HomeMy WebLinkAbout2002-11-14 - Agendas - Final , t
AGENDA FOR THE AIRPORT BOARD MEETING
• NOVEMBER 14, 2002
1 :30 p.m.
Airport Conference Room
4500 S. School Avenue
1 . ITEM #1 : Welcome.
2. ITEM #2: Minutes of the October 3, 2002 meeting.
3. ITEM #3 : Receiving of reports.
A. Charles Wallace, Chairman.
B. Ray Boudreaux, Director.
C. James Nicholson, Financial Coordinator.
D. Construction report.
E. Maintenance report.
4. ITEM #4: Old Business.
A. Airport budget, final draft.
Action: Recommend to City Council.
• B. Consideration of proposal from Bill Corley.
5 . ITEM #5: New Business.
A. Rent Increase Policy.
Action by Board.
B. T-Hangar Rent Increase.
Action by Board.
C. Airport Fuel Pricing Policy.
Action by Board.
D. Consideration of a proposal from Marty London.
6. ITEM #6: Other Business.
A. Items from the Board.
B. Items from the Public.
7. Meeting Adjourns.
4UV-12-2002 10 : 38 P . 01
j for appointment to City Boards, Commissions, and Committees
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1 . What are your qualifications for serving on this committee, including education and expertise in the subject matter?
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i
Please fill out application COMPLETELY and return to: Heather Woodruff
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f . NOU-12-2002 10: 39
Have you ever wondered just how the City or
advisory UMUP37 P- 02
The City Council has adopted a "poticles and procedures' statement In order to (1 ) provide a broad CIWSs
section of qualified individuate for service on the appointed bodies; (2) provide an opportunity far partltipsgon in
city affair by interested citizens; and (3) provide a means for PA Council invoivema-IL
Applications for appointrients come from two principle sources:
1 . Periodic paid news advertisements of an edition of the Northwest.Arkanses Time. These are generally
placed at least eight weeks in advance of appointments, and they request that individuals notify the City
Clerk's oMoe of their interest in being considered for appointment Each applicant Pole out a short form,
which gives them and opportunity to specify why they think they're especially qual(fled for appointment
to a particular group.
2. Council members, city staff members, and Interested organizations and Individuals who know of
qualified persons often encourage them to apply for appointment
Once the rolled-out application forms are received, the City Clerk's Office circulates copies to the council
Nominating Committee. The Nominating Committee meets in open session, sets up tinea for personal
Interviews. and recwthmends to the entire Council their reoommendatiom for each appointment The City
Counal, again in open session, makes the final selection_
What aro the qualifications for serving on a City Committee? Accwding to a policy adopted by the Board on
January 7, 1976, revised on October 21 , 1986, and on January 3, 1989:
The following criteria should generally be considered in making appointments. Because of dliferencea in are
appointive bodies. however, the relative importance assigned to he various criteria win very with dit erht
appointments, For example, the Plenning Commission appointments would normally amphaslee experience and
expertise in the subject matter. Besides the general criteria below, special consideration (such as being an
orgenf=aoonal representative) may be important for some appointments.
1 , Expertise and experlence M the subject matter.
2. Interest in the subject matter. Attendance at a meaning of the committee is recommended prior to
application (You may contact the City Clerk for meeting time and location.)
3. Barone of appointive body in tame of personal characteristics such as occupatan, age, sex and
sections of the city residence, To be enaibbi ,, to serve on a crmmihee, you must be a renistemd voter
LBsIgIntt_le the comoreta 11MIts of Favettaville Moving from residence in the corporate limits of
Fayetteville oonstItutes resignation of oommlus membership.
4. IndivkhuWs ability to attend meetings of the appointive body. Absence from three consecutive meetings
is generally considered a basis for termination of membership on a city committee.
5. Willtrgness to serve.
6. Any person who has served two consecutive terms on any citizen commission or board Is not eligible for
re-appointment to the same group unf® ane tern of office has expired, unless Owe ars an insuffWard
rhumber of qualfffed applications to fol all vacencies.
-APPLICATION FORM
For appointment to City Boards, Commission3, and'Committew
TOTAL P. 02
• MINUTES OF THE AIRPORT BOARD MEETING
FAYETTEVILLE MUNICIPAL AIRPORT
October 3, 2002
MEMBERS PRESENT: Charles Wallace, Frank Burggraf, Frank Sperandeo, Mike
Andrews, Dave Bowman, Otto Loewer
MEMBERS ABSENT: Rick McKinney
STAFF PRESENT: Ray Boudreaux, James Nickolson, Troy Bates, Louise
Powers
OTHERS PRESENT: Wayne Jones-McClelland Engineers; John P. Ross-Ross
Executive Aviation, Inc. ; Christina Crouse-Airport Hair Salon; Kristal Dearing-Moming
News; Matt Wagner-NW Ark. Times; Judy Hammond-Ark. Air Museum; Michael
Stilwell-Fayetteville Government Channel
ITEM 91 : Welcome. Chairman Charles Wallace.
ITEM #2 : Minutes of the September 12, 2002 Meeting. The Board discussed changes
needed to the minutes.
• The motion was made by Dave Bowman and seconded by Mike Andrews to approve
the minutes with the amendments of changing the date listed on the minutes to
September 5`h, and the clarification that the FBO hangar can house one Gulf
Stream, not several. The motion carried.
ITEM 93 : Minutes of the September 26, 2002 meeting. The Board discussed changes
needed to the. minutes.
The motion was made by Frank Sperandeo and seconded by Otto Loewer to
approve the minutes with the following amendments: Minutes are to include the
FBO hangar will have radiant heating and careful consideration should be used in
the placement of the heaters and for parking the aircraft away from the heat; also
the location of the Board Meeting is to be corrected to the University of Arkansas
Engineering Research Center, not U. of A. Geneses; and Mr. Loewer's name be
corrected from "Lower" to "Loewer". The motion carried.
Chairman Wallace expressed appreciation to the Board members for reading the minutes.
Director Boudreaux introduced Troy Bates, our new FBO Supervisor, saying he has a
myriad of talents and he is a pilot. Chairman Wallace noted they were glad he is here.
•
1
• ITEM #4: Receiving of Reports.
A. Charles Wallace, Chairman. He asked the Board to check their schedules for the
next Strategic Planning Meeting. He presented a document titled "Fayetteville Municipal '
Airport —Scope of Responsibilities of the Board " and asked the document to be a part of
the minutes. He stated F. Sperandeo's "Standard Construction Plan " could be discussed
at the November meeting. R. Boudreaux responding to questions about the Maintenance
List, said the eastside restrooms are now locked. They could not be keyed to the T-
Hangar keys and separate keys will be provided for each T-Hangar tenant. F. Sperandeo
suggested cutting the grass east of the runway only twice a year to free up time for the
maintenance crew. R. Boudreaux stated the Airport is already working with someone on
that and referred him to the Director's Report in the agenda packet. C. Wallace explained
there would be two board members whose membership terms would be expiring at the
end of the year: F. Burggraf has completed a full term and M. Andrews, who filled
Truman Smith's unexpired term. C. Wallace asked that the Airport Board Membership
page from the City Clerk's office be attached as part of the minutes. He encouraged them
to reapply and for the Board to make it known there would be vacancies to fill. He also
asked that a copy of the Application be kept on hand at the Airport.
B. Ray Boudreaux, Director. The football game weekends went well and thanked
all who had helped and those who provided food for the Hospitality Table. Thirty-five
planes were parked for the Boise State game and eighty for the Alabama game. He
mentioned the memo from the Mayor, attached to the Director's Report The Mayor
• stopped by on the Alabama game day. Responding to Wallace' s question about the
Alabama slotting program, R. Boudreaux said the planes seemed to come in groups with
slack time between. C. Wallace explained the FAA had visited with them about the slot
program, because we had concerns that it was a determent to this Airport. Slotting is an
FAA controlled program established for safety because of the additional planes in the air.
R. Boudreaux said the system is designed to handle 100, we handled 80 planes with no
problem. He said he would be on hand for the B. B. King concert to insure everyone
stays inside the fencing. The Museum is handling the parking and may need volunteers.
Regarding the hay cutting cast of the runway, the Airport prefers to keep the grass under
18" to keep out animals, and we are working with someone to cut that grass. He has
already cut it twice this year for hay. F. Sperandeo expressed concern that his
Maintenance List had been shoved aside, stating he wants the Airport to be a show place.
He said that he and Barry West had cleaned the Pilots Briefing Room, and he asked that
routine maintenance be performed or to bulldoze the building down. R. Boudreaux
thanked them and said we are working on the items on the list. He said someone had
vandalized the restroom again, tearing the towel rack off the wall. Now with the new
locks the only people in the restrooms will be tenants with keys. C. Wallace explained
the Board and staff would talk about the Maintenance List at the Strategic Planning
Meeting rather than at the Board Meeting. R. Boudreaux commented the FAA Airport
Certification Inspector had spent two days here inspecting the airport and only one item
was found. The thresholds were not marked properly and we will have that fixed. The
re-skin project for the hangars is under way.
•
2
• C. James Nicholson, Financial Coordinator. Explained new charts were used to
reflect last year and the current status for fuel and aircraft operations. The Airport sold
close to 40,000 gallons of fuel in September. Fuel prices at local airports are going up as
well as the cost of fuel. We have new corporate businesses on the field purchasing fuel,
Flying Investments and Air Cargo Carriers. Fuel sold during the ballgame was 4,000
gallons of jet and 1 , 100 gallons of Av-gas. He noted that even in months with less
operations, the fuel sales are up. Responding to questions from J. Ross who questioned if
the 40,000 gallons was supporting the Airport staff's salaries, he replied it was
contributing. The Airport has several revenue sources. C. Wallace responding to other
questions from J. Ross, said those would be answered during the Budget Report.
D. Construction Report.
1 ) & 2) Executive Apron and Taxiway Project & FBO Hangar Project. R.
Boudreaux reported the corporate ramp and FBO hangar projects will be on the October
15`h City Council Meeting and the. projects should get started by October 20`h. We will
have a ground breaking ceremony. W. Jones reported they are re-seeding some areas and
applying some top soil along the taxiway. The project should be finaled out within the
next month. They will be painting the Threshhold bar, it was 10' wide and should have
been 15 ' wide. It had been partly covered by the rejuvenation project. W. Jones said he
had been working with the Forest Service and the FAA. He said the Forest Service had
part of their funding for the year pulled. The design is in process for their ramps and
loading docks. Even if McClelland had the plans ready, the project could not be bid until
• the FAA and the Forest Service have their funding. R. Boudreaux reported the lease was
signed and they are paying rent.
E. Maintenance Report. C. Wallace said the report would be deferred to the
Strategic Planning Meeting. R. Boudreaux did report the City's Street Department and
Airport staff had done ditch work to keep the drainage ditches open.
ITEM #5: Old Business. No old business.
ITEM #6: New Business.
A. State Aeronautics grant application.
Action: Recommend application to the City Council. W. Jones said there are
two contracts and four State grants, one grant for the FBO hangar and three grants for the
apron and he had been working with the State Aeronautics Department. R. Boudreaux
said he needed permission from the Board to amend the grant applications. The
amendments could be presented at the next Aeronautic Commission Meeting on
November 1P. C. Wallace asked for a "guide sheet" outlining the projects in progress,
and the grants and their amendments. W. Jones said he would work with staff on his
projects and staff can distribute the list.
A motion was made by Dave Bowman and seconded by Frank Sperandeo to amend
the existing grants: for the ramp for an approximate $71,000 for a 90/10 grant; for
• the apron and grass grant an approximate $32,000 for a 50/50 grant; and the grant
3
• for relocating the access road an approximate $15,000 for a 75/25 grant. The
motion carried.
M. Andrews said we have already approved the money, all we are doing is asking to
reduce the Airport's funding by asking for State grants.
B. Airport Budget.
Action : Recommend adoption to the City Council. Discussion followed
regarding the Budget and how the City's Budget process works. J. Nicholson explained
the City's Budget Department provides a budget format and a target budget. Airport staff
then develops budget figures. The budget is submitted to the Budget Department and
each department meets with the Budget Department to go over the Budget. Last year we
were already into the year and had to develop a new FBO budget so we can't compare all
of our budget to a previous year. C. Wallace commented that at this stage of the budget,
it is a City developed budget with no Board input. J. Nicholson said a lot of things are
already mandated, and the expenditures are things already recommended. Usually in
November the City takes the whole City budget to the City Council for approval, and
depending on the time frame, the Airport Board may need a Special Meeting. R.
Boudreaux explained the budget before them is in Draft form and has been submitted to
the Budget Department, but there are some penciled in changes from the last version. C.
Wallace expressed concern that none of the Board members understood the budget to
where they could explain the budget to others. R. Boudreaux said the first page is a
• summary for each program, and then you can go to the spreadsheet and it will break it out
and show the target overruns and that indentifies where there are percentage changes.
We have reorganized the budget into three programs: Administration, Operations, and
Maintenance. The FBO is in Operations. The Board requested a one page document,
rather than the City's format, showing how much we take in, how much we spend, and
what is the difference. F. Burggraf said we keep the fuel prices low as possible, but if we
increase the fuel prices it would give us more wiggle room. R. Boudreaux said one item
is the tower expense. We've not expensed the cost this year as they have not sent us a
bill. C. Wallace asked that the minutes show the Board will consider the budget at the
next Strategic Planning Meeting and view the finalized draft at the November Airport
Board Meeting.
C. Lease with Air Cargo Carriers. R. Boudreaux asked for this item to be added to
agenda. DHL leases their aircraft from Air Cargo Carriers. Air Cargo Carriers wants to
rent an existing garage in the terminal, with ramp access, for their office and to store their
aircraft parts.
Frank Burggraf made a motion and was seconded by Frank Sperandeo to approve
the lease. The motion carried.
D. Lease with Allied Research. R. Boudreaux asked for this item to be added to the
agenda. They want to rent the southeast office in the terminal. They are starting a small
• investigative operation, investigating security related items and does work for attorneys.
He will be filling out our Business Application.
4
• Mike Andrews made a motion and was seconded by Dave Bowman to approve the .
lease provided all of the application checks out. The motion carried.
ITEM #7: Other Business.
A. Items from the Airport Board. C. Wallace asked that the maintenance concerns
of Mr. Speranadeo be discussed at the Strategic Planning Meeting. Frank Sperandeo
asked that the construction progress be discussed at the Strategic Planning Meeting.
Frank Burggraf asked to present information for . proposed tower construction on
Brentwood Mountain, a mountain south of the Airport. Approval for the tower was given
by the County Planner without going through the FAA to be Airspaced to determine if
the tower will be an obstruction to aircraft approaching Drake Field. R. Boudreaux said
he had talked with the County Planner and had called one FFA office and had left a
message and had talked with another FAA office. Follow-up calls will be made and a
Special Airport Board Meeting may be called, if needed, for the Board to petition. The
location may not require Airspacing. If it was Airspaced, the FAA did not notify us.
B. Items from the Public. J. Ross asked Director Boudreaux, "How important is it
to keep his business here?" C. Wallace asked why he was asking? J. Ross said he may
make a large investment for the flight school. Said he had been here six years. C.
Wallace said we need a flight school, but there were pieces he didn't understand at that
time and that item needed to be discussed before the next meeting, for instance, whether
• we would extend the lease.
M. Kratchmer asked Ray to help promote the Private Pilots Ground School on October
19`s and 20's at the Arkansas Aviation Technologies Center. He also urged staff to
encourage the roofer to be careful. They were getting screws on their ramp 50 ft. out.
Ray said he had pictures of the ramp from the ballgame weekend. Troy had taken them
from a plane around dusk. This will help us with the parking plan for the next ballgame.
Meeting Adjourned,
• Frank Burggraf, Secretary Date
5
NOU-04-2002 17 : 15
P . 01i01
Boards and Commissions
• July 16, 2002
AIRPORT BOARD
Richard P. McKinney (Pilot) Dave Bowman (Aeronautical)
609 N. Olive Street 3458 Nottingham Place
Fayetteville, AR 72701 Fayetteville, AR 72703
1)521-3480 W)442-7369 11)582-0485 W)986-6927
Third term First term/New Position
02/01/94 to 12/31/03 03/31/01 to 12/31/06
Frank Burggraf (Member-at-Large) Otto I Loewer (University afArkansas)
18665 Brentwood Mountain Road 1900 Rockwood Trail
Winslow, AR 72959-9755 Fayetteville, AR 72701
H)634-7059 H)521-6133 W)575-3054
First fiW term/Replaced Leo Yanda First term/Now Position
06/04/96 to 12/31/02 03/31/01 to 12/31/06
R rank Sperandeo (Aeronautical)
15841 Pear Circle
Fayetteville, AR 72704
• H)521-2609W)283-3383 •
First tam/Replaced Donald Lyall
12/31/00 to 12/31/05
Michael D. Andrews (Business)
925 N. Meadowlands Drive
Fayetteville, AR 72704
H)443-1461 W )443-7500
Unexpired term/Replaced Truman Smith
12/31/00 to 12/31/02
Chairman
Charles Wallace (Pilot)
250 Skyline Drive
Fayetteville, AR 72701
H)582.3081 W)443-4531
Second term/Replaced John Gearhart
12/16/97 to 12/31/04
• 4 •
TOTAL P. 01
Fayetteville Municipal Airport
Scope of responsibilities of the board :
Mission: To serve Fayetteville and Northwest Arkansas
by
Providing access to aviation transportation and
educational programs that contribute to the community
and its prosperity
• Advisory to the City Council in all matters of airport
operation and development
• Members serve as public advocates and .interpreters
of the airport' s value to city and area residents
• Advise and support the work of the airport staff
• Review and recommend (to City Council) concerning
matters of contractual arrangements
• Review and recommend (to City Council) concerning
the annual budget and capital development items
• Establish guidelines for leases and other charges to
be assessed for airport use and services
• Report the "state of the airport" to the City Council at
least once each year
These items have been distilled from General Policies and
Procedures for the Drake Airporl Board and other
documents, are subject to change as needed and as presented
here, are intended only as general rubrics to guide the work of
the board September, 1001
We are
Transforming Drake Field
• into a
model General Aviation Facility
MONTHLY REPORT
Director, Aviation and Economic Development
Fayetteville, Arkansas
October 2002
The first Friday of the month we hosted the BB King concert. As a result of good planning, the
event went off without a hitch. They paid our feed on time and for the most part left the area the
way they found it. We returned their deposit gladly. Should we do something like this in the
future we will install another gate to the area to help with parking control and to allow for a more
orderly and expeditious departure.
We finalized the agreement with Superior Industries for their purchase of ground in the Industrial
Park and with Danaher for their construction of a sidewalk. Both companies were awarded
grants for their projects and both grant agreements were signed and approved by the City
Council.
• We defended our budget submission several times to the City Budget Division. We have
reorganized the budget to more appropriately align the expenses in the three separate companies
that operate and maintain the airport. We have divided the budget into Administration,
Operations and Maintenance. Revenue and Capital budgets represent the other areas of the
airport budget. We also administer the Economic Development budget.
With Doc's help we were able to come up with a budget brief form that will help us keep track of
our revenue and expenses. We will use it for the monthly Board meeting to keep the Board
members up to date on airport operating revenues and expenses and the status of the fund
balance.
We spent most of one day and a better part of another day with a developer interested in
purchasing land in the Fayetteville area. We looked at property adjacent to the airport as well as
property at the Wilson Springs Business Park. He will return to Fayetteville in early November.
We met with the Razorback Approach Control concerning the slot program for aircraft arrivals
during the Alabama game. There were no real problems experienced. They will not slot again
until the 2004 season when they will probably slot the Texas game.
We had the first Airfest 2003 meeting with the museum. There are many new events planned
and the show will be bigger and better. 2003 is the 100`" anniversary of flight and the area
• celebration will center around the airfest. We look forward to a great show. We have sent
forward our request for military support.
We had the preconstruction meeting for both new projects. The contractors are very motivated to
begin and complete the projects. We also held a ground breaking ceremony. Thanks to the
• Airport Board for 100% attendance. We were honored to have the Mayor and Alderman
Reynolds present as well.
Our Strategic Planning meeting was very productive. We agreed to increase the rent by 5% in
2003 with renewals. We also agreed to increase the price of fuel nominally. We will work on a
policy to increase the rates at later meetings. We are working on formulas that will allow
automatic increases at a rate agreeable to all.
We had two game weekends in October and once again, we had great support from the airport
family. Marie, Denise, Fred, James and all the team were here to make sure our customers were
treated with the best we had to offer. We had some great comments and will continue to make
the football and basketball crowd welcome. We dropped the trolly from Ozark Transit and are
now supported by a private limo operator. They make a little and we provide the needed service.
It is a win—win deal.
The re-skin project is well underway. There have been some bumps in the road, but we continue
to make progress.
Our maintenance staff started the rehab on the new pilot lounge with an entrance near the FBO
counter. Some paint and new carpet will make it a good place for crews to wait for passengers.
We will need to buy some furniture to furnish the room but am sure when finished, it will entice
crews to encourage their passengers to fly Fayetteville Drake. We are still working on the design
• of our FBO counter and flight planning area. We hope to have assistance from the City Building
Division with design and construction. Troy has a lot of good ideas and we want him to make it
happen. He is really earning his pay—we are very happy to have him on board.
&kZo(�Submitted,
Ray M. Boudreaux
Director
•
• 11 October 2002
Mr. Ray Boudreaux
Director of Aviation and Economic Development
Fayetteville, Municipal Airport
4500 South School Ave
Suite F
Fayetteville, Arkansas 72701
Dear Ray:
Per our conversation of yesterday, I would be quite happy to prepare a short (20-30
minute presentation and documentation- for the board. It will outline the results of our
recent survey from a marketing communications and strategy development standpoint.
My quote is as follows:
Hourly billing—five hours @ $75/hour. . . . . . . . . . . . . . . . . . . . . .$375 .00
• One hour to attend board meeting a present. . . . . . . . . . . . . . . . . . .. . 75.00
Misc printing/coping. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..25 .00
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $475 .00
Let me know if wish to move forward on this.
Sincerely,
(signed)
William H. Corley
307 Sutton Street
Fayetteville, Arkansas
72701
479.466. 5879
bill@williamcoricy.com
•
• FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DAN COODY, MAYOR
' MEMORANDUM
TO : Fayetteville Muni pal rport Board
FROM : Ray M. Boudre ux
DATE: November 14, 2002
SUBJECT: Rent increase policy
Attached please find a letter proposed to be sent to the T Hangar tenants if the Board passes the
• rent increase with renewals in 2003. This increase is very much needed and will cover costs of
many maintenance and improvement items that must be done and paid for. Since it is so hard for
the Board to consider and approve increases, it should be done by policy and therefore
automatically by formula. The attached formula is recommended.
The formula is nothing but an increase based on the increase in the consumer price index plus
1 %. It does not keep the airport even based on the value of the dollar when the hangar originally
leased but it is close. The 1 % additional attempts to make up for the straight line increase of the
CPI over a two year period and to recover some of the value lost while the index was increasing.
As we consider a periodic increase policy there needs to be an additional factor included into the
process. Each airport in the area has T Hangars. They are all of different quality and they are not
the same size. We should consider the market rental rates as we determine whether or not to
implement the increase.
Aviation and Economic Development Department
4500 South School, Suite F
Fayetteville, Arkansas 72701
• (479) 718-7642
Ray M. Boudreaux, Director
rboudreaux@ci.fayetteville.ar.us
• 1 recommend that we establish a rent increase policy that establishes a rate by policy, but not
necessarily a period. The above formula would be my recommendation for the rate. As for the
period, it would normally be every two years, but would require action at the November Board
meeting to go into effect. At that Board meeting, the staff would prepare a briefing on the
increase based on the increase in the CPI and would also prepare a market analysis to determine
the market rates in the local area. While those receiving increases this year would not receive
increases until 2004, new tenants might see a different rate than that currently in place thus
requiring action by the Board every November. A new hangar tenant in February 2003 would
pay a rate equal to the rate being paid by all tenants as increased by the 5%. A new tenant in
February 2004 would pay a rate as established by the Board and based on the increase in the CPI
plus I % since the rent was last increased on January 2003.
This policy would still require Board input and action on the increase every year but
would establish a basis on which to compute the increase that is fair.
•
Aviation and Economic Development Department
4500 South School, Suite F
Fayetteville, Arkansas 72701
• (479) 718-7642
Ray M. Boudreaux, Director
rboudreaux@c i.fayeneville.ar.us
• LEASE ATTACHMENT NUMBER ONE
Rent adjustments shall be made as of the commencement of each of the Dates Upon Which Rent
Increases Apply and shall be determined by the following formula:
Rent as last so increased under this Lease
multiplied by:
1 + Current Index - Base Index
Base Index
plus:
one percent ( 1 %) of the Rent as last so increased under this Lease
Where, "Current Index" shall be the CPI (D-1 Consumer Price Index All City Average, " all
items groups, subgroups and special groups, "published monthly in the Monthly Labor Review ofthe
• Bureau of Labor Statistics of the United States Department of Labor) for the month immediately
prior to the applicable Dates Upon which Rent Increases Apply, and Base Index shall be the CPI for
the month immediately prior to the Commencement Date or the most recent Dates Upon Which Rent
Increases Apply, whichever is applicable. In no event, however, shall the Rent for any period be less
than the Rent as last so increased under this Lease. In the event that such CPI is no longer published
or otherwise available, the adjustment provided for herein shall be by the successor (or the most
nearly comparable successor index) thereto, adjusted as appropriate to the applicable dates.
•
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DAN COODV, MAYOR
MEMORANDUM
TO : Fayetteville icipal A' port Tenants
FROM: Ray M. Boudrea
I
DATE : November 14, 2002
SUBJECT: T Hangar rent increase
At the Airport Board meeting of November 14, 2002, the board voted unanimously to increase
the rent on the T Hangars by 5% with renewals in 2003 . As provided in the terms of the lease,
each tenant will be notified 60 days prior to renewal of the new rent amount.
The last T Hangar rent increase was in June 1988. The five percent represents a $5 .75 increase to
• $ 120.75 for the small hangars and a $7.05 increase in the large hangars to $ 148.05 .
This additional revenue will help to fund the T Hangar roof maintenance program that will cost
$20,000 the first year and a similar amount in subsequent years. We recently acquired new high
lift equipment that will allow us to safely work on the hangar doors. We anticipate that we will
need $5 ,000 in parts to repair the doors next year. We have established a procedure to check
door cables, cable tension, door hinges, motors and switches to insure proper and safe operation
of the doors.
The 2003 budget shows a loss to the airport fund of approximately $250,000.00. This includes
the expected revenue from the rent increase and an increase in the retail price of fuel. We
generate revenue to pay for the services we provide and the maintenance of the airport through
rent and fuel sales. We are constructing a new hangar and hope to fill it up quickly. We are
developing a new hangar area for people to build their own facility on ground they rent from the
airport. We plan to continue building on our infrastructure which means more based aircraft with
increases in rent and fuel revenues increasing the revenue stream, reducing the deficit.
Aviation and Economic Development Department
4500 South School, Suite F
Fayetteville, Arkansas 72701
• (479) 718-7642
Ray M. Boudreaux, Director
rboudreaux@ci.fayetteville.ar.us
• In 2003, we have budgeted three 60 X 60 small corporate hangars east of the T Hangar area. We
have also budgeted construction of another T Hangar building if we have the tenants to fill it, and
a self serve AVGAS system for the T Hangar area.
The other part of the equation is recruiting the aircraft and people to fill our development.
We believe that we have the greatest, most beautiful, best general aviation airport in the region.
We believe that we have the best location for both the recreational aviator and the business flier.
We believe that the business center of Northwest Arkansas remains the City of Fayetteville.
Fayetteville Municipal Airport, Drake Field will grow to support business and recreation. We
need to be ready and we need to make sure that the word gets out that we are ready and that we
enthusiastically welcome new tenants and businesses to locate at Fayetteville Drake.
We trust that each of you will understand our dilemma. Keep prices down to attract more tenants
and activity while continuing to pay the bills. The airport operation is a $ 1 .7 MM business. We
will take in $ 1 .45 MM in 2003. Our capital program is another $ 1 .0 MM of airport money that
will leverage more than $ 1 .5 MM of Federal and State grant money.
We continue to pursue excellence. We sincerely appreciate your continued support and
commitment to make Fayetteville Drake the best it can be and a valued source of community
pride. Thanks for your help.
•
Aviation and Economic Development Department
4500 South School, Suite F
Fayetteville, Arkansas 72701
• (479) 718-7642
Ray M. Boudreaux, Director
rboudreaux@ci.fayetteville.ar.us
FAYETTEVILLE
THE CITY OF FAYETTEVILLE, ARKANSAS
DAN COODY, MAYOR
MEMORANDUM
TO: Chairman Wallac
Airport Boar
FROM : Ray M. Bo reaux
DATE : October 25, 2002
SUBJECT: Airport Fuel Pricing Policy
Following discussions at the strategic planning session of October 24, 2002, the Airport Board
agreed that we should increase the retail price of our fuel by $.05 for avgas and $.20 for jet. This
increase is due to the substantial increase in the delivered wholesale price of the fuel. Delivered
price has increased by 25% for avgas and 50% for jet. This increase makes it extremely difficult
• for the airport to cover its costs. The increase will take effect January 1 , 2003 and will result in
the retail price for avgas of $2.30 and for jet $2.20. These prices include the credit card fee
required by City Ordinance.
The Board also agreed that we should develop a pricing formula that could be used to price our
fuel to the retail customer. That formula would include a delivered wholesale cost including
taxes and fees (A); an into plane cost including truck fees, insurance, personnel etc. (B); and a
margin (C). The formula of A + B + C = retail price. The analysis is to be performed using the
last delivered load price of the month and pricing changed only once each month to be changed
on the 151. There are several decisions to be made concerning this policy.
1 . What is included in the into plane fee?
a. Personnel g. Weather system (WSI)
b. Insurance It. Telephone expenses
c. Truck lease i. Crew expenses (courtesy car, hospitality items)
d. Advertising j . Other promotional costs
e. POS cost k. Uniforms
f. Office rent
Aviation and Economic Development Department
4500 South School, Suite F
Fayetteville, Arkansas 72701
(479) 718-7642
Ray M. Boudreaux, Director
rboudreaux@ci.fayetteville.ar.us
1•
• 2. What should the margin be? ($.08 for Avgas and $.30 for jet?)
Computing the current price for avgas the formula would look like:
A = $ 1 .5253 (fuel plus federal tax) +. 1545 (sales tax) _ $ 1 .6798
B = $.0932 (truck) + .0015 (POS) + .4464 (personnel) + .0343 (Ins) + .0082 (Ad) + .0219
(Rent) _ $.6055
C = $.08 (Margin)
Price using this formula for AVGAS would be $2.37 per gallon CASH.
Price for credit card users would be $2.43 (2.5% surcharge)
Computing the current price for jet using the formula the following are the numbers:
A = $ 1 . 1995 (fuel price plus fed tax and fees) + $. 1337 (sales tax) _ $ 1 .3332
B = $.0524 (truck) + .0015 (POS) + .4464 (personnel) + .0343 (Ins) + .0082 (Ad) +.0219
(Rent) _ $.5647
C = $.30 (Margin)
Price using this formula for Jet would be $2.20 per gallon CASH
Price for credit card users would be $2.25 (2.5% surcharge)
•
Aviation and Economic Development Department
4500 South School, Suite F
Fayetteville, Arkansas 72701
• (479) 718-7642
Ray M. Boudreaux, Director
rboudreaux@ci.fayetteville.ar.us
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