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HomeMy WebLinkAbout2003-02-13 - Agendas - Final • AGENDA FOR THE AIRPORT BOARD MEETING February 13, 2003 1 :30 p.m. Airport Conference Room 4500 S. School Avenue 1 . Welcome, Chairman Charles Wallace. A. Results of the City Council Nominating Committee. Nominations will be presented to the City Council on February 18`h for Council approval. B. Recognition of Frank Burggraf, departing Airport Board Member, and his appointment as Airport Board Historian. 2. Minutes of the January 9, 2003 meeting. 3 . Receiving of Reports. A. Charles Wallace, Chairman. B. Ray Boudreaux, Director. 1 ) Monthly Report. 2) Air Show. C. James Nicholson, Finance Coordinator. Fuel, Activity, and Financial Reports. D. Louise Powers, Secretary. T-Hangar Report • E. Construction Report. F. Maintenance Report. 4. Old Business. 5 . New Business. A. Request for Qualifications (RFQ) for an engineering firm for the Airport. B. Airport Board Presentation for the City Council Meeting on February 181h. C. Airport's 2003 Capital Program. D. Ground Lease for Flying Investments. E. Maintenance Hangar Lease for Aviation Maintenance Professionals. 6. Other Business. A. Items from the Board. B. Items from the Public. 7. Meeting Adjourned. REMINDER: * Strategic Planning Meeting, 11 :00 a.m., prior to the Airport Bd. Mtg. 3-13-03 * Airport Board Meeting 1 :30 p.m., March 13, 2003 • AIRPORT BOARD MINUTES January 9, 2003 MEMBERS ATTENDING: Charles Wallace, Rick McKiinney, Frank Burggraf, Frank Sperandeo, Mike Andrews, Dave Bowman, Otto Loewer STAFF ATTENDING: Mayor Dan Coody, Ray Boudreaux, James Nicholson, Louise Powers OTHERS ATTENDING: Amy Wolfe-Fayetteville Government Channel; Judy Hammond-Ark. Air Museum; Bill Duncan-Duncan and Assoc. ; Marie Wilson-Aces High Pilot Shop; David Hollman-Flying Investments; Wayne Jones-McClelland Engineers; Matt Wagner-NW Ark. Times; Greg McCoy-Aviation Tech. Center ITEM 1 : Welcome. Chairman Charles Wallace welcomed everyone attending and those watching on TV. ITEM 2: Minutes of the December 12, 2002 meeting. Board commented there was one typo, but the otherwise the minutes were correct. • A motion to approve the minutes was made by M. Andrews and was seconded by F. Sperandeo. The motion carried. ITEM 3 : Receiving of Reports. A. Charles Wallace, Chairman. C. Wallace reflected on the events of the past two years and the coming together progress. He commented on the jet charter departing, saying it had brought the ball team in last night, and he rejoiced that Drake Field was the airport of choice for the ball team. B. Ray Boudreaux, Director. Reported the Airport's Budget had been passed by the City Council, he summarized the Annual Report (in Agenda packet), and thanked Kystle Dearing of the Morning News for the newspaper article. C. James Nicholson, Finance Coordinator. Commented on the departing charter, saying they had just taken on fuel. He reported December 2002 fuel sales were slow due to bad weather. The City' s FBO sold considerable more fuel during the year than the previous year. The wholesale price on fuel went up in December and several area airports followed suit. Commenting on the Financial Report in the agenda, the expenditures followed the projections closely, although there were some additional expenses in December. C. Wallace, drawing attention to the Debt Service line, confirmed the Airport's is zero. The money we are spending out of our reserves, is generating grant funding, and the money we are spending on Capital projects are projects that will generate revenues for the Airport. 1 • D. Construction Report, Wayne Jones. During the Airport's FAA Certification Inspection in the fall it was found there was some stripping to be re-done as part of the airfield project. The project inspection is scheduled for Monday. The sewer line in front of the hangar should be completed Monday or Tuesday and they should be able to pave next week provided the weather is warmer. The FBO slab is in place and considerable change will take place on the corporate ramp next month. The preliminary design for the eastside taxiway has been completed. Don Harris, with the FAA, is working on the funding, and proceeding in May is the goal. The Forest Service is working towards funding in February. Hopefully all will come together at the same time and we will be able to get more contractors involved so it will reduce the cost. W. Jones said ground work is, taking place for the Ozark Military Museum. R. Boudreaux said Wayne's engineering work had been `free gratis' for the Museum. R. Boudreaux reported on the re-skin project for two hangars, saying the correct siding is in and going Up. E. Maintenance Report, Ray Boudreaux. Sensors have been ordered for lights on Lancaster Drive, the sign on Delta has been fixed and the pilot's insurance will pay for the damage. Work has been taking place in the Air Museum. Staff replaced a compressor for the Air Museum. The fire protection was off for a week and is now up and working. The Beacon is being repaired. Sweeping has been completed around the hangars, and Ray reported that during the snow, he had plowed snow. • ITEM 4: Old Business. None. ITEM 5: New Business. A. FBO Rates. C. Wallace stated the Airport Board has been working in their Strategic Planning Meetings towards getting parity of rental rates and hope to have that plan achieved in another month or so. The FBO Hangar could be ready to occupy in March. R. Boudreaux reviewed the proposed rates for the FBO Hangar (see attachment to the minutes). A motion to approve the rates was made by Frank Sperandeo and seconded by Dave Bowman. The motion carried. B. New FBO Hours. R. Boudreaux reported the new hours are more closely related to the actual hours the FBO personnel are needed for fueling, and the new schedule should help reduce the number of overtime hours. The FBO will be open from 8:00 a.m. to 9:00 p.m. on weekdays and 8 :00 a.m. to 8 :00 p.m. on weekends. The crew will come in 30 minutes prior to opening time to do the daily checks on the trucks and fuel farm, and to get the office ready. Initially a call-out fee will not be charged to our tenants, we won't penalize the base customers because of our change in hours of operation. We will charge a call-out fee for transient traffic. • C. Election of Officers. C. Wallace explained the City Council Nominating Committee had deferred the appointment of new City committee members until a 2 • later date. Our Board has two members whose terms are ending: Frank Burggraf, who isn't eligible to re-apply because he has moved outside the City limits: Mike Andrews, who is completing someone else's term and he is eligible to apply for appointment to the Board. We would like to keep Frank Burggraf involved as the Board's Historian. C. Wallace said the Board needed to proceed with the election of officers for their two-year term and asked Vice Chairman McKinney to Chair the election. R. McKinney asked for nominations for Chairman. CharlesWallace was nominated for Chairman by Otto Loewer. Following no further nominations, a motion to cease nominations was made by D. Bowman and seconded by M. Andrews. The motion carried. The nomination of Charles Wallace for Chairman was seconded by F. Sperandeo. The motion carried. C. Wallace said it would be a pleasure to serve. Following questions why F. Burggraf could not apply, the following explanation was given. The Airport Board's Policies and Proceeds were revised several years ago and at that time Airport Board members living outside the city limits were grandfathered-in as • members and were allowed to finish their appointed membership terms. The grandfather clause covered Frank Burggraf and Frank Sperandeo. Mayor Dan Coody explained that the City ruling is that only individuals living within the city limits could be members of the City's Committees and Boards, even though there is a lot of talent outside the City, stating there is always annexation. Rick McKinney was nominated for Vice Chairman by Otto Loewer The nomination of Rick McKinney for Vice Chairman was seconded by Mike Andrews. The motion carried. C. Wallace opened the floor for nominations for Secretary. Dave Bowman was nominated for Secretary by Mike Andrews and the nomination was seconded by Otto Loewer. The motion carried. The following were elected as officers for the Airport Board: Chairman : Charles Wallace Vice Chairman : Rick McKinney • Secretary: Dave Bowman 3 ITEM 6: First Year Celebration. C. Wallace applauded Ray for the completion of one year on the job as Director of Aviation, and for the great job he is doing for the Airport. Board members and audience related stories and comments. Mayor Coody commented that nobody likes changes and he and Ray both came into unknown territory and had to learn fast. Mayor Coody expressed his appreciation to the Board for working with Ray, he expressed his appreciation to Ray, and offered his congratulations to Ray. A cake with one candle was presented to Ray from the Airport Board. R. Boudreaux explained that none of this (Airport accomplishments) was just his doing, that the Board and he had facilitated a lot of things by working together. He thanked the Board's 100% participation at meetings, he thanked the Mayor for his support, and he thanked the City Council for their support of the Airport's Budget, stating that with all this great things will come in 2003. ITEM 7: Other Business. A. Items from the Board. R. McKinney announced the committee members for Airfest 2003 : Judy Hammond, Ray Boudreaux, Frank Sperandeo, Charles Wallace, and Rick McKinney. A meeting time has been set. B. Item from the Public. Greg McCoy expressed his appreciation of Ray and of • Ray's support by including the school as an airport partner, his friendship, and business support. He said the Tech Center is starting to blend into to pilot community. On May 24`h the Tech Center, in conjunction with the Air Museum' s 16`h Year of Operation on May 23`d, are having a Fly In. He commenting on rumors the Tech was starting a Flight School and said they weren't there to step on Marie's (Aces High) or Pat's (Executive Aviation) toes, but the Tech Center has formed a marketing agreement with a company in Siloam Springs which will have aircraft rental available. Greg indicated .that frequently pilots earn their A & P licenses, and numerous A & P tech's become pilots as well. C. Wallace announced Wings Avionics would be hosting a Garmon GPS seminar on Saturday. ITEM 8 : Meeting Adjourned at 2 :30 a.m. • Dave Bowman, Secretary Date 4 • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS ' DAN COODY, MAYOR MEMORANDUM TO: Chairman Wallace Airport Board FROM: Ray M. Boudreaux DATE: November 19, 2002 - SUBJECT: New hangar rent policy - As we get closer to the completion of the new hangar building, we need to establish a rent policy and establish a rental rate. The best way to do that would be to consider the price of the development and factor the rent on the cost to amortize the cost of the project over a period of • time at a discount rate comparable with the market at the time of completion.--We camget 6%a money for 30 years so I have based our analysis on those numbers. The cost for the building can be estimated at $750,000 in round numbers. This would include engineering and a small amount-' for potential change orders that might come up. This is about the amount that.we will payin -._- airport funds for tile- entire project including the ramp and the building. Either way we figure it; $750,000 is the airport reserve fund investment and is an appropriate amount to amortize7.for the rent computations. The P & I payltient is $4,496.63 / month or $53,923.56 annually. Cost to finance the — - _ - building is then $2.8&per square foot per year. Using this as the basis, we would add $6000,00=' . . or $:32 per square foot for utilities- annually3o gets total-of$3:20.per-SF per yeas. - The following are be the basic monthly rates for various size.aircraft based oa the above estimates: C-205 and smaller 42 X 30 less 400SF = 860 SF X $3.20 =$2752 / 12 = $229.34 / month : . . - B-90 46 X 35 less 400SF = 1210Sf X $3.20 =$3872 / 12 = $322.67 / month 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 • F-20, B-350 60 X 50 less 400SF = 2600SF X $3.20 = $8320 / 12 = $693.34 / month G-5 94 X 97 less 800SF = 8318SF x $3.20 = $26617.60/12=$2218. 14 / month The following would be the overnight rate for the various aircraft: C-205 and smaller $229.34 / 30 = 7.64 X 3 = $22.92 + $5 handling = $27.92 B-90 $322.67 / 30 = 10.76 X 3 = $32.28 + $5 handling = $37.28 F-20, B-350 $693.34 / 30 = 23.11 X 3 .= $69.33 + $5 handling = $74.33 G-5 $2218. 14 / 30 = 73.94 X 3 = $221 .82 + $5 handling = $226.82 When establishing a price for storage, it is prudent to have a basis but to use the local markatcround the fees, The above computation is our basis, the following is our, recommendation based on all available information: " Type Monthly Storage Monthly Full Overnight Handling C-205 $225.00 $250.00 $25.00 $5 in/ $5 out _ B-90 $325.00 $350.00 $35.00 $5 in / $5 out F-207 B-350 $700.00 $750:00 $75.00 - - $ 10 in1$10 out G-5 $2200.00 $2400.00 $225.00 310 in/$ 10 out 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 r • • FAYETTEVILLE AIRPORT ADMINISTRATION OFFICE • THE CITY OF FAYETTEVILLE, ARKANSAS Z MONTHLY REPORT Director, Aviation and Economic Development Fayetteville, Arkansas January 2002 Great progress has been made on the new hangar and the ramp project. Crossland Construction Co. poured the hangar floor on January 2, 2003 . It required a total of 49 concrete trucks. By the end of January, all of the steel frame was up and they had started the roof and side panels. Tomlinson Asphalt was chlorinating the 1600 plus feet of water main and leak checking the sewer main on January 31 , 2003 . Our hangar and ramp pavement should be complete and ready for our use by mid- March. Flying Investments' new hangar will be complete at about the same time. We met with McClelland Engineering Consultants to discuss several items pertaining to the projects. We have had only one Change Order to the Hangar project and it was $6,628. 77. It was the cost to place additional fill on the building site due to elevations. Several other changes have been made without cost to the project. One such change was to move the restrooms from the north wall to the southeast comer of the building, behind the closure wall for the hangar doors for a better use of space. • There has been one change to the ramp project. The change was to replace a water main that had deteriorated, to increase the depth of the sewer main to accommodate future flow should a nearby pump station be closed, and to change the eventual destination of the sewer to a Greenland manhole. This Change Order exceeded the project contingency amount. We will however receive additional funding from the City water department to cover costs to replace their main. This will leave some contingency in the budget. We hope to hold final inspection of the re-skin projects the first week of February. All of the sheet metal has been installed. The buildings need to be tightened up and that is being done. On Martin Luther King's birthday holiday, I was honored to march in the Mayor's place to honor Dr. King. James marched as well. It was a great event and very well attended. The Ozark Military Museum continues to make good progress on their new hangar. Our maintenance staff is rerouting the fences that will allow us to reach our fuel farm and the museum visitors to be able to see the military artifacts. The Board is working hard to get their presentation to the City Council ready for the March 18, City Council meeting. This is the only presentation made to the Council in the year and will be a vehicle for the Board to tell the airport story. We have two board members with terms expiring. One is eligible for a second term, Mike Andrews. The other, Frank Burggraf must leave the Board since he • has moved out of town. The City Council nominating will meet on February 4, 2003 to nominate replacements. 4500 SOUTH SCHOOL AVENUE, SUITE F • AIRPORT TERMINAL BUILDING • FAYETTEVILLE, AR 72701 PHONE 501 -718-7640 Ext. 5 • FAX 50 1 -718-7646 • We spent January re-writing the Airport Certification Specifications and retyping it for approval by the FAA. Thanks to Louise for all the hard work. Many changes and corrections and updates to the information were made. Once approved by the FAA we will all receive a copy. As has been the case for the last several months, all T Hangars are full with a small waiting list. We are anxious to get the new hangar building on line. We look forward to our next Strategic Planning session to begin discussions on which project to start for the next year. In order to get into the schedule for Council approvals and for the State grant process, we need to get started right away. We held final inspection of the Pavement Rehabilitation and Taxiway Widening Project and found very few punch list discrepancies. The prime contractor, APAC-McClinton Anchor, will clean up the punch list in February so we can close out the project. I visited the Foreign Trade Zone at the Port of Catoosa in Oklahoma with the Economic Development Committee of the Chamber of Commerce. We will visit the FTZ in Little Rock in February. A FTZ on our airport might be what we need to attract commerce from off shore. We are in the information gathering mode. The City Administration reorganized the Departments of the City under a Chief Administrative Officer. There was no change for the airport. The Aviation and Economic Development Director works directly for the Mayor. We held initial meetings for the air show, AirFest2003 . We have locked in Bobby Younkin and • Swift Magic. Judy Hammond, AAM Director, has locked in a Pitts act and we are waiting on a Comedy Cub or the Jet Pickup Truck. More to follow as we get closer to the show. We have adjusted the FBO hours to more efficiently use our available manpower. We now open 2 hours later and close 2 hours later on the weekends. This change is more in line with our customers needs. We initiated a new advertising campaign trying to reach the national aviation market. "Aviation Market' is anew magazine with 30,000 aviation professionals in their circulation pattern. A copy of the ad is attached. It will run in three consecutive issues. We are soliciting proposals for review for the next engineering contract. The current contract is in holdover status with McClelland Engineering. We hope to evaluate proposals in February. The maintenance team, in addition to fence work has been working on several projects of interest. We replaced the friction drive on the T Hangar gate with a chain drive. We should "never" have gate failure due to frost in the future. Respectfully Submitted, • RayM. Boudreaux Director ,ate Fsy.� ttt�.-_ � � .� IemLant �a7:it£,4!lE A9nklr4 . MU [Y t(:1.1PAL AIIiPOlfi7' i,4tn{ fact�ii n.SJ:tr. A3i C07114'J91" IUx rky'6.5 d'y : 'A' ui ' A ��j : 8eq�,t,�._ IlaaaYuT}pr lUr fia�: • lP `U Sentm 1'�Il . , tadn6 Gamrcn\Oi:,�% PA9 CHIS 1Qd99b. , +�'C �. .�a4 chit matuty .fro, W9 • Compddve Fuel Prkw. `•a9°"°tea hit twan M. nr : lj n1e Diva adt 6ala:riarot a • Modern S omi FadBty „ " VIII Cadx1: A161I7 • ��l1Mf� U^6dli tte.'.73.r //{1tl Servloe a 6S: Mmpo 171 `# UH1 Drake Ta . >119 wy Afineerke�+e fl�aa, .stxx{�i {� tN Sano: 4;96013M • 61IaraDteed� d��. SaN��il�� Ten Nauru !on n A m 1 • : '+x.. fiez myu fia s Omet ut514C.iY; 'b lte fiatlt (aUera:AHAlcut r.� 9100A'S 6AMP11"i 6mm. e " al3nkggeeKr,-We, ': tT E� lO pnodor F iE't"1EYILLF AlitigIPA IiRPOIC ' (FYI') M, ARMs !W; IC4'N: LL `. lid,*:.'bSdv lrevx Drake Field Fa;�ette�ill . Arkansa>q Ser�iee Desk: 4• s-718-7641ir'-,.4 6a/.r: Cbrhx(aro: muars ra.l: ta0!, .'S•peva iF x•: '79.7176116 Arkansas w ww Ac ce�ts7mi ette,i11P.org 1'N[ NATURAL STAT[ • , FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN GOODY, MAYOR • 4500 School Ave., Suite F Fayetteville, AR 72701 479.718.7842 AVIATION AND ECONOMIC DEVELOPMENT RAY M. BOUDREAUX, DIRECTOR TO: Airport Advisory Board M bers THRU : Ray M . Boudreaux, Direc Z r FROM : James Nicholson , Financial oordina r� DATE : February 13, 2003 SUBJECT: FBO Report Tower Operations Graph: Below is a graph which depicts monthly aircraft operations as counted by the Fayetteville Municipal Airport ATC Tower. This graph compares monthly totals of aircraft operations for the past two years. ATC Tower Operations Count soon .500 o soon a 3 0 00000M 0 2W `0 2000 a 15002001/02 • o 15 000 z 2002/03 B Jan Feb March Aed May June July Au0 Sept OV Nov Dec Jan Month FBO Fuel Sales: As can be seen in the graph below, fuel sales volume for the month of January increased 45.8% over the previous month's sales. The January sales level is approximately 123% of the FBO's monthly average volume of 25,562 gallons. Fuel Sales Comparison 45000 40000 35000 c 30000 — N 25000 0 20000 15000 zpBtAam7em 10000 - "w11001 5000Gly Assam FBO �S , F� 0 ' Jan FW March April May Jure July Aug Sept On Nov Dec Jan Month • • Local Area Data: Retail fuel prices have increased substantially in January. Wholesale prices spiked in recent weeks resulting in retail price increases of .05 to . 16 in Avgas retail prices locally. Retail Jet Fuel price has also increased as much as . 19 in the last two weeks. Following is a comparison of regional retail fuel prices as of 2/12/03 : Regional Jet Center (XNA) Avgas: 3.05 Jet-A: 2. 79 Springdale Air 2 . 74 2 .30 Drake FBO (ASG ) 2.38 (Ss-2. 18) 2.30 Beaver Lake (Rogers) 2.67 2.38 Hughes Aviation (Bentonville) 2 .70 (SS-2.35) 2. 50 Siloam Springs (City-run ) 2 .35 (ss-1 .99) 2 . 15 Fayetteville Municipal 2 .30 2 .20 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 January 1 st, 2003 . Wholesale Fuel Price Trend 25.0% m 20.0% % Chg Jet Chg Av • _ 15.0% � 10.0% c 5.0% d U y` 0.0% . a -5.0% 1 -Jan 8-Jan 15-Jan 22-Jan 29-Jan 5-Feb 12-Feb Week 2003 FYV Facts: Average monthly fuel sales: 25,562 gals January 2003 fuel sales: 27,960 Jet - 88.7% 3,562 Avgas - 11 .3% 31 , 522 Total Jet-A sold to FYV-based customers in January: 14,353 - 51 .3% Jet-A sold to transient aircraft customers in January: 13,607 - 48.7% Avgas sold to FYV- based customers in January: 11494 - 41 .9% Avgas sold to transient aircraft customers in January' : 2 ,068 - 58. 1 % • City of Fayetteville Arkansas Airport - Drake Field Operating Statement - Airport Board For the Month Ending: 31 -Jan-03 2002 2003 2003 2003 Actual Budgeted . Actual YTD Prjctd Yr End Operating Revenue Rents & Leases 287,035 3369350 41 ,892 315,739 Aviation Fuel 499,471 19100,000 339976 751 ,286 Miscellaneous 16,461 35,000 445 102760 Total Operating Revenue: 802,967 1 ,471 ,350 76,313 110779785 Operating Expenses Personnel 312,807 361 ,612 31 ,284 375,413 Materials & Supplies 12,464 44,590 5,545 13,799 Aviation Fuel Purchases 320,641 630,000 38,677 4642128 Services & Charges 179,982 266,392 11 ,602 181 ,724 Cost Allocation to General Fund 1449612 144,612 12,051 144,612 Maintenance 489874 55,610 39875 46,500 Operating Capital / Equipment 25,206 - - 41999 ATC Tower Costs 192,500 - 192,500 Total Operating Expense 1 ,044,586 1 ,695,316 103,034 1 ,423,675 • Change In Fund Balance (241 ,619) (223,966) (26,721 ) (345,890) from Operations • • City of Fayetteville Arkansas Page 2 Airport - Drake Field Airport Fund Statement - Airport Board For the Month Ending: 1 /31 /2003 Beginning Funds Available - 01 /01 /2003 2,474,359 Airport Fund Revenue YTD Projected YE Interest on Investments 69,000 Non-Op Miscellaneous 35 420 Total Fund Revenue 35 69,420 Airport Fund Expense 2003 Capital Project Expense / Grant Matching YTD Projected @ Completion AIP #29 - Pavement Rehab 47,099 AIP #30 - Taxiway A Extension Design 4,655 AIP #31 - Taxiway A Ext. Construction 71 ,500 Hangar Rehabilitation 24,500 35,634 Corp Ramp Pavement 133,368 191 ,836 FBO Hangar 493335 415,225 Executive Hangar 3@ 60x60 225,000 East-side Self-serve 100LL 20,000 10 Bay T-Hangar 3502000 • Total of Project Expense - Airport Fund 207,202 113600949 Income Less Expense (2079167) (1 ,291 ,529) Change In Fund Balance from Operations (26,721 ) (345,890) Ending Funds Available 1 /31/2003 2,2403470 836,940 Debt Service Expense: $0 $0 Outside Grant Funds Contributed YTD Projected YE State Federal Total: • e w • FAYETTEVILLE THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR MEMORANDUM TO: AIRPORT BO FROM: Ray M. Bou eaux DATE: February 12, 2003 SUBJECT: 2003 CAPITAL PROGRAM RECOMMENDATION During the budget process for the 2003 budget, we identified several projects for our Capital - Program apital -Program in 2003. Those projects include: - . Project. Total Cost Airport Share • Small Corporate (3 ea) $4502000 $225,000 Taxiway A Extension Phase 1 1 ,4301000 719500 10 Bay T Hangar 3503000 350,000 East Ramp Self Serve Fuel 20,000 209000 Total $2,250,000 $666,500 -flaw is the-time to make decisions on which project or projects we proceed-with this year. I'm sure by now you have heard of all of the-activity we are generating around the new hangar. While it is not full, there are three large aircraft that have reserved spaces. I know of a few of our tenants that will want to move into the new hangar. We are still full in the T Hangar area. A new T Hangar is most likely the last priority, although whenever we have a vacancy we immediately fill it up. I anticipate that with the new FBO hangar, we will create vacancies by people moving into the new full service hangar. The small corporate hangars may also create vacancies. The small corporate hangars are intended to be 60 X 60 and capable of housing a King Air 350. They could also hold 4 smaller aircraft or an aviation related business like a Fabrication shop or an upholstery shop. Currently, we have requests for two corporate hangars. Aviation and Economic Development Department . 4500 South Schooy Suite F Fayetteville, Arkansas 72701 • (479) 719-7642 Ray M. Boudreaux, Director rboudreaux@ci.fayettevine.ar.us • We have future plans to build another large hangar on the south side of the executive ramp across from the FBO Hangar. The new 20,000SF hangar would be divided in the middle with a fire wall so that each half of the building could be leased by different tenants. We could build the three small corporate hangars and substitute a 100 X 200 for the new T Hangar. I will present a ground lease at the Board -meeting for approval by Flying Investments to lease the area formerly leased by Don Nelms west of the current Flying Investments Hangar. Flying Investments plans an expansion this year. They will still need two spaces in our hangar. The U of A recently acquired two aircraft to replace their Turbo Commander. They will operate a King Air 200 and a Beech Jet 400. Their hangar will only hold one aircraft. I am working with a company that wants to open a full service maintenance shop that has a large following in the region. They need a building at least as large as Wings. Wings needs more space and is considering building their own building on the southwest side of the executive ramp, but they – . . plan to keep their current building. There is the possibility that a small cargo operation will _,- locate to FYV. They don't require hangar space but when the weather is bad, they all require hangar space. They will require some office space. The scheduled charter proposal is still possible and in the mix. There have been several flight training inquiries that are considering applications to work at Fayetteville Drake. We await applications before presenting to the board for consideration. As we expected, the more activity here—the more activity comes here. I am excited and hopeful that it continues to require us to • think big and bigger! We have made some major decisions on the future of this airport in the past. I am not nearly as certain of our needs as I was in. the past. I am concerned that we don't overshoot the mark and invest what little money we have on fruitless pursuits. We need to choose this year's project _ . carefully and thoughtfully. I don't want to wait and see because it will put us into next year and we loose momentum which is so critical when trying to convert our airport to the premiere general aviation facility in the region. The conservative course of action is to build the small corporate hangars ASAP and wait on the larger hangar and the T Hangar project. The limiting factor here is that the small corporate hangars will only accommodate up to a King Air 350. Anything larger will need the large hangar. Fortunately, we have that larger hangar. Recommendation: Proceed with the small corporate hangar project. Make application to the State for a matching grant for the project. Develop a timeline that completes the construction before snowfall this fall. Consider three or four hangars with common firewalls, 60 X 60 with 18 feet clear door opening using high fold or other type of vertical opening door and remain within Aviation and Economic Development Department 4500 South School, Suite F Fayetteville, Arkansas 72701 • (479) 718-7642 Ray M. Boudreaux, Director rboudreaux&i.fayetteville.anus • the budget of $450,000 for the project. The hangars would be heated with a unisex restroom. Each hangar will be individually metered for utilities. Timeline: To build the building this season, the following must be accomplished: Preliminary cost estimate for task order February 14, 2003 Submit Staff Review and Memo on Project: February 28, 2003 Submit Grant application letter to State March 1 , 2003 Project Scope and rendering complete: March 11 , 2003 Grant presentation for State Aeronautics: March 12, 2003 Preliminary Design Complete: April 15, 2003 Design Review meeting April 16, 2003 Final Design Complete April 28, 2003 - - Advertise for bids April 30, 2003 Submit agenda request and staff review May 16, 2003 Receive bids May 21 , 2003 Agenda Session City Council May 27, 2003 Award Project by City Council June 3, 2003 Pre-Construction meeting June 9, 2003 - - Construction complete ---November 10, 2003 — Aviation and Economic Development Department 4500 South School, Suite F - Fayetteville, Arkansas 72701 • (479) 718-7642 Ray M. Boudreaux, Director rboudreaux@ci.fayettevillc.ar.us AVIATION MAINTENANCE PROFESSIONALS Lease Terms: * Lease is to establish an aircraft maintenance shop on the airport. * Lease begins March 1 , 2003, with rent beginning on May I ". * Lease is for one year with five one-year renewal options. * The lease will be automatically renewed every year. * Every two years there will be an automatic rental adjustment according to the CPI rate, plus one percent ( I %). * Monthly rental will be $820.00. • * They will be responsible for the insurance required by the Airport's Minimum Standards and abide by all other requirements of the Minimum Standards. * They shall provide for, and supply at its expense, all janitor service, and shall pay for all utilities, including, but not limited to heat, light, gas, electricity, and water, sewer and trash removal. • • FLYING INVESTMENTS Terms of Lease Agreement: * Shall have six (6) months from April 1 , 2003 to begin construction of the hangar. * Lease can be canceled, by either party, by giving the other party thirty (30) days written notice of termination during the first six (6) months following April 1 , 2003 . * Failure to begin construction before October 1 , 2003 will be an automatic cancellation of this ground lease. * Lease term will be for thirty years, beginning on the first day of the next month following the date the Occupancy Permit is granted. * Option to extend: May extend lease for one ( 1 ) period of twenty (20) years if Flying Investments has met and satisfied all conditions (extensions beyond fifty (50) years must be re-negotiated and approved by the City Council). • * Rental fees: Flying Investments has agreed to pay an annual ground rental fee of five cents ($.05) per square foot of total lease ground space. Leased ground space is 15,600 sq. ft. Annual rental due is Seven Hundred and Eighty Dollars ($780.00). * Flying Investments shall be responsible for the payment of the utilities associated with any, but not limited to, electric, gas, heating, water/sewer and trash removal. • TACO PLACE, INC dba WALLACE SMOKESHACK AND CATERING Lease Terms: * Lease is for a six month trial. Rent will begin on April 1 , 2003 . Possession will be immediate upon approval of the lease. * Rent will be $2,500.00 per month, or five percent (5%) of gross sales, whichever is less. * Rent will be re-negotiated at the end of the six month period. * Tenant is responsible for all required permits and Health Department Inspections. * The tenant will be responsible for all insurance requirements. • * The City will be responsible for all building utilities and equipment belonging to the City, and the tenant will be responsible for providing and the maintenance of their own equipment.