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HomeMy WebLinkAbout2003-03-13 Minutes• • MINUTES OF AIRPORT BOARD MEETING March 13, 2003 - MEMBERS PRESENT: Charles Wallace, Rick McKinney, Frank Sperandeo, Dave Bowman, Otto Lower, Bill Nickle MEMBERS ABSENT: Mike Andrews STAFF PRESENT: Ray Boudreaux, James Nickolson, Louise Powers OTHERS PRESENT: Frank Burggraf-former Airport Board Member, David Holtman - Flying Investments, Amy Wolfe -Fayetteville Government Channel, Robert Dean -AMP Services, Mike Kratchmer-AATC, Wayne Jones -McClelland Consulting Engineers, Judy Hammond -Ark. Air Museum, Terry Collier -tenant, Christina Crouse -Hair Salon ITEM #1: Welcome, Chairman Charles Wallace. Welcomed those attending the meeting, in person or by television, and expressed his appreciation of the businesses from the airfield in attendance. He explained one Board member, Mike Andrews, was on vacation. ITEM #2: Minutes of the February 13, 2003 meeting. A motion to approve the minutes was made by Frank Sperandeo and seconded by Dave Bowman. The motion carried. ITEM #3: Receiving of Reports. A. Charles Wallace, Chairman. Announced he was pleased and proud of the Airport Board's presentation at the City Council Meeting. Comments he had received was that the presentation was well received. He expressed his thanks to Frank Burggraf for the written report and thanked James for the slide/powerpoint presentation. He welcomed the new Airport Board Member, Bob Nickle. B. Ray Boudreaux, Director. 1) Monthly Report. Reported the Ribbon Cutting Ceremony for the FBO hangar has been delayed and hope to have it next month with the Airport Board Meeting. We plan to have music, James and his band, and McClelland Engineers have agreed to provide some eats. We have a punch list for the hangar re -skin project and their people are taking care of the items today. The State Aeronautics will be glad to have the project finished. Steel is up on the Ozark Military Museum. The large plane owned by the A & P School has been removed in preparation for something new, and will let the school tell about that later. Said he gave tours of the airfield to our new Board member, and a new City Council member. The new restaurant m the terminal has opened and believedthis will increase business around the airport. They have plans to add breakfast to their menu. Our new aircraft maintenance shop, Aircraft Maintenance Professionals, is seeing a lot of business. Jim Bell has completed the first set of inspections and 1 • • • repairs on the T -Hangar doors The office has taken delivery of a "Mule" which is an all terrain maintenance vehicle. The office had budgeted $7,000 00 for a small pickup and by getting the Mule we have saved $2,000.00. The City's Selection Committee choose McClelland Consulting Engineers from four companies that submitted documents to the Request for Qualifications. The contract is being developed under the new format required by the City Attomey. 2) Air Show. Spoke briefly on the Airshow and explained that Judy Hammond has worked very hard on the event. J. Hammond reported that military support is still in the process and a lot will depend on our world situation, and that she had talked with the recruiting office trying to get a military band. A media day is planned one month in advance of the show, and Bobby Younkin will fly. C. James Nicholson, Finance Coordinator. Spoke briefly summarizing the charts in the reports, commenting the report was conservative as the taxiway servicing the Forest Service has not been funded by the FAA. R. Boudreaux reported that while attending the FAA Conference, a meeting had been scheduled here for next week with the Forest Service engineer,. FAA Project Manager, and Airport staff. J. Nicholson commented on the Capital Improvement Projects list for 2003 in the report, saying not all of the projects have been approved, but if the airport does perform all the projects listed, then the Projected Year End Reserve Fund will be $570,651. C. Wallace said the Board's recommendation has been not to go below one million, and some adjustments probably need to be made in some projects and not do some projects. R. Boudreaux said the T - hangar are listed for 2003, but haven't been approved to begin. The self -serve fuel farm and the three corporate hangars are on the list, they were projects recommended by the Airport Board, and both were approved at the last City Council Meeting. J. Nicholson stated the wholesale fuel prices have been increasing dramatically and some airports are making fuel price changes. We have remained the same price for the last two months. He commented on the chart showing the attendance at the Air Museum for the last three years with peak attendance during the Airfest in June each year. D. Louise Powers, T -Hangar Report. Reported there were two T -Hangar cancellations during the month and each had been rented within a few days. A small waiting list does exist, but most of those on the list aren't ready to rent and want to wait until later. E. Construction Report, Wayne Jones. Thanked the Selection Committee for selecting McClelland Engineers for another three years as the Airport's engineers. He reported the contractor has submitted the Final Payment Estimates on the Pavement Rehab Project. The warranty items will be taken care of now that we have wanner weather. Speaking of the corporate ramp project, there are some under -drains to be done. The City conducted a test on one area and reported there was not a leak in the force sewer main. The contractors are ready to put in the sidewalks for the roadway north of the new hangars. The pump for the pump station will be delivered today or Monday. We are working to get the electric installed. We are waiting on the Gas Company to set a meter. Both hangars should be completed about the same time, around the first of April. Commenting on the Forest Service, Ray and he got a fairly firm commitment from the FAA ADO District Manager (at the FAA Conference) that funding would be forthcoming for the taxiway. Funds should be available about June 1s`. Hopefully the Forest Service funding will be available about the same time. The Task Order was approved at the last City Council Meeting for the preliminary design work on the corporate hangars. The new • • • engineering contract won't have specific projects listed, the projects will be done by Task Orders. F. Maintenance Report, Ray Boudreaux, Director. Maintenance staff had given him a very long List of projects completed. Wiring was completed to install two wall mounted TV's in the FBO/Lobby areas. Staff worked on drains in the restaurant area that had not been used since the previous deli was in business. Trash on the land and air side was picked up. During all this two of the maintenance staff were out three days with illnesses. ITEM # 4: Old Business. None. ITEM#5: New Business. . A. Pricing Policy for Aircraft Fuel. C. Wallace reported staff has been working on a complex process of fuel pricing. Ray and staff will present a formula that does not set a specific price. R. Boudreaux commented that there are several things that are involved in the fuel pricing: FET taxes and charges, cost of sales, equipment/leasing, point of sales leased machine, personnel, insurance -Hangars Keepers, advertising in publications, then decide on the amount of markup. The formula works as the price of fuel goes up, the selling price goes up, and the same if the price goes down. (Note: A copy of the Fuel Pricing Policy is attached as part of the minutes -Memo dated 3-12-03). A motion to approve the formula, shown in the agenda, for establishing the FBO selling price of Jet -A and AV -fuel was made by Rick McKinney and seconded by Dave Bowman. The motion carried. ITEM #6: Other Business. A. Items from the Board. D. Bowman reported on the dinner held at the Air Museum and thanked Judy Hammond for her help. Fifty aviation -minded people were in attendance. R. Boudreaux mentioned the news article in the agenda packet and he reported the airport had been mentioned in the Appropriations Bill, "...directs priority will be given to applications involving the further development of the following airports Drake Field Airport in Fayetteville for assistance in changing from a regional airport to a general airport...". R. Boudreaux answering F. Sperandeo, explained an ELT emergency transmitter had gone off on the field today, staff has the equipment to locate the ELT. The transmitter was turned off shortly after it went off, it was not an emergency. B. Items from the Public. M. Kratchmer reported the big airplane was gone and it had been almost as much fun to watch them cut it up as it was to watch the plane arrive. The good news is FedEx has donated a 727 to the school that is fully operational. They will deliver it to the school on March 21n with all the manuals, and extra engine, and extra GPU. We will disable the igniter, the plane will not be able to fly. We will have a ceremony for the arrival. The plane will be towable, so it can be moved around. The FedEx logo will come off and it will be painted in the school's colors. D. Bowman reported that Greg McCoy, the former director of the NW Arkansas Tech Center, was offered and had accepted a. job, to start an airframe and power plant school. The new school would buy their curriculum from the Tech Center to start their school. NW • Arkansas is leading the way. Now with the federal funding available the Tech Center will get more students. M. Kratachmer confirmed he is working as the Interium Director for the school and he had been Wichita several times in the last month and it had been refreshing to hear Fayetteville (airport) mentioned. J. Nicholson responding to T. Collier, said Drake Aviation which operates at the Springdale Airport, is now selling fuel and that could be part of the decrease in 100 low lead fuel sales. R. Boudreaux said the 60 ft. x 60 ft. hangar will hold four or five aircraft so we may not build the T -Hangar this year. Taxiway Bravo Extension will be constructed in three phases, as FAA funding is available. W. Jones commented that the FAA wants to fund potential runway incursion projects. F. Sperandeo asked W. Jones to have a layout of the proposed taxiway projects at the next Board Meeting. Meeting was adjourned at 2:40 p.m. ve Bowmen, Secretary Date • • • • FAYETTEVILLE • • THE CITY OF FAYETTEVILLE, ARKANSAS DAN COODY, MAYOR TO: FROM: DATE: SUBJECT: MEMORANDUM Chairman Charles Wallace Airport Board Members Ray M. Boudreaux March 12, 2003 Fuel Pricing Policy • Due to the drastic changes being experienced in the delivered price of fuel, it is imperative we decide on a procedure for the setting of retail prices. I recommend that we decide on a markup over the cost of sales or overhead. I will use 29,992 gallons per month average sales to determine the cost of sales. This is the average monthly sales for the first two months of 2003. Cost of Sales: Truck Lease: POS Personnel Insurance Advertising Jet A .0367 .0013 .2907 .0292 .0203 Av Gas .2065 .0013 .2907 .0292 .0203 Total Cost of Sales: .3782 Aviation and Economic Development Department 4500 South School, Suite F Fayetteville, Arkansas 72701 (479) 718-7642 Ray M. Boudreaux, Director rboudreaux@cilayetteville.ar.us .548 The delivered cost of fuel has been increasing steadily. We will use the cost of fuel for the last deliveries in 2003. We have purchased 8 loads of Jet and 1 load of AvGas. Delivered cost of fuel Wholesale 1.251 1.5446 FET .219 .194 Environmental fee .002 .002 Total Delivered Cost of Fuel 1.472 1.7406 Total cost of Fuel 1.8502 2.2886 Margin .30 .06 -.-Total Retail price 2.1502 2.3489 Sales Tax .1612 .1799 Total Cash Price to customer RECOMMENDATION: 2.31 2.53 Due to the volatility of the cost of aviation fuel, it is imperative that we establish a pricing policy that allows us to maintain a margin that produces the revenue required to operate and maintain the airport. We have two revenue streams, rent and sales. Recommend that we use the following formula to establish the retail price of fuel. Jet A: Cost of fuel + Cost of Sales + .30 + Sales Tax = Total Retail Cash Price* Av Gas: Cost of Fuel + Cost of Sales + .06 + Sales Tax = Total Retail Cash Price* *Credit Card fee = 2.5% Aviation and Economic Development Department 4500 South School, Suite F Fayetteville, Arkansas 72701 (479) 718-7642 Ray M. Boudreaux, Director rboudreaux@cilayetteville.ar.us