Wednesday, March 29, 2017 The Nugget Newspaper, Sisters, Oregon
Continued from page 1
In a letter to airport owner
Benny Benson dated March
21, ODOT Transportation
Development Division
Administrator Jerri L. Bohard
writes, “ODOT demands that
the total amount of ($390,185)
be returned to ODOT by April
6, 2017.”
The Nugget asked airport
owners Benny Benson and
Julie Benson whether they
accept or dispute the findings
of the compliance review and
inquired as to their intended
course of action. Benny
Benson replied: “Unlike
ODOT’s current approach of
a surprise demand letter and
an associated media splash,
the Sisters Airport and its
principals, Benny and Julie
Benson, will follow Oregon
Administrative Procedures in
the review and response.”
ODOT public affairs man-
ager David Thompson told
The Nugget that “There’s
no formal appeal process
spelled out in the grant agree-
ment. We’ve made a demand
for repayment based on our
compliance review; we’ll see
how the airport management
responds, and then decide our
next course of action.”
Sisters Airport Property
LLC and ODOT entered into
a grant agreement in May
2015 in which the airport was
to receive an amount not to
exceed $733,259 to be used
for construction of a taxiway,
pavement of aircraft parking
and ramp areas, installation of
runway lighting, and improve-
ments associated with those
projects.
Acting on a citizen inquiry,
ODOT conducted a review of
project records and invoices
and a financial review of the
administration of the grant.
Thompson told The Nugget
that “ODOT worked closely
with the Oregon Department
of Justice to conduct the proj-
ect compliance review.”
According to the ODOT
letter, the review concluded
that “ODOT paid invoices
submitted by the Grant
Recipient (the airport) that
are ineligible project costs
totaling $377,152.” (The full
12-page letter is available
with the online version of this
story at www.nuggetnews.
com.)
The letter lists eight cat-
egories of ineligible project
expenses, including work
on a hangar and $57,976 in
construction associated with
a drainage runout area that
was constructed on prop-
erty not belonging to the air-
port. As project managers,
ENERGYneering Solutions,
Inc. (ESI) charged $20,000 in
mobilization costs.
“Generally, mobilization
costs are paid to contractors,
and not to project managers,”
the letter states. “Because ESI
is a project management firm
that was already located at
the project location, no mobi-
lization should have been
required.”
The compliance review
also found that $215,436 in
payments to Benny Benson,
ESI and B2 Aviation were in
violation of the grant agree-
ment, which “prohibits offi-
cers, employees or agents of
Sisters Airport Property LLC
from soliciting or accept-
ing gratuities, favors or any
item of monetary value from
Graphic courtesy:
www.pateydesigns.com
AIRPORT: Grant
agreement dates
to May 2015
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contractors, potential contrac-
tors or parties to sub-agree-
ments of the Project.”
The Bensons and ESI
were project managers for the
improvements.
The letter demands repay-
ment of the funds paid to
them.
The review also deter-
mined that the airport has
not provided the 20 percent
matching funds required under
the grant agreement, and that
that “even if it makes a full
repayment, Sisters Airport
must contribute an additional
$13,033 to meet the statutory
matching fund requirements.”
ODOT is also reviewing
the airport’s compliance with
a previous ConnectOregon IV
grant agreement. The compli-
ance review letter demands
documentation from the air-
port regarding that agreement.
The airport has been the
focus of intense community
interest since improvements
got underway in the wake of
annexation into the City of
Sisters in 2014. The airport
has hosted increased aviation
activity, including a highly
regarded student aviation pro-
gram affiliated with Sisters
SUMMARY TABLE OF AMOUNTS DEMANDED BY ODOT
Item#
Description
Cost----
1. A.
Hangar Project
$4,716
1. B.
Runway Protection
& Drainage Runout Area
$57,976
1. C.
Mobilization
$20,000
1. D.
Payments to Airport Managers,
Benny Benson, ESI and B2 Aviation
1. E.
Improper verification to support
invoices
$215,436
$3,821
1. F.
Double Billing
1. G.
AWOS System (Weather Balloon)
1. H.
Airport Fuel and Storage Discounts
$8,520
Sub Total Ineligible Project Expenses
$377,152
2.
$3,191
$63,462
Amount owed to meet Minimum
Match Requirement
$13,033
Total Ineligible Project Expenses
and Matching Funds
$390,185
31
High School, and a controver-
sial skydiving operation.
The Bensons have asked
the Oregon Department of
Aviation to include Sisters
Eagle Airport on Oregon’s list
of airports of state concern.
The aviation board voted
unanimously to do so on
March 7, then unwound that
decision after discovering that
31 emails had been left out of
the record and staff report that
the board voted upon. A vote
was rescheduled for April 20.
The listing in Appendix
M/Exhibit 2 as a privately
owned, public-use airport of
State concern would have lit-
tle direct impact on the opera-
tions of the airport, but would
make the airport eligible for
State Pavement Maintenance
Program (PMP) for Airports
of Significance.
According to ODA
Director Mitch Swecker, “the
ODOT findings are a com-
pletely separate issue. The
issue doesn’t change anything
for us. Our very narrow issue
is only whether or not the air-
port meets the three criteria
(for listing). The timing of
the results of the investigation
by ODOT are coincidental,
unfortunately, and therefore
could be conflated to be linked
to Appendix M/Exhibit 2. Per
our legal advice, our job is to
follow the law and continue to
be fair to all the parties.”
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