MINUTES OF THE
BOARD OF COMMISSIONERS
REGULAR MEETING

Thursday, December 19, 2024

12:00 noon
CIAA Board Room/ 3650 Sen. J. Bennett Johnston Avenue/Lake Charles, LA 70615

ATTENDANCE

Commissioners Present:

Mr. Nora Popillion, President
Mrs. Tuwanna Guillory-August, Vice President
Mr. Charles K. Dalgleish, Secretary/Treasurer
Mr. Bill Hankins, Commissioner
Mrs. Denise Rau, Commissioner
Mr. Lee W. Boyer, Commissioner
Mr. Tad Martin, Commissioner

Others Present:

Mr. Kevin Melton, Executive Director
Mr. Robert Kleinschmidt, Legal Counsel
Mr. Gerald Theunissen, Consultant
Mrs. Andrea LaFleur, Director of Executive & Airport Affairs
Ms. Loretta Hanks, Director of Finance
Mr. John McMullen, Director of Facilities & Maintenance
Mr. Mitch O’Neal, Director of Operations
Mrs. Desiree K. Daigle, Admin. Specialist/Recording Secretary
Ms. Paulette Moss, Accounting Clerk
Mrs. Allison Meche, Purchasing Agent
Mrs. Kristi Carter, Stulb & Associates
Mr. Josh Richard, Stulb & Associates
Mr. Steve Shows, VSG Architects
Mr. Wejee Lechtenberg Jr., Lechtenberg Consulting, Inc.
Mrs. Stacy Dowden, City of Lake Charles
Mr. David Whitaker, DVW Aviation
Mr. Kyle Jones, Rostan Solutions, LLC
Chief Joshua Arnold, Centerra
Assistant Chief Andy Zeunik, Centerra
Mr. Tyson Grenzebach, LandLocked Aviation Services, LLC
Mrs. Cathy Brady, LandLocked Aviation Services, LLC
Mr. Chris Wentworth, Stratigos Dynamics
Mr. Mark McElveen, T-Hangar Tenant

CALL TO ORDER

President Popillion called the meeting to order at 12:00 noon. Following the Pledge of Allegiance, roll was called and a quorum was established as indicated above.

PROPOSED AGENDA

President Popillion requested additions, deletions, and amendments to the proposed agenda and Mr. Melton announced there were none to report.

ANNOUNCEMENTS/REPORTS

Mr. Melton stated that the Federal Emergency Management Agency (FEMA) has obligated $20,894,692.02. Mr. Melton referred to the print out of the Chennault (CWF) Fiscal Overview and stated that it is his personal financial perspective for moving Chennault forward in 2025. Mr. Melton stated that after the first of the year, it is his intention to meet with Governor Jeff Landry, Mrs. Susan Bourgeios, Secretary of the Department of Louisiana Economic Development, and Mr. Taylor Barras, Commissioner of Administration to discuss a long-term financial commitment to Chennault. Mr. Melton stated that he’d like to bring everyone to the table to discuss the importance of Chennault, how underfunded it is, and the potential FEMA efforts moving forward. Mr. Melton reported that we are working on an issue in regards to the Federal Aviation Administration (FAA) possibly shutting down the Lake Charles Radar. Mr. Melton stated that this action would decimate the air traffic operations here at Chennault. Mr. Melton stated that in the last two weeks radar was lost twice. Mr. Melton stated that Mr. Byron Owens, Control Tower Chief reported that it caused absolute chaos. Mr. Melton stated that the issue is that there is no overlap of radar between Lafayette, Louisiana and Beaumont, Texas and unfortunately, Chennault is located right in the middle of it. Mr. Melton stated that he plans to reach out to Congressman Higgins, Congressman Garrett Graves who is the Chairman of the Subcommittee on Aviation, and then to all other congressional delegates. Mr. Melton stated that as we start to renew leases, we need to look at how we have done things in the past from a lease rate perspective and get closer to fair market values. Mr. Melton stated moving forward we need to hire a consultant within the next three months that will provide external expertise and offer an unbiased focus from a business and financial perspective regarding our leases. Mr. Melton stated that per our Auditor we legally would have to go out and compare cost and qualifications.

Mr. Whitaker gave an end of the year update pertaining to potential Air Cargo opportunities and obstacles.

Mr. Melton stated that he and Mr. Whitaker will likely sunset the current agreement, which was a six-month extension. Mr. Melton stated that they will potentially take a different approach to an agreement beginning March 2025. Mr. Melton stated that it may be similar to a finder’s fee which would have to be approved by the board.

Mr. Melton gave a brief summary of the ongoing online marketing and public relation efforts in Mr. Brett Downer’s absence.

ANNUAL AUDIT REPORT FOR FISCAL YEAR ENDING

JUNE 20, 2024

Mr. Melton introduced Mrs. Carter and thanked her and her team for their efforts. Mrs. Carter reported that Chennault had no findings on the audit this year nor on the agreed upon procedures. Mrs. Carter highlighted capital improvements, income, the significant increase in insurance, complete and pending capital projects, and the remaining amount owed to the City for the infrastructure and buy out of the new golf course. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. BOYER, SECONDED BY MR. MARTIN, AND CARRIED UNANIMOUSLY TO APPROVE THE ANNUAL AUDIT REPORT FOR THE FISCAL YEAR ENDING JUNE 30, 2024 AS PREPARED BY STULB & ASSOCIATES.

CITY OF LAKE CHARLES – COOPERATIVE ENDEAVOR AGREEMENT (CEA)

PROPERTY SWAP

Mr. Melton stated that Chennault International Airport Authority and the City of Lake Charles desire to enter into a Cooperative Endeavor Agreement (CEA) to swap Site 10 property for the City’s Public Works property. Mr. Melton stated that this is an acre for acre swap of property and valued equally. Mr. Melton stated that the City agrees to demo facilities and do any required mediation at the Public Works site once the new facility is constructed on Site 10. Mr. Melton stated that the agreement is currently under review by the City. Mr. Melton stated that he clarified in the verbiage exactly what the City is removing with exception of the bus shed canopy and the foundations. Mr. Melton stated that he also added that the public works facility must be removed no later than 2 years from the signature date of the agreement. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MRS. RAU, SECONDED BY MR. HANKINS, AND CARRIED UNANIMOUSLY to adopt a Resolution authorizing the Executive Director to enter into a Cooperative Endeavor Agreement (CEA) between Chennault International Airport Authority and the City of Lake Charles pertaining to the property swap of Chennault International Airport Authority’s Site 10 and the City’s Public Works site.

Mr. Boyer suggested deleting the phrase “as a result of City occupation” on Page 2 of the draft of the Cooperative Endeavor Agreement (CEA). Mr. Boyer asked if a Phase 1 Environmental Assessment is typically done? Mrs. Dowden confirmed that a Phase 1 Environmental Assessment was complete on both the City’s Site and Chennault’s Site. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MRS. RAU, SECONDED BY MR. HANKINS, AND CARRIED UNANIMOUSLY to Amend the Cooperative Endeavor Agreement (CEA) between Chennault International Airport Authority and the City of Lake Charles pertaining to the property swap of Chennault International Airport Authority’s Site 10 and the City’s Public Works site BY REMOVING THE PHRASE “AS A RESULT OF CITY OCCUPATION”.

ROSTAN SOLUTIONS, LLC – AMENDMENT #1 OF THE PROFESSIONAL SERVICES AGREEMENT (PSA)

Mr. Melton stated that the proposed amendment was collectively revised by Chennault International Airport Authority and Rostan Solutions, LLC in order to create a new payment plan that will enable the airport to legally and fiscally support. Mr. Melton stated that this amendment obligates Chennault to a $16,000,000 cap over a seven (7) year period for the FEMA obligated projects which does not include the $4,178,938.40. Mr. Melton stated that the $4,178,938.40 falls under the original agreement and is not part of the $16,000,000. Mr. Melton stated that this amendment has a clause reserving the right for Rostan to renegotiate the amendment should any FEMA funding causes Rostan’s compensation to exceed the $16,000,000. Mr. Melton stated that based on the Projected Rostan Payouts and Timeline breakdown, there could be a delta of $8,183,386.90 that Rostan could request the Board to renegotiate the amendment. Mr. Melton stated that the Audit/Fiscal Affairs Committee had a very good and thorough meeting on December 11, 2024. Mr. Melton stated that Chennault Airport is exposed to significant financial liabilities the way the current Professional Services Agreement (PSA) is written. Mr. Melton stated that is why the amendment has to be complete.

Mrs. Rau stated that the issue is that we can’t get the Federal Emergency Management Agency (FEMA) obligated funds prior to paying the 20-25% Rostan Solutions, LLC fee. Mrs. Rau further stated that we can’t use such funds to pay the fees. Mrs. Rau stated that we are hoping to get support from the government to be able to pay the fees and obtain the funds in order to make repairs, build hangars, etc.

Mr. Hankins reported that the auditor noted on Page 26 of the Annual Financial Report Fiscal Year Ending June 30, 2024 that terms are being negotiated with Rostan Solutions, LLC.

Mrs. Rau shared that boundaries have been placed around how much liability Chennault Airport can assume. Mrs. Rau stated that we have established a viable payment schedule that we can absorb in a fiscally responsible way.

Mr. Melton concurred.

Mr. Hankins stated that the Audit/Fiscal Affairs Committee expressed concerns related to payments.

Mr. Melton asked Mr. Jones to address everyone’s concerns including the auditor and legal counsel regarding paying for services for money that we are not guaranteed.

Mr. Jones cautioned everyone that the auditor can blur the lines regarding FEMA obligations because this is not their expertise. Mr. Jones stated that he doesn’t think the auditor is clear with regards to the term obligation in regards to the federal regulation and how it applies to the Stafford Act, to the Code of Federal Regulations (CFR), and how that money flows back to the State and ultimately on to Chennault Airport. Mr. Jones referred to the amendment which he stated defines the term obligation which has been laid out very clearly in the agreement for the benefit of Chennault. Mr. Jones stated that the Federal Emergency Management Agency (FEMA) has agreed and Congress has already approved the obligated funds. Mr. Jones stated that the obligation is a binding agreement between the agency, Chennault Airport, and the federal government in which the State will be the pass through as required by the State. Mr. Jones stated that we just have to figure out the scope of work under the 428 Alternative Procedures because the $20,894,692.02 was for the Northrop Grumman Hangar A damages and the cost of Hangar A. Mr. Jones stated that we will be able to take the funding and build another paint hangar.

Mr. Kleinschmidt stated that we can report to Mrs. Carter with Stulb and Associates that this is obligated funds even though it isn’t in our checking account and put it on the books.

Mr. Hankins shared that the committee also discussed the paint hangar design process and paying the fee out of pocket.

Mr. Jones stated that he still stands by the March 2025 time frame for the funding to be accessible for Hangar A. Mr. Jones stated that in the event that the State does not pick up the 10% match through the Community Development Block Grant Disaster Recovery Funding that the cost could be applied to the match for the project. Mr. Jones stated however, he believes it is in the approved spend plan under former Governor John Bel Edwards’ administration for the state to use the Community Development Block Grant Disaster Recovery Funding (CDBG) and apply it towards Chennault’s match for public assistance projects. Mr. Jones stated we are still working on it and we do not have a definitive answer for that but in the mean time the money for the architect could be used to apply towards Chennault’s match for the project.

Mr. Jones reiterated that the State is looking at part of the Community Development Block Grant Disaster Allocation Spend Plan. Mr. Jones stated that after Hurricane Laura part of the Spend Plan authorization from former Governor John Bell Edwards’ administration put into Community Development Block Grant Disaster Recovery and approved at the time was match. Mr. Jones stated that the State hasn’t officially done it yet, but it is authorized to use dollars as the match so in theory that is I would think this cost for this engineering would be a good back stop to absorb that match. Mr. Jones stated that we’re trying to get that official letter notification to Chennault as well as our other clients for Hurricane Laura saying that the State is going to pick up the 10% match.

Mr. Melton stated that under the current schedule and as stated in the amended contract, Project 1 is complete and we owe Rostan Solutions, LLC $4,178,938.40. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MRS. RAU, SECONDED BY MR. DALGLEISH, AND CARRIED UNANIMOUSLY TO AUTHORIZE THE EXECUTIVE DIRECTOR TO ENTER AMENDMENT #1 INTO THE PROFESSIONAL SERVICES AGREEMENT (PSA) BETWEEN CHENNAULT INTERNATIONAL AIRPORT AUTHORITY AND ROSTAN SOLUTIONS, LLC.

ROSTAN SOLUTIONS, LLC – APPROVE PAYMENT FOR

OBLIGATED FUNDS

Mr. Melton stated that the payment of $4,178,938.40 is their 20% of the $20,894,692.02 Federal Emergency Management Agency (FEMA) obligated funds. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MRS. RAU, SECONDED BY MR. HANKINS AND CARRIED UNANIMOUSLY TO AUTHORIZE THE EXECUTIVE DIRECTOR TO APPROVE A PAYMENT OF $4,178,938.40 TO ROSTAN SOLUTIONS, LLC FOR SERVICES WITH REGARD TO THEIR WORK FOR THE OBLIGATION FOR FACILITY BUILDS TO GARNER FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA) AND GOVERNOR’S OFFICE OF HOMELAND SECURITY AND EMERGENCY PREPAREDNESS (GOHSEP) OF $20,894,692.02.

HANGAR D FUEL AND DEFUEL PIT GROUND WATER RELIEF

Mr. Melton stated that the ground water is permeating under the containment liners and is causing them to buckle and separate. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. HANKINS, SECONDED BY MR. MARTIN, AND CARRIED UNANIMOUSLY TO AUTHORIZE THE EXECUTIVE DIRECTOR TO PREPARE PLANS AND SPECIFICATIONS FOR, SOLICIT FOR, OPEN BIDS FOR AND AWARD A CONTRACT FOR THE HANGAR D FUEL AND DEFUEL PIT GROUND WATER RELIEF PROJECT.

SINGLE BAY PAINT HANGAR

Mr. Melton stated that the Federal Emergency Management Agency (FEMA) funds have been allocated for Hangar A Hurricane damages and these funds may be used for an alternate project. The construction of the hangar will allow for additional space for our tenants and would create up to 100 jobs. Mr. Hankins asked if we have a signed agreement to lease the paint hangar? Mr. Melton stated that we will have to have a formal commitment. Mr. Grenzebach stated that he will sign a legal binding agreement to lease the paint hangar. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. MARTIN, SECONDED BY MRS. GUILLORY-AUGUST, AND CARRIED UNANIMOUSLY TO PREPARE PLANS AND SPECIFICATIONS FOR, ADVERTISE FOR, OPEN BIDS FOR AND AWARD A CONTRACT FOR THE SINGLE BAY PAINT HANGAR PROJECT.

CITADEL COMPLETIONS, LLC – CLUB HOUSE LEASE AGREEMENT

Mr. Melton stated that the proposed lease will be for an initial term of one year with one additional year option for renewal. The leased premises will be for the storage of panels and equipment. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. HANKINS, SECONDED BY MRS. GUILLORY-AUGUST, AND CARRIED UNANIMOUSLY TO AUTHORIZE THE EXECUTIVE DIRECTOR TO NEGOTIATE AND ENTER INTO A LEASE AGREEMENT BETWEEN CHENNAULT INTERNATIONAL AIRPORT AUTHORITY AND CITADEL COMPLETIONS, LLC FOR SITE 1 BUILDING (FORMERLY MALLARD COVE GOLF COURSE CLUB HOUSE).

EXECUTIVE SESSION

PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MRS. RAU, SECONDED BY MR. DALGLEISH, AND CARRIED UNANIMOUSLY TO ENTER INTO EXECUTIVE SESSION TO DISCUSS PERSONNEL MATTERS PERTAINING TO THE EXECUTIVE DIRECTOR AND POTENTIAL LITIGATION WITH CDL MENTORS. The commissioners began the Executive Session at 1:06 p.m.

REGULAR SESSION

PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. DALGLEISH, SECONDED BY MRS. RAU, AND CARRIED UNANIMOUSLY TO RECONVENE THE REGULAR SESSION. The Regular Session was reconvened at 1:29 p.m. with NO ACTION TAKEN during the Executive Session. Mr. Dalgleish requested a motion to amend the agenda and to authorize a 12% increase to the Executive Director’s base salary effective January 1, 2025 and an additional 5 vacation days retroactive. PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. DALGLEISH, SECONDED BY MR. HANKINS AND CARRIED UNANIMOUSLY TO AMEND THE AGENDA AND TO AUTHORIZE A 12% INCREASE TO THE EXECUTIVE DIRECTOR’S BASE SALARY EFFECTIVE JANUARY 1, 2025 AND AN ADDITIONAL 5 VACATION DAYS RETROACTIVE.

EXECUTIVE DIRECTOR

PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. MARTIN, SECONDED BY MR. HANKINS AND CARRIED UNANIMOUSLY TO INCREASE THE EXECUTIVE DIRECTOR’S BASE SALARY BY 12% EFFECTIVE JANUARY 1, 2025 AND AN ADDITIONAL 5 VACATION DAYS RETROACTIVE.

MINUTE APPROVAL

PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. DALGLEISH, SECONDED BY MR. BOYER AND CARRIED UNANIMOUSLY TO APPROVE THE MINUTES OF THE NOVEMBER 21, 2024 REGULAR MEETING.

ADJOURNMENT

PRESIDENT POPILLION ASKED IF THERE WAS ANY INPUT FROM THE PUBLIC. LET THE RECORD SHOW THERE IS NO INPUT FROM THE PUBLIC. MOTION WAS MADE BY MR. DALGLEISH, SECONDED BY MRS. RAU, AND CARRIED UNANIMOUSLY TO ADJOURN THE MEETING. With no further business to come before the Commissioners, President Popillion declared the meeting adjourned at 1:32 p.m.