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HomeMy WebLinkAbout2002-10-03 - Agendas - Final AGENDA FOR THE AIRPORT BOARD MEETING 1 :30 p.m. Thursday, October 3, 2002 Airport Conference Room 4500 S. School Avenue 1 . Welcome. 2. Minutes of the September 12, 2002 meeting. 3. Minutes of the September 26, Special Called Meeting. 4. Receiving of Reports. A. Charles Wallace, Chairman. B. Ray Boudreaux, Director. C. James Nicholson, Finance Coordinator. D. Construction Report. 1 ) Executive Apron and Taxiway Project 2) FBO Hangar Project 3) Re-skin Project E. Maintenance Report. 5 . Old Business. 6. New Business. A. State Aeronautics grant application. Action : Recommend application to the City Council, B. Airport Budget. Action: Recommend adoption to the City Council. 7. Other Business. A. Items from the Airport Board. B. Items from the Public. 8. Meeting adjourned. NOTE: The next Airport Board Meeting is scheduled for November 7th Tentative Dates for Strategic Planning Meeting are October 17`h and 24`h • 1' MINUTES FAYETTEVILLE MUNICIPAL AIRPORT BOARD MEETING September 5, 2002 Board Members Present: Charles Wallace, Rick McKinney, Frank Burggraf, Frank Sperandeo, Otto Loewer Board Members Absent: Mike Andrews, Dave Bowman Staff Present: Ray Boudreaux, James Nicholson, Louise Powers Others Present: Michael Stilwell-Fay. Government Channel; Wayne Jones and Johnny Quinn-McClelland Engineers; Leonard McCandless-Ozark Military Museum; Judy Hammond-Air Museum; Christina Crouse-Airport Hair Salon; Matt Wagner-NW Ark. Times; Greg Tabor-Fayetteville Police Department; Greg McCoy-Aviation Tech. Center ITEM 41 : Welcome. Chairman Wallace welcomed all attending and announced they, would move on to items . not requiring action until the others Board members arrive. ITEM # 3 : Receiving of Reports. A. Charles Wallace, Chairman, Strategic Planning Meeting. Reported the meeting was conducted on September 11th. He summarized strategies developed at previous meetings, and events relating to those.strategies. The Airport works closely with the Tech. Center and the Community College, new buildings are going up on the Airport, and is continuing to provide service for business community. Airfest was the best ever. Capitalizing on the Airport's assets, the Airport is in good condition and has continued to keep it that way which develops stability for the Airport. The Airport is not using the City's tax money. It is using revenues and reserve money created by the Airport long ago. The Airport contributes to the local economic community (hotels, restaurants, meeting rooms). It is also the base for people coming here for recreation and sports. The Airport is handling more traffic than was anticipated by now. He stated F. Burggraf plans to put together the progress of the airport for the last year for the January meeting. O. Loewer and Chairman Wallace will draft a plan for parity for the tenants for the January meeting. Director Boudreaux reported Bill Corley has submitted a marketing proposal and has asked it be discussed at a later meeting. Also we would like to have a creative consultant develop a business plan for the terminal building, since its not a terminal anymore. Chairman Wallace commented on the results of the marketing survey. There was a 10% return out of 1 ,500 sent out. It gave us leads of pilots that might relocate to Drake Field. Our safety record is good and the security gate to the eastside T-hangars is now • operational. Board. attendance is good. Goodwill seems good and there is good humor among the tenants. The B. B. King concert will bring people to the Airport. Grant contributions continue. • 1 r B. Ray Boudreaux, Director. Briefed the Board on his report in the Board packet. The AAOA Conference starts next Sunday and several Board members are attending. Requests have been submitted to the DOD for military assistance for Airfest 2003 . The new shirts for staff have arrived. The first ballgame weekend went well and staff stayed until after midnight. We did a quick turn on a MD87 and the Airport team worked well and received a good rating from the pilot. We arranged for a shuttle for the ballgame charging $ 10.00 for a round trip. He thanked Panera Bread, Lenny's, and Railroad Salvage Company who furnished finger food and soft drinks for the Hospitality Table for the arriving and departing passengers. He also thanked all the staff and volunteers who helped. C. James Nicholson, Finance Coordinator. Operations and fuel sales were up in August. The cost of wholesale fuel has increased 40% since the first of the year and we have held our price the same, which is lower than the local airports. Stated there were 24 who redeemed their coupons for fuel. Some were brought in after the closing date and they were honored. Of those responding the largest percentage fly for pleasure 1 -to 5 times a month, business and 'pleasure fly 5-20 times per month. The item most desired is a T-hangar. Sixty-five percent were satisfied with their airport. Fuel, hangars, and not being able to rent an aircraft were important items to those responding. Radar and tower were down on the list. D. Louise Powers, T-Hangar Report. There has been some movement activity resulting in one T-hangar vacant and one lease pending. Several hangar storage units have been rented. • E. Wayne Jones, Construction Report (airfield project). Reported there were some areas that had to be re-seeded after a large rain, and rocks removed. A low area on Taxiway Alpha has been repaired. McClelland Engineers is working on the plans for the Forest Service taxiway, and we are waiting to hear from the FAA on funding for the project. F. Maintenance Report. Director Boudreaux reported staff did have all the ramp lights and flood lights working, but now two are out by the east restrooms. Staff is preparing the foundation for the AVFueI sign. One light on Lancaster has been knocked over for the third time. The Airport's FAA Certification Inspection is scheduled here in September and staff is working hard to have everything ready on the field. ITEM #2: Minutes of the.August 1 , 2002 meeting. A motion was made and seconded to approve the minutes as written. The motion carried. ITEM #4: Old Business. A. Survey results. Results were discussed earlier in the meeting. B. Update: Hangar Rehabilitation Project. Director Boudreaux said there had been a delay as the contractors submitted the wrong siding in the plan, and commented that both buildings have drainage problems. The work should be completed in the next 45 days. • C. Update: Bikes, Blues and Bar B Que. Item was placed on the agenda as a reminder. They have sold 1 ,200 VIP tickets at $50.00 reported Director Boudreaux. D. Update: Employees. A new employee, Greg Robinson, has been hired for Airport Maintenance. He is a very quick learner, and tenants love him. For the FBO 2 l� l Supervisor's job, there were seventeen applicants and we interviewed seven. We hope to have a decision made this week. ITEM #6: New Business. A. Present plans and specs for Taxiway and the Corporate/FBO hangar ramp. Action : as required. Johnny Quinn displayed the layout and explained the project has gone through four different designs stages. The hangars on the north side are: the FBO hangar-the east hangar; the middle hangar is for Flying Investments; and the west hangar is for Nelms. The entry road will be re-configured and the project will take some of the existing parking spaces at the south end of the front parking lot. Director Boudreaux announced Flying Investments has already ordered their building. W. Jones said some utilities will be relocated and a sewer pump station installed. The Fire Code calls for 30 ft. between the hangars, they could be built closer, but a fire wall would need to be installed. Director Boudreaux said southern exposure was requested for these hangars, and we wanted the FBO Hangar close to our FBO operation. Bids are due on September 26`h. A part of the projects will be funded by the State Aeronautics. The project has been through the City's Large Scale Development. New hangars will create additional interest in the Airport. The width needed on the ramp was determined by the needs of the tenants. Estimates are in t 00 to $700,000 range. J. Quinn said the FBO Hangar will be able to house veral Gulf Stre It is designed not to look just like a metal building. It has windows a ong each side -a'translucent panel, and above that will be accent lighting. There will be three deductive alternatives, three are allowed by law. McClelland's was • assisted by Green Anderson Engineers for the heating plans. The floor will have a hard finish, not painted. Director Boudreaux answering about the action required, said the Board could do action now, giving approval with suitable bids, or do action after we see the bids, stating he would prefer everyone to have a chance to see the bids. Chairman Wallace deferred the item until they see the bids and said we will make it a one item agenda along with the Strategic Planning Meeting. B. Strategic Planning Session. Action as required. Item was previously discussed earlier in meeting. Plans will be made for another meeting. C. Airport Budget. Action as required. Chairman Wallace explained the Budget in the packet in is "Draft" form and no action is required at this point. As Board members we are to study the Budget and direct any questions to Ray or James. Today is just to receive the Budget, not to ask questions or analyze it. We can discuss it at a later date. ITEM 7: Other Business A. Items from the Airport Board. No items. B. Items from the Public. Greg McCoy thanked the Airport for allowing the school to have their two graduation classes in the terminal. Stated they had just completed their Board Meeting and had voted in new members and officers. The new Chairman is Ken Pummill. ITEM 8: Meeting adjourned. • Frank Burggraf, Secretary Date 3 1 �l MINUTES • "SPECIAL CALLED MEETING" Fayetteville Municipal Airport Board 3 :30 p. m., Thursday September 26, 2002 U. of A. Ge sis Buildin Chairman Wallace called the meeting to order at 3 :42. Following a few opening remarks on the purpose of the meeting, he introduced Johnny Quinn of McClelland Engineering Co., Inc to present the bids on the new FBO Hangar. Johnny Quinn opened with a detailed description of the building emphasizing the size of the structure (150' X 125 ') and the aesthetic design features of the building. ' Mr. Quinn reported that seven bids were taken and that the low bid was offered by Crossland Construction Inc. in the amount of $634,000.00. The second low bidder was Marinoni Construction in the amount of $636,000.00. Mr. Quinn recommended that the bid from Crossland Construction be accepted. Following discussion the following motion was made by Rick McKinney and seconded by Frank Sperandeo: Motion: To recommend to the City Council that Crossland Construction be • awarded the contract to construct the FBO Hangar for a base bid in the amount of ��$T634,000. The motion passed unanimously. Following the vote of the FBO Hangar, Chairman Wallace introduced Wayne Jones to present the bids on the Executive Ramp Development Project. Wayne Jones of McClelland Engineering Co. Inc. presented that there were seven bids received (one bid was pulled before they were opened), the low bid being from Tomlinson Asphalt Co. in the amount of $616,207.70. The second low bid was offered by Red Deer Construction in the amount of $679,250.00. Mr. Jones briefed the project indicating that the project had increased by a factor of three in scope from the original project presented in January and used for the grant application to the State Aeronautics Commission. The State approved a grant in February in the amount of $ 166,600.00 for the project. Mr. Jones indicated that he had met with Mr. John Knight, Director, Arkansas Department of Aeronautics, to brief the project in its present form an received support for application for additional Sta ding up to 0.00 in additional funding for the project. Board Memb Low as y the entrance road was not moved to make the entrance a straight ro Jones answered that the main reason was to save money. Following additional discussion, Rick McKinney called for the Question. The question passed unanimously. The following motion was made by Frank Burggraf and seconded by Dave Bowman: • Motion : To recommend to the City Council that Tomlinson Asphalt be awarded the contract to construct the Executive Ramp Development Project for a base bid in the amount of $616,207.70. The motion passed unanimously. Chairman Wallace directed staff and Mr. Jones to apply for the additional funding through the State Aeronautics Commission. Director Boudreaux and Mr. Jones acknowledged the directive and assured the Board that the application would be prepared and presented as quickly as possible. There being no further business to be presented to the Board, the meeting was adjourned. Respectfully submitted: Ray M. Boudreaux Recorder for the Special Meeting • • FAYETTEVILLE AIRPORT DEPARTMENT AMI�THE CITY OF FAYETTEVILLE, ARKANSAS MONTHLY REPORT Director, Aviation and Economic Development Fayetteville, Arkansas September 2002 We interviewed seven applicants for the new Flight Line Operations Supervisor and hired Troy Bates. Troy is a pilot and member of the Arkansas National Guard. He worked part time in Bentonville for the FBO and most recently was employed by the U of A in the HR business. He is an amateur photographer who loves airplanes and likes to be around airplanes and we are very happy to have him. Troy brings a wealth of skills to the table including organizational and computer skills. We spent two Saturdays of the month working U of A football games. The first game was Boise State. We had about 35 aircraft remain for the game. Alabama was the second game and there were 65 aircraft on the ground for the game and many more that dropped folks off for the game and picked them up on Sunday for a total of approximately 80 transients. Those were very long • days. Thanks to our great staff for the hard work. Thanks too to the folks that helped us with the hospitality table. Lennie's, Panera Bread, Walmart, ACES High, and Railroad Salvage. Cherie Boudreaux, Denise Nickolson, Marie Wilson and Fred Anderson helped as hosts, in the FBO and on the flightline. All the customers were happy. We spent a third Saturday of the month at the airport with the City Council. We volunteered our conference room for a Council retreat and they came. Thanks to Louise for setting up the refreshments and the lunch. Bikes, Blues and BBQ will present BB King in concert at the airport and we will be present. We have received payment for the event and the deposit. Street Department will install the snow fence on Thursday and I will ensure its placement. The Street Department, Gary Osburn in Charge, cleaned our ditches and put out mosquito dust to control them for the concert. We have worked an agreement to have the east side grass mowed and bailed for a small fee to the airport. The farmer who leases the hay fields wasn't interested in the grass. The fee is small but the reward is great. We need it kept close to keep the wildlife down and if it is bailed, we don't have to mow it. He is also bailing the piece across US 71 . The Arkansas Airport Operators Association met in Fayetteville and I along with four board members attended. I think all learned a lot. The program was a training session taught by • William H. Green, author of"How to Assure the Future of Your Airport." We worked very hard on the budget. An initial copy is in the packets today for your review and . recommendation to the City Council. 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE, AR 72701 PHONE SO1 -718-7640 Ext. S • FAX 501 .718-7646 • I attended the Manufacturers Committee of the Chamber of Commerce. They have asked to have a Manufacturer's Appreciation Day, November 14 at the Airport. They would set up booths and there would be refreshments like a Business After Hours event except that it would be to thank the manufacturers for their contributions to the quality of Life of the Fayetteville Citizens. The Mayor has agreed to make November 14th Manufacturers' Day. The FAA Certification Inspection was conducted on the 25`h and 26`h. Bob Hutchins spent most of Wednesday afternoon and Thursday morning with me. It was my first Part 139 Inspection so I valued it as a good training session. We had one write-up. The threshold stripe is too narrow and not properly situated on the end of the runway. We will repaint it by the end of November. We advertised for the Executive Ramp Development Project and the new FBO Hangar Project. Both bids came in well under the engineering estimate and within our budget. We will apply for additional money for the ramp project and from preliminary conversations with the Department of Aeronautics, we should receive additional State support. The projects came in for a total of $ 1 ,250, 207.70. We currently have grants of $366,600.00 and expect another $ 150,000 for a total of $516,600.00 in support. This would mean that we would spend $733,607.70 from our reserves to build a hangar and a new ramp. The "reskin" project is proceeding well. We hope to finish it before the end of the year and to close out the project with the State. • The staff is looking at a redesign of the FBO area in the Terminal Building. We are taking suggestions on how it should look and how it will best serve our customers. We will upgrade the lounge, redesign the flight planning area, and improve the FBO service desk. Some work will be in house, some through the City Building Maintenance system. lly Submitted, Ray M. Boee udreaux Director • EA. YETTEVILLE • THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE To: Ray Boudreaux, Avia 'on Economic Development Director From: Dan Coody, Mayor Date: October 1, 2002 Subject: Arkansas/Alabama Football Game weekend I stopped by the airport on Saturday to see how it was going and, to say the least, I was . very impressed by the activity. I talked to several of the pilots and can report that they were all very satisfied with the service and the fuel prices. Please pass along my thanks to all your folks for keeping customer service their top priority during the Razorback/Alabama football game rush. Taking care of our customers is one way we can influence whether or not they decide to return to our airport. As we continue to grow • our based aircraft numbers, we need the transient crowd to help boost our fuel sales. If they are happy during the busy times, they will be very happy during the slow times. Thanks for all the hard work being put in to make our airport the best in Northwest Arkansas. Keep up the great work! • 1 FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR • 4500 School Ave., Sulte F Fayetteville, AR 72701 AVIATION AND ECONOMIC DEVELOPMENT 501.713.7642 RAY M. BOUDREAUX, DIRECTOR TO: Airport Advisory Board Membe ' THRU: Ray M . Boudreaux, Director FROM : James Nicholson , Financial Coordinator DATE : October 3, 2002 SUBJECT: Financial Coordinator's Report Tower Operations Graph: Below is a graph which depicts monthly aircraft operations as counted by the Fayetteville Municipal Airport ATC Tower. This graph analyzes information from the previous 24 months. The graph compares the past twelve month period with the year previous. 2000 1200112002 Comparlson Drake Field Aircraft Operations woo woo ❑ :oo01 rot C1000 0 20011 rot • tow Vol M V4, Al 9 Sept Oct Nov Dee Jan Feb March ApHI May Jum Juty Aup Sept Month FBO Fuel Sales: As can be seen in the graph below, fuel sales volume for the month of September is up 93% from last month's sales. The September sales level is approximately 156% of the FBO's monthly average volume of 25,219 gallons. Fuel Sales - Comparison 20001200112002 w w � 200 r otAe,a«n 8 30 02007102 CIy Fso f Ea F 70 I� Gyassumn Ft70 0 'Yf Au" 2001 Sept Oel Nov Dee An Feb Mach ApM May Junto Juty Au0 Sept MONTH Good weather, Razorback football games, and a bulk fuel purchase by FYV tenant • Flying Investments, Inc. , and Aircargo Carriers (DHL) daily fuel uplift, have all contributed to the higher sales volume. .1 • Local Area Data: . Retail fuel prices have remained steady through September, though trending slightly upward . Following is a comparison of regional retail fuel prices as of 10/03/02: Regional Jet Center (XNA) Avgas: 2.89 Jet-A: 2.52 Springdale Air 2.73 2.33 Beaver Lake (Rogers) 2.61 2.33 Hughes Aviation (Bentonville) 2.70 (SS-2.35) 2.40 Siloam Springs (City-run) 2.35 (ss-t .99) 2 . 15 Fayetteville Municipal 2.25 2.00 Regional Jet Center provides discounts on Jet-A; . 10 @ 500 gals+, .20 @ 1 ,000 gals + The Graph below illustrates wholesale fuel price increase trend since the beginning of 2002. Fuel Cost Trend rox sox Jet ]"% MIIIWUM AV Y IM - W sate nox caro FYV Facts: Average monthly fuel sales: 25,219 gals September 2002 fuel sales: 30,763 Jet' - 79% 8.574 Avgas - 21 % 39,337Total Jet-A sold to FYV-based customers in September: 171196* - 56% Jet-A sold to transient aircraft customers in September: 13,567 - 44% Avgas sold to FYV- based customers in September: 2, 197 gals — 25.7% Avgas sold to Drake Aviation flight school in September: 1 ,000 gals — 11 .7% Avgas sold to transient aircraft customers in September: 5377 gals — 62.6% *includes U of A "into-plane" - 3640 gals. • FAYETTEVILLE MUNICIPAL AIRPORT 2003 BUDGET SUMMARY - 2002 COMPARISON AIRPORT BOARD MEETING OF 10/3/2002 • DIVISION 3940 LANDSIDE OPERATIONS / ADMINISTRATION CATEGORY 2002 2003 Personnel Services 134253 150754 Materials and Supplies 5250 2700 Services and Charges 284268 527447 Maintenance 34291 6750 TOTALS 3940 458062 687651 DIVISION 3950 AIRSIDE OPERATIONS / OPERATIONS (FBO) CATEGORY 2002 2003 Personnel Services 66383 97109 Materials and Supplies 1140 363140 Services and Charges 212566 43118 Maintenance 16328 16100 TOTALS 3950 296417 519467 Includes Aircraft Fuel Inventory DIVISION 3955 AIRPORT FBO / MAINTENANCE • CATEGORY 2002 2003 Personnel Services 95936 113749 Materials and Supplies 324200 * 7250 Services and Charges 55590 2850 Maintenance 8900 70300 TOTALS 3950 484626 194149 Includes Aircraft Fuel Inventory % Change 3940/3950/3955 TOTALS 1239105 1401267 13.1 % DIVISION 3960 CAPITAL EXPENDITURES / CAPITAL EXPENDITURES CATEGORY' 2002 2003 Services and Charges 236196 272500 Maintenance 244747 0 Capital 3828530 3910000 TOTALS 3960 4309473 4182500 Actual Expenses 2002 % Change OPS + CAPITAL 5548578 5583767 0.6% DEPRECIATION 1236122 1370257 10.9% • TOTAL AIRPORT 6784700 6954024 2.5% • FAYETTEVILLE MUNICIPAL AIRPORT 2003 BUDGET SUMMARY ESTIMATED REVENUE BY CATEGORY DIVISION 0955 AIRPORT REVENUE CATEGORY 2002 2003 Charges for services 771160 825003 Non-operating interest 153000 - 84897 Contributions / Capital 4969522 1885000 TOTALS 3940 5893682 2794900 Charges for Services detail Rent 65100 Term Rent 10886 Landing fees 1000 DHL landing 1340 RentT-Hang 180185 Rent FAA 25909 Avgas Rev 177314 Jet-A Rev 325607 Ground rent 23500 FBO Accessoi 11962 Misc 2200 TOTAL 825003 Contributions / Capital detail: East taxiway constr 1235000 T-hangar construction 200000 Executive hangar 3@60X60 450000 TOTAL 1885000 • General Government Department Aviation & Economic Development Division • Airport Administration Program Fund 5550 - Airport Program 3940 Program Description, Objectives, and Analysis: This program is to operate and maintain the airport under a Limited 139 Specification certificate and to administer Federal and State Grant funds, tenant leases, budget expenditures, revenues, and maintain landside buildings and related grounds. Objectives include administering airport resources, completion of FAA mandated programs, negotiation of leases, as well as provide airport marketing and development, oversight of the Passenger Facility Charge (PFC) program, support functions to FBO operations, and maintain FBO terminal facilities. Actual Budgeted Estimated Budgeted 2001 2002 2002 2003 Program Staff Full-Time Equivalent Positions 3.58 2.70 2.70 2.50 Program Expenditures Personnel Services $ 18%114 $ 134,253 $ 113,315 $ 150,754 Materials and Supplies 2,985 5,250 2,870 23700 • Services and Charges 246,498 284,268 271 ,426 4871447 Maintenance 23, 192 349291 25,050 3,750 Capital 2,645 21655 2,800 39000 Depreciation 1 ,075,406 1 ,236, 122 1 ,236, 122 1 ,370,257 $ 1 ,5391840 $ 1 ,696,839 $ 11651 ,583 $ 2,017,908 Performance Measures Demand/Workload I . Scheduled Hours of Operation 51148 2,080 25080 2. CIP Projects 8 6 4 3. Facilities Available for Lease 85 88 90 4. Square Feet of Terminal Space 27,328 27,328 279328 Results 1 . Daily Hours of Operation 15 8 8 2. CIP Projects Managed 8 6 4 3. Active Federal Grant Projects 2 2 1 4. Facilities Leased 85 88 90 5. Sq. Feet of Terminal Space Leased 900 1 ,040 860 • General Government Department ' Aviation & Economic Development Division Airport Administration Program • Fund 5550 - Airport Program 3940 Full Amount (Less) Actual Budgeted Estimated Requested Target Budgeted 2001 2002 2002 2003 Overruns 2003 Personnel Services 5550.3940.5100.00 Salaries and wages $ 146,392 $ 94,483 $ 79,285 $ 99,407 $ $ 99,407 5550.3940.5100.01 Salary contingency 0 8,104 8,104 21 ,507 21 ,507 5550.3940.5103.00 Overtime 1 ,045 0 79 0 0 5550.3940.5105.00 FICA taxes 10,965 7,275 6,106 7,654 7.654 5550.3940.5107.00 Life Insurance 598 352 371 ' 465 465 5550.3940.5108.00 Health Insurance . 11 ,045 9,402 8,029 7,443 7,443 5550.3940.5108.01 LTD Insurance 587 346 364 457 457 5550.3940.5108.02 ADD Insurance 71 49 44 45 45 5550.3940.5109.06 Retirement savings plan 15,399 9,742 9,515 11 ,929 11 ,929 5550.3940.5111 .00 Workers' comp insurance 3,012 4,500 1 ,418 1 ,847 1 ,847 189.114 134,253 113.315 150.754 0 150.754 Materials and Supplies 5550.3940.5200.00 Office supplies/printing 1 ,949 2,150 1 ,540 2,150 2,150 5550.3940.5203.00 Cleaning supplies 736 2,500 . 1 ,100 300 300 5550.3940.5204.00 Chemicals 300 100 0 0 0 5550.3940.5209.00 Software 0 500 230 250 250 2,985 5,250 2.870 2.700 0 2.700 Services and Charges 5550.3940.5301 .00 Public notification 328 500 1,050 1 ,000 1 ,000 5550.3940.5302.00 Uniforms/personal equip 783 1 ,486 360 0 0 5550.3940.5303.00 Publications & dues 2,848 260 600 9,380 9,380 5550.3940.5304.00 Travel & training 14,673 12,050 1 ,100 2,500 2,500 5550.3940.5307.00 Audit expense 7,500 7,500 7,500 7,500 7,500 5550.3940.5308.03 Equipment rental 0 0 0 0 0 • 5550.3940.5310.00 Utilities 63,343 88,000 88,000 88,000 88,000 5550.3940.5310.01 Telephone expense 4,373 5,525 4,500 5,000 5,000 5550.3940.5311 .00 Insurance-vehicleslbldgs 7,792 7,117 7,117 7,117 7,117 5550.3940.5311.01 Insurance-self 0 500 500 500 500 5550.3940.5311 .02 . Insurance-personal liab 3,961 6,500 6,500 20,000 20,000 5550.3940.5314.00 Professional services 485 1 ,500 1 ,500 1 ,500 1 ,500 5550.3940.5315.00 Contract services 1 ,017 4,754 2,150 192,500 192,500 5550.3940.5319.00 Bad debt expense 0 1 ,000 500 500 500 5550.3940.5329.00 Employee recognition 0 150 150 150 150 5550.3940.5331.00 Motor pool charges 1 ,653 61586 6,600 6,600 6,600 5550.3940.5331 .01 Replacement charges 2,292 5,629 5,629 5,700 5,700 5550.3940.5331 .02 Shop overhead charges 0 0 0 0 0 5550.3940.5338.00 Alr Museum expense 8,933 0 5,000 5,000 5,000 5550.3940.5342.00 Promotional activities 789 3,211 600 42,500 40,000 2,500 5550.3940.5399.00 Cost allocation 125,712 132,000 132,000 132,000 132,000 5550.3940.7320.01 Bank Service Charge 16 0 70 0 0 246.498 284.268 271 .426 527.447 40,000 487.447 Maintenance 5550.3940.5400.00 Building & grounds maint 22,250 32,900 24,000 2,500 - 2,500 5550.3940.5401 .00 Office machine maint 768 500 300 500 500 5550.3940.5403.00 Vehicle & machine maint 102 500 500 500 500 5550.3940.5407.00 Small equipment maint 72 391 250 250 250 23.192 34,291 25.050 3.750 0 3,750 Capital 5550.3940.5890.00 Minor equipment 2,645 2,655 2,800 3,000 3,000 2,645 2,655 2,800 3.000 0 3.000 Depredation • 5550.3940.5950.00 Depredation expense 1 ,075,406 1 ,236,122 1 ,236,122 1 ,370,257 1 ,370.257 1 .075,406 1.236,122 1 ,236,122 1 ,370.257 0 1 ,370.257 TOTAL $ 1 ,539.840 $ 1 .696,839 $ 1 ,651 .583 $ 2.057.908 $ 40.000 $ 2,017,908 General Government Department Aviation & Economic Development Division Airport Administration Program Fund 5550 - Airport Program 3940 Full Amount (Less) Requested Target Budgeted Account Number Account Title Item Description 2003 Overruns 2003 5550.3940.5200.00 Office supplies/printing Copy paper & preprinted forms 1 , 150 1 ,150 File folders/mailers/binders 300 300 Printing/Marketing Items/flyers 350 350 Stationery/business cards 250 250 Federal Express/Emerg Overnight 100 100 Computer & Fax Supplies 400 400 Misc pens/pencils/pads/etc 250 250 2.800 0 2,800 5550.3940.5203.00 Cleaning Supplies Mops, towels 0 0 Paper products, misc 300 300 Chemicals and cleaners 0 0 Can liners & trash bags 0 0 300 0 300 5550.3940.5302.00 Uniforms & personal equip Uniform allowance 0 0 Misc. safety items 0 0 Coveralls 0 0 Boots 0 0 Rainsuits 0 0 0 0 0 5550.3940.5303.00 Publications & dues AAAE dues 610 610 AAOAdues 50 50 • AOPA dues 35 35 Fly-Low Advertising 2,600 2,600 Other advertising 5,000 5,000 South Cent Membership 35 35 Nall Business Aircraft 0 0 Daily newspapers 700 700 Misc Books/publ. 100 100 AOL 0 0 MBAA dues 250 . 250 9,380 0 9.380 5550.3940.5304.00 Travel & training Employee ad. benefit 1 ,000 1 ,000 Nat'l AAAE annual conf. 11500 1 ,500 FAA workshops and conferences 1 ,500 1 ,500 Fin & Eco Conf/Board Mtg. 0 0 Nat'l Arpts. Conf. 1 ,000 1 ,000 Travel-Stala/Fed Grts 550 550 Spec conf/wrkshps FAR 139 0 0 ACI Annual Conference 0 - 0 Federal Grt funds & mtgs 1 ,500 1 ,500 Annual Chamber Wash. Conf. 1 ,000 1 ,000 RAA Annual Conference 0 0 AAOA Conference 500 500 Marketing Client Visits 1 ,500 1 ,500 10.050 0 • General Government Depaitment Aviation & Economic Development Division • Operations Program Fund 5550 - Airport Program 3950 Proeram Description. Objectives, and Analysis: This program operates the line service portion of the airport. The objectives include aircraft parking, tiedown, fuel servicing, towing, catering, rental car arrangements, hotel arrangements, and a full range of customer service. This program manages the sale of aircraft products including fuel and oil and fees for parking, hangar usage, and cleaning. This program is also responsible for the fuel storage farm and the fueling equipment including the service trucks and associated equipment. Actual Budgeted Estimated Budgeted 2001 2002 2002 2003 Program Staff Full-Time Equivalent Positions 1 .92 1 .70 1 .70 3.00 Program Expenditures • Personnel Services $ 69,949 $ 66,383 $ 68,674 $ 59, 172 Materials and Supplies 65 1 ,140 500 323,140 Services and Charges 35,379 212,566 34,066 435118 Maintenance 24,952 14,601 81450 7, 100 Capital 373 1 ,727 1 ,710 9,000 $ 1302718 $ 296,417 $ 113,400 $ 441 ,530 Performance Measures Demand/Workload 1 . Scheduled Hours of Operation 5,148 5, 148 51148 2. Aircraft Service Requests 1 ,825 29086 2,500 3. Line Service Emp. Training Sessions N/A N/A 3 9 Results 1 . Weekly Hours of Operation 99 99 99 2. Gallons of Fuel Sold 2202000 283776 320,000 3. Safety Related Incidents N/A N/A 1 0 • General Government Department Aviation & Economic Development Division Operations Program • Fund 5550 - Airport Full Amount (Less) Program 3950 Actual Budgeted Estimated Requested Target Budgeted 2001 2002 2002 2003 Overruns 2003 Personnel Services 5550.3950.5100.00 Salaries and wages S 52,875 $ 50,476 $ 53,000 $ 69,791 $ 37,937 $ 31 ,854 5550.3950.5103.00 Overtime 910 0 0 1 ,058 1 ,058 5550.3950.5105.00 FICA taxes 3,918 3,886 4,081 5,455 5,455 5550.3950.5107.00 Life Insurance 211 233 241 327 327 5550.3950.5108.00 Health Insurance 6,211 7,067 6,272 15,300 15,300 5550.3950.5108.01 LTD Insurance 207 229 205 321 321 5550.3950.5108.02 ADD Insurance 33 31 31 54 54 5550.3950.5109.06 Retirement savings plan 5,584 4,461 4,844 4,803 4,803 69.949 66.383 68,674 97,109 37.937 59.172 Materials and Supplies 5550.3950.5204.00 Chemicals 0 640 0 10,640 10,640 5550.3950.5210.00 Minor equipment 17 0 0 0 0 5550.3950.5212.00 Signs 48 500 500 500 500 5550.3955.5213.02 Jet fuel 0 0 0 200,000 20,000 180,000 5550.3955.5213.03 AVGAS 0 0 0 150,000 20,000 130,000 5550.3955.5214.00 Parts, oil, accessories 0 0 0 2,000 2,000 65 1 .140 500 363.140 40.000 323.140 Services and Charges 5550.3950.5302.00 Uniformstpersonal equip 0 0 0 900 900 5550.3950.5303.00 Publications & dues 220 0 0 0 0 5550.3950.5304.00 Travel & Training 0 0 0 3,000 3,000 5550.3950.5308.03 Equipment rental 0 3,000 0 23,206 23,206 5550.3950.5314.00 Professional services 0 176,400 3,000 1 ,000 1 ,000 • 5550.3950.5315.00 Contract services 3,204 3,300 1 ,200 2,400 2,400 5550.3950.5331 .00 Motor pool charges 9,198 11 ,312 11 ,312 0 0 5550.3950.5331 .01 Replacement charges 10,745 5,942 5,942 0 0 5550.3950.5331 .02 Shop overhead charges 10 0 0 0 0 5550.3950.5399.00 Cost allocation 12,012 12,612 12,612 12,612 12,612 35.379 212.566 34.066 43,118 0 43.118 Maintenance 5550.3950.5400.00 Building & grounds maint 21,796 8,350 3,500 1 ,000 1 ,000 5550.3950.5402.00 Radio maintenance 1 ,650 1 ,701 1 ,400 1 ,500 1 ,500 5550.3950.5403.00 Vehicle & machine maint 856 1 ,500 1 ,000 1 ,500 1 ,500 5550.3950.5405.00 Lighting equipment maint 645 2,355 2,200 2,500 2,500 5550.3950.5407.00 Small equipment maint 5 695 350 600 600 24.952 14.601 8,450 7.100 0 7.100 Capital 5550.3950.5890.00 Minor equipment 373 1 ,727 1 ,710 9,000 9,000 373 1 .727 1 .710 9,000 0 9.000 TOTAL S 130,718 $ 296.417 S 113.400 $ 519.467 $ 77,937 $ 441 .530 • General Government Department Aviation & Economic Development Division • Fund 5550 - Airport Operations Program Program 3950 Full Amount (Less) Requested Target Budgeted Account Number Account Title Item Description 2003 Overruns 2003 . 5550.3950.5204.00 Chemicals Herbicide/veg. control 10,000 10,000 Urea - (runway de-Icer) 640 640 10,640 0 10.640 5550.3950.5212.00 Signs Required security and 500 500 500 0 500 5550.3950.5213.02 Jet Fuel 200,000 200,000 5550.3950.5213.03 Av Gas 150,000 150,000 5555.3950.5214.00 Oil 2,000 2,000 352,000 352,000 5550.3950.5304.00 Travel & training Airside Operations 1 ,000 1 ,000 Security Training 1 ,000 1 ,000 Fire Dept Rescue Training 1 ,000 1 ,000 3.000 0 3,000 5550.3950.5314.00 Professional Services Misc. professional svc. 1 ,000 1 ,000 FAA Air Traffic Control Tower Costs 0 0 1 .000 0 1 ,000 5550.3950.5315.00 Contract Services Annual herbicide treatment 0 0 Misc. contract service 2,400 2,400 2,400 0 2.400 • 5550.3950.5400.00 Bldg. & Gmds. Maint. Misc Repair/Maintenance 1 ,000 1 ,000 RPZ tree removal 0 0 Hangar doors/auto gates 0 0 Misc hangar repairs 0 0 Cost of Services i.e. dirt 0 0 139 Compliance 0 0 Painting & marking 0 0 Pavement maintenance 0 0 Locks / keys 0 0 Environmental Regulation Compliance 0 0 1 ,000 0 1 ,000 5550.3950.5402.00 Radio Maintenance Misc repairs/Air radios 500 500 System Costs and Repairs 1 ,000 1 ,000 1 .500 0 1 ,500 5550.3950.5403.00 Vehicle and Machine Maint FueVOiVMinor Parts 1 ,500 - 1 ,500 1 .500 0 1 ,500 5550.3950.5405.00 Lighting Equipment Maint Airfield Lighting 0 0 Generator 0 0 0 0 0 5550.3950.5407.00 Small Equipment Maint. Repairs to Small Equipment 300 300 300 0 300 • General Government Department Aviation & Economic Development Division • Airport Maintenance Program Fund SSSO - Airport Program 3955 Program Description, Obiectives, and Anal This program maintains the airport buildings and grounds to part 139 standards. Objectives include preventative maintenance programs, daily inspections and record keeping, airfield mowing and snow removal, operation and maintenance of airfield lighting and sign systems, pavement marking and maintenance all while maintaining a "0" deficiency rating on all airfield inspections. Actual Budgeted Estimated Budgeted 2001 2002 2002 2003 Program Staff Full-Time Equivalent Positions 2.00 3. 10 3. 10 3.00 Program Expenditures Personnel Services $ 17,406 $ 95,936 $ 103, 115 $ 113,749 Materials and Supplies 116,270 324,200 3467050 7,250 • Services and Charges 22,935 559590 22,350 2,850 Maintenance 1 ,256 1 ,350 915 412950 Capital 81140 7,550 12,800 89350 $ 166,007 $ 484,626 $ 485,230 $ 174, 149 Performance Measures Demand/Workload 1 . Operate One Airport to FAR Part 139 Specifications Standards I I 1 Results 1 . Inspections Performed 365 365 365 2. Lights/Signs Maintained 467 467 467 3. Miles of Fence Maintained 5 5 5 4. Airfield Acreage Mowed 65 185 185 5. Airfield Deficiencies 0 0 0 • General Government Department Aviation & Economic Development Division Airport Maintenance Program • Fund 5550 - Airport Program 3955 Full Amount (Less) Actual Budgeted Estimated Requested Target Budgeted 2001 2002 2002 2003 Overruns 2003 Personnel Services 5550.3955.5100.00 Salaries and wages $ 14,416 $ 71 ,155 $ 74,064 $ 80,326 $ $ 80,326 5550.3955.5103.00 Overtime 1 ,447 1 ,080 . 4,850 1 ,391 1 ,391 5550.3955.5105.00 FICA taxes 1 ,201 5,561 5,788 6,293 6,293 5550.3955.5107.00 Life insurance 7 329 329 376 376 5550.3955.5108.00 Health insurance 333 14,185 14,185 15,300 15,300 5550.3955.5108.01 LTD Insurance 0 323 323 370 370 5550.3955.5108.02 ADD Insurance 2 56 56 54 54 5550.3955.5109.06 Retirement savings plan 0 3,247 3,520 9,639 9,639 17.406 95,936 103,115 113.749 0 113.749 Materials and Supplies 5550.3955.5200.00 Office supplies/printing 171 650 1 ,500 1 ,500 1 ,500 SSS0.3955.5203.00 Cleaning supplies 9 200 200 2,750 2,750 5550.3955.5204.00 Chemicals 0 1 ,500 1 ,500 2,000 2,000 5550.3955.5209.00 Software 0 350 350 0 0 5550.3955.5212.00 Signs 340 1 ,000 1,000 1 ,000 1 ,000 5550.3955.5213.02 Jet fuel 65,730 175,000 190,000 0 0 5550.3955.5213.03 AVGAS 49,660 144,000 150,000 0 0 5550.3955.5214.00 Parts, oil, accessories 360 1 ,500 1 ,500 0 0 116.270 324,200 346,050 7,250 0 7.250 Services and Charges 5550.3955.5301 .00 Public notification 953 9,000 2,500 0 0 5550.3955.5302.00 Uniforms/personal equip 235 1 ,650 650 2,200 2,200 • 5550.3955.5303.00 Publications & dues 50 740 0 0 0 5550.3955.5308.03 Equipment rental 8,859 21 ,600 15,000 500 500 5550.3955.5310.00 Utilities 157 0 0 0 0 5550.3955.5310.01 Telephone expense 2.181 2,500 1 ,600 0 0 5550.3955.5311 .00 Insurance-vehicles/bldgs 10,500 13,500 0 0 0 5550.3955.5314.00 Professional services 0 1 ,000 0 0 0 5550.3955.5315.00 Contract services 0 0 0 0 0 5550.3955.5319.00 Bad debt expense 0 500 0 0 0 5550.3955.5329.00 Employee recognition 0 100 100 150 150 5550.3955.5342.00 Promotional activities 0 5,000 2,500 0 0 22.935 55.590 22,350 2,850 0 2.850 Malntenanoe 5550.3955.5400.00 Building & grounds maint 370 0 700 43,300 20,000 23,300 5550.3955.5403.00 Vehicle & machine maint 886 1,350 100 18,500 18,500 5550.3955.5407.00 Small equipment maint 0 0 115 150 150 1 ,256 1 ,350 915 61 ,950 20,000 41 ,950 Capital 5550.3955.5801 .00 Fixed assets 0 0 5,250 2,500 - 2.500 5550.3955.5890.00 Minor equipment 8,140 7,550 7,550 5,850 5,850 8,140 7,550 12,800 8.350 0 8.350 TOTAL $ 166.007 $ 484,626 $ 485.230 $ 194.149 $ 20,000 $ 174,149 • i/ General Government Department Aviation & Economic Development Division Airport Maintenance Program Fund 5550 - Airport Program 3955 Full Amount (Less) Requested Target Budgeted Account Number Account Title Item Description 2003 Overruns 2003 5550.3955.5200.00 Office supplies/printing Copy paper & preprinted forms 0 0 Employee Badge 0 0 Printing/Marketing Items 0 0 Business cards 0 0 Federal Express/Emerg Overnight 0 0 Computer & Fax Supplies 0 0 Misc pens/pencits/pads/etc 0 0 Credit card system set up 0 0 0 0 0 5550.3955.5203.00 Cleaning Supplies Mops, towels 250 250 Paper products, misc 1 ,500 1 ,500 Chemicals and cleaners 500 500 Can liners & trash bags 500 500 2,750 0 21750 5550.3955.5204.00 Chemicals Fire Extinguisher Service 1 ,500 1 ,500 Aircraft De-icer Fluid 0 0 Ice Melt 500 500 2,000 0 2.000 5550.3955.5301 .00 Public Notification Advertising 0 0 0 0 0 • 5550.3955.5302.00 Uniforms & personal equip Uniform allowance 900 900 Misc. safety items 500 500 Coveralls 500 500 Boots 180 180 Rainsuits 120 120 ARFF Turnout Gear 0 0 2.200 0 2.200 5550.3955.5303.00 Publications & dues ADEO Registration / Certification 300 300 Daily Newspapers 0 0 Subscriptions / Misc books 0 0 Internet Fees 0 0 AOPA - Weather 0 0 300 0 300 5550.3955.5304.00 Travel & training Employee Training 1 ,000 1 ,000 Trade Conferences 0 0 Spec conf/wrkshps FAR 139 0 _ 0 Marketing Client Visits 0 0 1 ,000 0 11000 5550.3955.5310.01 Telephone Expenses Telephone lines/bills 0 0 Telephone System Service 0 0 Telephone equipment 0 0 Two Cellular Phones 0 0 0 0 0 5550.3955.5311 .00 Insurance General Liability Hangark • epers Completed Op Completed Operations Premise Liability i/ General Government Department Aviation & Economic Development Division Airport Maintenance Program Fund 5550 - Airport Program 3955 Full Amount (Less) Requested Target Budgeted Account Number Account Title Item Description 2003 Overruns 2003 Total 0 0 0 0 0 5550.3955.5314.02 Professional Services Engineering / Design 0 0 Marketing/Industry Data 0 0 0 0 0 5550.3955.5315.00 Contract Services Muzak 0 0 Credit card service fees 0 0 DUWATT 0 0 0 0 0 5550.3955.5329.00 Emp. Recognition Safety Awards 0 0 Employee of the Quarter 0 0 Appreciation Dinner 0 0 0 0 0 5550.3955.5890.00 Minor Equip Misc. Equipment 2,000 2,000 Misc. hand tools 1 ,000 1 ,000 De-icer equipment 750 750 Tow Bar 500 500 Ear protection 500 500 Flashlight wands 100 100 • Radio Equipment 1 ,000 1 ,000 5.850 0 5.850 5550.3955.5403 Vehicle and Machine Maint Division owned 2,500 2500 Motorpool 10,000 10000 Replacement 6,000 6000 18,500 18500 5550.3955.5400.00 Bldg & Grnds. Maint Hangar roof repair 20,000 20000 Building Maintenance 1 ,500 1500 Hangar door maintenance 7,000 7000 Fence and Gate Maint 1 ,500 1500 Misc Hangar Repair 2,500 2500 Compliance items 2,500 2500 Painting and Marking 500 500 Pavement Maintenance 2,500 2500 Locks and Keys 600 600 Environmental Compliance 700 _ 700 Flower Bed Maint 4,000 39300 • General Government Department Aviation & Economic Development Division • Capital Expenditures Program Fund 5550 - Airport Program 3960 Program Description. Objectives. and Analysis: This program captures the cost associated with capital improvements to the Airport's infrastructure, buildings, and fixed assets. Actual Budgeted Estimated Budgeted 2001 2002 2002 2003 Program Staff Full-Time Equivalent Positions 0.00 0.00 0.00 0.00 Program Expenditures Services and Charges $ (26, 120) $ 933,477. $ 241 ,915 _ $ 272,500 Maintenance 17,785 226,317 244,800 0 Capital 0 5,520,897 3,493,949 31910,000 $ (8,335) $ 696809691 $ 31980,664 $ 4, 182,500 Capital project expenditures for 2003 include: Professional Services $ 279,000 • East Corporate Hangars 3@60'x60' 450,000 Taxiway A Extension Phase 11300,000 10 bay T-Hangar 350,000 $ 2,379,000 • V . General Government Department Aviation & Economic Development Division Capital Expenditures Program • Fund 5550 - Airport Program 3960 Full Amount (Less) Actual Budgeted Estimated Requested Target Budgeted 2001 2002 2002 2003 Overruns 2003 Services and Charges 5550.3960.5301 .00 Public notification $ 186 $ 0 $ 1 ,510 $ 1 ,500 $ $ 1 ,500 5550.3960.5314.00 Professional services (26,306) 748,172 240,405 271 ,000 271 ,000 5550.3960.5315.00 Contract services ' 0 185,305 0 0 0 (26.120) 933.477 241 .915 272.500 0 272.500 Maintenance 5550.3960.5400.00 Building & grounds maint 17,785 226,317 244,800 0 0 17,785 226.317 244.800 0 0 0 Capital 5550.3960.5804.00 Building casts 0 475,518 1 ,144,863 1 ,510,000 1 ,510,000 5550.3960.5890.00 Minor equipment 0 0 0 0 0 5550.3960.7820.25 Airfield lighting rehab 0 155,491 0 0 0 5550.3960.7820.28 Ernest Lancaster Dr ext 0 208,247 0 0 0 5550.3960.7820.29 Pavement Maint & Rehab 0 2,174,641 2,232,356 0 0 5550.3960.7820.30 New Federal Grant 0 2,507,000 116,730 2,400,000 2,400,000 0 5,520.897 3,493.949 3.910,000 0 3,910.000 TOTAL $ (8,3351 $ 6.680,691 $ 3,980,664 $ 4.182.500 $ 0 $ 4,182,500 • V , General Government Department • Aviation & Economic Development Division Capital Expenditures Program Fund 5550 - Airport Program 3960 Full Amount (Less) Requested Target Budgeted Account Number Account Title Item Description 2003 Overruns 2003 5550.3960.5301 .00 Public Notification Bid.Ads 1 ,000 - 1 ,000 1 ,000 0 1 .000 5550.3960.5314.00 Professional Services Professional Services 149,000 149,000 Engineering / Grant Prelim 130,000 130,000 279.000 0 279.000 5550.3960.5400.00 Bldg & Grnds Maintenance Hangar Rehab 0 0 0 0 0 5550.3960.5804.00 Building Costs Small Corporate Hangars (3) 450,000 450,000 T Hangar Building (10) 350,000 350,000 West Corporate Ramp Phase II 690,000 East-Side Sef-Serve Fuel Station 20,000 20,000 1 ,510,000 0 620,000 5550.3960.5820.30 New Federal Grant Federal Grant / Local Matches 120,000 120,000 Ark Aeronautics Commission 120,000 120,000 AIP #30 Taxiway A Extension 2,160,000 2,160,000 2.400,000 0 2,400.000 • • LEASE AGREEMENT This LEASE is executed this day of by and between the City of Fayetteville, Arkansas, 113 W. Mountain Street, Fayetteville, Arkansas 72701 , hereinafter called Fayetteville and Air Cargo Carriers, Inc. Attn: Dragan Krecak, Director of Maintenance of 4984 S . Howell Avenue, Milwaukee, WI 53207 hereinafter called Air Cargo Carriers, Inc. 1 . Leased Premises. Fayetteville leases to Air Cargo Carriers, Inc., and Air Cargo Carvers, Inc. leases from Fayetteville, the property at 4500 S. School Avenue, Fayetteville, Arkansas, as reflected on Exhibit "A" attached hereto and make a part hereof. Leased Premise shall be for Air Cargo Carvers, Inc.'s exclusive use. 2. Lease Term. Subject to earlier termination as hereinafter provided, the initial term of this Agreement shall be for a period of one (1) year beginning on 151 day of October 2002. Fayetteville or Air Cargo Carvers, Inc. may terminate this lease at any time by giving the other party thirty (30) days written notice of termination. This agreement maybe extended for up to five (5) additional one year terms in accordance with the following procedure: At least 60 days prior to the scheduled termination date, Fayetteville shall give Air Cargo Carriers, Inc. written notice of the monthly rent payable in the extended term; at least 30 days prior to the term expiration date, Air Cargo Carriers, Inc. shall give Fayetteville written notice if Air Cargo Carvers. Inc. exercises this • option to extend. 3. Rental Fees. During the term of this lease, Air Cargo Carriers, Inc. agrees to pay Fayetteville for the use of the premises the sum of $ 262.68 per month. However, should the lease term begin on a day other than the first day of a calendar month, or should the lease end on a day other than the last day of a calendar month, such partial month lease payment shall be a prorated share of the monthly lease payment. The initial lease payment is due and payable upon the execution of this Lease Agreement, and all subsequent monthly lease payments shall be due and payable in advance on or before the first day of each calendar month thereafter. 4. Utilities, Maintenance and Janitorial Services A. By Fayetteville: Fayetteville shall be responsible for the payment of the utilities associated with water, lights, heating and cooling. Fayetteville shall maintain and keep in good repair so much of the Airport premises as is not under the exclusive control of individual Air Cargo Carvers, Inc.s. Fayetteville shall provide janitorial services only for all areas used in common by Airport terminal tenant. The Fayetteville shall not be responsible for, or pay for any expense which might arise due to, the installation and /or removal of equipment used in Air Cargo Carriers. Inc.'s business operation or signs. B. By Air Cargo Carriers, Inc.: Air Cargo Carvers. Inc. shall be responsible for the installation, relocation, modification and maintenance of all utility service other than that necessary • to provide water, light, heat or air to the Leased Premises. Air Cargo Carriers, Inc. shall maintain Leased Premises in a clean, orderly, and attractive condition; not allow the accumulation of rubbish, trash, or other waste material on the Lease Premises and provide for and supply all janitorial service for their exclusive use area. Air Cargo Carriers. Inc. shall place any materials or trash in trash receptacles. Written approval from the Airport Manager must be obtained prior to any improvements or additions to any part of the Leased Premises, or the installation of any attachment to the building (i.e. antennas, tower or signs). Any signs installed shall meet all City of Fayetteville Sign Regulations, and furthermore, any sign erected on or attached to the Lease Premises must have the prior written approval of the Fayetteville. 5. Hazardous Substances. Air Cargo Carriers, Inc. shall not cause or permit any Hazardous Substance to be used, stored, generated or disposed of on or in the Leased Premises, or in any Airport Drainage system. If the Airport property becomes contaminated in any manner due to Air Cargo Carriers. Inc.'s actions, Air Cargo Carriers, Inc. shall indemnify and hold Harmless the Airport from any and all claims, including a decrease in value of the Airport property. 6. Insurance. Air Cargo Carvers, Inc. shall provide the following! A. Workman's Compensation Insurance, as required by Arkansas Law. B. Insurance on the contents within the Leased Premises at all times during the term hereof, in amounts approved by the Airport Manager. C. A Certificate of Insurance shall be furnished to the Fayetteville, naming the City of Fayetteville as additional insured. The Air Cargo Carriers, Inc. shall indemnify, protect, defend and • hold completely harmless,- the Fayetteville and their trustees from and against all liability, losses, suits, claim judgements, fines or demands arising from injury or death of any person or damage to any property, including all reasonable costs for investigation and defense thereof(including attorney fees, court costs, and expert fees), of any nature whatsoever arising out of or incident to this lease, Air Cargo Carriers, Inc.'s use or occupancy of the Airport premises, the rights, licenses, or privileges granted Air Cargo Carriers, Inc. herein, or the acts or omissions of Air Cargo Carriers, Inc.'s agents, employees, regardless of where the injury, death or damage may occur. The Fayetteville shall give notice to Air Cargo Carriers, Inc. of any such liability, loss, suit, claim or demand, and Air Cargo Carriers, Inc. shall defend same using counsel reasonably acceptable to Fayetteville. No word, sentence, paragraph or phrase shall be construed to waive that tort immunity set forth under Arkansas Law. 7. Use of Airport. Air Cargo Carriers, Inc. is granted the use, in common with other airport terminal tenants, of the airport terminal building and grounds together with all facilities, equipment, improvements, and services which have been or may hereafter be provided. Air Cargo Carriers. Inc. agrees to observe and obey Fayetteville's Ordinances and Regulations with respect to use of the demised premises and Airport; provided, however, such Ordinances and Regulations shall be consistent with safety and with all city, county, state, and federal ordinances, rules and regulations. Air Cargo Carriers. Inc. agrees to abide by the rulings of the Federal Aviation Administration with respect to the use of the Leased Premises. `Airport Minimum Standards for Operations and Commercial Activities 'herein referred to as Airport Minimum Standards at Fayetteville Municipal • w2'" • Airport are made part of this lease by reference as if included word for word. Air Cargo Carriers, Inc. agrees to use the premises only for a business office for Air Cargo Carriers, Inc.. Any business other than the business office for Air Cargo Carriers, Inc. shall require the Airport Manager's approval. Air Cargo Carriers, Inc. will obtain and keep in force all certifications, permits and licenses required for the operation of the business office. Air Cargo Carvers, Inc. further agrees not to store any flammable material on the premises or in any way endanger or violate the provisions of Fayetteville's property insurance policy or the requirement of same. Such violations shall constitute a material breach of this Lease. Upon termination of Lease, Air Cargo Carriers, Inc. will leave all premises used in the same or better condition as existed at the initiation of the Lease. 8. Rights of Ingress and Egress. Air Cargo Carriers, Inc. shall have full and free right of ingress to and egress from the Leased Premises for Air Cargo Carriers. Inc., its employees, customers, guests, and other invitees except as reserved below. Such rights shall also extend to persons or organizations supplying materials or famishing services to Air Cargo Carriers, Inc.. Fayetteville 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 Air Cargo Carvers, Inc. . Fayetteville may enter the Leased Premises at any reasonable time for any purpose necessary or . incidental to the performance of the Fayetteville's obligations hereunder. 9. Events of Default. The following shall be events of default under the Lease, and include any • one or more of the following: A. Non-payment of the rental amount. B. If Air Cargo Carriers, Inc, transfers, subleases or assigns, either voluntarily or by operation of law, any portion of its interest in this Lease. C. Air Cargo Carriers, Inc. voluntarily abandons, deserts, or vacates the Leased Premises. D. Air Carpo Carriers, Inc. shall fail to comply with insurance requirements. 10. Termination. A. Fayetteville or Air Cargo Carriers, Inc. may terminate this lease at any time by giving the other party thirty (30) days written notice of termination. B. On the expiration or other termination of this lease,.Air Cargo Carriers, Inc.'s right to use the Leased Premises shall. cease, and Air Cargo Carriers, Inc. shall vacate the premises without unreasonable delay. All property installed, erected, or placed by Air Cargo Carriers; Inc. in, on, or about the premises leased hereunder shall be deemed to be personalty and shall remain the property of Air Cargo Carriers, Inc.. Air Cargo Carriers, hic. shall have the right at any time during the term of this Lease, or any renewal or extension thereof, and for an additional period of fourteen ( 14) days after the expiration of other termination of this Lease, to remove any or all of such property, subject, however to Air Cargo Carriers. Inc.'s obligation to repair all damage, if any, resulting from such removal. Any and all property not removed by Air Cargo Carriers, Inc. prior to the expiration of the aforesaid fourteen (14) day period shall thereupon become a part of the premises on which it is • located and title hereto shall thereupon vest in Fayetteville or Fayetteville may require removal and .,3., • restoration by Air Cargo Carriers, Inc.. 11 . Assigning, Subletting and Encumbering. Air Cargo Carriers, Inc. shall not sublet the Leased Premises, nor permit other persons to occupy the Leased Premises, not grant any license or concession for any part of the Leased Premises, or assign its rights under this Lease without the written consent of Fayetteville. No such subletting or assignment shall release Air Cargo Carriers. Inc. from its obligations to pay the rental set forth herein. 12. Mailing and Notice. Any notice or consent required by this lease shall be sufficient if sent by Certified Mail, return receipt required, postage paid, to the following address: FAYETTEVILLE: Air Cargo Carriers, Inc.: Airport Administration Office Air Cargo Carriers, Inc 4500 S. School Avenue, Suite F Attn: Dragan Krecak, Dir. of Maintenance Fayetteville, Arkansas 72701 4984 S. Howell Avenue PH: 718-7642 Milwaukee, WI 53207 PH: 414-482-1711/1 -800-253-1711 • 13 . Nondiscrimination . Air Cargo Carvers, Inc. agrees that it will not, on the grounds of race, color, or national origin, discriminate or permit discrimination against any person or group of persons. Air Cargo Carriers, Inc. will assure compliance with all regulations in regard to Non- discrimination and Affirmative Action. The Air Cargo Carriers, Inc. acknowledges that it is the policy of the Fayetteville Municipal Airport that it shall not discriminate on the basis of race, color, notional origin, or sex in the award and performance of all Airport contracts. • �4"