HomeMy WebLinkAbout2001-01-04 - Agendas - Final AGENDA FOR THE AIRPORT BOARD MEETING
1 :30 p.m., January 4, 2001
Conference Room, Terminal Building
Fayetteville Municipal Airport - Drake Field
4500 S. School Avenue
I Call to Order.
2. Introduction of New Members.
Frank Sperandeo - full term
Michael (Mike) Andrews - unexpired term
3 . Recognition of Rick McKinney - Year 2000 Chair.
4. Comments from the Chair.
5 Minutes of the December 7, 2000, meeting.
6. Old Business:
a. Airport Board policies and Procedures - Report by Charles Wallace
b. Report on City Council actions - Ernest Lancaster Drive and McClelland Engineers-
Report by Alett Little.
c. Re-establishment of 3/4 mile visibility minimums on localizer 16
7. New Business:
a. DHL Lease
b. Airfield Pavement Rehabilitation.
8. Other Business:
a. Marketing Report
b. List of T7hangar leases signed in December
9. Adjourn.
FAYETTEWLLE
THE CrrY OF FAVETrEVILM ARKANSAS
FRED & HANNA, MAYOR
4500 S. Sebool Ave� Ste. A
FayettevilK AR 72701
Teleptione: 501-575-Mi
Fax: 501-5754004
e-mail: alittle@eLfayettevillearms
Econondc Development Department
Alen S, Little, Director
December 27, 2000
Mr. Dilip Yajnik
for DHL Airways, Inc.
Hanscomb, Inc.
500 Grant St.
Akron, Ohio 44311
Dear Mr. Yajnik:
Attached is a revised draft lease. The following changes to the draft leaw have been made:
1 . The initial term of the lease has been extended to 2 years at a rate of$175.00/month.
2. The overall term of the lease with extensions has been extended from five years to seven years
and the rent payment schedule has been stretched so that the rate of$550/month will be reached in
year six as opposed to year 4 as in the initial draft lease.
3. A one-time grace period for late payment of rent has been added to the first year of the Icase so
that the company may accustom itself to the payment schedule without lurring a late fee.
4. The thirty day notice to terminate has been changed to a ninety day notice to terminate.
Paragraph 10 on page 4 specifically spells out that no subleases may occur without the written
consent of the Lessor. We do not unreasonably withhold sublease approval; however we are not
willing to agree that DBL may sublease without our approval. I am sorry that I cannot grant your
wording on that issue, but as stewards of public property we must always exercise proper oversight.
I trust that the other concmions granted in your fitvor will suffice so that the lease can be finalized.
Please feel free to call upon me if I may offer any other &%istance.
On the matter of the estimate for the renovations to be undertaken at DBUs expense, I have visited
the fire station on two occasions with the construction company, and I gave verbal instructions over
the telephone today for him to proceed with an estimate on the attached detailed work. I tnist this
will also help to expedite the proem.
Sincerely,
az,76L
Alett Little
Econornic Development Director/
Airport Manager
Tasks to be Estimated by Construction Company
1 . Install 13 minillinds
2. Construct and install counter with formica top and fi-ont side. Counter is to have a swing door
and shelves (wooden, painted) on the rear side.
3. Construct and install 2 oak valances to match existing over the miniblinds in the front room.
(One window already has an oak valance 2 3/4" wide over the window).
Estimate for Other Items
1 . Airport will obtain estimate for cost of miniblinds and finmish to Hanscomb
2. Airport will obtain estimate for moving 220 receptacle to opposite side of truck bay
Work Items to be Accomplished by Airport
I . Clean floors
2. Paint interior walls
3. Order blinds (DHL will be responsible for reimbursing this cost)
4. Repair door in room with lockers
5. Repair wall in room with lockers
6. Replace aU damaged/stained ceiling tiles
7. Replace all damaged/missing floor coving
—DRAFF--DRAFr—DRAFr—DRAFr�DRAYr—DRAFr--DRAFr—DRAFT-
SUBJECT TO APPROVAL BY THE AIRPORT BOARD & CITY COUNCIL
LEASE
.between the City of Fayetteville, Arkansas
and
DHL Airways, Inc.
This LEASE is executed this . day of 20� by and
between the City of Fayettevik Arkansas, 113 W. Mountain St., Fayetteville, AR, 7270 1 ,
hereinafter called "Lessoe' and DHL Airways, Inc., of the State of Delaware hereinafter called
"Lessec."
1 . Leased Premises. Lessor leases to Lessee, and Lessee leases from Lessor, the property
at 4140 S. School Avenue, containing approximately 799.25 square feet of office space and
1 , 179.99 square feet of garage/storage area, located on the premises of the Fayetteville Municipal
Airport - Drake Field. hereinafter called "Airport", as reflected on Exhibit "A" attached hereto
and made a part hereof
2. Term of Lease. The term of this Lease shall be:
A. Initial Term. A period of two (2) years commencing on the date of this Lease,
and expiring at midnight unless otherwise terminated, canceled or extended as set forth herein
below.
B. Qption to Extend. Lessee shall have the option to extend the Lease Term for
fiiur (5) consecutive one (1) year terms, under the same terms and conditions of this Lease,
provided:
(1 ) Lessee has compiled with and performed all conditions, covenants, and
terms of this Lease without any uncorrected defaults if known to Lessee, or any defaults that are
not otherwise in the process of being resolved in the manner provided in this Lease.
(2) Notice of Lessee's intent to renew has been made in writing to Lessor
at least thirty (30) days prior to the expiration of the term.
3. Rental Charges.
A. Initial Terrn. During the initial term of this lease, Lessee agrees to pay Lessor
for the use of the Leased Premises the surn of$ 175.00 per month. However, should the lease
term begin on a day other than the first day of the calendar month, or should the lease end on a
day other than the last day of the calendar month, such partial month lease payment shall be a
prorated share of the monthly lease payment. The nutial lease payment is due and payable upon
execution of thi3lease lease, and all subsequent monthly lease payments shall be due and payable
in advance on or before the &st day of the calendar month thereafter. A delinquency charge will
be imposed on all payments not received by the close of business on the tenth day after the due
date except that one (1 ) grace period in the first year of the Lease shall be allowed. The grace
period is allowed for the purpose of establishing the payment schedule and accustoming the tenant
to the payment schedule. Such del*uency charge shall be the maximum amount allowable under
Arkansas law. All payments shall be delivered to: Fayetteville Municipal Airpom 4500 S. School
Ave., Suite F, Fayetteville, AR 72701 .
B. Extended Term. The schedule of Rental Charges for the remaining five (5) option
years shall be as follows:
(1 ) Year 3 $225/month
(2) Year 4 $300/month
(3) Year 5 S425/month
(4) Year 6 $550/month
(5) Year 7 $550/month
4. Insurance and IgdMgAy. Lessee shall maintain in force during the Terra, and any
extended terra, public liability and property damage insurance in comprehensive form as
reasonably may be required by the Lessor and outlined in the Airport Minimum Standards. The
insurance shall be issued by an insurer licensed to do bushiess in the State of Arkansas. Proof of
insurance shall be provided to the Airport. Further, no change or cancellation of the insurance
shall be made without 30 days notice to the Airport.
5. Utilities and Janitorial Services. Lessee shall be responsible for the installation,
relocation, modification and maintenance of all utility services to or on the Leased Premises. This
shall include any power, gas, telephone, electricity, heating, water, sewer, storm water and all
other utility services not enumerated specifically. Lessee shall pay as the same become due, all
utility and other charges incurred in the operation, maintenance, use, occupancy, repair and
upkeep of the Leased Premises and the improvements located thereon. Lessee shall provide for
and supply at its expense all janitorial service with respect to the Leased Premises.
6. Use. Lessee shall have use of the Leased Premises as follows:
A. Lessee agrees to observe and obey all ordinances, rules and regulations
promulgated by Lessor with respect to use of the Airport and the Leased Premises; provided,
however, such ordinances, rules and regulations shall be consistent with safety and with rules,
regulations and orders of the Federal Aviation Administration with respect to aircraft operations
at the Airport; and provide further, such rules and regulations shall not be inconsistent with the
provisions of this lease or the procedures prescribed or approved from time to time by the Federal
Aviation Administration with respect o the operations of Lessoe at the Airport. Lessee shall be
entitled only to use the Leased Premises for lawfijl purposes. Lessee agrees that it is understood
that Lessee is not permitted to engage in ah-craft maintenance activities of any nature in said
space,
a Airpo B. Subject to Federal Aviation Administration, hereinafter referred to as "FAA"
ad rt Security and Airport Operational Rules, Airport Minimum Standar&% Regulations
Page 2
and Procedures, Lessee shall be entitled to use, on a nonexchisive basis, public areas of the
Airport and nmwayws, taxiways, aprons, lighting navigation aids, and other facilities necessary for
the operation of aircraft and activities related to Lessee's business.
C. Lessee shall not permit the accumulation of any rubbish, trash or other waste
material on the Leased Premises.
7. Reservation of Rights.
A. Lessor reserves the right to take such action as may be necessary to protect
the aerial approaches of the Airport, against obstruction in accordance with the applicable
standards and/or requirements.
B. Lessor also reserves for itself and its licensees, an avigation easement in, over
and across the airspace above the Leased Premises and the unrestricted right to subject the Leased
Premises to such Airport noise and vibration as may result from the flight of aircraft, warm up of
engines, testing of nwtors and other aviation related activities.
C. Lessee, its representatives, agents, invitees and licensees, shall have the right
of ingress and egress to and from the Leased Premise& Lessor reserves the right to close any
means of ingress and egress, so long as other reasonable means of ingress and egress to the
Leased Premises are available to Lessee.
D. Lessor may enter the Leased Premises at any reasonable time for any
reasonable purpose necessary or incidental to the perforniance of its obligations hereunder.
8. Termination.
A. Lessor or lessee may terminate this lease at any time by gwimig the other party
ninety (90) days written notice of termination.
B. At the expiration or termination of this Lease, Lessee agrees to surrender
possession of the Leased Premises peacefully and promptly to the Lessor in as good condition as
existed at the effective date of this Lease, normal wear and tear excepted. Lessee's rights to use
of the Leased Premises shall cease. All fixtures, irnprovernents� equipment, and other property
installed, erected or placed by Lessee on the Leased Premises shall be deemed to be personalty
and shall remain the property of Lessee. Lessee shall have the right at any time during the term of
this Lease, to remove any or all of such property from the Airport, subject, however, to Lessee's
obligation to repair all damages, if any, resulting from such removal. Any and all property riot
removed by Lessee prior to the expiration of this lease shall thereupon become the property of
Lessor and title thereto shall thereupon vested in Lessor, or Lessor nay require removal and
restoration by Lessee.
9. 1pdprom
.�D( Lessee agrees to indemnify Lessor against all liability for injuries to persons
or damage to property caused by Lessee's use or occupancy of the Leased Premises; provided,
I I
however, Lessee shall not be liable for any injury, damage, or loss occasioned by the negligence of
Lessor or its agents or employees including but not limited to hazardous substances. The Lessor
Page 3
shall give notice to Lessee of any such liability, loss, suit, claim or demand, and Lessee shall
defend same using counsel reasonably acceptable to the Lessor. No word, sentence, paragraph or
phrase shall be consumed to waive that tort immunity as set forth under Arkansas Law. The
provisions of this section shall survive the expiration or early termination of this Lease.
10. Assigning. Subletting and Encumberin
A. Lessee shall not at any time sublet the Leased Premises, nor permit other
persons to occupy said Leased Premises or any part thereot nor grant any license or concession
for all or any part of said Leased Premises, or assign its rights under this Lease without the
written consent of Lessor. No such subletting or assignment shall release Lessee from its
obligations to pay the rental set forth herein.
B. Notice as provided for herein shall be sufficient if sent by Certified Mail,
postage prepaid, addressed as follows:
Notice to Lessor
Airport Manager's Office
4500 S. School Ave., Ste. F
Fayetteville, AR 72701
Notice of Lessee: (COPY to:)
DHL Airways, Inc. DHL Legal Department
ATTN: Manager One Post Street, Suite 2450
Corporate Real Estate San Francisco, CA 94104
333 Twin Dolphin Drive 415.986.8881
Redwood City, CA 94065
650.802.4507
All covenants, conditions and provisions in this Lease shall extend to and bind
the legal representatives, successors and assigns of the respective parties hereto.
11 . IndWrident Contractor, This Lease shall not be deemed or construed to create any
relationship or joint venture or partnership between the parties, to give the Lessor any interest in
the business of Lessee, or to grant to Lessee any powers as an agent or representative or the City
or Airport for any purpose or to bind the City or the Airport. Lessee shall be an independent
contractor owning and operating its business as herein described.
12. Governmental Reouirements
A. Governmental Eauirements - General Lessee shall comply with all
Governmental Requirements applicable to Lessee's use and operation of the Leased Premises.
V.1ithout limiting the generality of the foregoing, Lessee shall at all times use and occupy the
Airport in strict accordance with all laws, rules, regulations, mmiumun standards and security
plans that may be imposed by the FAA, the Airport, the state, federal or city government with
Page 4
respect to the Airport and operations thereot including but not limited to procuring all licenses,
firanchism certificates, permits, and authorizations necessary to conduct business.
B. No Liability for Exercise of Powers. The Lessor shall not be liable to Lessee
for any diminution or deprivation of its rights which may result from the proper exercise of any
power reserved to the Lessor in this Lease or by reason of governmental requirements; Lessee
shall not be entitled to terminate this Lease by reason therco� unless the exercise of such power
shall interfere with Lessee's rights hereunder so as to constitute a termination of this Lease by
operation of law.
C. Nondiscrimination Lessee, and its successors in interest, and assign=, as part
of the consideration hereot hereby do covenant and agree, as a covenant running with the land,
that in the event facilities are constructed, maintained or otherwise operated on property
described in this Lease for a purpose for which a Department of Transportation program or
activity is extended or for another purpose involving the provisions of similar services or benefits,
Lessee shall remain and operate such facilities and service in compliance with all other
requirements imposed pursuant to Title 49 CFR Part 21 , Nondiscrimination in Federally-Assisted
Programs of the Department of Transportation-Effectuation of Title VI of the Civil Rights Act of
1964, as said regulations may be amended.
Lessee, and its successors in interest, and assignees, as a part of the consideration heroot
do covenant and agree hereby that: (1) no person shall be excluded from participation in, denied
the benefits of, or otherwise be subjected to discrimination in the use of said facilities on the
grounds of race, color, creed, national origin, sex or disability, (2) in the construction of arty
improvements on, over or under such land, and the finnishings of services thereon, no person shall
be excluded from participation in, denied the benefits o� or otherwise be subjected to
discrimination in the use of said facilities on the grounds of race, color, creed, national onigi sex
or disability; (3) Lessee shall be responsible for maintaining the Leased Premises and services in a
martner which complies with the parties' respective obligations under 14 CFR Part 382,
NONDISCRIMINATION ON THE BASIS OF HANDICAP IN AIR TRAVEL, under the
Uniform Federal Accessibility Standards (UFAS), or substantially equivalent standards; under 49
CFR part 27, NONDISCRIMINATION ON THE BASIS OF HANDICAP IN PROGRAMS
AND ACTIVITIES RECEIVING OR BENEFITTING FROM FEDERAL FINANCIAL
ASSISTANCE; and under 42 U.S.C.S. §§ 12101 , et seq., THE AMERICANS VATH
DISABILITIES ACT of 1990, or a substantially equivalent standard; and (4) Ic&VAX will be
responsible for any alterations and/or construction made during the initial lease period or any
extensions or renewal within the demised space, the subject of this Lease, which my be mandated
by or necessary to meet the requirements of the statutes and regulations cited above and other
relevant Federal, State or local laws, statutes and regulations cited above and other relevant
Federal, State or local laws, statutes and ordinances that relate to disabled accessibility standards.
To the extent applicable, Lessee assures that it will undertake an Affirmative Action
Program as required by 14 CFR Part 152, Subpart E to ensure that, on the grounds of race, color,
creed, national origin or sex, no person shall be excluded from participating in any employment
activities covered in 14 CFR Part 152, Subpart E. Lessee assures that it will require that its
covered suborganizations provide assurances to the Airport that they similarly will undertake
Page 5
Affirmative Action Programs and that they will require assurances from their suborganbations as
required by 14 CFR Part 152, Subpart E to this same effect.
13. Miscellaneous
A. Sevemhg�y. In the event any provisions of this Lease shall be held invalid or
unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenfbrceable any other provision hereo� unless such holding shaft materially affect the rights of
either party as set forth herein.
B. Entire Lease: Modification. This Lease expresses the entire understarxIing of
the Lessor and Lessee concerning the Leased Premises. Neither the Leswr nor Lessee has made
or shall be bound by any Lease or any representation to the other concerning the Leased Premises
or the subject matter hereof which is not set forth expressly in this Lease. 11iis Lease may be
modified only by a written Lease of subsequent date hereto signed by the Lessor and Lessee.
C. Non-Waiver. Neither the waiver nor any forbearance of remedy by the Lessor
of any breach of Lessee of any provision hereof shall operate as a waiver for any other breach by
Lessee.
D. Execution of Comatgpart . This Lease simultaneously may be executed in
several counterparts, each of which shall be an original and all of which shall constitute but one
and the same instrument.
E. Choice of Law. This Lease shall be construed and enforced in accordance with
the laws of the State of Arkansas.
F. Force Ma ure. Neither the Lessor nor Lessee shall be deemed in violation of
this Lease if it is prevented from performing any of the obligations hereunder by reason of
embargoes, shortages of material, acts of God, acts of the public enemy, acts of superior
governmental authority, weather conditions, floods, riots, rebellions, sabotage, or any other
circumstances for which it is not responsible or which are not within its controL and the time for
performance automatically shall be extended by the period the party is prevented from performing
its obligations hereunder.
G. Binding Effect This Lease shall be to the benefit of and shall be binding upon
the Lessor, Lessee and their respective successors and assignees, if such assignment shall have
been made in conformity with the provisions of this Lease.
Page 6
IN WMM WHEREOF, the parties have executed this Lease on the day and year first above
writtem
CITY OF FAYETTEVILLE, ARKANSAS
Lessor
Mayor
ATTEST:
By
City Clerk
DHL AIRWAYS, rNC.
Lessee
By
Title:
ATTEST:
By.
Title:
Page 7
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DAN COODY, MAYOR
4500 S. School Ave., Ste. A
Fayetteville, AR 72701
Telephone: 501-575-8301
Fax: 501-575-8304
e-mail: aliftle*ci.faye"eville.ar.us
Economic Development Department
Alett S. Little, Director
TO: Airport Board
FROM: Alett Little, Airport Manager
DATE: January 2, 2001
SUBJECT: Airfield Pavement Rehabilitation
Task Order #8 with McClelland Engineers is /fiengineering services for Airfield Pavement
'rJ.
Rehabilitation, Replacement, and Expansion. The project has been recommended by our project
manager at the FAA as an advisable use of AIP funds. The scope of the project is to review and
evaluate the current condition of existing airfield pavement including the pavement study by et
Garver conducted in the past. Additionally, three new areas of pavement are to be designed:
1 . Apron to the cast of the existing T-Hangars
2. Aircraft parking apron between Bell Aire and north to the old fire station
3. Aircraft parking apron north of Taxiway "D" and west of the Wings Air
The project will address crack scaling, geotextile fabric, and overlay for all Taxiways. Also the
project will consist of rubber removal, crack sealing, and restriping of the runway.
Action Requested: Resolution recommending that the City Council approve Task Order #8 with
McClelland Engineers for Airfield Pavement Rehabilitation .
Staff Recommendation: Approval of the resolution as stated above.
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MARKETING REPORT DECEMBER 2000
With Holidays and weather, December has not been a normal month for marketing the airport.
Marketing visits out of state were delayed by icy conditions there as well as here. A portion of Dale
Frederick's time was spent in working with the ice and snow removing operations at Drake Field. We
were able to keep the airport open and the runways, taxiways and ramps cleared to allow aircraft
movement on the field. At the same time, we were able to loan XNA 3,900 lbs. of ice melt. However,
the unusual weather conditions allowed us to follow-up on leads and prospects and to work the phones.
We drafted and delivered a ground lease to one of the companies we have been networking for the
past eight months. The president of the company called us the third week of December and informed
us that, while the offer was very enticing, his company growth plans do not include long term leases
on public land . This was very disappointing news to us. The president did say we did a good job in
presenting our marketing program to him over the last eight months. I do believe all is not lost in this
effort as the owner of this company networks worldwide, and I am confident he will communicate our
program at every opportunity.
On a brighter note, we have two other companies interested in locating at the airport. The Kelner
Turbine Engine Company, located in Berryville, Arkansas, is a company we have been working with
now for over a year. They are to make a decision on where they're going to relocate in the near future.
We feel really optimistic they will move to Drake field. In addition, the Kelner's have a company they
work with, which is located in Pittsburg, Kansas, that has indicated they will relocate to Kelner's new
location. Tbla other really good prospect is the US Forestry Service. They have visited our Airport two
fiFnes and have communicated to Alett that they will make a decision right after the first of the year.
We are running an advertisement in the Star Shopper for four weeks and we have already received
some inquiries and two people are coming to look at the hangars.
2000 Accomplishments
The Arkansas Aviation Technologies Centerexpanded and leased an additional hangarfortheir
school. Their student enrollment is now at 85 and their goal for 2001 is 150 students by year
end .
Negotiated the relocation of DHL and completed a long term lease with DHL. They are
scheduled to move into the;old fire station in spring 2001 as soon as renovations are complete.
Requested and receiv'ed a grant from the FAA to develop a Conceptual Land Use Plan for the
east side of the airport. This project is 85 % complete and is probably the best marketing tool
which could have been developed specific to Drake Field. This plan will guide Drake Field for
a minimum of 10 years.
Conceived, produced and completed a marketing video for Drake Field both for promotional
purposes and in support of general aviation.
Ernest Lancaster Drive is underway! Without access it is impossible to open the east side up
to additional development. This project is key to the future development of Drake Field.
Issued Task Order #3 to our engineering firm to take six aircraft type hangars through Large
Scale Development.
Constructed three eight-unit T-hangars, bringing the total units to 73 and increasing current
capacity by 49%.
Negotiated a lease with Wings, Inc. to add a self-serve aircraft fueling facility.
Marketing Report
Page two
Made space available to an up-start company for six months to incubate an aviation related
business on the airport.
Leased a hangar to Bell Aire to provide aircraft maintenance.
Leased space in the terminal to Ozark Charter and Tours, making them the second tenant in
the terminal.
Leased space and facility to Jones Transportation Service.
We have added 19 NEW AIRCRAFT to our airport in the year 2000. At this time we have 62
aircraft based on the eastside hangar complex and nine units available (DHL & the FAA occupy
two aircraft hangars).
To start 2001 , it is time to speak about our goals and plans for the next year. Number one will be to
complete all projects in our Capital Improvement Program scheduled for 2001 . In addition, we plan
to have two aviation related businesses located in the new aviation park, additional T-hangars and
corporate hangars, re-establish the 3/4 mile visibility for our VOR Runway 16 approach, re-establish
the MLS Runway 34 approach, and add the high intensity runway lighting system. We plan to continue
our networking the industry promoting the airport, and this will include working for airline service for
Drake Field. At the present time American Eagle and Alett Little are in the question and answer
process in an effort to establish Drake Field as a reliever airport for their airline.
NEW T-HANGAR LEASES SIGNED IN DECEMBER 2000
T-hangar "G": Storage unit- Jerry Martin
Hangar units- Jerry Martin (moved from "B", someone coming
Wednesday to look at that "B" hangar unit).
Strategic Concepts
Strategic Concepts
David Devol
Wm. Faught
Jim Hillabrand (moved from "D", already have a
replacement for that hangar unit).
T-hangar IT": Hangar unit- Charles Caldwell (modified unit)
T-hangar "D": Hangar unit- Wm. Phillips