BLUE GRASS AIRPORT BOARD CHAIRMAN
ISSUES PROGRESS REPORT
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5. Airport Expenses.

a. Credit Cards. Previously, Airport-paid credit cards were issued to seven employees for Airport-business use. After learning of abuses by certain employee cardholders, the Airport Board directed the destruction of all of the credit cards and terminated the credit card accounts.

b. Airport-owned Automobiles. Previously, Airport-owned automobiles were provided to seven employees for take-home use. Some of these employees were permitted to make personal use of their Airport-owned automobiles. Following a review of this situation, only two Airport employees are now permitted to commute to and from their homes in Airport-owned automobiles. These employees are the Chief of Public Safety and the Manager of Maintenance. Although these two employees are permitted to commute to and from their homes in Airport-owned automobiles, they are not permitted to make other personal use of those automobiles.

c. Employee Compensation. The Airport Board has undertaken a review of the compensation of its employees. We have engaged a consultant to help us developed data regarding the compensation of employees assigned similar duties at airports serving comparably-sized communities, as well as other relevant information. We anticipate reviewing this data during the coming weeks and making appropriate changes to employee compensation packages.

d. Employee Travel. Beginning during January, the Airport Board has limited employee travel. We anticipate the Airport’s priorities for 2009 will require significantly less travel than has been undertaken during the past couple of years.

e. Club Memberships. The Airport Board has terminated a number of employee club memberships for which it had paid.

f. Cell Phones and Other Devices. The Airport Board has taken steps to reduce the cost and types of service available for employees. For example, employee use of Airport-provided cellular phones is now limited to business use only, and we have discontinued the text service for which the Airport formerly paid.

g. Industry Organization Memberships. We have undertaken a review of the airport trade organizations in which the Airport’s employees participate at the Airport’s expense. Although we have not yet taken action, I anticipate that the Airport will reduce the number of airport trade organizations in which we participate.

6. Staff Organization and Reporting. The resignation of the four top executive employees has created a unique opportunity for the Airport Board to review the staff organization and consider changes. Although we have not yet made any changes, I anticipate working with Eric Frankl to implement changes to improve the operations and efficiency of the Airport and the accountability of its employees.

7. Return of Airport Property and Reimbursement for Inappropriate Charges. The Airport has paid for a number of items for which it should never have been charged. The Airport Board has taken prompt action to seek reimbursement for inappropriate charges and return of property purchased with Airport funds. Although this process continues, we have made substantial progress in recovering the Airport’s money and property.