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Audit Report 2014-4 Presentation to the BCC/CCAA
BCC/CCAAMeeting ImmokaleeRegionalAirport DragStripandGoCartTrack February25,2014 DwightE.Brock 1 2 Overview 2013 •OnApril23,1999,theCollierCountyAirportAuthority(CCAA) enteredintoalicenseagreementwithImmokaleeRegional Racewayforthesolepurposeofoperatingan“IHRASanctioned DragRacingStrip”notingdragracingisaninherentlyrisky activityandimposingadditionalsafetyrequirements. –TheAgreementwaseffectivefromApril1,1999through March31,2002. –Nopermanentimprovementswereallowed. –BeginningMay1,1999,aminimumpaymentof$2,000wasrequired with$1,000foreachweekofactivity. •OnMarch11,2002,theCCAAenteredintotheFirstAmendment toextendtheinitialagreementthroughMarch31,2007. –Requiredamonthlypaymentof$2,750. 3 Background •OnMay13,2002,theExecutiveAirportDirectorindicatedtherewere permittingproblemswiththeCountybecausetheCountydidnotwant toissueapermittocompleteconstructionofapermanentbathhouse whenthedragstripwasallowedunderatemporaryusepermit. •OnNovember13,2006,theExecutiveAirportDirectorindicateda bathhouse,completedinconjunctionwiththecampground,would needrelocatedinordertoproceedwiththedevelopmentoftheairport. –TheowneroftheImmokaleeRegionalRacewayexpressedaninterestin relocatingthebathhousetothedragstrip. •OnDecember11,2006,theImmokaleeRegionalAirportManager providedtheowneroftheImmokaleeRegionalRacewayaletter approvingrelocationattheowner’sexpense. –Ownertopayallassociatedexpensesincurredforthebathhouserelocation. –Ownertoobtainallnecessarypermitspriortocompletingrelocation. –Thebathhousewasrelocatedtothedragstrip(outsidetheleaseoperational area).4 Continued… •Between2005-2006,agocarttrackwasbuiltattheendof theclosedRunway4/22. –Gocartoperationcommenced2006/2007. –Gocarttrackwasoutsidetheleaseoperationalareaofthedrag strip. •Gocartoperationswerenotaddressedintheleasewith theImmokaleeRegionalRaceway. •In2008,thepitarea(i.e.coveredstructure)atthegocart trackwasconstructed. •OnJuly13,2009,theExecutiveAirportDirectorlowered theImmokaleeRegionalRaceway’sleasepaymentsfrom $2,750to$1,188withoutCCAAapprovalorFAAapproval. 5 Continued… 6 2009CollierCountyAirportAuthorityInvoice(landlease) RentReductionapprovedbyExecutiveAirportDirector Summary: •Leasepaymentswere loweredfrom$2,750 to$1,188without CCAAapprovalorFAA approval. •Lowerleasepayments approvedbyExecutive AirportDirector. •OnDecember7,2010,theFAAexpressedconcern regardinguseofaeronauticallandfornon-aeronautical useonairsidelandandleasingthelandforlessthanfair marketvalue(FMV). –Theairportlayoutplan(ALP)wasrequiredtobeupdatedto showactualpropertyuse. •OnJanuary12,2011,theExecutiveAirportDirector providedalettertotheFAAformallyrequesting permissiontousetheclosedRunway4/22for non-aeronauticaluseasadragstrip. –Thegocarttrackoperationsandbathhousewerenotidentified intheletterandpermissionwasnotrequestedforthose activities. 7 Continued… Summary: •DragStriplease operationsarea is1,500feetby 250feet. 8 2011 Summary: •DragStriplease operationsarea is1,500feetby 250feet. 9 2013 10 ImmokaleeRegionalAirport–1/22/2014 FieldWorkPhotographs–DragStrip DragStripStartingLine Bleachers •OnFebruary22,2011,theFAAcommunicated“noobjection” tothecontinueduseofthepropertyforadragstrip provided : –Anythingverticalorhorizontalthatwasconstructedfortheoperation besubmittedasanALPchange(TheALPhasnotbeenupdatedforthe changes). –Compensationistreatedasairportrevenue. –Termsoftheagreementareonamonthtomonthbasisandwillrevert toaeronauticaluseifrequiredtomeetaeronauticaldemand. –TheagreementwillnotbeamendedorrenewedwithoutFAA concurrence. •OnMarch22,2011,theCCAAenteredintotheSecond Amendmenttotheagreement. –Tocontinueonamonthtomonthbasis. –Requiredamonthlypaymentof$2,500(RatewaslessthanFMVand priortoJuly2009therentratewas$2,750).11 Continued… Summary: •Therewasnogo carttrackatthe endoftheclosed runway. 12 2005 Summary: •Between2005- 2006apavedgo carttrackwas constructed. •Thelocationdid nothave structures. •Thereisnolease forthe constructedasset orproperty. 13 2006 Summary: •Gocarttrack becamefully operationalin approximately 2006-2007. •Vehicleswere addedtothe premise. 14 2007 Summary: •“PitArea”was constructed includinga coveredstructure. 15 2008 16 2014 Summary: •Operating companyisnot underleasewith theCounty. •Permanent structureshave beenconstructed ontheproperty. 17 2014 Summary: •Operating companyisnot underleasewith theCounty. •Permanent structureshave beenconstructed ontheproperty. Summary: •Nosignificant apparentchanges. 18 2009 Summary: •Thegocarttrack centerareahas beenexpanded withbendsadded. 19 2010 20 2011 Summary: •Nosignificant apparentchanges. 21 2012 Summary: •Nosignificant apparentchanges. 22 2013 Summary: •Nosignificant apparentchanges. •Recreationalvehiclesandgocarttrackoperations and/orrelatedstructures(i.e.pitarea)arenota permitteduseintheAirportOperationsTractand havenotreceivedFAAapproval. –Lackofappropriatezoningforoperations. –Structuresforthedragstripand/orgocarttrackhavenot obtainedproperpermitsorproperapproval. •TheCountyhasnotcompliedwithFAArequirements toobtain“noobjection”forthedragstrip operations. –Lackedpriorapproval. –AirportLayoutPlan(ALP)hasnotbeenupdatedtoinclude operationsandconstruction.23 SummaryofFindings 24 2014 Summary: •Permanent structureshave beenconstructed ontheproperty. ImmokaleeRegionalAirport–1/22/2014 FieldWorkPhotograph–DragStrip •Airportoperationshavelackedoversight. –Thereisnoleaseforthegocarttrack/operations. –Theleaseforthedragstripdoesnotincludeall activitiesconductedbythetenant(i.e.recreational vehicles,concessions,etc.). –Dragstripoperationsarebeingconductedoutsideof theoperationalarea. –Existinginsurancemaynotbesufficienttocoverall operations. –TheCountyhaslostrevenue. –Accesstoairsidelandhasnotbeenlimitedto authorizedindividuals/activities. 25 Continued… 26 ImmokaleeRegionalAirport–1/31/2014 FieldWorkPhotographs–DragRaces RecreationalVehicles(self- containedmotorhomes) 27 ImmokaleeRegionalAirport–1/31/2014 FieldWorkPhotographs–DragRaces TireMounting &PartsSales NitrousRefills 28 2012Insurance “…onlyasrespectsliabilityarisingout oftheoperationsofthenamedinsured.” Summary: •Insurancedoesnot appeartoincludego cartoperations. •Thereisnoagreementinplaceidentifying theresponsibilitiesforthebathhouse locatedatthedragstrip. –Thebathhouseislocatedoutsideofthedrag stripoperationarea,butisusedfordragstrip operations. •Relocationofthebathhousedidnotobtain grantorapprovalorproperpermits. 29 Continued… Summary: •Bathhousewas relocatedtothe dragstripfrom thecampground. •Thebathhouseis outsidethedrag stripoperation area. •Bathhouseisa permanent structure. 30 2014 31 TheCCAAshould : •Resolvezoningconcernsandobtainacomparableuse determinationletter,iftheCountyallowsoperations. •TheImmokaleeRegionalAirportMasterPlanandAirport LayoutPlanshouldbeupdatedtoincludeauthorizedusesof land. •FAAapproval(i.e.“noobjection”)shouldbeobtainedfor recreationalvehicleactivitiesandgocarttrackoperationsas anon-aeronauticaluseofairsideland,iftheCountyallows operations. –FAAshouldapproveleasesthatarelessthanFMV. •ReviewallactivitiesattheImmokaleeRegionalAirportfor complianceandleases. OverallRecommendations 32 •Verifyinsurancecoverageisinplacewithpropercoveragefor allairportactivities. •Verifyrenthasbeenreceivedfromalltenantsandthatall tenantshavevalidleases. •Limitairsidelandaccesstoonlyauthorizedindividualsand activities. •Verifyproperpermittingforallstructuresbuiltforthedrag stripand/orthegocarttrackoperations. •Verifyconcessionshavebeeninspectedandapprovedbythe CountyHealthDepartmentandthatapermithasbeen issuedforoperations. •Grantorapprovalshouldbeobtainedfortherelocationofthe bathhouse. Continued… 33 •TheImmokaleeRegionalRacewayagreementshouldbe amendedtoincludetheresponsibilitiesofeachpartyforthe usageofthebathhouse. •StructuresusedbytheImmokaleeRegionalRacewayshould beincorporatedintotheagreement. •Properpermittingshouldbeobtainedfortherelocationof thebathhouse. •ProvideFinancetheappropriatedocumentationtoupdate assetrecords. •Reviewtheoperationsforspecialeventsandmakesurethe tenantiscomplyingwithsafetyandsecurityrequirements suchashavingafiretruck,ambulance,and/orsecurity. •Verifyinfrastructureandutilitiesbeingused. Continued… 34 Inthefuture,theCCAAandCountyshould : •EnsurealloperationsareproperlypermittedbythePUDat theImmokaleeRegionalAirport. •ProvideoversighttotheImmokaleeRegionalAirport operations. •ComplywithFAAassurancesandrequirementsforallairport activities. •ObtainadvanceFAAapprovalforallnon-aeronauticalleases. •ObtainBoardandgrantoragencyapprovalforfutureproject modifications. •Takecarewhenenteringintoresolutionsandagreementsto ensurealldatesandinformationareaccurateandconsistent. OverallRecommendations 35 •TheAirportManagementhasnotprovided propermanagementoversighttothe ImmokaleeRegionalAirportleasesand/or operationsbylessees. •TheCCAAisinviolationofgrantor requirementsandFAAassurances. •Careshouldbetakentoquicklyresolvethe issuesidentifiedthroughthisauditand preventfutureinstancesofnon-compliance. Conclusion 36 ThankyoutoCountystaff foraddressingissuesinitially raisedbyInternalAudit 37