation. Mr.
    Daniel seconded the motion. Motion passed.

    Mr. Crider reported that the Facilities and Planning Committee met on April 7, 2005. He stated
    that the committee recommends initiating an RFP process to solicit proposals from specialized
    aviation service operators for the old Gulf Atlantic Airways site. He provided an overview of the
    elements of RFP 05-004 which was included in the agenda packet. Staff recommends a five (5)
    year term with a renewal option for the 1.75 acre site, which includes the old Gulf Atlantic
    Airways building, the old Gator Air building and the old fire station. Mr. Crider recommended
    repairing the Gulf Atlantic Airways building prior to leasing it to a new tenant. A proposal does
    not have to include all of these buildings, as some proposals may only be interested in the larger
    hangar.

    Mr. McEachern, citizen, stated that two FBOs operated at the location in the 1960s and 1970s
    and that there should be sufficient land available to support an FBO at the proposed site. He
    encouraged the Board to increase the size of the offered site, to meet the Minimum Standards
    requirement of 5 acres, to allow for another full-service FBO on the airfield.

    Mr. Daniel recalled that no proposals were received in December 2004 when the site was last
    offered for a specialized aviation service operator in an RFP process. He stated that he does not
    recommend adding another full-service FBO at this time.


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    Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                   Agenda Page 5




Mr. Thomas moved to approve RFP 05-004. Mr. Daniel seconded the motion.

A discussion followed regarding whether the airfield could support two full-service FBOs.

Mr. Thomas recommended moving forward with the RFP process and evaluating the responses.

Mr. Crider encouraged moving forward with the RFP in the hope that a new operator would
provide specialized aviation services that aren’t currently offered at Gainesville Regional
Airport.

Mr. Thomas moved to call the question. The motion to approve RFP 05-004 passed 5-0.

Mr. Crider reported that Ms. Bomberger, Gator Aviation Services, LLC, and Mr. David Cruise,
the tenant in the bi-fold door hangar, intend to enter into a business relationship whereby aircraft
currently stored within the bi-fold door hangar will be utilized in the business of Gator Aviation
Services. He recommended leasing the bi-fold door hangar to Gator Aviation Services with the
same terms and conditions currently described in the lease with Mr. Cruise for a term ending
May 31, 2006.

Mr. Thomas moved to adopt Resolution 05-016 authorizing a lease of the bi-fold door hangar
to Gator Aviation Services, LLC. Dr. Gallagher seconded the motion. A roll call vote
followed: Mr. Daniel – aye, Dr. Gallagher – aye, Mr. Johnson – aye, Mr. Thomas – aye and
Mr. Stringfellow – aye. Motion passed 5-0.

Mr. Crider introduced Gainesville Regional Utilities (GRU) representatives Mr. Kik Koppitch
and Mr. Mark Spiller to the Board. Also, he introduced Mr. Jeff Breeden, Reynolds, Smith &
Hills, Inc. (RS&H).

Mr. Breeden reported that during the initial phases of the terminal renovation design, GRU
representatives approached Reynolds, Smith & Hills, Inc. about the possibility of implementing
solar panels as part of the design process. He reported that the RS&H architectural staff
provided a solution by incorporating the solar panels as part of the design of the roof of the
building.

Mr. Spiller explained that GRU is interested in designing and installing a new solar energy
collector system on the roof of the airline terminal building as a demonstration project. He
reported that GRU is willing to fund the entire project including all design, installation, operation
and maintenance costs. Mr. Spiller stated that the system would provide 17,000 kilowatt hours
of energy per year which is enough to power 1.5 homes. The electricity generated by the solar
panels will feed into the GRU electric distribution system. The solar panels will not power the
airline terminal.

Mr. Spiller reported that GRU does not seek any financial assistance from the airport. He
indicated that the timeline for installing the system is driven by the lead-time on the photovoltaic
cells which ranges from 6 to 24 months. He indicated that, if approved by GACRAA, the total
timeline from approval to operation would be at least 12 months.


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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
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Mr. Spiller stated that the system will cost approximately $120,000 - $130,000 to install.
Mr. Johnson stated that he was not willing to support the project since it is economically
unattractive.

Mr. Thomas moved to recommend that the Authority approve the proposed GRU Solar Panel
Project at the airport. Mr. Daniel seconded the motion.

A lengthy discussion followed regarding the value of the project to GRU, the airport and the
community.

Mr. Crider reported that although the airport would not benefit financially, it would be perceived
as a progressive, green-energy partner and would receive recognition and promotion in GRU
literature. He indicated that negotiation with GRU for promotional value to the Airport is
underway.

Mr. Thomas moved to call the question. The motion passed 4-1 with Mr. Johnson dissenting.

Mr. Crider reported that the Gulf Atlantic Airways hangar was vacated on March 15. He stated
that the building requires repairs and, referring to page 80 of the agenda packet, stated that the
estimated repair cost totals $19,351.90. Mr. Crider reported that Dr. Lukowski originally offered
$4,000 to pay for repairs of the GAA hangar. In an April 14, 2005 letter to Mr. Crider, Dr.
Lukowski offered $10,000 but requested that the $10,000 be refunded to GAA if the Board later
decides to raze the building. After additional negotiation, he and Dr. Lukowski agreed to split the
difference between $19,351.90 and $10,000. Dr. Lukowski has now agreed to pay $14,676
toward the repair of the hangar.

Mr. Crider recommended that the Board accept Dr. Lukowski’s offer of $14,676. He stated that
there is no documentation describing the condition of the hangar in 1998 when GAA and
GACRAA executed the lease agreement.

Mr. Thomas moved to accept Dr. Lukowski’s offer of $14,676. Mr. Daniel seconded the
motion.

Mr. Thomas stated that he was uncomfortable with the stipulation in Dr. Lukowski’s April 15,
2005 letter that he receive a refund if the building is razed.

Dr. Lukowski stated that he rescinds the refund stipulation.

Mr. McEachern, citizen, provided an overview of the tenant history of the GAA building. He
indicated that historically the Board has not done a good job of managing public property.

The vote on Mr. Thomas’ motion to accept Dr. Lukowski’s offer followed. Motion passed 5-0.

Mr. Crider reported that during the last hurricane, NE 42nd Terrace, a general aviation access
road, washed out. He stated that the Board previously accepted an FAA grant for emergency


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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
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repairs associated with hurricane damage. Mr. Crider stated that Reynolds, Smith & Hills has
assessed the situation in conjunction with the airport master plan update, and RS&H
recommended building a new access road 300 feet east of the wash-out location.

Mr. Crider recommended approval of RS&H Task Order # 16 for the NE 42nd Terrace Structure
Replacement Project and Resolution 05-017. One hundred percent (100%) of the task order
amount is $183,420 will be funded by the FAA grant.

Mr. Thomas moved to adopt Resolution 05-017 authorizing execution of Task Order #16 with
R.W. Armstrong and Associates, Inc. for the NE 42nd Terrace Replacement. Mr. Daniel
seconded the motion. A roll call vote followed: Dr. Gallagher – aye, Mr. Johnson – aye, Mr.
Thomas – aye, Mr. Daniel – aye, and Mr. Stringfellow – aye. Motion passed 5-0.

Mr. Crider introduced Mr. Jeff Kyser to the Board. He stated that Mr. Kyser is a new Sr. Project
Manager with R.W. Armstrong and will rent an office in the new University Air Center
maintenance hangar.

Dr. Lukowski noted that he has forwarded a draft lease agreement for the office to R.W.
Armstrong for review and execution.

Business Development & Marketing Committee Report
Mr. Crider introduced Mr. Matt Kyle to the Board. Mr. Kyle is the owner of Jet Fuel Coffee
Company, LLC.

Mr. Kyle stated that his company has proposed operating a food and beverage kiosk in the airline
terminal. He stated that he is looking forward to the opportunity to provide this service to airport
patrons. Mr. Kyle provided an overview of the types of beverages and foods he plans to offer.

Mr. Thomas moved to adopt Resolution 05-018 authorizing execution of a temporary food and
beverage concessionaire agreement with Jet Fuel Coffee Company, LLC. Mr. Johnson
seconded the motion. A roll call vote followed: Mr. Johnson – aye, Mr. Thomas – aye, Mr.
Daniel – aye, Dr. Gallagher – aye, and Mr. Stringfellow – aye. Motion passed 5-0.

Mr. Crider introduced Mr. Dan Gibbs, Sabre Airlines Solutions, to the Board.

Mr. Gibbs reported that Delta Airlines released its first quarter 2005 financial results on April 21
and reported a $1.1 billion loss. He indicated that most of this loss is attributed to higher fuel
costs. He stated that since 2001, Delta Airlines has lost $9.6 billion.

Mr. Gibbs reported that Sabre Airlines Solutions and its predecessor company, Kiehl
Hendrickson Group, have compiled two previous market analysis and leakage study reports for
Gainesville Regional Airport. Mr. Gibbs described the methodology of completing the market
analysis and leakage study with 2004 data.




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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
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Mr. Gibbs provided the following information on the leakage study for 2004:

        Primary Catchment Area – (within 40 – 50 miles of the airport)
        Gainesville Regional Airport retained 29% of the travelers; 71% leaked to other airports.
        Orlando catches 33% of Gainesville area travelers;
        Jacksonville catches 25% of Gainesville area travelers;
        Tampa captures 11% of Gainesville travelers.

        Approximately 415,000 passengers originated airline trips in 2004. This equates to
        approximately 1,140 daily passengers originating from the area with 340 traveling from
        Gainesville Regional Airport and 800 using Orlando, Jacksonville, or Tampa.

        70 passengers travel to the New York City area each day although USDOT data indicates
        only 13 passengers travel to NYC daily from this area.

        Gainesville Regional Airport retains only 67% of the travelers flying to Atlanta (final
        destination).

        ASA/Delta Connection carried 47% of Gainesville Regional Airport travelers.

        Total Catchment Area – (within half the distance to other airports, Jacksonsville,
        Orlando, and Tampa)

        Gainesville Regional Airport retained 17.5% of the travelers; 82% leaked to other
        airports.
        Orlando catches 37.5% of Gainesville area travelers;
        Jacksonville catches 31% of Gainesville area travelers;
        Tampa captures 12% of Gainesville travelers.

        Approximately 700,000 passengers originated airline trips in 2004. This equates to
        approximately 1,900 daily passengers originating from the area with 342 traveling from
        Gainesville Regional Airport and 1,558 using Orlando, Jacksonville, or Tampa.

        119 passengers travel to the New York City area each day.

        Gainesville Regional Airport retains only 39% of the travelers flying to Atlanta.

Mr. Gibbs mentioned that he, Ms. Tubb and Mr. Crider met with Delta Air Lines in Atlanta on
April 5; he indicated that the aforementioned statistics presented a good case for asking for
additional service, i.e. increase in number of flights, larger aircraft, or even a non-stop flight to
New York City.

Mr. Gibbs stated that he is working to schedule a meeting with Northwest Airlines planners in
May to review the data generated by the study.




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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                   Agenda Page 9




Mr. Crider noted that by including the first quarter of 2005 in the study the Board could evaluate
the impact of the two new airlines, Northwest Airlink and Continental Connection.

Mr. Gibbs stated that extending the study through June 2005 should measure the year-over-year
impact of the Delta Air Lines’ SimpliFaresTM program introduced in January of 2005 and the
impact of the fourth US Airways jet flight that was recently added to the schedule.

Ad Hoc Personnel Committee Report
Mr. Daniel reported that the committee has met several times to develop recommendations
regarding the criteria for the 2004 CEO annual performance review and 2005 compensation. He
stated that the committee will also provide a recommendation regarding 2005 goals and
objectives for the CEO. He indicated that the committee plans to present its recommendations to
the Board at its meeting in May of 2005. Mr. Daniel reported that the committee has begun the
process of developing a recommendation regarding a self-evaluation for Board members. He
indicated that a recommendation on this matter would be presented to the Board by August of
2005.

Finance & Operations Committee Report
Dr. Gallagher reported that the committee met on April 19, 2005.

Dr. Gallagher reported that the FY03 Audit has not been completed but the deadline date for
submitting the audit to the Florida Department of Community Affairs is April 28, 2005. He
recommended that the Board receive a preliminary presentation of the FY03 Audit Report at this
meeting and adopt Resolution 05-019 which authorizes the Finance & Operations Committee to
receive a final version of the audit on April 28 and to approve the audit report at that time.

Ms. Appie Graham, consultant, distributed copies of the preliminary draft of the FY03 Audit
Report. She reported that the draft does not contain the auditors’ assessment of internal controls
and the management letter of the auditors’ findings.

Ms. Graham reviewed the following components of the audit report focusing on items which
were subject to revision in the final version of the report:
          Balance Sheets
          Statements of Revenues, Expenses and Changes in Retained Earnings
          Statements of Cash Flows
          Notes to Financial Statements
          Revenue Comparison – Budget vs. Actual
          Expense Comparison – Budget vs. Actual
          Schedule of Federal Financial Assistance
          Schedule of State Financial Assistance

Dr. Gallagher noted that the Board will most likely receive an unfavorable management letter
from Purvis Gray and Company. He reported that there remain open issues regarding Flightline
Group and that staff is working to resolve these issues prior to finalizing the audit report. Dr.
Gallagher stated that there is also an unresolved issue with the City of Gainesville regarding



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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 10




whether there is an accrued payables balance due to the City of Gainesville for risk management
services retroactive to 1999. He stated that Ms. Graham is working to resolve the matter.

Mr. Thomas moved to adopt Resolution 05-019 accepting the fiscal year 2003 annual
financial audit presented by staff on April 21 and authorizing the Finance & Operations
Committee to receive and approve the final version of the audit report on April 28, 2005. Mr.
Johnson seconded the motion. A roll call vote followed: Mr. Thomas – aye, Mr. Daniel – aye,
Dr. Gallagher – aye, Mr. Johnson – aye, and Mr. Stringfellow – aye. Motion passed 5-0.

Dr. Gallagher reported that the committee recommends that staff send a letter on or before April
28 to Flightline Group to demand documentation for start-up funding in the amount of $100,000
provided to Flightline by GACRAA.

Dr. Gallagher reported that the committee endorsed staff’s proposal to issue a new RFP for a
Cell Phone Antennae on airport property.

Dr. Gallagher reported that the committee recommends approval of a plan to install Precision
Approach Path Indicator (PAPI) lights on Runways 6 and 24. Dr. Gallagher stated that the total
cost of the project is estimated at $78,015 with the FDOT funding 50% of the cost and
GACRAA providing a 50% local match. Included in this amount is $6,200 for the cost of
additional engineering services by R.W. Armstrong.

Mr. Thomas moved to adopt Resolution 05-021 authorizing execution of Amendment #1 to
R.W. Armstrong Task Order #15 for Airfield Guidance Signs Improvements. Mr. Daniel
seconded the motion. A roll call vote followed: Mr. Daniel – aye, Dr. Gallagher – aye, Mr.
Johnson – aye, Mr. Thomas – aye, and Mr. Stringfellow – aye. Motion passed 5-0.

Dr. Gallagher reported that the committee recommends approval of FAA Lease # DTFASO-05-
L-00128 for the FAA Airways Facilities office building. The lease has been renegotiated. The
new rental rate will be $13.22 per usable square foot based on a market value survey completed
in September of 2004. Total annual rent will be $26,891.34. The previous rental rate was
$11.00 per usable square foot. Dr. Gallagher reported that GACRAA will be required to replace
the carpeting within the offices by July 1, 2005 at a cost of approximately $5,000.00.

Mr. Thomas moved to adopt Resolution 05-020 authorizing execution of lease # DTFASO-05-
L-00128 with the U.S. Department of Transportation, Federal Aviation Administration (FAA)
for the purpose of operating a system service center (SSC) at Gainesville Regional Airport.
Mr. Johnson seconded the motion. A roll call vote followed: Dr. Gallagher – aye, Mr.
Johnson – aye, Mr. Thomas – aye, Mr. Daniel – aye, and Mr. Stringfellow – aye. Motion
passed 5-0.

Ownership of Airport Lands
Mr. Crider stated that the 1995 Enabling Legislation provides for the transfer of ownership of
airport lands from the City of Gainesville to GACRAA at no cost. He reported that he had had
several meetings with former City Manager Wayne Bowers, Interim City Manager Barbara



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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 11




Lipscomb, City Attorney Marion Radson and Don Stanley, Attorney for the Authority, regarding
this issue.

There were no comments from the Board or the public regarding this item.

Tenant Reports - None

Airport Authority Attendance
No issues to report at this time.
Adjournment
There being no further business, the meeting was adjourned by the Chair at 7:34 p.m.


GACRAA Monthly Meeting

_____________________________                                           _________________
James L. Stringfellow, Sr., Chair                                       Date

_____________________________                                           _________________
T. James Gallagher, Secretary/Treasurer                                 Date




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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 12




AIRPORT BUSINESS



        1. Information Items

        ___________________                     ____________________________________

        Project Summary

            •     DHL
                  DHL has expressed an interest in flying cargo aircraft into Gainesville Regional
                  Airport. Staff is working to confirm this interest, and to determine both timeline
                  and facility requirements.

            •     Automated Flight Service Center
                  The FAA has announced that it intends to outsource Automated Flight Service
                  Station functions to Lockheed, and to close the GNV Station. A letter outlining
                  the merits of keeping the GNV station open is being developed.

            •     Eclipse Aviation
                  Negotiation of an Incentive Agreement and Lease are underway. $2.825 million
                  in FDOT Grant funds have been secured. Discussions with the City of
                  Gainesville are underway regarding the financing of this project.

            •     Airshow
                  The U.S. Navy Blue Angels have announced that they will perform at the
                  “Heart of Florida” Air Show, which will take place September 24-25, 2005.

            •     Fiscal Year 2003 Audit
                  Complete
                  Future Action(s) Needed: Full distribution

            •     Fiscal Year 2004 Audit
                  Letter of engagement has been received.

            •     Consolidated Rental Car Facility and Expanded Ready Lot
                  Master Plan consultants were tasked with determining the feasibility of
                  constructing a shared rental car service facility, and the prospect of utilizing a
                  Customer Facility Charge (CFC) on rental car transaction days to pay for these
                  improvements. The preliminary analysis is complete and was presented in May
                  of 2004. Should the Authority choose to pursue this funding opportunity, a
                  second effort to implement the program will be needed. Site visits to review

________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 13




                  comparable facilities in South Carolina have been accomplished, and the
                  preliminary analysis has been updated per committee direction. Rental Car
                  operators are in favor of a $3.00 CFC to accomplish needed improvements.

                  Future Action(s) Needed: Should the Authority choose to pursue
                  implementation of a CFC, approval of a Task Order for implementation must be
                  accomplished, as well as development of Conceptual Design and cost estimates
                  for Board consideration.

            •     Fixed Asset Inventory
                  Fixed asset accounting software has been ordered and a physical inventory has
                  begun.

                  Future Action(s): Completion of physical inventory.

            •     Purchasing Policy
                  A revision of the City purchasing policy was recommended by the Auditor to
                  better fit the Authority’s organizational structure.

                  Future Action(s): Development of policy for the Board to consider.

            •     Financial Policy
                  A new financial policy is needed to describe the Authority’s financial strategy,
                  and new accounting structure being put in place.

                  Future Action(s): Development of policy for the Board to consider.

            •     Leasing Policy
                  A leasing policy is needed to describe how the Authority intends to go about
                  leasing facilities it owns, and when competitive processes will be employed. A
                  draft policy has been developed for the Facilities and Planning Committee to
                  consider.

                  Future Action(s): Development of policy for the Board to consider.

            •     Hangar Development
                  T-Hangar design is underway, and a neighborhood meeting was held on April
                  26.

                  Future Action(s) Needed: Completion of the T-Hangar design, review of plans
                  and specifications before bidding, construction bidding and placement of debt.


________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 14




            •     ADS-B Installation
                  Gainesville is one of five sites in Florida to receive new technology that will
                  broadcast traffic information to aircraft. Installation of equipment was
                  anticipated in 2004.

                  Future Actions(s) Needed: FAA installation of equipment.

            •     Access Road Projects
                  Funding for a new access road from Waldo Road to the airline passesnger
                  terminal, an upgrade to the existing access road to the airline terminal, and an
                  extension of the Airport Industrial Park road has been requested as a
                  demonstration project in the fiscal year 2006 USDOT reauthorization
                  legislation. Funding for this project has also been requested through the FDOT
                  Strategic Intermodal System (SIS) plan.

                  Future Action(s) Needed: Relocation of the National rental car service center
                  and the airport maintenance area will need to be accomplished before road
                  construction can take place.

            •     University Air Center (UAC)
                  All improvements have been completed.

                  Future Action(s) Needed:

            •     Multi-Modal Facility
                  Utilizing the recent USDOT grant. A scope of work for Phase I development is
                  being compiled.

            •     Gulf Atlantic Facilities
                  Gulf Atlantic has vacated the bulk hangar and adjacent office effective March
                  15. An RFP in response to recent inquiries will soon be advertised.

                  Future Action(s) Needed: Building Repairs

            •     Runway 10-28 Rehabilitation
                  Runway paving is complete. The runway is now open and is operating as
                  Runway 11-29. FAA has granted permission to use available grant funds for
                  runway signage, two (2) new PAPI systems, pilot-operated lighting controls and
                  other lighting improvements using surplus grant funds. Pavement grooving and
                  final paint are complete.



________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 15




                  Future Actions(s) Needed: Complete signage and lighting improvements and
                  grant close-out.

            •     Runway 10-28 Ditch Enclosure
                  Construction is complete.


                  Future Action(s) Needed: Grant close-out.

            •     Airport Master Plan Update
                  Working Paper #3 has been presented to the TAC and PAC for comment. A
                  strategic planning session is scheduled for May 21.

                  Future Action(s) Needed: Document completion and adoption by Board.

            •     Fairground Property
                  The County Commission has adopted Plan East Gainesville. The Master Plan
                  consultant has depicted a proposed land swap for County consideration, though
                  the County is considering other sites as well. An administrative work group has
                  been meeting and staff is participating.

                  Future Action(s) Needed: County Commission decision.

            •     Runway 6-24 Threshold Relocation / Extension and R/W 29 Environmental
                  Assessment
                  Phase 1 of the study is underway. A Phase 2 Task Order is being processed.


                  Future Action(s) Needed: Complete Phase 1 and begin Phase 2 once a Task
                  Order with RS&H is in place.

            •     Airline Passenger Terminal Renovation
                  Phase I includes modifications of the terminal gate area to accept three (3)
                  Passenger Boarding Bridges (PBB), purchase and installation of 3 PBB,
                  concrete apron repair and joint sealing. Construction is underway and PBB
                  have been installed. Phase I of the project should be complete in June.


            •     St. Johns River Water Management District
                  The water management district is pursuing resolution of conservation easement
                  recordation and wetland clearing permits associated with work done in the early
                  1990’s (Taxiway A Extension) and mid-1990’s (tree clearing in approach to



________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 16




                  Runway 29) respectively. The water management district has tentatively agreed
                  to the proposal of recording the easement on Gum Root Park property.


                  Future Action(s) Needed: Complete discussions with the district, record
                  conservation easement on property identified in resolution, and obtain
                  appropriate permits for any property within wetland areas where trees were cut
                  without being previously permitted.

            •     Airport Maintenance Facility
                  Facilities adequate to store, service and maintain airport equipment do not exist,
                  and those that do exist sit in the path of the new entrance road. Conceptual
                  Design of a new Maintenance Facility is complete.

                  Future Action(s) Needed: Design and Bid specification development, and cost
                  estimate development.

            •     Consolidated Communications Antennae, RFP # 03-002
                  No responses were received for RFP # 03-002. A new RFP is being developed.


                  Future Action(s) Needed: Determine location and repackage RFP.

            •     Gun Firing Range
                  The North Central Florida Sportsman’s Association has renewed its interest in
                  establishing a shooting range at the old police-training academy. Master Plan
                  consultants have concluded that such an establishment would be compatible
                  with the long-term plans for the airport, though relocation and extension of
                  Runway 6-24 precipitates a need for further review. Substantial improvements,
                  to include baffling, have been proposed by the association. Discussion with the
                  City on appropriate uses of land-fill property needs to take place.
                  Environmental status and responsibility for existing lead needs to be addressed.


                  Future Action(s) Needed: FAA review and discussion. Request to the City of
                  Gainesville to quantify lead contamination from previous City activities.

            •     Port-A-Ports
                  Power to the new pads has been turned on. A variance for location within the
                  FEMA floodplain will be granted and discussions on flood-proofing are
                  wrapping up.

                  Future Action(s) Needed: Complete work to achieve a variance and flood-proof
                  as necessary. Develop a long-term plan regarding Port-A-Port hangars.

________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                                                      Agenda Page 17
                                     Gainesville Regional Airport
                                     Air Traffic Volume and Fuel Flowage
                                   For the Seven Months Ending April 30, 2005

                                                                % Change                                            % Change
                                   Actual     Prior               Over               FY-T-D     FY-T-D                Over
                                 April 2005 April 2004            Prior             April 2005 April 2004             Prior


Air Traffic Volume Report
Passengers
Regional Carriers
   Deplaned                    15,438          12,017         28.47%             231,127           74,800       208.99%
   Enplaned                    15,882          11,796         34.64%             230,378           73,522       213.35%
                         --------------- --------------- ------------------- --------------- --------------- ---------------
      Totals                   31,320          23,813         31.52%             461,505         148,322        211.15%

Non-Scheduled (Charter)
  Deplaned                                    0               9 (100.00%)                   6,898           3,279      110.37%
  Enplaned                                    0               9 (100.00%)                   6,568           2,843      131.02%
                                --------------- --------------- ------------------- --------------- --------------- ---------------
       Totals                                 0             18 (100.00%)                  13,466            6,122      119.96%

Totals (All-Types)
   Deplaned                           15,438          12,026         28.37%             238,025           78,079       204.85%
   Enplaned                           15,882          11,805         34.54%             236,946           76,365       210.28%
                                --------------- --------------- ------------------- --------------- --------------- ---------------
       Totals                         31,320          23,831         31.43%             474,971         154,444        207.54%
                                ======== ======== ========== ======== ======== ========


Cargo
Air Freight
    Deplaned                          13,194          65,476 (79.85%)                 1,133,899         425,597        166.43%
    Enplaned                            3,802         25,397 (85.03%)                   462,506         188,714        145.08%
                                --------------- --------------- ------------------- --------------- --------------- ---------------
      Totals                          16,996          90,873 (81.30%)                 1,596,405         614,311        159.87%


Air Express
    Deplaned                              113             522 (78.35%)                    23,991          10,171       135.88%
    Enplaned                              567             765 (25.88%)                    11,230            4,395      155.52%
                                --------------- --------------- ------------------- --------------- --------------- ---------------
      Totals                              680           1,287 (47.16%)                    35,221          14,566       141.80%

Total Cargo                         17,676   92,160 (80.82%)  1,631,626  628,877 159.45%
                                ======== ======== ========== ======== ======== ========

Tower Operations (Numbers)
 Air Carrier (60+Seats)           170             233 (27.04%)                      4,487           1,422      215.54%
 Commuter/Taxi(Under 60           994             386      157.51%                10,073            2,650      280.11%
 Cargo Carrier                      38              72 (47.22%)                     1,185             480      146.88%
 Gen. Aviation                  7,336           6,416        14.34%             103,851           38,319       171.02%
 Military                       1,438           1,011        42.24%               13,057            4,358      199.61%
                        --------------- --------------- ------------------- --------------- --------------- ---------------
      Totals                    9,976           8,118        22.89%             132,653           47,229       180.87%

Fuel Flowage Report (Gallons)
General Aviation
   Jet A                              0       33,208 (100.00%)                  743,753         315,430        135.79%
   AvGas                              0       21,873 (100.00%)                  379,225         139,155        172.52%
                        --------------- --------------- ------------------- --------------- --------------- ---------------
Total General Aviation                0       55,081 (100.00%)                1,122,978         454,585        147.03%

Airlines Jet A                               0        84,506 (100.00%)               1,896,898          572,307        231.45%

Military Jet A                                0       10,950 (100.00%)                  205,795           78,938       160.70%
                                --------------- --------------- ------------------- --------------- --------------- ---------------
Total Fuel Flowage                            0     150,537 (100.00%)                 3,225,671 1,105,830              191.70%
                                ======== ======== ========== ======== ======== ========
                                                                                                                                              Agenda Page 18




                                                             Passenger Traffic by Month
                                                                    April 2005
                       40,000

                       35,000

                       30,000
Number of Passengers




                       25,000

                       20,000

                       15,000

                       10,000

                        5,000

                           0       Jan      Feb      Mar      Apr      May      Jun      Jul      Aug      Sep      Oct      Nov      Dec
                           2004   17,043   20,280   25,911   23,831   22,785   23,137   21,926   19,556   17,416   31,095   30,868   29,104
                           2005   26,447   31,120   35,753   31,320
                                                                                                          Agenda Page 19
                           Gainesville Regional Airport
                          Commercial Passenger Traffic Load Factors
                          For the Seven Months Ending April 30, 2005

                                                             Total         F-YTD            F-YTD
                                           Total             Load           Total            Load
                                        Passengers          Factor       Passengers         Factor

Airlines:
Atlantic Southeast Airlines: (Delta Connection)
Load Potential                          $11,078.00         100.0%          $87,746.00         100.0%
                                  -------------------- ------------- -------------------- -------------
Arriving                                   8,576.00         77.4%           61,539.00          70.1%
Departing                                  8,649.00         78.1%           60,973.00          69.5%
Total Passengers for the Month           17,225.00          77.7%          122,512.00          69.8%

Mesa Airlines: (US Airways Express)
Load Potential                          5,400.00        100.0%           33,800.00         100.0%
                               -------------------- ------------- -------------------- -------------
Arriving                                3,987.00         73.8%           24,716.00          73.1%
Departing                               4,303.00         79.7%           24,767.00          73.3%
Total Passengers for the Month          8,290.00         76.8%           49,483.00          73.2%

Pinnacle Airlines: (Northwest)
Load Potential                          2,596.00        100.0%           18,040.00         100.0%
                               -------------------- ------------- -------------------- -------------
Arriving                                1,960.00         75.5%           11,964.00          66.3%
Departing                               2,018.00         77.7%           12,184.00          67.5%
Total Passengers for the Month          3,978.00         76.6%           24,148.00          66.9%

Gulfstream/Continental Connection:
Load Potential                          1,748.00        100.0%           15,219.00         100.0%
                               -------------------- ------------- -------------------- -------------
Arriving                                   915.00        52.3%             6,868.00         45.1%
Departing                                  912.00        52.2%             7,091.00         46.6%
Total Passengers for the Month          1,827.00         52.3%           13,959.00          45.9%

Totals for All Airlines
Load Potential                            20,822.00  100.0%    154,805.00  100.0%
Total Passengers                          31,320.00   75.2%    210,102.00   67.9%
                                      ============ ======== ============ ========


Gulfstream/Continental Connection - Tampa Route (YTD Figures are still under construction)
Load Potential                             494.00       100.0%
                               -------------------- --------------------------------------------------
Arriving                                   182.00        36.8%
Departing                                  200.00        40.5%
Total Passengers for the Month             382.00       100.0%

Gulfstream/Continental Connection - Miami Route (YTD Figures are still under construction)
Load Potential                          1,254.00        100.0%
                               -------------------- --------------------------------------------------
Arriving                                   733.00        58.5%
Departing                                  712.00        56.8%
Total Passengers for the Month          1,445.00        146.3%
                                                                                                  Agenda Page 20




AIRPORT BUSINESS



        2. Finance Report

        ___________________                     ____________________________________

        An update on the GACRAA budget and a comparison with actual revenue
        and expenditures as of April 30, 2005 will be provided.


        Recommendation: Listen to the report and give any applicable comment.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                                                                  Agenda Page 21
                                              Gainesville Regional Airport
                                     Actual vs. Budget Statement of Operations
                                     For the Seven Months Ending April 30, 2005
                                                        Page 1
      NOTE: These are preliminary unaudited statements. Certain accruals and adjustements may have been omitted.


                                     Current            Current         Variance                   Y-T-D                Y-T-D             Variance
                                     Actual             Budget         Over/(Under)                Actual               Budget           Over/(Under)

Revenues
Advertising Revenue                     2,837.21           1,333.33           1,503.88                 9,122.78           9,333.31               (210.53)
Air Carrier Exclusive Rent              9,589.41           9,431.08             158.33               68,857.99           66,017.56               2,840.43
Other Exclusive Rent                        44.98              45.00             (0.02)                  314.86              315.00                 (0.14)
TSA Office Rent                         2,387.12           2,387.17              (0.05)              16,709.84           16,710.19                  (0.35)
TSA Screening Checkpoint Reim           6,734.28                0.00          6,734.28                 6,734.28                 0.00             6,734.28
Air Carrier Non-Excl. Rent            16,437.60          16,437.58                 0.02             115,596.00         115,063.06                  532.94
Airport Security Charges              20,777.94          22,583.33         (1,805.39)               147,241.89         158,083.31            (10,841.42)
Comm. Terminal Parking Revenu         92,409.42          72,568.42          19,841.00               617,938.46         507,978.94            109,959.52
Corporate Aviation                      1,527.57           1,527.50                0.07              10,692.99           10,692.50                    0.49
Fuel Flowage Fees                       4,479.45           3,416.67           1,062.78               13,013.90           23,916.69           (10,902.79)
FBO Fuel Flowage Fees                        0.00               0.00               0.00                8,698.75                 0.00             8,698.75
Non-Scheduled Landing Fees              1,043.00             541.67             501.33                 4,620.22           3,791.69                 828.53
General Aviation Landing Fees             481.00             583.33           (102.33)                 3,387.64           4,083.31               (695.67)
Fixed Base Operators Rent             13,753.51          13,753.50                 0.01              96,274.57           96,274.50                    0.07
FBO Gross Receipts %                    1,094.66           1,644.17           (549.51)                 5,742.79          11,509.19            (5,766.40)
FBO Charter Passenger Fee                 414.00             630.00           (216.00)                 3,492.00           4,410.00               (918.00)
FBO Ramp Parking Fees                       71.25            135.42             (64.17)                  511.10              947.94              (436.84)
Gulf Atl Off&Maint Hangar Rent          1,930.17           1,612.50             317.67               13,511.19           11,287.50               2,223.69
Federal Express Facility Rent             226.80             226.75                0.05                1,587.60           1,587.25                    0.35
Access Badge Fees                         125.00                0.00            125.00                   365.00                 0.00               365.00
Ground Transportation                     410.00             275.83             134.17                 2,906.59           1,930.81                 975.78
Industrial Park Rent                      569.53             569.50                0.03                3,986.71           3,986.50                    0.21
Air Carrier Landing Fees              28,426.08          21,230.67            7,195.41              158,165.55         148,614.69                9,550.86
Pay Phone Commissions                        0.00              40.42            (40.42)                  379.18              282.94                  96.24
Rental Car Exclusive Rent               7,147.89           7,147.92              (0.03)              50,035.23           50,035.44                  (0.21)
Rental Car Non-Exclusive Rent         40,296.67          40,141.58              155.09              282,376.69         280,991.06                1,385.63
Restaurant/Lounge/Gift Shop             4,726.91           1,758.83           2,968.08               30,091.88           12,311.81             17,780.07
FAA Airways Facility Rent               1,848.75           1,848.75                0.00              12,941.25           12,941.25                    0.00
FAA Auto Flight Serv Sta Rent           4,633.33           4,633.33                0.00              32,433.31           32,433.31                    0.00
Rental Car Excess Rent                22,549.72            6,164.67         16,385.05                99,953.66           43,152.69             56,800.97
GA T-Hangar Rent                        8,647.15           9,057.08           (409.93)               62,970.81           63,399.56               (428.75)
GA Sunshade Rent                          973.05           1,117.50           (144.45)                 7,189.05           7,822.50               (633.45)
Joint Av. Unit Hangar Rent                620.00             620.00                0.00                4,340.00           4,340.00                    0.00
Bi-Fold Hangar Rent                     1,000.00           1,000.00                0.00                7,000.00           7,000.00                    0.00
Gator Av. Hangar & Off. Rent            3,023.92           3,023.92                0.00              21,167.44           21,167.44                    0.00
Rental Car Overflow Parking               332.00             408.25             (76.25)                2,620.00           2,857.75               (237.75)
Rental Car Int. Lot Rental                   0.00            600.00           (600.00)                       0.00         4,200.00             (4,200.00)
Other Income                                40.92            252.08           (211.16)                 2,088.03           1,764.56                 323.47
Other Income - Gen Av                        5.96               0.00               5.96                    33.98                0.00                 33.98
Other Income - Lounge                        0.00              93.75            (93.75)                  410.00              656.25              (246.25)
Interest Income                              0.00            123.33           (123.33)                   867.63              863.31                   4.32
Industrial Park Land Sales                   0.00          3,112.50        (3,112.50)                38,594.34           21,787.50             16,806.84
Misc. Non-Operating Income                   0.00               0.00               0.00                  264.50                 0.00               264.50
Sale of Surplus Equipment                    0.00            625.00           (625.00)                 3,615.00           4,375.00               (760.00)
ATM Concession Revenue                       0.00            108.33           (108.33)                   649.98              758.31              (108.33)
FHP Sales                                    0.00               0.00               0.00                    33.25                0.00                 33.25
Terminal Passenger Charge                 600.00             250.00             350.00                 2,700.00           1,750.00                 950.00
Terminal Ramp Charge                         0.00               0.00               0.00                  300.00                 0.00               300.00
Banner Towing Fees                           0.00               0.00               0.00                  125.00                 0.00               125.00
FedEx Facility Cost Recovery                 0.00               0.00               0.00                2,016.73                 0.00             2,016.73
Vending Machine Revenue                 1,780.37           1,037.50             742.87                 8,105.12           7,262.50                 842.62
GA Ground Support Equip Renta               45.00            266.67           (221.67)                 4,126.58           1,866.69               2,259.89
Gen Av Tiedowns Revenue                   322.00             202.08             119.92                 1,690.04           1,414.56                 275.48
Gen Av Port-O-Port Rent                   630.28             834.00           (203.72)                 5,634.28           5,838.00               (203.72)
Fuel Storage Facility Fees            14,983.63            7,916.67           7,066.96               79,459.35           55,416.69             24,042.66
GSE & Vehicle Fuel Sales                  908.81             416.67             492.14                 4,112.25           2,916.69               1,195.56
Gen Av Storage Fees                       395.00               95.00            300.00                   965.00              665.00                300.00
                                 ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Operating Revenue             321,281.34 263,829.25                   57,452.09            2,078,762.26 1,846,804.75                   231,957.51
                                                                                                                                                          Agenda Page 22
                                                      Gainesville Regional Airport
                                        Actual vs. Budget Statement of Operations
                                        For the Seven Months Ending April 30, 2005
                                                           Page 2
         NOTE: These are preliminary unaudited statements. Certain accruals and adjustements may have been omitted.


                                             Current            Current         Variance                   Y-T-D                Y-T-D             Variance
                                             Actual             Budget         Over/(Under)                Actual               Budget           Over/(Under)

Expenses: (before Depreciation)
Administration Expenses:
Payroll                            38,243.89          38,686.02            (442.13)              267,738.30         270,802.14             (3,063.84)
Payroll Related                    10,280.42            8,609.63           1,670.79               72,638.40           60,267.41             12,370.99
Department Expenses                38,299.38          44,930.86         (6,631.48)               256,844.57         314,516.02            (57,671.45)
Contigency                                0.00            577.92           (577.92)                       0.00         4,045.44            (4,045.44)
                              ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Adminstration Expenses       86,823.69          92,804.43         (5,980.74)               597,221.27         649,631.01            (52,409.74)

Airport Operation Expenses:
Payroll                                 3,682.00           4,763.51        (1,081.51)                29,930.06           33,344.57            (3,414.51)
Payroll Related                         1,734.44           1,895.98           (161.54)               14,206.90           13,271.86                 935.04
Department Expenses                   59,340.26          64,263.34         (4,923.08)               425,055.90         449,843.38            (24,787.48)
                                 ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Airport Operation Expenses      64,756.70          70,922.83         (6,166.13)               469,192.86         496,459.81            (27,266.95)

Airport Lounge Operating Expenses:
Payroll                               1,978.97           1,146.71             832.26               14,703.43            8,026.97               6,676.46
Payroll Related                         528.70             284.19             244.51                 4,371.68           1,989.33               2,382.35
Department Expenses                   2,283.37           1,008.41           1,274.96               12,624.81            7,058.87               5,565.94
                               ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Lounge Operating Expense        4,791.04           2,439.31           2,351.73               31,699.92           17,075.17             14,624.75

Commercial Parking Lot:
Payroll                                         8,797.04           9,281.49           (484.45)               72,474.50           64,970.43               7,504.07
Payroll Related                                 3,140.21           2,860.53             279.68               20,259.98           20,023.71                 236.27
Department Expenses                               280.46           1,812.50        (1,532.04)                15,621.41           12,687.50               2,933.91
                                         ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Parking Lot Expenses                    12,217.71          13,954.52         (1,736.81)               108,355.89           97,681.64             10,674.25

Facilities and Maintenance:
Payroll                                25,198.81          31,789.37         (6,590.56)               201,104.87         222,525.59            (21,420.72)
Payroll Related                          8,189.79           9,257.12        (1,067.33)                61,618.36           64,799.84            (3,181.48)
Department Expenses                    23,203.26          24,480.86         (1,277.60)               169,062.04         171,366.02             (2,303.98)
                                  ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Facilities and Maint. Expens 56,591.86              65,527.35         (8,935.49)               431,785.27         458,691.45            (26,906.18)

FAA Facilities Operating Expenses:
Payroll                                1,578.07           1,757.81           (179.74)               12,863.80           12,304.67                 559.13
Payroll Related                          543.62             575.25             (31.63)                3,836.35           4,026.75               (190.40)
Department Expenses                    5,260.45           5,866.25           (605.80)               37,163.88           41,063.75            (3,899.87)
                                ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total FAA Facilities Expenses          7,382.14           8,199.31           (817.17)               53,864.03           57,395.17            (3,531.14)

General Aviation Operating Expenses:
Department Expenses                     2,702.62           5,905.33        (3,202.71)                22,961.29           41,337.31           (18,376.02)
                                 ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total General Aviation Operation        2,702.62           5,905.33        (3,202.71)                22,961.29           41,337.31           (18,376.02)

Fuel Farm Operating Expenses:
Department Expenses                   3,705.56           3,305.68             399.88               15,825.19           23,139.76            (7,314.57)
                               ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Fuel Farm Operating Expen       3,705.56           3,305.68             399.88               15,825.19           23,139.76            (7,314.57)

Total Expenses                   238,971.32 263,058.76 (24,087.44)                            1,730,905.72 1,841,411.32                 (110,505.60)
                              ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Income/(Loss) Before Deprecia      82,310.02              770.49         81,539.53               347,856.54            5,393.43           342,463.11
                              ========== ========== ============ ============ =========== ============
                                                                                                                                                        Agenda Page 23
                                                    Gainesville Regional Airport
                                       Actual vs. Budget Statement of Operations
                                       For the Seven Months Ending April 30, 2005
                                                          Page 3
        NOTE: These are preliminary unaudited statements. Certain accruals and adjustements may have been omitted.


                                           Current            Current         Variance                   Y-T-D                Y-T-D             Variance
                                           Actual             Budget         Over/(Under)                Actual               Budget           Over/(Under)


Non-Operating Revenues

Grant Revenues
FAA Grant AIP 19                                   0.00               0.00               0.00              15,158.00                  0.00           15,158.00
FAA Grant AIP 20                                   0.00               0.00               0.00             599,174.00                  0.00         599,174.00
FDOT JPA #21675919401                              0.00               0.00               0.00             163,038.94                  0.00         163,038.94
FAA Grant AIP 21                          188,310.00                  0.00 188,310.00                  2,302,236.00                   0.00       2,302,236.00
FAA #69001104 ASD                                  0.00               0.00               0.00              17,749.85                  0.00           17,749.85
                                       ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Grant Revenue                       188,310.00                  0.00 188,310.00                  3,097,356.79                   0.00       3,097,356.79

Passenger Facility Charges       70,293.87                 0.00        70,293.87               385,509.76                  0.00         385,509.76
                            ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Non-Operating Revenue    258,603.87                  0.00 258,603.87                  3,482,866.55                   0.00       3,482,866.55
                            ========== ========== ============ ============ =========== ============

Non-Operating Expenditures (YTD Figures include all prior years purchases before depreciation)

Construction in Progress        366,895.65                  0.00 366,895.65                12,076,556.79                    0.00 12,076,556.79
Fixed Asset Purchases               4,372.50                0.00          4,372.50         35,851,431.40                    0.00 35,851,431.40
Note Principle Repayment            3,980.79                0.00          3,980.79               27,418.78                  0.00           27,418.78
                             ------------------ ------------------ --------------------- --------------------- ------------------- ---------------------
Total Non-Operating Expenditu 375,248.94                    0.00 375,248.94                47,955,406.97                    0.00 47,955,406.97
                             ========== ========== ============ ============ =========== ============
                                                                                                  Agenda Page 24




AIRPORT BUSINESS



        3. Facilities and Planning Committee Report

        ___________________                     ____________________________________

        The Facilities and Planning Committee met on May 5, 2005.

                    CFC Implementation Report / Recommendation
                    (Tabled at the April 21, 2005 Board meeting)

                    Leibowitz & Horton Task Order for CFC Implementation –
                    Resolution 05-015
                    (Tabled at the April 21, 2005 Board meeting)

                    Airport Maintenance Equipment Building Recommendation


        Recommendation: Listen to the report and give any applicable comment.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 25




                                               DRAFT

      GAINESVILLE-ALACHUA COUNTY REGIONAL AIRPORT AUTHORITY
            FACILITIES AND PLANNING COMMITTEE MEETING
                             Meeting Highlights
                      Thursday, May 5, 2005, 3:00 p.m.
                       Airline Terminal – Restaurant


Call to Order by the Chair
Vice-chair Kinnon Thomas called the meeting to order at 3:40 p.m.

Facilities & Planning Committee Members Present: C.B. Daniel and Kinnon Thomas were
present at 3:00 p.m. Marilyn Tubb joined the group during the tour of the Passenger Boarding
Bridges and Phase I Renovation. Jon Morris was excused.

GACRAA Chair Jim Stringfellow was present.

Determination of a Quorum: As of 3:15 p.m. a quorum was not present. Since it was known
that Mrs. Tubb was on her way to the airport to attend the meeting, it was decided that the
committee members would begin with the second agenda item, a Tour of the Terminal
Renovation. Mrs. Tubb joined the tour in progress and the meeting commenced at 3:40 p.m., at
the conclusion of the tour with a quorum present.

Tour of Terminal Renovation – Phase I
Mr. Allan Penksa, Director of Facilities and Maintenance, led a tour of the Terminal Renovation
areas which included the passenger boarding bridges and boarding vestibules. Also, at the old
Business Center committee members viewed the preparation work in progress for the location of
a new food and beverage concession.

Approval of the Highlights of the April 7, 2005 Meeting
Mr. Daniel moved approval of the highlights of the April 7, 2005 meeting.                   Mrs. Tubb
seconded the motion. The motion passed.

Airport Maintenance Equipment Facility
Mr. Penksa distributed copies of the “Conceptual Study Final Report on the Maintenance
Equipment Building”. The report was prepared by Reynolds, Smith & Hills, Inc.

Mr. Penksa reported that the current maintenance equipment storage facility consists of open,
run-down sheds which are not adequate for protecting the airport’s equipment. The site is in the
path of the proposed airport access road from Waldo Road.

Mr. Penksa reported that the Board previously accepted an FDOT JPA grant in the amount of
$75,000 to fund 50% of the conceptual design work for a maintenance equipment facility.

Mr. Penksa reviewed the details of the conceptual design report which included floor plans,
architectural elevation designs, suggested site locations and estimated construction costs. He

________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 26




indicated that the estimated total project cost is $2.1 million, and stated that another cost estimate
will be generated during the design process. The estimated project cost included substantial
amounts of road construction to access the facility, and further design may well yield a lower
project cost estimate.

A lengthy discussion followed with committee members asking for more details on site
development, the proposed building and its access road, project costs and financing.

Mrs. Tubb moved to recommend to the Board that it proceed and authorize a design for the
project. Mr. Daniel seconded the motion. Motion passed 3-0.

Adjournment
As there was no further business to consider, Vice-chair Thomas adjourned the meeting at 4:10
p.m.

FACILITIES AND PLANNING COMMITTEE


__________________________              _____________
Chair                                   Date




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 27




                                    RESOLUTION NO. 05-015
                                    EFFECTIVE MAY 19, 2005


RESOLUTION AUTHORIZING EXECUTION OF TASK ORDER #2 WITH
LEIBOWITZ AND HORTON AIRPORT MANAGEMENT CONSULTANTS, INC. FOR
FINANCIAL   CONSULTING    SERVICES    ASSOCIATED   WITH    THE
IMPLEMENTATION OF A CUSTOMER FACILITY CHARGE (CFC) ASSOCIATED
WITH RENTAL CAR TRANSACTIONS AT GAINESVILLE REGIONAL AIRPORT

       WHEREAS, the Gainesville - Alachua County Regional Airport Authority has
previously executed an Agreement for General Airport Financial Consulting Services with
Leibowitz and Horton Airport Management Consultants, Inc., which provides for financial
consulting services associated with evaluation and use of a Customer Facility Charge program;
and

      WHEREAS, performance of professional financial services are required to implement a
Customer Facility Charge program on rental car transactions at Gainesville Regional Airport;
and

        WHEREAS, the total cost of these services, estimated to be no more than $34,065 is
anticipated to be funded through collection of Customer Facility Charges; and

        WHEREAS, collection of CFC funds is anticipated to be used for improvement and
relocation of rental car service facilities, access roadway and utility infrastructure, thus reducing
demand on other funding streams currently being utilized for airfield and general aviation
improvements;


        NOW, THEREFORE,

     BE IT RESOLVED BY THE GAINESVILLE-ALACHUA COUNTY REGIONAL
AIRPORT AUTHORITY, as follows:

        Section 1. That the Gainesville-Alachua County Regional Airport Authority shall
execute Task Order #2 with Leibowitz and Horton Airport Management Consultants, Inc. for
financial consulting services associated with implementation of a CFC on rental car transactions
at Gainesville Regional Airport.

        Section 2. That Richard Crider, Chief Executive Officer, is hereby authorized and
directed to execute Task Order # 2 with Leibowitz and Horton Airport Management Consultants,

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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 28




Inc., on behalf of the Gainesville-Alachua County Regional Airport Authority, contingent on
legal counsel review, and carry out the implementation of services.

        EFFECTIVE this 19th day of May, 2005.

                                                GAINESVILLE-ALACHUA COUNTY
                                                REGIONAL AIRPORT AUTHORITY



                                                _______________________
                                                James L. Stringfellow, Sr.
                                                Chair



                                                ATTEST:



                                                ________________________
                                                T. James Gallagher
                                                Secretary / Treasurer



                                                APPROVED AS TO FORM AND LEGALITY



                                                BY: _____________________
                                                Donald W. Stanley, Jr.
                                                Attorney for the Authority




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 29




                                        TASK ORDER No. 2

This Task Order No. 2 is an amendment to and made a part of the Agreement dated October 1,
2004 between the Gainesville-Alachua County Regional Airport Authority (Owner) and
Leibowitz & Horton Airport Management Consultants, Inc. (Consultant). This Task Order No. 2
includes the scope of services, costs, and schedule for implementation of a Customer Facility
Charge (CFC) to be used for construction of improvements at Gainesville Regional Airport
(Airport).

A.      SCOPE OF SERVICES

        1.) Revise preliminary CFC funding potential to provide an updated estimate of the CFC
            proceeds available to the Airport, determine if other funding is available for the
            landside roadway and rental car improvements, and develop a financial estimate of
            desired improvement projects, so that a determination can be made whether a CFC is
            capable of funding all capital costs.

        2.) Develop a schedule for completing the CFC implementation, and any rental car
            service center agreement amendment, to include the following key meetings:

           •    Meeting/discussions with Airport management and Airport legal counsel to
                develop a strategy for implementing the CFC program and issuing debt for the
                construction of improvements. Discussion of the project description and capital
                cost estimates provided by the Airport’s planning consultant.

           •    Public meeting with the community and the rental car companies to present a
                financial plan that includes funding for proposed improvements.

           •    Hold the first rental car industry meeting, during the same trip as the public
                meeting described above if appropriate, to review the first draft of required
                changes to the concession agreement necessary to build any new facilities.

           •    Airport Authority meeting to authorize the initial CFC collection start date and
                amount, and approval of a capital improvement budget.

           •    A second rental car agreement drafting meeting, to review the updated financial
                plan with the Airport and the rental car industry, subsequent review, and
                distribution of updated information to rental car companies, with selected CFC
                project descriptions, costs and funding stream identification.

        3.) Determine local legal requirements through discussions with Airport management,
            the Airport's legal counsel and others to discuss various strategies related to the
            implementation of a CFC.


        4.) Develop a revised financial plan for the CFC projects after project costs are

________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 30




            determined and a philosophy is adopted - “pay as you go” versus debt repayment.

        5.) Prepare and coordinate all local legal requirements by drafting the necessary local
            legal ordinances, resolutions and/or policies. Consultant will attend and make
            presentations as needed at public hearings and Authority meetings.

        6.) Coordinate and consult with the rental car companies by preparing information
            informing the car rental companies of the Airport's project budget and the date of
            implementation of the CFC program. Consultant will also assist the Airport in
            meeting with the rental car companies to provide the project description, explain the
            project's need, and to present the financial plan along with changes required to their
            lease agreements.

        7.) Prepare presentations for Public/Authority and rental car industry meetings as
            required.

        8.) Deliver the following items:

           •    Schedule for completing the CFC implementation

           •    Updated CFC financial plan for capital improvements

           •    Draft of local CFC ordinance/resolutions as required

           •    Draft of notice to the rental car companies of the Airport's requirement to collect
                the CFC and draft lease amendment language, with any necessary revisions

B.      TIME OF PERFORMANCE

        All tasks will be completed within 300 days of a fully-executed Task Order No. 2.

C.      PAYMENT

        The fee for professional services under this Task Order No. 2 is the lump sum amount of
        Twenty-Seven Thousand, Three Hundred dollars ($27,300), plus actual Out of Pocket
        expenses not to exceed Six Thousand, Seven Hundred Sixty-Five dollars ($6,765).

D.      EFFECTIVE DATE

        This Task Order No. 2 is effective as of May 19th, 2005.

E.      ORIGINAL AGREEMENT

        All Terms and Conditions of the Agreement dated October 1, 2004 shall remain the same
        and shall apply hereto.



________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 31




F.      ACCEPTANCE

        By signature, the parties hereto accept the provisions of this Task Order No. 2.


CONSULTANT:                                             OWNER:

LEIBOWITZ & HORTON AIRPORT                              GAINESVILLE-ALACHUA COUNTY
MANAGEMENT CONSULTANTS, INC.                            REGIONAL AIRPORT AUTHORITY


By:                                                     By:
Printed Name: Lynn Leibowitz                            Printed Name: Richard Crider
Title: President                                        Title: Chief Executive Officer

Date:                           , 2005                  Date:                           , 2005




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 32




AIRPORT BUSINESS



        4. Ad Hoc Personnel Committee Report

        ___________________                     ____________________________________

        The Ad Hoc Personnel Committee met on April 28, 2005.

                    CEO Annual Performance Review and Contract Amendment –
                    Resolution 05-022 - Page 42

                    Adoption of 2005 Personnel Goals and Objectives - Page 46

        Recommendation: Listen to the report and give any applicable comment.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 33




                                               DRAFT

       GAINESVILLE-ALACHUA COUNTY REGIONAL AIRPORT AUTHORITY
                    AD HOC PERSONNEL COMMITTEE
                             Meeting Highlights
                     Thursday, April 28, 2005 - 1:00 p.m.
                       Airline Terminal - Restaurant


Call to Order by the Chair
Mr. Daniel called the meeting to order at 1:20 p.m.

Committee Members Present C.B. Daniel, Joe Dunlap, and Jim Gallagher were present. Ms.
Marilyn Tubb arrived at 1:29 p.m.

Other Attendees GACRAA Chair Jim Stringfellow participated in an ex-officio role.

Approval of Highlights of the April 19, 2005 Ad Hoc Personnel Committee Meeting
Dr. Gallagher moved to approve the highlights of the April 19, 2005 Ad Hoc Personnel
Committee meeting. Mr. Dunlap seconded the motion. Motion passed.

CEO / GACRAA Goals and Objectives and Bonus Formula for 2005 and Use in Annual
CEO Evaluation
Mr. Daniel initiated a discussion regarding the Proposed 2005 Goals and Objectives which were
updated based on the April 19th committee meeting comments and distributed to the committee
on April 25, 2005 (see Attachment A).

At the April 19, 2005 meeting, the committee agreed to score the Objectives within each Goal
category.

A lengthy discussion followed regarding whether to score the CEO’s performance on the
proposed Objectives or on the Specific Examples listed for the Objectives. Most of the Specific
Examples are measurable whereas the Objectives could be scored in a subjective manner. It was
the consensus of the committee that evaluating the Specific Examples would provide a way to
score the corresponding Objectives.

Mr. Stringfellow encouraged the committee to set flexible Specific Examples due the dynamic
nature of the aviation business and the financial situations of Delta Air Lines and US Airways.

Dr. Gallagher stated that he was somewhat opposed to the subjectivity inherent in scoring the
Objectives, such as, “Improved Financial Management” as each person measuring the CEO’s
performance may have a different expectation. He preferred scoring the Specific Examples
which are measurable and objective; he cautioned that some Specific Examples are subject to
external forces.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 34




(Note: The “Specific Examples” were renamed “Examples that Demonstrate Achievement of
Objective” and are intended to facilitate scoring the Objectives contained in a draft updated on
April 28, 2005 based on comments from this meeting.)

The committee discussed the merits of the two Bonus Formula Options illustrated on page 4 of
the Proposed 2005 Personnel Goals worksheet.

Mr. Dunlap moved to recommend adoption of “Option 1” as the method for calculating the
CEO’s bonus. Ms. Tubb seconded the motion. Motion passed.

Mr. Dunlap suggested including a Specific Example for meeting the budget.

A discussion followed regarding the merits of adding budget management as a Specific Example
for the “Improved Financial Management” Objective.

Dr. Gallagher stated that evaluating budget management tends to be artificial since the CEO has
little influence over airport revenue which is heavily influenced by the performance of the
airlines and rental car companies. However, he stated that the CEO should be held responsible
for managing expenses.

Ms. Tubb moved to add a Specific Example, “Manages Budget Appropriately throughout the
Year” for the “Improved Financial Management” Objective. Mr. Dunlap seconded the
motion. Motion passed 3-1 with Dr. Gallagher dissenting.

Ms. Tubb suggested editing the Specific Examples and Objectives utilizing parallel construction
for consistency in writing style.

Ms. Tubb moved to recommend that the Board adopt the Proposed 2005 Personnel Goals as
amended. Dr. Gallagher seconded the motion. Motion passed.

Dr. Gallagher proposed setting dates to implement the evaluation process in 2006.

Mr. Daniel referred to Mr. Stringfellow’s February 1, 2005 letter in which he proposed a
schedule of Personnel Committee actions:
           Late January – Request salary survey
           Early February – CEO evaluation form is mailed to all Board members; evaluation
           forms are tabulated by Purvis Gray and Company; results are provided to the Chair of
           the Ad Hoc Personnel Committee
           February – Ad Hoc Personnel Committee meets to analyze the evaluation and
           recommend CEO salary adjustment; committee drafts goals for the following year
           Late February – Self-evaluation forms are mailed to Board members

Dr. Gallagher moved implement the proposed schedule as part of a personnel policy and
procedure. Ms. Tubb seconded the motion. Motion passed.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 35




Mr. Dunlap moved to amend the motion to include as the first item in the schedule a letter to
the Board from the CEO listing his accomplishments for the year. Ms. Tubb seconded the
motion. Motion passed.

The committee agreed to present its recommendations regarding the following items to the Board
at its May meeting:
           CEO salary for 2005
           Amendment to CEO’s Employment Contract
           Proposed 2005 Personnel Goals

Mr. Crider distributed a draft of Amendment # 1 to the Amended Employment Contract. He
stated that the changes pertain only to section 3.A of the contract. He stated that the base salary
amount and bonus plan were changed in accordance with the committee’s recommendations:

            Base Salary     Base Salary changed from $112,000 to $130,000 per year.
            Bonus           Bonus of 10% of the increase in economic performance changed to
                            bonus of up to 15% of base salary determined by the Board based on
                            the bonus formula and the accomplishment of 2005 Personnel Goals
                            as approved by the Board.

Ms. Tubb moved to recommend approval of Amendment # 1 to the Amended Employment
Contract. Dr. Gallagher seconded the motion.

A lengthy discussion followed regarding the proposed salary amount and the wording of the
bonus provision.

The committee voted on Ms. Tubb’s motion. Motion passed.

Ms. Tubb expressed a concern that the CEO’s salary not be raised too far out of line with the rest
of the management team. She recommended that the CEO conduct a salary survey for senior
staff positions to ensure that staff is comparably compensated.

Mr. Daniel and Mr. Dunlap agreed with Ms. Tubb’s recommendation.

Intern
Mr. Crider reported that Ms. Elaine Funk has been working part-time since the beginning of the
year and plans to retire at the end of June of 2005. He recommended hiring a student intern on a
part-time basis to assist with public relations activities and a variety of other administrative tasks
at the rate of $9.00 per hour through the summer.

Mr. Dunlap moved to approve the recommendation to hire a part-time intern. Ms. Tubb
seconded the motion. Motion passed.

GACRAA Board Member Self-Assessment
Mr. Crider distributed copies of the proposed GACRAA Board Member Self-Assessment.



________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 36




Dr. Gallagher stated that he was in favor of the proposed draft and suggested asking Board
members to complete the surveys and having staff or the committee tabulate the results prior to
the May 21st Strategic Planning Session.

The committee discussed the merits of having the survey results prior to the May 21st meeting
versus the limited amount of time available to complete and tabulate the results.

Mr. Crider stated that the goal of the Strategic Planning Session is to set strategic goals which
will be congruent with the 20-year Airport Master Plan vision and to determine if the 2005
Personnel Goals are consistent with the strategic goals.

It was the consensus of the committee to make its recommendation regarding the use of the
Board Member Self-Assessment to the Board at its June meeting.

Mr. Daniel asked the committee members to review the draft of the Board Member Self-
Assessment and to provide comments.

Adjournment
As there was no further business, Mr. Daniel adjourned the meeting at 2:40 p.m.

AD HOC PERSONNEL COMMITTEE


_____________________________                           _________________
Chair                                                   Date



Attachment A



Adobe Acrobat 7.0
   Document




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                          Agenda Page 37




Memorandum
To:    Personnel Committee
From: C.B. Daniel
Date: April 25, 2005
Re:    Updated Personnel Goals for 2005



At last week’s Personnel Committee held on April 19 we discussed several improvements to the
proposed personnel goals for 2005, as well as the formula for computing a bonus. Staff has
made the changes we described, and added two options for a Bonus Formula shown on the last
page of the attached spreadsheet.

Please review the revised goals and the two bonus formula options in preparation for our next
meeting on Thursday, April 28 at 1:00 pm. As a reminder, we will have a box lunch for you if
you want to plan on taking a late lunch that day. I look forward to hearing your comments on the
bonus formula, and to wrapping up this recommendation for the full Board to consider at our
next meeting.
                                                                                                                                               Agenda Page 38

                                               Proposed 2005 Personnel Goals
                                    Gainesville-Alachua County Regional Airport Authority
                                         For the period from February 18, 2005 to February 17, 2006


Relative                                        Goal                                                 Score by
Weight     Goals                                Score    Objectives                                  Objective     Specific Examples
  35%      Fiscal and Operational Leadership     5.00    Improved Financial Management                   5       * Completed the fiscal year 2003 Audit by May 1,
                                                                                                                   2005
                                                                                                                 * Completed the fiscal year 2004 Audit by August
                                                                                                                   1, 2005
                                                         Reorganization of Accounting Department         5       * Hired and trained a new Business Manager /
                                                                                                                   Chief Financial Officer by the end of June 2005
                                                         Succession Planning                             5       * Developed a CEO Succession plan for GACRAA
                                                                                                                   consideration, and presented it to the Board by
                                                                                                                   the end of July 2005
                                                         Codification of State of Florida Enabling       5       * Worked with legal counsel, elected officials,
                                                         Legislation                                               State delegation and Authority Board to propose
                                                                                                                   codification language, that includes advocacy of
                                                                                                                   a four-year term for GACRAA Board members,
                                                                                                                   and presented it to the Board by the end of
                                                                                                                   August 2005

                                                         Promotion of High Employee and Tenant           5       * Planned, at a minimum, semi-annual employee
                                                         Morale                                                    events to brief airport staff on development and
                                                                                                                   changes at the Airport
                                                                                                                 * Planned, at a minimum, semi-annual team-
                                                                                                                   building sessions/events for senior staff
                                                                                                                   involvement
                                                                                                                 * Filled hourly employee vacancies within 60 days

                                                                                                                 * Systematically conducted salary surveys with
                                                                                                                   peer organizations and made appropriate
                                                                                                                   adjustments to keep positions competitive and
                                                                                                                   attractive for employee retention

  20%      External Relationship                 5.00    Airport Advocacy                                5       * Scheduled at least 2 community presentations
           Development                                                                                             per month for the Speaker's Bureau to make to
                                                                                                                   regional elected boards and civic groups
                                                                                                                 * Maintained positive relationships with the local
                                                                                                                   media


                                                                         Page 1 of 4                                                            April 25, 2005
                                                                                                                                            Agenda Page 39

                                             Proposed 2005 Personnel Goals
                                   Gainesville-Alachua County Regional Airport Authority
                                         For the period from February 18, 2005 to February 17, 2006


Relative                                       Goal                                               Score by
Weight     Goals                               Score     Objectives                               Objective     Specific Examples
                                                                                                              * Hired and trained a new Public Relations
                                                                                                                employee by the end of September 2005
                                                                                                              * Developed a customer service plan by the end of
                                                                                                                December 2005
                                                         Strengthen Aviation Relationships with       5       * Pursued funding for an aviation education center
                                                         University of Florida and Santa Fe                     through application for a fiscal year 2006 grant,
                                                         Community College                                      to be used for flight training, research and
                                                                                                                development, and graduate studies, by the end
                                                                                                                of July 2005

                                                         Strengthen relationships with Airport        5       * Planned, at a minimum, semi-annual events for
                                                         Tenants and Users                                      tenants and volunteer organizations such as the
                                                                                                                Civil Air Patrol to build airport community
  25%      Long-Term Planning and Facility      5.00     Master Planning                              5       * Worked with local governmental agencies,
           Development                                                                                          members of the public and consultant to
                                                                                                                complete the Airport Master Plan Update by
                                                                                                                December of 2005

                                                                                                              * Worked with elected leaders, County staff,
                                                                                                                FDOT and the FAA to acquire County
                                                                                                                Fairgrounds, to be used for airport business park
                                                                                                                and entrance boulevard development

                                                                                                              * Worked with elected leaders, City staff and legal
                                                                                                                counsel to transfer airport lands to Authority
                                                                                                                ownership
                                                         Implementation of Capital Improvements       5       * Worked in conjunction with federal lobbyist to
                                                                                                                advocate adequate funding for projects,
                                                                                                                consistent with the Capital Improvement Plan
                                                                                                                (CIP), and sequence projects for a timely
                                                                                                                completion without litigation or dispute

                                                                                                              * Completed Runway 11-29 visual guidance
                                                                                                                system improvements by the end of August 2005




                                                                        Page 2 of 4                                                         April 25, 2005
                                                                                                                                Agenda Page 40

                                        Proposed 2005 Personnel Goals
                                  Gainesville-Alachua County Regional Airport Authority
                                    For the period from February 18, 2005 to February 17, 2006


Relative                                  Goal                                     Score by
Weight     Goals                          Score     Objectives                     Objective       Specific Examples
                                                                                                 * Completed Terminal Renovation - Phase 1 by
                                                                                                   the end of July 2005
                                                                                                 * Initiated construction design of the Eclipse
                                                                                                   Aviation facilities by the end of August 2005
                                                                                                 * Began construction of new T-Hangars by the
                                                                                                   end of December 2005
                                                    Infrastructure Development         5         * Developed a feasible solution for the
                                                                                                   construction of a consolidated service facility for
                                                                                                   rental car companies at the Airport, and
                                                                                                   presented the solution to the Board for
                                                                                                   consideration by the end of May 2005

                                                                                                 * Pursued federal funding for access road
                                                                                                   improvements by the end of July 2005, and
                                                                                                   began development if funds were secured
  20%      Business Development            5.00     Air Service Development            5         * Advocated Delta Connection turbo-prop
                                                                                                   replacement with regional jet aircraft through
                                                                                                   conversation with Delta by the end of July 2005
                                                                                                 * Pursued new routes on existing air carriers to
                                                                                                   the New York and Fort Lauderdale markets
                                                    General Aviation Development       5         * Renovated and placed a new tenant in the old
                                                                                                   Gulf Atlantic facility, that complements the
                                                                                                   existing business mix at the airport and
                                                                                                   enhances competition, by the end of July 2005

                                                                                                 * Pursued federal funding for Joint Aviation Unit
                                                                                                   facility renovation by the end of July 2005, and
                                                                                                   began development if funds were secured
                                                    Cargo Development                  5         * Continued dialogue with cargo operators to build
                                                                                                   support for development of a multi-tenant cargo
                                                                                                   building

  100%




                                                                  Page 3 of 4                                                    April 25, 2005
                                                                                                                                                      Agenda Page 41

                                                        Proposed 2005 Personnel Goals
                                            Gainesville-Alachua County Regional Airport Authority
                                                    For the period from February 18, 2005 to February 17, 2006



                                                                          Summary

 Relative                                                 Goal
 Weight           Goals                                   Score     Weighted Score by Goal
    35%           Fiscal and Operational Leadership        5.00                 1.75



    20%           External Relationship Development        5.00                   1



    25%           Long-Term Planning and Facility          5.00                 1.25
                  Development


    20%           Business Development                     5.00                   1




    100%          Weighted Score                                                5.00




                                                                       Bonus Formula
                              Option 1                                                                                         Option 2

For Weighted Score less than 3.50                            0                                  Percentage of Bonus Achieved is computed only if the Weighted Score is
For Weighted Score Between 3.50 and 3.99                   50%                                  3.5 or higher, by dividing the difference between the Weighted Score and
                                                                                                3.5 by 1.5 and adding that percentage to 50%.
For Weighted Score Between 4.00 and 4.49                   75%
For Weighted Score of 4.50 or above                        100%

Bonus Achieved:                                            100%                                 Bonus Achieved:                                100%



                                                                             Page 4 of 4                                                              April 25, 2005
                                                                                                  Agenda Page 42




                                    RESOLUTION NO. 05-022
                                    EFFECTIVE MAY 19, 2005


    RESOLUTION AUTHORIZING EXECUTION OF AMENDED EMPLOYMENT
    CONTRACT – AMENDMENT #1 WITH RICHARD CRIDER

       WHEREAS, On March 5, 2004, The Gainesville - Alachua County Regional Airport
Authority (GACRAA) executed an Amended Employment Contract with its Chief Executive
Officer (CEO) Richard Crider (CRIDER) for a period of five (5) years ending February 18,
2009; and

     WHEREAS, The Amended Employment Contract requires GACRAA to evaluate
CRIDER annually; and

       WHEREAS, The Ad Hoc Personnel Committee evaluated CRIDER’S performance and
accomplishments for the year 2004, reviewed a compensation survey conducted by Wings
Aviation Resources and now recommends a raise in annual base salary from one hundred
twelve thousand dollars ($112,000) to one hundred thirty thousand ($130,000) effective February
18, 2005; and

       WHEREAS, The Ad Hoc Personnel Committee determined that a bonus payment based
on the airport’s financial performance is impractical and recommends that CRIDER may receive
a bonus not to exceed fifteen percent (15%) of his annual base salary as determined by the
GACRAA Board and the bonus shall be based on the accomplishment of annual Goals and the
Bonus Formula, as approved by the GACRAA Board.

        WHEREAS, The Amended Employment Contract requires any adjustment in base salary
made during the life of the contract to be in the form of an amendment that shall become a part
of the contract;

        NOW, THEREFORE,

     BE IT RESOLVED BY THE GAINESVILLE-ALACHUA COUNTY REGIONAL
AIRPORT AUTHORITY, as follows:

        Section 1. That the Gainesville-Alachua County Regional Airport Authority shall enter
into Amended Employment Contract – Amendment # 1 to revising paragraph 3.A with an
effective date of February 18, 2005.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 43




        Section 2. That James L. Stringfellow, Sr., Chair, is hereby authorized and directed to
fully execute Amended Employment Contract – Amendment # 1 on behalf of the Gainesville-
Alachua County Regional Airport Authority.

        EFFECTIVE this 19th day of May 2005.




                                                GAINESVILLE-ALACHUA COUNTY
                                                REGIONAL AIRPORT AUTHORITY



                                                _______________________
                                                James L. Stringfellow, Sr.
                                                Chair



                                                ATTEST:



                                                ________________________
                                                T. James Gallagher
                                                Secretary / Treasurer



                                                APPROVED AS TO FORM AND LEGALITY



                                                BY: _____________________
                                                Donald W. Stanley, Jr.
                                                Attorney for the Authority




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 44




     DRAFT                                   DRAFT                                    DRAFT

               AMENDED EMPLOYMENT CONTRACT – AMENDMENT #1



        WHEREAS, GACRAA and CRIDER are signatory parties to an Amended

Employment Contract dated March 5, 2004; and

        WHEREAS, GACRAA desires to continue its employment of CRIDER as its Chief

Executive Officer (CEO) in accordance with the terms and conditions more specifically defined

in said Amended Employment Contract dated March 5, 2004, and

        WHEREAS, CRIDER is desires to serve as CEO of GACRAA in accordance with the

terms and conditions defined in that agreement as hereby modified;



        NOW, THEREFORE, it is agreed by and between the parties as follows:

WITNESSETH
1. Section 3 A. of the Employment Contract shall read, in its entirety, as follows:

                3.      A.      CRIDER shall be paid an annual base salary of ONE HUNDRED,

        THIRTY THOUSAND DOLLARS ($130,000.00), in accordance with the payroll

        policies of GACRAA for professional members of the staff, GACRAA hereby retains the

        right to adjust the annual base salary of CRIDER during the term of this contract;

        however, any adjustment shall not produce an annual salary below the amount stated

        above. Any adjustment in salary made during the life of this contract shall be in the form

        of an amendment to and shall become a part of this contract. In addition to the annual

        base salary, CRIDER may receive a bonus, not to exceed fifteen percent (15%) of his


________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 45




        annual base salary,. The amount of any such bonus shall be determined by the GACRAA

        Board and shall be based on the accomplishment of annual Goals and the Bonus Formula,

        as approved by the GACRAA Board.

2.      All other terms and conditions of this Employment Contract shall remain valid and

        unchanged.



        This employment contract between GACRAA and CRIDER is dated this _______ day of

_______________________, 2005.

ATTEST:                                                 GAINESVILLE-ALACHUA COUNTY
                                                        REGIONAL AIRPORT AUTHORITY


_____________________________                   By:     ________________________________
Secretary                                               Chairman




                                                        ___________________________________
WITNESS:                                                RICHARD CRIDER




5-13-05


________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                                                                 Agenda Page 46
    DRAFT
    For Board Consideration
                                                Proposed 2005 Personnel Goals
    on May 19, 2005                  Gainesville-Alachua County Regional Airport Authority
                                          For the period from February 18, 2005 to February 17, 2006


Relative                                         Goal                                                  Score by      Examples that Demonstrate
Weight      Goals                                Score    Objectives                                   Objective     Achievement of Objective
  35%       Fiscal and Operational Leadership     5.00    Improve Financial Management                     5       * Completed the fiscal year 2003 Audit by May 1,
                                                                                                                     2005
                                                                                                                   * Completed the fiscal year 2004 Audit by August
                                                                                                                     1, 2005
                                                                                                                   * Managed the Budget appropriately throughout
                                                                                                                     the year
                                                          Reorganize the Accounting Department             5       * Hired and trained a new Business Manager /
                                                                                                                     Chief Financial Officer by the end of June 2005
                                                          Develop a Succession Plan                        5       * Developed a CEO Succession plan for GACRAA
                                                                                                                     consideration, and presented it to the Board by
                                                                                                                     the end of July 2005
                                                          Present Codification language for State of       5       * Worked with legal counsel, elected officials,
                                                          Florida Enabling Legislation                               State delegation and Authority Board to propose
                                                                                                                     codification language, that includes advocacy of
                                                                                                                     a four-year term for GACRAA Board members,
                                                                                                                     and presented it to the Board by the end of
                                                                                                                     August 2005

                                                          Promote High Employee and Tenant Morale          5       * Planned, at a minimum, semi-annual employee
                                                                                                                     events to brief airport staff on development and
                                                                                                                     changes at the Airport
                                                                                                                   * Planned, at a minimum, semi-annual team-
                                                                                                                     building sessions/events for senior staff
                                                                                                                     involvement
                                                                                                                   * Filled hourly employee vacancies within 60 days

                                                                                                                   * Systematically conducted salary surveys with
                                                                                                                     peer organizations and made appropriate
                                                                                                                     adjustments to keep positions competitive and
                                                                                                                     attractive for employee retention




                                                                         Page 1 of 5                                                             April 28, 2005
                                                                                                                                             Agenda Page 47
    DRAFT
    For Board Consideration
                                              Proposed 2005 Personnel Goals
    on May 19, 2005                 Gainesville-Alachua County Regional Airport Authority
                                          For the period from February 18, 2005 to February 17, 2006


Relative                                        Goal                                               Score by      Examples that Demonstrate
Weight      Goals                               Score     Objectives                               Objective     Achievement of Objective
  20%       External Relationship                5.00     Promote the Airport                          5       * Scheduled at least 2 community presentations
            Development                                                                                          per month for the Speaker's Bureau to make to
                                                                                                                 regional elected boards and civic groups
                                                                                                               * Maintained positive relationships with the local
                                                                                                                 media
                                                                                                               * Hired and trained a new Public Relations
                                                                                                                 employee by the end of September 2005
                                                                                                               * Developed a customer service plan by the end of
                                                                                                                 December 2005
                                                          Strengthen Aviation Relationships with       5       * Pursued funding for an aviation education center
                                                          University of Florida and Santa Fe                     through application for a fiscal year 2006 grant,
                                                          Community College                                      to be used for flight training, research and
                                                                                                                 development, and graduate studies, by the end
                                                                                                                 of July 2005

                                                          Strengthen relationships with Airport        5       * Planned, at a minimum, semi-annual events for
                                                          Tenants and Users                                      tenants and volunteer organizations such as the
                                                                                                                 Civil Air Patrol to build airport community
  25%       Long-Term Planning and Facility      5.00     Complete the Master Plan Update              5       * Worked with local governmental agencies,
            Development                                                                                          members of the public and consultant to
                                                                                                                 complete the Airport Master Plan Update by
                                                                                                                 December of 2005

                                                                                                               * Worked with elected leaders, County staff,
                                                                                                                 FDOT and the FAA to acquire County
                                                                                                                 Fairgrounds, to be used for airport business park
                                                                                                                 and entrance boulevard development

                                                                                                               * Worked with elected leaders, City staff and legal
                                                                                                                 counsel to transfer airport lands to Authority
                                                                                                                 ownership




                                                                         Page 2 of 5                                                          April 28, 2005
                                                                                                                                    Agenda Page 48
    DRAFT
    For Board Consideration
                                         Proposed 2005 Personnel Goals
    on May 19, 2005                Gainesville-Alachua County Regional Airport Authority
                                     For the period from February 18, 2005 to February 17, 2006


Relative                                   Goal                                          Score by      Examples that Demonstrate
Weight      Goals                          Score     Objectives                          Objective     Achievement of Objective
                                                     Implement the Capital Improvement       5       * Worked in conjunction with federal lobbyist to
                                                     Program                                           advocate adequate funding for projects,
                                                                                                       consistent with the Capital Improvement Plan
                                                                                                       (CIP), and sequence projects for a timely
                                                                                                       completion without litigation or dispute

                                                                                                     * Completed Runway 11-29 visual guidance
                                                                                                       system improvements by the end of August 2005


                                                                                                     * Completed Terminal Renovation - Phase 1 by
                                                                                                       the end of July 2005
                                                                                                     * Initiated construction design of the Eclipse
                                                                                                       Aviation facilities by the end of August 2005
                                                                                                     * Began construction of new T-Hangars by the
                                                                                                       end of December 2005
                                                     Develop Land-Side and Air-Side          5       * Developed a feasible solution for the
                                                     Infrastructure                                    construction of a consolidated service facility for
                                                                                                       rental car companies at the Airport, and
                                                                                                       presented the solution to the Board for
                                                                                                       consideration by the end of May 2005

                                                                                                     * Pursued federal funding for access road
                                                                                                       improvements by the end of July 2005, and
                                                                                                       began development if funds were secured
  20%       Business Development            5.00     Enhance Air Service                     5       * Advocated Delta Connection turbo-prop
                                                                                                       replacement with regional jet aircraft through
                                                                                                       conversation with Delta by the end of July 2005
                                                                                                     * Pursued new routes on existing air carriers to
                                                                                                       the New York and Fort Lauderdale markets




                                                                   Page 3 of 5                                                       April 28, 2005
                                                                                                                                Agenda Page 49
    DRAFT
    For Board Consideration
                                    Proposed 2005 Personnel Goals
    on May 19, 2005           Gainesville-Alachua County Regional Airport Authority
                                For the period from February 18, 2005 to February 17, 2006


Relative                              Goal                                            Score by      Examples that Demonstrate
Weight      Goals                     Score     Objectives                            Objective     Achievement of Objective
                                                Develop General Aviation Facilities       5       * Renovated and placed a new tenant in the old
                                                                                                    Gulf Atlantic facility, that complements the
                                                                                                    existing business mix at the airport and
                                                                                                    enhances competition, by the end of July 2005

                                                                                                  * Pursued federal funding for Joint Aviation Unit
                                                                                                    facility renovation by the end of July 2005, and
                                                                                                    began development if funds were secured
                                                Develop Cargo Facilities                  5       * Continued dialogue with cargo operators to build
                                                                                                    support for development of a multi-tenant cargo
                                                                                                    building

  100%




                                                               Page 4 of 5                                                       April 28, 2005
                                                                                                                 Agenda Page 50
       DRAFT
       For Board Consideration
                                                        Proposed 2005 Personnel Goals
       on May 19, 2005                      Gainesville-Alachua County Regional Airport Authority
                                                    For the period from February 18, 2005 to February 17, 2006



                                                                          Summary

 Relative                                                 Goal
 Weight           Goals                                   Score     Weighted Score by Goal
    35%           Fiscal and Operational Leadership        5.00                 1.75



    20%           External Relationship Development        5.00                   1



    25%           Long-Term Planning and Facility          5.00                 1.25
                  Development


    20%           Business Development                     5.00                   1




    100%          Weighted Score                                                5.00




                                                                       Bonus Formula

For Weighted Score less than 3.50                            0
For Weighted Score Between 3.50 and 3.99                   50%
For Weighted Score Between 4.00 and 4.49                   75%
For Weighted Score of 4.50 or above                        100%

Bonus Achieved:                                            100%




                                                                             Page 5 of 5                         April 28, 2005
                                                                                                  Agenda Page 51




AIRPORT BUSINESS



        5. Finance and Operations Committee Report

        ___________________                     ____________________________________

        The Finance and Operations Committee met on April 28, 2005.

                    FY03 Audit Report

                    FY04 Audit – Purvis Gray and Company Letter of Engagement –
                    Resolution 05-023

        Recommendation: Listen to the report and give any applicable comment.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 52




                                               DRAFT

         GAINESVILLE-ALACHUA COUNTY REGIONAL AIRPORT AUTHORITY
                  FINANCE AND OPERATIONS COMMITTEE
                                Meeting Highlights
                        Thursday, April 28, 2005 – 3:00 p.m.
                   Airline Passenger Terminal – Restaurant Area


Call To Order By the Chair
Dr. Gallagher called the meeting to order at 3:01 p.m.

Committee members present: Dr. Billy Brashear, Mr. C.B. Daniel, Mr. Joe Dunlap and Dr. Jim
Gallagher were present.

GACRAA Chair Jim Stringfellow participated in an ex-officio role.

Approval of Meeting Highlights of April 19, 2005
Dr. Brashear moved to approve the meeting highlights of April 19, 2005. Mr. Daniel seconded
the motion. Motion passed.

FY03 Audit
At its regular monthly meeting on April 21, 2005, the Board adopted Resolution 05-019 granting
the Finance & Operations Committee the authority to receive and accept the FY03 Audit Report
on behalf of the Board (see Attachment A).

Mr. Garrick Crocker, CFO, introduced Purvis Gray & Company personnel to the committee.
Mr. Terry Kyte, Audit Manager, and Ms. Diane Shupe were present to provide the FY03 Audit
Report.

Ms. Appie Graham, consultant, reported that the FY03 Audit report required a final review by
the Purvis Gray & Company senior partner, Mr. Jerry Handley. Ms. Graham stated that Mr.
Kyte and Ms. Shupe were prepared to present the audit figures and that there was no reason to
believe that the numbers would be revised. She indicated that the report, once approved, would
be prepared for submission to the Florida Department of Community Affairs by May 3.

Mr. Kyte distributed copies of a preliminary draft of the FY03 Audit Report. He indicated that
the draft was completed earlier in the day and that a final review of the document would be
performed.

Mr. Kyte reviewed the following components of the audit report and answered questions posed
by the committee members:
          Independent Auditor’s Report
          Balance Sheets
          Statements of Revenues, Expenses and Changes in Retained Earnings
          Statements of Cash Flows


________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 53




            Notes to Financial Statements
            Revenue Comparison – Budget vs. Actual
            Expense Comparison – Budget vs. Actual
            Schedule of Federal Financial Assistance
            Schedule of State Financial Assistance
            Independent Auditors’ Report on Compliance and on Internal Control over Financial
            Reporting Based on an Audit of Financial Statements Performed in Accordance with
            Government Auditing Standards
            Independent Auditors’ Report on Compliance with Requirements Applicable to its
            Major Federal Program and State Financial Assistance Project and Internal Control
            over Compliance in Accordance with OMB Circular A-133 and Chapter 10.550,
            Rules of the Auditor General
            Schedule of Findings and Questioned Costs – Federal Programs and State Financial
            Assistance Projects in Accordance with OMB Circular A-133 and Chapter 10.550,
            Rules of the Auditor General
            Management Letter

Mr. Kyte reviewed matters involving internal control over compliance and its operation that are
considered to be reportable conditions by Purvis Gray and Company. Many of the items cited
were associated with the transfer of inadequate documentation from Flightline Group.

Mr. Kyte recommended the following actions to avoid deficiencies in the future:
           Reconcile and reclassify balances in clearing accounts on a timely basis.
           Perform a fixed asset inventory.
           Update the Purchasing Policy.
           File audit reports on a timely basis.
           Substantiate all payments made by GACRAA by an original invoice or other
           appropriate documentation.
           Establish separation of duties among account department staff for internal control
           purposes.
           Maintain an awareness of changes in operations that may result in a change in
           insurance requirements.
           Review sales prices of fuel for compliance with GACRAA policy and require the
           FBO to maintain adequate records to be reviewed by GACRAA periodically.
           Resolve any outstanding amounts owed to or from Flightline and ensure that the
           amounts are paid.
           Post General Ledger on a timely basis throughout the year and reconcile the accounts
           to supporting documentation on a timely basis.

A lengthy discussion followed regarding the corrective actions taken recently and those still
needed to avoid deficiencies and delays in completing future audits.

Mr. Dunlap moved to accept the FY03 Draft Audit Report and to authorize the CEO to review
and accept the final report and send it to the Florida Department of Community Affairs. Dr.
Brashear seconded the motion. Motion passed.



________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 54




Responding to a question from Mr. Stringfellow, Mr. Handley indicated that it is possible to
complete the FY04 Audit by September 30, 2005.

Mr. Crider reported that staff had done some work preparing for the FY04 Audit. He stated that
Purvis Gray & Company will provide a Letter of Engagement for the FY04 Audit and it will be
among the agenda items for the Board meeting in May.

Airport Land Transfer
Mr. Crider reported that he has had several meetings with former City Manager Wayne Bowers,
Interim City Manager Barbara Lipscomb, City Attorney Marion Radson, and Don Stanley,
Attorney for the Authority, regarding the transfer of ownership of airport property from the City
to GACRAA. He stated that GACRAA's 1995 Enabling Legislation allows for the conveyance
of airport land to GACRAA at no cost.

Mr. Crider distributed an aerial photo illustrating the boundaries of the property proposed to be
transferred to GACRAA (see Attachment B). The proposed land transfer would not include the
Airport Industrial Park, although the airport would still receive sales proceeds and the ad
valorum taxes associated with industrial park properties until fair market value is achieved. The
proposed land transfer would include Gum Root Park, although the City had indicated a desire to
continue to manage the park. The airport would be able to use the Gum Root Park land as
conservation easement property, to mitigate future development on the airfield. Mr. Crider
reviewed the Land Transfer Talking Points and advantages of transferring ownership of the land
to the airport (see Attachment C).

Mr. Crider reported that Ms. Lipscomb has advised that the City Commission is reluctant to
convey the land; however she invited the Board to contact each member of the Commission to
discuss the issue.

The committee endorsed continuing discussions with the City Commissions regarding the issue.

ADJOURNMENT
There being no further business, the meeting was adjourned by the Chair at 4:20 p.m.


FINANCE & OPERATIONS COMMITTEE


_____________________________                                           _________________
T. James Gallagher, Chair                                                     Date




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 55
                       Finance & Operations Committee Meeting Highlights
                                         April 28, 2005
                                         Attachment A




                                     RESOLUTION 05-019
                                   EFFECTIVE APRIL 21, 2005


A RESOLUTION OF THE GAINESVILLE-ALACHUA COUNTY REGIONAL
AIRPORT AUTHORITY RELATING TO ITS FINANCIAL AUDIT FOR FISCAL YEAR
2003, WHICH BEGAN OCTOBER 1, 2002 AND ENDED SEPTEMBER 30, 2003


        WHEREAS, the Gainesville-Alachua County Regional Airport Authority is required by
State statute to accomplish an annual financial audit and submit the audit report to the State of
Florida; and


        WHEREAS, significant effort has gone into compiling data and reconciling financial
information for the auditors to accomplish their work; and


        WHEREAS, the State of Florida has issued an extension of time and requires the
Authority to submit its fiscal year 2003 audit report by April 28, 2005; and


        WHEREAS, staff has presented a preliminary report of the financial standing to the
Board on this date and the auditor intends to present their full report to the Finance and
Operations Committee on April 28, 2005;


        NOW, THEREFORE, BE IT RESOLVED BY THE GAINESVILLE-ALACHUA
COUNTY REGIONAL AIRPORT AUTHORITY, as follows:

    1. That the Gainesville-Alachua County Regional Airport Authority accepts the fiscal year
2003 annual financial audit, presented in substantial form by staff on this date.


    2. That Richard Crider, Chief Financial Officer, is hereby directed to submit the fiscal year
2003 financial audit, once presented and approved by the Finance and Operations Committee at

________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 56
                       Finance & Operations Committee Meeting Highlights
                                         April 28, 2005
                                         Attachment A



their scheduled meeting on April 28, 2005 and with the concurrence of the GACRAA Board
Chairman, to the State of Florida.



        ADOPTED this 21st day of April, 2005.


                                                        GAINESVILLE-ALACHUA COUNTY
                                                        REGIONAL AIRPORT AUTHORITY



                                                        ____________________________________
                                                        James L. Stringfellow, Sr., Chair


                                                        ATTEST:


                                                        ____________________________________
                                                        T. James Gallagher, Secretary/Treasurer




                                                        APPROVED AS TO FORM AND
                                                        LEGALITY:


                                                        ____________________________________
                                                        Donald W. Stanley, Jr.
                                                        Attorney for the Authority




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                            Agenda Page 57
                       Finance & Operations Committee Meeting Highlights
                                         April 28, 2005
                                         Attachment B




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 58
                       Finance & Operations Committee Meeting Highlights
                                         April 28, 2005
                                         Attachment B
Reduction of Effort

    Duplicate efforts currently exist between the two public entities. Topics of grant review,
    assurance and acceptance pass through two legal departments and require adoption by two
    governing authorities, resulting in redundancy. City staff members responsible for risk
    management are also involved with monitoring liability and looking after the City’s interest
    with regard to Airport lands and buildings.

Liability

    The City of Gainesville has liability exposure regarding Gainesville Regional Airport
    because it owns the land, has signed grant assurances and has constructed buildings on
    airport property over time. By legislation, however, the City has no operational or
    maintenance control of the Airport. The Authority makes decisions regarding airport lands
    that could affect the city as the property owner.

Autonomy

    The Authority has a need to make decisions regarding airport lands when leasing, acquiring,
    trading and recording easements on airport property; all of which currently require City
    involvement.

    Property Insurance for the Airport is acquired under the City’s insurance policy, and the
    Authority pays the cost of this insurance. The Property Insurance policy that the City carries
    has a very high deductible; $100,000 for airport losses, and in the case of a named wind
    storm, 1% of the value of the buildings damaged, with a minimum of $250,000. The
    Insurance agent feels that the City, as the policy holder, would bear the burden of the
    deductible, though the City’s position on reimbursement of deductible expenses is unclear.
    It goes without saying that the Airport is not prepared for a reimbursement of that
    magnitude.

    The lack of Authority autonomy makes risk management decisions very difficult, as in my
    opinion the program remains incompatible for the Authority tasked with operating and
    maintaining the Airport. If the City does not move forward with Land Transfer, the
    Authority could pursue a separate property insurance policy and request approval for this
    approach from the City.

Governance

    The transfer of land would in no way change the governance or the oversight of the Airport
    by the City Commission; the Commission would continue to appoint 5 of the 9 governing
    board members.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 59
                    Finance & Operations Committee Meeting Highlights
                                      April 28, 2005
                                      Attachment B
Real Estate Decisions

    Property designated as airport lands must be used for the operation and maintenance of a
    public airport. Airport lands are those transferred by the federal government to the City
    when the military originally deeded the property to the City of Gainesville, property
    purchased with the assistance of funds from the Federal Aviation Administration (FAA) and
    property purchased with the assistance of FDOT Aviation funds. In those cases where
    airport lands were acquired either through Public Benefit Transfer (PBT) or with the
    assistance of State or Federal grant funds, both the City and the Authority have signed grant
    assurances and are legally bound to operate the airport for the benefit of the public.

    The Authority will soon be faced with mitigating impact to wetlands, recording conservation
    easements, acquiring property for airport protection and mitigation of future noise impact,
    and development of non-aeronautical facilities that help the airport meet its goal of self-
    sufficiency and perpetuity. Ultimately, the Authority will need to be able to make real estate
    decisions and commitments, consistent with its Master Plan, which has broad public
    involvement.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 60




                                    RESOLUTION NO. 05-023
                                    EFFECTIVE MAY 19, 2005


    RESOLUTION AUTHORIZING EXECUTION OF AN AUDIT ENGAGEMENT
    LETTER WITH PURVIS, GRAY AND COMPANY

        WHEREAS, Purvis, Gray and Company has performed audits for the Gainesville-
Alachua County Regional Airport Authority (“Authority”) over the past number of years and has
recently completed the fiscal year 2003 audit; and

        WHEREAS, Airport staff is making steady progress in bringing fiscal and accounting
projects, reports and audits current; and

        WHEREAS, Purvis, Gray and Company possesses the resources and familiarity with
Authority processes, files, personnel, and financial activities to complete the fiscal year 2004
audit in an expeditious and efficient manner; and

        WHEREAS, The Audit Engagement Letter offered by Purvis, Gray and Company is in
line with the cost of previous audits and considered to be a fair fee for work to be performed;

        NOW, THEREFORE,

     BE IT RESOLVED BY THE GAINESVILLE-ALACHUA COUNTY REGIONAL
AIRPORT AUTHORITY, as follows:

        Section 1. That the Gainesville-Alachua County Regional Airport Authority shall enter
into an Audit Engagement Letter with Purvis, Gray and Company for audit services associated
with the required fiscal year 2004 financial audit.

        Section 2. That Richard Crider, Chief Executive Officer, is hereby authorized and
directed to fully execute the Audit Engagement Letter on behalf of the Gainesville-Alachua
County Regional Airport Authority.

       Section 3. That Airport staff is directed to begin work associated with the fiscal year
2004 audit as soon as practical, making necessary preparations to ensure the audit staff of Purvis,
Gray and Company is able to perform the audit in a reasonable and efficient manner.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 61




        EFFECTIVE this 19th day of May, 2005.




                                                GAINESVILLE-ALACHUA COUNTY
                                                REGIONAL AIRPORT AUTHORITY



                                                _______________________
                                                James L. Stringfellow, Sr.
                                                Chair



                                                ATTEST:



                                                ________________________
                                                T. James Gallagher
                                                Secretary / Treasurer



                                                APPROVED AS TO FORM AND LEGALITY



                                                BY: _____________________
                                                Donald W. Stanley, Jr.
                                                Attorney for the Authority




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
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Agenda Page 62
                                                                                                          Agenda Page 63



The Governing Board
Gainesville-Alachua County Regional
 Airport Authority
Gainesville, Florida                                     -2-                                   Aprilll,   2005


Audit Objectives (Concluded)
Our audit will be conducted in accordance with u.s. generally accepted auditing standards; the standards
for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States; the Single Audit Act Amendments of 1996; the provisions of OMB Circular A-133; and
Section 215.97FS (Florida Single Audit Act), and will include tests of your accounting records, a
detennination of major prograrn(s) in accordance with OMB Circular A-133, and other procedures we
consider necessary to enable us to express such an opinion and to render the required reports. If our opinion
on the financial statements or the Single Audit compliance opinion is other than unqualified, we will fully
discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are
unable to fonn or have not fonned an opinion, we may decline to express an opinion or to issue a report as a
result of this engagement.


Management Responsibilities
Management is responsible for establishing and maintaining internal control and for compliance with the
provisions of contracts, agreements, and grants. In fulfilling this responsibility, estimates and judgments by
management are required to assess the expected benefits and related costs of the controls. The objectives of
internal control are to provide management with reasonable, but not absolute, assurance that assets are
safeguarded against loss from unauthorized use or disposition, that transactions are executed in accordance
with management's authorizations and recorded properly to permit the preparation of fmancial statements in
accordance with generally accepted accounting principles, and that federal award programs and state
financial assistance are managed in compliance with applicable laws and regulations and the provisions of
contracts and grant agreements.

                                  making all financial




You are responsible for the design and implementation of programs and controls to prevent and detect
fraud, and for informing us about all known or suspected fraud affecting the government involving (a)
management, (b) employees who have significant roles in internal control, and (c) others where the fraud
could have a material effect on the financial statements. You are also responsible for informing us of
your knowledge of any allegations of fraud or suspected fraud affecting the government received in
communications from employees, former employees, grantors, regulators, or others. In addition, you are
                                                                                                             Agenda Page 64




The Governing Board
GainesviUe-AlachuaCounty Regional
 Airport Authority
Gainesville, Florida                                    -3-                                         April 11, 2005


Management Responsibilities (Concluded)
responsible for identifying and ensuring that the entity complies with applicable laws and regulations.
Additionally,  as required by 0MB Circular A-133, it is management's responsibility to follow up and
take corrective action on reported audit findings and to prepare a summary schedule of prior audit
findings and a corrective action plan.

Audit Procedures-General
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the
fmancial statements; therefore, our audit will involve judgment about the number of transactions to be
examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than
absolute assurance about whether the financial statements are free of material misstatement, whether from
errors, fraudulent financial reporting, misappropriation of assets, or violations of laws or governmental
regulations that are attributable to the entity or to acts by management or employees acting on behalf of the
entity. As required by the Single Audit Act Amendments of 1996, OMB Circular A-133 and Section
215.97FS (Florida Single Audit Act), our audit will include tests of transactions related to major federal
award programs and state financial assistance for compliance with applicable laws and regulations and the
provisions of contracts and agreements. Because an audit is designed to provide reasonable, but not
absolute, assurance and because we will not perform a detailed examination of all transactions, there is a
risk that material errors, fraud, other illegal acts, or noncompliance may exist and not be detected by us. In
addition, an audit is not designed to detect immaterial errors, fraud, or other illegal acts or illegal acts that do
not have a direct effect on the financial statements or to major programs. However, we will inform you of
any material errors and any fraudulent fmancial reporting or misappropriation of assets that come to our
attention. We will also inform you of any violations of laws or governmental regulations that come to our
attention, unless clearly inconsequential. We will include such matters in the reports required for a Single
Audit. Our responsibility as auditors is limited to the period covered by our audit and does not extend to
matters that might arise during any later periods for which we are not engaged as auditors.

Our procedures will include tests of documentary evidence supporting the transactions recorded in the
accounts, and may include tests of the physical existence of inventories, and direct confirmation of
receivables and certain other assets and liabilities by correspondence with selected individuals, creditors,
and financial institutions.    We will request written representations from your attorneys as part of the
engagement, and they may bill you for responding to this inquiry .At the conclusion of our audit, we will
also require certain written representations from you about the fmancial statements and related matters.

Audit Procedures-Internal     Controls
In planning and performing our audit, we will consider the internal control sufficient to plan the audit in
order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing
our opinions on Gainesville-Alachua County Regional Airport Authority's financial statements and on its
compliance with requirements applicable to major programs.

We will obtain an understanding of the design of the relevant controls and whether they have been placed in
operation, and we will assess control risk. Tests of controls may be performed to test the effectiveness of
certain controls that we consider relevant to preventing and detecting errors and fraud that are material to
the financial statements and to preventing and detecting misstatements resulting from illegal acts and other
                                                                                                                 Agenda Page 65




The Governing Board
Gainesville-Alachua County Regional
 Airport Authority
Gainesville, Florida                                    -4-                                        April   II,   2005


Audit Procedures-Internal      Controls (Concluded)
noncompliance matters that have a direct and material effect on the financial statements. Tests of controls
relative to the financial statements are required only if control risk is assessed below the maximum level.
Our tests, if performed, will be less in scope than would be necessary to render an opinion on internal
control and, accordingly, no opinion will be expressed in our report on internal control issued pursuant to
Government Auditing Standards.

As required by 0MB Circular A-133 and Section 215.97FS (Florida Single Audit Act), we will perfonn
tests of controls to evaluate the effectiveness of the design and operation of controls that we consider
relevant to preventing or detecting material noncompliance with compliance requirements applicable to
each major federal award program and state financial assistance. However, our tests will be less in scope
that would be necessary to render an opinion on those controls and, accordingly, no opinion will be
expressed in our report on internal control issued pursuant to 0MB Circular A-133.

An audit is not designed to provide assurance on internal control or to identify reportable conditions. However,
we will infonn the governing body or audit committee of any matters involving internal control and its
operation that we consider to be reportable conditions under standards established by the American Institute of
Certified Public Accountants.        Reportable conditions involve matters coming to our attention relating to
significant deficiencies in the design or operation of the internal control that, in our judgment, could adversely
affect the entity's ability to record, process, summarize, and report fInancial data consistent with the assertions
of management in the fInancial statements. We will also infonn you of any nonreportable conditions or other
matters involving internal control, if any, as required by 0MB Circular A-133.

Audit Procedures-Compliance
Our audit will be conducted in accordance with the standards referred to in the section titled Audit
Objectives. As part of obtaining reasonable assurance about whether the financial statements are free of
material misstatement, we will perform tests of Gainesville-Alachua County Regional Airport Authority's
compliance with applicable laws and regulations and the provisions of contracts and agreements, including
grant agreements. However, the objective of those procedures will not be to provide an opinion on overall
compliance, and we will not express such an opinion in our report on compliance issued pursuant to
Government Auditing Standards.

OMB Circular A-133 requires that we also plan and perform the audit to obtain reasonable assurance about
whether the auditee has complied with applicable laws and regulations and the provisions of contracts and
grant agreements applicable to major programs. Our procedures will consist of the applicable procedures
described in the OMB Circular A-133, Compliance Supplement, for the types of compliance requirements
that could have a direct and material effect on each of Gainesville-Alachua     County Regional Airport
Authority's major programs. The purpose of those procedures will be to express an opinion on Gainesville-
Alachua County Regional Airport Authority's compliance with requirements applicable to major programs
in our report on compliance issued pursuant to OMB Circular A-133.

Audit Administration.     Fees. and Other
We understand that your employees will locate any invoices selected by us for testing.
                                                                                                           Agenda Page 66



The Governing Board
Gainesville-Alachua County Regional
 Airport Authority
GainesviUe, Florida                                  -5-                                       Aprilll,     2005


Audit Administration,   Fees, and Other (Concluded)
At the conclusion of the engagement, we will complete the appropriate sections of and sign the Data
Collection Form that summarizes our audit findings. We will provide thirty (30) copies of our reports to the
Gainesville-Alachua County Regional Authority; however, it is management's responsibility to submit the
reporting package (including fmancial statements, schedule of expenditures of federal awards and state
fmancial assistance summary schedule of prior audit findings, auditors' reports, and corrective action plan)
along with the Data Collection Form to the designated federal clearinghouse and, if appropriate, to pass-
through entities.

The Data Collection Form and the reporting package must be submitted within the earlier of 30 days after
receipt of the auditors' reports or nine months after the end of the audit period, unless a longer period is
agreed to in advance by the cognizant or oversight agency for audits. At the conclusion of the engagement,
we will provide information to management as to where the reporting packages should be submitted and the
number to submit.

The audit documentation for this engagement are the property of Purvis, Gray and Company and constitute
confidential information. However, we may be requested to make certain audit documentation available to
a Grantor Agency pursuant to authority given to it by law or regulation. If requested, access to such audit
documentation will be provided under the supervision of Purvis, Gray and Company personnel.
Furthermore, upon request, we may provide photocopies of selected audit documentation to a Grantor
Agency. The Grantor Agency may intend, or decide, to distribute the photocopies or information contained
therein to others, including other governmental agencies.

The audit documentation for this engagementwill be retained for a minimum of three years after the date
the auditors' report is issued or for any additional period requested by the Cognizant Agency, Oversight
Agency for Audit, or Pass-through Entity .If we are aware that a federal awarding agency, pass-through
entity , or auditee is contesting an audit finding, we will contact the parties contesting the audit fmding for
guidance prior to destroying the audit documentation.

Our fee for these services will be at our standard hourly rates plus out-of-pocket costs (such as report
reproduction, typing, postage, travel, copies, telephone, etc.). We estimate that our gross fee, including
expenses,will not exceed $21,360 for the audit. Our standard hourly rates vary according to the degree of
responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for
these fees will be rendered each month as work progressesand are payable on presentation. The above fee
is based on anticipated cooperation from your personnel and the assumption that unexpected circumstances
will not be encounteredduring the audit. If we run into unusual delays in receiving information, missing or
incomplete information or other difficulties caused by airport personnel, actual time will be billed at the
rates setforth below. Our estimated fee is basedon the following:

                                                                                Hourly
          Title                                                 Hours            Rate                 Amount
Partner                                                           24           $       115        $        2,760

Manager                                                           90                   100                 9,000
Staff Accountants                                                120                    80                 9,600
Out-of-Pocket   Costs                                                                                              0
Total                                                                                             $       21.360
                                                                                                                                                                    :3JBO
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Agenda Page 67
                                                                                                  Agenda Page 68




AIRPORT BUSINESS



        6. US Airways Pre-petition Debt Recommendation

        ___________________                     ____________________________________

        US Airways has requested that its airport partners forgive 50% of its pre-
        petition debt and repay the remaining 50% over a 6 month period 30 days
        after emergence from bankruptcy. The pre-petition debt amount owed to
        Gainesville Regional Airport is $27,773.

        Staff has surveyed other airports in the Southeast to determine their positions
        in the matter. Responses vary. One airport director has indicated his airport
        will not accept the US Airways offer, and another has stated it has not yet
        been contacted by US Airways regarding the offer but would most likely
        accept it.

        Staff recommends forgiving 50% of the pre-petition debt but also
        recommends negotiating a payment date of the remaining 50% earlier than
        the 6 months offered.


        Recommendation: Listen to the report and give any applicable comment.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 69




AIRPORT BUSINESS



        7. Automated Flight Service Station (AFSS) Letter of Support

        ___________________                     ____________________________________

        Earlier this year, the FAA announced that it intends to outsource Automated
        Flight Service Station functions to Lockheed Martin, and close the GNV
        station.

        At its meeting on April 21, 2005, the Board directed staff to draft a letter of
        support for maintaining the Automated Flight Service Station at Gainesville
        Regional Airport.


        Recommendation: Review the letter of support and give any applicable
        comment.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                    Agenda Page 70




May 19, 2005


Lockheed Martin
FAA AFSS Management Proposal
Congresswoman Corrine Brown
Congressman Cliff Stearns
Senator Mel Martinez
Senator Bill Nelson
Governor Jeb Bush

The Gainesville-Alachua County Regional Airport Authority (Authority) is aware of FAA plans to close
the Automated Flight Service Station (AFSS) at Gainesville Regional Airport. We certainly understand
the wisdom of consolidation and application of new technology, and we applaud your effort to save
taxpayer money without jeopardizing safety or access to accurate weather information. We also want to
acknowledge your wise decision to keep multiple AFSS in Florida; an area of rapid growth and dramatic
weather patterns.

I would, however, like to make a case for consolidating facilities at Gainesville Regional Airport because
of its inland location and reduced exposure to these same dramatic weather patterns. Hurricanes in
particular have historically impacted Gainesville much less than other coastal communities.

The Cities and communities that comprise North Central Florida place a high value on the 40+ employees
that staff the Gainesville AFSS, and strongly urge you to consider the economic impact these jobs have
on a smaller community. While the loss of these jobs will have a greater impact on our economy than in a
larger community, I feel that the relative size of Gainesville is of great benefit to your organization
because Gainesville Regional Airport has a state-of-the-art AFSS facility with room to grow. I suspect
that is not the case in all communities. A consolidation of AFSS in inland North Central Florida truly has
advantages from all perspectives.

I thank you in advance for your further consideration, and welcome any opportunity to speak with you in
person. I serve as the Chairman of the Authority’s Board and have the privilege of stating our position,
but encourage you to contact either myself or our Chief Executive Officer, Rick Crider, at (352) 373-
0249. Thank you again, I hope to have the opportunity to discuss options surrounding consolidation of
AFSS in the future.

Very Sincerely Yours,

James L. Stringfellow, Sr.                                 J. Brent Christensen
Chairman, Gainesville-Alachua                              President & CEO,
County Regional Airport Authority                          Gainesville Area Chamber of Commerce

cc:     Rick Crider, Gainesville-Alachua County Regional Airport Authority CEO
        File


________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 71




TENANT REPORTS:

          1. University Air Center – Construction Update

          2. Gator Aviation Services, LLC


              Airport Tenants Association
              Gainesville Pilots Association



AIRPORT AUTHORITY INPUT



AIRPORT AUTHORITY ATTENDANCE




NOTE: If any person decides to appeal any decision made by the Airport
Authority, with respect to any matters considered at a public meeting, they will
need a record of the proceedings and for such purpose, may need to ensure that a
verbatim record of the proceedings is made, which record includes the testimony
and evidence upon which the appeal is to be based.

Person with disabilities who require assistance to participate in the meeting are
requested to notify the Airport’s Administrative manager at (352) 373-0249 at least
48 hours in advance, so that their needs may be accommodated.




________________________________________________________________________________________________________
Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                                                                                             Agenda Page 72


                                                           Gainesville-Alachua County Regional Airport Authority


                                                                MEETING ATTENDANCE FOR THE MONTH OF APRIL, 2005
                                                                                  2004/2005

                        10/21/2004    11/18/2004   12/16/2004    1/20/2005    2/17/2005    3/17/2005    4/21/2005     5/19/2005    6/16/2005   7/21/2005    8/18/2005   9/15/2005    In Violation

                                                                                                                                                                                     if absent at
                                                                                                                                                                                    next meeting?
Brashear, Billy1                                                     P            P            P            E
Daniel, C.B.                P             P            P             P            P            E            P
Dunlap, Joe G.              P             P            P             P            P            P            E
Gallagher, T. James         P             P            P             E            E            P            P
                    2
Johnson, Peter L.                                                    P            P            P            P
Morris, Jon                 E             P            P             E            P            E            E
Stringfellow, Jim           P             P            P             P            P            P            P
Thomas, K. Kinnon           P             P            P             P            P            P            P
Tubb, Marilyn               P             P            P             P            E            P            E




A = Absent                           1. On 12/23/04, Billy Brashear was re-appointed by the Governor to a term ending July 31, 2007.
C = Cancelled                        2. On 12/23/04, Peter L. Johnson was appointed by the Governor to succeed Patrick Bainter to a term ending July 31, 2006.
E = Excused
P = Present




    5/13/2005
                                                                                                  Agenda Page 73




                        GUIDELINES FOR ADDRESSING
     THE GAINESVILLE - ALACHUA COUNTY REGIONAL AIRPORT AUTHORITY
                                (GACRAA)
                             GAINESVILLE, FL




The GACRAA invites and encourages participation by petitioners and members of the public.
This may be done by appearing at GACRAA meetings and meetings of GACRAA Committees.

REQUEST TO ADDRESS GACRAA
(being placed on the printed agenda for monthly meeting)

1.      Call the Director of Aviation’s Office no later than 4:00 PM ten (10) days preceding the
        monthly meeting.

2.      Provide the following information to the office:

        a.      name, address, and occupation;

        b.      persons, group, or interest represented;

        c.      general subject of request; and

        d.      action sought by GACRAA

3.      Routinely the monthly meetings begin at 5:00 PM; locations vary.

4.     At the appropriate time on the agenda, the Chairman will recognize the citizen wishing to
address GACRAA.

5.     After being recognized, the citizen should step up to the microphone on the lectern,
unless otherwise indicated by the presiding officer, and give his/her name and address in an
audible tone of voice.




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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005
                                                                                                  Agenda Page 74




ADDRESSING GACRAA
(if not on the printed agenda)

1.      A citizen may ask to be recognized under the category CITIZEN INPUT - NON-
        AGENDA ITEM.

2.      See 5 above.

                                                Or

1.      A citizen may ask to be recognized to speak on a particular topic that is under
        discussion.

2.      See 5 above.


ADDRESSING GACRAA COMMITTEES

1.      The following are sources for where and when GACRAA meetings will be held:

        a.      Airport Administration Office (373-0249).

2.      A citizen may ask to be recognized by the Chairman of the Committee to speak on the
        topic under discussion.


ADDRESSING GACRAA: All remarks shall be addressed to GACRAA as a body and not to
any member thereof. No person other than a member of GACRAA and the person having the
floor shall be permitted to enter into any discussion, either directly or through a member of
GACRAA, without permission of the presiding officer. No question shall be asked except
through the presiding officer.




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Gainesville - Alachua County Regional Airport Authority Monthly Meeting                      May 19, 2005