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HomeMy WebLinkAbout2001-09-06 Minutes• • • • MINUTES OF THE AIRPORT BOARD MEETING September 6, 2001 MEMBERS PRESENT: Charles Wallace, Rick McKinney, Frank Burggraf, Mike Andrews, Frank Sperandeo, Dave Bowman, Otto Loewer STAFF PRESENT: OTHERS PRESENT: Gary Dumas, Dale Frederick, James Nicholson, Louise Powers Wayne Jones -McClelland Consulting Engineers; Stephen Davis and Barbara Fell -Budge Dept. City Administration; Chris Coleman, Curtis W. Coleman, Kathryn Coleman, Terry Elliott - Safe Foods, Corp.; K. R. Schossow-Wings Avionics, Inc.; Terry Collier -tenant; Barry West -tenant; Sharia Bardin-Morning News; John Kalagias-Arkansas Air Museum; Matt Wagner -NW Ark. Times. WALLACE: ITEM #1: Call to Order. Welcomed everyone to the meeting and then explained they were going to re- arrange the order of some items on the agenda. BOWMAN: WALLACE. ITEM #2: Minutes of the August 1, 2001 meeting. A motion to approve the minutes as written was made by Mr. Burggraf and seconded by Mr. Bowman. The motion carried. ITEM #3: Old Business c. Airport signs on Highway I-540. Stated he would like to propose sending a letter from the Airport Board to the State Aeronautics stating the need for signage for the Airport, and request they survey other airports in Arkansas. Said he had been in contact with the State Highway Department and they had told him of other airports in Arkansas that had made requests to the State Highway Department and their requests had been turned down. He suggested there was a problem that needed addresses and a solution to be found. He asked that any comments be given to him and if a letter was sent, that it should come from the Mayor. A motion for a letter from the Mayor be sent to the Arkansas Department of Aeronautics addressing their concerns of the lack of highway signage on I-540 for Drake Field Airport was made by Mr. Bowman and seconded by Mr. McKinney. The motion carried. DUMAS: NICHOLSON: WEST: WALLACE: SCHOSSOW: COLLIER: WALLACE: d. Update: Sunscreens. Commented they had planned to travel around to several airport, but it had been a busy month. Calls were made to several airports including Monett and Springfield, Missouri and Harrison, Arkansas. Harrison has 10 enclosed hangars renting for $175.88 each and 2 sunscreens. At Monett their enclosed t -hangars rent for $100 and they have an informal waiting list. Their Airport Board has a house rule not to have sunscreens because they detract from the airport appearance. The Downtown Springfield, Missouri airport has 19 Port -a -Port units renting for $225 a month. They don't have any sunscreens. It is a profit -based -airport and they said municipal airports don't charge enough for hangars. Staff had talked with City Building Inspectors in several towns in Arkansas. Information received is that all the cities are required to use the Southern Building Code, but their interpretation of the code may vary, and several referred staff to their Fire Marshall who confirmed the requirement of two hour fire walls and other restrictions in hangars. Staff talked to four different pre -fab companies about a four unit structure 35' x 175'. This is the size of building the Planning Office had approved. Harrison has ten enclosed units and twenty-three sunscreen units. They were all built ten years ago and the whole package cost then was $180,000. They appear to be happy with their sunscreens. Questioned why the airport would want sunscreens? They don't look good in Springdale or in Harrison. Some of the planes we wouldn't want to be seen. Historically they are feeders for the t -hangars. Suggested taking the effort a little further and build t -hangars. Said he had talked to Verl Thompson the Airport Manager in Springdale and they are getting $50 a month for their sunscreens. Maybe we could find a better cost on the construction. Stated he was mostly hearing why we should not have them. Do we want them or not? A motion to conduct a study on constructing a four -unit sunscreen was made by Mr. Sperandeo and was seconded by Mr. Bowman. • • NICHOLSON: Responded yes to Mr. Dumas, who had asked if those figures weren't supplied to the Airport Board last month at the meeting. • • LOEWER: Commented on the payback time and the interest the funds would create if the airport didn't pull the funds out of the account, saying it didn't look like a big money maker. WALLACE: Stated we only have two t -hangars open. The cost to build the sunscreens is 40% of what it would cost to build enclosed hangars. The project doesn't look like it is financially feasible. SPERANDEO: Said he would withdraw the motion. BOWMAN: Said he would withdraw the second. BOARD CONSENSUS: To not pursue building the sunscreens. BURGGRAF: Asked staff to don't throw away the figures on the sunscreens. DUMAS: WALLACE: JONES: e. Update: Airport Manager's position. The City had twenty-seven applications for the position. The Personnel Director reduced the number to the eight most qualified. Video conferences will be conducted on September 24th and 25'. The goal will be to obtain a short list of two or three applicants and the group will be invited to personal interviews in the first week in October. Listed the selection committee members: Airport Board Chairman (Charles Wallace); former Airport Board Chairman Rick McKinney and current Board member; Airport Board member Dr. Loewer; Chamber of Commerce representative Bobby Ferrell; Kelly Johnson, Airport Manager of the Northwest Arkansas Regional Airport; City of Fayetteville staff members Ted Webber (Administrative Services Director) and Gary Dumas (Interim Airport Manager). Stated that to have Kelly Johnson on the committee will help bridge Drake Field and the regional airport for a stronger relationship. Stated he wanted to remind the Board of the structure. This Board advises the City Council. The Mayor supervises the City Staff and the Airport Board advises the Mayor on hiring. f. (1.) Hangar Drainage The project has been advertised and bids are to be opened next Thursday. It was mailed to ten contractors and two contractors have picked up plans. Mentioned that one of the airport's neighbors who does pre -cast cement has -3- DUMAS: JONES: JONES: WALLACE: NICHOLSON: expressed an interest in the project. He asked if the Board wanted to see the engineer's recommendation before it goes to the City Council or not? Suggested sending it on to the City Council. The recommendation could be placed on the October 2nd City Council agenda and if approved construction should start in about two or three weeks. The project might involve moving some of the tenants temporarily. f.(2.) Taxiway Rehabilitation Low bid was $2,555,442.65 from McClinton Anchor and it will be 90% FAA funded and anticipate receiving a 5% State grant. The project includes the widening and strengthening of some taxiways. The FAA is committed to the project and have the funding allotted. Construction could start as early as October 1". Apron rehabilitation also includes work on the old Tyson hangar ramp to make the grade no more than one -and -one-half percent grade. Superior Industries is ready to rent the Tyson hangar if the ramp work is done. Work on the runway will include removing the rubber buildup, rejuvenation and re -striping. The project also includes the taxiway for the Forest Service. Asked for an update at the November meeting on the rehabilitation project. ITEM #5a. Briefing on the FBO operation We have sold 10 000 gallons of jet fuel and 7,000 gallons of AV -Gas, which is a couple of more 1,000 gallons than the former FBO. The FBO has received a lot of nice comments. Mr. Bell gave staff a presentation on Customer Service. Everyone has been stretched to man the FBO counter, continue with the mowing program, and keeping the buildings and grounds clean. Next Saturday is game day and we are expecting around 200 aircraft Friday through Saturday. The FAA is requiring slot scheduling for part of Saturday. Two rental car companies plan to be represented here on Saturday One rental car company is providing the Airport a van to shuttle the passengers on the ramp. We had planned to have to food venders here, the one on Friday bailed out and Penguin Ed's plans to provide finger food on Saturday evening. Board member Frank Sperandeo has volunteered to be a greeter on Saturday. We do have flyers out on the counter with the current fuel prices. As we received additional fuel deliveries the feeler's price had increased and we had to increase our prices. It has happened at a critical time, but we couldn't continue to sell fuel at our beginning price. The AV -Gas went up 24 cents, and said he thought we were still the lowest price in Arkansas. • • • WALLACE: /Pointed out that we have said to the public we will have the lowest price to attract more customers. We have to be very careful now that the City has slipped in. / DUMAS: it Said there wouldn't have been an FBO if the City hadn't assumed those / duties. The margin put into the pricing of the fuel is very minimal and we have not increased the margin. ANDERSON: Said when he advertises a price he can't change it. FREDERICK: \ Commented that the published price of fuel in the trade magazines has effective dates that are sometimes months to an year old and the pilots know to check with the FBO's for the current price. Reminded the Board they do not set the fuel prices, rices, and that the Board had heard from other folks that there could be potential fuel providers. DUMAS: Responding to Mr. Sperandeo, the aircraft traffic count for August was up 40% over July. LOEWER: ITEM #3.b. Scenario development for future development of the Airport Reported he and James had looked at and worked some on this. The main thing that had jumped out was that if you change something, for instance the price, then that makes different situations, or like the time to recover building cost on the hangars as compared to the interest that could be received on the reserve cash if you don't build the hangars. Explained he had been out of town and owed the Board more than this report, and that they were waiting on him, and not on James. Responding to Mr. Wallace, the project does have merit and he expected to have the project going by this fall. WALLACE: Stated it would be good to have when we get the new Airport Manager, it will shorten the learning curve. DUMAS: Said it would be an important tool to look at, for instance, the sunscreens. That doesn't mean we will always follow it, but it wilt give us information. DUMAS: ITEM #4.a. Safe Foods Lease Safe Foods had met and worked with John Maguire (Economic Development) at the City Administration to find a location for an office and industrial space to rent. They have met several times over the last couple of months to see if they can locate in this community. • • • They would like to rent the north half of the building for five years with several five year renewal options and a twenty-four month notice of termination, and that perhaps can be reduced to eighteen months. The utilities for the north half is resolvable. It would be a good revenue generator, would provide a cash flow to the airport for space that is totally unused now. It possibly could generate some aircraft traffic. Rent would be $49,000 for 10 to 11,000 sq. ft. C. W. COLEMAN: Said he was the president of the company which was two and one half years old. The company works with food elements and they expect FDA approval during the 151 quarter of next year. The company has two full-time employees. The company has a close connection to the School of Engineering. It would be a research facility on food safety and they would develop systems that would apply to different foods and would test spray cabinets. Their company is already involved intemationally, giving a sample to almost every country. There would be some related aviation activities, flying samples out. He asked for a copy of the letter to the Highway Department, because that would be important for them, too. He introduced Terry Elliot, wife Katherine, and Chris Coleman. DUMAS: Answering Mr. Sperandeo, there would be two labs here. Answering Mr. Loewer, who asked about any safety hazzard for a public building, he said he would meet USDA FDA standards and was confident it would be the most sanitary part of the building. They would be involved in microbiology. Answering Mr. Sperandeo, their area would include the existing deli area, and if we do have a restaurant come in they could renovate a different area in the terminal. WEST: Stated the restaurant should be facing the airfield. C.W. COLEMAN: Answering Mr. Sperandeo, their manufacturing is in Michigan. They have two employees already here and will add two more in Fayetteville, with a maximum often employees. Their business has never been a part of Genesis. They had talked to Genesis, but there was operational problems. DUMAS: Asked the Board if they were interested in Safe Foods locating in the terminal? Answering Mr. Loewer, who asked about renovation costs, said they don't have the estimated costs, they were to have them today. Costs will have to be negotiated. WALLACE: BURGGRAF: DUMAS: WALLACE: DAVIS: FREDERICK: WALLACE: McKINNEY: Asked if they saw an adverse effect, its not directly related to aviation? Stated it would help establish the airport's character with technology. Renovations would include expanding the baggage claim area under the overhang. They would remove the ceiling tile in the baggage claim area, remove some walls in the car rental areas. The walls are all temporary walls and can easily re -modified. Pat Ross will have to be relocated and he has been amenable. A motion that the Airport Board supports continuing discussions and negotiations of a lease for Safe Foods with the Airport Board reviewing the plans with a Special Meeting, if needed, before it goes to the City Council for approval, was made by Mr. McKinney and seconded by Mr. Burggraf. The motion carried. ITEM 3.a. Briefing on Changes to Capital Improvement Proiects (CIP) Submission, presented by Steve Davis. Stated the packet includes the City's whole CIP program for five years. The current project for pavement rehabilitation required a Budget Adjustment to increase that project. On the chart the total project cost doesn't include federal funds. Discussed the cash flow of the airport. Stated at the current rate if the cash flow remains the same the airport will run out of money in year 2005. The airport needs to increase the cash flow or eliminate some projects. The chart doesn't have the FBO cash flow listed. The City started working on the CIP in March of this year. It is the Airport's funds, its not a use -it or lose -it each year. The projection for end of year 2001 for the total Airport's Enterprise Fund will be 1.8 million. At the end of last year it was 3.6 million. On the proposed T -hangar "H", the Airport could anticipate some state funding assistance. Answering Mr. Andrews, who asked if these projects were set, said it is just a plan, subject to change as needed. Items come up one -by -one before the Board recommends them to the City Council. The Safe Foods renovations would come out of the 2001 budget. Items can be moved or postponed. The individual hangars are optional, the pavement maintenance is necessary, the Lancaster Drive extension project can be moved to a different year. NICHOLSON: Answering Mr. McKinney, the pavement renovation project will use all of the Airport's entitlement funds. The FAA grants will decrease and there is nothing significant left in the PFC funds. WALLACE: Stated he would like the third quarter financial report for the Airport on the agenda in October. DUMAS: Stated he or Ted Webber would make the report. McKINNEY: Said the financial reserve has lasted longer that we ever though it would. DUMAS: Commented he wanted to give an update on Scurlock Concrete Company's request to use part of Lancaster Drive as access to their property. We had thought it was a good idea and staff has been talking to the FAA, as the drive was built with FAA funds. The Forest Service will also use this drive and will have heavy equipment. The drive would have to be re-inforced. WALLACE: Mentioned they had another meeting in the Conference Room following this meeting. WEST: Stated they would have a Young Eagles meeting at the Airport next month. WALLACE- Asked him to send him an e-mail and he would distribute the information. SPERANDEO: Asked about pre -buying the fuel in volume to get a better cost? DUMAS: Said he thought there was a time frame on using the gallons. WALLACE. Thanked everyone for attending. Meeting adjourned at 3:23 p.m. Frank Burggraf Date