Nevada County Airport Management Reason for Investigation The Nevada County Civil Grand Jury has the responsibility to*

Recommendations 14

• R1
  Empower a new Airport Commission, responsible to the board, to manage and control the operation of the airport.
• R2
  Assure that an operating plan is produced that identifies and expedites a path to financial independence.
• R3
  Assure that the $1 million indebtedness is repaid to the county.
• R4
  Develop an effective follow-up process to track progress against the plan and require strict financial accountability. Track what happened to funds authorized by the BOS for the airport.
• R5
  Track what happened to funds authorized by the BOS for the airport. The recommendation has been implemented. Audited financial statements of the Airport Enterprise Fund are available for review in the Auditor-Controller's and the County Administrator's offices. No significant accounting exceptions for this fund have been documented in recent years. The Auditor-Controller audits the Airport Enterprise Fund on an annual basis and financial accounting procedures are in place to ensure all funds appropriated for Airport expenses are properly accounted for and controlled. OTHER RESPONSES REQUIRED: В. Board of Supervisors – July 10, 2001 County Administrator – June 10, 2001 Auditor-Controller - June 10, 2001 Airport Commission – July 10, 2001 Airport Manager - June 10, 2001 BYLAWS OF NEVADA COUNTY AIRPORT COMMISSION STATEMENT OF AUTHORITY I. The authority for the formation of the Airport Commission is Nevada County Ordinance 1609, adopted 12 December 1989 and operative 11 January 1990. DEFINITION OF MEMBERSHIP II. APPOINTMENT Α. The Airport Commission shall consist of five (5) members; one to be appointed by each Supervisor from his/her supervisorial district from Nevada County. Each appointee shall serve at the pleasure of the appointing Supervisor. QUALIFICATION В. The desired qualifications for candidates for appointment to the Airport Commission shall include, but not be limited to, the following: (1) A resident of Western Nevada County. (2) Knowledge of General Aviation and an appreciation for its role in the economic structure of Nevada County. (3) A desire to assist the Board of Supervisors in the development of the Nevada County Airport as a contributory element of the local economy and the County infrastructure. C. VACANCIES Airport Commission vacancies shall be filled expeditiously as vacancies occur by appointment by the Supervisor of the affected district. TERM OF SERVICE D. Each Commissioner shall serve at the pleasure of the appointing Supervisor and can only be removed by that Supervisor or by resignation. bylaws.doc 9/9/98 RESPONSIBILITIES AND DUTIES III. In accordance with the responsibilities assigned by the Board of Supervisors, the Airport Commission shall have the following duties and powers: To advise the Board of Supervisors on the planning, maintenance, development and Α. operation of the airports and airport facilities which are, or will be, owned, controlled or leased by the County. To study and to make recommendations on the subject of developing the airports В. and airport facilities in Western Nevada County. To formulate and to recommend to the Board of Supervisors the general policies C. relating to the purposes of the Airport Commission. To work with the Airport Manager in the preparation of a preliminary and final D. budget to submit to the Board annually, providing for the costs of maintenance, operation and improvement for the ensuing fiscal year. To study and to make recommendations on the subject of funds available to the Ε. County for the development of the airports and airport facilities from Federal, State and other sources. Such other functions, powers, and duties as the Board of Supervisors shall designate F. by resolution. STAFFING AND FUNDING IV. In accordance with the authority granted by the Board of Supervisors, the staff to the Commission shall consist of the following: The Airport Manager, who acts as liaison between the Commission and the Board Α. of Supervisors. Secretarial services approved by the Board of Supervisors to be paid for by the В. Airport Enterprise Fund. ORGANIZATION V. A chairperson shall be elected by majority vote of the members at the first meeting A. of the new calendar year, or as soon thereafter as practical. Term of office shall be for the calendar year in entirety or until a succeeding chairperson is elected. The term of office shall also be limited to no more than two consecutive terms unless other members are unwilling to serve as chairperson, under which conditions the curent chairperson can continue to serve on a year-to-year basis. A vice chair-person shall be elected by majority vote of the members at the В. first meeting of the new calendar year, or as soon thereafter as practicable. Term of office shall be for the calendar year in entirety, or until a succeeding vice chairperson is elected. CONDUCT OF BUSINESS VI. QUORUM Α. Three members shall constitute a quorum, which shall be required for the conduct of business, including matters during which one or more Commissioners has excused themself (themselves) from the deliberations and vote. MEETINGS В. Regular meetings shall normally be held on the fourth Thursday of each month at 7:00 p.m. in the Board Chambers on the First Floor of the Eric Rood Administrative Center, 950 Maidu Avenue, Nevada City, California 95959. Special meetings may be held at the call of the Chairperson; however, no meeting, regular or special, may be called or held if there is insufficient time to post an Agenda for the meeting at the Airport and at the Rood Center to allow 72 hours for viewing prior to the scheduled opening of the meeting. C. OPEN MEETING REQUIREMENTS As a public agency, all meetings held by the Airport Commission are subject to the provisions of the Brown Act, the California State Statute which prescribes required procedures to assure public access to the deliberations of government agencies. SUBCOMMITTEES D. The Commission Chairperson may establish such subcommittees as he/she deems necessary; however, membership may not exceed two members from the Airport Commission. bylaws.doc 9/9/98 CONFLICT OF INTEREST E. No Commissioner shall vote on a matter before the Commission which directly affects the personal or economic well-being of the Commissioner. F. COMMUNICATION WITH THE BOARD OF SUPERVISORS Communication from the Airport Commission to the Board of Supervisors shall be accomplished as expeditiously, clearly, and completely as possible. Available means for this communication are as follows and shall be used as time and circumstances require, but usually in the following order: Summary Minutes, prepared the day following Airport Commission (1) meetings and immediately provided to the Board of Supervisors. (2) Regular, full Minutes of Airport Commission Proceedings prepared as soon as practicable after approval by the Airport Commission. (3) Letter from the Commission Chairperson to the Chairperson of the Board of Supervisors relating information on a matter or matters of critical or urgent nature which the Commission believes requires special attention by the Board of Supervisors. COMPENSATION G. Mileage to and from the meeting may be paid per Board authorization. No other compensation is provided for service to the Commission. AMENDMENTS VII. The following procedures shall be followed to amend these by-laws: (1) Proposed amendments shall be prepared in the proper format and forwarded to the Commission Chairperson a minimum of 15 days prior to the date desired for consideration of the change. The Chairperson will include the proposed amendment on the Agenda for the (2) next meeting. The proposed Amendment will be read aloud, discussed by the Commission and (3) the public, as appropriate, and subsequently approved, disapproved, tabled for research, etc. bylaws.doc 9/9/98 _ Amendments to these by-laws approved by the Airport Commission must be (4) forwarded to the Board of Supervisors and ratified by them prior to becoming effective. APPROVAL OF BY-LAWS VIII. These by-laws shall be adopted by a 2/3rds vote of all Commission members and ratified by the Board of Supervisors. IX. RATIFICATION OF BY-LAWS A. The Nevada County Board of Supervisors ratified these bylaws on October 6, 1998. ATTEST: CATHY R. THOMPSON Clerk of the Board By: Pathy R. Thompson - A motion was made by Supervisor Smart, seconded by Supervisor Bishop, to adopt t following Resolution relative to the creation of an Airport Commission for Western Revada Upon a roll call ballot, the following vote was recorded: Supervisor First District Aye Aye Supervisor Second District Supervisor Third District Aye Supervisor Fourth District Äуe Aye Supervisor Fifth District RESOLUTION BE IT RESOLVED by the Board of Supervisors of the County of Nevada: That there is hereby created an Airport Commission for western Nevada County to be known as the Western Nevada County Airport Commission and consisting of five (5) members. That the following be and they are hereby appointed members of the Western Nevada County Airport Commission to-wit: Downey Clinch
• R6
  The Board of Supervisors did not enforce an existing Public Utility Code and Nevada County Ordinance requiring residents to keep their trees from obstructing the runway. Consequently the County paid for the purchase and installation of lights in 1997 instead of requiring trees to be trimmed. In 2000 the County required trees on private property to be trimmed or removed but paid the $79,000 cost out of taxpayer funds. Response: Partially Disagree Seven lights were installed along the north end of the runway during the 1995 Airport Improvement Project as part of the engineered design. In 2000, trees were trimmed or removed on private and public property. In cases where timber could not be sold to offset the cost of trimming or removal, a general fund loan to the Airport supported these costs. In FY 00/01, the cost of tree removal and trimming, including an aerial survey, land surveying, and planning was $250,000.
• R7
  The County established an Airport Commission in the 1980's. The Commission's by- laws specify that it is an advisory body only, contrary to the Litton Agreement. It has no authority over the Airport and no budgetary input. Response: Partially Disagree The County established the Airport Commission in 1957. The current by-laws indicate that the Commission is to advise or make recommendations to the Board of Supervisors but some duties indicate that the Commission has management functions such as working with the Airport Manager to prepare the Airport budget for submission to the Board. The August 1, 1957 agreement between the County and Loma Rica Industrial Park states "County agrees to appoint an Airport Commission to manage and control operations of the property" is consistent with the appointment of a Commission. The Commission has significant authority under the Commission by-laws because powers and duties include advising the Board on all aspects of the planning, maintenance, development and operation of the Airport and to make recommendations on the subject of development of the Airport and its facilities.
• R8
  Within Nevada County government structure the Airport is an "Enterprise Fund". An Enterprise Fund is to create its own operating revenue. Response: Agree
• R9
  The Airports sources of operating revenue are fuel; sales, hangar fees, aircraft tiedown fees, user fees paid by California Department of Forestry, as well as some tax revenue. The Airport Manager and the Airport Commission have no decision-making authority about Airport revenues. The County has not clearly defined the decision- making authority for Airport revenues. Response: Partially Disagree In the past, sources of funding for the Airport has also included direct contributions to the Airport from the General Fund. The Airport Manager does have decision making authority over fuel prices and makes recommendations to the Board of Supervisors regarding hangar fees, aircraft tiedown fees, and user fees paid by California Department of Forestry. Tax revenue is legislatively determined; the Airport Manager has no decision making authority over this revenue. Under the Airport Commission by-laws, the commission's duties include advising the Board on all aspects of the planning, development and operation of the Airport and to make recommendations on the subject of development of the Airport and its facilities. Commissioners can make revenue decisions under their duty to advise the Board of Supervisors about Airport operations.
• R10
  The Airport has typically operated at a deficit, Nevada County "loans" funds to the Airport to cover expenses incurred to comply with FAA and CalTrans regulations. Debt presently owed to the County is nearly $1 million. Response: Partially Disagree The obstruction and illumination project is incomplete as of this date; therefore the amount the Airport owes the General Fund is yet to be determined. The amount currently loaned to the Airport for the FAA compliance project stands at $250,000.
• R11
  The Grand Jury has not been able to track Airport financial actions from Board of Supervisors authorizations through to Airport spending, despite questioning the Auditor-Controller, reviewing BOS records, interviewing the CAO, examining County financial statements and examining Airport financial records. Response: Agree This was the Grand Jury's experience based on their research efforts.
• R12
  The Airport sources of funds for capital improvement are FAA grants, CalTrans grants and local funds. When the Airport underwent a $5,900,000 improvement project in 1995, funding for the project was 90% FAA Grant, 4.5% state grant, and 5.5% County funds (by way of a CalTrans funded loan). The County loaned the funds to the Airport, supposedly to be repaid through operating revenue. Response: Agree
• R13
  The County employs an Airport Manager. The Airport Manager has reported to various County staff members, always ultimately reporting to the BOS by way of the CAO. A new manager, with extensive Airport management experience, was hired effective February 5, 2001. Response: Agree
• R14
  The BOS has adopted an Airport Master Plan and an Airport Business Development Plan. There is no operating plan. Response: Partially Disagree The Airport maintains documentation for day to day safety and maintenance operations as well emergency operation plans. These documents have not been formalized into an Airport Operations Manual. Recommendations